Committee backs temporary property-tax exemption for nonprofit affordable rental developers

The House Finance Committee unanimously adopted sponsor amendments and approved HB 10-66 to extend a predevelopment property tax exemption to nonprofit affordable rental developers.

Sponsors said the bill simply aligns state tax policy so nonprofit developers that land‑bank property for affordable rental projects are not penalized by commercial vacant‑land tax rates while they assemble complex capital stacks and clear regulatory hurdles. They described predevelopment as a fragile phase often lasting one to five years during which nonprofits incur carrying costs—property taxes, insurance, entitlement and remediation expenses—before financing and construction close.

Witnesses from Enterprise Community Partners, the Urban Land Conservancy, Archway Communities and Housing Colorado described the financial strain on mission-driven nonprofit developers and said the exemption will save tens or hundreds of thousands of dollars per project, stretch limited public subsidy, and enable more deeply affordable units to be built. Housing Colorado worked with sponsors on a small change requiring nonprofit housing providers to demonstrate at least five years of mission-driven housing work; the sponsors adopted that amendment (L003) during the hearing.

Opposition and skepticism were limited but included a student economist who criticized the bill’s targeting and argued that regulatory reform might be a more efficient response. Sponsors said the bill includes clawbacks—back taxes owed if the property is not ultimately developed for affordable housing—and a 10‑year temporary cap on the exemption to ensure accountability.

After adopting clarifying amendments (including the 5‑year mission-history requirement), the committee voted to send HB 10-66 to Appropriations with a favorable recommendation (committee audio and record indicate the bill passed committee). Supporters said the change levels the playing field between ownership and rental affordable housing developers and reduces an arbitrary cost barrier to nonprofit risk‑taking.

What happens next: HB 10-66 proceeds to Appropriations for fiscal consideration and will require local implementation details and oversight language if enacted.