3-2-1 Capitol Connection – May 1, 2025

3 Things to Know

Paving the Way for New Condo Construction. We are excited to share that one of our top two priorities for 2025, the “Colorado American Dream Act” (HB 1272) has officially passed—marking a huge step forward in addressing Colorado’s housing crisis and increasing housing supply. This legislation establishes the Multi-Family Construction Incentive Program, beginning January 1, 2026: a proactive solution that prioritizes consumer protection and incentivizes responsible development of condominiums, making it a win-win for homeowners and builders alike. By passing this legislation that we are proud to have supported, Colorado can create more attainable housing opportunities for first-time homeowners, or seniors looking to downsize, and ensure that future generations can achieve the dream of homeownership. A big thank you to the hard work and incredible stakeholding from its champions: Representative Shannon Bird (HD-29) and Speaker Pro Tem Andy Boesenecker (SD-53), Senate President James Coleman (SD-33) and Senator Dylan Roberts (SD-8)!

Protecting REALTOR^® Safety and the Use of Forewarn or Other Identity Apps. Our other top priority for 2025 has been to fix the “Consumer Protections for Artificial Intelligence” bill from last year (SB24 – 205), which could subject REALTORS^® to onerous regulations and significant penalties based on definitions in that bill. A bill was just introduced this week “Artificial Intelligence Consumer Protections” (SB 318) that has the language CAR requested to ensure REALTORS^® can use identity apps such as Forewarn and not be subject to problematic disclosures or penalties if a REALTOR^® chooses not to show a property to someone based on information received from an app. Whereas last year’s bill simply had “Housing” related to a consequential decision, SB 318 narrows that broad scope to any decision on “housing with respect to the purchase or renting of a primary residence…” which means showing a property is exempt from the regulations laid out in SB24-205 from last year. We are actively monitoring this bill and holding the line on the language we secured. However, there are several business and industry partners who still need amendments to address a host of significant issues that remain unresolved even in the introduced version of SB 318 this year.

Housing & Business Bills Heading to the Governor. Three significant bills are on their way to the Governor’s desk—each with direct implications for the housing market, insurance transparency, and affordable homeownership in our state.

• “Risk Model Use in Property Insurance Policies” (HB 1182): Starting in July of 2026, the bill incentivizes homeowners to engage in wildfire risk mitigation on their properties by ensuring insurance discounts and clearer explanations behind the risks insurance companies have assessed against homes. While the bill applies to insurance through the FAIR Plan (and excludes commercial properties) it is a great step towards greater transparency from insurers and consumer understanding around wildfire risk and insurance pricing.
• “County Lodging Tax Expansion” (HB 1247): This bill sought out to not only expand the uses of a county lodging tax, but also, the tax itself. The tax of up to 6% must be voter approved, and we successfully amended the bill to ensure that new uses would be focused on housing-related initiatives.
• “Investment Authority for Affordable Housing” (SB 006): This bill empowers the State Treasurer to invest $50 million in bonds with the goal of financing new, affordable housing. This would be one of the most significant state investments in attainable housing, and we are proud to have supported it since its inception.

2 Things to Share

REALTORS’ Success on the Legislative Front. The first regular session of Colorado’s 75th General Assembly has so far introduced 729 bills and CAR has positions or tracking on 83 of them. CAR’s Government Affairs team was successful in changing (amendments), passing, or defeating some key bills including:

