3-2-1 Capitol Connection – March 24, 2026
3 Things to Know
1. CAR Secures Major Wins in Real Estate Sunset Bill. The Colorado Association of REALTORS® played a leading role in shaping this year’s sunset bill, “Sunset Division of Real Estate” (House Bill 1287), to continue the Colorado Real Estate Commission and Division of Real Estate, both set to expire in September 2026, for another 10 years. The policy changes within the bill carried significant implications for brokers and consumers, and CAR was actively engaged to ensure the regulatory framework remains fair, effective, and practical.
CAR successfully removed a harmful provision that would have authorized the Commission to impose restitution on brokers. This proposal would have fundamentally shifted the Commission into an adjudicatory role and required licensees to pay potentially tens of thousands of dollars before reinstating their license—costs not covered by errors and omissions insurance. This would have left brokers without a viable path to resolution and consumers without a reliable way to be made whole. By eliminating this language, CAR preserved due process protections and ensured these matters remain in civil court, where appropriate remedies and insurance coverage are available.
In addition, CAR secured several key amendments to modernize and clarify regulations. The bill now ensures that designated brokers can share their clients’ confidential information with supervising and/or employing brokers, provided it is not to the detriment of their clients. We also reformed overly burdensome trust account requirements by clarifying that only funds that come into a licensee’s possession or control in connection with licensed activities must be held in a trust account, and by updating affiliated business arrangement disclosures so that only the client being represented must sign, while third-party consumers are informed via disclosure. With these changes in place, CAR fully supports HB 1287 and will fight to maintain these amendments as the bill continues through the legislative process.
2. RUBS Clarification Bill Sent to Governor. Last week, the legislature approved “Ratio Utility Billing Systems” (House Bill 1013), legislation addressing how utility costs may be allocated in residential rental properties. The bill clarifies that landlords may use a ratio utility billing system (RUBS) to distribute utility charges among tenants, provided certain consumer protections are met—such as prohibiting markups beyond the actual utility cost, excluding common area expenses, and requiring clear disclosure of how charges are calculated in the lease.
The measure serves as a needed clarification following the passage of House Bill 25-1090, where bill language and subsequent clarifications from the Attorney General’s office created uncertainty around the use of RUBS in practice. By clearly outlining that the practice is permitted, the bill provides greater consistency for housing providers and property managers navigating utility billing requirements. The bill has passed both chambers of the legislature and has been sent to the Governor for signature.
3. Expanding the Use of Documentary Fees for Housing. The legislature recently advanced “Strategy to Reduce & Prevent Homelessness” (House Bill 1202), a wide-ranging measure addressing homelessness that includes a provision related to real estate documentary fees. A similar effort failed last year but has been reintroduced this year with the same goal of allowing counties to designate a portion of documentary fees—collected during real estate transactions—to be transferred to a county government or local housing authority to support the development, preservation, or acquisition of affordable housing.
While the goal of increasing housing resources is broadly shared, this provision raises important questions for CAR—who has taken an Amend position on the bill. Documentary fees have traditionally covered the administrative costs of recording real estate transactions. Redirecting those funds toward broader housing initiatives begins to resemble a tax rather than a fee under TABOR principles, particularly if the revenue is used beyond the direct service being regulated. It also invites a longer-term concern: if these funds are repurposed, future pressure to increase the fee itself may follow.
2 Things to Share
1. CAR Strengthens Property Owner Protections. The Colorado Association of REALTORS® has been actively engaged on “County Enforcement Authority” (House Bill 1239), a bill that originally raised serious concerns for property owners across the state. As introduced, the legislation would have lowered the evidentiary standard for counties to find a violation of local code, from “personal and direct knowledge” to a much more subjective “reasonable belief.” It also proposed steep daily penalties of up to $3,000 per day for issues such as failure to remove trash or alleged unlawful use of land.
Over the past year, and continuing through the 2026 legislative session, CAR worked closely with lawmakers and stakeholders to significantly improve the bill. As amended, the evidentiary standard has been strengthened to require personal knowledge supported by competent evidence and a reasonable investigation—an approach that is arguably more protective than current statute. In addition, the proposed daily penalty structure has been removed and replaced with a more balanced escalation framework: $500 for a first offense, $1,000 for a second, and up to $2,650 for repeat violations. This structure provides flexibility for property owners who may be unknowingly out of compliance, while maintaining accountability for repeat offenders. Importantly, the final maximum penalty aligns with what municipalities can impose, ensuring consistency across jurisdictions and preventing counties from exceeding authority precedent.
These changes reflect CAR’s ongoing commitment to protecting property rights and ensuring fair, practical regulations for REALTORS® and their clients. The bill heads to the Senate, where CAR is actively monitoring to ensure the amendments to the bill stay intact.
2. Share your residential or commercial property transaction experience. Apply to join a CAR Government Affairs Committee, such as the Legislative Policy Committee (LPC), today. If you have been looking for a meaningful way to grow your leadership, expand your network, and help shape the future of our industry, this is it. Serving on a CAR committee puts you in the room where ideas turn into action for Colorado REALTORS®. You don’t have to be a politico to serve on the LPC, your experience is what helps shape the policy discussions and bill positions adopted by the LPC. LPC meetings offer a virtual Zoom option, so you can attend from Cortez to Sterling or from Craig to Trinidad, and everywhere in between. CAR provides orientation and trainings to help members succeed when the next legislative session kicks off in January 2027. We look forward to seeing your application for a CAR Government Affairs Committee.
1 Thing to Do
1. Consider Making Your Colorado Share Investment of $38 in RPAC. CAR works around the clock to protect your business, keep the industry viable, and make your daily work schedule easier. Major legislative and electoral wins shared throughout the year are made possible in part through member investments in the REALTORS® Political Action Committee (RPAC). Click here to learn more about how your membership and investments make a difference in the lives of real estate professionals across Colorado and for the consumers you serve.
Please consider making a manageable Colorado Share investment of $38 in RPAC today to strengthen political advocacy efforts. That’s basically the cost of one Stanley Tumbler to help your business throughout the year. Thinking about taking another step and becoming an RPAC Major Investor? Scan the QR code below and select your level! For complete information, visit our website.
Contributions to RPAC are not deductible for federal income tax purposes. Contributions are voluntary and are used for political purposes. The amounts indicated are merely guidelines and you may contribute more or less than the suggested amounts. The National Association of REALTORS® and its state and local associations will not favor or disadvantage any member because of the amount contributed or a decision not to contribute. You may refuse to contribute without reprisal. Your contribution is split between National RPAC and the State PAC in your state. The National RPAC portion is used to support federal candidates and is charged against your limits under 52 U.S.C. 30116. Must be a U.S. Citizen to contribute.
NAR
Housing Supply Summit Shares NAR-Backed Playbook
Several hundred real estate advocates and industry practitioners convened in Washington, D.C., this week to strategize on the industry’s most pressing policy challenge—how to ensure an adequate supply of housing for the nation’s 129 million households. With an estimated shortage of 5 million homes across the country, many view supply increases as a key factor in solving the housing affordability crisis.
NAR Responds to Executive Orders Aimed at Home Affordability, Mortgage Lending
President Donald Trump, on Friday, signed two executive orders aimed at improving home affordability and speeding up construction. The orders direct multiple government agencies to simplify processes and cut regulations surrounding home building.
NAR Pushes Forward for Solution in HOA Master Insurance Delays
To sell properties in homeowners’ association communities, mortgage lenders often require documentation showing adequate insurance coverage for common areas. When lenders encounter delays in obtaining this information, real estate professionals are frequently asked to step in. Here’s how the National Association of REALTORS® is working to address the issue.