A new housing incentive program has been created within the Office Of Economic Development (office), the act creates the innovative housing incentive program (program). This program provides funding to Colorado-based businesses that manufacture certain types of housing and have fewer than 500 employees. The office may award grants for operating expenses and incentives for units manufactured based on criteria such as affordability, location in the state or meeting energy efficiency standards. The funding may also be awarded through loans that fund the construction of a new housing manufacturing factory or the expansion of an existing one. A $40 million transfer of money from the general fund’s affordable housing and home ownership cash fund to the innovative housing incentive program fund is required by the act, and the office is continuously appropriating money from the fund to fund the program. Each year, the office must report to the general assembly how the innovative housing incentive program fund is being used.