Colorado Apartment Association

Amendment 48 - Definition of a Person.  This constitutional amendment would define any human being from the moment of fertilization as a “person.”

Referendum L - Qualifications for Serving in the State Legislature.  This constitutional amendment would lower the minimum age for serving in the state legislature from 25 to 21.

Referendum M - Obsolete Constitutional Provision Relating to Land Value Increases.  This constitutional amendment would repeal section 7 of article XVIII of the state constitution concerning outdated, obsolete provisions regarding land value increase.  The section to be repealed is: Land value increase - arboreal planting exempt. The general assembly may provide that the increase in the value of private lands caused by the planting of hedges, orchards and forests thereon, shall not, for a limited time to be fixed by law, be taken into account in assessing such lands for taxation.

Referendum N - Obsolete Constitutional Provisions Relating to Liquor.  This constitutional amendment would repeal section 5 of article XVIII and article XXII of the state constitution, concerning the elimination of outdated obsolete provisions of the state constitution.  The section to be repealed is: Section 5. Spurious and drugged liquors - laws concerning. The general assembly shall prohibit by law the importation into this state, for the purpose of sale, of any spurious, poisonous or drugged spirituous liquors, or spirituous liquors adulterated with any poisonous or deleterious substance, mixture, or compound; and shall prohibit the compounding or manufacture within this state, except for chemical or mechanical purposes, of any of said liquors, whether they be denominated spirituous, vinous, malt or otherwise; and shall also prohibit the sale of any such liquors to be used as a beverage, and any violation of either of said prohibitions shall be punished by fine and imprisonment. The general assembly shall provide by law for the condemnation and destruction of all spurious, poisonous or drugged liquors herein prohibited.

Referendum O - Changes to Initiative Process.  This constitutional amendment would change the number of signatures for a statutory initiative from five percent of the votes cast in the last election for Secretary of State to four percent of the votes cast in the last election for Governor.  For a constitutional amendment, six percent of the votes cast would be required.  Additionally, for a constitutional amendment, the minimum number of signatures by registered electors who reside in each congressional district shall be an amount equal to eight percent of the minimum number of the total signatures required for such petition.  The General Assembly would not be allowed to amend, repeal or supersede any law enacted by an initiative for a period of five years after the law becomes effective unless approved by a vote of two-thirds of all the members elected to each chamber.

Severance Tax Initiative

The Governor’s proposal to increase severance taxes has drawn the ire of many across the state.  Currently, oil and gas severance taxes paid to local communities receive a tax credit, which the initiative would take away, generating more than $200 million a year.  The bulk of the revenue would go to college scholarships for Colorado students.  However, significant concerns have been raised throughout the business and higher education communities.  Colorado’s higher ed institutions are in desperate need of funding for construction and operating costs, and while well-intentioned, the scholarships would do nothing to address those needs.   In fact, the revenue would not address any of the states top funding needs, including transportation and health care, as well as higher ed operations.  Chambers of commerce and business leaders across the state are rallying against the measure, which is sure to spur a heated battle.  The initiative is expected to make it to the 2008 ballot.

Labor Initiatives

Several initiatives that were introduced as counter-measures to the Right-to-Work initiative are making their way through the process and appear primed to make it on the ballot.  While backers would likely only select a couple to campaign for, it looks like any of them could be options. 

These include:

• A mandatory annual cost-of-living wage increase for all employees, regardless of the financial health of the business or employee.
• A mandate for all employees to receive full health care benefits.
• The right of any citizen to sue any business manager for criminal and civil liability, including compensatory and punitive damages.
• A mandate prohibiting the firing of any employee without a formal, documented rationale.
• Increased property taxes on business.
• strict new regulations on workplace safety standards.

Governor Ritter signed HB-1356 Concerning Landlord and Tenant Relations into law on June 2nd. Contact CAA or your local association to find out about getting educated on Landlord Tenant.

click here for the final version of the bill.

House Bill 1356- Concerning Landlord and Tenant Relations.  CAA has worked tirelessly to get the fairest bill for the industry. CAA’s representatives spent months involved in Governor sponsored negotiations with the tenants’ rights groups. The negotiations centered on drafting a warranty of habitability for Colorado. When the negotiations ended, CAA felt there were still loopholes in the bill that could negatively affect good landlords. The Association continued to work with legislators to close those loopholes and get a better bill passed in the legislature. Because of CAA’s intense negotiations, lobbying efforts, and hard work, the bill is more balanced and reasonable for landlords. The bill was passed by the Colorado Legislature.

Click here for the final bill.

