A major legal shift has arrived for Colorado landlords with the recent passage of HB25-1240: Protections for Tenants with Housing Subsidies. Effective May 29, 2024, this legislation introduces sweeping changes that impact all rental property owners—regardless of portfolio size or property type.
Whether you own one unit or manage dozens, it’s critical to understand what this law means and how to stay compliant.
Key Changes Landlords Need to Know
1. Universal Acceptance of Housing Subsidies
All Colorado landlords are now required to accept housing subsidies such as Section 8 vouchers, with no exemptions for small landlords or individual investors. Refusing an applicant based on their use of housing assistance is now considered a fair housing violation.
Landlords are legally required to:
-
Accept applications from tenants using housing subsidies
-
Cooperate with housing authorities
-
Submit required paperwork promptly and in good faith
Failure to comply could result in fines up to $50,000.
2. 30-Day Eviction Notice Requirement
For tenants receiving rental assistance—or for any tenant in a property with a federally backed mortgage (FHA, VA, USDA, etc.)—landlords must now provide a 30-day notice before initiating eviction for nonpayment of rent.
This replaces the standard 10-day notice previously used.
Landlords unsure about their mortgage type are encouraged to verify this information to ensure compliance.
3. Late Fee Cap
Late fees for tenants with housing subsidies are now capped at $20, regardless of what the lease states.
All lease agreements should be reviewed and updated to reflect this limit.
4. Warranty of Habitability Adjustments
New provisions apply when rental units become partially uninhabitable:
-
Rent must be proportionally reduced based on the space affected.
-
If rent (or a subsidy) has already been paid, the tenant must receive a prorated refund for the uninhabitable period.
These calculations can be complex and will likely vary on a case-by-case basis.
5. No Grace Period — Penalties Apply Now
This law is already in effect and being enforced.
Violations can lead to penalties ranging from $5,000 to $50,000, plus possible civil fines.
There are no exemptions for small landlords—compliance is mandatory across the board.
What This Means for Colorado Landlords
HB25-1240 represents a significant change in how rental housing must be managed. It underscores the growing emphasis on housing accessibility, tenant protections, and fair housing compliance throughout the state.
If you’re a landlord or property manager in Colorado, now is the time to:
-
Review and update your lease templates
-
Train your staff on compliance
-
Establish clear procedures for handling subsidy applications
⚠️ This blog post is for informational purposes only and does not constitute legal advice. For guidance on specific situations, consult a qualified attorney or housing law expert.
If you're a property owner looking for help navigating these changes, The Denver Group works with trusted property management professionals who can help you stay compliant while protecting your investment.
Reach out today for recommendations or to learn more.
Want more posts like this? Sign up HERE for updates straight to your inbox!
