First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 23-0541.01 Shelby Ross x4510 HOUSE BILL 23-1120 House Committees Senate Committees Judiciary Local Government & Housing Appropriations Appropriations A BILL FOR AN ACT C ONCERNING EVICTION PROTECTI ONS FOR RESIDENTIAL TENANTS101 WHO RECEIVE PUBLIC ASSISTANCE, AND, IN CONNECTION102 THEREWITH, MAKING AN APPROPRIATION .103 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 and residential tenant to participate in mandatory mediation prior to commencing an eviction action if the residential tenant receives supplemental security income, federal social security disability insurance, or cash assistance through the Colorado works program (collectively, "cash assistance"). The landlord and SENATE Amended 2nd Reading May 5, 2023 HOUSE 3rd Reading Unamended April 13, 2023 HOUSE Amended 2nd Reading April 12, 2023 HOUSE SPONSORSHIP Joseph and Ortiz, Garcia, Lieder, Velasco, Amabile, Bacon, Boesenecker, Brown, deGruy Kennedy, Dickson, English, Epps, Gonzales-Gutierrez, Herod, Jodeh, Lindsay, Mabrey, Parenti, Ricks, Sirota, Story, Titone, Vigil, Weissman, Willford SENATE SPONSORSHIP Fields and Winter F., Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. residential tenant do not have to participate in mediation if the residential tenant did not disclose or declined to disclose in writing to the landlord that the residential tenant receives cash assistance. Failure to comply with mandatory mediation is an affirmative defense. The bill prohibits a law enforcement officer from executing a writ of restitution against a residential tenant for at least 30 days after the entry of judgment if the residential tenant receives cash assistance. The bill requires a written rental agreement to include a statement that a residential tenant who receives cash assistance has a right to mediation prior to the landlord filing an eviction complaint with the court. The bill prohibits a written rental agreement from including a waiver of mandatory mediation. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds that:3 (a) There is a wide disparity in access to legal representation4 between landlords and people experiencing eviction in Colorado. A 20215 study found that renters are represented by legal counsel in only one6 percent of eviction cases, while landlords are represented in 77 percent7 of cases.8 (b) This disparity in access to legal representation creates an9 imbalance in power during eviction proceedings;10 (c) Prelitigation mediation helps to restore the balance of power11 during eviction proceedings by facilitating communication between12 renters and landlords in a neutral setting. Skilled, neutral mediators can13 help guide the parties to find a reasonable and long-lasting alternative to14 eviction.15 (d) Colorado is experiencing a housing shortage. A 2022 report16 from the general assembly's affordable housing and transformational task17 force found that the state needs an additional 325,000 rental units to meet18 current demand.19 1120-2- (e) People with disabilities face an additional barrier to finding1 housing that meets their accessibility requirements;2 (f) People who receive cash assistance face an additional barrier3 to finding housing that is affordable on a fixed income; and4 (g) Extending the period of time before law enforcement can5 execute a writ of restitution gives a renter with disabilities or a renter who6 receives cash assistance more time to find new housing and improves the7 renter's likelihood of remaining housed.8 (2) The general assembly further finds that:9 (a) Evictions threaten existing affordable housing by creating10 additional burdens for independent property owners, including legal