House Bill 25-1240 Revised

A Bill for an Act

• Page 1, Line 101Concerning protections for tenants who use housing

• Page 1, Line 102subsidies.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill requires a landlord who initiates an eviction proceeding for nonpayment of rent against a tenant to comply with certain notice requirements set forth in federal law for tenants who use housing subsidies (covered tenants).

The bill prohibits a landlord from charging a covered tenant a late fee in an amount that exceeds $20.

Under current law, if a tenant proves as an affirmative defense to an eviction proceeding that the landlord violated the warranty of habitability, the court must order a reduction in the fair rental value of the dwelling unit and order the landlord to reimburse the tenant any difference in rent between the reduced fair rental value and any greater amount of rent that the tenant paid. The bill states that the landlord must reimburse this amount regardless of whether part or all of the rent was paid by the tenant or by a housing subsidy issued to the tenant.

Current law defines certain acts as unfair housing practices and exempts a landlord with 3 or fewer rental units from enforcement of several such definitions. Current law also states that a landlord with 5 or fewer single-family rental homes and no more than 5 total rental units is not required to accept federal housing choice vouchers. The bill repeals both of these exemptions. The bill also states that a landlord commits an unfair housing practice if the landlord fails to:

• Make reasonable efforts to timely respond to requests for information and documentation that is necessary for a rental assistance application program; or
• Cooperate with a tenant who is applying for rental assistance in good faith.

Current law allows a person to pursue relief for damages resulting from a landlord's commission of an unfair housing practice. The bill states that, if a court awards damages to a plaintiff who prevails in such an action, and the violation concerns discrimination on the basis of an individual's use of a housing subsidy, the court shall award at least $5,000 in damages. The bill also states that a calculation of such damages must include consideration of losses that a tenant may incur as a result of the tenant forfeiting their housing subsidy as a result of the landlord discriminating against the tenant based on the tenant's source or amount of income.

Current law provides that, in addition to relief awarded to a tenant in a private action, the Colorado civil rights commission may order a respondent found to have engaged in an unfair housing practice to pay a civil penalty in an amount that has no minimum and a maximum that varies based on whether the respondent has prior violations. The bill establishes a minimum penalty amount of $5,000 if a person commits any of certain unfair housing violations and the violation concerns discrimination on the basis of an individual's use of a housing subsidy.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly

• Page 2, Line 3finds that:

• Page 3, Line 1(a)  Access to stable and affordable housing is a fundamental right

• Page 3, Line 2and essential to a person's dignity, economic security, and ability to

• Page 3, Line 3thrive. Housing should not be denied based on a person's income source,

• Page 3, Line 4including the use of federal housing subsidies such as the housing choice

• Page 3, Line 5voucher program administered by the federal department of housing and urban development, known as "HUD".

• Page 3, Line 6(b)  Tenants who rely on housing subsidies are disproportionately

• Page 3, Line 7vulnerable to housing instability, often facing discrimination, undue fees,

• Page 3, Line 8and barriers to securing or maintaining housing. Such obstacles undermine their ability to build long-term stability and well-being.

• Page 3, Line 9(c)  Discrimination based on the use of housing subsidies creates

• Page 3, Line 10an unjust disadvantage for families, particularly families in communities

• Page 3, Line 11that have been historically marginalized, such as families with low

• Page 3, Line 12incomes, people of color, individuals with disabilities, and survivors of

• Page 3, Line 13domestic violence. This discrimination not only perpetuates poverty but also contributes to broader societal inequities.

• Page 3, Line 14(d)  The housing choice voucher program plays a vital role in

• Page 3, Line 15providing economic opportunities and ensuring that all families,

• Page 3, Line 16regardless of income, have access to decent, safe, and affordable housing.

• Page 3, Line 17However, tenants who use vouchers face systemic barriers, including landlord resistance, restrictive policies, and limited housing availability.

• Page 3, Line 18(e)  According to recent studies from 2023, Colorado faces a

• Page 3, Line 19shortfall of 100,000 homes and apartments, a crisis that further limits the

• Page 3, Line 20availability of affordable housing for families, particularly for families

• Page 3, Line 21using housing subsidies. This shortage exacerbates housing insecurity for

• Page 3, Line 22families with low incomes and makes it even harder for voucher holders

• Page 3, Line 23to find homes.

• Page 4, Line 1(f)  Federal rental assistance programs play a critical role in

• Page 4, Line 2supporting Colorado's most vulnerable populations, including seniors,

• Page 4, Line 3people with disabilities, veterans, and working families. In 2020, federal

• Page 4, Line 4rental assistance programs provided Colorado with $628 million, helping

• Page 4, Line 5127,200 people in 65,000 households afford modest housing. Of these

• Page 4, Line 6recipients, 72% are seniors, children, or people with disabilities, who are often at the greatest risk of housing instability.

• Page 4, Line 7(g)  Rental assistance supports working families, with 53% of

• Page 4, Line 8nondisabled, working-age households that include at least one worker

• Page 4, Line 9receiving HUD rental assistance. Rental assistance helps people maintain

• Page 4, Line 10housing in all types of communities, including 112,000 people in cities and suburbs, as well as 15,300 people in rural areas and small towns.

