Senate Passes Bill to Prevent Income Discrimination, Protect Renters
Legislation aims to remove barriers to housing stability
DENVER, CO – Today, the Senate passed Senators Faith Winter, D-Westminster, and Tony Exum Sr.’s, D-Colorado Springs, bill to provide greater access to housing for renters with limited incomes.
Currently, landlords can require a tenant to earn an annual income that exceeds set “multipliers” of the annual rent, often three to five times as much, limiting those rentals to wealthier individuals. SB23-184 would expand access to housing by limiting any minimum income requirement to two times the cost of the rent.
For prospective tenants with a housing voucher or subsidy, this cap would only apply to their portion of the rent obligation, and landlords wouldn’t be able to inquire about or consider their credit score.
“Over the last decade the cost of housing in Colorado has doubled, forcing folks to spend larger shares of their income on rent,” said Winter. “Our rental market hasn’t adjusted to these challenging economic realities, and many Coloradans – especially those on limited or fixed incomes – are denied housing or face barriers to obtaining housing because of income requirements. It’s time to put in place sensible guardrails to expand housing access for Coloradans of all income levels.”
“Over half of low-income Coloradans spend more than 30 percent of their income on rent,” Exum said. “Burdensome income requirements shut out too many hardworking Coloradans from the market. This bill will help ensure prospective renters aren’t being discriminated against because of their income while improving housing stability across Colorado.”
Large security deposits can also price renters out of housing. This bill would break down cost-barriers by capping security deposits at two times the monthly rent.
Although Coloradans who experience housing discrimination can sue or file a civil rights complaint, they’re not able to raise discrimination as a defense to an eviction. SB23-184 would further protect tenants from eviction by establishing that a violation of the bill's new prohibitions is an unfair housing practice and clarifying that fair housing violations, including source of income violations, are an affirmative defense to eviction.
SB23-184 now heads to the House for further consideration. Follow the bill’s progress HERE.