Colorado Apartment Association

House Bill 1017-concerning Rent Control was heard late Tuesday afternoon in the House Local Government Committee. The Bill passed on a party line vote     6-5.

The Bill will be up for second reading on the House Floor on Friday, February     26.

Special thanks goes to Lauren Brockman, Rex Gambrell, Terry Simone, Brandon Rich, Mike Papantonakis,  Stephanie Avery, and Gordon Von Stroh who delivered excellent testimony in the committee hearing.

Please continue to watch for alerts.

HB-1017 (Kagan/Boyd), a rent control bill, was taken off the House Local Government Committee Calendar for Thursday, February 11 and rescheduled for Tuesday, February 23rd at 1:30pm. It will be the third bill to be heard.

Click here for the bill language.

A Rent Control Bill (HB-1017) stemming from the an Interim Committee called the Economic Opportunity Poverty Reduction Task Force has been introduced this session.

Click here for the current bill language.

HB 1017 is calendared to be heard in the House Local Government Committee on Thursday, February 11.

Yesterday, Governor Ritter gave his annual “State of the State” Address.  He called on State Legislators to set aside party differences and remain focused on job creation, economic recovery and keeping the state budget balanced.

The Governor outlined his top priorities for the legislative session, including:

• Keeping the state budget balanced, saving money and making government more effective through proposals such as the Medicaid Efficiency Act.
• Creating jobs and growing Colorado’s New Energy Economy through proposals such as an increase to the state’s renewable energy standard, boosting it from the current 20 percent by 2020 requirement to 30 percent by 2020, and increasing demand for Colorado’s cleaner-burning natural gas.
• Making the Colorado State Park system the first in the country to use zero net energy.
• Modernizing teacher and student assessments, including replacing the CSAP test with a new assessment tool by 2011 or 2012.
• Strengthening public safety through legislation to regulate and rein in abuses in Colorado’s voter-approved medical marijuana program, toughen penalties for repeat drunk-driving offenses, and improve the state’s child-protection system.
• Shoring up the state’s Public Employee Retirement Association pension fund.

Click here for the full State of the State address.

The 2010 Legislative Session officially began on today. House and Senate Leadership spoke on the issues facing the Colorado Legislature this year. 

Amid the looming 2010 State and Gubernatorial Election, lawmakers will be forced to make tough decisions. House Speaker Terrance Carroll (D-Denver). “Two wars, two recessions — one nearly resulting in economic collapse — disasters both natural and man-made. If anything, history’s long march, which rarely presents time to exhale, is speeding up. Today, though better than yesterday, again presents this nation and this state with new challenges,” Carroll told the 65 members of the House.

Senate President Brandon Shaffer, D-Longmont, said it’s a new decade that requires new ideas. Shaffer said legislators will consider bills allowing job retraining accounts for employees offering tax benefits for education and retraining, health care loan programs for rural communities, a new renewable energy standard and a plan to fix the struggling state employee pension fund.

In addition to tracking the budget and other controversial issues, the Apartment Association is already potentially taking on several pieces of legislation. First, HB 1017 Voluntary Rent Control was introduced January 13. The Association is poised to oppose this bill in Committee. In addition, there are rumblings of possible tweaking of Landlord Tenant Laws, however, there is no legislation drafted yet. Construction Defects will also be introduced as well as a likely change to Broker Lien Law. Finally, the Association is working with the Mobile Home Association to combat potential warranty of habitability changes this session.

This is just the tip of the ice berg of what the Colorado Apartment Association could face this session. Staff is already working hard defending the multifamily housing industry at The Capitol.

Keep checking the CAA Website for more updates on the 2010 Legislative Session.

The CAA Lease has been updated with stronger language regarding the Warranty of Habitability.

Contact your local apartment association for more information.

The Colorado statewide apartment vacancy rate for 2009’s third quarter increased to 7.4 percent, rising from 2008’s third quarter rate of 6.6 percent. Many experts are chalking the rise in vacancies to the high unemployment rate Colorado is facing. The Metro Denver Area vacancy rate at 7.4% while the Fort Collins/Loveland area reported the lowest rates at 5.9% and 4.3%. In addition, Colorado Springs was one of the few cities that reported lower vacancy rates in the third quarter.

Click here for the full article.

