Colorado 2023 Regular Session

Colorado House Bill HB1120 Latest Draft

Bill / Enrolled Version Filed 05/12/2023

                            HOUSE BILL 23-1120
BY REPRESENTATIVE(S) 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, Duran, Froelich, Kipp,
Martinez, McCormick, Sharbini, Snyder, McCluskie;
also SENATOR(S) Fields and Winter F., Cutter, Moreno, Priola, Sullivan.
C
ONCERNING EVICTION PROTECTIONS FOR RESIDENTIAL TENANTS WHO
RECEIVE PUBLIC ASSISTANCE
, AND, IN CONNECTION THEREWITH ,
MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1)  The general assembly
finds that:
(a)  There is a wide disparity in access to legal representation
between landlords and people experiencing eviction in Colorado. A 2021
study found that renters are represented by legal counsel in only one percent
of eviction cases, while landlords are represented in 77 percent of cases.
(b)  This disparity in access to legal representation creates an
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. imbalance in power during eviction proceedings;
(c)  Prelitigation mediation helps to restore the balance of power
during eviction proceedings by facilitating communication between renters
and landlords in a neutral setting. Skilled, neutral mediators can help guide
the parties to find a reasonable and long-lasting alternative to eviction.
(d)  Colorado is experiencing a housing shortage. A 2022 report from
the general assembly's affordable housing and transformational task force
found that the state needs an additional 325,000 rental units to meet current
demand.
(e)  People with disabilities face an additional barrier to finding
housing that meets their accessibility requirements;
(f)  People who receive cash assistance face an additional barrier to
finding housing that is affordable on a fixed income; and
(g)  Extending the period of time before law enforcement can
execute a writ of restitution gives a renter with disabilities or a renter who
receives cash assistance more time to find new housing and improves the
renter's likelihood of remaining housed.
(2)  The general assembly further finds that:
(a)  Evictions threaten existing affordable housing by creating
additional burdens for independent property owners, including legal fees,
unpaid rent and utility fees, additional vacancies, and resident turnover; and
(b)  Reducing evictions and preventing people from becoming
homeless saves taxpayers money by reducing public spending on court
costs, emergency shelter, medical care, foster care, and juvenile
delinquency.
(3)  Therefore, the general assembly declares it is necessary to avoid
eviction proceedings and provide additional protections for people with
disabilities and people who receive cash assistance who are experiencing an
eviction.
SECTION 2. In Colorado Revised Statutes, 13-40-110, amend (1);
PAGE 2-HOUSE BILL 23-1120 and add (4) as follows:
13-40-110.  Action - how commenced - report. (1) (a)  An action
under this article ARTICLE 40 is commenced by filing with the court a
complaint in writing describing the property with reasonable certainty, the
grounds for the recovery thereof, the name of the person in possession or
occupancy, and
 a prayer for recovery of possession, AND A SIGNED
AFFIDAVIT THAT STATES
:
(I)  T
HE RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL SECURITY
INCOME
, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE
FEDERAL 
"SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS
AMENDED
, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS
PROGRAM CREATED IN PART 
7 OF ARTICLE 2 OF TITLE 26, AND THE
COMPLAINANT AND RESIDENTIAL TENANT PARTICIPATED IN MANDATORY
MEDIATION AND THE MEDIATION WAS UNSUCCESSFUL
;
(II)  T
HE COMPLAINANT AND RESIDENTIAL TENANT DID NOT
PARTICIPATE IN MANDATORY MEDIATION BECAUSE THE RESIDENTIAL
TENANT
:
(A)
  DID NOT DISCLOSE OR DECLINED TO DISCLOSE IN WRITING IN
RESPONSE TO A WRITTEN INQUIRY FROM THE COMPLAINANT THAT THE
RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL SECURITY INCOME
, SOCIAL
SECURITY DISABILITY INSURANCE UNDER 
TITLE II OF THE FEDERAL "SOCIAL
SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR CASH
ASSISTANCE THROUGH THE 
COLORADO WORKS PROGRAM CREATED IN PART
7 OF ARTICLE 2 OF TITLE 26; OR
(B)  DOES NOT RECEIVE SUPPLEMENTAL SECURITY INCOME , SOCIAL
SECURITY DISABILITY INSURANCE UNDER 
TITLE II OF THE FEDERAL "SOCIAL
SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR CASH
ASSISTANCE THROUGH THE 
COLORADO WORKS PROGRAM CREATED IN PART
7 OF ARTICLE 2 OF TITLE 26; OR
(III)  THE COMPLAINANT AND RESIDENTIAL TENANT DID NOT
PARTICIPATE IN MANDATORY MEDIATION BECAUSE THE COMPLAINANT IS
:
(A)  A 501(c)(3) 
NONPROFIT ORGANIZATION THAT OFFERS
OPPORTUNITIES FOR MEDIATION TO RESIDENTIAL TENANTS PRIOR TO FILING
PAGE 3-HOUSE BILL 23-1120 A RESIDENTIAL EVICTION IN COURT; OR
(B)  A LANDLORD WITH FIVE OR FEWER SINGLE -FAMILY RENTAL
HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS
, INCLUDING ANY
SINGLE
-FAMILY HOMES.
