After 20 Years, Colorado May Reverse Decision That Limits Cities’ Affordable Housing Powers

Rent control is a major topic in the 2020 legislative session. To implement rent control, limitations that have been in place for decades would need to be lifted. Colorado Public Radio explains:

“The Colorado Supreme Court ruled in 2000 that cities can’t force developers to include lower-cost housing units in new developments. The court found that the policy, known as “inclusionary zoning,” qualifies as a form of rent control, which is illegal under state law.”

“This year’s scaled-back effort could have a better chance of passing — but it’s likely to face questions and pushback from developers.”

“The question is, does inclusionary zoning come with public assistance or subsidies for the builders?” said Teo Nicolais, a real estate investor and instructor at Harvard Extension School.

Read more at Colorado Public Radio

Colorado Real Estate Journal

A study done by the National Apartment Association shows why rent control doesn’t work. Colorado Real Estate Journal released an op-ed by Terry Simone, President of Colorado Apartment Association, explaining the details.

“According to the analysis, conducted by Capital Policy Analytics, the impact of imposing a 7% rent growth cap in Denver would equate to $462 million decrease in property value and a loss of $3.5 million in property tax revenue.”

“NAA’s latest findings, combined with 40 years of research demonstrating the failure of rent control policies, underscores the importance of lawmakers looking at real solutions that provide tangible benefits. Fortunately, there are plenty of those “real solutions” out there.”

Read more at Colorado Real Estate Journal