• Exempting the MLS from Antitrust Act penalties in a bill prohibiting algorithmic rent-setting (House Bill 1004);
• Ensuring property owners can keep security deposits or associated damages deposits in the event of death of tenant that impacts the property (House Bill 1108);
• Requiring pixelating, blurring, and blocking-out of residential structures to protect homeowner privacy in the use of wildfire detection cameras (Senate Bill 11);
  • CAR also secured an amendment to require public notice by the vendor of these cameras.
• Protecting REALTORS® from deceptive trade practice claims from pricing they do not control in the home buying and selling process, and ensuring real estate brokers can demonstrate that any fees, costs, or amounts charged in addition to the total price of a good or service are not real estate broker commissions or fees (House Bill 1090);
• Reducing liability to real estate brokers in transactions that involve residences in metropolitan districts and keeping established disclosure processes simple and plain for consumers (House Bill 1219);
• Defeating legislation that would expose all REALTORS® to deceptive trade practice claims that E&O insurance does not cover in what the majority of cases would be considered simple negligence or omission (Senate Bill 157);
• Creating immunity for landowners who allow for ingress and egress on their land for first responders in emergency events (House Bill 1053);
• Adding guardrails to vegetative fuel mitigation programs adopted by fire protection and metropolitan districts such as requiring public hearings, capping fines on homeowners, tolling of mitigation work depending upon cost to homeowner, and requiring written permission by owner or occupant for access to property (HB25-1009).

Federal Political Coordinators (FPCs) Head to Washington, D.C.  Colorado’s FPC Team is fully staffed by REALTOR^® members like you and are descending on Capitol Hill from May 31st to June 5th for the REALTOR® Legislative Meetings (RLM). FPCs will prioritize taking members in attendance to congressional visits to advocate for housing affordability, updating federal tax law to unlock inventory, and ensuring equal access to professional representation. Last year, the National Association of REALTORS^® successfully urged the Department of Veterans Affairs to change its VA loan policies to allow for buyer-broker compensation, ensuring veterans have access to representation in the competitive buying process.

To contact your congressional representative’s FPC, please email us at [email protected].

1 Thing to Do

Register for Property Management Forum. Designed for property managers of all sizes, this forum explores regulations, legislation, market trends, and industry issues that impact the property management side of real estate. Event sessions include Risk Management, Property Management Trends, and a Legislative Update with Q&A. This event is included in your CAR Membership ($20 for non-members). Register today for the property management forum on Thursday, May 22nd, 10am to 12pm.

NAR

Listen to the Advocacy Scoop Podcast

April is Fair Housing Month, and Shannon McGahn and Patrick Newton take us inside NAR’s 360-degree approach to the topic. Fair Housing isn’t just a feel-good phrase—it’s the law. And NAR’s members are an army of Fair Housing advocates leading on this issue in every zip code in America.

After a Wild Ride, Mortgage Rates Settle Back Under 7%

Mortgage rates jumped 20 basis points over the last week, but by the end of the week, rates were back below 7%. New tariff policies and stock market fluctuations prompted some economic turmoil last week. So, what should buyers be paying attention to as they contemplate applying for a mortgage?

Housing Supply Frameworks Act Would Break Down Barriers to Housing Development

The Housing Supply Frameworks Act—introduced in the Senate by Sens. Lisa Blunt Rochester, D-Del.; John Fetterman, D-Pa.; Mike Crapo, R-Idaho; and Thom Tillis, R-N.C., and in the House by Reps. Brittany Pettersen, D-Colo. and Mike Flood, R-Neb.—offers a framework for state and local governments to modernize outdated zoning and land-use regulations that hinder new housing development.

Updates on FHA Changes to Residency Requirements for Program Eligibility

FHA also states the changes ensure program integrity because “non-permanent residents are subject to immigration laws that can affect their ability to remain legally in the country,” which “poses a challenge for FHA as the ability to fulfill long-term financial obligations depends on stable residency and employment.”

NAR Supports New Federal Task Force Aimed to Address Housing Shortage

NAR applauds the U.S. Departments of Housing and Urban Development (HUD) and the Interior (DOI) for establishing a Joint Task Force on Federal Land for Housing which will identify underutilized federal lands suitable for residential development. The following is a recent statement from Shannon McGahn, NAR Executive Vice President and Chief Advocacy Officer:

“Lack of inventory remains one of the biggest barriers to affordability, driving up home prices and putting the dream of homeownership out of reach for too many Americans.

HUD and DOI’s formation of this task force recognizes that housing is a foundational part of economic stability, and smart policy solutions such as streamlining regulatory and permitting processes can help alleviate the supply crisis. In pursuing this initiative, we appreciate the care taken to prioritize housing development in those areas where it is most viable, with an eye toward environmental stewardship. 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.”