fees,11 unpaid rent and utility fees, additional vacancies, and resident turnover;12 and13 (b) Reducing evictions and preventing people from becoming14 homeless saves taxpayers money by reducing public spending on court15 costs, emergency shelter, medical care, foster care, and juvenile16 delinquency.17 (3) Therefore, the general assembly declares it is necessary to18 avoid eviction proceedings and provide additional protections for people19 with disabilities and people who receive cash assistance who are20 experiencing an eviction.21 SECTION 2. In Colorado Revised Statutes, 13-40-110, amend22 (1); and add (3) as follows:23 13-40-110. Action - how commenced - report. (1) (a) An action24 under this article ARTICLE 40 is commenced by filing with the court a25 complaint in writing describing the property with reasonable certainty, the26 grounds for the recovery thereof, the name of the person in possession or27 1120 -3- occupancy, and a prayer for recovery of possession, AND A SIGNED1 AFFIDAVIT THAT STATES:2 (I) T HE RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL SECURITY3 INCOME, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE4 FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS5 AMENDED, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS6 PROGRAM CREATED IN PART 7 OF ARTICLE 2 OF TITLE 26, AND THE7 COMPLAINANT AND RESIDENTIAL TENANT PARTICIPATED IN MANDATORY8 MEDIATION AND THE MEDIATION WAS UNSUCCESSFUL ; 9 (II) T HE COMPLAINANT AND RESIDENTIAL TENANT DID NOT10 PARTICIPATE IN MANDATORY MEDIATION BECAUSE THE RESIDENTIAL11 TENANT:12 (A) DID NOT DISCLOSE OR DECLINED TO DISCLOSE IN WRITING IN13 RESPONSE TO A WRITTEN INQUIRY FROM THE COMPLAINANT THAT THE14 RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL SECURITY INCOME , SOCIAL15 SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE FEDERAL16 "S OCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR17 CASH ASSISTANCE THROUGH THE COLORADO WORKS PROGRAM CREATED18 IN PART 7 OF ARTICLE 2 OF TITLE 26; OR19 (B) DOES NOT RECEIVE SUPPLEMENTAL SECURITY INCOME , SOCIAL20 SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE FEDERAL21 "S OCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR22 CASH ASSISTANCE THROUGH THE COLORADO WORKS PROGRAM CREATED23 IN PART 7 OF ARTICLE 2 OF TITLE 26; OR24 (III) THE COMPLAINANT AND RESIDENTIAL TENANT DID NOT25 PARTICIPATE IN MANDATORY MEDIATION BECAUSE THE COMPLAINANT IS:26 (A) A 501(c)(3) NONPROFIT ORGANIZATION THAT OFFERS27 1120 -4- OPPORTUNITIES FOR MEDIATION TO RESIDENTIAL TENANTS PRIOR TO FILING1 A RESIDENTIAL EVICTION IN COURT; OR2 (B) A LANDLORD WITH FIVE OR FEWER SINGLE-FAMILY RENTAL3 HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS , INCLUDING ANY4 SINGLE-FAMILY HOMES.5 (b) M ANDATORY MEDIATION MUST BE CONDUCTED BY A TRAINED6 NEUTRAL THIRD PARTY AND BE PROVIDED AT NO COST TO THE7 RESIDENTIAL TENANT. THE LANDLORD IS ONLY REQUIRED TO PAY FOR THE8 LANDLORD'S PORTION OF THE MANDATORY MEDIATION . THE9 COMPLAINANT AND RESIDENTIAL TENANT MAY HAVE LEGAL10 REPRESENTATION PRESENT DURING THE MANDATORY MEDIATION . A11 RESIDENTIAL TENANT MAY VOLUNTARILY WAIVE THE TENANT 'S RIGHT TO12 MANDATORY MEDIATION , BUT A WAIVER MUST NOT BE IN ANY LEASE13 AGREEMENT OR OTHER AGREEMENT BETWEEN THE COMPLAINANT AND14 RESIDENTIAL TENANT PURSUANT TO SECTION 38-12-801.15 (c) THE OFFICE OF DISPUTE RESOLUTION, CREATED IN SECTION16 13-22-303, SHALL SCHEDULE THE MANDATORY MEDIATION AT THE FIRST17 AVAILABLE DATE, BUT NO LATER THAN FOURTEEN CALENDAR DAYS AFTER18 THE LANDLORD REQUESTS THE MEDIATION .19 (d) FAILURE TO COMPLY WITH THE MANDATORY MEDIATION20 REQUIREMENTS OUTLINED IN THIS SUBSECTION (1) IS AN AFFIRMATIVE21 DEFENSE. IF THE AFFIRMATIVE DEFENSE IS RAISED