3-2-1 Capitol Connection – February 20, 2025
3 Things to Know
- Unveiling of HB-1272: Construction Defects & Middle Market Housing.Exciting news for Colorado’s housing market! Yesterday, House Bill 1272—a new bill aimed at expanding the supply of entry level, attainable homes—was introduced, and it comes with important protections for both homeowners and builders alike. The bill introduces fair and balanced reforms to construction litigation, ensuring that high-quality homes are built, problems are fixed, and excessive costs that deter development can be reined in. It establishes clear standards for construction defect claims, requiring third-party inspections and reasonable mitigation efforts to protect homeowners without discouraging builders. Additionally, by adjusting statutes of limitation and clarifying responsibilities in defect resolution, the bill ensures that homeowners receive timely, high-quality repairs while fostering a more sustainable housing market. This balance of protection and progress will be crucial for creating the stable, long-lasting homes that many Coloradans need.
- Deceptive Trade Practice Liability. CAR’s Legislative Policy Committee reviewed Senate Bill 157 and voted to oppose the bill. It seeks to modify the public impact standard necessary to qualify for a deceptive or unfair practice, and in doing so, would expose brokers to costly penalties such as treble damages and attorney fees – which E&O insurance will not cover. The CAR Government Affairs team will work around the clock to defeat the bill.
- Halting Local Government Anti-Growth Policies. House Bill 1093 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. The bill also ensures municipalities can seek judicial determinations of any proposed land use ordinance and addresses the issue that emerged from the City of Lakewood and its citizen-led petition that restricted residential development. The bill has passed the House and is now headed for 1st reading in a Senate committee of reference. CAR supports this bill brought forth by Reps. Rebekah Stewart and Carlos Barron, and Senator Matt Ball.
2 Things to Share
- New Homeowners’ Insurance Bill Introduced: As Coloradans, we understand the importance of preparing for wildfires. Whether you’ve taken steps to create defensible space around your home or added building hardening measures, ensuring that your efforts are recognized by insurers is crucial. A new bill moving through the legislative process, House Bill 1182, will require insurers to provide greater transparency about how they assess wildfire risk and how it impacts insurance rates. Insurers will have to share the specific wildfire risk models or catastrophe scoring methods they use, including details on how mitigation efforts—such as defensible space or certification from wildfire mitigation experts—affect a homeowner’s rate. Additionally, insurers will be required to publicly post information on premium discounts and incentives for homeowners who implement wildfire mitigation actions. This bill also mandates that policyholders receive clear, annual notifications about their wildfire risk score, explaining how it impacts their premium and what mitigation steps could help lower it. In a state like ours, where wildfire risk is a real concern, legislation like this could help ensure that homeowners are treated fairly and have access to the coverage they need, especially when they’ve done their part to reduce risk. This bill is scheduled for its first committee discussion on Wednesday, February 26, and it’s crucial that we stay informed on its progress. Stay tuned for updates!
- Middle Market Housing Press Conference: On Wednesday, February 19, REALTORS® gathered at a press conference for the unveiling of House Bill 1272, with one of our own members sharing their thoughts on the importance of expanding the supply of entry level, attainable homes. CAR is proud to support this important piece of legislation and we encourage you to get involved too—sign up to offer testimony and make your voice heard as we work together to build a stronger future for Colorado’s housing market!
1 Thing to Do
Attend a Town Hall. State lawmakers hold town halls in their respective districts during and after the regular session. Take advantage of these opportunities to hear directly from lawmakers about issues inspiring policy proposals. A couple of ways to find townhall information is by finding your legislator and finding their campaign website. You can sign up for their newsletters and town hall events. Many are active on social media channels including Facebook, X, and Instagram. Posts about their community events can come up at any moment.
NAR
The past year was another terrific one for homeowners. Their overall net housing equity swelled to $35 trillion in 2024. Nearly a third of that growth came in the past four years. It is, therefore, not surprising that consumers who’ve bought and sold recently continue to rate very highly the real estate agent with whom they worked.
Clearing the Path to Homeownership
Buying that first house is a rite of passage that most Americans still dream of—but it’s not getting any easier to achieve. The median age for a first-time buyer today is 38, up from 31 a decade ago.
New year, new season, and new policy priorities for NAR’s advocacy team. Shannon and Patrick delve into the complicated world of tax reform and how Congress and the administration plan to tackle the expiring Tax Cuts and Jobs Act (TCJA). From Opportunity Zone incentives, to the SALT deduction, to protecting 1031 like-kind exchange, they discuss what’s on the table this year and what’s most important for REALTORS® and the fight for affordability, availability, and accessibility.