2023 Legislative Summaries For Licensees

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The Colorado General Assembly Legislative Session adjourned on May 9, 2023. During the session, many new bills directly or indirectly affecting real estate and the practice of real estate were passed and became law. Understanding these laws, whether you are a real estate professional or simply an interested member of the public, may be helpful. The Division of Real Estate has prepared the following legislative summaries to aid you in better understanding the latest changes. 


Final language of these acts and other information about the Colorado General Assembly can be found on the Colorado General Assembly’s website at: https://leg.colorado.gov

 

The summaries below are not intended to constitute legal advice and are provided by the Division of Real Estate for informational purposes only. 

 

Summary Presentation:
House Bill 23-1062: Concerning the Authority of a Metropolitan District to Levy a Sales Tax

House Bill 23-1062


Concerning The Authority Of A Metropolitan District To Levy A Sales Tax With Voter Approval For The Purpose Of Providing Parks Or Recreational Facilities or Programs
 

Sponsors: BY REPRESENTATIVE(S) Mauro, Dickson, English, Epps, Froelich, Lindstedt, Mabrey, Martinez, Ricks; also SENATOR(S) Hinrichsen, Cutter, Jaquez Lewis, Priola, Will, Winter F., Zenzinger.

 

Signed by the Governor: April 17, 2023.

 

Summary: This House Bill was introduced on January 19, 2023 and signed by the Governor on April 17, 2023.

 

HB23-1062 expressly expands the powers granted to the board of a metropolitan district in section 32-1-1106, C.R.S. by stating that “for and on behalf of the district, to levy a uniform sales tax, at a rate determined by the board.” Revenues of any sales or use tax may be used only to fund the enumerated purposes, including “(V) Parks or recreational facilities or programs, as described in section 32-1-1004(2)(c), located within the district in which the tax is to be levied.”

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023

 

Related Tags:         Division of Real Estate Generally
                              Metropolitan Districts

 

House Bill 23-1068: Concerning Pet Animal Ownership In Housing

House Bill 23-1068


Concerning Pet Animal Ownership In Housing, And, In Connection Therewith, Prohibiting Restrictions On Dog Breeds For Obtaining Homeowner’s Insurance, Providing For The Manner In Which Pet Animals Are Handled When A Writ Of Restitution Is Executed, Limiting Security Deposits And Rent For Pet Animals From Personal Property Liens

 

Sponsors: BY REPRESENTATIVE(S) Valdez, Duran, Garcia, Lindsay, Mabrey, McCormick, Ortiz, Woodrow, Amabile, Joseph, Sharbini; also SENATOR(S) Winter F. and Jaquez Lewis, Cutter.

 

Signed By The Governor: June 7, 2023.

 

Summary: This bill addresses various factors surrounding pet ownership affecting homeowners, homeowner associations, landlords, and tenants.

 

Homeowner’s Insurance: The bill states that insurers may not (1) refuse to issue, (2) cancel, (3) refuse to renew, or (4) increase a premium or rate for a homeowner’s insurance or increase a premium for either homeowner’s insurance or fire insurance based on the breed or mixture of breeds of a dog that is kept at the dwelling. This provision, added to section 10-4.110.8, C.R.S., does not prohibit an insurer from the above if the particular dog kept at the dwelling is known to be a dangerous animal or if the particular dog has been declared to be dangerous in accordance with section 18-9-204.5, C.R.S. The insurer may not ask about the breed or mixture of breeds of any dog, however, the insurer may ask if the dog is known to be dangerous.

 

Writs of Restitution: In the event a writ of restitution is executed on a property, the officer executing the writ is directed to inspect the premise for any pet animals.  At that time, the officer must provide any pet animals found during the inspection to the tenant, or contact the local animal control authority if the tenant is not present at the time of the writ of restitution execution.

 

If there are pet animals and the tenant is not present at the time of the writ of restitution execution, the landlord must post notice at the premises in a visible place with the name and contact information of the organization where the pet animal(s) have been taken. Furthermore, upon request of the tenant, the landlord shall provide the tenant with the name and contact information of the organization where the pet animals have been taken. 

 

The bill expressly states that no pet animal shall be removed from the premises during the execution of a writ of restitution and left unattended on public or private property.  Stated another way, the officer needs to give the pet animal(s) to the tenant or an appropriate organization. 

 

Security Deposits: In the case of rentals, a landlord may charge no more than $300.00 from a prospective tenant or current tenant to allow a pet animal to reside at the premises.  Furthermore, section 38-12-106, C.R.S. also now states that the security deposit must be refundable to the tenant, whereas previously, many landlords required non-refundable security deposits for pets.

 

Additional Rent: A landlord is not permitted to charge additional rent in an amount that exceeds $35.00 per month or 1.5% of the monthly rent, whichever is greater, from a tenant as a condition of permitting the tenant’s pet animal(s) to reside at the residential premises.

 

Landlord Lien: Section 38-20-102, C.R.S. creates a lien on a tenant's personal property that is then on or in the rental premises.  The lien is effective upon “household furniture, goods, appliances, and other personal property of the tenant and the members of the tenant’s household then being upon the rental premises, but exclusive of pet animals, small kitchen appliances, cooking utensils, beds, bedding, necessary wearing apparel, personal or business records and documents, and the personal effects of the tenant and the members of the tenant’s household.” (emphasis added)

 

Effective Date: January 1, 2024, unless a referendum is initiated within 90 days after the final adjournment of the General Assembly.

 

Related Tags:         Division of Real Estate Generally
                              Landlord/Tenant
                              Consumers

 

House Bill 23-1095: Concerning Prohibiting The Inclusion of Certain Provisions In Written Rental Agreements

House Bill 23-1095

Concerning Prohibiting The Inclusion Of Certain Provisions In Written Rental Agreements

 

Sponsors: BY REPRESENTATIVE(S) Woodrow and Lindsay, Amabile, Bacon, Boesenecker, Brown, deGruy Kennedy, Dickson, English, Epps, Froelich, Garcia, Gonzales-Gutierrez, Jodeh, Joseph, Kipp, Mabrey, McCormick, Michaelson Jenet, Ortiz, Ricks, Sharbini, Sirota, Story, Titone, Velasco, Weissman, Duran, Herod, Lieder, Vigil; also SENATOR(S) Hinrichsen and Winter F., Cutter, Exum, Gonzales, Jaquez Lewis, Moreno.

 

Signed By The Governor: June 5, 2023.

 

Summary: Colorado law identifies certain clauses, some of which are required by statute and others that are prohibited by statute. Section 38-12-801, C.R.S. expressly identifies prohibited clauses, including the following:

 

1. A clause that assigns a penalty to a party stemming from an eviction notice or an eviction action that results for a violation of the rental agreement.
2. A one-way, fee-shifting clause that awards attorney fees and court costs only to one party. Any fee-shifting clause contained in a rental agreement must award attorney fees to the prevailing party in a court dispute concerning the rental agreement, residential premises, or dwelling unit following a determination by the court that the party prevailed and that the fee is reasonable. 
3. A waiver of the right to a jury trial, except that the parties may agree to a waiver of a jury trial in a hearing to determine possession of a dwelling unit.
4. A waiver of the ability to pursue, bring, join, litigate, or support any kind of joint, class, or collective claim or action arising from or relating to the term of the tenancy. 
5. A waiver of the implied covenant of good faith and fair dealing.
6. A waiver of the implied covenant of quiet enjoyment, except that a written rental agreement may provide that the landlord is not responsible for any violation of the implied covenant of quiet enjoyment that is committed by a third party acting beyond the reasonable control of the landlord. 
7. A provision that purports to affix any fee, damages, or penalty for a tenant’s failure to provide notice of nonrenewal of a rental agreement prior to the end of the rental agreement, except for actual losses incurred by the landlord as a result of the tenant’s failure to provide any such notice required pursuant to the rental agreement. 
8. A provision that characterizes any amount or fee set forth in the rental agreement, with the sole exception of the set monthly payment for occupancy of the premises, as “rent” for which all remedies to collect rent, including eviction, are available.  Such amounts and fees include any fees for utilities or services and any other charge that is not rent. 
9. A provision that requires a tenant to pay a fee markup or for a service for which the landlord is billed by a third party, except that a written rental agreement may include a provision that requires a tenant to pay either a markup or fee in an amount that does not exceed two percent of the amount that the landlord was billed or a markup or fee in an amount that does not exceed a total of ten dollars per month, but not both.
11. A provision that purports to allow a provider operating under any local, state, or federal voucher or subsidy program to commence or pursue an action for possession based solely on the nonpayment of utilities.
 

