The following are priority bills affecting the Residential Rental Property industry. Are you a self-managing landlord confused over new legislation? Contact us about our management services in the Denver and Boulder areas.
End of Session Report 2019
Courtesy of the Colorado Apartment Association
The First Regular Session of the Seventy-first General Assembly convened on Jan. 4, 2019 and adjourned on May 3, 2019. Below please find a recap of the 120-day legislative session.
Priority Bills Affecting the Residential Rental Property
(Summary of your legislative issues)
HB 19-1106 (Titone, Gonzales-Gutierrez/Pettersen) Rental Application Fee
This bill prohibits a landlord from charging a rental application fee unless the entire amount of the fee is used to cover the landlord’s cost to process a rental application, such as the cost to conduct a personal reference check or to obtain a consumer credit report. Landlords may not charge two or more prospective tenants a different amount for applications to rent the same property. Landlords must provide each prospective tenant with written notice of the tenant selection criteria, and the grounds upon which a rental application may be denied, prior to charging an application fee. Additionally, this bill requires that a landlord provide a prospective tenant with specified notifications if the landlord rejects or places additional requirements in a rental application (adverse action) after reviewing and evaluating the rental application. The sponsors of this bill spent a lot of time working with the Apartment Association to address our concerns. We successfully negotiated a number of amendments to make this bill more palatable.
Position: Amend
Outcome: Signed by Governor
Effective Date: August 2, 2019
HB 19-1118 (Jackson, Galindo/Williams) Time Period to Cure Lease Violation
Under current law a tenant is given three days to pay unpaid rent or vacate the property before a landlord may begin eviction proceedings. This bill requires that a landlord provide ten days’ notice of insufficient rent prior to beginning eviction proceedings or terminating a lease agreement for a subsequent violation of terms. The bill creates an exception to this requirement for a nonresidential agreement or an employer-provided housing agreement, in which case, three days’ notice is required. As introduced, the bill required 14 days. Numerous attempts to amend this bill further proved futile, and it ultimately passed with the new 10-day notice requirement.
Position: Amend
Outcome: Sent to Governor
Effective Date: Upon Signature of Governor
HB 19-1170 (Jackson, Weissman/Williams, Bridges) Residential Tenants Health & Safety Act
Current law presumes that every rental agreement between a landlord and a tenant carries an implicit guarantee that a residential property is fit for human habitation. This is referred to as a warranty of habitability. This bill:
• modifies the conditions for a breach of the warranty of habitability, the method for notifying a landlord of problems with the premises, and time limits for the landlord to address defective conditions;
• adds specific conditions of a property to the description of an uninhabitable residence to include the presence of mold or the absence of functioning appliances;
• if requested by the tenant, requires that a landlord move the tenant to a reasonably comparable unit, pay for incidental moving costs, or pay for the tenant to reside in a temporary location when a property is hazardous or uninhabitable and conditions are being remedied;
• under specific circumstances, allows a tenant to deduct from subsequent rent payments the cost to repair defective conditions;
• allows a tenant to terminate a rental agreement for recurring defective conditions;
• repeals the current law requirement that a tenant notify a local government prior to seeking a court injunction; and
• modifies the current law prohibition on landlord retaliation when a tenant alleges a breach, to specify damages and remove presumptions.
Position: Amend
Outcome: Passed House & Senate
Effective Date: August 2, 2019
HB 19-1322 (Roberts, Will/Moreno, Coram) Expand Supply Affordable Housing
This bill requires that up to $30 million from the Unclaimed Property Trust Fund be transferred to the Housing Development Grant Fund each June for three years starting in FY 2020-21 through FY 2022-23. Transfers are limited to three fiscal years. The amount transferred will be based on the balance in the Unclaimed Property Trust Fund as of June 1 each fiscal year, as well as the Legislative Council Staff June revenue forecast. If the amount of revenue forecast exceeds the Referendum C cap for the current year minus $30 million dollars, the transfer will be made. In addition to existing statutory mandates, the funds transferred to the Housing Development Grant Fund may be spent for the following purposes:
• grants and loans for housing in non-urban areas for purchasers with up to 120 percent of the area median household income;
• down payment assistance programs for households with up to 100 percent of the area median household income in conjunction with public and private organizations;
• programs for home rehabilitation;
• repair, replacement, and disposal of mobile homes, in conjunction with local organizations;
• grants and loans for land acquisition and infrastructure costs for the provision of utilities for affordable housing developments;
• grants and loans for affordable housing targeted at specific area or income levels; and
• rental assistance programs targeting homeless families, Medicaid clients in nursing homes, family unification, veterans, households below 60 percent of the area’s median income, and survivors of domestic violence.
The Division of Housing is required to consult with stakeholders from urban and rural communities in order to determine how to meet the needs of local communities, serve populations with the greatest unmet need, and optimize the funds allocated.
Position: Support
Outcome: Passed House & Senate
Effective Date: August 2, 2019
HB 19-1328 (Herod/Rodriguez) Landlord & Tenant Duties Regarding Bed Bugs
The bill requires a tenant to promptly notify a landlord when the tenant knows or reasonably suspects that a rented residential unit contains bed bugs. Not more than 96 hours after receiving notice, a landlord must inspect the dwelling unit and any contiguous dwelling units. Except as otherwise provided, a landlord is responsible for all costs associated with mitigating bed bugs. The bill requires that landlords provide tenants reasonable notice of the need to inspect a unit. Tenants must comply with reasonable measures to mitigate bed bugs and must pay any cost associated with preparing the dwelling unit for inspection and treatment. A tenant who knowingly and unreasonably fails to comply with inspection and treatment requirements is liable for the cost of subsequent bed bug treatments.
Position: Neutral
Outcome: Passed House & Senate
Effective Date: January 1, 2020
SB 19-180 (Winter/McCluskie) Eviction Legal Defense
This bill creates the Eviction Legal Defense Fund in the Judicial Department. Grants will automatically be awarded from this fund twice a year to qualifying nonprofit organizations in each county that will provide legal advice, counseling, and representation to indigent clients facing or at risk of eviction. This bill requires nonprofit organizations that receive a grant from this fund to submit an annual report to the State Court Administrator’s Office (SCAO) that includes information on the number of clients served, nature of assistance rendered, amount of rent in dispute, and demographic data. In addition, the SCAO must evaluate the use of grant money from the fund by December 31, 2024 and every five years thereafter. This bill allows the SCAO to accept and spend gifts, grants, and donations for the purpose of awarding grants. Lastly, this bill provides an appropriation of $750,000 to the eviction legal defense fund.
Position: Monitor
Outcome: Passed House & Senate
Effective Date: Upon Signature of Governor
SB 19-225 (Gonzales, Rodriguez/Lontine, Gonzales-Gutierrez) Authorize Local Government to Stabilize Rent
Current law prohibits a local government from enacting laws that control rent on private residential real property, or private residential housing units. This bill attempted to remove that prohibition and permit local governments to enact local laws or regulations that stabilize rent on private residential property. The sponsors of this bill pitched it as a “rent stabilization” bill but it would have been the first giant step toward rent control in Colorado. The bill was assigned to the only Senate committee it could possibly pass through but was never heard on 2nd reading in the Senate. Democratic leadership knew there weren’t enough votes to pass the bill, so rather than eat up hours of time debating rent control, they opted to let it die on the calendar.
Position: Oppose
Outcome: Died on the Calendar
Are you a self-managing landlord confused over new legislation or fair housing laws? Contact us with any questions about Priority Bills Affecting the Residential Rental Property. Our management services are in the Denver and Boulder areas.