 Colorado Apartment Association
2009 END OF SESSION REPORT

This year, the Colorado Apartment Association continued to increase their political profile at the General Assembly.  Our efforts were highly successful by focusing on preventing the passage of detrimental bills such as rent control, deed restrictions, impact fees, and anti-growth measures. 

HB09-1138 Property Interest And Limit On Rent Control (Curry-Schwartz) Under the current statute addressing the control of rents (rent control statute) by counties and municipalities (local governments), local governments are prohibited from enacting any ordinance or resolution that would control rent on a private residential housing unit. The bill attempted to clarify that nothing in the statute is intended or shall be construed to prohibit or restrict the right of any property owner and any state agency, county, municipality, or housing authority to enter into and enforce a contract that controls rent on a private residential housing unit. However, the bill contained language that conflicted with the rent control prohibition and would have had the effect of eliminating the prohibition.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1091 Carbon Monoxide Alarms In Residential Properties (Soper-Romer).  In the 2008 legislative session, the CAA opposed similar legislation based on concern over the technology that was specified in the bill and building code issues.  In 2009, the CAA agreed to support the bill with language proposed by the association which insured immunity from liability when the alarm has been properly installed and maintained.  The bill establishes requirements for the maintenance and installation of alarms in rental properties and requires that prior to renting to a new tenant a landlord must replace or repair an existing alarm, as needed.  The bill permits a local government to set more stringent requirements for the installation of alarms. Finally, the bill grants immunity from liability to any person who properly installs or maintains a carbon monoxide alarm.

Position: Support with Amendments
Outcome: Signed by the Governor

HB09-1259 Impact Fees For Authority Local Purposes (Hullinghorst) Modified existing statutory provisions authorizing a county, municipality, and city and county (local government) to impose an impact fee or other similar development charge (fee or charge) to finance capital facilities to address the impacts from new development.

Position: Oppose
Outcome: Postponed Indefinitely

SB09-051 Renewable Energy Financing Act (Carroll M.-Levy) SB09-051 as introduced contained language, which CAA opposed, that allowed tenants the right to an annual energy audit.  The goal of providing information was not opposed but the proposed language would have been inserted into the “tenant’s rights” provision of the current statute creating problems.  This language allowed potentially unfettered access to central portions of buildings, including heating and cooling facilities that served entire complexes. After lobbying the floor of the Senate, the detrimental language was stricken. 

Position: Monitor
Outcome: Successfully amended and Signed by the Governor

 SB09-246 Construction Defects Revisted 2009 (Morse-Pommer) This bill modified the “Construction Defect Action Reform Act” to require that moratory interest (extra interest due on an obligation if regular payments are late) be awarded in residential construction defect cases from the time the construction defect is created through the end of the statutory notice of claim process.

Position: Oppose
Outcome: Postponed Indefinitely

SB09-095 Construction Contract Prompt Pay (Tapia-Riesberg) As amended, this bill set payment standards to govern construction agreements between contractors and private property owners or public entities. Among other things, the bill required that invoices be paid within 30 days or within 25 days if a subcontractor is involved.

Position: Oppose
Outcome: Postponed Indefinitely

SB09-110 Sunsent Civil Rights Commission & Division(Morse-Levy) This bill extends the Colorado Civil Rights Commission and Division (CCRD) until July 1, 2018, and makes certain changes to the commission, the CCRD and anti-discrimination law.

Position: Monitor
Outcome: Passed

HB09-1247 Homebuyers’ Energy Right-To-Know Act (Apuan-Morse) Effective January 1, 2010, the bill required the seller of an existing residence to provide the buyer with both energy billing and usage history for the property for the 12-month period immediately preceding the listing of the property.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1070 Lands Prohibited From URAs (Fischer) This bill made several modifications to the procedures surrounding the actions of urban renewal authorities. The bill specified that no area that has been designated as an urban renewal area (URA) shall contain any agricultural or vacant land with some exceptions.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1106 Codify Pending Ordinance Doctrine (Hullinghorst-Gibbs) Specified that an application for a development permit (application) or other request for a land use approval (request) by a county or municipality (local government) shall be subject to any pending law, rule, resolution, ordinance, or other regulation of the local government (pending regulation) at the time the application or request is submitted.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1110 Required Rental Real Property Information For Assessors (Scanlan-Gibbs) Under current law, personal property that is used to furnish residential rental property is subject to property taxation. County assessors in resort areas argued that many properties classified as residential are actually rental properties, utilizing on-line advertising and other non-traditional methods thus avoiding paying the appropriate taxes. This bill clarifies existing law by requiring owners of furnished rental property or their agents to provide identifying information of such properties to county assessors when requested.

