Section 24-32-134 - Disaster resilience rebuilding program - fund - creation - policies - report - definitions(1) As used in this section, unless the context otherwise requires: (a) "Administrator" means an entity or entities that the division contracts with pursuant to subsection (2)(b) of this section to administer the program.(b) "Declared disaster" means a disaster emergency declared by the governor pursuant to section 24-33.5-704 (4) in or after 2018 that resulted in widespread or severe damage or loss of property or infrastructure as determined pursuant to policies adopted by the division pursuant to subsection (4) of this section.(c) "Eligible applicant" means: (I) A person who owns or rents a home that is the person's primary residence, including an apartment or a modular, manufactured, or mobile home, that was affected by a declared disaster and meets eligibility criteria established by policies adopted pursuant to subsection (5) of this section;(II) A person who owns rental housing, including a modular, manufactured, or mobile home, that was affected by a declared disaster and meets eligibility criteria established by policies adopted pursuant to subsection (4) of this section;(III) A business that owns real or personal property that was affected by a declared disaster or experienced an interruption or loss of business due to a declared disaster and meets eligibility criteria established by policies adopted pursuant to subsection (4) of this section;(IV) A housing authority created pursuant to part 2 or part 5 of article 4 of title 29 or a low-income housing tax credit partnership that serves an area affected by a declared disaster;(V) A Colorado nonprofit corporation that provides construction assistance to low-income households and meets eligibility criteria established by policies adopted pursuant to subsection (4) of this section; or(VI) A governmental entity with jurisdiction in an area affected by a declared disaster.(d) "Fund" means the disaster resilience rebuilding program fund created in subsection (7) of this section.(e) "Governmental entity" means any authority, county, municipality, city and county, district, or other political subdivision of the state; any tribal government with jurisdiction in Colorado; and any institution, department, agency, or authority of any of the foregoing.(f) "Program" means the disaster resilience rebuilding program created in subsection (2) of this section.(2)(a) The division shall establish the disaster resilience rebuilding program as a loan and grant program in accordance with the requirements of this section and the policies established by the division. The program may provide loans and grants from the fund to eligible applicants seeking assistance as they rebuild their community after a declared disaster.(b) The division may contract with or provide a grant to a governmental entity, housing authority, Colorado-based nonprofit organization, business nonprofit organization, bank, nondepository community development financial institution, or business development corporation or other entity as determined by the division to administer the program. If the division contracts with an entity or entities to administer the program, the division shall use an open and competitive process pursuant to the state procurement code, articles 101 to 112 of this title 24, to select the entity or entities. A contract with an administrator may include an administration fee established by the division at an amount reasonably calculated to cover the ongoing administrative costs of the division in overseeing the program. The division may advance money to an entity under a contract in preparation for issuing loans and grants and administering the program.(3) A contract with an administrator may require the administrator to repay all lending capital that is not committed to loans or grants under the program and all principal and interest that is repaid by borrowers under the program at the end of the contract period if, in the judgment of the division, the administrator has not performed successfully under the terms of the contract. The division may redeploy money repaid under this subsection (3) as grants or loans under the program or through another administrator.(4) The division shall establish and publicize policies for the program. At a minimum, the policies must address: (a) Coordination with the office of emergency management created in section 24-33.5-705 to prioritize the use of the disaster emergency fund created in section 34-33.5-706 for the allowable uses of loans and grants under the program that are not housing related;(b) The process and any deadlines for applying for and receiving a loan or grant under the program, including the information and documentation required for the application;(c) Eligibility criteria for applicants to the program;(d) Maximum assistance levels for loans and grants;(e) Loan terms, including interest rates and repayment terms;(f) Any additional specifications or criteria for the uses of the grant or loan money allowed by subsection (5) of this section;(g) Any reporting requirements for recipients, which must include the demographic data of each recipient aggregated by race, ethnicity, disability status, and income level;(h) Any program fees, including any application fee or origination fee, and closing costs;(i) Underwriting and risk management policies;(j) Any requirements for applicants to apply for or exhaust other sources of assistance or reimbursement to be eligible for a loan or grant under the program. If the policies establish such a requirement, the policies must specify to which applicants the requirement applies, which sources must be applied for and denied or exhausted, and what documentation is necessary to establish the applicant has met the requirement.(k) Equitable community outreach and equitable access to program information, including communications in the relevant languages of the community and equitable hearing, sight, and physical accessibility; and(l) Any additional policies necessary to administer the program.