I will create a special department within the Division of Housing to offer home loans to any Coloradan who wants to buy a home (minimum one year Colorado residency). Colorado will purchase homes at cost and sell at cost across our state, capping interest rates at 2.75% with maximum $2,500 down payment.
We’ll invest $500 million initially. Each home buyer agrees to contribute 1.5% back to Colorado when they sell, rolling money back into the fund to help the next family. Home sellers who sell to Colorado at market evaluation receive tax credits. This isn’t charity – it’s smart investment in our people.
DETAILED PROGRAM MECHANICS:
Initial Investment: $500 Million
- State General Fund: $200 million
- Bond Issuance: $200 million (backed by future loan repayments)
- Federal Infrastructure Funds: $100 million
Loan Terms:
- Interest Rate: Fixed 2.75% (vs. current 6-8%)
- Down Payment: Maximum $2,500
- Income Requirement: Must have lived in Colorado 1+ years
- Home Price Limit: $400,000 (adjusted by county median income)
Financial Sustainability:
- Year 1: 500 homes × $300,000 average = $150 million loans
- Year 5: Self-sustaining through loan repayments + 1.5% kickbacks
- Year 10: $2 billion in total loans originated
Risk Management:
- Default Reserve: 5% of fund reserved for defaults
- Income Verification: 3× income rule for loan approval
- Mortgage Insurance: Required for loans over 90% LTV
Anti-Speculation Measures:
- Residency Requirement: Must live in home minimum 3 years
- Income Limits: 120% of area median income maximum
- Investment Property Prohibition: Cannot be used for rental properties
Home Acquisition Strategy:
- Direct Purchase: State negotiates bulk purchases from builders
- Foreclosure Acquisitions: Purchase distressed properties at cost
- New Construction Partnerships: Work with local builders
FIGHTING RENT COLLUSION
There’s been collusion between landlords and private equity firms to drive up rent with no real market basis. I will aggressively use antitrust laws and create a dedicated enforcement unit. Coloradans can report rental abuses directly to our office for immediate action with real consequences.
As someone who owns real estate, I’m conscious of ensuring fair, affordable housing. Since the pandemic, office buildings and plazas sit empty while families struggle to find housing. Let’s convert unused property into affordable housing so everyone can afford to live safely in Colorado.
