First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 23-0848.02 Christopher McMichael x4775 HOUSE BILL 23-1254 House Committees Senate Committees Transportation, Housing & Local Government Appropriations A BILL FOR AN ACT C ONCERNING THE CONDITIONS COVERED UNDER THE WARRANTY OF101 HABITABILITY FOR RESIDENTIAL PREMISES , AND, IN102 CONNECTION THEREWITH , SPECIFYING A LANDLORD 'S103 REQUIREMENTS TO REMEDIATE A RESIDENTIAL PREMISES THAT104 IS DAMAGED DUE TO AN ENVIRONMENTAL PUBLIC HEALTH105 EVENT, EXPANDING WHAT CONSTITUTES RETALIATION BY A106 LANDLORD, AND DESCRIBING SITUATIONS IN WHICH A TENANT107 MAY TERMINATE A LEASE AFTER THE PREMISES HAS BEEN108 DAMAGED DUE TO AN ENVIRONMENTAL PUBLIC HEALTH EVENT.109 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 HOUSE 3rd Reading Unamended April 24, 2023 HOUSE Amended 2nd Reading April 21, 2023 HOUSE SPONSORSHIP Brown and Mabrey, Amabile, deGruy Kennedy, Dickson, English, Epps, Froelich, Garcia, Gonzales-Gutierrez, Herod, Jodeh, Joseph, Lindsay, Lindstedt, McCluskie, Michaelson Jenet, Ortiz, Ricks, Sharbini, Sirota, Story, Titone, Velasco, Vigil, Weissman SENATE SPONSORSHIP Cutter, 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. applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The bill expands conditions covered under the warranty of habitability for residential premises in relation to indoor air quality, water quality, and other health and safety issues. The bill adds water damage, fire damage, and damage due to a natural or an environmental event as conditions under which a residential premises is deemed uninhabitable. The bill requires a landlord to have a residential premises inspected and tested by a certified industrial hygienist or an industrial hygienist to determine if the premises is safe for habitability. The bill also clarifies landlord responsibilities in remediating a residential premises to a habitable standard and how a tenant must give notice to a landlord if there are habitability issues with the tenant's residence. The bill directs the executive director of the department of public health and environment to establish health and safety standards for habitability by January 1, 2026. The bill prohibits a landlord from retaliating against a tenant for making a good faith complaint about the conditions of the residential premises and provides conditions by which a tenant may terminate a lease if a habitability issue is not remediated. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) Colorado has experienced record-breaking wildfires in recent4 years, including the Marshall fire, which burned over 6,000 acres and5 nearly 1,100 homes in a highly urbanized area, resulting in more than6 $500 million in damages;7 (b) After the Marshall fire, many renters struggled to secure safe,8 habitable housing due to significant damage from smoke, ash, and other9 air contaminants;10 (c) It is typical for nearby residents to have concerns about the11 habitability of their residential premises after being subjected to an12 environmental public health event;13 1254-2- (d) After an environmental public health event, residential1 premises must be returned to a condition that protects the health and2 safety of residents from environmental contaminants, such as smoke, ash,3 and other toxic materials related to an environmental public health event;4 and5 (e) There is a need to promote the remediation of residential6 premises so that landlords, tenants, and insurance companies understand7 what remediation must be done and who is responsible for the8 remediation to make the premises habitable after an environmental public9 health event.10 (2) Therefore, the general assembly declares that