Housing groups urge limiting Prop 123 cuts as committee advances transfer bill
April 07, 2026 | 2026 Legislature CO, Colorado
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House Bill 13‑60, presented to the House Appropriations Committee, would direct the state treasurer to transfer $130 million from the Affordable Housing Financing Fund to the general fund and make related changes to the financing structure and allowable uses.
Kevin Baumer, executive director of the Colorado Municipal League, said Prop 123 money was voter‑approved and warned that repeated sweeps of those funds undermined local governments' ability to address housing needs. "If you're going to remove the ability for local governments to create more affordable housing, then all of those [preemptions and mandates] should be rescinded," he told the committee.
Multiple housing developers and nonprofits testified in an amend position, asking the committee to remove an additional $20 million cut that had been added on top of an earlier $110 million transfer and to prioritize remaining funds for the lowest income households. Kinsey Hasted of Enterprise Community Partners asked that remaining Prop 123 funds be targeted to very low‑income Coloradans to leverage federal financing; Urban Land Conservancy
nd the Colorado Coalition for the Homeless urged similar prioritization.
Witnesses emphasized that Prop 123 funds often serve as flexible gap financing that attracts private and federal resources for affordable rental development; speakers cited local projects that rely on the funding and warned of job and project losses if dollars are swept to the general fund.
Representative Taggart moved the bill to the Committee of the Whole with a favorable recommendation; the committee approved HB 13‑60 on a roll call vote, 8 to 3.
Next steps: The bill will be considered by the Committee of the Whole. Witnesses asked the committee to consider amendments to limit additional Prop 123 cuts and to require public stakeholder input on allocations of remaining funds.
Sources: Sponsor description and public testimony from coalition representatives and housing providers.
Kevin Baumer, executive director of the Colorado Municipal League, said Prop 123 money was voter‑approved and warned that repeated sweeps of those funds undermined local governments' ability to address housing needs. "If you're going to remove the ability for local governments to create more affordable housing, then all of those [preemptions and mandates] should be rescinded," he told the committee.
Multiple housing developers and nonprofits testified in an amend position, asking the committee to remove an additional $20 million cut that had been added on top of an earlier $110 million transfer and to prioritize remaining funds for the lowest income households. Kinsey Hasted of Enterprise Community Partners asked that remaining Prop 123 funds be targeted to very low‑income Coloradans to leverage federal financing; Urban Land Conservancy
nd the Colorado Coalition for the Homeless urged similar prioritization.
Witnesses emphasized that Prop 123 funds often serve as flexible gap financing that attracts private and federal resources for affordable rental development; speakers cited local projects that rely on the funding and warned of job and project losses if dollars are swept to the general fund.
Representative Taggart moved the bill to the Committee of the Whole with a favorable recommendation; the committee approved HB 13‑60 on a roll call vote, 8 to 3.
Next steps: The bill will be considered by the Committee of the Whole. Witnesses asked the committee to consider amendments to limit additional Prop 123 cuts and to require public stakeholder input on allocations of remaining funds.
Sources: Sponsor description and public testimony from coalition representatives and housing providers.
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