3-2-1 Capitol Connection – March 20, 2025
3 Things to Know
Colorado American Dream Act. Yesterday, “Construction Defects & Middle Market Housing” (House Bill 1272) passed in committee with an overwhelming vote of 12-1, marking a significant step forward in expanding the availability of starter homes. The bill strikes an important balance between protections for homeowners and builders, introducing thoughtful reforms to construction litigation that can help reduce excessive costs and promote development.
CAR’s CEO, Tyrone Adams, testified on the bill highlighting the urgency of the housing crisis the bill seeks to address, sharing: “Skyrocketing prices and fierce competition among prospective buyers have made homeownership increasingly unattainable for many Coloradans. This crisis affects not only first-time homebuyers but permeates throughout our communities, impacting economic mobility, community stability, and the overall quality of life in our state.” He added, “The median net worth for renters stands at a mere $10,400, contrasting sharply with $400,000 for homeowners according to multiple reports.”
Beginning January 1, 2026, the bill would create the Multi-Family Construction Incentive Program. It introduces clear standards for construction defect claims, requires third party inspections, and sets reasonable mitigation efforts that protect homeowners without discouraging builders.
Member, Angela Hutton-Hall, eagerly shared support for the legislation, sharing: “This isn’t just about increasing the number of homes; it’s about giving more Coloradans the opportunity to achieve the kind of financial security and stability that homeownership offers.”
HB 1272 now moves to the House floor for a second reading/voice vote.
Preempting Local Government Anti-Growth Policies. CAR supports “Limitations on Local Anti-Growth Land Use Policies” (House Bill 1093). It is now headed to the Governor’s desk for executive approval. The bill preempts local governments from adopting any land use policies that explicitly limit the growth of the population, the number of development permits, or the number residential building permit applications. Amendments in the Senate ensure that residential densities and uses cannot decrease in urban areas identified by the U.S. Census Bureau and exempted land adjacent to or containing wildlife crossing structures as defined by the Colorado Division of Parks and Wildlife. Municipalities can seek judicial determinations of any proposed land use ordinance.
Removing Broker Liability in Disclosures.CAR Government Affairs staff testified to remove the bill’s requirement for sellers to provide a hard copy of metropolitan district website information to a buyer in“Requirements for Better Understanding Metropolitan Districts” (House Bill 1219). Current law requires a seller to provide the district’s website link to a buyer, but a hard copy requirement would expose brokers to civil liability if the seller fails to provide it at point of purchase. Securing this critical change to what is an otherwise good bill to strengthen resident engagement in these residential districts was necessary to begin the process of changing position. CAR’s Government Affairs team worked to ensure your business is not exposed to legal actions regarding this disclosure.
2 Things to Share
Disclosing Mold. “Increasing Public Awareness of Mold Health Effects” (House Bill 1202) creates a registration and licensing framework for entities that perform mold assessment and remediation services. The bill as originally introduced required a disclosure located in the contract to buy and sell real estate and in rental agreements with a warning statement, known history of mold (i.e. assessments, reports, mitigation, and remediation), and a CDPHE-approved information brochure outlining health impacts caused by mold. CAR Government Affairs staff testified in the House Energy & Environment Committee on March 13th, urging state lawmakers to remove the disclosure from the 20-page long, Real Estate Commission-approved contract to buy and sell, and requested all mold information be placed within the Seller’s Property Disclosure (SPD) where environmental issues can be listed. The SPD must include any reports by any mold assessment or remediation service. Amendments requested by industry partners ensured that mold records and reports can be summarized in rental agreements.
Protecting the Use of Identity Apps (i.e. Forewarn) By Fixing Artificial Intelligence Definitions. Last year, “Consumer Protections in Artificial Intelligence” (SB24 – 205) defined “consequential decisions” related to “housing” in such broad terms that REALTORS® could face serious penalties if they don’t disclose to a potential consumer or client that they used an identity verification system, such as Forewarn, related to showing or not showing a property. It has been our #1 priority in 2025 to ensure that REALTORS® can work in safe environments and use identity verification systems when potentially showing a property to a stranger. We are close to securing language that would protect this use and not expose REALTORS® to burdensome disclosure requirements or face steep penalties. This language should appear in an Artificial Intelligence bill that is still being drafted and has not been introduced. There are a host of other issues related to AI developers that are taking time to resolve. Stay tuned.
1 Thing to Do
“Stand Up” for RPAC. There will be an RPAC Reception at 4:30pm Tuesday, April 1st as part of CAR’s Colorado Connections event. Even if you are not attending Colorado Connections, please feel free to join us for this reception at the Hyatt Regency Denver Tech Center where we will recognize various levels of RPAC investors, have some “fun’raising” for 2025, and help us laugh into April with stand-up comedian Sam Adams. Tickets are only $38 for our “Colorado Proud” reception and go towards your 2025 RPAC investments: https://bit.ly/ColoradoProudRPACReception
You will need your member number to register: https://login.connect.realtor/#!/forgotmember
NAR
NAR Supports New Federal Task Force Aimed to Address Housing Shortage
“The National Association of REALTORS® has long advocated for reducing regulatory barriers that slow down development and add costs to new homes. The task force is a great step forward in unlocking more opportunities for first-time buyers, workforce housing, and underserved communities. We look forward to working with policymakers to ensure that expanding housing inventory remains a national priority.”
The U.S. Black homeownership rate experienced the greatest year-over-year increase in 2023 among racial groups, yet it still falls significantly behind the White homeownership rate, according to the National Association of REALTORS® 2025 Snapshot of Race and Home Buying in America.
NAR at CAR RPAC Reception
NAR Political Representative Justin Baker will be attending the RPAC Reception on April 1st in the Hyatt Regency DTC for CAR’s Colorado Connections. Justin will provide updates on key federal advocacy efforts and the political climate in Washington, D.C. Registration is closed for the conference, but you can still purchase a ticket to attend the RPAC Reception. Click this link to buy yours today. Space is limited. (*Note: You must be a REALTOR® member or affiliate to attend.)