Colorado Legislature Advances Housing Bills Amid Smaller Focus on Housing Policy

Strategic Insights -

This year, the Colorado Legislature had a smaller focus on housing policy after the passage of land use laws in 2024. However, lawmakers still advanced various bills related to housing, particularly for renters and first-time homebuyers. The bills, many with Democratic sponsorship, passed along party lines or were bipartisan. Governor Jared Polis, a Democrat, has until June 6 to take action on the bills, with a focus on receivership for shoddy apartments, cracking down on rent price fixing, reduced liability for condo construction, a boost for modular housing, and a ban on junk fees.

Key Takeaways:

  • Senate Bill 25-20 would allow third-party takeover of rundown apartment buildings that violate state laws around maintenance and habitability, with a focus on severe neglect.
  • The bill was partially a response to a dilapidated building in Aurora owned by CBZ Management, which had longstanding safety problems and was closed by the city last year.
  • House Bill 25-1004 would ban the use, sale, and distribution of software that uses an algorithm to set rents, including companies like RealPage.
  • A study from the Biden administration last year found that units priced with RealPage software are about $136 more per month.
  • House Bill 25-1272 would give construction companies the choice to opt in to a program that would limit construction defect claims, which drive up project insurance costs and are said to be the reason condominium construction has plummeted in the state.
  • The bill was heavily amended to assuage concerns from trial lawyers, home builders, and homeowners, and was sent to Governor Polis on May 6.
  • Senate Bill 25-2 would streamline and unify regional building codes for factory-built structures, eliminating red tape and allowing for faster and lower-cost construction.
  • House Bill 25-1090 would prohibit landlords from not disclosing extra costs, such as trash service, pest control, and community amenity fees, on top of base rent, and would be implemented starting in 2026.
  • The bill was signed by Governor Polis, who stated that the law cracks down on "surprise costs" that often add up to hundreds of dollars in monthly expenses for Coloradans.

Statistics:

  • $136 per month: the average increase in rent for units priced with RealPage software, according to a study from the Biden administration last year.
  • 2026: the year in which the law requiring disclosure of extra costs, such as trash service and pest control, will be implemented.
  • 90 days: the timeframe within which landlords can seek to end receivership for a building under Senate Bill 25-20.

Sources:

  • (https://coloradonewsline.com/subscribe)
  • (https://leg.colorado.gov/bills/sb25-020)
  • (https://leg.colorado.gov/bills/hb25-1004)
  • (https://leg.colorado.gov/bills/hb25-1272)
  • (https://leg.colorado.gov/bills/sb25-002)
  • (https://leg.colorado.gov/bills/hb25-1090)
  • (https://coloradonewsline.com/2024/09/04/disputing-claims-of-gang-takeover-aurora-tenants-protest-slumlord-owner/)
  • (https://leg.colorado.gov/bills/hb25-1273)
  • (https://leg.colorado.gov/bills/hb25-1249)
  • (https://leg.colorado.gov/bills/hb25-1030)