HB 25-1240
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1240: PROTECTIONS FOR TENANTS WITH HOUSING SUBSIDIES
Prime Sponsors:
Rep. Joseph; Froelich
Sen. Winter F.
Published for: House Business Affairs & Labor
Drafting number: LLS 25-0087
Fiscal Analyst:
Clayton Mayfield, 303-866-5851
clayton.mayfield@coleg.gov
Version: Initial Fiscal Note
Date: February 25, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill modifies tenant and landlord laws regarding tenants using housing subsidies.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Revenue State Expenditures
Appropriations. For FY 2025-26, the bill requires an appropriation of $33,268 to the Department of
Regulatory Agencies.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $42,513 $42,513
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.5 FTE 0.5 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
February 25, 2025 HB 25-1240
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $33,268 $33,268
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $9,245 $9,245
Total Expenditures $42,513 $42,513
Total FTE 0.5 FTE 0.5 FTE
Summary of Legislation
The bill modifies several tenant and landlord laws and provides additional protections for
tenants who receive housing subsidies, as described below.
Eviction Notice
Landlords are prohibited from evicting a tenant for nonpayment of rent less than 30 days after a
notice to vacate is provided.
Late Fees
Landlords are prohibited from charging a late fee greater than $20 to tenants receiving housing
subsidies.
Warranty of Habitability
Current law requires landlords to reimburse tenants for the difference between rent paid and the
fair rental value when a breach in the warranty of habitability is proved. The bill requires
reimbursement regardless of whether a tenant uses a housing subsidy.
Unfair Housing Practices
Landlords who fail to make reasonable efforts to respond to requests for information necessary
for a rental assistance application, or fail to cooperate with tenants and rental assistance
administrators regarding applications, engage in an unfair housing practice. Additionally, the bill
removes an exemption to unfair housing practice liability for landlords who offer three or fewer
housing units for rent, and an exemption from the requirement to accept federal housing
vouchers for landlords who offer five or fewer single family rental homes. Page 3
February 25, 2025 HB 25-1240
Relief for Unfair Housing Practice Violations
When civil cases are brought by private persons alleging certain unfair housing practice
violations involving discrimination on the basis of housing subsidies, the bill requires courts, if
awarding damages, to award at least $5,000 to plaintiffs. When calculating damages, courts
must consider losses incurred as a result of a person losing their housing subsidy as a result of
discrimination by a landlord.
Additionally, in cases brought through the Colorado Civil Rights Commission regarding certain
unfair housing practice violations involving discrimination on the basis of housing subsidies, the
commission is required to assess respondents a civil penalty of at least $5,000, payable to
plaintiffs, when violations are found.
State Revenue
By expanding the circumstances that constitute unfair housing practices, the bill may increase
revenue to the Judicial Department from an increase in filing fees from civil case filings. Revenue
from filing fees is subject to TABOR. The fiscal note assumes that the majority of landlords will
follow the law, and any increase in revenue is expected to be minimal.
State Expenditures
The bill increases state expenditures in the Department of Regulatory Agencies by about
$43,000 in FY 2025-26 and future years. These costs, paid from the General Fund, are
summarized in Table 2 and discussed below. The bill also minimally affects workload in the
Judicial Department.
Table 2
State Expenditures
Department of Regulatory Agencies
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $32,628 $32,628
Operating Expenses $640 $640
Centrally Appropriated Costs $9,245 $9,245
Total Costs $42,513 $42,513
Total FTE 0.5 FTE 0.5 FTE
Page 4
February 25, 2025 HB 25-1240
Department of Regulatory Agencies
The Colorado Civil Rights Commission in DORA requires 0.5 FTE to process additional housing
discrimination complaints. In FY 2022-23, 31 cases involving housing discrimination on the basis
of income were filed with the commission. By removing landlord exemptions under current law
regarding unfair housing practices and federal housing voucher acceptance, the bill will increase
the potential for the commission to receive discrimination complaints. The fiscal note assumes a
30 percent increase in complaints, which results in a need for an additional 0.5 FTE. The estimate
includes standard operating costs, and is prorated for a July 1, 2025, start date.
Judicial Department
Trial courts in the Judicial Department may experience an increase in workload if additional civil
cases are filed. The fiscal note assumes that the majority of landlords will comply with the law
and any increase will be minimal.
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature, and applies to conduct occurring on or after this date.
State Appropriations
For FY 2025-26, the bill requires a General Fund appropriation of $33,268 to the Department of
Regulatory Agencies, and 0.5 FTE.
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.