3-2-1 Capitol Connection – April 28, 2026

3 Things to Know

Division of Real Estate (DRE) bill headed to the Senate. The Colorado Association of REALTORS® has played a leading role in shaping “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. The House passed HB 1287 by a bipartisan 49-14 vote on April 24th and now it moves to the Senate for action.

In the Senate, CAR will fight to keep out a harmful provision that would have authorized the Commission to impose restitution on brokers. This provision was in the introduced version of the bill, and CAR took the lead to amend it out. It 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. By eliminating restitution 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 in the House to modernize and clarify regulations. The bill now provides better clarity that designated brokers can share their clients’ confidential information with express written consent to 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 in the Senate.

Bill to Revise Wildfire Code Fails in Committee. Modify Standards of Wildfire Resiliency Code Board” (House Bill 1334), which sought to revise Colorado’s wildfire resiliency code framework, was defeated in committee earlier this month, failing on a close 7–6 vote. The bill would have made several changes to the existing statute, including requiring an earlier review of the statewide wildfire code, expanding who could petition for modifications, and extending the timeline for local governments to adopt compliant codes by an additional year.

With the bill’s defeat, current law remains in place—meaning local jurisdictions were still expected to adopt wildfire codes by April 1, 2026, and are still expected to be fully compliant by July 1, 2026. Testimony throughout the hearing underscored the significance of the existing policy, with fire service professionals emphasizing it as one of the most impactful steps the state has taken toward improving wildfire resilience. At the same time, concerns were raised that further delays could create uncertainty in the housing pipeline, particularly as builders navigate inspection timelines and liability considerations.

Ultimately, the conversation reflected desires to balance the need for preparedness with concerns about capacity and cost—while reinforcing that the current timeline will move forward as adopted.

Post Closing Occupancy Agreements (PCOAs) Fixed in Law. A key CAR-led priority has now crossed the finish line—“Security Deposits & Post-Closing Occupancy Agreements” (Senate Bill 54) has been signed by the Governor. The new law allows buyers and sellers entering into a post-closing occupancy agreement to negotiate a security deposit that exceeds Colorado’s standard two-month rent cap, providing added flexibility to better manage risk during these short-term arrangements.

This is a strong example of industry expertise shaping policy in a meaningful way, ensuring statute better reflects how transactions actually work in today’s market. The law will take effect January 1, 2027, marking a notable win for REALTORS® across Colorado.

2 Things to Share

CHFA mortgages expanded to first responders. A CAR supported bill “Colorado Housing and Finance Authority Mortgage POST Officers First Responders” (Senate Bill 53) has been signed into law by the Governor. This measure expands access to mortgage loan programs through the Colorado Housing and Finance Authority by including first responders. It broadens the definition of “first responder” to cover peace officers, firefighters, and emergency medical technicians, and further clarifies that “peace officer” includes roles such as deputy sheriffs (including noncertified), emergency communications specialists, corrections officers, port of entry officers, and wildlife officers.

Fortifying Roofs Against Hail and Fire. CAR is working to strengthen “Increase Access Homeowner’s Insurance Enterprise” (Senate Bill 155) to expand access to grant funding for roof retrofits. The proposed amendments would ensure that all residential properties—not just owner-occupied homes—can qualify for grant assistance to upgrade to hail- and wildfire-resistant roofing. CAR Government Affairs is advocating for this change to avoid unequal treatment across residential property types.

The bill establishes the Strengthen Colorado Homes Enterprise, funded by a 0.5% fee on insurers offering homeowners insurance in the state. These funds would support grants aimed at reducing the frequency and severity of insurance claims, helping stabilize Colorado’s insurance market.

Additional provisions require insurers to report annually on discounts offered to homeowners who install resilient roofing systems. CAR continues to support policies that promote a balanced, sustainable insurance environment—one that keeps real estate transactions moving forward. The bill, backed by insurers operating in Colorado, is now headed to the Senate floor for second reading.

1 Thing to Do

Attend a CAR Event and hear from Government Affairs! Register to attend an upcoming CAR event, many virtually, to hear more about CAR’s Government Affairs (GA) work and how it impacts you and your clients. A couple of virtual options coming up that includes GA are the CAR Town Hall on May 28th and the Property Management Forum on June 11th. The Town Hall is your chance to hear directly from your elected REALTOR® leaders about the latest CAR updates and initiatives and key real estate issues impacting your business. The Property Management Forum addresses shifting regulations, rising risks, and rapidly changing rental market conditions. This virtual forum is built to help Colorado REALTORS® working in property management stay informed, prepared, and protected.

Register to attend these events and others today!

NAR

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