Capitol Connection – February 16, 2018
House Bill 18-1227: Real Estate Commission Flexibility in License Period
HB18-1227, sponsored by Representative Herod (D-Denver), Representative Wist (R-Centennial), and Senator Cooke (R-Greeley), is a clean-up bill to the real estate sunset from 2017. In the sunset bill, the expiration date of real estate licenses changed from an anniversary date to a calendar renewal on December 31st of the third year after issuance. However, the legislative legal services committee had a few concerns about a few of the rules promulgated to effect this change and therefore a clean-up bill this year will address those concerns to ensure that real estate licenses can be renewed on the calendar date instead of the anniversary date. There was also some confusion about the continuing education requirements for the transition period when licensees are moved to the new calendar renewal date. The Legislative Policy Committee (LPC) and the Division of Real Estate supports this legislation.
This bill was heard in the House Business Affairs and Labor Committee yesterday where they also discussed Amendment L001. Before Amendment L001, two annual update courses and a transition course were required. The amendment removes the transition course requirement but does not change the amount of continuing education for licensees. CAR and the Division of Real Estate are both supportive of this amendment because, like broadband, several of our rural members and local boards do not have the same access to a quality transition course. Some do not have offerings because only one type of education service provider can offer the course and this would mean they would have to travel long distances to meet their requirements. Additionally, depending on the timing of their renewal date during that transition year, some may be closer to an annual update course offering and the transition course would not make sense in relation to timing. Yesterday, the bill as amended unanimously passed out of committee and it will now move to the full House of Representatives for their consideration.
House Bill 18-1195: Homeownership Nonprofit Development Tax Credit
HB18-1195, sponsored by Representative Pabon (D-Denver) and Senator Tate (R-Centennial), provides a state income tax credit for contributions to nonprofit organizations engaged in the new construction of affordable housing for homeownership of at least 120% Average Median Income. The donation by an individual or organization must be tied to an actual project that is planned and the amount of the credit allowed by the bill is fifty percent of the amount of the money or the value of the securities donated to the eligible organization. The credit is capped at $250,000 per taxpayer in one income tax year, but if the credit is not fully used in the first year, it can be carried forward for five successive tax filing years. The total amount of the credits cannot exceed more than $20 million dollars over nine years starting in the 2020 tax year.
Today, the LPC voted to support this legislation because this legislation will incentivize new construction of affordable housing that all areas of Colorado need given the dearth of affordable inventory statewide. These projects will be developed with an attainable price for homeowners in the low-income and workforce housing level. CAR is happy to support good public policy solutions that will start to address the continuing problem of affordable housing.
CAR is an affordable housing advocate. We have supported a host of legislative initiatives designed to create more affordable housing options such as the creation and continuation of the state Low Income Housing Tax Credit (LIHTC) program. In 2016, CAR helped pass legislation to create First Time Homebuyer Savings Accounts to help Coloradans save for the purchase of their first home. HB18-1195 is another promising avenue to support homeownership for all Coloradans.
Senate Bill 18-010: Residential Lease Copy And Rent Receipt
SB18-010, sponsored by Senator Martinez Humenik (R-Thornton), Senator Williams (D-Denver), and Representative Exum (D-Colorado Springs), requires that a landlord provide a tenant with a copy of a signed rental agreement within seven days. This bill also requires a landlord to provide a receipt for rent payments. The landlord may provide these documents electronically unless the tenant specifically requests a paper copy.
The LPC supports this legislation because it is a good business practice to adopt. The practice gives a signer of a contract a copy of their agreement and a paying customer a record of their financial transaction. Moreover, many landlords are already providing this service already, so it is not an unduly burdensome requirement for businesses. SB18-010 passed out of the Senate this morning and will now move on to the House of Representatives for their consideration.
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