IN THIS BLOG:
- Important updates on several executive orders that greatly impact landlords.
- COVID Relief Package vs. POP Funds
- Information about two bills pending in Colorado legislature that would be highly unfavorable to landlords.
As of the end of April 2021, there are some very important legal updates that we want to bring to your attention. Each of these changes has a profound impact on both tenants and landlords in Colorado.
EO-088: As of April 20, 2021, Executive Order 88 was signed into effect. This executive order states that if a tenant fails to pay their rent, the landlord give physically service a notice giving the tenant an additional 30 days to pay rent. Tenants legally have these 30 additional days to pay their rent before the landlord may initiate any legal eviction processes. Additionally, this law is retroactive to March 10th, 2021.
EO D-2021-073: This Executive Order has been extended for several months now, prohibiting landlords from charging late fees to their tenants (regardless of COVID impact).
CDC Eviction Moratorium: This moratorium has been extended through June 30, 2021. Tenants have access to this moratorium as long as: a) the tenants income does not exceed pre-set threasholds; b) the tenant complets and submits a signed declaration of covid impact to the landlord.
Consumer Financial Protection Bureau (CFPB): This is a new federal ruling stating that all landlords must provide tenants written notice of their tenants’ rights under the CDC’s eviction moratorium. For example, this statement must accompany a landlords notice of late rent payment at the beginning of the 30 day notice period for their tenants.
Foreclosure & Eviction Moratorium extended through June 30, 2021.
CARES Act: This act has expired in a majority of counties. However, in Denver County and Weld County, the CARES Act is still being enforced on covered properties. Landlords and tenants in these two counties are still required to abide by this act.
COVID Relief Package: $45 billion of rental assistance money was set aside for landlords, covering up to three months of retroactive back rent. However, it is very difficult to access this money as the system is unorganized and inaccessible. Many landlords are resorting to POP funds that, unfortunately, come with more regulations and specific rules.
These changes, extensions, and executive orders are stemming from the claim that one-third (33%) of tenants in Colorado are facing eviction. However, Grace Property Management is not experiencing this trend as less than 1% of the rental properties we manage are delinquent on rent. Additionally, in speaking with other landlords in Colorado, there is no evidence of 1 in 3 tenants facing eviction.
For tenants: If you are having trouble paying your rent, we encourage you to stay in contact and contine to update your landlord. Tenants deserve proper leagl protection and should be aware of how to access that protection.
For landlords: There are two legislative bills (SB 21-173 and SB 21-1121) pending in Colorado that are very unfriendly to landlords. Though they are still being revised, these bills could potentially state that landlords can’t increase rent more than once per year, that the 30 day notice period would be be permanent, that late fees would be capped at an extremely reduced rate, and more. These bills have the potential to drive small landlords out of Colorado. We are encouraging landlords to reach out to their representatives and oppose these bills!
To reach out to our state representatives in response to these proposed bills, please visit the NARPM site, linked here. Make your voice heard!
At Grace Property Management, we have been proactive in regards to each of these new legal updates. If you partner with us, we have been working with both our owner-clients, and our tenant-residetns in these areas already. Our goal is always to protect tenants and maintain fairness for our landlords. As always, please reach out to us with your questions.