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Page 36 — Multifamily Properties Quarterly — August 2019 www.crej.com Affordable Housing T he First Regular Session of the 72nd Colorado Gen- eral Assembly adjourned on May 3 with the passage of a remarkable number of bills touching the affordable housing world in ways unseen from prior sessions. Changing societal needs, having Democrats in control of all three branches of state government and a healthy economy made passage of that legislation possible and, in some cases, necessary. Bills were passed that affect fund- ing, developer incentives, landlord- tenant law, manufactured housing in major ways, and other areas from solar gardens to xeriscaping of com- monly owned gardens in minor ways. The bills that are likely to have the greatest impact are the three that deal with funding: House Bills 19-1288, 19-1245 and 19-1322. HB19-1228 increases the amount of the State Affordable Housing Tax Credits from $5 million per annum to $10 million and will take effect Jan. 1. Also taking effect the same day is HB19-1245, which will cre- ate an affordable housing fund from vendor fee charges. That bill is expected to raise $45 million to $55 million per year without a sunset. Finally, HB19-1322 has the potential to expand the supply of affordable housing by providing up to $30 mil- lion per year from 2020-2023 if cer- tain budget conditions are met. HB19-1319 requires that each state agency and state institution of higher education prepare a list of all undeveloped real property owned by or under their con- trol and eliminated the “clawback” provision for prop- erty tax exemption granted on afford- able housing prop- erties that either distribute income or sell property. The growing problem of deal- ing with opioid abuse contributed to the passage of HB19-1009 that amends existing legislation to give access to housing vouchers to individuals with substance abuse disorders, those transitioning from a mental health institution, residen- tial treatment program or engaged in the community transition pro- gram and increases the amount of general funds from the Marijuana Tax Cash program by $1 million for the voucher program for four years beginning in the 2019-2020 fiscal year. Five bills dealing with landlord- tenant law were passed. While the fiscal impact is minor, the changes to the ways that landlords deal with tenants are major. A $750,000 legal defense fund was created by SB19-180 to award grants to quali- fying organizations that provide legal advice, counseling and repre- sentation for indigent clients who are experiencing of at immediate risk of eviction. Under the provi- sions of HB19-1106, landlords are prohibited from charging more for application fees than the cost of processing an application, looking at more than seven years of credit or rental history and five years of back- ground checks, and are required to provide documentation for each denied rental application. HB19- 1118 requires a landlord (with a few exceptions) to provide a tenant 10 days to cure a violation for unpaid rent or for the first violation of any other nonsubstantial condition or covenant of a lease agreement before initiating eviction proceed- ings. Reflecting the current problems with bedbugs, HB19-1328 requires that tenants promptly notify their landlord if bedbugs are found and that the landlord respond within 96 hours of notification. The most sweeping bill is HB19-1170, which made significant revisions to the definition of what constitutes a breach of the warrant of habitability, including health/safety conditions, mold, notice to and from tenant and landlord, granting authority to county courts for determination of a breach and much more. Minor changes were made to man- ufactured housing law by HB19-1011 that clarifies the scope of an existing state sales and use tax exemption for manufactured homes and HB19- 1238 that made technical amend- ments to interstate building require- ments for significant alterations to manufactured housing. A variety of other bills were passed that increased the allowable size of community solar gardens; permitted the xeriscaping of commonly owned landscaping; reduced the time for notification of landowners of the change from blighted to unblighted in urban renewal areas; expanded the existing program for rebates on property tax, rent, heat and fuel expenses for low-income seniors or persons with disabilities; clarified the income tax credit for retrofitting a home; clarified that the exemption of housing authorities from pay- ment of special assessments does not preclude their ability to apply for inclusion of eligible properties in a district; and increased the regula- tion, oversight of mobile home parks by counties and creation of hospital accountability boards in each of the state’s seven regions. Several bills were introduced that failed, including those dealing with a tax credit for employer-assisted housing, right to rest for the home- less, rent control, rural small- business development grants and voluntary housing agreements in unincorporated areas. Some or all of these may be back. For more detail on any of these, see https://cdn.ymaws.com/www. housingcolorado.org/resource/ resmgr/legislative_analysis_2019.pdf The affordable potlight for this issue of the Multifamily Properties Quarterly will shine on the thoughts of the heads of the Colorado Depart- ment of Local Affairs, Colorado Housing and Finance Authority and Aurora Housing Authority regarding what the impact of these bills will be on how they operate their programs and the supply of affordable hous- ing. Authors also will share their thoughts on what might come from the next session and how Congress can help address the need for more affordable housing in Colorado. ▲ The 2019 legislative session and affordable housing Rodger Hara Principal, Community Builder Realty Services