Section 38-12-801(4), C.R.S. exempts certain provisions above from a rental agreement concerning the occupancy of a mobile home.

 

Section 38-12-801(8), C.R.S. exempts certain provisions above from duplex or triplex or accessory dwelling units. For purposes of this bill, the term Accessory Dwelling Unit is defined as an internal, attached, or detached residential dwelling unit that provides complete independent living facilities for one or more persons, is located on the same lot as a proposed or existing primary residence, and includes provisions for living, sleeping, eating, cooking, and sanitation. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

 

More specifically, unless a referendum is initiated, August 7, 2023 AND applies to contracts and lease agreements entered into on or after the effective date of this act.

 

Related Tags:         Brokers
                              Landlord/Tenant

 

House Bill 23-1105: Concerning the Creation of Task Forces To Examine Issues Affecting Certain Homeowners' Rights

House Bill 23-1105

Concerning The Creation Of Task Forces To Examine Issues Affecting Certain Homeowners’ Rights, And, In Connection Therewith, Creating the HOA Homeowners’ Rights Task Force And The Metropolitan District Homeowners’ Rights Task Force, And Making An Appropriation

 

Sponsors: BY REPRESENTATIVE(S) Parenti and Titone, Amabile, Bacon, Boesenecker, Brown, English, Froelich, Gonzales-Gutierrez, Hamrick, Jodeh, Lieder, Lindsay, Marshall, Ricks, Sharbini, Sirota, Valdez, Vigil, Weissman, Willford, Woodrow, Dickson, Kipp, Mabrey, Michaelson Jenet, Snyder, Story; also SENATOR(S) Cutter and Fields; Bridges, Gonzales, Jaquez Lewis, Kolker, Marchman, Moreno, Priola, Rodriguez.

 

Signed by the Governor: May 24, 2023.

 

Summary: This bill creates two task forces which shall explore issues confronting HOA Homeowners’ Rights and Metropolitan District Homeowners’ Rights.  Specifically, the HOA Homeowners’ Rights Task Force will look at:

 

1. Issues confronting HOA homeowners’ rights
2. Fining authority and practices
3. Foreclosure practices
4. Communications with HOA Homeowners regarding association processes and HOA Homeowners’ rights and responsibilities
5. Association Records: a representative sample of association documents (Declaration, Covenants, Bylaws, Articles of Incorporation, rules & regulations, responsible governance policies, financial statements, most recent reserve study, records of actions of the board regarding collections activity or legal action taken against a unit owner)
6. HOA Center Complaints
7. Complaints made to any homeowners’ advocacy groups
8. Laws affecting Common Interest Communities

 

 

 

 

After the HOA Homeowners’ Rights Task Force convenes, the Metropolitan District Homeowners’ Rights Task Force will as well.  The Metropolitan District Homeowners’ Rights Task Force will examine issues confronting communities that are governed by the board of a metropolitan district, including:

 

1. Tax levying authority and practices
2. Foreclosure Practices
3. Communications with homeowners regarding metropolitan district processes and homeowners’ rights and responsibilities
4. Governance Policies, including voting and election policies
5. The process by which a metropolitan district could transition into a CIC under CCIOA
6. The recommendations and report of the HOA Homeowners’ Rights Task Force

Effective Date: May 24, 2023.

 

The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety

 

Related Tags:         HOA Center
                              Task Forces

 

House Bill 23-1120: Concerning Eviction Protections For Residential Tenants Who Receive Public Assistance

House Bill 23-1120

Concerning Eviction Protections For Residential Tenants Who Receive Public Assistance, And, In Connection Herewith, Making An Appropriation

 

Sponsors: BY REPRESENTATIVE(S) Joseph and Ortiz, Garcia, Lieder, Velasco, Amabile, Bacon, Boesenecker, Brown, deGruy Kennedy, Dickson, English, Epps, Gonzales-Gutierrez, Herod, Jodeh, Lindsay, Mabrey, Parenti, Ricks, Sirota, Story, Titone, Vigil, Weissman, Willford, Duran, Froelich, Kipp, Martinez, McCormick, Sharbini, Snyder, McCluskie; also SENATOR(S) Fields and Winter F., Cutter, Moreno, Priola, Sullivan.

 

Signed by the Governor: June 6, 2023.

 

Summary: The Colorado General Assembly considers the disparity between landlords’ and tenants’ access to legal representation to be significant. Notably, the General Assembly referenced a study that found that renters are represented by legal counsel in only one percent (1%) of eviction cases while landlords are represented by counsel in seventy-seven percent (77%) of cases. This information, in conjunction with the fact that Colorado is experiencing a housing shortage (estimates are of a shortage of approximately 325,000 units in 2022). Accordingly, HB23-1120 seeks to address these and other related issues.

 

In order to offer tenant’s additional protections, to initiate a complaint in court, the bill requires a signed affidavit that states:

 

1. Whether the tenant receives supplemental security income, social security disability insurance, or cash assistance through the Colorado Works program, and the complainant and residential tenant participated in mandatory mediation and the mediation was unsuccessful. 
2. Whether the complainant and residential tenant did not participate in mandatory mediation

 

 

Mandatory mediation must be conducted by a trained neutral third party and be provided at no cost to the residential tenant and should take place within fourteen (14) days of the request by landlord.

 

Mediations taking place pursuant to this bill should be tracked and included in a report to the Colorado General Assembly. With this information, the Colorado General Assembly should be able to make a determination if additional legislation is necessary to address the issues which are identified in the legislative declaration of HB23-1120.

 

In many evictions, a landlord will seek a writ of restitution after a court awards a judgment. For any writ of restitution: (1) the writ should not be executed until forty-eight (48) hours after the time of the entry of the judgment, but (2), if the writ of restitution concerns a residential tenant who receives supplemental security income, social security disability insurance, or cash assistance through the Colorado Works program, the writ must specify that it is not executable for thirty (30) days after entry of judgment, unless the court has ordered a judgment for possession for a substantial violation, or if the landlord has five or fewer singer-family rental homes. 

 

Existing law already required that the landlord provide written demand to the tenant for possession of the premises.  Section 13-40-106, C.R.S. requires landlords, when specifying the grounds of the demandant’s right to the possession of such premises, describing the same, and the time when the same shall be delivered, to also include a statement that a residential tenant who receives supplemental security income, social security disability insurance, or cash assistance from the Colorado Works program “has a right to mediation prior to the landlord filing an eviction complaint with the court pursuant to section 13-40-110, C.R.S.”

 

In order to comply with the provisions above, and to allow a landlord to determine if a tenant receives supplemental security income, social security disability insurance, or cash assistance through the Colorado Works program, section 24-34-502, C.R.S. is amended by HB23-1120 to allow a landlord to ask a residential tenant whether the tenant receives supplemental income, social security disability insurance, or cash assistance through the Colorado Works program. As such, a request by the landlord for this information is NOT a violation of unfair housing practices. 