it is in the best11 interest of Colorado residents to protect the health and safety of residents12 by ensuring that their homes are returned to a healthy, habitable, and safe13 condition after incurring damage due to an environmental public health14 event.15 SECTION 2. In Colorado Revised Statutes, 38-12-502, add (4.5)16 and (10) as follows:17 38-12-502. Definitions. As used in this part 5 and part 8 of this18 article 12, unless the context otherwise requires:19 (4.5) "ENVIRONMENTAL PUBLIC HEALTH EVENT" MEANS A20 NATURAL DISASTER OR AN ENVIRONMENTAL EVENT, SUCH AS A WILDFIRE,21 A FLOOD, OR A RELEASE OF TOXIC CONTAMINANTS, THAT COULD CREATE22 NEGATIVE HEALTH AND SAFETY IMPACTS FOR TENANTS THAT LIVE IN23 NEARBY RESIDENTIAL PREMISES.24 (10) "VULNERABLE POPULATION" MEANS CHILDREN, INDIVIDUALS25 WITH ASTHMA, INDIVIDUALS WITH DISABILITIES, INDIVIDUALS WHO ARE26 PREGNANT, OR ANY OTHER GROUP OF INDIVIDUALS THAT HAS HEALTH27 1254 -3- CONDITIONS THAT COULD MAKE THE INDIVIDUALS MORE SUSCEPTIBLE TO1 ENVIRONMENTAL CONTAMINANTS .2 SECTION 3. In Colorado Revised Statutes, 38-12-503, amend3 (2)(a), (2.3), (2.5), and (4)(a) introductory portion; and add (2.7) as4 follows:5 38-12-503. Warranty of habitability - notice - landlord6 obligations. (2) Except as described in subsection (2.2) of this section,7 a landlord breaches the warranty of habitability set forth in subsection (1)8 of this section if:9 (a) A residential premises is:10 (I) Uninhabitable as described in section 38-12-505 or otherwise11 unfit for human habitation; or12 (II) In a condition that materially interferes with the tenant's life,13 health, or safety; and OR14 (III) NOT IN COMPLIANCE WITH THE STANDARDS DESCRIBED IN15 SECTION 38-12-505 (1)(b)(XIII) FOR THE REMEDIATION AND CLEAN UP OF16 A RESIDENTIAL PREMISES THAT HAS BEEN DAMAGED DUE TO AN17 ENVIRONMENTAL PUBLIC HEALTH EVENT ; AND18 (2.3) A tenant who gives a landlord WRITTEN OR electronic notice19 of a condition shall send such THE notice only to the e-mail address,20 phone number, or electronic portal specified by the landlord in the rental21 agreement for communications. In the absence of such a provision in the22 rental agreement, the tenant shall communicate with the landlord in a23 manner that the landlord has previously used TYPICALLY USES to24 communicate with the tenant. The tenant shall retain sufficient proof of25 delivery of the electronic notice.26 (2.5) A landlord who THAT receives from a tenant written or27 1254 -4- electronic notice of a condition described by subsection (2)(a) of this1 section shall:2 (a) Respond to the tenant not more than twenty-four hours after3 receiving the notice; EXCEPT THAT A LANDLORD MAY TAKE UP TO4 SEVENTY-TWO HOURS TO RESPOND TO THE TENANT AFTER RECEIVING THE5 NOTICE WHEN THE RESIDENTIAL PREMISES IS INACCESSIBLE BECAUSE OF6 DAMAGE DUE TO AN ENVIRONMENTAL PUBLIC HEALTH EVENT. The7 response must indicate the landlord's intentions for remedying the8 condition, including an estimate of when the remediation will commence9 and when it will be completed.10 (b) INFORM THE TENANT OF THE LANDLORD'S RESPONSIBILITIES11 UNDER SUBSECTION (4)(a) OF THIS SECTION IF THE REPORTED CONDITION12 CONCERNS A CONDITION DESCRIBED IN SUBSECTION (2)(a)(II) OR13 (2)(a)(III) OF THIS SECTION.14 (2.7) (a) A LANDLORD THAT RECEIVES NOTICE FROM A TENANT OF15 ANY HABITABILITY ISSUES, AS DESCRIBED IN SECTION 38-12-505 (1), WITH16 THE TENANT'S PREMISES IS RESPONSIBLE FOR REMEDIATION OF THE17 RESIDENTIAL PREMISES TO A HABITABLE STANDARD AT THE LANDLORD'S18 EXPENSE.19 (b) A LANDLORD THAT RECEIVES NOTICE FROM A TENANT OF A20 HABITABILITY ISSUE REGARDING A RESIDENTIAL PREMISES THAT HAS BEEN21 DAMAGED DUE TO AN ENVIRONMENTAL PUBLIC HEALTH EVENT