(b)  M
ANDATORY MEDIATION MUST BE CONDUCTED BY A TRAINED
NEUTRAL THIRD PARTY AND BE PROVIDED AT NO COST TO THE RESIDENTIAL
TENANT
. THE LANDLORD IS ONLY REQUIRED TO PAY FOR THE LANDLORD 'S
PORTION OF THE MANDATORY MEDIATION
. THE COMPLAINANT AND
RESIDENTIAL TENANT MAY HAVE LEGAL REPRESENTATION PRESENT DURING
THE MANDATORY MEDIATION
. A RESIDENTIAL TENANT MAY VOLUNTARILY
WAIVE THE TENANT
'S RIGHT TO MANDATORY MEDIATION , BUT A WAIVER
MUST NOT BE IN ANY LEASE AGREEMENT OR OTHER AGREEMENT BETWEEN
THE COMPLAINANT AND RESIDENTIAL TE NANT PURSUANT TO SECTION
38-12-801.
(c)  T
HE OFFICE OF DISPUTE RESOLUTION , CREATED IN SECTION
13-22-303, SHALL SCHEDULE THE MANDATORY MEDIATION AT THE FIRST
AVAILABLE DATE
, BUT NO LATER THAN FOURTEEN CALENDAR DAYS AFTER
THE LANDLORD REQUESTS THE MEDIATION
.
(d)  F
AILURE TO COMPLY WITH THE MANDATORY MEDIATION
REQUIREMENTS OUTLINED IN THIS SUBSECTION 
(1) IS AN AFFIRMATIVE
DEFENSE
. IF THE AFFIRMATIVE DEFENSE IS RAISED AND THE COMPLAINANT
CANNOT DEMONSTRATE THAT THE REQUIREMENTS WERE MET
, THE COURT
SHALL DISMISS THE CASE WITHOUT PREJUDICE AND A NEW COMPLAINT MUST
BE FILED
.
(e)  The complaint may also set forth the amount of rent due, the rate
at which it is accruing, the amount of damages due, and the rate at which
they are accruing and may include a prayer for rent due or to become due,
present and future damages, costs, and any other relief to which plaintiff is
entitled.
(4)  B
EGINNING JANUARY 2024, THE JUDICIAL DEPARTMENT SHALL
REPORT TO THE HOUSE OF REPRESENTATIVES JUDICIARY COMMITTEE AND
THE SENATE JUDICIARY COMMITTEE
, OR THEIR SUCCESSOR COMMITTEES ,
DURING THE JUDICIAL DEPARTMENT 'S "SMART ACT" HEARING THE TOTAL
NUMBER OF MEDIATIONS SCHEDULED BY THE OFFICE OF DISPUTE RESOLUTION
PAGE 4-HOUSE BILL 23-1120 PURSUANT TO THIS SECTION, THE OUTCOMES OF THE MEDIATIONS , AND THE
COST OF THE MEDIATIONS FOR THE PREVIOUS FISCAL YEAR
.
