Two major new landlord-tenant law reform bills were passed in Colorado this year and took effect July 1, 2021. Two new executive orders related to landlord-tenant law in Colorado have also been made.
The federal eviction moratorium, which began in September 2020, has been extended for what the U.S. Centers for Disease Control and Prevention says is the final time through July 31. The moratorium does not allow landlords to evict tenants who meet the criteria.
On June 30, Polis extended an executive order for another 30 days that requires landlords to give tenants who are at risk of eviction 30 days notice, rather than 10 days, before taking any legal action.
HB21-1121
https://leg.colorado.gov/bills/hb21-1121
Residential Tenancy Procedures
Under existing law, a court summons in an existing action must contain a statement to the defendant that explains the consequences for failing to answer the summons and requirements related to certain defenses. The bill includes updated language explaining the consequences for failing to answer, the content of a defendant's answer, and fees and deposits related to filing an answer.
Under existing law, if a landlord wins judgment in an eviction action, the court cannot issue a writ of restitution, which directs the county sheriff to assist the landlord in removing the tenant, until 48 hours after judgment. The bill prohibits a sheriff from executing a writ of restitution until at least 10 days after judgment.
The bill prohibits residential landlords from increasing rent more than one time in a 12-month period of tenancy.
Under existing law, for a tenancy of one month or longer but less than 6 months in which there is no written agreement between the landlord and tenant, a landlord must give 21 days' written notice to the tenant prior to increasing the rent. For a residential tenancy, the bill extends the notice period to 60 days and makes it apply to a tenancy of any duration without a written agreement. The bill prohibits a landlord from terminating a residential tenancy in which there is no written agreement with the primary purpose of increasing a tenant's rent without providing 60 days' notice.
SB21-173
https://leg.colorado.gov/bills/sb21-173
Rights In Residential Lease Agreements
The bill addresses the following items related to landlord and tenant rights in residential rental agreements:
• When a landlord removes or excludes a tenant from a dwelling without resorting to proper court procedures, it is an unfair or deceptive trade practice for the purposes of the "Colorado Consumer Protection Act";
• After a complaint is filed by a landlord, the clerk of the court or the attorney for the plaintiff shall issue a summons, including information concerning filing an answer and legal aid. A court shall not enter a default writ of restitution before the close of business on the date upon which an appearance is due.
• Provides additional details regarding the defendant's answer, including that a defendant does not waive any defense related to proper notice by filing an answer; that the court shall set a date for trial no sooner than 7, but not more than 10, days after the answer is filed, unless the defendant agrees to waive this provision and schedule the trial for an earlier date, except that a court with a docket that is impacted by the COVID-19 public health emergency is not required to comply with this time frame. In the time after an answer is filed and before a trial occurs, the court shall order that the landlord or tenant provide any relevant documentation that either party requests.
• A landlord who provides a tenant with proper notice of nonpayment shall accept payment of the tenant's full amount due according to the notice, as well as any rent due under the rental agreement, at any time until a court has ordered a writ of restitution;
• Eliminates the bond requirement for the warranty of habitability and allows the tenant to assert an alleged breach of the warranty of habitability as an affirmative defense;
• Establishes allowable court procedures and remedies in cases of an alleged breach of warranty of habitability;
• Bans liquidated damage clauses that assign a cost to a party stemming from a rental violation or an eviction action;
• Prohibits rental agreements that contain one-way fee-shifting clauses that award attorney fees and court costs only to one party; and
• Guarantees parties to a residential FED dispute the right to a trial by jury.
The bill prohibits a landlord of a mobile home park or a residential premises (landlord) from:
• Charging a tenant or mobile home owner (tenant) a late fee for late payment of rent unless the rent payment is late by at least 7 calendar days;
• Charging a tenant a late fee in an amount that exceeds the greater of: $50 or 5% of the amount of the rent obligation that remains past due;
• Requiring a tenant to pay a late fee unless the late fee is disclosed in the rental agreement;
* Removing, excluding, or initiating eviction procedures against a tenant solely as a result of the tenant's failure to pay one or more late fees;
* Terminating a tenancy or other estate at will or a lease in a mobile home park because the tenant fails to pay one or more late fees to the landlord;
* Imposing a late fee on a tenant for the late payment or nonpayment of any portion of the rent that a rent subsidy provider, rather than the tenant, is responsible for paying;
* Imposing a late fee more than once for each late payment;
* Requiring a tenant to pay interest on late fees;
* Recouping any amount of a late fee from a rent payment made by a tenant; or
* Charging a tenant a late fee unless the landlord provided the tenant written notice of the late fee within 180 days after the date upon which the rent payment was due.
A landlord who commits a violation must pay a $50 penalty to an aggrieved tenant for each violation. Otherwise, a landlord who commits a violation has 7 days to cure the violation, which 7 days begins when the landlord receives notice of the violation. If a landlord fails to timely cure a violation, the tenant may bring a civil action to seek one or more of the following remedies:
* Compensatory damages for injury or loss suffered;
* A penalty of at least $150 but not more than $1,000 for each violation, payable to the tenant;
* Costs, including reasonable attorney fees if the tenant is the prevailing party; and
* Other equitable relief the court finds appropriate.
The attorney general may investigate and prosecute alleged violations. A violation that is not timely cured or that was committed by a landlord in bad faith is an unfair or deceptive trade practice for the purposes of the "Colorado Consumer Protection Act".
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