Colorado

Colorado

LEGISLATIVE UPDATE

·HB-1140 (Repeal Rent Control Prohibition) - Postponed indefinitely, in other words, this bill is dead. CAR opposed HB-1140, which would have opened the door to local rent control. Unfortunately, a new landlord tenant bill has just been introduced.

·SB-162 (Interest on Fiduciary Accounts for Affordable Housing) - Killed by the Human Health and Services Committee. It would have mandated a state program aimed at affordable housing by collecting the voluntary interest earned off escrow accounts. Although it would've exempted CARHOF there is no doubt the bill would have a detrimental effect on it and similar programs. For this reason, CAR strongly opposed the bill. Unfortunately several local area legislators were sponsors on the bill, including Senators Bob Bacon (Fort Collins) and Steve Johnson (Larimer County) as well as Reps. Jim Riesberg (Greeley) and Alice Madden (Boulder).

·HB-1270 (CICs Allow Energy Efficiency Measures) - Extends an existing prohibition on covenants and deed restrictions in HOAs that limit the use of solar energy devices such as wind-electric generators, shade structures, shutters, attic fans, evaporative coolers, energy-efficient outdoor lighting devices, and retractable clotheslines. The CAR Legislative Policy Committee (LPC) voted to oppose this after a heated debate. The majority felt the HOAs should have the responsibility for governing such issues without a state mandate. Some REALTORS felt it was unwise to oppose something that promotes energy conservation and solar measures. The bill was Laid Over (dying but not yet killed) on March 27.

·HB-1340 (Colorado Housing Investment Fund) - would increase the current documentary fee on residential real estate transactions from one center per $100 of value to 5 cents. The fee on commercial property would rise from 1 cent per $100 of value to 2 cents. The revenue created by the doc fee increase would be used to create a state level housing trust organization which would use the revenues to administer grants to local organizations involved in affordable housing. The bill had a three hour hearing in the House Finance Committee because of its budget implications. Listening to the discussion was fascinating and frustrating. Its sponsor, Rep. John Kefalas (Fort Collins) said his bill was well researched and vetted. He argued it is "Clearly an economic development tool – the fund would generate 3,200 jobs and 3,400 housing opportunities and tax revenues for the State; $334 million in economic activity would be generated. Kefalas said, "In 38 other states with trust funds about 11 use doc fees as primary revenue and the real estate industry is thriving." President Greg Zadel testified in opposition on behalf of CAR as did representatives of the title industry, the Colorado Apartment Association and commercial real estate. A Sierra Club lobbyist suggested a decrease in REALTORS commissions would help make homes more affordable. Kathy Williams, the Executive Director of the Colorado Housing Authority admitted Governor Ritter did not support the bill but did not explain the reasons for the Governor’s opposition. Finally, the Chair of the Committee laid the bill over for another day and it has not been rescheduled to-date. Rep. Kefalas apparently has amendments for the bill but without the Governor's support it is unlikely the bill will succeed. The bill will be heard again in the House Finance Committee on April 2 after this report goes to press.