AND THE COMPLAINANT22 CANNOT DEMONSTRATE THAT THE REQUIREMENTS WERE MET , THE COURT23 SHALL DISMISS THE CASE WITHOUT PREJUDICE AND A NEW COMPLAINT24 MUST BE FILED.25 (e) The complaint may also set forth the amount of rent due, the26 rate at which it is accruing, the amount of damages due, and the rate at27 1120 -5- which they are accruing and may include a prayer for rent due or to1 become due, present and future damages, costs, and any other relief to2 which plaintiff is entitled.3 (3) B EGINNING JANUARY, 2024, THE JUDICIAL DEPARTMENT SHALL 4 REPORT TO THE HOUSE OF REPRESENTATIVES JUDICIARY COMMITTEE AND5 THE SENATE JUDICIARY COMMITTEE , OR THEIR SUCCESSOR COMMITTEES ,6 DURING THE JUDICIAL DEPARTMENT'S "SMART ACT" HEARING THE TOTAL7 NUMBER OF MEDIATIONS SCHEDULED BY THE OFFICE OF DISPUTE8 RESOLUTION PURSUANT TO THIS SECTION , THE OUTCOMES OF THE9 MEDIATIONS, AND THE COST OF THE MEDIATIONS FOR THE PREVIOUS10 FISCAL YEAR.11 SECTION 3. In Colorado Revised Statutes, 13-40-122, amend12 (1) as follows:13 13-40-122. Writ of restitution after judgment. (1) (a) A court14 shall not issue a writ of restitution upon any judgment entered in any15 action pursuant to this article 40 until forty-eight hours after the time of16 the entry of the judgment. I F THE WRIT OF RESTITUTION CONCERNS A17 RESIDENTIAL TENANT WHO RECEIVES SUPPLEMENTAL SECURITY INCOME ,18 SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE FEDERAL19 "S OCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR20 CASH ASSISTANCE THROUGH THE COLORADO WORKS PROGRAM CREATED21 IN PART 7 OF ARTICLE 2 OF TITLE 26, THE WRIT MUST SPECIFY THAT THE22 WRIT IS NOT EXECUTABLE FOR THIRTY DAYS AFTER ENTRY OF JUDGMENT23 PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION; EXCEPT IN THE CASE:24 (I) IN WHICH A COURT HAS ORDERED A JUDGMENT FOR POSSESSION25 FOR A SUBSTANTIAL VIOLATION PURSUANT TO SECTION 13-40-107.5; OR 26 (II) OF A LANDLORD WITH FIVE OR FEWER SINGLE FAMILY RENTAL27 1120 -6- HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS INCLUDING ANY1 SINGLE FAMILY HOMES.2 (b) A writ of restitution shall MUST be executed by the officer3 having the same only in the daytime and between sunrise and sunset, and4 the officer shall not execute a writ of restitution concerning a residential5 tenancy until at least ten days after entry of the judgment; EXCEPT THAT6 THE OFFICER SHALL NOT EXECUTE A WRIT OF RESTITUTION CONCERNING7 A RESIDENTIAL TENANCY UNTIL AT LEAST THIRTY DAYS AFTER ENTRY OF8 JUDGMENT IF THE RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL9 SECURITY INCOME, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE10 II OF THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ.,11 AS AMENDED, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS12 PROGRAM CREATED IN PART 7 OF ARTICLE 2 OF TITLE 26, AS SPECIFIED IN13 THE WRIT; EXCEPT IN THE CASE:14 (I) IN WHICH A COURT HAS ORDERED A JUDGMENT FOR POSSESSION15 FOR A SUBSTANTIAL VIOLATION PURSUANT TO SECTION 13-40-107.5; OR 16 (II) OF A LANDLORD WITH FIVE OR FEWER SINGLE FAMILY RENTAL17 HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS INCLUDING ANY18 SINGLE FAMILY HOMES.19 (c) Any writ of restitution governed by this section may be20 executed by the county sheriff's office in which the property is located by21 a sheriff, undersheriff, or deputy sheriff, as described in section22 16-2.5-103 (1) or (2), while off duty or on duty at rates charged by the23 employing sheriff's office in accordance with section 30-1-104 (1)(gg).24 SECTION 4. In Colorado Revised Statutes, amend 13-40-106 as25 follows:26 13-40-106. Written demand. (1) The demand required by27 1120 -7- section 13-40-104 shall be made in writing, specifying the grounds of the1 