Key Developments from the 2024 Legislative Session

Posted By: Drew Hamrick Articles, Legal / Legislative, Industry,

A record number of bills were proposed in the Colorado Legislature this year. Of the 705 bills introduced this session, the Colorado Apartment Association (CAA) identified more than a dozen that would have been harmful to rental housing providers. 

CAA and its lobbyist team HBS minimized the impact of these bills through collaboration with bill sponsors when possible and mobilization of opposition when not. In all cases, very bad bills were amended heavily. In all but two cases, the bills were either modified to the point that CAA was able to drop opposition before passage or they were defeated. However, two of the bills were passed without enough changes for CAA to drop opposition.

The following is a summary of the most important of those bills:

 

HB24-1098

Cause Required for Eviction of Residential Tenant  

Position: Oppose (initially) / Neutral (at passage)

Status: Passed

The title of this bill is misleading because it has very little to do with eviction procedure. Rather, it deals with when a property owner can or cannot renew a lease. As introduced, the bill required the property owner to pay the tenant three month’s rent if a lease was not renewed and prohibited non-renewal of leases for a host of reasonable reasons for non-renewal. Through CAA amendment, the requirement for payment to the tenant was eliminated, non-renewal without a provable reason during the first 12 month lease was allowed, and non-renewal for provable lease violations and for the desire to take the unit out of the rental market were protected. As a condition for obtaining these amendments, CAA moved its position to neutral on the bill. The bill will require that a landlord document and potentially be able to prove claimed behavioral violations as a basis for not renewing leases. 

 

HB24-1051

Prohibit Algorithmic Devices Used for Rent Setting    

Position: Oppose

Status: Failed

This bill was introduced early on in the legislative session and ultimately ended up dying in the final weeks. As introduced, the bill prohibited the use of all third-party pricing models and all comparative data in rental pricing decisions. CAA was able to force amendments in the Senate to protect all third-party pricing products and the use of all market information. The proponents refused to compromise and the bill ultimately died due to conflicts between House and Senate versions of the bill. 

 

HB24-1175 

Local Governments Rights to Property for Affordable Housing  

Position: Oppose

Status: Passed | Effective Date: August 7, 2024 

This bill was introduced very early on in the legislative session but stood to be one of the very last bills to move through the process, formally passing both chambers on the very last day of session. The bill currently awaits the Governor’s signature, which is likely, even though last year, the Governor vetoed a much broader version of the bill. 

The bill will give local governments the right of first refusal for certain “affordable” properties (those with recorded affordability requirements) and the right of first offer on certain market rate properties before a property owner can sell a property on the private market. Through CAA backed amendments, the time frames for the local governments to exercise and close on rights of first refusal on affordable properties have been greatly reduced and the requirement that the local government’s offer be equivalent to market offers have been greatly tightened up. However, these requirements will still add complexity, expense and uncertainty to acquisitions.  

Local governments also now will have a right of first offer (the right to be notified of a listing) on market rate multifamily properties. These provisions are applicable to the sale of any multifamily property that is 30 or more years old and has between 15 and 100 units. 

CAA’s amendments tried to move the bill to impose only the right of first offer notification requirements and impose those only on affordable properties. However, the Governor's office seems satisfied that the scaled back scope of both the notice requirements on market property and the right of first refusal on affordable properties is enough of a concession to overcome his veto of last year's version of this bill.

 

HB24-1259 

Price Gouging in Rent Declared Disaster 

Position: Oppose (initially) / Neutral (at passage)

Status: Passed | Effective Date: Upon Governor’s Signature 

This bill prohibits price gouging in the provision of housing during a declared disaster. CAA staff and lobbyists engaged with the House Sponsor of this bill very early on in the process, ahead of the bill’s introduction, with initial amendments in the House. The efforts of CAA staff, lobbyists and members in the Senate created enough changes to move us to a neutral position on the bill. New provisions aim to limit rent increases in disaster areas, capping hikes at the greater of 10% or the previous year’s market increase and restricting these limits to one-year after the disaster declaration. We were also able to remove the deceptive trade practice designation for violations.

 
HB24-1334 

Broadband Service for Multiunit Buildings  

Position: Oppose

Status: Passed | Effective Date: August 7, 2024 

This bill is part of the growing national regulatory movement aimed at perceived limitations on tenant access to internet services.  As introduced, it would have allowed any and all broadcast equipment to be placed on Colorado properties without regard to interference with other property uses, prohibited property owners from being compensated for broadband easements, and gave the property owner no control over installation methods.  As amended, the bill preserves rights to reasonable compensation, imposes reasonable restrictions on the location and scope of the equipment (including below grade installation) and protects existing property uses and broadband agreements. CAA moved its position to neutral as a condition of gaining these amendments.    

 

HB24-1051

Towing Carrier Regulation  

Position: Oppose (initially) / Neutral (at passage)

Status: Passed | Effective Date: August 7, 2024 

This bill stemmed from the Transportation Legislation Review Committee that met over the summer and fall of 2023. The primary goal of the committee was to reduce the number of towed vehicles from residential parking lots. As introduced, there were many provisions that would have been extremely problematic for property owners. The primary focus was a requirement that property owners (not the car owners) pay for tows, even when the vehicle was improperly parked. CAA took the lead in working closely with the bill sponsors to find a consensus solution that addressed proponents’ concerns around claimed predatory towing, without detrimentally impacting property owners and their ability to properly control their parking lots. The passed legislation eliminated the obligation for the property owner to pay for tows, moving CAA to a neutral position on the bill. 

However, towing carriers will no longer be allowed to initiate a tow without an employee of the owner or property manager authorizing the towing decision. New signage will be required at the entrance and in multiple locations on the lot.

  

SB24-1014

Deceptive Trade Practice Significant Impact Standard 

Position: Oppose

Status: Failed

HB24-1014 proposed reclassifying most consumer disputes as Deceptive Trade Practices claims, by eliminating the legal requirement that a person making a Deceptive Trade Practices claim demonstrate that the complained of behavior effected a significant number of consumers. The elimination of the “significant impact” requirement would have converted any mundane contract dispute into a deceptive trade practice enabling the awarding of treble damages, attorney fees, and giving jurisdiction over the dispute to the Attorney General. While this legislation would have negatively impacted all Colorado industries dealing with consumers, its sweeping scope was largely unrecognized.  CAA led the opposition that defeated the bill. 

  

SB24-094 

Safe Housing for Residential Tenants   

Position: Oppose

Passed. Effective Date: May 3, 2024, 3:00 pm 

This bill, as introduced, completely upended the existing Warranty of Habitability statute and modified the burden of proof for landlords as it pertains to remediation of a WOH issues. 

The bill places rebuttable presumptions  (7 or 14 days) on completing remedial action after being informed of a habitability issue. One of the most problematic provisions is a requirement to provide a tenant with a comparable dwelling unit for up to 60 days while repairs are made.