(1) The general assembly finds and declares that there is a shortage in Colorado of decent, safe, and sanitary housing which is within the financial capabilities of low- and moderate-income families. In order to alleviate the high cost of construction loans and home mortgage interest costs for such families, the general assembly believes that it is essential that additional public moneys be made available, through the issuance of revenue bonds, to assist both private enterprise and governmental entities in meeting critical housing needs. The general assembly also finds and declares that the compelling need within the state for such assistance can best be met by the establishment of a quasi-governmental and corporate entity vested with the powers and duties specified in this part 7.
The general assembly further finds and declares that many housing facilities occupied by low- and moderate-income families use excessive and unnecessary amounts of energy for heating and other home uses due to inadequate insulation or to the absence of other design features or materials which reduce total home energy requirements; that high costs impair the ability of such families to afford decent, safe, and sanitary housing facilities; that many such facilities do not conform to building, housing maintenance, fire, health, or other state, county, or municipal codes or standards applicable to housing; that many such facilities are located in, and by their condition contribute to, deteriorating neighborhoods; that many such facilities are inadequate for the number of persons occupying them; that many such facilities cannot be repaired or improved within the financial capabilities of the low- or moderate-income owners or occupants; and that existing private and public means of enterprise and investment cannot provide financing or assistance on terms and conditions within the means of many such low- or moderate-income families. These conditions are adverse to the safety, health, and welfare of the citizens of this state and are contrary to the public policies of promoting the conservation of scarce energy resources, of minimizing the impact of higher costs on the ability of low- and moderate-income families to afford decent, safe, and sanitary housing facilities, and of preventing and eliminating blight in urban and rural areas. The general assembly therefore further finds and declares that it is a valid public purpose to preserve and promote the safety, health, and welfare of the citizens of this state by the exercise of the powers specified in this part 7.
The general assembly further finds and declares that there exists in this state a needto promote sound economic development, to maintain employment, and to encourage job opportunities in areas of unemployment and underemployment by assisting in the provision of facilities for business enterprises, including profit and nonprofit enterprises and particularly enterprises of small and moderate size, by assisting in the provision of capital to such business enterprises, and by otherwise supporting such business enterprises. The general assembly therefore finds and declares that it is a valid public purpose to preserve and promote the safety, health, and welfare of this state and its inhabitants by the exercise of the powers specified in this part 7 to finance the acquisition, construction, reconstruction, rehabilitation, improvement, and equipping of facilities for business enterprises, including profit and nonprofit enterprises and particularly enterprises of small and moderate size, by private persons and political subdivisions of this state, to finance loans to and to make equity investments in such business enterprises for capital purposes, and to otherwise support such business enterprises.
The general assembly further finds and declares that the purpose of this part 7 is tocreate the Colorado strategic seed fund to meet the special needs of entrepreneurs and small business operators in Colorado who would not otherwise be able to obtain funding for the development of ideas into viable and marketable products and services which would enhance the economic growth and development of Colorado, that this fund will be used to establish operating seed funds for investment in small businesses, and that this investment will, in turn, lead to further growth, diversification, and improvement of the Colorado economy.
The general assembly further finds and declares:
That there exists a need to leverage private sector investment in new and innovativeproducts, in entrepreneurial activity, and in economic development finance and that, therefore, state assistance for development finance should reflect a leveraging investment strategy; and
That the lending and investment of moneys to develop and improve the economy ofthe state requires specialized and unique knowledge, skill, and experience.
(6) The general assembly further finds and declares that the investment strategy of the managers of the operating seed funds should be:
To invest in companies in the earliest stages of their development;
To invest in companies which have exceptional merit and which will be locatedwithin the state of Colorado;
To invest in companies in which the founding entrepreneurs have made significantindividual investments;
To invest in companies whose success will result in the creation of jobs in Colorado;
To invest in companies which will attract other sources of venture capital for longterm development;
To invest in attractive growth companies which are coupled with the state's businessincubators;
To assist companies with direct and ongoing business consultation to establish aviable management structure and strategic plan;
To provide an opportunity for subsequent financing for follow-up operations of successful companies;
To limit the amount invested by a manager in investments outside of Colorado to notmore than fifty percent of the capital of an operating seed fund.
Source: L. 73: p. 805, § 1. C.R.S. 1963: § 69-11-1. L. 76: Entire section amended, p. 688, § 1, effective April 19. L. 77: (2) amended, p. 1412, § 1, effective June 19. L. 82: (3) added, p. 461, § 1, effective April 23. L. 87: (3) amended, p. 1190, § 2, effective May 20. L. 88: (4) to (6) added, p. 1101, § 1, effective May 29.
Editor's note: This section was originally numbered as § 29-4-701 in C.R.S. 1973 but was renumbered on revision in the 1977 replacement volume for ease of location.