 

Practitioners, landlords, and tenants should know that section 38-12-801, C.R.S. sets forth various clauses which are either required or prohibited in a written rental agreement.  HB23-1120 requires that a written rental agreement now “include a statement that section 24-34-502(1) prohibits source of income discrimination and requires a non-exempt landlord to accept any lawful and verifiable source of money paid directly, indirectly, or on behalf of a person, including income derived from any lawful profession or occupation and income or rental payments derived from any government or private assistance, grant, or loan program.” However, it is important to address that this provision does not apply to a landlord with five or fewer single-family rental homes.

 

Prohibited clauses that a landlord may not include now are (a) a waiver of mandatory mediation required pursuant to section 13-40-110(1), C.R.S. or (b) a clause which allows the landlord to recoup any costs associated with mandatory mediation which is required by section 13-40-110(1), C.R.S.

 

Effective Date: June 6, 2023.

 

The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety. 

 

Related Tags:         DRE Generally
                              Landlord/Tenant
                              Consumers

 

House Bill 23-1125: Concerning The Modernization of the Process to Change Groundwater Well Owner Contact Information

House Bill 23-1125

Concerning The Modernization Of The Process To Change Groundwater Well Owner Contact Information

 

Sponsors: BY REPRESENTATIVE(S) Lukens and Winter T., Amabile, Armagost, Bacon, Bird, Bockenfeld, Catlin, Duran, Lieder, Lindstedt, Marshall, Martinez, McCormick, McLachlan, Michaelson Jenet, Snyder, Story, Titone, Velasco, Weinberg, Wilson, Woodrow, Young, McCluskie; also SENATOR(S) Simpson and Marchman, Buckner, Cutter, Fields, Ginal, Jaquez Lewis, Moreno, Priola, Roberts, Rodriguez.

 

Signed by the Governor: March 31, 2023.

 

Summary: In the State of Colorado, section 37-90-143, C.R.S. sets forth requirements for groundwater well permits.  HB23-1125 now requires that any owner of an unexpired well permit that changes a name or contact information from that on file with the state engineer must update the state engineer within sixty-three (63) days. 

 

Section 38-30-102, C.R.S. similarly requires that the buyer of residential real estate that results in the transfer of ownership of a small capacity well or domestic exempt water well, shall complete a change in owner name form within sixty-three (63) days after closing the transaction.  If the transaction included closing services, the person providing said closing services shall, within sixty (60) days after closing submit the change in owner name form to the division. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023 AND applies to closing transactions on or after the effective date of this act.

 

Related Tags:         Brokers
                              Consumers

 

House Bill 23-1134: Concerning Mandatory Provisions In Home Warranty Service Contracts

House Bill 23-1134

Concerning Mandatory Provisions In Home Warranty Service Contracts, And, In Connection Therewith, Requiring A Home Warranty Service Contract To Include Terms Allowing A Homeowner To Replace Any Of Certain Gas-Fueled Devices With a Device That Operates On Electricity

 

Sponsors: BY REPRESENTATIVE(S) Joseph and Kipp, Garcia, Lindstedt, Ortiz, Sharbini, Velasco, Willford, Bird, Boesenecker, Brown, Dickson, English, Epps, Froelich, Hamrick, Herod, Jodeh, Lindsay, Mabrey, McCormick, Ricks, Sirota, Snyder, Weissman, Woodrow, Michaelson Jenet, Titone, Valdez, Vigil, McCluskie; also SENATOR(S) Cutter, Marchman, Hinrichsen, Kolker, Moreno, Priola, Winter F., Fenberg.

 

Signed by the Governor: March 31, 2023.

 

Summary: Many Colorado real estate practitioners are familiar with home warranty service contracts. For those readers that are not, home warranty service contracts cover repairs and replacements for expensive home appliances and systems. The Colorado General Assembly has determined that a home warranty that covers like-for-like replacements in the event of a claim, may cause a disincentive for people to purchase cleaner and more energy-efficient appliances. 

 

Section 12-10-903, C.R.S. imposes the following requirements on home warranty service contracts that are issued or renewed in Colorado on or after July 1, 2024. For those contracts, a homeowner is allowed the option to replace a gas-fueled appliance with a similar device of the homeowner’s choosing that operates on electricity rather than gas. The contract may require the homeowner to pay any cost in excess of the cost of replacing the gas-fueled appliance with a gas-fueled appliance.

 

The home warranty must also provide a that a replacement appliance satisfy the efficiency requirements set forth in Colorado law. 

 

If the homeowner is replacing a gas-fueled furnace HVAC system, boiler, or water heater, the contract must allow the homeowner to replace the appliance with a heat pump-based system. 

 

If the homeowner is replacing a gas-fueled stove, the contract must allow the homeowner to replace the appliance with an electric stove or an induction stove. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023 AND applies to home warranty service contracts executed or renewed on or after July 1, 2024. 

 

Related Tags:         Brokers
                              Consumers

 

House Bill 23-1174: Concerning Homeowners' Insurance and Requiring Certain Reports Related To the Cost of Reconstructing A Home, and Increasing the Notice Requirement Before An Insurer Can Cancel or Refuse to Renew A Homeowners' Insurance Policy

House Bill 23-1174

Concerning Homeowners’ Insurance, and In Connection Therewith, Requiring Certain Reports Related to the Cost of Reconstructing A Home, Increasing The Notice Requirement Before An Insurer Can Cancel Or Refuse To Renew A Homeowners Insurance Policy, Creating Guaranteed Replacement Cost Coverage In Homeowner’s Insurance, And Making An Appropriation

 

Sponsors: BY REPRESENTATIVE(S) Amabile and Brown, Boesenecker, Dickson, Herod, Joseph, Kipp, Lieder, Lindsay, Lindstedt, Mabrey, Martinez, McCormick, Michaelson Jenet, Ricks, Sharbini, Story, Titone, Velasco, Weissman, Willford, McCluskie, Bacon, Bird, English, Epps, Froelich, Garcia, Hamrick, Mauro, Ortiz, Parenti, Valdez; also SENATOR(S) Baisley and Roberts, Cutter, Danielson, Gardner, Hansen, Jaquez Lewis, Kirkmeyer, Kolker, Liston, Marchman, Pelton B., Priola, Smallwood, Sullivan, Will, Fenberg.

 

Signed by the Governor: May 12, 2023.

 

Summary:

 

Report Regarding the Cost of Reconstructing Homes In Colorado: Beginning with a report due by April 1, 2025, and annually thereafter, an independent third party will prepare a report on the cost of reconstructing homes in Colorado. The report will consider various factors including differing regions of the state, home types by design structure, different home customization types and other factors set forth in section 10-4-110.8(8), C.R.S.

 

Intent to Cancel or Refuse To Renew: Next, this bill requires that an insurer must mail by first-class mail to the named insured, at the last address shown in the insurer’s records, at least sixty (60) days in advance, a notice of intent to cancel or refuse to renew a policy. The notice must specifically state the reason or reasons for proposing to take such action. Exception to this rule is where cancellation is for nonpayment of premium, in which case, the insurer needs to provide at least ten (10) days’ notice of cancellation accompanied by the reasons for taking such action.

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:         Division of Real Estate Generally
                              Landlord/Tenant
                              Consumers

 

House Bill 23-1186: Concerning Remote Participation In a Residential Eviction Filing In County Court

House Bill 23-1186

Concerning Remote Participation In A Residential Eviction Filing In County Court, And, In Connection Therewith, Making An Appropriation

 

Sponsors: BY REPRESENTATIVE(S) Lindsay and Jodeh, Amabile, Bacon, Boesenecker, Brown, Dickson, Duran, Epps, Froelich, Garcia, Gonzales-Gutierrez, Herod, Joseph, Kipp, Mabrey, Marsha11,'Snyder, Story, Titone, Valdez, Vigil, Weissman, Willford, Woodrow, McCluskie; also SENATOR(S) Exum and Jaquez Lewis, Buckner, Cutter, Fields, Gonzales, Marchman, Moreno, Priola, Sullivan, Winter F.

 

Signed by the Governor: June 7, 2023.