SECTION 3. In Colorado Revised Statutes, 13-40-122, amend (1)
as follows:
13-40-122.  Writ of restitution after judgment. (1) (a)  A court
shall not issue a writ of restitution upon any judgment entered in any action
pursuant to this article 40 until forty-eight hours after the time of the entry
of the judgment. I
F THE WRIT OF RESTITUTION CONCERNS A RESIDENTIAL
TENANT WHO RECEIVES SUPPLEMENTAL SECURITY INCOME
, SOCIAL SECURITY
DISABILITY INSURANCE UNDER 
TITLE II OF THE FEDERAL "SOCIAL SECURITY
ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR CASH ASSISTANCE
THROUGH THE 
COLORADO WORKS PROGRAM CREATED IN PART 7 OF ARTICLE
2 OF TITLE 26, THE WRIT MUST SPECIFY THAT THE WRIT IS NOT EXECUTABLE
FOR THIRTY DAYS AFTER ENTRY OF JUDGMENT PURSUANT TO SUBSECTION
(1)(b) OF THIS SECTION; EXCEPT IN THE CASE:
(I)  I
N WHICH A COURT HAS ORDERED A JUDGMENT FOR POSSESSION
FOR A SUBSTANTIAL VIOLATION PURSUANT TO SECTION 
13-40-107.5; OR
(II)  OF A LANDLORD WITH FIVE OR FEWER SINGLE -FAMILY RENTAL
HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS INCLUDING ANY
SINGLE
-FAMILY HOMES.
(b)  A writ of restitution shall
 MUST be executed by the officer
having the same only in the daytime and between sunrise and sunset, and
the officer shall not execute a writ of restitution concerning a residential
tenancy until at least ten days after entry of the judgment; 
EXCEPT THAT THE
OFFICER SHALL NOT EXECUTE A WRIT OF RESTITUTION CONCERNING A
RESIDENTIAL TENANCY UNTIL AT LEAST THIRTY DAYS AFTER ENTRY OF
JUDGMENT IF THE RESIDENTIAL TENANT RECEIVES SUPPLEMENTAL SECURITY
INCOME
, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE
FEDERAL 
"SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS
AMENDED
, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS
PROGRAM CREATED IN PART 
7 OF ARTICLE 2 OF TITLE 26, AS SPECIFIED IN THE
WRIT
; EXCEPT IN THE CASE:
(I)  I
N WHICH A COURT HAS ORDERED A JUDGMENT FOR POSSESSION
FOR A SUBSTANTIAL VIOLATION PURSUANT TO SECTION 
13-40-107.5; OR
PAGE 5-HOUSE BILL 23-1120 (II)  OF A LANDLORD WITH FIVE OR FEWER SINGLE -FAMILY RENTAL
HOMES AND NO MORE THAN FIVE TOTAL RENTAL UNITS INCLUDING ANY
SINGLE
-FAMILY HOMES.
(c)  Any writ of restitution governed by this section may be executed
by the county sheriff's office in which the property is located by a sheriff,
undersheriff, or deputy sheriff, as described in section 16-2.5-103 (1) or (2),
while off duty or on duty at rates charged by the employing sheriff's office
in accordance with section 30-1-104 (1)(gg).
SECTION 4. In Colorado Revised Statutes, amend 13-40-106 as
follows:
13-40-106.  Written demand. (1)  The demand required by section
13-40-104 shall be made in writing, specifying the grounds of the
demandant's right to the possession of such premises, describing the same,
and the time when the same shall be delivered up, and shall be signed by the
person claiming such possession, his agent, or his attorney.
(2)  T
HE DEMAND MUST ALSO INCLUDE A STATEMENT THAT A
RESIDENTIAL TENANT WHO RECEIVES SUPPLEMENTAL SECURITY INCOME
,
SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE II OF THE FEDERAL
"SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS AMENDED, OR CASH
ASSISTANCE THROUGH THE 
COLORADO WORKS PROGRAM CREATED IN PART
7 OF ARTICLE 2 OF TITLE 26 HAS A RIGHT TO MEDIATION PRIOR TO THE
LANDLORD FILING AN EVICTION COMPLAINT WITH THE COURT PURSUANT TO
SECTION 
13-40-110.
