(1) There is hereby created in the state treasury the housing development grant fund, which fund shall be administered by the division and is referred to in this section as the "fund". The fund shall consist of moneys appropriated to the Colorado affordable housing construction grants and loan fund by the general assembly, all moneys collected by the division for purposes of this section from federal grants, from other contributions, gifts, grants, and donations received from any other organization, entity, or individual, public or private, and from any fees or interest earned on such moneys. The division is hereby authorized and directed to solicit, accept, expend, and disburse all moneys collected for the fund from the sources specified in this subsection (1) for the purpose of making grants or loans and for program administration as provided in this section. All such moneys shall be transmitted to the state treasurer to be credited to the fund. The moneys in the fund are hereby continuously appropriated to the division for the purposes of this section. The moneys in the fund may be expended for the purpose of funding activities initiated during the current state fiscal year that are to be completed in subsequent state fiscal years.

(2) (a) Subject to the requirements of this section, upon the approval of the board, the division may make a grant or loan from moneys in the fund to improve, preserve, or expand the supply of affordable housing in Colorado as well as to fund the acquisition of housing and economic data necessary to advise the board on local housing conditions. In making loans of moneys or grants from the fund, the division shall give priority to owners of property that was either destroyed or incurred substantial damage as a result of one or more state or federally declared natural disasters where the property owner has received the maximum insurance proceeds and public disaster assistance.

(b) and (c) (Deleted by amendment, L. 2014.)

(3) (a) Any moneys in the fund not expended or encumbered from any appropriation at the end of any fiscal year, including interest earned on the investment or deposit of moneys in the fund, shall remain in the fund and shall not revert to the general fund or any other fund and shall remain available for expenditure by the division in the next fiscal year for the purposes specified in subsection (2) of this section without further appropriation.

(b) Notwithstanding any other provision of this section, the division, in its discretion, may transfer twenty percent of the balance of moneys in the fund into the housing investment trust fund established in section 24-32-717 (1)(a), which balance is calculated as of July 1 of the state fiscal year in which the money is transferred. For any given state fiscal year, no more than three percent of the moneys appropriated from the fund may be expended for the administrative costs of the division in administering the fund.

(4) (a) As used in this subsection (4), unless the context otherwise requires, "person with a behavioral or mental health disorder" means an individual who has or, at any time during the previous twelve months, had a diagnosable mental, behavioral, or emotional disorder of sufficient duration to meet diagnostic criteria specified within the diagnostic and statistical manual of mental disorders, resulting in functional impairment that interferes with or limits one or more major life activities.

(b) In conjunction with its other programs to provide assistance in obtaining housing and subject to available appropriations, the division shall establish a program that provides vouchers and other support services for housing assistance for a person with a mental health disorder or co-occurring behavioral health disorder who is transitioning from the department of corrections, the division of youth corrections in the department of human services, or a county jail into the community.

(c) The division shall also provide grants or loans for the acquisition, construction, or rehabilitation of rental housing for persons with behavioral or mental health disorders.

(d) There is created in the state treasury the housing assistance for persons transitioning from the criminal or juvenile justice system cash fund, referred to in this subsection (4) as the "cash fund". The cash fund consists of all money transferred to the fund pursuant to section 17-27-108 (7) and all money that the general assembly appropriates to the cash fund. Subject to annual appropriation by the general assembly, the division may expend money in the cash fund for the purposes set forth in this subsection (4). All interest earned from the investment of money in the cash fund is credited to the cash fund. All money not expended at the end of the fiscal year remains in the cash fund, does not revert to the general fund or any other fund, and remains available for expenditure by the division in the next fiscal year for the purposes of this subsection (4) without further appropriation.