HB 25-1240

House Bill 25-1240, now signed into law in Colorado, provides protections for tenants who use housing subsidies. It requires landlords to follow specific notice requirements when evicting tenants who rely on such subsidies and mandates that landlords must reimburse tenants if they overpay rent, even if the subsidy covers part of it. The bill also penalizes landlords who do not cooperate with tenants applying for rental assistance or who discriminate against tenants based on their use of housing subsidies by imposing a minimum damage award of $5,000 in court cases and a civil penalty of at least $5,000 from the Colorado Civil Rights Commission if found guilty. This law aims to ensure fair treatment and support for low-income tenants using government assistance to pay rent.

Official Summary

The act requires a landlord who initiates an eviction proceeding for nonpayment of rent against a tenant to comply with certain notice requirements set forth in federal law for tenants who use housing subsidies. Under current law, if a tenant proves as an affirmative defense to an eviction proceeding that the landlord violated the warranty of habitability, the court must order a reduction in the fair rental value of the dwelling unit and order the landlord to reimburse the tenant any difference in rent between the reduced fair rental value and any greater amount of rent that the tenant paid. The act states that the landlord must reimburse this amount regardless of whether part or all of the rent was paid by the tenant or by a housing subsidy issued to the tenant. The act states that a landlord commits an unfair housing practice if the landlord fails to: Make reasonable efforts to timely respond to requests for information and documentation necessary for a rental assistance application process; or Cooperate with a tenant who is applying for rental assistance in good faith. Current law allows a person to pursue relief for damages resulting from a landlord's commission of an unfair housing practice. The act states that, if a court awards damages to a plaintiff who prevails in such an action, and the violation concerns discrimination on the basis of an individual's use of a housing subsidy, the court shall award the plaintiff at least $5,000 in damages. The act also states that a calculation of actual damages must include consideration of losses that a tenant may incur as a result of the tenant forfeiting their housing subsidy as a result of the landlord discriminating against the tenant based on the tenant's source or amount of income. Current law provides that, in addition to relief awarded to a tenant in a private action, the Colorado civil rights commission may order a respondent who has been found to have engaged in an unfair housing practice to pay a civil penalty in an amount that varies based on whether the respondent has previously committed discriminatory housing practices. The act establishes a minimum penalty amount of $5,000 if a person commits any of certain unfair housing violations and the violation concerns discrimination on the basis of an individual's use of a housing subsidy. (Note: This summary applies to this bill as enacted.)

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