House tenant protection bills advance to an uphill battle in the Senate

By Robert Davis

Lawmakers in the Colorado House of Representatives have introduced several bills that seek to strengthen legal protections for renters. But the bills face an uphill battle, now that they are moving on to the Senate.

Photo: Unsplash/visuals

Colorado has historically been a landlord-friendly state because landlords can set their own notice requirements for entering their property and there are few restrictions on evicting tenants, and there are no rent control laws on the books. Lawmakers are looking to provide more protections for renters as about 52% of Colorado renters are paying more than the recommended 30% of their income on rent and utilities,  according to the National Low Income Housing Coalition.  

Rent control

One bill that lawmakers are hoping to pass would repeal Colorado statutes that prohibit local governments from adopting rent control measures. House Bill 23-1115 passed the House with almost two-thirds of the body supporting it but is now being heard by a chamber where Democrats have a narrower majority.

Governor Jared Polis and some members of the Democrat caucus have expressed skepticism about the bill.

Senate President Steve Fenberg, D-Boulder, told Colorado Public Radio on March 15 that he wanted to hear from local community members as well as “private developers, nonprofit homebuilders, people who are trying to solve the affordable housing crisis in Colorado and how this could impact their work.” Fenberg asked that a similar bill be laid over in 2019, which effectively killed its chances of being passed the Denver Post reported.

Sen. Dylan Roberts, D-Eagle, also told CPR that he is wary of passing any bill that could “disincentivize building and disincentivize people from [offering housing in] the long-term rental market.”

HB 23-1115 is being sponsored by Democrat Reps. Javier Mabry of Denver and Elizabeth Velasco of Glenwood Springs, and Sen. Robert Rodriguez of Denver. During a hearing in the House Transportation, Housing & Local Government Committee on February 15, Velasco described the bill as one that will help essential workers like firefighters and teachers afford to live near their jobs.

“People need relief immediately, and far more people need relief than we currently have plans to help,” Velasco said.

Just-cause evictions

Another bill heading to the Senate, House Bill 23-1171, would require landlords to show “just cause” before evicting a tenant. The bill defines “just cause” as when tenants fail to pay rent or allow a landlord entry to their property after receiving notice. Landlords may also have to pay their tenants at least two months’ rent to help them relocate in instances where major building renovations are needed, according to the bill.

Rep. Serena Gonzales-Gutierrez, D-Denver, told the House Transportation, Housing & Local Government Committee on March 1 that the bill will establish clear guidelines regarding when tenants can be evicted, something that Colorado law currently lacks.

“Just-cause eviction legislation is the best way to prevent first-time homelessness, keep families housed, and put less pressure on the system,” Gonzales-Gutierrez told the committee.

However, the bill is almost certain to face full-throated Republican opposition. Michael Fields, president of Advance Colorado, a Republican think tank, described HB-1171 in a press release as a bill that “disregards private property rights and further drives up the regulatory cost of housing in Colorado.”

Right of first refusal

Democrats are also trying to make Colorado the first state to give local governments the ability to purchase multifamily properties before they hit the open market, also known as the “right of first refusal.”

However, House Bill 23-1190 does not apply to any “sale, transfer, or conveyance” of residential property made to family members, trusts, or their beneficiaries, or are pursuant to a claim of eminent domain, according to the bill’s text.

Rep. Andrew Boesenecker, D-Fort Collins, told Colorado Newsline that the bill will “level the playing field” for municipalities and counties to preserve affordable housing units before they are scooped up by developers or investors.

Opponents of the bill argue that the bill is overly broad and counter-productive to its intended goal of creating more affordable housing.

“This whole concept of stopping the sale so local governments can figure out if they might want to buy the property is problematic,” Andrew Hamrick, senior vice president of government affairs for the Apartment Association of Metro Denver, told Colorado Newsline. “No matter how you look at it … this is billions of dollars of theft from existing Colorado property owners to give it to local governments.”