Capitol Connection – February 14, 2023
Legislative Advocacy this Week at the State Capitol
Business at the Capitol picked up last week with multiple REALTOR® watched bills going through committees. Colorado Association of REALTORS® testified on two bills last week; Portable Screening Reports (HB23-1099) andProhibited Agreements in Rental Leases (HB23-1095). CAR testified in opposition of HB23-1099 and testified as an amended position for HB23-1095, both bills passed through house committees but CAR will continue to advocate REALTOR® positions. CAR successfully held our REALTOR® Day Legislator Breakfast, we heard from a panel of multiple legislators who talked housing policy and legislation.
Bill Updates
HB23-1120 – Eviction Protections for Residential Tenants – Sponsored by Rep. Joseph & Rep. Ortiz, Sen. Fields and Sen. Winter
HB 1120 would require landlords and tenants to participate in mandatory mediation prior to initiating an eviction process if the tenant receives financial assistance. If the tenant did not disclose their financial assistance status, then mediation is not a requirement. If there is failure to comply with mediation, it creates an affirmative defense. This proposed legislation also prohibits a law enforcement officer from executing a writ of restitution against a residential tenant for at least 30 days after the entry of judgement. Written rental agreements must include that the residential tenant who receives financial assistance has a right to mediation prior to a landlord filing an eviction and prohibits a written rental agreement from including a waiver of mandatory mediation. However, the tenant can voluntarily waive the right for mandatory mediation.
Colorado Association of REALTORS® staff have been able to amend this bill to exclude landlords with 5 or fewer properties and to exclude substantial violations. This bill, unamended, would prolong the eviction process harming housing providers’ ability to operate and maintain their rental properties. This legislation will be heard on Tuesday, February 14th at 1:30 PM in House Judiciary Committee.
HB23-1171 – Just Cause Requirement Eviction of Residential Tenant– Sponsored by Rep. Mabrey and Rep. Gonzales-Gutierrez and Sen. Gonzales.
HB23-1171 would prohibit landlords from evicting residential tenants unless there is justification of cause. Allowable reasons for eviction include: failure of payment, tenant commits substantial violations and does not remedy within 10 days after the landlord provides the tenant with written notice, conditions exist for no-fault evictions, tenant refuses to allow the landlord to enter the property after the landlord has provided written notice at least 48 hours in advance, tenant refuses to sign a new rental agreement with terms that are substantially identical to the tenant’s current rental agreement, landlord has to offer the new rental agreement at least 30 days before the expiration of the current rental agreement. If the landlord proceeds with no fault eviction, the landlord must provide relocation assistance to the tenant for 2 months’ rent plus the amount of one additional month if there is an individual who is less than 18 years of age or at least 60 years of age; low income, or an individual with a disability.
This legislation was introduced last week and will go before the LPC for an official position and has not yet been calendared for a legislative committee.
In Case You Missed It
Nearly Nine in 10 Metro Areas Posted Home Price Gains in the Fourth Quarter of 2022
Approximately nine out of 10 metro markets registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7%, according to the National Association of Realtors® latest quarterly report. Eighteen percent of the 186 tracked metro areas registered double-digit price increases over the same time period, down from 46% in the third quarter of 2022.
Compared to a year ago, the national median single-family existing-home price rose 4.0% to $378,700. Year-over-year price appreciation decelerated when compared to the previous quarter’s 8.6%.
“A slowdown in home prices is underway and welcomed, particularly as the typical home price has risen 42% in the past three years,” NAR Chief Economist Lawrence Yun said, noting these costs increases have far surpassed wage increases and consumer price inflation of 15% and 14%, respectively, since 2019. “Far fewer metro markets experienced double-digit price gains in the latest quarter.”
RPAC Announcements
Thank you to everyone who came out to the RPAC Reception at Realtor Day – we raised over $53,000 for RPAC!
“We like to Paddy”
Join us on March 15th at 4pm for a virtual cocktail class hosted by Nick Bokone and CAR’s Government Affairs team. Nick will be mixing up a couple St. Patrick’s Day cocktails, while we meet the new members of our Government Affair’s team, Lauren Cecil, Director of External Coalitions and Brian Tanner, Vice President of Public Policy. Click the link below to purchase your ticket!