MAA ‘Call to Action’ Targets Colorado Rental Lease Bill

The Mortgage Bankers Association’s grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action this week over a Colorado bill on property owners’ rights that has potential national implications.

HB23-1171, the “Just Cause Requirement Eviction of Residential Tenants” Act, would limit Colorado property owners’ ability to properly manage their properties and enact sweeping restrictions on property owners’ ability to improve or renovate rental units.

The bill is currently pending before the Colorado Senate Local Government and Housing Committee.  The bill passed the House on Mar 15.

MBA said enactment of “Just Cause Eviction” would hinder selling of properties and negatively impact their value. As written, the proposal would only allow non-renewals of lease contracts if property owners provide a “just” reason to end a rental lease, severely limiting an owner’s ability to finalize leases and make property improvements.

Furthermore, MBA said inclusion of “Good Cause Eviction” legislation would remove incentives to develop new affordable housing units leading to higher housing costs in Colorado’s rental housing market and would negatively impact the value of those and limit the number of property transactions in Colorado.

“This will be harmful to the entire real estate finance industry in general – and especially multifamily mortgage lenders,” MBA said. “Moreover, if this legislation succeeds, it is certain to be emulated by other states.

MAA asked its Colorado members to contact their state Assembly members and senators urging them to remove this proposal from the annual state budget before it is considered by the Assembly and Senate.

For more information about this bill and MAA, click here.