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Ashley Nichols obtains CAI Educated Business Partner Distinction!

Today, Ashley Nichols, Cornerstone’s founder, received the Community Associations Institute (CAI) Educated Business Partner distinction. She is the first, and only, attorney in Colorado to obtain this distinction.  Additionally, only a few hundred individuals hold this distinction nationwide!   CAI Chief Executive Officer Thomas M. Skiba, […]

2018 Legislative Wrap Up

The Colorado legislative session wrapped up yesterday, so today on the blog we are wrapping up all the information you need to know about bills affecting community associations and landlords and tenants. What did and did not pass? First, what DID NOT pass. Let’s just […]

Manager Licensing Bill Dead

The following is from the Colorado Legislative Action Committee. The Colorado Legislative Action Committee (CLAC) is a statewide committee appointed by CAI National.

House Bill 18-1175, the Community Association Manager Licensing Sunset Bill that would continue the CAM licensing program for 5 more years, was defeated in the Senate Finance Committee late Tuesday afternoon.

House Bill 18-1175, the Community Association Manager Licensing Sunset Bill that would continue the CAM licensing program for 5 more years, was defeated in the Senate Finance Committee late Tuesday afternoon on a party line vote of 2-3.

CAI’s Colorado Legislative Committee has been in touch with the Division of Real Estate regarding this matter. While the Division has committed to sending out communication to licensees very soon, it does not have a lot of information available for dissemination quite yet.

We have confirmed that the CAM licensing program will have a one year wind down period which will expire approximately June 30, 2019.

While political matters never provide assurances, we remain hopeful there will be an additional opportunity to obtain passage of a bill to extend the program during the 2019 legislative session.

 

Quick Legislative Update!

For those interested in landlord/tenant law, SB-10 was signed by the Governor on March 22, 2018. The bill will go into effect on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 8, 2018). The bill requires a residential landlord […]

Changes on the Horizon for Community Association Foreclosures?

A recent Washington D.C. appellate court’s decision, while not binding in Colorado, could make waves in the community association industry, especially if judges in other jurisdictions, including our own, take notice.  The case is Andrea Liu v. US Bank.  In 2014, Liu purchased a condominium […]

Legislative Update

Some quick updates on a few of the pending bills that we are tracking this legislative session:

SB 10, which concerns the requirement that residential landlords provide tenants with specified documents relevant to the landlord-tenant relationship, has passed the Senate and has been introduced in the House (assigned to the House Finance Committee).  It will be heard in committee on March 5, 2018.

HB 1107, which would require that builders of new residences offer buyers the option to accommodate electric vehicle charging systems, has passed the House and has been introduced in the Senate (assigned to Senate Transportation).

KILL(ed) BILL(s)

HB 1126, if passed, would have invalidated any covenant that prohibits the keeping of certain types of dogs based solely on a breed, weight, or size classification, has been killed on the floor of the House after the third reading.  An amendment after the second reading removed language from the proposed bill that would have allowed an association “to regulate the number of dogs per household as well as enforce covenants concerning dog or owner behavior including nuisance barking, waste disposal, and other matters.”  Again, this bill was killed on the floor of the House and, in legislative process terms, is considered “lost.”  As it stands, provisions in association covenants that prohibit the keeping of certain types of dogs based solely on breed, weight, or size classification (for example, no dogs over 20 pounds) will continue to be enforceable.

SB 120, if passed, would have provided tenants a longer period of time to cure a default in the payment of rent.  The Senate Committee on Business, Labor & Technology effectively killed this bill in committee on February 14, 2018, postponing it indefinitely.  

Keep following the blog or keep track of bills at the 2018 Legislation page on the website!

New Bills Introduced – Manager Licensing and Landlord/Tenant Issues

Two bills have been introduced since I last blogged about the Colorado Legislative Session: one concerning community associations, and more specifically, manager licensing (HB 1175) and the second regarding landlord/tenant issues (SB 120). First, the Colorado General Assembly sets specific dates that a particular agency, […]

Excuses, Excuses, Excuses!

If you’ve been in the business long enough (and long enough is a week), you’ve heard plenty of excuses!  Association members who pay their assessments late or not at all come up with some very interesting excuses.  Here are a few of the most common […]

Introducing What Would be the Rental Application Fairness Act

HB18-1127, also known as the Rental Application Fairness Act (creating C.R.S. § 38-12-801 et seq), was introduced in the house on January 19, 2018.  If passed, the bill would do three things:

  1. Limit the application fee that a landlord may charge an applicant to the actual costs for a personal reference check or for obtaining a consumer credit or tenant screening report;
  2. Require a landlord to provide each prospective tenant with written notice of the landlord’s tenant selection criteria and the grounds upon which a rental application may be denied before accepting an application or collecting an application fee; and
  3. Require a landlord to provide a prospective tenant with an adverse action notice if the landlord takes adverse action on a prospective tenant after reviewing the rental application

In this blog, we’ll address each section of the bill and discuss in a bit more detail.

