By Deborah Wilson, Springman, Braden, Wilson & Pontius
In addition to the myriad of COVID-19-related moratoria and executive orders since March of 2020, the Colorado legislature also implemented a number of new laws affecting the Landlord/Tenant relationship in 2021. Most of those changes are related to residential leases so it is important that those living and renting units in covenant-controlled communities know and understand these new changes, and for Community Association Boards to understand what restrictions they may impose on homeowners who rent out their units. A Board must also manage its expectations of how quickly a Landlord/Homeowner is able to resolve lease or rule violations by a Tenant within the community in today’s legal climate.
HB 21-1121: House Bill 21-1121 became effective 6/25/21. Among other things, (1) the bill restricts a residential Landlord’s right to raise the rent more than once in a 12-month period after the first year, regardless of the term of the lease, (2) the bill prohibits a sheriff from executing on a residential writ of restitution for at least 10 days after the judgment for possession enters, and (3) if no written agreement exists between the residential landlord and the tenant, the landlord must give at least 60 days written notice of rent increase and may not serve a Non-Renewal Notice of oral lease where the primary purpose is to increase the tenant’s rent more than once a year. As a practical matter, Community Association Boards should require all Landlords to have and provide a copy of a written lease agreement and understand that a Homeowner as Landlord may face delays in the eviction process under this new law.
SB 21-173: This 15-page bill became effective 10/1/21 and makes sweeping changes to the laws governing residential leases in Colorado, particularly in the area of late fees, the wording of residential leases, and the eviction process. With regard to the residential eviction process, a residential tenant now has up until entry of judgment for possession to pay all amounts stated on the demand (including any HOA fines listed) plus any subsequently accrued rent to the Landlord or to the Court. The Court shall set the trial for a date 7-10 days after the answer is filed; however, except in cases arising from substantial violation of lease/law, the court may delay the trial date where good cause exists, or a delay is justified. As a practical matter, Landlords often face long delays in the eviction process right now. The law governing the warranty of habitability have been expanded to increase defenses for tenants, which in turn create legal problems for Community Associations who should increase response time for repairs and treatment for infestation of pests and rodents in the community common areas. The bill imposes new substantial damages upon a Landlord who removes/excludes a tenant from a residential home without resorting to court process, except where abandonment is clear.
HB 20-1332: House Bill 20-1332 became effective 1/1/21. It adds discrimination based on source of income as a type of unfair housing practice. A residential Landlord may not refuse to rent or show a rental unit, or accept an offer to rent, or make a unit unavailable because of someone’s “source of income.” The Landlord may not advertise in a discriminatory way and must now accept public housing INCLUDING SECTION 8 VOUCHERS if the applicant otherwise qualifies, so long as the initial payment to Landlord is made timely. There are two exceptions in the bill: (1) Landlord who owns or manages 3 or fewer residential units is exempt for the entire bill and (2) a Landlord who owns 5 or fewer rental units is required to comply with this bill, except that the small Landlord is not required to accept Section 8 vouchers for any single-family rental units they may own. Community Association Boards should not prohibit Homeowners from renting to Section 8 tenants or otherwise discriminate based on the tenant’s source of income.
SB 20-108: Senate Bill 20-108became effective 1/1/21 and creates a private right of action for violation of civil rights against a Residential Landlord who discriminates based on an Applicant’s or Tenant’s actual or perceived immigration status. Housing providers may not inquire about, request, or disclose information regarding immigration status, may not harass or intimidate a tenant because of immigration status, and may not refuse to rent to them if they otherwise qualify. Community Associations may not prohibit a Homeowner from renting to tenants who are not lawfully present in the U.S. or require a homeowner to demand social security numbers for their tenants.
In addition to compliance with the above new laws, Landlords and Community Associations should be aware of existing Colorado laws on Application fees, rent receipts, gas appliances, carbon monoxide detectors, habitability, Fair Housing, screening restrictions as well as governmental restrictions based on protected classes, assistance animals, restrictions on occupancy standards and unrelated tenants. Landlords leasing to tenants governed by Community Associations should always incorporate by reference the Community governing documents into their leases, require tenants to read and abide by Community Rules and Regulations, and be subject to any damages or fines assessed by the Association for failure to comply.
Deborah Wilson is an attorney and managing shareholder at Springman, Braden, Wilson & Pontius, PC. Springman, Braden, Wilson & Pontius has been assisting Community Association Boards, Landlords and Property Managers for over 30 years in their collections, evictions, Fair Housing, and general counsel needs.
