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HB 25-1240

Protections for Tenants with Housing Subsidies

2025 Regular Session Introduced by Jennifer Bacon and 24 co-sponsors

HB 25-1240 — Protections for Tenants with Housing SubsidiesStatus: Governor Signed (effective May 29, 2025) Introduced: February 12, 2025 — Sponsor(s): Rep. Junie Joseph; Meg Froe

Governor Signed
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Bill Summary · HB 25-1240

HB 25-1240 — Protections for Tenants with Housing Subsidies

Status: Governor Signed (effective May 29, 2025)
Introduced: February 12, 2025 — Sponsor(s): Rep. Junie Joseph; Meg Froelich; Sen. Faith Winter (among many cosponsors)

Purpose

To strengthen protections for tenants who receive housing subsidies (e.g., HUD housing choice vouchers) by (1) limiting certain eviction and recovery practices, (2) ensuring subsidy recipients receive the same warranty-of-habitability remedies as other tenants, and (3) expanding the types of landlord conduct that constitute unfair housing practices and the remedies available to tenants.

Key provisions

  • Eviction timing: Landlords may not evict a tenant for nonpayment of rent fewer than 30 days after issuing a notice to vacate. The Department of Regulatory Agencies (DORA) is encouraged — but not required — to publish online resources to help landlords comply with this requirement.
  • Warranty of habitability: If a tenant proves a landlord breached the warranty of habitability, the landlord must reimburse the tenant the difference between rent paid and the fair rental value regardless of whether some or all rent was paid by a housing subsidy.
  • Unfair housing practices — new definitions: A landlord who (a) fails to make reasonable efforts to timely respond to requests for information/documentation necessary for a rental assistance application, or (b) fails to cooperate in good faith with a tenant applying for rental assistance, commits an unfair housing practice.
  • Remedies and penalties:
    • Courts: In private civil actions alleging discrimination because a tenant uses a housing subsidy, courts that award damages must award at least $5,000 to prevailing plaintiffs. Courts must consider losses resulting from a tenant losing their subsidy due to landlord discrimination when calculating damages.
    • Colorado Civil Rights Commission (DORA): For similar cases pursued through the Commission, the Commission must assess a civil penalty of at least $5,000 payable to plaintiffs when violations are found.

Items changed during the legislative process

  • Early versions of the bill included (1) a $20 late-fee cap for tenants receiving housing subsidies and (2) repeal of certain exemptions that shield small landlords (three or fewer rental units; five or fewer single‑family rentals) from unfair-practice liability and voucher acceptance requirements.
  • A subsequent amendment (L.002) removed the language that would have eliminated those small‑landlord exemptions; the enacted law reflects the provisions listed above (see “Key provisions”) and does not require the appropriation that was projected under the initial draft.

Fiscal and administrative impact

  • Fiscal effect: Final fiscal analysis projects minimal state revenue (possible modest increase in civil filing fees) and minimal workload increases for DORA (Civil Rights Commission) and the Judicial Department. No appropriation was required in the enacted version.
  • Implementation: DORA may see a small increase in housing-discrimination complaints; trial courts may see a small increase in civil filings. The bill took effect upon the Governor’s signature and applies to conduct occurring on or after that date (effective May 29, 2025).

Who is affected

  • Directly affected: tenants who receive housing subsidies and landlords of rental properties in Colorado.
  • Indirectly affected: local housing authorities, voucher administrators, the Colorado Civil Rights Commission (DORA), and state courts.

Compiled from official sources — confirm details with the bill’s official record.

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