New Colorado bill introduced could give cities ability to enact rent control
A new bill introduced in the State House this last week could give cities the ability to enact rent control.
If you rent or know someone who does, you know that prices have increased rapidly in Colorado.
According to data from the Apartment Association of Metro Denver, rent has jumped 12% in just the last year – up 88% in the last decade.
Residential rent analysis company, Rentometer, found other double-digit spikes around Colorado from 2021 to 2022 – rent increased 15% in Aurora, 13% in Boulder, and shot up 18% in Fort Collins.
Susan Gibson is among the many feeling the pinch of soaring housing costs. For nearly 27 years, she's lived in her mobile home in Boulder and is proud of all the work she's put into it.
"It was built in 1963 and when I bought it, it was completely rotted out," she told CBS News Colorado anchor, Kelly Werthmann. "It really has a million-dollar view."
But now, it's more than the views taking her breath away. Rent fees for the lot Gibson's home sit on have doubled in recent years and it forced some of her neighbors, many of who are on fixed incomes, to leave.
"People who chose this lifestyle did so in order to never need government assistance," Gibson said. "To find themselves forced to ask the government for money is a shameful and horrifying thing to happen to a person."
From mobile home lots to luxury apartments, extreme rent hikes are happening across the state. In some cases, out of nowhere.
"Surprisingly, we got an email with the rent increase," said PJ Tunder, who was renting a unit at the Parq on Speer Apartments in downtown Denver.
Late last year, Tunder and his wife moved out of their high-end apartment after their rent jumped up by 44%.
"With that kind of increase, we felt like we were pushed out," he said. "We saw other apartments of the exact same size, same model, that were being offered well below what they were offering us. It's definitely greed."
With such steep rent hikes, many are wondering why there isn't rent control in Colorado.
"This is a question we get on a weekly basis," said Robin Kniech, Denver city councilwoman.
Kniech said rising rent and affordable housing is a top concern for the city. While there are rent assistance programs available, she believes more should be done to prevent outrageous price increases.
"It is important for landlords to have some rent increases to cover costs as they change over time," she explained." This is about those increases not being exorbitant and not being on the backs of our renters at rates they can't afford."
But, right now, her hands are tied.
"Every time this phone rings and I get that call, I have to tell that person that I can't do anything for them," she said.
That's because there is a decades-old state law prohibiting local governments from enacting rent caps.
While previous attempts to repeal the prohibition have failed, it's being proposed again in a year when there's renewed energy at the state capitol to address the housing crisis.
"We are in a housing emergency right now in Colorado," said state senator Sonya Jaquez Lewis, chair of the Colorado Senate Housing Committee. "Right now, the latest data shows there are over 300,000 Coloradans that are paying 50% of their income towards housing and that's not sustainable. We know we need to get that down below 30%."
Affordable housing is a big issue in this legislative session. Without giving any specifics, senator Jaquez Lewis said proposals are coming from both sides of the aisle.
"One of the things I think we need to do is look at more multi-family housing units," she said. "We have the need for ADUs, the accessory dwelling units because those give families a chance to stay together. There's some really great ideas out there that I know that we're going to be working on in the Senate, in the House. I know the governor's team is putting together a great packet, and this is the time to do it."
Supply is one thing, but cost is another.
"If we look at renters rights, lowering property tax, stabilizing rent," she said. "We know we have to do it this session. We can't wait."
While many renters want to see the state set rent limits, it could come down to local governments if the prohibition is repealed. If that happens, councilwoman Kniech would like to ensure property managers are held accountable.
"When there are disasters in our state and all of a sudden someone tries to sell you lumber at 16 times the cost, we have laws protecting consumers against that," she said. "We can and we should have laws protecting consumers against price gouging in these situations, too."
A protection Gibson believes renters like her deserve, no matter what home sweet home may look like.
"It's the most valuable thing you've ever had in your life and probably ever will," Gibson said.
Opponents of HB23-1115 believe rent control does not work and is a bad idea for Colorado.
In a statement, the Colorado Apartment Association said repealing the prohibition would remove the financial incentive to create new housing units and improve existing units, therefore resulting in higher prices.