demandant's right to the possession of such premises, describing the2 same, and the time when the same shall be delivered up, and shall be3 signed by the person claiming such possession, his agent, or his attorney.4 (2) THE DEMAND MUST ALSO INCLUDE A STATEMENT THAT A5 RESIDENTIAL TENANT WHO RECEIVES SUPPLEMENTAL SECURITY INCOME,6 SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE FEDERAL7 "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR8 CASH ASSISTANCE THROUGH THE COLORADO WORKS PROGRAM CREATED9 IN PART 7 OF ARTICLE 2 OF TITLE 26 HAS A RIGHT TO MEDIATION PRIOR TO10 THE LANDLORD FILING AN EVICTION COMPLAINT WITH THE COURT11 PURSUANT TO SECTION 13-40-110.12 SECTION 5. In Colorado Revised Statutes, 24-34-502, add (1.8)13 as follows:14 24-34-502. Unfair housing practices prohibited - definitions.15 (1.8) IT IS NOT A VIOLATION OF THIS SECTION FOR A LANDLORD TO ASK A16 RESIDENTIAL TENANT WHETHER THE TENANT RECEIVES SUPPLEMENTAL17 SECURITY INCOME, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE18 II OF THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ.,19 AS AMENDED, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS20 PROGRAM CREATED IN PART 7 OF ARTICLE 2 OF TITLE 26 FOR THE PURPOSES21 OF COMPLYING WITH SECTION 13-40-110 (1).22 SECTION 6. In Colorado Revised Statutes, 38-12-801, amend23 (3); and add (2.5) as follows:24 38-12-801. Written rental agreement - prohibited clauses -25 copy - tenant. (2.5) (a) A WRITTEN RENTAL AGREEMENT MUST INCLUDE26 A STATEMENT THAT SECTION 24-34-502 (1) PROHIBITS SOURCE OF INCOME27 1120 -8- DISCRIMINATION AND REQUIRES A NON-EXEMPT LANDLORD TO ACCEPT1 ANY LAWFUL AND VERIFIABLE SOURCE OF MONEY PAID DIRECTLY ,2 INDIRECTLY, OR ON BEHALF OF A PERSON, INCLUDING INCOME DERIVED3 FROM ANY LAWFUL PROFESSION OR OCCUPATION AND INCOME OR RENTAL4 PAYMENTS DERIVED FROM ANY GOVERNMENT OR PRIVATE ASSISTANCE,5 GRANT, OR LOAN PROGRAM.6 (b) THIS SUBSECTION (2.5) DOES NOT APPLY TO A LANDLORD WITH7 FIVE OR FEWER SINGLE FAMILY RENTAL HOMES AND NO MORE THAN FIVE8 TOTAL RENTAL UNITS INCLUDING ANY SINGLE FAMILY HOMES .9 (3) (a) A written rental agreement must not include:10 (a) (I) An unreasonable liquidated damages clause that assigns a11 cost to a party stemming from an eviction notice or an eviction action12 from a violation of the rental agreement; or13 (b) (II) A one-way, fee-shifting clause that awards attorney fees14 and court costs only to one party. Any fee-shifting clause contained in a15 rental agreement must award attorney fees to the prevailing party in a16 court dispute concerning the rental agreement, residential premises, or17 dwelling unit.18 (III) A WAIVER OF MANDATORY MEDIATION REQUIRED PURSUANT19 TO SECTION 13-40-110 (1); OR20 (IV) A CLAUSE THAT ALLOWS A LANDLORD TO RECOUP ANY COSTS21 ASSOCIATED WITH MANDATORY MEDIATION REQUIRED PURSUANT TO22 SECTION 13-40-110 (1).23 (c) (b) Any clause in violation of subsection (3)(a) or (3)(b) of this24 section THIS SUBSECTION (3) is null and void and unenforceable.25 SECTION 7. Appropriation. (1) For the 2023-24 state fiscal26 year, $328,026 is appropriated to the judicial department for use by courts27 1120 -9- administration. This appropriation is from the general fund. To implement1 this act, the department may use this appropriation as follows:2 (a) $246,076 for general courts administration, which amount is3 based on an assumption that the department will require an additional 0.64 FTE;5 (b) $75,000 for information technology infrastructure; and6 (c) $6,950 for capital outlay.7 SECTION 8. Safety clause. The general assembly hereby finds,8 determines, and declares that this act is necessary for the immediate9 preservation of the public peace, health, or safety.10 1120 -10-