House Bill 1140- Rent Control. CAA opposed this bill because of its potential devastating impact on the industry and quality housing for Colorado’s citizens.  Currently, Colorado law prohibits counties and municipalities from imposing any form of rent control on private residential property.  HB1140 eliminated this prohibition and gave counties and municipalities the power to impose rent control on rental properties.  Because of affordable housing shortages throughout the state, CAA was extremely concerned that counties and municipalities would wrongly use rent control as a “solution” to this issue.  CAA opposed HB1140 because there is overwhelming evidence and data that clearly demonstrate rent control reduces the quantity and quality of available housing.  Rather than solving Colorado’s affordable housing problem, HB1140 will worsen and further exacerbate the current housing meltdown. The bill was defeated by the Colorado Legislature.

Senate Bill 187- Carbon Monoxide Alarms.   CAA strongly opposed this bill because of the huge costs to the industry.   SB187 would have required carbon monoxide alarms for all residential properties (single-family, multi-family) that have fuel burning appliances, fireplaces, or an attached garage. For CAA members alone, the bill would have cost upwards of $20 million to implement as alarms run from $20 to $200, not including installation. CAA mobilized the business community to get the necessary votes to kill the bill on the Senate Floor. The bill was defeated by the Colorado legislature.

House Bill 1340 - Real Estate Transfer Tax. CAA opposed this bill because of its potential impact on the real estate industry.  HB1340 was opposed by a broad coalition of members of the real estate industry. This bill increased the documentary fee on the sale of residential real estate from $0.01 per $100 of the sale price to $0.05 per $100 of the sale price.  The incremental increase was earmarked to fund a state affordable housing fund.  CAA opposed this bill because the 400% increase imposed higher transaction costs on members who are involved in the sale of real property.  Because of the significantly higher sale price for multi-family properties, CAA members would have unfairly borne the burden of funding state affordable housing programs.  The bill was defeated by the Colorado Legislature.

Senate Bill 162 - Affordable Housing.  CAA opposed this bill because of its potential impact on the real estate industry.  This bill was opposed by a broad coalition of real estate development interests.  SB162 would have taken the interest accrued from real estate escrow and closing accounts and deposited this money into a state affordable housing fund.  CAA opposed this bill because of the financial and administrative burden it placed on CAA members.  The bill unfairly placed the burden of funding state affordable housing programs on the real estate industry.  The bill was defeated by the Colorado Legislature. 

House Bill 1225 - Property Tax Exemption.  CAA supported this bill because it increases the property tax exemption.  This bill will help small business owners by incrementally increasing the exemption from property taxation for business personal property up to $7,000 for the property tax year commencing January 1, 2011. After 2013 the property tax exemption will be adjusted biennially based on inflation.  This bill was passed by the Colorado Legislature. 

 Senate Bill 206 - Justice Center and Museum Agreement.  CAA opposed this bill because of the imposed costs to the industry.  CAA members are some of the most common participants in the judicial system. This legislation increased civil court fees in order to create a fund to build a new Judicial Center and Colorado History Museum Complex. At the time the bill was introduced, the increase would make filing in county court cost upwards of $110. This bill had broad bipartisan support in the legislature, but CAA continued to work with the bill sponsors to lower the cost to file for its members. CAA was successful in reaching a deal to lower the initial fee increase. The cost was lowered to $80 for 2008, and then incrementally increased to $87 for 2009, and $97 for 2010. The bill was passed by the Colorado legislature.

The House concurred with the technical amendments adopted by the Senate. The bill has now passed both Houses and will shortly be on the Governor’s desk. It is expected he will sign the bill.

Click here for the final bill.

Today HB 1356- Concerning Landlord and Tenant Relations was heard on third reading in the Senate. The bill was passed on a vote of 21-10. Several legislators, three Republicans and one Democrat, took a conflict and abstained from the vote. Two Republican legislators voted in favor of the bill.

Due to the efforts of the Apartment Association, the bill that passed the Senate today is more reasonable than the original introduced version. The Colorado Apartment Association was able to amend some important provisions in the bill. This first is that a tenant must provide written notice to a landlord of an uninhabitable condition. Also, language allowing the tenant to repair a breach in the warranty and deduct the cost from their rent up to a certain amount was stricken from the bill. In addition, before a tenant can assert a claim for injunctive relief they must give notice to a local government, within the boundaries of which the residential premises is located, of the uninhabitable condition. These amendments were put into the bill in the House Business Affairs and Labor Committee on April 22. Many Republican legislators sought to amend the bill in both the House and Senate, but these amendments failed on party line votes.

The House will now consider technical amendments approved by the Senate Judiciary Committee. These served to clean up some of the language in the bill. If the House concurs, which is likely, the bill will move to the Governor’s Office.

HB1356- Concerning Landlord and Tenant Relations was heard in the Senate Judiciary Committee this afternoon. Testimony was heard from both sides. The Apartment Association testified that there continues to be many loopholes in the bill that will punish good landlords.

