Senate Approves Bill to Prevent Price Gouging on Rent After a Disaster

Legislation aims to address alarming rent hikes after a disaster declaration, such as the Marshall Fire

DENVER, CO – The Senate today passed a bill that would protect Coloradans who live in an area affected by a disaster from excessive rent increases.

HB24-1259 would prohibit rental price gouging for one year after a disaster declaration issued by the Governor or the U.S. President, where the declaration specifically declares a material decrease in housing. Rent increases would be capped at the percentage of the rent increase for the prior year or 10 percent compared to the unit’s rent immediately before the disaster, whichever is greater.

“After the Marshall Fire, affected Coloradans saw their rents skyrocket, and those who lost their everything were thrown into a priced-gouged market that strained them even more,” said Cutter. “As our planet continues to warm, we know that wildfire season is a year-round threat and natural disasters like this one will become more frequent. This bill will protect Coloradans from rental price gouging in the wake of disasters, and ease the burden of housing during already-difficult times.”

The bill would make it an unfair and unconscionable act or practice to price gouge when providing rental housing during the one-year period, allowing the Attorney General or a district attorney to pursue enforcement actions, including civil penalties, under the Colorado Consumer Protection Act. Affected tenants would also be able to pursue civil action for violations.

While homeowners insurance policies cover up to two years of rent for people whose homes are uninhabitable, people who were renting prior to a natural disaster don’t have this support. In the year after the devastating Marshall Fire, a report showed many impacted residents saw their rents increase 30 to 50 percent.

The bill now heads to the House for concurrence of amendments. Follow its progress HERE.