SECTION 1

The first portion of the bill would, as stated above, prohibit a landlord from charging an application fee unless the fee is used to cover the landlord’s costs in processing the rental application.  The costs may be based on the actual amount the landlord incurs in processing the rental application OR the average amount that the landlord charges each prospective tenant based on the average costs incurred in processing rental applications.

Not only would the bill provide as stated above, but the landlord would also have to provide any person who has paid the application fee with either 1) a disclosure of the anticipated expenses for which the fee will be used; or 2) a receipt that itemizes the actual expenses incurred.  If the landlord is charging a fee based on the average cost of processing the application, then the landlord must include information in the disclosure about how the average rental application fee is determined.

Additionally, the bill would not allow a landlord to charge one prospective tenant a fee that is different from the fee charged to another prospective tenant who applies to rent either the same unit or any other unit offered by the landlord at the same time.

SECTION 2

In its second portion, the bill would require that prior to accepting a rental application or collecting an application fee, the landlord must give the prospective tenant written notice of the tenant selection criteria and the grounds on which a rental application may be denied.  The bill provides the following list of grounds for denial which must be included in the notice (if the landlord will deny a prospective tenant’s application based on these criteria):

  • The prospective tenant’s:
    • criminal history;
    • rental history;
      • If using this as criteria, the landlord cannot consider any history beyond five years immediately preceding the application date.
    • credit history; or
      • If using this as criteria, the landlord cannot consider any history beyond five years immediately preceding the application date.
    • current income
  • Failure to provide accurate or complete information in the rental application; or
  • Failure to pay the application fee in the amount specified in the notice.

SECTION 3

If the landlord takes adverse action (denies an application or requires additional conditions to be met), written notice must be provided to the prospective tenant which states the reasons for the denial and/or additional conditions.  The bill provides a sample format as follows:

ADVERSE ACTION NOTICE

(NAME OF PROSPECTIVE TENANT)
(ADDRESS OF PROSPECTIVE TENANT)

THIS NOTICE IS TO INFORM YOU THAT YOUR APPLICATION HAS BEEN:

_______  REJECTED

_______  APPROVED WITH CONDITIONS:

_______  RESIDENCY REQUIRES AN INCREASED DEPOSIT;

_______  RESIDENCY REQUIRES A QUALIFIED GUARANTOR;

_______  RESIDENCY REQUIRES LAST MONTH’S RENT;

_______  RESIDENCY REQUIRES AN INCREASED MONTHLY RENT OF $_______

_______  OTHER

ADVERSE ACTION ON YOUR APPLICATION WAS BASED ON THE FOLLOWING:

_______  INFORMATION CONTAINED IN A CONSUMER CREDIT REPORT

_______  THE CONSUMER CREDIT REPORT DID NOT CONTAIN SUFFICIENT INFORMATION

_______  INFORMATION RECEIVED FROM PREVIOUS RENTAL HISTORY OR REFERENCE

_______  INFORMATION RECEIVED IN A CRIMINAL RECORD

_______  INFORMATION RECEIVED IN A CIVIL RECORD

_______  INFORMATION RECEIVED FROM AN EMPLOYMENT VERIFICATION

(DATE)
(SIGNATURE OF LANDLORD

Additionally, the notice must be accompanied by an acknowledgment of receipt, to be signed by the prospective tenant.

What would be the penalty for violation of the Act?  Two times the amount of the rental application fee, plus court costs and reasonable attorney fees. 

While responsible landlords are already taking these steps to ensure that they are screening for responsible tenants, this bill would formalize those steps and require that landlords jump through a few more hoops to ensure compliance.  Is it really necessary?  What are your thoughts? Chime in with your comments – we’d love to hear from you!  We’ll be following the progress of this bill throughout the legislative session, so check back often for updates!

 

More Legislation Introduced!

A couple more bills that would affect developments, community associations, and landlords/tenants!  Let’s dive in! HB-1107 was introduced in the house on January 18, 2018.  The intent of the bill is to facilitate the installation of electric vehicle charging systems.  The bill would require builders to […]