Colorado will create a new down payment assistance program to help public school teachers and staff buy their first homes under a bill signed on Wednesday by Gov. Jared Polis. 

Senate Bill 167 establishes a state-run investment portfolio within the state’s public school fund, which generates investment income to support K-12 education. The investment portfolio will be used to support loans, bonds and other financing mechanisms for housing projects, with the interest and income going to down payment assistance for public school employees. 

Most interest earned on money in the public school fund is not subject to revenue limits as part of the Taxpayer’s Bill of Rights. 

Lawmakers believe the measure will unlock at least $100 million in assistance by 2028 and $200 million by 2030, with the bill prioritizing help for first-time homebuyers. 

The bill, which received bipartisan backing in both the state House and Senate, is sponsored by Sens. Judy Amabile, D-Boulder, and Lisa Frizell, R-Castle Rock, as well as Reps. Shannon Bird, D-Westminster, and Meghan Lukens, D-Steamboat Springs. 

“The affordable housing crisis is the No. 1 issue that I hear about,” Lukens said during an interview last month, “and I hear about it for our critical workforce, including educators.” 

Lukens, who chairs the House’s Education Committee, said she was excited to support SB 167, which “addresses housing costs and helps keep our teachers in our communities.” 

The bill is among several education-focused policies that Lukens, a current high school civics teacher, sponsored this legislative session. 

Other measures include House Bill 1135, which requires school districts to adopt policies on students’ cell phone use, and House Bill 1006, which allows districts to lease land for purposes like building affordable housing for any amount of time. Lukens also sponsored House Bill 1186, which creates a pilot program for work-based learning in the Department of Higher Education.

Those three bills have also been signed into law.