Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM

SB 12-070 Uniform Residential Landlord and Tenant Act Sen. Aguilar & Rep. Solano Staff Name: Geoffrey Vernon What the Bill Does: SB 12-70 generally adopts the Uniform Residential Landlord and Tenant Act (URLTA), which (1) simplifies, clarifies, modernizes, and revises Colorado law governing the rental of dwelling units and the rights and obligations of landlords and tenants; (2) encourages landlords and tenants to maintain and improve the quality of housing; and (3) makes uniform with other states the law governing the rental of dwelling units. Most significantly, SB 12-070 changes current Colorado security deposit law in three ways. First, Colorado law currently provides that a landlord must, within a month of the termination of a lease or surrender and acceptance of the premises, return to the tenant the full security deposit unless the lease agreement specifies a longer period of time, but not to exceed sixty days. 1 SB 12-070 removes the exception that allows for longer periods of time not exceeding sixty days during which a landlord may return a tenants security deposit and instead provides only that landlord must return to the tenant the full security deposit within a month of (a) the termination of a lease or (b) surrender and acceptance of the premises. Second, Colorado law currently provides for treble damages and attorney fees in the event that a landlord willfully and unlawfully retains a security deposit so long as the tenant gives notice to the landlord of his intention to file legal proceedings at least seven days before filing such proceedings.2 SB 12-070 removes the seven-day notice requirement and instead provides only for treble damages and attorney fees in the event that a landlord willfully and unlawfully retains a security deposit. Third, Colorado law currently does not limit the sum that landlords may collect as security deposits. 3 SB 12- limits the sum of any security deposit that a landlord may collect to one-month of periodic rent. Colorado Context: According to the U.S. Census Bureau, the percentage of Colorado households that rent increased by 8.9% between 2006 and 2010. In 2010, 1,591,171 people rented homes in Colorado. 4 Stated as a percentage:
1 2

C.R.S. 38-12-103(1). C.R.S. 38-12-103(3)(a). 3 See C.R.S. 38-12-103. 4 See Selected Housing Characteristics: 2010 American Community Survey 1 year Estimates, http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?fpt=table.

DRAFT 1/29/2012 5:52 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

 2010 - approximately 34.1% of Colorado households rented. 2008 - approximately 32.5% of Colorado households rented. 2006 - approximately 31.3% of Colorado households rented. National Context: At least fifteen states adopted some form of URLTA: Alaska, Arizona, Connecticut, Iowa, Kansas, Kentucky, Montana, Nebraska, New Mexico, North Carolina, North Dakota, Ohio, Rhode Island, South Carolina, and Virginia.5 Six other states adopted URLTA provisions that require landlords to keep residential premises in habitable condition. 6 Bill Provisions: Encourages landlords and tenants to maintain and improve the quality of housing: A provision entitled Landlord to maintain premises requires landlords to, among other things, (a) make all repairs necessary to put and keep the premises in a fit and habitable condition; (b) maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances; and (c) with few exceptions, supplying running water and reasonable amounts of hot water at all times and reasonable heat between October 1 and May 1. A provision entitled Tenant to maintain dwelling unit requires tenants to, among other things, (a) dispose of all ashes, garbage, and other waste in a clean and safe manner; (b) keep all plumbing fixtures as clear as possible; and (c) refrain from disturbing the peace. Changes current Colorado security deposit law by (a) providing that landlords must return the full security deposit within a month the termination of a lease or surrender and acceptance of the premises; (b) providing for treble damages and attorney fees when a landlord willfully and unlawfully retains a security deposit; and (c) limiting the sum of a security deposit that a landlord may collect to one-month periodic rent. Contains several administrative provisions. Fiscal Impact: No fiscal impact note on SB 12-70 exists.

Stephen J. Maddex, Propst v. Mcneill: Arkansas Landlord-Tenant Law, A Time for Change, 51 Ark. L. Rev. 575, 597 (1998); see also David I. Blower, Colorado Hb 1061 and Advocating for the End of Caveat Emptor in Residential Leases, 78 U. Colo. L. Rev. 957, 984 (2007). 6 Blower, supra note 5.

DRAFT 1/29/2012 5:52 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.