Capitol Connection – May 28, 2021

Legislative Advocacy this week at the State Capitol

Amendments Increase Requirements for Disclosure and Transparency of Fees in HOAs

House Bill 1229 increases requirements for disclosure and transparency in the operations of HOAs in Colorado common interest ownership communities. The bill requires HOAs to maintain a list of all fees, assessments, and expenses that it charges in connection with the purchase or sale of a unit, including transfer fees, record change fees, and the charge for status letter and other information currently required to be disclosed annually under existing law to property owners. 

Additionally, amendments last Saturday and this week for HB21-1229 expands access to xeriscaping and installation of renewable energy generation devices and exempts timeshares (who are also regulated by CCIOA) from the legislation. 

LPC Position: Amend

Bill Status: The bill passed the Senate State, Veterans and Military Affairs Committee and moves to the Senate Floor for further discussion.

Temporary Authority to Decrease or Waive Late Property Tax Interest Payments

Senate Bill 279 allows a board of county commissioners or a city council to reduce or waive delinquent property tax interest payments between June 16 and September 30, 2021. As communities are still feeling the impacts of COVID-19 and recovering at different rates, this bill mirrors HB20-1421 and provides temporary relief in interest payments. It’s optional not mandatory, so Counties can decide if this is a good idea for their local communities that could benefit taxpayers and businesses continuing to struggle to catch up from the pandemic. 

LPC Position: Monitor

Bill Status: The bill passed the Senate and now moves to the House for their consideration.

State Transportation Bill Continues Forward with Amendments

Senate Bill 260 is a very robust transportation funding bill that would raise nearly $5.4 billion to provide a sustainable funding source to fix and expand highways, increasing transit and other alternatives to driving and quickly accelerate the use of clean-energy vehicles.

Over the next 11 fiscal years about $3.8 billion would come from new road user fees and $1.6 billion would come from the General Fund transfers and recent state and federal stimulus funds.

Here’s a breakdown of the fees starting in July 2022:

• Gasoline purchases ($1.6 billion): A “road usage” fee would begin at 2 cents per gallon, ratcheting up a cent per year to 8 cents in mid-2028, with inflation adjustment beginning three years later. It would be on top of the state’s existing 22-cents-per-gallon gas tax. Analysts estimated the new fee would cost the average driver $28 in the first year and more as it rises.
• Retail deliveries ($1.2 billion): A 27-cent delivery fee would apply to orders – including those made online – for goods and most other items subject to sales tax, including restaurant food.
• Diesel fuel purchases ($401 million): This fee would follow the same schedule as the gas fee, starting at 2 cents and rising to 8 cents by mid-2028.
• Electric vehicle registration fees ($322 million): The state’s existing $50 registration fee for plug-in electric vehicles would be pegged to inflation. New annual EV fees would be phased in on a 10-year schedule to offset owners’ tax savings by not buying gas. For plug-in hybrids, the fee would start at $3 and rise to $27, and for full-electric vehicles, it would start at $4 and rise to $96.
• Ride-hailing fees ($203 million): A 30-cent fee would apply to prearranged rides provided by services such as Uber and Lyft, with a discounted 15-cent fee if the ride is in a zero-emissions vehicle. The fee doesn’t apply to taxis, but the bill orders the state to conduct a “parity study” for that industry.
• Car rentals ($92 million): An existing $2 per day fee for car rentals up to 30 days would be indexed to inflation, and the fee would newly apply to car-share rentals lasting 24 hours or longer.

Additionally, the bill includes short-term reductions of vehicle registration fees for all drivers of $11.10 in 2022 and $5.55 in 2023, with those fees reverting back to normal in 2024.

Because the bill sets up a variety of new enterprises that do not raise more than $100 million in the first five years it avoids the limitations of voters approving new fees under Proposition 117 on last November’s ballot. These three new enterprises that would convert fleets to electric, support clean transit, and increase the communities’ use of clean vehicles could subject the legislation to litigation around its constitutionality if the bill passes the general assembly.

Finally, other provisions of the bill speak to the spending allocations including highway, bridge and tunnel projects, work towards part of CDOT’s 10-year priority project list, paying off debts of previous state obligations, allow regional organizations to act as regional transportation authorities, and require RTA’s and the state to consider air pollution and traffic volume effects on communities near transportation projects.

LPC Position: Amend

Bill Status: The bill passed the Senate and House committees and is being debated on the House floor today.

Bill to Protect Personal Data of Consumers Advances

Senate Bill 190 creates the Colorado Privacy Act within the Colorado Consumer Protection Act and holds companies’ responsible to prevent unauthorized disclosure of sensitive and personal information of consumers and gives consumers meaningful ways to control the use of their own data in business transactions in requests to controllers. The bill gives the Attorney General and district attorneys the power to enforce any violations. SB21-190 empowers to consumers with rights to opt out of the processing of their personal data; confirm how their information is processed, and allow them the ability to correct inaccurate data or delete their data and have the option to get portability of their data.

CAR worked to ensure the bill didn’t reverse or interfere with the consumer data usage protections put in place by the recently enacted remote notarization SB20-096 law in 2020.

LPC Position: Amend

Bill Status: The bill passed the Senate and now moves to the House for their consideration.

