Page 1 January 26, 2024 HB 24-1098 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0087 Rep. Mabrey; Duran Sen. Gonzales; Hinrichsen Date: Bill Status: Fiscal Analyst: January 26, 2024 House Trans., Hous. & Local Govt. Clayton Mayfield | 303-866-5851 clayton.mayfield@coleg.gov Bill Topic: CAUSE REQUIRED FOR EVICTION OF RESIDENTIAL TENANT Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill prohibits landlords from evicting tenants without cause. The bill minimally increases state workload and revenue on an ongoing basis starting in FY 2024-25. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the introduced bill. Summary of Legislation The bill establishes a “For Cause” eviction policy in state law that prohibits landlords from evicting tenants from residential properties without cause, subject to certain conditions and requirements specified in the bill. The bill outlines various reasons that a tenant may be evicted for cause, including among other things: unlawful occupancy of a property; non-payment of rent; inhabiting a property beyond the term of a lease; substantial, material or repeat violations of the terms of a lease; and the sale or transfer of a property under certain conditions. The bill also allows a landlord to initiate a no-fault eviction in the following situations: demolition or conversion of the property; substantial repairs or renovations; occupancy of the property by a landlord or certain family members of a landlord; end of time-limited housing offered by a mission-driven organization; and withdrawal of a property from the rental market for the purpose of selling the property; Page 2 January 26, 2024 HB 24-1098 Landlords initiating a no-fault eviction must provide timely notice to tenants. If a landlord does not provide required notice, then they must provide relocation assistance in the form of two to three months’ rent. Relocation assistance is not required for mission-driven organizations, if the tenant was not using the property as their primary residence, or if the tenant is a homeowner. Landlords cannot increase a tenant’s rent in retaliation or discrimination in order to circumvent the requirements of this new “For Cause” eviction policy. Rental agreements are prohibited from including any provisions that waives the requirements of the bill. Tenants may sue landlords for violations. A landlord’s failure to comply is an affirmative defense for the tenant. Finally, the bill also adds conforming language to statutes regarding unlawful entry to a property and notice to quit for tenants for landlords and tenants that comply with the above provisions. State Revenue The bill may have offsetting impacts on filing fee revenue to the trial courts in the Judicial Department. If there is a reduction in eviction cases filed by landlords, filing fee revenue will decrease. To the extent that there is an increase in civil cases filed by tenants against landlords who violate the provisions of the bill, Judicial Department revenue from filing fees will increase. Revenue from filing fees is subject to TABOR. Overall, it is assumed that any change in revenue will be minimal. State Expenditures Similar to the revenue impact above, the bill may have offsetting impacts to workload in the trial courts in the Judicial Department. By limiting the circumstances in which a landlord may initiate an eviction proceeding, the bill potentially decreases these types of filings. Conversely, civil filings may increase from tenants bringing actions against landlords who violate the provisions of the bill. This fiscal note assumes most landlords will comply with the provisions of the bill, and that any net change in workload will be minimal. Additionally, the Department of Law (DOL) may receive more consumer complaints. Any additional consumer complaints will be addressed within existing resources and no change in appropriations is required. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. Page 3 January 26, 2024 HB 24-1098 State and Local Government Contacts Judicial Law Local Affairs Regulatory Agencies The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. For additional information about fiscal notes, please visit the General Assembly website.