| This is another short week at the Capitol. The legislature is closed on Friday, March 29, 2024, for Good Friday. Unless we have an inclement weather closure, this will be the last short week at the legislature. We can anticipate long nights and weekend work to get through the calendar.
It was a disappointing afternoon before House Business Affairs Committee on Wednesday afternoon, March 27, 2024. House Business Affairs considered HB24-1351 Concerning the Sunset for the Division of Banking. Bankers provided compelling testimony for the committee to amend the bill to remove the provision authorizing a credit union to purchase the assets and liabilities of a bank. Unfortunately, the committee chose to ignore sound evidence and passed the bill intact. The bill was sent to House Appropriations. There is a fiscal note due to the increased fees allowed through the Sunset Report recommendations. These are cash funds, and the bill will pass out of appropriations without issue. The House Business Affairs Committee vote is disappointing but not surprising. This is one vote in many votes to come. This fight is not over. Several housing bills have been working their way through the legislative process.
HB24-1011 – Concerning Mortgage Servicers - This bill is sponsored by Representative Brown and Senator Cutter. The bill requires a mortgage servicer to disclose certain information to a borrower concerning the disbursement of insurance proceeds to the borrower in the event that a residential property that is subject to a mortgage is damaged or destroyed and an insurance company pays a claim associated with such damage or destruction. CBA worked with the bill sponsor to amend the bill in the House to bring the requirements for disbursements into alignment with Fannie Mae, Freddie Mac and Federal Home Loan Board requirements. The bill was just amended in the Senate to meet requirements for affordable housing projects. This is an amendment that CHFA requested. The amendment did not impact banking business.
HB24-1098 - Concerning Just Cause Eviction - With certain exceptions, the bill prohibits a landlord from evicting a residential tenant unless the landlord has cause for eviction. The bill was amended in the House so that it was less problematic, but this bill has never been ideal. The bill was further amended in Senate Local Government Committee. The bill was debated for 7 hours on the Senate floor. Several amendments were added that improved the legislation. Just cause eviction will never be an ideal policy for Colorado. Just cause to evict includes demolition or conversion of the residential premises; substantial repairs or renovations to the residential premises; occupancy assumed by the landlord or a family member of the landlord; withdrawal of the residential premises from the rental market for the purpose of selling the residential premises; a tenant refuses to sign a new lease with reasonable terms; and a tenant has a history of nonpayment of rent. CBA monitored the legislation once it moved to the Senate.
HB24-1152 Concerning Increasing the # of Accessory Dwelling Units - This bill is sponsored by Representative Amabile and Senator Mullica. This is legislation that is supported by the governor’s office and, in fact, Governor Polis mentioned ADUs in his State of the State. The legislation creates a series of requirements related to accessory dwelling units. The bill establishes unique requirements for subject jurisdictions and for qualifying as an accessory dwelling unit supportive jurisdiction. Local jurisdictions are opposed to the legislation as it undermines local control. The bill passed House committee and is waiting for a hearing in House Appropriations. Negotiations on amendments continue. CBA is monitoring this legislation.
HB24-1175 Concerning Right of First Refusal/Right of First Offer - This bill is once again brought by Representative Boesenecker to give local governments the opportunity to bid multi-family properties that have a bona fide offer for purchase. The bill, this year, is focused on affordable housing properties. Working with the bill sponsor, CBA has secured several amendments to improve a less than ideal piece of legislation. There are other stakeholders seeking amendments as well. The bill has been held for floor debate in the house for almost a month. Since this is budget week in the house and a short work week for legislators, I don’t anticipate this bill will be debated for at least another week. Time is running out on the legislative calendar.
HB24-1259 Concerning Price Gouging in Rent in a Declared Disaster - The bill prohibits price gouging in the provision of housing during a declared disaster. The issue with this bill is that it places rent price gouging as a deceptive trade practice, and places a 2-year moratorium on rent increases once there is a disaster declaration. CBA has tried to work with the bill sponsors on amendments. We were able to obtain one amendment on the calculation of a rent increase, but the sponsors would not work with us on removing the penalties as a deceptive trade practice or shortening the time frames. This will become a floor fight in the Senate.
SB24-094 Concerning Safe Housing for Residential Tenants - This bill is sponsored by Senator Julie Gonzales and Representative Mandy Lindsay. The bill modifies existing warranty of habitability laws by clarifying actions that constitute a breach of the warranty of habitability and procedures for both landlords and tenants when a warranty of habitability claim is alleged by the tenant. This bill passed the Senate and is now in the House. During Senate debate, the most compelling argument I heard in opposition to this bill was “this is a 47-page bill that could be accomplished in 2 pages”. That is the issue with this legislation. It is cumbersome and confusing. It will be difficult for landlords to comply. There is no recognition or relief for landlords when a contractor fails to show to remediate a problem at a rental or a contractor abandons work. There is no accommodation in the legislation for supply chain issues. CBA is opposed to this legislation. The bill will be heard April 2, 2024, in the House Local Government Committee.
There are a couple housing tax credit bills that have passed committee and are now awaiting a hearing in Appropriations. There are limited budget dollars available for programs this year so it will be interesting to see how the legislature prioritizes dollars to programs.
HB24-1125 Tax Credit for Commercial Building Conversion - The bill creates a new refundable tax credit to be claimed in tax years commencing on or after January 1, 2026, and before January 1, 2036. The credit may be claimed for certain costs related to the conversion of a commercial structure to a residential structure. This is a pilot program funded with $5 million. As a new tax credit and a small pilot program, I am not optimistic it will make it out of House Appropriations.
HB24-1316 Concerning the Middle-Income Housing Tax Credit - The bill creates a pilot program for an income tax credit for owners of qualified housing developments focused on rental housing for middle-income individuals and families. This is a pilot program developed by CHFA. CBA is pleased to support the legislation. The bill has broad support.
A Final Thought - This coming Monday is April 1st - April Fools' Day. Personally, I think there is enough hi-jinx at the Capitol without adding a day of tom foolery! But the holiday does have an interesting history. Did you know in the United Kingdom tricks can only be played in the morning? If you play a trick after 12pm, the joke is on you! In Greece, if it rains on April Fools' Day, the water is said to have healing powers. And, if one day isn’t enough for you, head to Scotland or Portugal where they celebrate April Fools' Day for TWO days. Speaking of Portugal, people there celebrate by throwing flour at one another. Combine the rain in Greece and the flour in Portugal and you have a nice flatbread or biscuits. So there's that. ◼
Alison Morgan, Director of State Government Relations |
