Compensation for Reduction in Fair Market Value by Government Law or Regulation
What is Amendment 74?
The amendment requires the state or a local government to compensate a property owner if a law or regulation reduces the fair market value of his or her property.
Sounds simple – what does Amendment 74 really mean for Colorado?
Did you know this idea hasn’t even been brought to the legislature to consider?
When there are statutes and legislation many stakeholders (such as the Colorado Association of REALTORS®) can help determine what language makes sense for property owners and homeowners to narrowly define the concept to be the best outcome for all of Coloradans.
If Amendment 74 passes, it will allow any corporation or individual to sue local governments over any law or regulation they disagree with, potentially opening the floodgates to frivolous and costly lawsuits. And Taxpayers will foot the bill.
Read up on this issue:
Amendment 74 – A Pandora’s box of property rights – The Colorado Independent
Colorado’s towns and cities scared about property owners’ right ballot measure – The Durango Herald
Some say that 74 could produce a “regulatory chill”
State or local governments could choose not to enact or enforce public health, safety and welfare regulations out of fear of being sued for compensation, ultimately weakening protections for our communities.
Be an informed voter
Colorado is a proud local control state. Do you know where your local municipality stands on Amendment 74? Find your local jurisdiction below:
- Colorado’s Mayors:
- Eaton Mayor Kevin Ross
- Fort Collins Mayor Wade Troxell
- Greeley Mayor John Gates
- Johnstown Mayor Scott James
- Severance Mayor Don McLeod
- Timnath Mayor Jill Grossman Belisle
- Wellington Mayor Troy Hamman
- City of Aspen
- Town of Breckenridge
- Colorado Springs City Council
- Craig City Council
- The Durango Herald Editorial Board
- Town of Fraser
- The Gazette Editorial Board
- Glenwood Springs City Council
- Greeley Tribune Editorial Board
- Town of Hayden
- League of Women Voters of Jefferson County
- City of Longmont
- City of Pueblo
- City of Sheridan
What do Colorado’s leaders say about Amendment 74?
Did you know that both statewide candidates for Treasurer oppose this amendment?
Brian Watson (R) said if the amendment passes it would place a large burden on the state’s taxpayers.
Dave Young (D) went a step further and said the legislation would create chaos, particularly harming every level of the state’s education system. “Every aspect of the budget would be very dramatically impacted in a very negative way,” he said.
Who supports Amendment 74?
- Colorado Farm Bureau
- Protect Colorado (a political issue group for oil and gas companies)
Who opposes Amendment 74?
120 elected officials from all sides of the aisle including:
- Governor Hickenlooper
- Mayor Hancock
- Mayor Suthers
Over 60 organizations including:
- Colorado Municipal League
- Club 20
- Colorado Water Congress
- Colorado Education Association
- American Planning Association
- Conservation Colorado
- New Era Colorado
- The Bell Policy Center
And 50 cities and counties
What is the community saying?
The Daily Camera
If approved by voters, Amendment 74 will radically upend decades of settled law by requiring taxpayer remuneration if any government decision reduces anyone’s property value by any amount. Every property-related decision made by a local government or the state will immediately be subject to a lawsuit, often by parties on both sides of an issue. Either zoning will cease to exist or taxpayers will be on the hook for millions, or even billions, of dollars.
Westword
Amendment 74 could even backfire on companies looking to develop oil and gas via “forced pooling.” Forced pooling is when developers get permission under state law to combine the mineral rights of a group of property owners into one unit.
The Gazette
Oregon voters overwhelmingly passed a measure similar to Amendment 74 in November of 2004. Within a year, property owners filed more than 2,000 claims, most challenging rules restricting subdividing and developing land.
The Denver Post
We are staunch advocates of property rights, but this amendment is simply too broad. If there are egregious examples of government abuse, we haven’t seen many. And even then, we’d advocate for a narrow legislative solution. Fear of an outcome that hasn’t occurred yet is not a good reason to amend our Constitution.
Colorado Hometown Weekly
This measure will cripple local budgets through both increased legal costs and payouts to individual property owners. Any decision by a government body would be vulnerable to lawsuits, with the cost borne by taxpayers.
CBS Denver
Despite Coloradans passing a ballot measure two years ago aimed at making it harder to change the state constitution, there are nine constitutional amendments on the 2018 ballot. One of the most controversial is Amendment 74.
5280 Magazine
It’s only 11 words, but a proposed change to the Colorado Constitution could make the Centennial State’s property law the most extreme in the nation.
Colorado Public Radio
Opposition to Amendment 74—a measure that would compensate private landowners if government actions diminished their property values—is growing as Democratic Gov. John Hickenlooper, Republican Colorado Springs Mayor John Suthers and Democratic Denver Mayor Michael Hancock vehemently rejected the initiative on the steps of the State Capitol on Friday.
Conservation groups, economic development groups and housing and planning groups against 74:
Amending Colorado’s Constitution
Colorado has amended its state constitution over 150 times since its inception in 1876. Once something is in, it takes a lot of effort to remove or remedy the document. While Amendment 74 might sound good on the surface, amending the constitution is a bigger step than most people realize. Unlike a legislative solution, any unintended consequences or any potential problems with the drafting are permanent and can’t be undone. A constitutional amendment that is deemed flawed would require 55% voter approval to fix the problems under the requirements of Amendment 71 (Raise the Bar) rather than a simple majority.
Looking at other states
Why aren’t we looking at the examples from other states and make sure we are using the best practices for land use decisions?
As a voter is it important to you that we understand and analyze the outcomes from states that have implemented similar measures first before we propose ideas like this in Colorado?
For instance, a nearly identical measure passed in Oregon, and almost $20 billion in claims were filed in just the first three years. These costly claims threatened funding for other competing priorities. See the summary and complete legal analysis from Robinson & Cole LLP.