 

Summary: The costs associated with litigation is high in Colorado, as well as across the nation. The Colorado General Assembly expressly finds that the costs and barriers to renters, in particular, are significant.  Attending court proceedings in person can require renters who face eviction to miss work, find and fund child care, and incur transportation costs. Therefore, to create an equitable process, the Colorado General Assembly amended section 13-4-113.5, C.R.S. to require that courts allow either party and any witness to choose to appear in person or remotely by phone or video on a platform designated by the court at any return, conference, hearing, trial, or other court proceeding. 

 

If, once a party or witness has chosen a method by which to appear, that party or witness can elect to change the manner by which to appear, however, if a party or witness contacts the court within forty-eight (48) hours before the scheduled appearance, the court has discretion whether to approve the party’s or witness’s requested change in participation. 

 

Needless to say, with electronic appearances, there is the possibility of technological failures.  In such an event, the court is directed to attempt to reestablish a connection but if that is unsuccessful, the court shall reschedule the hearing no later than one week after the originally scheduled hearing. 

 

The bill also addresses a party’s ability to file motions or other documents electronically and request that filing fees be waived. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:         Brokers
                              Landlord/Tenant
                              Consumers
 

House Bill 23-1233: Concerning Energy Efficiency and Adopting Rules Facilitating Electric Vehicle Charging At Multifamily Buildings

House Bill 23-1233

Concerning Energy Efficiency, And, In Connection Therewith, Requiring The State Electrical Board To Adopt Rules Facilitating Electric Vehicle Charging At Multifamily Buildings, Limiting The Ability Of The State Electrical Board To Prohibit The Installation of Electric Vehicle Charging Stations, Forbidding Private Prohibitions On Electric Vehicle Charging And Parking, Requiring Local Governments To Count Certain Spaces Served By An Electric Vehicle Charging Station For Minimum Parking Requirements, Forbidding Local Governments From Prohibiting The Installation Of Electric Vehicle Charging Stations, Exempting Electric Vehicle Chargers From Business Personal Property Tax, And Authorizing Electric Vehicle Charging Systems Along Highway Rights-Of-Way

 

Sponsors: BY REPRESENTATIVE(S) Mauro and Valdez, Brown, Woodrow, Bacon, Boesenecker, deGruy Kennedy, Dickson, Duran, Epps, Froelich, Garcia, Hamrick, Jodeh, Joseph, Kipp, Lindsay, Mabrey, Michaelson Jenet, Ortiz, Parenti, Sirota, Story, Amabile, English, Gonzales-Gutierrez, McCormick, Velasco, Vigil, Willford; also SENATOR(S) Priola and Winter F., Cutter.

 

Signed by the Governor: May 23, 2023.

 

Summary: The Colorado General Assembly has repeatedly issued legislative declarations regarding its desire to reduce greenhouse gas emissions and has identified vehicle electrification as a key strategy for the transportation sector. HB23-1233 acknowledges that it is less expensive to build electric-vehicle-capable parking spaces at the time of initial construction rather than through retrofitting after initial construction. 

 

The bill sets forth a time frame by which the state electrical board will prepare rules surrounding EV power transfer infrastructure for multifamily buildings, applying to new construction and major renovations of multifamily buildings. These rules are required to be prepared by September 1, 2023 and shall take effect sometime after March 1, 2024. 

 

For tenants, a tenant may install, at their own expense, a Level 1 or Level 2 electric vehicle charging system. The amended provisions pertaining to tenants, found in section 38-12-601, C.R.S. apply to both residential rental properties and commercial rental properties.

 

For Common Interest Communities (“CICs”), which include HOAs, POAs, condominiums, and cooperatives, the bill encourages allowing electric charging stations and the parking of electric vehicles. The bill also further clarifies that a board shall not prohibit a unit owner from the installation of a Level 1 or Level 2 electric vehicle charging system on or in: (1) a unit, (2) an assigned or deeded parking space that is part of or assigned to a unit, or (3) a parking space that is accessible to both the unit owner and other unit owners. The board shall also not restrict parking based on a vehicle being a plug-in hybrid vehicle or plug-in electric vehicle. 

 

Effective Date: May 23, 2023.

 

The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety. 

 

Related Tags:         Division of Real Estate Generally
                              HOA Center
                              Landlord/Tenant
                              Consumers

 

House Bill 23-1254: Concerning the Conditions Covered Under the Warranty of Habitability and Requirements to Remediate a Residential Premises Damaged Due to and Environmental Public Health Event

House Bill 23-1254

Concerning The Conditions Covered Under the Warranty Of Habitability For Residential Premises, and In Connection Therewith, Specifying A Landlord’s Requirements To Remediate A Residential Premises That Is Damaged Due To An Environmental Public Health Event, Expanding What Constitutes Retaliation By A Landlord, and Describing Situations In Which A Tenant May Terminate A Lease After the Premises Has Been Damaged Due To An Environmental Public Health Event

 

Sponsors: BY REPRESENTATIVE(S) Brown and Mabrey, Amabile, deGruy Kennedy, Dickson, English, Epps, Froelich, Garcia, Gonzales-Gutierrez, Herod, Jodeh, Joseph, Lindsay, Lindstedt, Michaelson Jenet, Ortiz, Ricks, Sharbini, Sirota, Story, Titone, Velasco, Vigil, Weissman, McCluskie; also SENATOR(S) Cutter, Buckner, Exum, Fields, Hansen, Jaquez Lewis, Priola, Sullivan.

 

Signed By the Governor: May 12, 2023.

 

Summary: Many residents of Colorado are aware of the extent of the damage of environmental effects of catastrophic events. A prime example of such an event is the Marshall Fire, which ravaged numerous communities, burned over 6,000 acres, damaged nearly 1,100 homes, and resulted in more than $500,000,000.00 in damages. 

 

This bill addresses the resulting health concerns and habitability issues, with the intention to return residential premises to “a condition that protects the health and safety of residents from environmental contaminants, such as smoke, ash, and other toxic materials related to an environmental public health event.”

 

Pursuant to the Act, the warranty of habitability between a landlord and tenant is breached by the landlord if a residential premises is:

 

1. Uninhabitable or unfit for human habitation, or
2. Not in compliance with the standards described in section 38-12-505(1)(b)(XIII) for the remediation and clean up of a residential premises that has been damaged due to an environmental public health event.

 

 

In such an event, a tenant should give the landlord written or electronic notice of the condition and shall retain sufficient proof of delivery of the notice.  Upon receipt, the landlord shall respond not more than 24 hours after receiving notice, except that the landlord may take up to 72 hours to respond to the tenant in the case that the residential premises is inaccessible because of damage due to an environmental public health event. 

 

The response must indicate the landlord’s intentions for remedying the condition including an estimate of when the remediation will commence and when it will be completed.  It must also inform the tenant of the landlords other responsibilities (pursuant to sub-section (4)(a) of this section 38-12-53, C.R.S.) 

 

Remediation shall be completed within a reasonable amount of time and shall be completed at the landlord’s expense. Furthermore, upon remediation, landlord shall provide documentation that demonstrates compliance with the standards described in section 38-12-505(1)(b)(XIII), C.R.S. to the tenant.  Landlords should understand that evidence of a submission of an insurance claim does not constitute evidence of remediation

 

The definition of “Uninhabitable Residential Premises” is expanded to include “compliance with all applicable standards from the American National Standards Institute, or its successor organization, for the remediation and clean up of a residential premises following an environmental public health event.

 

A Tenant has the right to terminate the lease if the residential premises is uninhabitable and (a) the landlord has not been able to remediate the conditions of the residential premises so that it is safe for habitability within 60 business days after the landlord has received notice of the habitability issue from the tenant, (b) the tenant gave the landlord written or electronic notice that the premises is not safe for habitability due to damage from an environmental public health event, and (c) the landlord is not able to provide adequate alternative housing accommodations for the tenant for the duration of the time that the residential premises is being remediated. 