• Page 4, Line 11(h)  Ensuring that tenants with housing subsidies can use their

• Page 4, Line 12vouchers effectively and without fear of discrimination is critical to

• Page 4, Line 13breaking the cycle of poverty and advancing racial, social, and economic justice in Colorado; and

• Page 4, Line 14(i)  Protecting tenants from unfair eviction practices and ensuring

• Page 4, Line 15their access to rental assistance strengthens communities, reduces the

• Page 4, Line 16long-term costs of homelessness, and allows vulnerable individuals and

• Page 4, Line 17families to contribute positively to society without the constant fear of losing their homes.

• Page 4, Line 18(2)  The general assembly also finds that:

• Page 4, Line 19(a)  Tenants who use housing subsidies are integral members of the

• Page 4, Line 20community and deserve the same respect, protections, and opportunities

• Page 4, Line 21as other renters. By safeguarding their rights, we help create stronger,

• Page 4, Line 22more stable communities, reducing the risks of homelessness and

• Page 4, Line 23fostering economic mobility.

• Page 5, Line 1(b)  Preventing unfair evictions, discrimination, and other barriers

• Page 5, Line 2to housing for subsidy recipients not only improves the lives of vulnerable

• Page 5, Line 3Coloradans but also saves taxpayer money by reducing reliance on emergency services, shelter systems, and public assistance programs; and

• Page 5, Line 4(c)  It is critical to remove barriers that disproportionately affect

• Page 5, Line 5low-income households and families of color by ensuring that landlords

• Page 5, Line 6make reasonable efforts to cooperate with tenants who are applying for

• Page 5, Line 7rental assistance in good faith, creating a more inclusive rental market that serves all Coloradans.

• Page 5, Line 8(3)  Therefore, the general assembly declares that it is essential to:

• Page 5, Line 9(a)  Provide stronger protections for tenants who use housing subsidies; and

• Page 5, Line 10(b)  Create an environment in which all tenants, regardless of

• Page 5, Line 11income or source of income, have equal opportunity to secure housing

• Page 5, Line 12and maintain their homes, thus contributing to healthier, more vibrant communities across the state.

• Page 5, Line 13SECTION 2.  In Colorado Revised Statutes, add part 15 to article 12 of title 38 as follows:

• Page 5, Line 14PART 15

• PROTECTIONS FOR TENANTS OF SUBSIDIZED HOUSING

• Page 5, Line 1538-12-1501.  Definitions.As used in this part 15, unless the context otherwise requires:

• Page 5, Line 16(1)   "Landlord" means:

• (a)   A landlord, as defined in section 38-12-502 (5); or

• Page 5, Line 17(b)  The management or landlord of a mobile home park, as defined in section 38-12-201.5 (3).

• Page 5, Line 18(2)  "Tenant" has the meaning set forth in section 38-12-502 (9).

• Page 6, Line 138-12-1502.  Notice required before initiation of eviction

• Page 6, Line 2proceeding.(1)  A landlord who initiates an eviction proceeding

• Page 6, Line 3for nonpayment of rent against a tenant shall comply with the

• Page 6, Line 4notice requirements set forth in 15 U.S.C. sec. 9058 (c), as

• Page 6, Line 5enacted into law on March 7, 2020, notwithstanding any

• Page 6, Line 6changes in federal law that may occur or may have occurred subsequent to this date.

• Page 6, Line 7(2)  The division of housing created in section 24-32-704 is

• Page 6, Line 8encouraged to compile a list of resources for landlords, which list:

• Page 6, Line 9(a)  Helps a landlord determine whether any of the

• Page 6, Line 10landlord's properties are a covered dwelling, as defined in 15 U.S.C. 9058 (a)(1);

• Page 6, Line 11(b)  Describes financial resources that may be available to landlords;

• Page 6, Line 12(c)  Is published on the division's public website; and

• (d)  Is compiled and published using existing resources.

• Page 6, Line 14SECTION 3.  In Colorado Revised Statutes, 38-12-507, amend (2)(g)(IV) as follows:

• Page 6, Line 1538-12-507.  Breach of warranty of habitability - tenant's

• Page 6, Line 16remedies. (2) (g)  If a tenant proves an affirmative defense pursuant to this subsection (2) by a preponderance of the evidence, the court shall:

• Page 6, Line 17(IV)  Order the landlord to reimburse the tenant any difference in

• Page 6, Line 18rent between the reduced fair rental value and any greater amount of rent

• Page 6, Line 19that the tenant was paid to the landlord pursuant to the rental

• Page 7, Line 1agreement while a breach of the warranty of habitability at the residential

• Page 7, Line 2premises existed, regardless of whether part or all of the rent

• Page 7, Line 3was paid by the tenant or by a housing subsidy issued to the tenant;

• Page 7, Line 4SECTION 4.  In Colorado Revised Statutes, 24-34-502, amend (1)(p) and (1)(q); and add (1)(r) as follows:

• Page 7, Line 524-34-502.  Unfair housing practices prohibited - definition. (1)  It is an unfair housing practice, unlawful, and prohibited:

