Colorado Law Expands Mortgage Options for First Responders

Colorado is hoping to help firefighters and other first responders achieve homeownership with a new law to expand their eligibility for mortgages.

Under Senate Bill 26-053, which Gov. Jared Polis signed Friday, police officers, firefighters, and emergency medical technicians have expanded eligibility for mortgage loans through the Colorado Housing and Finance Authority. It's one of several bills in recent months aimed at improving housing affordability in the state.

"Expanding mortgage and financing options for Colorado first responders is important to attract a strong first responder workforce to our state and take care of the Coloradans that dedicate their careers to protecting and serving our communities," Polis said in a statement.

The Realtor.com® state-by-state housing affordability report card graded Colorado a C. The state ranked in the middle of the pack for affordability, with a median home price of $599,104.

The Centennial State estimated last fall it needs 106,000 new units to keep up with demand. That's down from the 140,000 units it said it needed in 2019, thanks to slower population growth and increased homebuilding. But it says it needs to build 34,1000 new homes a year to keep the deficit from increasing.

Provisions of the new law

The new law broadens eligibility for CHFA mortgages to first responders, including peace officers, firefighters, and emergency medical technicians.

SB26-053 adds an income cap for families made eligible by the bill, set at 110% of the CHFA cap used for other programs.

Bill sponsor state Sen. Kyle Mullica said the law helps these first responders afford homes near work. The state expects the loans will use existing revenue and financing sources, and so not impact state budgets.

"We can help ensure that the folks who protect our communities can actually afford to live in the communities where they serve," said Mullica, a Democrat. The bill takes effect in 90 days.

Colorado also signed a few bills aimed at home construction this session. Senate Bill 26-001, approved last month, lets localities use funds for housing authorities and workforce housing.