 

If the tenant is a member of a vulnerable population, the standards for termination of the lease differ.  First of all, a “Vulnerable Population” is defined as “children, individuals with asthma, individuals with disabilities, individuals who are pregnant, or any other group of individuals that has health conditions that could make the individuals more susceptible to environmental contaminants.”  For Vulnerable Populations, a tenant may terminate a lease if: (a) the tenant has given written or electronic notice, (b) the landlord has not been able to remediate the conditions of the residential premises, (c) the landlord is not able to provide adequate alternative housing accommodations for the tenant for the duration of the time that the residential premises is being remediated, and (d) tenant has provided the landlord with evidence from a licensed medical doctor that the tenant’s condition is such that continued living in the residential premises would be detrimental to the tenant’s health, safety, or quality of life. 

 

The Act also addresses and prohibits retaliation, providing specific examples. 

 

Effective Date: May 12, 2023.

 

The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety. 

 

Related Tags:         Brokers
                             Landlord/Tenant
                              Consumers

 

House Bill 23-1266: Concerning the Suspension of A Reverse Mortgage When A Force Majeure Renders a Property Uninhabitable

House Bill 23-1266

Concerning The Suspension Of A Reverse Mortgage From The Repayment Requirement When A Force Majeure Renders The Subject Property Uninhabitable As A Principal Residence

 

Sponsors: BY REPRESENTATIVE(S) Brown and Ricks, Amabile, Bird, Dickson, English, Hamrick, Herod, Jodeh, Lieder, Lindsay, Lindstedt, McCormick, Michaelson Jenet, Snyder, Valdez, Weissman; also SENATOR(S) Jaquez Lewis and Buckner, Cutter, Exum, Fields, Marchman, Moreno, Priola, Winter F., Fenberg.

 

Signed by the Governor: June 7, 2023.

 

Summary: Reverse mortgages are a useful tool that has evolved to offer solutions to many Coloradans at various stages of life. However, despite the utility of reverse mortgages, consumers should be cognizant of the express terms of a reverse mortgage program. One such condition in most reverse mortgages is that the lender must reside in the property. The Colorado General Assembly has addressed the temporary absence from the home resulting from a natural disaster or other force majeure which renders the home temporarily uninhabitable, provided that:

 

  1.  
    1.  
      1. The borrower is engaged in repairing the home with the intent to reoccupy the home as a principal residence or to sell the home.
      2. The borrower stays in communication with and reasonably responds to inquiries from the lender while the home is being repaired.
      3. The borrower complies with all other terms and conditions of the reverse mortgage.
      4. The repairing or rebuilding of the home does not reduce the lender’s security. 

 

 

Consumers and practitioners alike should be aware that the provisions of HB23-1266 apply to reverse mortgages for a home rendered uninhabitable by a natural disaster or other force majeure that occurs on or after the effective date of this act. 

 

Effective Date: June 7 ,2023.

 

The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety

 

Related Tags:         Mortgage Loan Originators
                              Consumers

 

House Bill 23-1287: Concerning a County's Regulatory Authority Related to Short-Term Rentals of Lodging Units

House Bill 23-1287

Concerning A County’s Regulatory Authority Related To Short-Term Rentals Of Lodging Units

 

Sponsors: BY REPRESENTATIVE(S) McCluskie and Lukens, Amabile, Bird, Brown, Catlin, Dickson, Duran, Froelich, Gonzales-Gutierrez, Jodeh, Kipp, Lindsay, Mabrey, McCormick, McLachlan, Michaelson Jenet, Pugliese, Sirota, Snyder, Story, Velasco, Vigil, Weissman, Willford, Woodrow; also SENATOR(S) Roberts and Will, Hansen, Priola.

 

Signed by the Governor: June 5, 2023.

 

Summary: In Colorado, the board of county commissioners may adopt ordinances for control or licensing of those matters of purely local concern. Among other things, board of county commissioners may license and regulate an owner or owner’s agent who rents or advertises the owner’s lodging unit for a short-term rental and vacation rental services.

 

For vacation rental services, a board of county commissioners may require a vacation rental service that displays a short-term rental for a lodging unit to obtain a local short-term rental license or permit number and require the removal of a listing if the short-term rental license or permit is suspended or revoked or has been issued a notice of violation.

 

Section 30-15-401(1)(s)(I), C.R.S., defines an owner’s agent, but that definition expressly exempts “a vacation rental service, except that when a vacation rental service provides additional services for the owner that are related to the owner’s lodging but unrelated to providing a means of offering the lodging unit for short-term rentals, then the board of county commissioners may license and regulate the vacation rental service as an owner’s agent. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:         Brokers
                              Landlord/Tenant
                              Consumers

 

Senate Bill 016: Concerning Measures to Promote Reductions In Greenhouse Gas Emissions In Colorado

Senate Bill 23-016

Concerning Measures To Promote Reductions In Greenhouse Gas Emissions In Colorado, And, In Connection Therewith, Making An Appropriation

 

Sponsors: BY SENATOR(S) Hansen, Buckner, Cutter, Danielson, Exum, Fields, Gonzales, Jaquez Lewis, Kolker, Marchman, Moreno, Priola, Rodriguez, Winter F., Fenberg; also REPRESENTATIVE(S) McCormick and Sirota, Amabile, Bacon, Boesenecker, Brown, deGruy Kennedy, Dickson, English, Epps, Froelich, Gonzales-Gutierrez, Hamrick, Herod, Jodeh, Joseph, Kipp, Lindsay, Lindstedt, Mabrey, McLachlan, Ricks, Sharbini, Titone, Valdez, Velasco, Vigil, Weissman, Willford, Woodrow, Story, Garcia, Michaelson Jenet, Ortiz, Parenti, McCluskie.

 

Signed by the Governor: May 11, 2023.

 

Summary: Generally, SB23-016 addresses the various climate goals of the State of Colorado.  By and through the Colorado energy office, the State of Colorado is tasked with working with communities, utilities, and private and public organizations to attain the following goals:

 

1. Support achieving legislative goals to reduce statewide greenhouse gas pollution
2. Make progress towards eliminating greenhouse gas pollution from electricity generation, gas utilities, and transportation
3. Implement the renewable energy standard established in section 40-2-124, C.R.S.
4. Support the deployment of renewable energy, such as wind, hydroelectricity, solar, clean hydrogen, and geothermal
5. Evaluate, and when appropriate, support the deployment of cleaner energy sources such as clean hydrogen, geothermal, recovered methane, recovered heat, and advanced nuclear
6. Support the deployment of energy efficiency and energy load management technologies and practices
7. Evaluate, and where appropriate, support the deployment of innovative energy technologies as described in section 40-12-123, C.R.S.
8. Support the deployment of energy storage systems including both long-duration and short duration energy storage
9. Support the implementation of clean heat plans pursuant to section 40-3.2-108,C.R.S.
10. Support widespread transportation electrification
11. Support beneficial electrification, as defined in section 40-1-102(1.2) in the building, industrial, and oil and gas sectors
12. Support industrial emissions reductions
13. Support pollution reduction through carbon capture and sequestration and other forms of carbon management, and
14. Support sustainable land-use patterns that reduce energy consumption and greenhouse gas pollution.  

 

In carrying out these goals, the bill addresses a variety of approaches including drinking water, oil and gas wells, and renewable energy generation devices.

