JOINT RELEASE: Legislation to Increase Affordable Condos, Expand Tenant Protections Goes Into Effect
Two laws will boost condo construction and ensure safe housing for renter
DENVER, CO – Legislation to reduce the cost of housing, expand homeownership opportunities through condo construction, and strengthen enforcement of landlord-tenant laws goes into effect on August 6.
HB25-1272 is sponsored by Senate President James Coleman, D-Denver, Senator Dylan Roberts, D-Frisco, Representative Shannon Bird, D-Westminster, and House Speaker Pro Tempore Andy Boesenecker, D-Fort Collins. The law reforms construction defect laws by encouraging condo builders to provide robust warranties and work with third-party inspectors to help prevent, identify, and correct any construction issues upfront, establishing clear guidelines for construction defect claims, and adjusting the statutes of limitation for construction defect claims.
“From building equity and generational wealth to lowering housing costs, condos offer numerous benefits to Coloradans looking to buy their first home,” said Bird. “Rising rent and housing prices have made it nearly impossible for hardworking Coloradans to save enough money to buy a home at the median price tag of $550,000. After years of hard work, I'm thankful for everyone who worked closely with us to help craft this new law so we can spur new housing options that Coloradans can afford and offer more Coloradans a fair shot at the American Dream.”
“HB25-1272 will make fair and balanced reforms to our construction defects laws, ensuring that high-quality homes are built, problems are fixed before sale and excessive costs that deter development can be reined in,” said Coleman. “This law is a proactive solution that incentivizes responsible development, making it a win-win for homeowners and builders alike. It’s intended to meet the demands of our communities, respond to changing demographics, and provide housing that is adaptable to different housing sizes and needs. With this law going into effect, we can create more attainable housing opportunities and ensure that more Coloradans can achieve the dream of homeownership.”
“With a shortage of over 100,000 homes across our state and a decrease in condominium development, it's becoming increasingly difficult for first-time homebuyers to find housing they can afford,” said Boesenecker. “Offering a variety of housing options is a critical piece in making homeownership a reality for more Coloradans. With this law taking effect, we can increase the availability of high-quality starter homes in the market to create more affordable housing options that work for every budget.”
“In Colorado’s mountain and rural communities, there are teachers, police officers, small business owners, nurses, and other crucial working folks who desperately want to be able to buy a home and put roots down, but there’s not any housing available for them to purchase,” said Roberts. “For years, construction defects laws have stunted the development of condos and townhomes, generally more affordable housing options for first-time buyers. This new law will change that and help ensure that we have a healthy mix of housing units, allowing more Coloradans to achieve their dream of homeownership.”
Beginning January 1, 2026, the law creates the Multifamily Construction Incentive Program. Builders will be able to opt into this program if they offer a warranty for damage and defects and hire a third-party inspector to periodically review construction throughout the building process. In exchange for providing these additional safeguards upfront, builders in the program will receive additional protections against construction defect actions, which can be costly to litigate and discourage condo development.
From 2007 to 2022, the number of condo developers working in Colorado declined by 84-percent in part due to the potential for expensive lawsuits. Meanwhile, the median age of first-time homebuyers in Colorado rose from 35 to 38 in the past year.
SB25-020 is sponsored by Senators Julie Gonzales, D-Denver, and Mike Weissman, D-Aurora, and Representatives Mandy Lindsay, D-Aurora, and Javier Mabrey, D-Denver. This law will ensure safe housing and strengthen renter protections by expanding the Attorney General’s and local governments’ authority to enforce landlord-tenant laws.
SB25-020 allows the Colorado Attorney General to seek any penalties or use any enforcement mechanisms available under landlord-tenant laws to enforce housing protections for victims of unlawful sexual behavior, stalking, or domestic violence, as well as documentation requirements for housing agreements, and extends protections regarding bed bug infestations in residential homes. The law gives counties and municipalities the ability to enforce these same landlord-tenant laws in addition to existing provisions the Attorney General may already enforce.
“In recent years, we have worked hard to strengthen renters’ protections and level the playing field between tenants and landlords,” said Gonzales. “When apartment buildings fall into disrepair because of neglect and mismanagement, it throws tenants’ lives into chaos, jeopardizes safe living conditions, and disrupts their ability to simply get through their day. This new law empowers local governments and the Attorney General to enforce the laws we already have on the books by holding neglectful management companies who have a pattern and practice of disregarding our safe housing laws to account, with the goal of ensuring that all Coloradans can live in safe and healthy housing.”
“As an Aurora legislator, I’m proud to sponsor this new law to ensure renters don’t have to spend multiple years fighting corporate landlords for basic rights,” said Lindsay. “When negligent landlords allowed several properties in my community to fall into disrepair, the city had limited tools to address the issues. This law builds on past work Colorado Democrats have done to ensure renters can live in safe conditions by empowering counties and municipalities to enforce tenant protection laws. No one deserves to live among rodents or without functioning heat or cooling systems, and this law will help ensure Coloradans have a safe place to live.”
“For too long, bad actors in property management have ignored tenant complaints, neglected basic repairs, and left communities in crisis. This must end,” said Weissman. “Recent events in Aurora and Denver highlight the urgent need for stronger tools to protect renters. Violations of our state’s safe housing laws cannot be ignored – especially in a housing crisis where every rental unit matters. SB20 is narrowly focused on tackling cases of chronic neglect where tenants have been left without options for far too long.”
“This law will hold negligent landlords accountable when they illegally ignore dangerous living conditions,” said Mabrey. “By giving the Attorney General, counties and municipalities more authority to enforce tenant protection laws, Colorado renters will have more advocates in their corner to fight for safe housing. Colorado Democrats are committed to not only making housing more affordable, but also ensuring that these affordable housing options are a safe and healthy place to live.”
SB25-020 also establishes a process where, only in severe cases with a pattern of neglect, residential housing may be placed into receivership – a legal process where a court appoints a caretaker to oversee a neglected property to temporarily manage operations, make necessary repairs, and repay debts. The law outlines the process for receivership cases, including providing proper notice to parties, defining powers and responsibilities for entities appointed as receivers, and establishing the process for ending receiverships.