Position: Oppose unless amended. 
Outcome: Amended to ensure no mandatory reporting method was placed on the property owner.  Signed by the Governor

HB09-1208 Public Works Prevailing Wages & Benefits (Soper) This bill required that contractors and subcontractors on state public works contracts worth more than $100,000 pay prevailing wages and fringe benefits to their workers.

Position:  Oppose
Outcome: Postponed Indefinitely

HB09-1220 Permit Unit Owner Promote Afford Housing (Scanlan-Gibbs) The bill amends the Colorado Common Interest Ownership Act and, regardless of current home owner association rules, allows a unit owner to specify or restrict:

• the sale price, rental rate, or lease rate of a unit; or
• occupancy or other requirements designed to promote affordable or workforce housing.

The provisions of this bill apply only to towns with a population of less than 100,000 and that have a licensed ski lift. The bill does not apply to a declarant-controlled community and the property must be owner occupied. CAA successfully amended the bill to apply to only owner occupied units.

Position: Oppose unless amended
Outcome: Successfully amended and Signed by the Governor

HB09-1254 Deceptive Trade Practices 1031 Exchanges (Judd-Harvey) The bill adds a new series of deceptive trade practices to the Colorado Consumer Protection Act for misconduct committed by exchange facilitators who mediate like-kind exchanges under 26 U.S.C. SEC. 1031. An exchange facilitator is effectively required to serve as a responsible custodian by maintaining adequate security for funds and properly accounting for funds. The bill also prohibits various misconduct such as fraud, misrepresentation, and commingling of funds.

Position: Support
Outcome: Signed by the Governor

HB09-1284 Corridor Capacity Strategic Planning (Levy-Williams) The bill established a system for the Colorado Department of Transportation (CDOT) to take on a role in land use planning typically reserved for local governments. Specifically, it required that the CDOT and MPOs jointly identify and prioritize congested corridors as part of the statewide transportation planning process. For certain new development plans within those corridors, the CDOT could have required traffic studies, review applications, and submit comments to local governments. The CDOT would have had to define in rule the criteria that would trigger its involvement, in any development or rezoning application that met the criteria to be transmitted to the CDOT.

Position: Oppose
Outcome: Bill Defeated

HB09-1327 URL Mod Impacts Taxing Entities (Hullinghorst-Tochtrop) The bill modified the method of distributing property tax revenue attributable to urban renewal authorities (URAs) that arise from the use of tax increment financing (TIF) mechanisms to support urban renewal projects.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1006 Sewer System Rate Users Outside Boundary (Kerr J.-Kopp) Required cities or towns setting sewerage system rates for owners of property outside the boundaries of the city or town, if the owners comprised more than 50% of all owners of property receiving the sewerage system service, to base the rates on the actual cost of providing the service.

Position: Monitor
Outcome: Postponed Indefinitely

HB09-1040 Unfunded Mandates on Local Governments (Vigil) This bill required that the Division of Local Government in the Department of Local Affairs prepare an annual report on all legislation passed by the General Assembly that created an unfunded state mandate on local governments.

Position: Oppose
Outcome: Postponed Indefinitely

HB09-1068 Business Personal Property Tax Exemption (Lambert-Scheffel) Required the general assembly to appropriate from the general fund to the newly created business personal property tax reimbursement fund (fund) an amount of moneys for each year after a specified date that there are peak general fund appropriations.

Position: Support
Outcome: Postponed Indefinitely

HB09-1085 Mortgage Loan Originator Licensing Act (Rice-Heath) This bill modifies and renames the Mortgage Broker Licensing Act and:

• requires annual renewal of licenses, a change from the current 3 year renewal cycle;
• increases education requirements for license renewal from 9 hours every 3 years to 8 hours annually;
• requires license applicants to provide additional information to the department including personal credit reports and evidence of financial responsibility;
• authorizes the department to obtain additional criminal background information;
• allows the department to order that a mortgage loan originator pay for damages to consumers.

The bill is repealed on July 1, 2011, following a sunset review.

