Colorado

CAR OPPOSES LANDLORD/TENANT BILL; TAKES STEPS TO KILL OR AMEND IT A proposed bill that would change Colorado's landlord-tenant statute has drawn strong opposition from rental property owners and the Colorado Association of REALTORS® (CAR). The legislation (HB 1061) would cut the time that a landlord may retain a security deposit to 30 days from the current 60 days, and would limit late fees on rent to 15 percent of the monthly rent. Currently, there is no ceiling on how much rental owners can charge for tardy rent payments. In letters and meetings with Colorado lawmakers, real estate practitioners said the revisions would hurt property values and force owners to raise ancillary fees, making it more difficult for them to rent their properties. The association contends that the changes would be costly and give investors and second-home buyers second thoughts before purchasing. CAR argues that requiring landlords to return security deposits within 30 days after a tenant moves out doesn't allow enough time for owners to accurately assess damages. The association says the proposed law also would eliminate the ability of property owners to restrict pets or smokers. That would force owners "to charge huge pet or smoker fees" to tenants to protect rental units from any major damage. Supporters contend the measure is needed because some property owners take advantage of elderly and disabled renters. CAR has continued to work with the sponsors, and have successfully amended the bill to remove the problematic "common law" provision that could have been applied to a contract. However, CAR continues to have concerns with the bill, and currently opposes HB 1061 unless further amended. CAR staff and lobbyists recently requested $30,000 in association Issues Mobilization funds to mount a public relations campaign designed to defeat HB 1061. On March 29 the Colorado Senate laid over the bill until Monday, April 4.

LEGISLATION OF INTEREST TO REALTORS®--AN UPDATE HB 1194 Stable Means of Funding Budgetary Needs passed the Senate this week by a 26 to 9 vote. In essence the bill will provide a five-year time out for TABOR (to use Senator Ken Gordons words) and repair the ratchet effect so that revenues can recover from a recession as the economy recovers. In the sixth year an additional $100 million in revenue can also be spent on bonding for capital construction. Now that the Legislature has finally reached a compromise, the really hard part begins. In November the voters will decide the fate of this constitutional reform. Many conservatives are still adamantly opposed to any TABOR reform. The issue is complicated and the public will be barraged by information on both sides, obfuscating the issue and making the decision difficult for the electorate.
10 Key Features of HB 1194 (paraphrase of Senate Majority Leader Gordons review)
1. Next 5 years--all revenue collected by the state can be spent providing services.
2. Year 6if there is revenue above what the state can keep to spend on services, the first $100 million will go to pay off bond obligations.
3. Year 6state can spend an amount equal to the highest revenue in the first 5 years plus inflation and population growthplus $100 million on bond obligations.
4. If revenue exceeds the amount referenced in #3 above equal to a reduction in income tax rate of .13%, the income tax will be reduced in the subsequent year by that amount and in subsequent years when there is sufficient surplus revenue.
5. Year 6if there is excess revenue that does not equal .13% income tax rate, it will be refunded to taxpayers.
6. Beyond year 6the revenue limit will be the limit from the previous year plus inflation and population growth (unless changed by a vote of the people).
7. The bonding proposal will include funds for Police and Fire Pension Fund, K-12 school construction and transportation. Additional inclusions can be negotiated between the legislative and executive branches.
8. The Legislature may refer a reauthorization measure in year 5.
9. The Governor and legislative leaders pledge to work in good faith to secure passage of this measure in November 2005.
10. HB 1194 is a negotiated agreementit is not perfect.

HB1264 Repeal of Recovery Fund passed out of the House this on 3rd and final reading on a 63-0 vote. The bill will now be introduced and heard in the Senate. In essence, the bill repeals the real estate recovery fund and prohibits claims that previously could have been initiated against the fund unless the civil action was initiated no later than 30 days after the bill becomes effective.
SB 100 Increased Protection for Homeowners: is intended to provide protection and disclosure for homeowners moving into and living in a HOA. The House Local Government committee held a hearing in late March which included REALTOR® testimony concerning problems these disclosures could pose in a real estate transaction and subsequently in the contract to buy-and-sell. In approving the bill, the committee considered over 15 amendments, several initiated by CAR to address concerns the bill posed in providing buyers with a disclosure regarding HOA documents and acknowledgements of responsibilities as a homeowner. CAR position: Oppose.
SB 182 Partial Takings & RTD Transportation Projects was approved by the House of Representatives this week. If Governor Owens signs it it will lessen the cost of acquiring land for the FasTracks transportation plan. The bill gives RTD the authority to compensate landowners for half of the property's fair market value provided that a portion of a landowner's property is taken for FasTracks and assessors determine that what the landowner keeps will become more valuable because of proximity to the project. The special eminent-domain formula described in Senate Bill 182 is already used by the Colorado Department of Transportation. CAR position: Oppose.