Cities warn as Senate committee approves $130 million transfer from affordable housing fund

The Senate Appropriations Committee approved HB13‑60, a proposal that transfers $130 million from the Affordable Housing Financing Fund to the general fund as part of the committee’s wider package of budget adjustments.

Kevin Balmer, executive director of the Colorado Municipal League, told senators that many municipalities had opted into Proposition 1‑23 and used the debruced funds for local housing projects, and that removing those funds risks undermining local efforts and creating legal exposure. “If this path continues, CML calls on the next governor and general assembly to start rolling back mandates and preemptions,” Balmer said.

Erin Meschke, a Boulder resident who testified on multiple bills, said the transfer signals a lower legislative priority for affordable housing than voters expected and asked senators to vote no on HB13‑60.

Sponsor remarks said the portion that goes to the Department of Local Affairs was held harmless and that transfers were calibrated so that funds intended for local government programs remain available; sponsor and staff said the remaining balance in the fund would be adequate and that voters had approved contingency language permitting transfers under certain fiscal circumstances.

Committee members pressed staff for account balances and revenue projections; staff provided a 25‑26 beginning balance estimate and a revenue projection. The bill passed the committee 5–2 and will proceed to the Senate floor.