Position: Monitor
Outcome: Passed

HB09-1093 Corporate Taxpayer Reporting Requirements (Levy-Veiga) This bill establishes administrative and auditing measures to allow the Department of Revenue (DOR) to improve compliance with Colorado’s corporate income tax reporting requirements. The bill adopts definitions of a real estate investment trust and a captive real estate investment trust established by the Multistate Tax Commission.

Position: Monitor
Outcome: Signed by the Governor

HB09-1104 Interior Designer Certification (Hullinghorst-Gibbs) This bill required interior designers to apply for certification with the division of registrations in the department of regulatory agencies (division).

Position:  Monitor
Outcome: Postponed Indefinitely

HB09-1108 Paycheck Bounce Cause Insufficient Funds (Kerr A. – Boyd) This bill adds employee protections and employer penalties to the Colorado Wage Act. It addresses situations when an employee’s paycheck is not honored by the employer’s bank causing the employee’s account to have insufficient funds to pay bills. Employers are responsible for actual damages caused by the nonpayment, including associated late fees.

Position: Monitor
Outcome: Signed by the Governor

HB09-1210 Mandatory Paid Sick Leave (McGihon-Carroll M.) Created the “Healthy Families and Workplaces Act” (act), which required all private employers in Colorado to provide paid sick leave to their employees.

Position: Monitor
Outcome: Postponed Indefinitely

HB09-1227 Neighborhood Equity Skimming & Nuisances (Frangas-Hudak) The bill originally included language intended to add to landlord’s rights to evict tenants based upon activities that were detrimental to the neighborhood.  This language was deleted due to concerns about how interaction between citizens, tenants, landlords and law enforcement would occur.  The bill now expands the definition of equity skimming to include the collection of rent on a foreclosed property by any person other than the property owner.

Position: Support
Outcome: Signed by the Governor

HB09-1309 Boilers Inspections (Pace-Tochtrop) This bill was introduced at the behest of Xcel Energy, who had concerns that current practices placed an unnecessary burden on older boilers.

Position:  Support
Outcome: Sent to the Governor

HB09-1310 Employee Misclassification (Levy-Heath) The bill allows any person to file a written complaint with the Division of Employment and Training in the Department of Labor and Employment alleging an employer is misclassifying an employee as an independent contractor.

Position: Monitor
Outcome: Passed

SB09-231 Extends State Methamphetamine Task Force (Penry-Solano & Bradford) This bill extends the repeal of the Colorado Methamphetamine Task Force until January 1, 2014. Currently, the task force is set to repeal on January 1, 2010.

Position: Monitor
Outcome: Signed by the Governor

HISTORY: The 2009 General Assembly began Wednesday, January 7th and our industry faced a politically charged piece of legislation concerning carbon monoxide detector requirements. The bill required that detectors be placed in every dwelling unit (single residential and multi-family housing).   The bill was dubbed the “Lofgren and Johnson Memorial bill.” (The Lofgren family of four lost their lives in an Aspen home due to elevated carbon monoxide levels in the house).  Shortly thereafter, recent deaths occurred in Colorado Springs in an apartment and then weeks later, a University of Denver student living in an off-campus apartment also was found dead due to carbon monoxide poisoning.

The sponsors of the legislation, Rep. John Soper (D) – Thornton and Senator Chris Romer (D) – Denver presented their bill at a press conference in early January.  Friends and family members of the deceased stood behind the bill and testified on its behalf. 

Your government affairs team worked diligently through the legislative process to hone the language of the bill to produce legislation that would be fair to property management and landlords.

HB1091 was signed into law March 24, 2009. This new state law requires rental properties (single or multifamily dwellings) that use fuel-fired heaters or appliances or fireplaces or attached garage to be equipped with a CO detector.  Below is an overview:

Who needs to comply?

This new state law requires rental properties (single or multifamily dwellings) that use fuel-fired heaters or appliances or fireplaces or attached garage to be equipped with a CO detector. Carbon monoxide is produced by the incomplete burn of a fossil fuel.

By what date do I need to comply?

The law states that an existing dwelling unit that is used for rental purposes that has a change in tenant occupancy on or after July 1, 2009 will be subject to the requirements of this law. This means that when a tenant begins a new lease in a unit; OR if an existing tenant renews their lease, the CO detector will need to be installed before move in or at the time of the lease renewal. If you have units that are currently occupied, you are not required to install CO alarms in that unit until a new tenant signs a lease and moves into the unit. The law also requires that a landlord provide any batteries necessary to make the CO alarm operational at the time a tenant moves into a unit. 

