Local Government & Housing Committee Advances Trio of Bills to Increase and Retain Affordable Housing Stock, Strengthen Renter Rights

Bills would create opportunities for local governments to increase and preserve affordable housing stock, strengthen renters rights, and improve transparency for buyers and renters

DENVER, CO – Today the Senate Local Government and Housing Committee voted to advance a trio of bills that would increase and retain affordable housing stock, bolster tenant rights in rental agreements, and improve transparency around the presence of radon in residential properties.

“Whether it’s Steamboat Springs or Sedalia, housing is a top concern for Coloradans,” Winter said. “This year we’re taking bold action to tackle Colorado’s housing crisis from all angles. By preserving the affordable housing stock we already have and strengthening renters rights, Coloradans will be better positioned to find housing options that fit their budget, and sign rental agreements that preserve their comfort and safety.”

Sponsored by Senators Faith Winter, D-Westminster, and Nick Hinrichsen, D-Pueblo, the first bill, HB23-1095, prohibits most rental agreements from including certain provisions that waive important rights. 

“Too often, Colorado renters unknowingly sign rental agreements that waive important rights, contain legal traps, and tack on hidden fees,” said Hinrichsen. “HB23-1095 prohibits landlords from sneaking inflated charges or unfair provisions into rental agreements, ensuring Colorado renters aren’t taken advantage of or exploited.”

Prohibited provisions include:

• Any waiver of the right to quiet enjoyment of the property, which protects renters from landlords entering the property without notice and their right to have peace and quiet in their home;

• Any waiver of the right to a jury trial, unless all parties agree to waive a jury trial in a hearing to determine occupancy;

• Any waiver of the right to participate in a class action lawsuit;

• Penalties or charges if a renter does not provide notice of non-renewal unless the landlord incurred actual losses as a result; or

• Provisions to charge renters for both third party services that is in excess of 2 percent of the actual charge or a monthly administrative fee of $10, to cover these services

Landlords often profit from renters by including inflated third party charges like pest control and valet trash services in administrative fees. UnderHB23-1095, landlords would not be allowed to charge renters more than 2 percent of the actual charge to the landlord or $10, but not both.

Large rental companies often use a class action waiver to protect themselves from lawsuits by preventing renters from collectively pursuing legal action. Individual renters usually can’t afford a legal fight against a large rental company, which allows rental companies to get away with violations.

A second billsponsored by Sen. Winter would give local governments the chance to match an offer on a multifamily or mixed-use property, if they commit to maintaining the property as affordable housing for at least 100 years. To qualify underHB23-1190, the property must have been constructed more than 30 years ago and consist of fifteen or more residential units in urban counties and five or more residential units in rural or rural resort counties.

Sellers would be required to notify local governments of the intent to sell or of a potential sale. The local government would have 7 business days to exercise the right to first refusal and another 30 business days to make an offer on the property.

The State Demographersuggeststhat 40,950 new housing units need to be built every year between now and 2030 for the housing market to return to a healthy level, but projects that Colorado will only build around 35,000 per year between 2020 and 2030, demonstrating the need to maintain existing affordable housing options.

SB23-206, also sponsored by Sen. Winter, would require sellers or landlords to provide warnings about the dangers of exposure to radon and to disclose information about radon presence or mitigation at a residential property. If a seller or landlord fails to provide the required information, a buyer or tenant may take a cause of action against a seller or landlord.

All three bills now head to the Senate floor for further consideration.