HB25-1240 Summary

HB25-1240: Protections For Tenants With Housing Subsidies
 

Prime Sponsors: Representative Junie Joseph, Representative Meg Froelich, Senator Faith Winter, Senator Katie Wallace

Introduced: February 12, 2025

Signed: May 29, 2025

Effective Date: May 29, 2025

Summary:

The Colorado General Assembly continues to search for solutions to housing stability across the state of Colorado.  In particular, the Colorado General Assembly has expressed concern that tenants who rely on housing subsidies are disproportionately vulnerable to housing instability through several vectors, including, but not limited to:

• Discrimination,
• Undue fees,
• Other barriers.

Accordingly, protection of this vulnerable population is essential.  This bill requires that the landlord may not require the tenant to vacate a dwelling unit pursuant to a residential lease before 30 days after the notice to vacate.  

The bill also provides an important clarification of the warranty of habitability at section 38-12-507, C.R.S., stating that if a tenant proves an affirmative defense (a violation of the warranty of habitability), the landlord shall be ordered to reimburse the tenant “any difference in rent between the reduced fair rental value and any greater amount of rent that was paid”, clarifying that such reimbursement shall take place regardless of whether part or all of the rent was paid by the tenant or by a housing subsidy issued to the tenant.  

The bill also expands the definition of unfair housing practices.  It is now prohibited for a landlord to fail:

1. To make reasonable efforts to timely respond to requests for information and documentation necessary for a rental assistance application process; or
2. To cooperate with a tenant who is applying for rental assistance in good faith, including by refusing to provide documents that are required by a state government agency, a local government agency, or other administrating entity to support the tenant’s application.  

Finally, and importantly, if a court finds that a violation by a defendant concerns discrimination on the basis of an individual’s use of a housing subsidy, the court shall award the plaintiff “at least five thousand dollars”, however, the amount of relief authorized may vary:

1. If the respondent has not been adjudged to have committed a prior discriminatory housing practice, no more than ten thousand dollars.
2. If the respondent has been adjudged to have committed another discriminatory housing practice during the five-year period ending on the date of the filing of the charge, no more than twenty-five thousand dollars.
3. If the respondent has been adjudged to have committed two or more discriminatory housing practices during the seven-year period ending on the date of the filing of the charge, no more than fifty thousand dollars.  

The changes implemented by the bill apply to conduct occurring on or after the effective date of May 29, 2025.