The state House Transportation, Housing and Local Government Committee on Tuesday passed a bill by a 6-4 vote that seeks to prohibit price gouging in the rental market following declared disasters. The bill, HB24-1259, now heads to the full House for a vote.
The Colorado Attorney General has said that price gouging on rentals and hotels is illegal. But proponents of the legislation say the Colorado Consumer Protection Act is too vague on rental property price gouging. Under the bill, landlords would be liable for a civil penalty if they raise rents by more than 10% or exceed the prior year’s increase, whichever is greater.
Rep. Kyle Brown, a Democrat from Louisville, is a lead sponsor on the bill. Brown was on the Louisville City Council during the Dec. 30, 2021 Marshall Fire, which left thousands of people displaced in a regional market with a housing shortage.
“We heard a story about a family that was renting a 2,200 square-foot home for $7,500 a month. I heard another story from a constituent of mine at a townhall in December who was paying $11,000 for a single-family home,” Brown said during a committee hearing Tuesday.
“I will just say that our community has been on a journey,” he added. “I think this bill is another brick in the wall that we are building to help strengthen our resources against the next disaster.”