Capitol Connection – February 12, 2024
NEW Bill Coming Soon on Short-Term Rentals (STRs)
We expect a new bill on short-term rentals (STRs) to be introduced this week. The Colorado Association of REALTORS (CAR) worked proactively with the bill sponsors, Rep. Bird and Sen. Mullica, to exempt a property owner’s primary and secondary residence from being defined as a “commercial short-term rental unit” and assessed at a significantly higher commercial lodging rate. This bill allows small investors to use one or both properties as a short-term rental at the residential property tax rate while allowing those that are running a business of STRs to be charged at the higher lodging rate. A number of Coloradans aspire to own a second home elsewhere in our state or are looking to purchase property for retirement. A number of these property owners who offer STRs to offset a mortgage or increased housing costs, while others may rent their property when not in use by the owners. Colorado should not discourage this level of home ownership or affect retirement plans.
This bill runs counter to Senate Bill 33 that simply puts every property owner who uses their property for 90 or more nights as a STR on the same level as major hotel brands by assessing all of them at the commercial lodging rate for property taxes.
Bill Updates
(Amend) HB24-1098 Cause Required for Eviction of Residential Tenant
Sponsors: Rep. Mabrey, Majority Leader Duran, Assistant Majority Leader Gonzales, and Sen. Hinrichsen
HB 1098 will be heard in the House “Transportation, Housing and Local Government” Committee on Wednesday, February 14th at 1:30 PM MT. CAR has requested multiple amendments and expects the committee to vote to include amendments that will significantly change the bill. One of CAR’s most significant concerns and changes requested was the elimination of the requirement for housing providers to provide two or three months of relocation assistance, depending on the circumstance.
HB1098 would require a “just cause” in order to evict a tenant. This proposed legislation would restrict the housing provider to keep a tenant in the property unless the situation met a “no-fault eviction”. Landlords could still evict tenants with cause based on current law.
(Oppose) HB24-1014 “Deceptive Trade Practice Significant Impact Standard”
Sponsors: Rep. Weissman, Rep. Mabrey, and Assistant Majority Leader Sen. Gonzales
HB 104 would remove the well-established “significant public impact” standard for a Colorado Consumer Protection Act (CCPA) claim to allow a single claimant standing for a CCPA claim. This would likely lead to a significant increase in the number of CCPA claims, exposing REALTORS to lawsuits without E&O insurance due to the deceptive trade practice of CCPA claims.
CAR General Counsel Scott Peterson testified in opposition to HB 1014 on February 7th during the House Judiciary Committee hearing on it. The increased volume of litigation would result in more difficulty for settlements of disputes, significant impact on insurance claims and more costs for Colorado businesses. HB 1014 will lead to increased costs for Colorado consumers on a spectrum of goods and services, and perhaps most significantly… housing.
Despite objections and concerns from a number of industries, HB 1014 passed the House on 3rd reading on February 12th mostly along party lines with a few House Democrats joining Republicans in voting against the bill.
Testimony Training Recap
CAR GA Staff held testimony training on Monday, January 29th. We had a great turn out of approximately 160 attendees. The training touched on the process of signing up to testify in the legislature, how to prepare your remarks and why it’s important. As we are currently experiencing, we are in another heavy housing focused legislative session and testifying as a unified voice on housing specific bills can help CAR amplify our message. If you weren’t able to attend and are interested in learning how to testify on your own behalf, please contact [email protected] for the recording to learn more.
“Don’t Miss Out on the Action – Sign up for REALTOR® Party Mobile Alerts”
Text REALTORS to 30644
REALTOR® Party Mobile Alerts offers REALTOR® Associations and REALTORS® a way to stay connected directly from their cell phone or tablet. When a national or state legislative call for action is launched, subscribers get a short text message containing information to take action. Stay in the “know” as housing legislation heats up at the state capitol and nationally this year.
*If you sign up for RPMA and receive a Call For Action, taking action does NOT subscribe your information to a listserv.* RPMA and CFA are strictly to inform members of legislation that the National Association of REALTORS® or Colorado Association of REALTORS® needs grassroots engagement.
RPAC
*Needed* We are looking for auction items for our Spring Summit RPAC reception, if you have any fun experiences you can donate to RPAC, please reach out to[email protected].
SAVE THE DATE – RPAC Reception at Spring Summit Tuesday, April 9th at 4:15pm -6:15pm. We will have a live auction with some great prizes. You don’t want to miss this opportunity to get your investments in for RPAC! Register for the RPAC Reception here.
Join us from April 8-10, 2024, at the Hyatt Regency in the Denver Tech Center for the CAR Spring Summit, a conference designed for REALTORS® like you who are seeking to broaden your industry engagement. This summit combines networking, innovation, and professional development.
Events
Commission on Property Tax Community Conversations – Give your Needed Input!
The Commission on Property Tax is required to study and make recommendations for a property tax structure. The Commission wants to hear from the public throughout the state and is conducting meetings starting tomorrow in Grand Junction. See below for more details and how to sign up to attend.
If there are any questions or concerns related to Capitol Connection content, please email us at [email protected]
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Process for Bill Positions for the Legislative Policy Committee (LPC)
CAR has a member-driven process in regards to bill positions on legislation. CAR’s Legislative Policy Committee (LPC), is the official decision-making body on statewide legislation affecting REALTORS® across Colorado. LPC (voting) and Subcommittee (non-voting) members review legislation each week at five standing LPC Subcommittee hearings to make bill position recommendations for full LPC meetings occurring biweekly throughout session. If there’s a bill you’re hearing or reading about and curious as to why CAR might not have a position yet, it could be due to timing of bill introductions and where we are at in the process. Here’s a dynamic link on the CAR website under “Political Advocacy” to know about CAR bill positions in 2024: CAR 2024 Bill Positions.
NAR / ICYMI
More Than 85% of Metro Areas Registered Home Price Increases in Fourth Quarter of 2023
More than 85% of metro markets (189 out of 221) registered home price increases in the fourth quarter of 2023 as the 30-year fixed mortgage rate dropped from 7.79% to 6.61%, according to the National Association of REALTORS®’ latest quarterly report. Fifteen percent of the 221 tracked metro areas experienced double-digit price gains over the same period, up from 11% in the third quarter.
Change at the top of NAR’s volunteer ranks has been accompanied by NAR staff leadership changes. In November, the 2023 Leadership Team announced the appointment of Nykia Wright as interim CEO. Wright brings a breadth of executive leadership and strategic advisory experience to NAR. Since joining the association, she has been on the front lines defending NAR’s mission, driving key priorities with critical stakeholders, and partnering with the Leadership Team, members and staff to improve the association’s culture.
“2023 was a year of transition for our association and industry. Despite the challenges, NAR members and staff remained steadfast in our shared commitment to helping people across the country realize the dream of homeownership.”