(5) The program may provide loans or grants or a combination of both to eligible applicants. In reviewing applications and awarding grants, the division shall give priority to eligible applicants who demonstrate that their needs cannot be met by other sources of assistance. Loans or grants may be used to:(a) Subsidize costs to repair or rebuild a homeowner's primary residence that are insufficiently covered by the homeowner's insurance or by loans, grants, or other assistance available from the federal emergency management agency, the federal small business administration, or other state or federal assistance programs. Costs that may be covered include, but are not limited to: (I) Direct costs of repairs or reconstruction of a damaged or destroyed primary residence, including costs to rebuild to advanced fire and other natural hazard mitigation standards;(II) Soft costs such as architectural and engineering costs and permitting fees associated with repairing or rebuilding a primary residence;(III) Soil sampling and air quality monitoring;(IV) Clearance and demolition costs, including concrete flat work removal and removal of hazardous material, including asbestos;(V) Private road or bridge repair if necessary to access a primary residence;(VI) Costs associated with using building and site design measures that reduce risk to natural hazards, including fire resistant building materials and landscape design;(VII) Costs to replant climate ready trees and vegetation;(VIII) Temporary rental assistance during relocation or rebuilding or recovery work; and(IX) Other recovery costs not covered by other sources that will increase resilience to future disasters;(b) Repair or reconstruct housing stock in an area that is affected by a declared disaster and is experiencing a shortage of adequate housing or has a significant number of affected households. The program may provide a grant or loan under this subsection (5)(b) to:(I) A housing authority or low-income housing tax credit partnership to fund the replacement or repair of multi-family housing in an area affected by a declared disaster;(II) A nonprofit corporation to provide construction assistance to low-income households in an area affected by a declared disaster;(III) A person who owns rental housing and requires additional resources to rebuild or repair the rental housing. A loan or grant made pursuant to this subsection (5)(b)(III) must include provisions requiring the recipient to provide affordable rent for the rental housing following the repair or reconstruction and temporary rental assistance for displaced renters, as determined by the division.(c) Provide operating capital to a business experiencing a business interruption or cover the costs of replacing or repairing the business's real property, equipment, or inventory that was lost or damaged in the disaster;(d) Rebuild neighborhoods or portions of neighborhoods in a manner that serves as a pilot project for advanced community planning to resist the impacts of natural disasters caused by climate change or reduce actions that contribute to climate change, including but not limited to micro-grids, community battery storage, community district heating or geothermal heating systems, or wildfire resilient land use planning strategies;(e) Reimburse a governmental entity for any unmet needs associated with a declared disaster that are not covered by public assistance from the federal emergency management agency or other state or federal assistance, including assistance provided pursuant to section 24-33.5-704 (7)(j). Unmet needs that may be covered include, but are not limited to:(I) Rebuilding or repairing transportation infrastructure;(II) Health and safety improvements or investments related to disaster recovery and resiliency; or(III) Replacement of lost revenue from sales taxes, property taxes, public utility or service fees, or other revenue sources that were negatively affected by a declared disaster; or(f) Assist eligible applicants in addressing other related unmet needs as allowed by the policies adopted by the division pursuant to subsection (4) of this section in order to recover or rebuild from a declared disaster.(6) The division may seek, accept, and expend gifts, grants, or donations from private or public sources for the purposes of this section. The division shall transmit all money received through gifts, grants, or donations to the state treasurer, who shall credit the money to the fund.(7)(a) The disaster resilience rebuilding program fund is hereby created in the state treasury. The fund consists of money transferred to the fund in accordance with subsection (7)(d) of this section, any other money that the general assembly appropriates or transfers to the fund, and any gifts, grants, or donations credited to the fund pursuant to subsection (6) of this section.(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.(c) Money in the fund is continuously appropriated to the division for the purposes specified in this section and for the development of the disaster survivor portal described in section 24-33.5-1106 (4).(d) Three days after May 17, 2022, the state treasurer shall transfer fifteen million dollars from the general fund to the disaster resilience rebuilding program fund created in subsection (7)(a) of this section.(8) The division and the department of local affairs shall collaborate with the Colorado energy office created in section 24-38.5-101 on the implementation of this section as set forth in section 24-38.5-115 (8).(9) On or before January 1, 2024, and on or before each January 1 thereafter, the division shall submit a report summarizing the program to the house of representatives transportation and local government committee and the senate local government committee, or their successor committees. Notwithstanding the requirement in section 24-1-136 (11)(a)(I), the requirement to submit the report required in this subsection (9) continues indefinitely.Added by 2022 Ch. 173, § 2, eff. 5/17/2022.