HB 1360

Joint Budget Committee. The bill directs the state treasurer to transfer $130 million from the state affordable housing fund (fund) to the general fund on June 30, 2026, and makes 3 corresponding adjustments to the affordable housing financing fund (financing fund). First, the bill adjusts the July 1, 2026, transfer from the fund to the financing fund to be reduced by the amount of the June 30, 2026, transfer from the state affordable housing fund. Second, for the 2026-27 state fiscal year only, the bill adjusts the prioritization of programs funded by the financing fund, so that the programs are funded in the following order: The concessionary debt program, the affordable housing equity program, and the land banking program. Third, the bill ensures that this transfer does not reduce the amount that may be spent on administrative expenses for implementing programs funded by the financing fund in the 2026-27 state fiscal year and pools the costs of administering these programs for fiscal years beginning with the 2026-27 state fiscal year. The bill clarifies that interest and investment income earned on the financing fund may be expended for projects funded by the fund. Under current law, if legislative council staff's March economic and revenue forecast projects that state revenue will not exceed the state fiscal year spending limit, the general assembly reduces the funding allocated to the financing fund. The bill allows for the general assembly to so reduce the funding allocated to the financing fund for the 2025 state fiscal year as a result of revenue forecasts projecting that state revenue will not exceed the state fiscal year spending limit. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)