Two amendments were moved during the Committee. The first, by the Senate Sponsor Representative Betty Boyd (D), sought to clean up the language in the bill including some technical errors. This amendment was passed without objection. The second amendment, brought by Senator Scott Renfroe (R), made several changes to the bill including adding language that neither the landlord nor the tenant shall be obligated to enter into a new rental agreement upon the expiration of any rental agreement term. The amendment also contained language that a tenant may not unilaterally withhold rent prior to a judicial determination of the right to do so. This amendment failed on a party line vote of 4-2.

HB 1356 was passed out of the Judicial Committee as amended and will be heard on the Senate Floor shortly. The vote was party line with the four Democratic Senators voting in favor of the bill and the two Republicans voting against.

HB 1356-Concerning Landlords and Tenants was passed in the House on 3rd Reading. The party line vote took place on April 24.

The bill will likely be calendered to be heard by the Senate State, Veterans, and Military Affairs Committee this week.

Today HB 1356- concerning landlord tenant relations was passed on second reading in the House. It passed on a party line voice vote. 

The current bill is improved and more reasonable for landlords than the introduced version. Because of CAA’s lobbying efforts, the bill was amended in the Business Affair and Labor Committee. The first of the amendments was to strike the language allowing the tenant to repair a breach in the warranty and deduct the cost from their rent up to a certain amount. The second amendment narrowed the scope of the warranty by removing the language that a landlord must guarantee that the premises are fit for the uses reasonably intended by the parties.  The third amendment required that the landlord receive written notice from the tenant of an uninhabitable condition.

Republican legislators also proposed several more amendments from the House floor to make the bill more balanced for property owners. Representative Larry Liston (R) brought three amendments. The first amendment sought to remove common areas from the warranty of habitability. The second amendment sought clarification on the retaliation clause in the current bill by adding language that neither the tenant nor the landlord is required to renew the lease at the end of a term. The third amendment attempted to remove some of the exemptions currently in the bill, specifically, hotels and motels, residences at a public or private institution that provide educational or geriatric service, housing for agricultural workers, and residences for fraternal and social organizations. In addition, Representative Doug Bruce (R) brought an amendment relating to the injunctive relief provision of the bill. The amendment would have struck language that says a landlord shall not be permitted to rent the premises again until such time as the unit would be in compliance with the warranty of habitability. These amendments failed along party line votes.

In addition, an amendment was offered by Representative Joe Rice (D) that would have changed the provision in the bill in which a tenant can withhold rent due to a breach in the warranty of habitability by posting it into the registry of the court. The amendment proposed that if a tenant reduced the amount posted because of damages, they must be reasonable and documented with receipts. A 50% cap on the reduction amount was also included. This amendment also failed on the floor of the House.

The bill will be scheduled for third reading in the House and then will move to the Senate for consideration.

Yesterday, HB-1356 concerning landlord and tenant relations, was passed with amendments out of the Business Affairs Committee. The vote was  6-3  with all 6 Democrats present voting for the bill and all 3 Republicans present voting against the bill.  The additional amendments have made the bill more balanced and reasonable for CAA members.

The amendments were:

1. Strikes “uses reasonably intended” from scope of warranty.
2. Requires written notice.
3. Strikes self-help remedy.

CAA has worked tirelessly with legislators to come to deal on a warranty of habitability bill. Because of CAA’s efforts the bill passed through committee yesterday is more reasonable for landlords than the introduced bill.

HB 1356 will likely be heard on the house floor this evening. We will be sure to keep members of CAA posted on the ultimate outcome. Stay informed by visiting www.caahq.org.

SB 187- Concerning carbon monoxide alarms in residential properties has been defeated on the Senate Floor. The bill would have required carbon monoxide alarms for all residential properties (single-family, multi-family) that have fuel burning appliances, fireplaces, or an attached garage. 

The costs of implementing this bill were extremely high for property owners as alarms run from $20 to $200, not including installation.  The defeat of this bill has saved the multifamily housing industry tens of millions of dollars in the installation and purchase of carbon monoxide detectors.

When the bill passed out of committee on April 8, CAA and its allies immediately mobilized the business community, to gain the votes necessary to kill the bill on the Senate Floor. Through lobbying and grassroots efforts, the coalition was successful in swaying key Democratic votes. Legislators agreed that a mandate for carbon monoxide alarms in residential properties was unnecessary since the effectiveness of the alarms has not been proven. A number of groups have conducted studies on carbon monoxide alarms and found they have unacceptably high failure rates. These failures amount to increased costs to government as it creates unnecessary costs for fire, code, and other hazard response teams.

In addition, by killing this bill, legislators have sent a message that mandating alarms in residential properties is a code matter and should not be dealt with statutorily. Constitution, statutes, regulations, and code all serve a specific purpose and inserting code matters into statute sets a bad precedent. By defeating SB 187, the Colorado Legislature agrees with the vast majority of states that there are too many uncertainties and unresolved issues surrounding carbon monoxide alarms to mandate their use. 

CAA will continue to work at the State Capitol as a voice for the multifamily housing industry in Colorado. Stay informed on all legislative matters by going to www.caahq.org.