SHALL22 COMPLY WITH THE STANDARDS DESCRIBED IN SECTION 38-12-50523 (1)(b)(XIII) WITHIN A REASONABLE AMOUNT OF TIME GIVEN THE24 CONDITION OF THE PREMISES AND AT THE LANDLORD 'S EXPENSE.25 (c) A LANDLORD THAT HAS REMEDIATED A RESIDENTIAL PREMISES26 TO A HABITABLE STANDARD FOLLOWING AN ENVIRONMENTAL PUBLIC27 1254 -5- HEALTH EVENT MUST PROVIDE THE TENANT WITH DOCUMENTATION THAT1 DEMONSTRATES COMPLIANCE WITH THE STANDARDS DESCRIBED IN2 SECTION 38-12-505 (1)(b)(XIII).3 (d) A LANDLORD'S SUBMISSION OF AN INSURANCE CLAIM FOR AN4 UNINHABITABLE OR A CONTAMINATED RESIDENTIAL PREMISES AFTER THE5 LANDLORD RECEIVES NOTICE FROM THE TENANT OF HABITABILITY ISSUES6 AT THE RESIDENTIAL PREMISES IS NOT CONSIDERED EVIDENCE OF7 REMEDIATION.8 (4) (a) If the notice sent pursuant to subsection (2)(b) of this9 section concerns a condition that is described by subsection (2)(a)(II) OR10 (2)(a)(III) of this section, the landlord, at the request of the tenant, shall11 provide the tenant:12 SECTION 4. In Colorado Revised Statutes, 38-12-505, amend13 (1)(b)(XI), (1)(b)(XII), and (3); and add (1)(b)(XIII) as follows:14 38-12-505. Uninhabitable residential premises - habitability15 procedures - rules. (1) A residential premises is deemed uninhabitable16 if:17 (b) It substantially lacks any of the following characteristics:18 (XI) Locks on all exterior doors and locks or security devices on19 windows designed to be opened that are maintained in good working20 order; or21 (XII) Compliance with all applicable building, housing, and health22 codes, the violation of which would constitute a condition that materially23 interferes with the life, health, or safety of the tenant; OR24 (XIII) COMPLIANCE WITH APPLICABLE STANDARDS FROM THE25 AMERICAN NATIONAL STANDARDS INSTITUTE , OR ITS SUCCESSOR26 ORGANIZATION, FOR THE REMEDIATION AND CLEAN UP OF A RESIDENTIAL27 1254 -6- PREMISES FOLLOWING AN ENVIRONMENTAL PUBLIC HEALTH EVENT .1 (3) Unless the rental agreement provides otherwise as permitted2 by section 38-12-506, Before a LANDLORD LEASES A residential premises3 is leased to a tenant, the LANDLORD MUST ENSURE THAT THE residential4 premises must comply with the requirements set forth in IS FIT FOR5 HUMAN HABITATION IN ACCORDANCE WITH section 38-12-503 (1) and6 (2)(a) THAT THE RESIDENTIAL PREMISES IS NOT IN A CONDITION DESCRIBED7 IN SECTION 38-12-503 (2)(a).8 SECTION 5. In Colorado Revised Statutes, 38-12-506, add (3)9 as follows:10 38-12-506. Exception for certain single-family residences.11 (3) NOTWITHSTANDING SUBSECTIONS (1) AND (2) OF THIS SECTION, A12 LANDLORD AND TENANT SHALL NOT ENTER INTO AN AGREEMENT FOR THE13 REPAIR, MAINTENANCE, ALTERATION, REMODELING, OR REMEDIATION OF14 A RESIDENTIAL PREMISES THAT IS NECESSARY TO COMPLY WITH SECTION15 38-12-503 THAT WOULD ENDANGER THE HEALTH OR SAFETY OF THE16 TENANT.17 SECTION 6. In Colorado Revised Statutes, 38-12-507, amend18 (1)(b)(I)(B); and add (4) and (5) as follows:19 38-12-507. Breach of warranty of habitability - tenant's20 remedies. (1) If there is a breach of the warranty of habitability as set21 forth in section 38-12-503 (2):22 (b) (I) A tenant may obtain injunctive relief for breach of the23 warranty of habitability in any county or district court of competent24 jurisdiction. In a proceeding for injunctive relief, the court shall25 determine actual damages for a breach of the warranty at the time the26 court orders the injunctive relief. A landlord is not subject to any court27 1254 -7- order for injunctive relief if:1 (B) The proceeding for injunctive relief does not concern a2 condition described in section 38-12-503 (2)(a)(II) OR (2)(a)(III) that has3 not been repaired or remedied.4 (4) IF A RESIDENTIAL PREMISES IS UNINHABITABLE