SECTION 5. In Colorado Revised Statutes, 24-34-502, add (1.8)
as follows:
24-34-502.  Unfair housing practices prohibited - definitions.
(1.8)  I
T IS NOT A VIOLATION OF THIS SECTION FOR A LANDLORD TO ASK A
RESIDENTIAL TENANT WHETHER THE TENANT RECEIVES SUPPLEMENTAL
SECURITY INCOME
, SOCIAL SECURITY DISABILITY INSURANCE UNDER TITLE
II OF THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 401 ET SEQ., AS
AMENDED
, OR CASH ASSISTANCE THROUGH THE COLORADO WORKS
PROGRAM CREATED IN PART 
7 OF ARTICLE 2 OF TITLE 26 FOR THE PURPOSES
OF COMPLYING WITH SECTION 
13-40-110 (1).
PAGE 6-HOUSE BILL 23-1120 SECTION 6. In Colorado Revised Statutes, 38-12-801, amend (3);
and add (2.5) as follows:
38-12-801.  Written rental agreement - prohibited clauses - copy
- tenant. (2.5) (a)  A
 WRITTEN RENTAL AGREEMENT MUST INCLUDE A
STATEMENT THAT SECTION 
24-34-502 (1) PROHIBITS SOURCE OF INCOME
DISCRIMINATION AND REQUIRES A NON
-EXEMPT LANDLORD TO ACCEPT ANY
LAWFUL AND VERIFIABLE SOURCE OF MONEY PAID DIRECTLY
, INDIRECTLY,
OR ON BEHALF OF A PERSON , INCLUDING INCOME DERIVED FROM ANY
LAWFUL PROFESSION OR OCCUPATION AND INCOME OR RENTAL PAYMENTS
DERIVED FROM ANY GOVERNMENT OR PRIVATE ASSISTANCE
, GRANT, OR
LOAN PROGRAM
.
(b)  T
HIS SUBSECTION (2.5) DOES NOT APPLY TO A LANDLORD WITH
FIVE OR FEWER SINGLE
-FAMILY RENTAL HOMES AND NO MORE T HAN FIVE
TOTAL RENTAL UNITS INCLUDING ANY SINGLE
-FAMILY HOMES.
(3) (a)  A written rental agreement must not include:
(a)
 (I)  An unreasonable liquidated damages clause that assigns a cost
to a party stemming from an eviction notice or an eviction action from a
violation of the rental agreement; or
(b) (II)  A one-way, fee-shifting clause that awards attorney fees and
court costs only to one party. Any fee-shifting clause contained in a rental
agreement must award attorney fees to the prevailing party in a court
dispute concerning the rental agreement, residential premises, or dwelling
unit.
(III)  A
 WAIVER OF MANDATORY MEDIATION REQUIRED PURSUANT TO
SECTION 
13-40-110 (1); OR
(IV)  A CLAUSE THAT ALLOWS A LANDLORD TO RECOUP ANY COSTS
ASSOCIATED WITH MANDATORY MEDIATION REQUIRED PURSUANT TO
SECTION 
13-40-110 (1).
(c)
 (b)  Any clause in violation of subsection (3)(a) or (3)(b) of this
section THIS SUBSECTION (3) is null and void and unenforceable.
SECTION 7. Appropriation. (1)  For the 2023-24 state fiscal year,
PAGE 7-HOUSE BILL 23-1120 $328,026 is appropriated to the judicial department for use by courts
administration. This appropriation is from the general fund. To implement
this act, the department may use this appropriation as follows:
(a)  $246,076 for general courts administration, which amount is
based on an assumption that the department will require an additional 0.6
FTE;
(b)  $75,000 for information technology infrastructure; and
(c)  $6,950 for capital outlay.
SECTION 8. Safety clause. The general assembly hereby finds,
PAGE 8-HOUSE BILL 23-1120 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________  ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 9-HOUSE BILL 23-1120