For purposes of the Division of Real Estate, and the HOA Information & Resource Center, the following sections apply.  At section 38-30-168(1)(b), the definition of “renewable energy generation device” is expanded to now include a “heat pump system, as defined in section 39-26-732(2)(c), C.R.S.” In addition, the Colorado Common Interest Ownership Act (“CCIOA”) is amended to clarify the definition of an “Energy Efficiency Measure”, which includes “a heat pump system, as defined in section 39-26-732(2)(c), C.R.S.”  Reference to “Energy Efficiency Measure” can be found at section 38-33.3-106.7 of CCIOA. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023

 

Related Tags:         Landlord/Tenant
                              HOA Center
                              Consumers

 

Senate Bill 23-077: Concerning Prohibiting The Inclusion of Certain Terms In A Broker Contract

Senate Bill 23-077

Concerning Prohibiting The Inclusion of Certain Terms In A Broker Contract

 

Sponsors: BY SENATOR(S) Hinrichsen, Gonzales; also REPRESENTATIVE(S) Froelich and Taggart, Boesenecker, Dickson, Hamrick, Jodeh, Lindsay, Lindstedt, Mauro, Ricks, Woodrow.

 

Signed by the Governor: April 03, 2023.

 

Summary: This Senate Bill was introduced on January 27, 2023 and was signed by the Governor on April 3, 2023. 

 

SB23-077 directly affects licensees.  It defines Brokerage Engagement Contract as a:

 

written contract in which a seller, buyer, landlord, or tenant of a residential premises becomes the client of a broker or agrees to retain the services of a broker in the future and promises to pay the broker a valuable consideration or agrees that the broker may receive a valuable consideration from another person in exchange for the broker:

 

                          (a) Producing a seller, buyer, tenant, or landlord ready, able, and willing to sell, buy, or rent the residential premises; or
                              (b) Performing other services. 

 

 

The same section 12-10-403.5, C.R.S. states that a broker engagement contract MUST NOT:

 

 

(a) Purport to be a covenant running with the land or to be binding on future owners of interests in the real property;
(b) Allow for assignment of the right to provide service without notice and agreement of the owner of the residential premises; or
(c) Purport to create a recordable lien, encumbrance, or other real property security interest.  Any such lien, encumbrance, or other real property security interest is void and unenforceable.

Furthermore, for an abundance of clarity for consumers and licensees alike, the bill includes exceptions which are as follows:

 

(a) A home warranty service contract, as defined in section 12-10-901(2)(a);
(b) A building warranty or similar product that covers the cost of maintenance of a major housing or building system, such as a plumbing or an electrical system, for a specific period of time after the date on which a house or building is sold;
(c) An Insurance contract;
(d) An option to purchase, a put requirement to purchase, a right or first offer, or a right of refusal;
(e) A declaration created in the formation of a common interest community, as defined in section 38-33.3-103(8), or an amendment to the declaration;
(f) A maintenance or repair agreement entered into by a unit owner’s association as defined in section 38-33-3-103(3);
(g) A loan or a commitment to make or receive a loan, which loan or commitment is secured by real estate; 
(h) A security agreement under the “Uniform Commercial Code” relating to the sale or rental of personal property or fixtures;
(i) Water, sewer, electrical, telephone, cable, or other regulated utility service providers; or
(j) A property management agreement by which the owner of real property contracts with a party to provide management services for the maintenance, ownership, operation, or lease of a residential premises. 

 

Pursuant to the bill, should a person now offer a consumer a broker engagement contract which violates subsection (2) of section 12-10-403.5, C.R.S., they have committed an unfair or deceptive trade practice, which is defined in section 6-1-105(uuu), C.R.S. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

More specifically, unless a referendum is initiated, August 7, 2023.

 

 

Related Tags:         Brokers
                              Appraisers
                              Mortgage Loan Originators
                              Consumers

 

Senate Bill 23-110: Concerning Transparency For Metropolitan Districts

Senate Bill 23-110

Concerning Transparency For Metropolitan Districts

 

Sponsors: BY SENATOR(S) Marchman and Zenzinger, Gardner, Winter, F.; Also REPRESENTATIVE(S) Kipp and Taggart, Lindstedt, Bird, Bockenfeld, DeGraaf, Frizell, Mauro, Ricks, Weinberg.

 

Signed by the Governor: April 03, 2023.

 

Summary: Senate Bill 23-110 was introduced on January 31, 2023 and was signed by the Governor on April 3, 2023. 

 

Service Plan Requirements: This bill imposes new requirements which must be included in the service plan for Metropolitan Districts. 

 

Of note, it requires that for any service plan submitted on or after January 1,2024 to a board of county commissioners, the service plan shall contain the “maximum mill levy that may be imposed for the payment of general obligation indebtedness” and the “maximum debt that may be issued by the district.”   See sections 32-1-202(2)(m) and (n) respectively. 

 

The bill also contains substantially similar provisions for proposed metropolitan districts which submit a service plan on or after January 1, 2024 to a municipality or municipalities.  Those provisions can be found at section 32-1-204.5, C.R.S.

 

Annual Meeting & Meeting Notice: Next, the bill amends section 32-1-903, C.R.S. and now requires that for any metropolitan district (1) organized after January 1, 2000 and (2) that has residential units within its boundaries to now “conduct an annual meeting in addition to any other board meetings held pursuant to this section.”

 

At this annual meeting, the board is prohibited from taking any official action but must include the following:

 

1. The status of any public infrastructure projects [section 32-1-903(6)(a)(I), C.R.S.],
2. The status of any outstanding bonds [section 32-1-903(6)(a)(I), C.R.S.],
3. A review of unaudited financial statements for that calendar year [section 32-1-903(6)(a)(II), C.R.S.],
4. An opportunity to the public to ask questions about the metropolitan district [section 32-1-903(6)(a)(III), C.R.S.], and
5. A public comment period at which the board will adopt the annual budget as required by section 29-1-103, C.R.S. See section 32-1-903(7), C.R.S.

 

The bill also has requirements for how and where the annual meeting can be held.  The meeting must be held either in person or virtually or both, however, should the meeting only be held in person, it must be held at a physical location within five miles from the metropolitan district’s boundaries. See section 32-1-903(6)(b).

 

 

The bill also addresses notice of the meeting.  Notice of the annual meeting must be provided in accordance with section 32-1-903(2), C.R.S. and be posted on the metropolitan district’s website. See section 32-1-903(6)(c). 

 

Financial Powers: Changing gears somewhat, the bill amends the common financial powers, found at section 32-1-1101, C.R.S. as follows. Section 24-18-109, C.R.S. sets forth certain disclosures prior to issuance of debt to a director of the metropolitan district.  The board must receive a statement that the interest rate of such debt does not exceed the lesser of (1) the interest rate allowed under subsection (7)(b) of this section or (2) the current market interest rate based on criteria determined by the registered municipal advisor. 

 

Real Estate Transaction Disclosure: Important for all real estate licensees is that for all property sales on or after January 1, 2024 which are located in the boundaries of a metropolitan district organized on or after January 1, 2000, the seller shall provide the official website established by the metropolitan district on the Colorado Real Estate Commission (“CREC”) approved Seller’s Property Disclosure form or another concurrent writing. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:         Brokers
                              Metropolitan Districts
                              Consumers

 

Senate Bill 23-148: Concerning Property Used To Illegally Manufacture Drugs

Senate Bill 23-148

Concerning Property Used To Illegally Manufacture Drugs, And, In Connection Therewith, Making An Appropriation

 

Sponsors: BY SENATOR(S) Cutter, Buckner, Coleman, Exum, Gonzales, Hansen, Hinrichsen, Jaquez Lewis, Marchman, Moreno, Priola; also REPRESENTATIVE(S) Lindsay, Amabile, Bird, Brown, Dickson, Jodeh, Marshall, McCormick, Michaelson Jenet, Snyder.

 

Signed By The Governor: June 2, 2023

 

Summary: The Colorado General Assembly has made a determination that a public database shall be created for use after January 1, 2024.  This database is for residential real property that has been used as an illegal drug laboratory involving methamphetamine.  Five (5) years after the certificates of compliance which are issued by a contractor that the property was demolished or has met the clean-up standards of section 25-18.5-103, C.R.S., should be removed from the database. 