Do I need to replace the detector when a tenant moves out?

When a tenant moves out the law requires that any carbon monoxide detectors that were stolen, removed, missing, or inoperable should be replaced before the new tenant moves into the unit.

What kind of detector does the law require?

Carbon monoxide detectors must produce an audible alarm and be listed by a nationally recognized certified laboratory.  They must also be either battery powered, plug into an electrical outlet with battery back up, be wired into a dwelling’s electrical system with battery back up, or connected to an electrical system via an electrical panel.

Can the CO detector be combined with a smoke detector?

Yes.  The CO detector may be combined with a smoke detector as long as the audible signal clearly differentiates between the two hazards.

What are the requirements of installation?

The CO detector must be installed directly into the unit’s electrical system or directly plugged into an electrical outlet without a switch other than the circuit breaker OR if the alarm is battery back-up, attached to the wall or ceiling of the unit in accordance to the National Fire Association’s (NFPA) Standard 720 which is available from the NFPA or any successor standard.

How many carbon monoxide detectors need to be installed in each dwelling unit?

The law requires that a CO detector be installed within 15 feet of each sleeping room in a dwelling unit (or in a location as specified in any building code adopted by the state or any local government entity).

In addition, as long as there is a centralized alarm system or other mechanism for a responsible person to hear the alarm at all times (and able to alert tenants), a carbon monoxide alarm can be installed within twenty-five feet of any fuel-fired heater, or appliance, boiler, fireplace, or garage in addition to placement of detectors within the required 15 feet of each sleeping room.  It is recommended that CO detectors are installed in the units even if the boiler is not attached to a unit. The law states that if there is anything operated by gas (fossil fuel burning) that detectors are needed. The law does not specify the distance from detector to boiler and therefore installing detectors in each unit as specified above will insure compliance.

If I do not have fuel burning appliances or an attached garage do I still need CO detectors?

While many of our members do not have fuel burning appliances or an attached garage, it is the recommendation of the CAA that you adhere to the policies set forth in HB1091.

What kind of maintenance does the act require?

The landlord is responsible for the maintenance of a detector when they are notified in writing by a tenant that the batteries need to be replaced in the detector, or the detector was stolen, removed, found missing, or found not operational.

It may be prudent to inform your tenants of their responsibilities in communicating with the landlord should a problem occur with their detector. In addition, the law states that it is illegal to remove the batteries from the detector unless you are changing the batteries, inspecting or maintaining the alarm.

Your CAA government affairs team worked diligently through the legislative process to insure the language of the bill would be fair to property management and landlords. If you have any questions regarding the “Lofgren and Johnson Families Carbon Monoxide Safety Act” please contact Meghan Storrie (mstorrie@caahq.org) or Nancy Burke (nancy@aamdhq.org).

Rent Control- HB1138 (Rent control sponsored by Rep. Curry and Sen. Schwartz) was killed in Committee last week. The bill was heard on Tuesday in the Local Government Committee of the House.  The Colorado Apartment Association took the lead on this bill as the bill’s focus was aimed on our industry. CAA worked in unison with our housing coalition which includes the homebuilders, mobile home parks, the modular home manufacturers and the realtors to defeat this bill. Thank you to the following members for their testimony in committee: 

Drew Hamrick, ColdironHamrick
Lauren Brockman, Allied Realty
Stephanie Avery, Round Hill Pacific
Dr. Gordon Von Stroh, University of Denver

Carbon Monoxide Detectors- HB 1091 (Soper&Court/Romer) was passed in the House on second reading and will likely pass on third reading and head to the Senate. The bill mandates carbon monoxide detectors in multifamily and single family homes. Apartment Association staff worked hard with the bill sponsors to make the bill better for the industry including adding important immunity language that will protect landlords should a detector become faulty.

Impact Fees- (Hillinghorst/None) This bill would authorize local governments to impose an impact fee or other similar development charge to finance capital facilities (schools, ball courts etc) to address the impacts from new development.  This bill expands the term “capital facility” to include any improvement or facility that is reasonably related to any service of a school district or special district.