CLLC Members we need your help!
As Colorado housing prices continue to rise, rent control is gaining in popularity as a way for government to manage these rising prices. Colorado has a long-standing statutory prohibition on rent control, enacted by the legislature in 1981 (CRS 38-12-301) prohibiting Colorado’s cities and counties from imposing rent controls on private properties.
Colorado’s long and clear stand against rent control was reaffirmed again during the last legislative session in HB 21-1117 on inclusionary zoning stating:
“Nothing in this subsection (1)(e.5) is construed to authorize a local government to adopt or enforce any ordinance or regulation that that would have the effect of controlling rent on any existing private residential housing unit in violation of Section 38-12-301).”
Fast forward to today:
From the Wall Street Journal, March 13, 2022:
“Lawmakers across the U.S. are looking to enact rent control, reviving measures largely shunned in recent years in an effort to curb the surge in home rental prices throughout the country. These proposals, which would generally allow landlords to boost monthly rents by no more than 2% to 10%, are on the legislative agenda in more than a dozen states. Rental prices are up about 18% on average over the past two years, according to real-estate broker Redfin Corp. , hitting record levels across the U.S. Large cities like Boston, affluent suburbs like Montclair, N.J., lower-income mobile-home communities in Colorado and fast-growing metros in Florida are among the places now considering rent control.”. [emphasis added.]
Just days ago, HB 22-1287 was introduced in the Colorado legislature and it includes a section allowing for rent controls for Colorado’s mobile home parks. While the legislation is focused on mobile homes, this is just one more step toward opening the door to Colorado rent controls.
Here are the legislation linked below with the relevant section noted from Page 10:
Nonpayment of rent – notice required for rent increase – limitation on rent increases – repeal. (4) (a) EXCEPT AS PROVIDED IN SUBSECTION (4)(c) OF THIS SECTION, A LANDLORD SHALL NOT INCREASE RENT ON A MOBILE HOME LOT BY AN AMOUNT THAT EXCEEDS THE RENT INCREASE CAP CALCULATED BY THE DEPARTMENT OF LOCAL AFFAIRS IN ACCORDANCE WITH SUBSECTION (4)(b) OF THIS SECTION. 26 (b) (I) (A) WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF THIS SUBSECTION (4), THE DEPARTMENT OF LOCAL AFFAIRS SHALL CALCULATE AND PUBLISH ON ITS WEBSITE THE RENT INCREASE CAP FOR RENT INCREASES TAKING EFFECT IN THE PERIOD BEGINNING ON THE DATE THE CAP IS PUBLISHED THROUGH DECEMBER 31, 2022. 4 (B) THIS SUBSECTION (4)(b)(I) IS REPEALED, EFFECTIVE JUNE 30, 2023. (II) ON OR BEFORE OCTOBER 1 OF EACH YEAR, THE DEPARTMENT OF LOCAL AFFAIRS SHALL CALCULATE AND PUBLISH ON ITS WEBSITE THE RENT INCREASE CAP FOR RENT INCREASES TAKING EFFECT IN THE PERIOD BEGINNING JANUARY 1 OF THE FOLLOWING CALENDAR YEAR AND FOR THE TWELVE MONTHS THEREAFTER. (III) THE RENT INCREASE CAP IS THE GREATER OF: (A) THE AVERAGE ANNUAL PERCENTAGE CHANGE FOR THE PREVIOUS TWELVE MONTHS AT THE TIME OF THE CALCULATION IN THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS AND ALL URBAN CONSUMERS, OR ITS SUCCESSOR INDEX; OR (B) THREE PERCENTAGE POINTS OF THE CURRENT RENT. (c) THIS SUBSECTION (4) DOES NOT APPLY TO A RESIDENT-OWNED COMMUNITY OR TO A LANDLORD THAT IS A LOCAL GOVERNMENT, TRIBAL 20 GOVERNMENT, HOUSING AUTHORITY, NONPROFIT WITH EXPERTISE RELATED TO HOUSING, OR THE STATE OR AN AGENCY OF THE STATE. (5) A LANDLORD SHALL NOT INCREASE RENT ON A MOBILE HOME PARK LOT IF THE PARK: (a) DOES NOT HAVE A CURRENT, ACTIVE REGISTRATION FILED WITH THE DIVISION OF HOUSING IN ACCORDANCE WITH SECTION 38-12-1106; (b) HAS ANY UNPAID PENALTIES OWED TO THE DIVISION OF HOUSING; OR -11- HB22-1287 1 (c) HAS NOT FULLY COMPLIED WITH ANY FINAL AGENCY ORDER ISSUED BY THE DIVISION OF HOUSING. (6) A NOTICE OF A RENT INCREASE ISSUED IN VIOLATION OF THIS SECTION IS INVALID AND HAS NO FORCE AND EFFECT DAYS BEFORE THE EFFECTIVE DATE OF THIS SUBSECTION (6) IS INVALID AND HAS NO FORCE AND EFFECT UNLESS THE INCREASE IS COMPLIANT WITH THIS SECTION.
You may find more information about the bill from the link provided here
This legislation will be considered in less than ten days: Wednesday Mach 23rd in the House Local Government Committee.
Suggested Email in Opposition
You can copy all of these emails, create one email and place these addresses in the BCC of your email so you only have to send one.
A suggested email (or compose your own)
I am a (“professional Property Manager” or “Colorado Landlord”) and member of the CLLC and dedicated to Colorado housing. I have enjoyed providing housing to tenants for many years. This is not only a source of income for my family but also we take great pride in being a smaller housing provider for individuals; and families in our great State!
Unfortunately, I am writing as a concerned citizen and voter on HB 22-1287. Since 1981, Colorado has stood firmly against the policy of rent control as not only a regulatory intrusion into the efficient operation of the housing market, but also what will become a floor on housing prices for some renters leading to more draconian increases on others. One need only look as far as New York City to see how these policies, while protecting some from higher-rents, lead to ever increasing costs for our cities. With Colorado’s rising housing prices, we can ill afford such a failed affordability experiment here. I would respectfully urge a NO vote on HB 22-1287 If you would like to discuss further, please email me or call me.
Please reach out to the Legislators As Soon As Possible!
Thank you for your support of the CLLC and our profession.