 

Law Enforcement Disclosure: If discovered by a law enforcement agency, an illegal drug laboratory shall be reported for inclusion in the database.  The information to be included for the database shall be (1) the property’s address, (2) the name of the property owner, and (3) any other information required by agency (Colorado Public Health and the Environment) rule.

 

Next, the bill amends the definition of “uninhabitable residential premises” to include the following language:

 

An uninhabitable residential premises is a property that “substantially lacks any of the following characteristics:

 

(XIV) Remediation in compliance with article 18.5 of Title 25 if the residential premises was used as an illegal drug laboratory, as defined in section 25-18.5-101(8), involving methamphetamine.”

 

Seller Disclosure: Relevant for all real estate practitioners and their sellers, the bill amends section 38-35.7-103, C.R.S. to state that if the seller becomes aware that the property was an illegal methamphetamine drug laboratory, remediates the property, and receives the necessary certificates of compliance, then the seller is not required to disclose that the property was used as a methamphetamine drug laboratory to a buyer.  In addition, five years after the later date on the certificates of compliance issued, the property is no longer included in the database. 

 

This section 38-35.7-103, C.R.S. applies to “residential real property” or “property” that is defined as “a manufactured home, mobile home, condominium, townhome, home sold by the owner, a financial institution, or the or the federal department of housing and urban development, rental property, including an apartment, and short-term residence such as a motel or hotel.”

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:         Brokers
                              Appraisers
                              Mortgage Loan Originators
                              Landlord/Tenant
                              Consumers

 

Senate Bill 23-178: Concerning Removing Barriers To Water-Wise Landscaping In Common Interest Communities

Senate Bill 23-178

Concerning Removing Barriers To Water-Wise Landscaping In Common Interest Communities

 

Sponsors: BY SENATOR(S) Jaquez Lewis and Will, Marchman, Priola, Bridges, Buckner, Coleman, Cutter, Exum, Fields, Ginal, Gonzales, Hansen, Hinrichsen, Kolker, Moreno, Roberts, Sullivan, Fenberg; also REPRESENTATIVE(S) McCormick and Lindsay, Amabile, Bird, Boesenecker, Brown, Dickson, Froelich, Hamrick, Herod, Jodeh, Kipp, Martinez, McLachlan, Michaelson Jenet, Ortiz, Parenti, Ricks, Sirota, Snyder, Titone, Valdez, Velasco, Weissman, Willford, Woodrow, McCluskie.

 

Signed by the Governor: May 17, 2023

 

Summary: This Senate Bill was introduced on March 3, 2023 and was signed by the Governor on May 17, 2023. 

 

This bill allows unit owners residing in a Common Interest Community (homeowners association, property owners association, recreational association, cooperative, etc.) greater flexibility in deciding whether to install xeriscaping, non-vegetative turfgrass, or drought-tolerant vegetative landscapes on property the unit owner is responsible for maintaining.  Previously, such property could have included a limited common element.  Now, such property could also include any right-of-way or tree lawn under the purview of the unit owner. 

 

An essential element of this bill is that this new law applies only to a unit that is a single-family detached home and does not apply to a unit that is a single-family attached home that shares one or more walls with another unit or a condominium. 

 

As previously enacted, an association may adopt and enforce design or aesthetic guidelines or rules that apply to landscape installations that regulate the type, number, and placement of drought-tolerant plantings and hardscapes that may be installed on property.  However, of particular import, now an association must:

 

1. Not prohibit the use of non-vegetative turfgrass in the backyard of a residential property; 
2. Not unreasonably require the use of hardscape on more than twenty percent of the landscaping area of a unit owner’s property;
3. Allow a unit owner an option that consists of at least eighty percent drought-tolerant plantings; and
4. Not prohibit vegetable gardens in the front, back, or side yard of a unit owner's property.  "Vegetable garden" means a plot of ground or an elevated soil bed in which pollinator plants, flowers, or vegetables or herbs, fruits, leafy greens, or other edible plants are cultivated. 

In addition, each association shall select at least three preplanned water-wise garden designs that are preapproved for installation in front yards within the common interest community.  Such designs may be downloaded from the Colorado State University extension plant select organization (or from a municipality, utility, or other entity that creates such garden designs).  In order to better assist HOA interested parties, a link to the Colorado State University Extension Plant Select organization can be found at: https://plantselect.org/

 

For illustrative purposes only, three such preplanned water-wise garden designs an association might select from the above website could include:

 

1. High Elevation Planting Design Front Yard (Up to 8125’) by Annie Barrow
2. Waterwise Cottage - Lauren Springer Ogden Collection
3. Dry Shade Garden design from Garden Thyme, Inc.

If an association has a public website, it shall post information concerning the preapproved garden designs.  If an association does not have a website, it is encouraged to notify all unit owners in writing of the new preapproved garden designs or add the preapproved garden designs to its association governing documents (as well as notify unit owners of any subsequent amendments or changes in the future).  A unit owner does not need to obtain association approval prior to selecting one of the preapproved garden designs, and a unit owner's decision in selecting one of the preapproved garden designs shall be considered by the association to be in compliance with the association’s aesthetic guidelines.  An association shall also allow a unit owner to use reasonable substitute plants when a plant in a preapproved garden design is not available. 

 

If an association knowingly violates this act, a unit owner who is affected by the violation may bring a civil action to restrain further violation and to recover up to a maximum of five hundred dollars ($500.00) or the unit owner’s actual damages, whichever is greater.  Unit owners should note that before a unit owner commences a civil action, the unit owner must notify the association in writing of the violation and allow the association forty-five days after receipt of the notice to cure the violation.  Unit owners should consider how they will prove that they provided notice to the association.  Examples of “proof” might include service of process or certified mail with return receipt requested, but the bill does not identify what constitutes “proof”.

 

An association may still:

 

1. Adopt bona fide safety requirements consistent with applicable landscape codes or recognized safety standards for the protection of persons and property.
2. Prohibit or restrict changes that interfere with the establishment and maintenance of fire buffers or defensible spaces; or 
3. Prohibit or restrict changes to existing grading, drainage, or other structural landscape elements necessary for the protection of persons and property.

The bill also amends section 37-60-126, C.R.S., stating that any section of a restrictive covenant or of the declaration, bylaws, or rules and regulations of a Common Interest Community that prohibits or limits xeriscape, prohibits or limits the installation or use of drought-tolerant vegetative or nonvegetative landscapes, requires cultivated vegetation to consist wholly or partially of turf grass, or prohibits the use of nonvegetative turf grass in the backyard of a residential property is hereby declared contrary to public policy and, on that basis, is unenforceable

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

Related Tags:         Brokers
                              HOA Center
                              Consumers

 

Senate Bill 23-206: Concerning Information About Radon In Residential Real Property Transactions

Senate Bill 23-206

Concerning Information About Radon In Residential Real Property Transaction

 

Sponsors: BY SENATOR(S) Winter F., Buckner, Cutter, Exum, Fields, Gonzales, Jaquez Lewis, Marchman, Moreno, Priola, Fenberg; also REPRESENTATIVE(S) Michaelson Jenet and Sirota, Bacon, Bird, Boesenecker, Brown, Duran, English, Hamrick, Joseph, Kipp, Lieder, Lindsay, Lindstedt, Mabrey, Ricks, Snyder, Valdez, Velasco, Willford.

 

Signed By The Governor: June 5, 2023.

 

Summary: Radon is an odorless, colorless, tasteless, and radioactive gas that is naturally occurring in soil and groundwater throughout Colorado.  It can enter buildings through openings in foundations. Unless buildings are property vented, radon accumulates in buildings.  Due to the risk to public health and safety, the United States Environmental Protection Agency (“USEPA”) recommends that homes should be tested every two years and the standard set by the USEPA for recommended action is four picocuries per liter (pCi/L).  Accordingly, SB23-206 sets forth requirements for clear disclosure during real estate transactions.

