Signed! New Law Creates Path to Homeownership for Teachers
SB25-167 creates a down payment assistance program for public school employees
DENVER, CO – Governor Jared Polis today signed into law bipartisan legislation sponsored by Senator Judy Amabile, D-Boulder, and Representatives Shannon Bird, D-Westminster, and Meghan Lukens, D-Steamboat Springs, to create the Educator First Home Ownership Program to provide down payment assistance for public school employees.
SB25-167, also sponsored by Senator Lisa Frizell, R-Castle Rock, creates a Community Investment Portfolio within the Public School Fund to be used for a shared equity down payment assistance program and other community investments. The law unlocks at least $100 million by 2028 and $200 million by 2030 to assist public school employees in buying their first home.
“SB25-167 uses financial tools already in our toolbox to help teachers and other public school employees afford a down payment,” said Amabile. “This new program will allow teachers, who give so much to our communities, to put down roots, build generational wealth, and have a safe and stable place to call home. It is a win-win, letting participants keep most of their equity if they sell, while sustaining the program and paying it forward for others."
“With this law, we’re making owning a home a reality for more Colorado teachers,” said Rep. Lukens. “The lack of affordable housing, especially in rural mountain communities like mine, can be a significant barrier for first-time homebuyers. By creating a new program to help public school teachers afford a down payment, more educators can afford to live in the communities where they teach.”
“For first-time homebuyers, the initial down payment can be financially intimidating or seemingly impossible,” said Bird. “This law makes it easier for our teachers to afford to purchase their very first home, making it possible for them to build generational wealth and put down roots in the communities they teach in. Together, we’re investing in our teachers.”
The down payment assistance program will be managed by the Colorado Housing and Finance Authority (CHFA) who will establish criteria for participation, prioritizing first-time homebuyers using the home as their primary residence. The new law establishes reporting requirements to the House and Senate Education Committees, the Public School Fund Investment Board (PSFIB), and the Colorado Department of Education.
The PSFIB will manage the portfolio. They may contract with investment advisors to provide support and expertise, and one member must have experience in community investments.