LEGISLATION
$ 40,000,000 | PASSED INTO LAW Innovative Housing Incentive Grants ( HB 22-1282 )
These funds are available as grants for the development of factory-built housing units . The impact of this money remains to be seen and will be largely dependent on the creativity of the grant applicants . It has long been an expressed architectural ambition to create factory assembled units that can be connected for multifamily rental use . It remains to be seen whether innovators can utilize this money to provide us with a more affordable multifamily housing unit or whether the money will be wasted on existing depreciable mobile housing units .
$ 35,000,000 | PASSED INTO LAW
Loans And Grants For Mobile Home Park Residents To Purchase Parks ( SB 22-160 )
While this bill does absolutely nothing to make housing more affordable ( the stated goal of the Task Force ), it does inject an artificial $ 35 million into the economy to allow one ownership entity to buy mobile home lots from another entities . While the program will result in the creation of no new housing units , it will directly increase the price and value of all Colorado housing - including that owned by our membership .
$ 17,000,000 | PASSED INTO LAW Temporary Property Tax Reductions ( SB 22-238 )
This bill reduces the property tax assessment rate on multifamily rental units from 6.8 % to 6.765 % during the 2023 tax year . Our estimate of the industry impact of this property tax decrease is $ 17 Million .
$ 6,000,000 | PREVENTED INTRODUCTION Short Term Rental Property Taxation
We derailed two separate bills attempting to impose 29 % commercial property tax assessment rates on short-term rental properties . As approximately 1 % of our members portfolios are involved in occasional short-term rental use , defeating these bills saved our membership .
PRICELESS | AMENDED ON HOUSE FLOOR Mobile Home Rent Control ( HB 22-1287 )
This bill contained a statutory cap on annual rent increases in mobile home parks . Even though this artificial price control did not directly affect our members portfolios , we belief that if it was passed , it would be a springboard to broader rent control . We made this rent control provision the focus of our largest legislative efforts this season . It ’ s hard to quantify the negative effect of this potential cap on rent increases , as it was tied to growth in the consumer price index ( which currently is growing faster than any housing provider can raise rent ). However , we believe the stifling of new development and renovation of existing housing that results from rent control significantly impacts all housing providers .
Drew Hamrick is a General Counsel and Sr . VP of Government Affairs at Apartment Association of Metro Denver .
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