 

After understanding the purpose and goals, as set forth in the legislative declarations of SB23-206, all Colorado licensees, and buyers and sellers and landlords and tenants should understand the following:

 

1. A buyer of residential real property has the right to be informed of whether the property has been tested for elevated levels of radon. Therefore, each contract of sale for residential real property needs to contain the following disclosure in bold-faced type as follows:

          THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT STRONGLY RECOMMENDS THAT ALL HOME BUYERS HAVE AN INDOOR RADON TEST PERFORMED BEFORE PURCHASING RESIDENTIAL REAL PROPERTY AND RECOMMENDS HAVING THE RADON LEVELS MITIGATED IF ELEVATED RADON CONCENTRATIONS ARE FOUND. ELEVATED RADON CONCENTRATIONS CAN BE REDUCED BY A RADON MITIGATION PROFESSIONAL.

RESIDENTIAL REAL PROPERTY MAY PRESENT EXPOSURE TO DANGEROUS LEVELS OF INDOOR RADON GAS THAT MAY PLACE THE OCCUPANTS AT RISK OF DEVELOPING RADON-INDUCED LUNG CANCER. RADON, A CLASS A HUMAN CARCINOGEN, IS THE LEADING CAUSE OF LUNG CANCER IN NONSMOKERS AND THE SECOND LEADING CAUSE OF LUNG CANCER OVERALL. THE SELLER OF RESIDENTIAL REAL PROPERTY IS REQUIRED TO PROVIDE THE BUYER WITH ANY KNOWN INFORMATION ON RADON TEST RESULTS OF THE RESIDENTIAL REAL PROPERTY.

 

Furthermore, each contract of sale for residential real property or seller’s property disclosure for residential real property must contain disclosures pertaining to: (a) any knowledge the seller has of the residential real property’s radon concentrations including whether a radon test or tests have been conducted, the most recent records and reports pertaining to radon concentrations, a description of any radon concentrations detected or mitigation or remediation performed, and information regarding whether a radon mitigation system has been installed, and (b) an electronic or paper copy of the most recent brochure from the Colorado Department of Public Health and Environment which provides advice about radon in real estate transactions. 

 

The Colorado Real Estate Commission (“CREC”) is directed to prepare rules regarding the contract for the purchase and sale of residential real property within its jurisdiction, as well as rules that specify the format and manner for delivery of the brochure. 

 

2. A tenant that rents residential real property has the right to be informed of whether the property has been tested for elevated levels of radon. Therefore, each contract of sale for residential real property needs to contain the following disclosure in bold-faced type as follows: 

 

 

          THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT STRONGLY RECOMMENDS THAT ALL TENANTS HAVE AN INDOOR RADON TEST PERFORMED BEFORE LEASING RESIDENTIAL REAL PROPERTY AND RECOMMENDS HAVING THE RADON LEVELS MITIGATED IF ELEVATED RADON CONCENTRATIONS ARE FOUND. ELEVATED RADON CONCENTRATIONS CAN BE REDUCED BY A RADON MITIGATION PROFESSIONAL.

 

RESIDENTIAL REAL PROPERTY MAY PRESENT EXPOSURE TO DANGEROUS LEVELS OF INDOOR RADON GAS THAT MAY PLACE THE OCCUPANTS AT RISK OF DEVELOPING RADON-INDUCED LUNG CANCER. RADON, A CLASS A HUMAN CARCINOGEN, IS THE LEADING CAUSE OF LUNG CANCER IN NONSMOKERS AND THE SECOND LEADING CAUSE OF LUNG CANCER OVERALL. A LANDLORD IS REQUIRED TO PROVIDE THE TENANT WITH ANY KNOWN INFORMATION ON RADON TEST RESULTS OF THE RESIDENTIAL REAL PROPERTY.

 

In addition, landlord shall disclose: (a) any knowledge the landlord has of the residential real property’s radon concentrations including whether a radon test or tests have been conducted, the most recent records and reports pertaining to radon concentrations, a description of any radon concentrations detected or mitigation or remediation performed, and information regarding whether a radon mitigation system has been installed including a system description and documentation, and (b) a copy of the most recent brochure from the Colorado Department of Public Health and Environment which provides advice about radon in real estate transactions. 

 

The tenant shall acknowledge receipt of the information described above by signing the disclosure. 

 

Importantly, if the landlord fails to provide the aforementioned written disclosures or make a reasonable effort to mitigate radon within one hundred eighty (180) days after being notified that radon levels are four picocuries per liter or more, a tenant may void a lease agreement and vacate the premises. However, on or after January 1, 2026, a tenant’s right to terminate the lease does not apply to a lease agreement that is one year or less in duration. 

 

Landlords and tenants should further understand that failure to comply with section 38-12-803, C.R.S. is deemed to be a breach of the warranty of habitability, as set forth in section 38-12-503, C.R.S.

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023 AND applies to contracts and lease agreements entered into on or after the effective date of this act.

 

Related Tags:         Brokers
                              Appraisers
                              Mortgage Loan Originators
                              Landlord/Tenant
                              Consumers

 

Senate Bill 23-286: Concerning Improving Public Access To Government Records

Senate Bill 23-286

Concerning Improving Public Access To Government Records

 

Sponsors: BY SENATOR(S) Hansen, Bridges, Exum, Moreno, Priola; also REPRESENTATIVE(S) Snyder and Soper, Brown, Hamrick, Lindsay, Ricks, Titone.

 

Signed By The Governor: June 6, 2023.

 

Summary: The Colorado Open Records Act (“CORA”) dictates that it is the public policy of the State of Colorado that all public records shall be open for inspection by any person at reasonable times with certain exceptions.  SB23-286 amends several provisions of CORA.

 

Proof of Identification Of Requester: Section 24-72-203, C.R.S. now provides that exceptions to the aforementioned policy include those “otherwise required by section 24-72-204(3.5)(g), and except when a record requested is confidential and accessible only on the basis that the requester is the person in interest, a custodian of public records shall not require a requester to provide the custodian with any form of identification to request or inspect records pursuant to this Part 2.”  Stated another way, in the event that a record is confidential, the custodian of record can request identification to allow inspection. 

 

Digital Copies, When Available: Next, the bill emphasizes a preference for digital copies of records.  Accordingly, unless otherwise requested by the requester, a public record stored in a digital format that is searchable, shall be provided a digital copy of the record. In addition, a custodian of records is directed to “not convert a digital public record into a non-searchable format before transmission.”

 

Denial/Redaction of Records: Section 24-72-204, C.R.S. allows a custodian of records grounds to deny inspection of certain records.  SB23-286 now allows denial of:

 

          “(VII) Electronic mail addresses, telephone numbers, or home addresses provided by a person to an elected official, agency, institution, or political subdivision of the state for the purposes of future electronic communications to the person from the elected official, agency, institution, or political subdivision.”

 

Documents that are now subject to disclosure are records related to records of sexual harassment complaints made against an elected official if the investigation concludes that the elected official is culpable, except that the identity of any accuser and any other information that would identify any such person must be redacted. 

 

Electronic Mail Retention Policy:  On or before January 1, 2024, members of the General Assembly, the Governor’s Office and each office of the Governor, and each state agency shall submit a report to the Legislative Counsel of the General Assembly outlining its electronic mail retention policy. 

 

Fees Associated With Document Requests: Section 24-72-205, C.R.S. expressly states that records custodians shall not charge a per-page fee for providing records in a digital or electronic formal. 

 

Electronic Payments/Credit Card Payments: Finally, if a custodian of records accepts payments for any other service by credit card or electronic payment, the custodian must allow the requester to pay any fee or deposit with a credit card or via an electronic payment.  The custodian may require the requester to pay any service charge or fee imposed by the payment processor. 

 

Effective Date: 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

 

More specifically, unless a referendum is initiated, August 7, 2023.

 

Related Tags:      CORA
                           Consumers

 

 

 

 

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