Housing Industry News & Upcoming Events

State Auditor Needs Your Feedback – Colorado Capital Gains Deduction

Colorado law requires the Office of the State Auditor to evaluate the state’s tax credits and deductions on a rolling 5-year basis by conducting research and obtaining feedback from stakeholders affected by the tax measure. One of the items they are currently evaluating is the Colorado Source Capital Gains Deduction [Section 39-22-518, C.R.S.]. This research is unrelated to House Bill 1311, currently under consideration in the General Assembly. 

Please reach out to Jacquelyn Combellick at [email protected] by Tuesday, June 1 if you have taken this deduction in recent years and would be willing to have a brief phone or email conversation about it. The Office of the State Auditor is looking for information such as whether you’ve taken the deduction as an individual taxpayer, a business taxpayer, or both; whether the investment(s) in question were commercial real estate, residential real estate, or tangible personal property; and how the deduction has affected you. Any information you provide that is included in the final report will be aggregated with other stakeholder feedback and kept completely anonymous. 

Starting Next Week: Virtual Hill Visits with Colorado Members of Congress

Virtual Hill Meetings are a great opportunity for Colorado REALTORS® to educate Colorado Members of Congress on policy priorities important to REALTORS®, provide local market statistics, and build relationships with Members of Congress and their staff. This year, CAR is hosting a series of virtual hill visits throughout the month of June.

Invitations for meetings with Colorado’s U.S. Representatives were sent to Colorado REALTORS® based on the address associated with your NRDS ID. CAR Members must be a constituent of the congressional house district to attend. Virtual meetings with Colorado’s U.S. Senators are open to all CAR members. Check your inbox for more information.Questions? Please contact [email protected].

Join Us for the Virtual Fair Housing Event on June 16

As REALTORS®, it is our duty to help every consumer pursue their dream of homeownership and to build thriving communities.

Please join CAR for this free opportunity to learn about Fair Housing:

• The History
• A REALTORS® Role
• Solutions for Teams and Individual Agents
• Support and Resources to go forward with the commitment that REALTORS® support Housing for All

When: June 16 at 9:30 a.m. – noon
Cost: Free
Speakers, more info and registration: Click Here

NAR Releases Report on Repurposing Vacant Commercial Property into Multifamily Housing

One adaptive reuse of vacant hotels/motels can include multifamily housing. In 2020, the hotel occupancy rate plunged to 37% as the COVID-19 pandemic severely cut leisure and business travel and events. Even as demand for lodging begins to recover as Americans begin to travel again, there is not enough affordable housing throughout many states to meet the demand and some of these properties could be an opportunity to take one downside from the pandemic to spur a brighter housing future of additional housing units.

Recognizing that the conversion of vacant hotels/motels is a win-win solution to address the underutilization of hotels/motels and help alleviate the housing shortage, the Commercial Real Estate Research Advisory Board recommended that NAR undertake research on the conversion of vacant hotels/motels into multifamily housing to draw some insights and best practices. This NAR report is the result.

Denver Metro Area Will Get a New Area Code in 2022

Phone numbers starting with 303 and 720 are expected to run out by April 2022, and when that happens those requesting new telephone service or would like to move their service could be assigned the new area code of 983. This new change comes from the explosion of growth the state has seen over the years. The state’s population has grown by 1.5 million people over the last two decades. Colorado hasn’t had a new area code since 1998, when the 720 area code was introduced. Before then, 303 was the only area code available to the entire state since 1947.

In Case You Missed It

American Rescue Act Brings $3.8 Billion to Colorado

On Monday, Governor Jared Polis and Democratic legislative and congressional leadership announced how the state plans to use federal funds from the American Rescue Plan Act to enable the Colorado Comeback. 

• $1 billion will go toward fortifying the state budget and maintaining fiscal integrity
• $300 million will go towards Colorado’s ongoing response to the COVID pandemic
• Between $400-$550 million will go towards affordable housing and homeownership efforts
• Between $400-$550 million towards mental and behavioral health programs 
• Approximately $200 million towards workforce development and education 
• Approximately $817 million will be for economic recovery and relief
• $404- $414 million for transportation and infrastructure, and parks and agriculture

The federal stimulus will enhance Colorado’s work to make the state’s economy stronger. Through the Colorado Recovery Plan unveiled in March, the state has already invested roughly $800 million of state funds to help Coloradans recover faster. State stimulus funds are focused on strengthening small businesses, revitalizing Colorado’s infrastructure, supporting families, investing in rural communities and developing the state’s workforce.

Read the full press release from the Governor’s Office here.

RPAC Announcements

Have You Signed Up for RPAC BINGO?

June kicks off RPAC Month and we have a fun way for you to celebrate! Purchase a BINGO card for $25 to support RPAC, get out in the community, and connect with members, new and old across the state! Purchase a card, or five today for a chance to win gift cards, or even a night stay at the Broadmoor hotel for 100 year! Click here to purchase a card today!

1 Card = $25 OR 5 Cards for $100

As we enter RPAC month it’s important to recognize all that work that REALTORS® do for our industry. We are hard at work every day protecting your interests at the State Capitol. An investment to RPAC is an investment in real estate.

IF REAL ESTATE IS YOUR PROFESSION, POLITICS IS YOUR BUSINESS