• Page 7, Line 6(p)  For any person, for profit, to induce or attempt to induce

• Page 7, Line 7another person to rent any housing by representations regarding the entry

• Page 7, Line 8or prospective entry into the neighborhood of a person or persons with particular sources of income; or

• Page 7, Line 9(q)  For any person to violate section 38-12-904 (1)(c) or (1)(d); or

• Page 7, Line 10(r)  For any landlord, as defined in section 38-12-1501 (1), to fail to:

• Page 7, Line 11(I)  Make reasonable efforts to timely respond to requests

• Page 7, Line 12for information and documentation necessary for a rental assistance application process; or

• Page 7, Line 13(II)  Cooperate with a tenant who is applying for rental

• Page 7, Line 14assistance in good faith, including by refusing to provide

• Page 7, Line 15documents that are required by a state government agency, a

• Page 7, Line 16local government agency, or other administrating entity to support the tenant's application.

• Page 7, Line 18SECTION 5.  In Colorado Revised Statutes, 24-34-505.6, amend

• Page 7, Line 19(6) introductory portion and (6)(a); and add (8) as follows:

• Page 8, Line 124-34-505.6.  Enforcement by private persons. (6)  In addition

• Page 8, Line 2to the relief which that may be granted in accordance with section 24-34-508, the following relief is available:

• Page 8, Line 3(a)  If the court finds that a discriminatory housing practice has

• Page 8, Line 4occurred or is about to occur, the court may award to the plaintiff actual

• Page 8, Line 5and punitive damages or may grant as relief, as the court deems

• Page 8, Line 6appropriate, any permanent or temporary injunction, temporary

• Page 8, Line 7restraining order, or other order, including an order enjoining the

• Page 8, Line 8defendant from engaging in such practice or ordering such affirmative

• Page 8, Line 9action as may be appropriate. If the court awards damages to a

• Page 8, Line 10plaintiff as described in this subsection (6)(a), and the court

• Page 8, Line 11finds that the defendant violated section 24-34-502 (1)(h), (1)(l),

• Page 8, Line 12(1)(m), (1)(n), (1)(o), (1)(p), or (1)(r) and that the violation

• Page 8, Line 13concerns discrimination on the basis of an individual's use of a

• Page 8, Line 14housing subsidy, as defined in section 38-12-902 (1.7), the court

• Page 8, Line 15shall award to the plaintiff at least five thousand dollars in damages.

• Page 8, Line 16(8)  A calculation of actual damages pursuant to this

• Page 8, Line 17section must include consideration of losses that a tenant may

• Page 8, Line 18incur as a result of the tenant forfeiting their housing subsidy

• Page 8, Line 19as a result of the landlord discriminating against the tenant based on the tenant's source or amount of income.

• Page 8, Line 20SECTION 6.  In Colorado Revised Statutes, 24-34-508, amend (1)(f) as follows:

• Page 8, Line 2124-34-508.  Relief authorized. (1)  In addition to the relief

• Page 8, Line 22authorized by section 24-34-306 (9), the commission may order a

• Page 8, Line 23respondent who has been found to have engaged in an unfair housing practice:

• Page 9, Line 1(f) (I)  To assess pay a civil penalty against the respondent in the following amounts amount:

• Page 9, Line 2(I)  (A)  Not to exceed No more than ten thousand dollars if the

• Page 9, Line 3respondent has not been adjudged to have committed any a prior discriminatory housing practice;

• Page 9, Line 4(II)  (B)  Not to exceed No more than twenty-five thousand

• Page 9, Line 5dollars if the respondent has been adjudged to have committed any other

• Page 9, Line 6another discriminatory housing practice during the five-year period ending on the date of the filing of the charge; or

• Page 9, Line 7(III)  (C)  Not to exceed No more than fifty thousand dollars if the

• Page 9, Line 8respondent has been adjudged to have committed two or more

• Page 9, Line 9discriminatory housing practices during the seven-year period ending on the date of the filing of the charge.

• Page 9, Line 10(II)  The commission shall require a respondent to pay, in

• Page 9, Line 11addition to any award of damages pursuant to section

• Page 9, Line 1224-34-505.6, a civil penalty to the plaintiff pursuant to this

• Page 9, Line 13subsection (1)(f) in an amount of at least five thousand dollars if:

• Page 9, Line 14(A)  The respondent is found to have engaged in a violation

• Page 9, Line 15of section 24-34-502 (1)(h), (1)(l), (1)(m), (1)(n), (1)(o), (1)(p), or (1)(r); and

• Page 9, Line 16(B)  The violation concerns discrimination on the basis of

• Page 9, Line 17an individual's use of a housing subsidy, as defined in section 38-12-902 (1.7).

• Page 9, Line 18SECTION 7.  Applicability. This act applies to conduct occurring

• Page 9, Line 19on or after the effective date of this act.

• Page 10, Line 1SECTION 8.  Safety clause. The general assembly finds,

• Page 10, Line 2determines, and declares that this act is necessary for the immediate

• Page 10, Line 3preservation of the public peace, health, or safety or for appropriations for

• Page 10, Line 4the support and maintenance of the departments of the state and state institutions.