PURSUANT TO5 SECTION 38-12-505 (1) AFTER BEING DAMAGED DUE TO AN6 ENVIRONMENTAL PUBLIC HEALTH EVENT, THE TENANT MAY TERMINATE7 THE TENANT'S LEASE IF: 8 (a) THE LANDLORD HAS NOT BEEN ABLE TO REMEDIATE THE9 CONDITIONS OF THE RESIDENTIAL PREMISES SO THAT IT IS SAFE FOR10 HABITABILITY WITHIN SIXTY BUSINESS DAYS AFTER THE LANDLORD HAS11 RECEIVED NOTICE OF THE HABITABILITY ISSUE FROM THE TENANT ;12 (b) THE TENANT HAS GIVEN THE L ANDLORD WR ITTEN OR13 ELECTRONIC NOTICE THAT THE RESIDENTIAL PREMISES IS NOT SAFE FOR14 HABITABILITY DUE TO DAMAGE FROM AN ENVIRONMENTAL PUBLIC HEALTH15 EVENT; AND16 (c) THE LANDLORD IS NOT ABLE TO PROVIDE ADEQUATE17 ALTERNATIVE HOUSING ACCOMMODATIONS FOR THE TENANT, PURSUANT18 TO SECTION 38-12-503 (4), FOR THE DURATION OF THE TIME THAT THE19 RESIDENTIAL PREMISES IS BEING REMEDIATED .20 (5) NOTWITHSTANDING SUBSECTION (4) OF THIS SECTION, IF A21 TENANT IS A MEMBER OF A VULNERABLE POPULATION, THE TENANT MAY22 TERMINATE THE TENANT'S LEASE OR AGREEMENT AFTER THE RESIDENTIAL23 PREMISES HAS BEEN DAMAGED DUE TO AN ENVIRONMENTAL PUBLIC24 HEALTH EVENT IF:25 (a) THE TENANT HAS GIVEN THE LANDLORD WRITTEN OR26 ELECTRONIC NOTICE THAT THE RESIDENTIAL PREMISES IS NOT SAFE FOR27 1254 -8- HABITABILITY DUE TO DAMAGE FROM AN ENVIRONMENTAL PUBLIC HEALTH1 EVENT;2 (b) THE LANDLORD HAS NOT BEEN ABLE TO REMEDIATE THE3 CONDITIONS OF THE RESIDENTIAL PREMISES SO THAT IT IS SAFE FOR4 HABITABILITY FOR THE TENANT WHO IS A MEMBER OF A VULNERABLE5 POPULATION;6 (c) THE LANDLORD IS NOT ABLE TO PROVIDE ADEQUATE7 ALTERNATIVE HOUSING ACCOMMODATIONS FOR THE TENANT, PURSUANT8 TO SECTION 38-12-503 (4), FOR THE DURATION OF THE TIME THAT THE9 RESIDENTIAL PREMISES IS BEING REMEDIATED ; AND10 (d) THE TENANT PROVIDES THE LANDLORD WITH EVIDENCE FROM11 A LICENSED MEDICAL DOCTOR THAT THE TENANT'S CONDITION IS SUCH12 THAT TO CONTINUE LIVING IN A RESIDENTIAL PREMISES THAT HAS BEEN13 DAMAGED DUE TO AN ENVIRONMENTAL PUBLIC HEALTH EVENT WOULD BE14 DETRIMENTAL TO THE TENANT 'S HEALTH, SAFETY, OR QUALITY OF LIFE.15 SECTION 7. In Colorado Revised Statutes, 38-12-509, amend16 (1); and add (1.5) as follows:17 38-12-509. Prohibition on retaliation. (1) (a) A landlord shall18 not retaliate against a tenant by increasing rent or decreasing services or19 by bringing or threatening to bring an action for possession ENGAGING IN20 ANY OF THE ACTIVITIES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION21 in response to the tenant:22 (a) (I) Having made a good faith complaint to the landlord or to23 a governmental agency alleging a condition described by section24 38-12-505 (1) or any condition that materially interferes with the life,25 health, or safety of the tenant; or26 (b) (II) Organizing or becoming a member of a tenants'27 1254 -9- association or similar organization.1 (b) PROHIBITED RETALIATION INCLUDES:2 (I) INCREASING RENT OR DECREASING SERVICES ;3 (II) TERMINATING A LEASE OR CONTRACT WITHOUT WRITTEN4 CONSENT OF THE TENANT EXCEPT AS OTHERWISE PROVIDED BY LAW ;5 (III) BRINGING OR THREATENING TO BRING AN ACTION FOR6 POSSESSION; OR7 (IV) TAKING ACTION THAT IN ANY MANNER INTIMIDATES ,8 THREATENS, DISCRIMINATES, OR RETALIATES AGAINST A TENANT.9 (1.5) A TENANT MAY ASSERT AS A DEFENSE TO A LANDLORD'S10 ACTION FOR POSSESSION, INCLUDING AN ACTION FOR POSSESSION BASED11 ON A NONMONETARY VIOLATION OF THE RENTAL AGREEMENT OR AN12 ACTION FOR POSSESSION BASED UPON A NOTICE TO QUIT OR VACATE, THAT13 THE LANDLORD RETALIATED AGAINST THE TENANT IN VIOLATION OF14 SUBSECTION (1) OF THIS SECTION.15 SECTION 8. Safety clause. The general assembly hereby finds,16 determines, and declares that this act is necessary for the immediate17 preservation of the public peace, health, or safety.18 1254 -10-