Summary of HB10-1017

Sponsors: Kagan/Boyd

Economic Opportunity Poverty Reduction Task Force.
Current law prohibits counties and municipalities from enacting any ordinance or resolution that would control rent on private residential property (rent control statute). The bill clarifies that the rent control statute applies only to private residential housing units.
The bill also clarifies that nothing in the rent control statute shall prohibit or restrict the right of a property owner and a state agency, county, municipality, or housing authority (public entity) from voluntarily entering into and enforcing an agreement that controls rent on a private residential housing unit, whether the agreement is entered into before, on, or after the effective date of the bill. An agreement authorized pursuant to the act may specify how long a unit is subject to its terms, whether or not subsequent property owners are subject to the agreement, and remedies for early termination agreed to by both the property owner and
the public entity. Finally, the rent control statute shall not preclude public entities from cooperatively entering into an agreement, nor shall it preclude the assignment of rights and remedies to any party to the agreement.

CAR Talking Points:

HB 1017 seeks to overturn a state Supreme Court decision which prohibits local governments from enacting rent control in their jurisdictions. By redefining "interest" in a property, a local government would have the ability impose a rent control restriction through a deed restriction or covenant, or similar instrument. This means they would have considerable leverage over the owner/developer when approving a project and would give the government the power to enforce that restriction.

The deed restriction or covenant would also run with the property and can never be altered without the written express consent of the government agency and an owner. This sets a dangerous precedent wherein a government would have the ability to influence private contracts.

Further, rent control deteriorates the quality of neighborhoods and housing, reduces property tax revenues, increases costs to both the government and the consumers, and is an ineffective form of government price control.

Status:

01/13/2010 Introduced In House - Assigned to Local Government
02/23/2010 House Committee on Local Government Refer Amended to House Committee
of the Whole
02/26/2010 House Second Reading Passed with Amendments
03/01/2010 House Third Reading Passed
03/11/2010 Introduced In Senate - Assigned to Health and Human Services
03/18/2010 Senate Committee on Health and Human Services Refer Unamended to Senate Committee of the Whole
03/23/2010 Senate Second Reading Laid Over Daily
03/26/2010 Senate Second Reading Laid Over to 03/30/2010
04/01/2010 Senate Second Reading Passed with Amendments
04/05/2010 Senate Third Reading Passed
04/07/2010 House Considered Senate Amendments - Result was to Laid Over Daily
04/07/2010 House Considered Senate Amendments - Result was to Concur - Repass
04/28/2010 Signed by the Speaker of the House
04/30/2010 Signed by the President of the Senate
04/30/2010 Sent to the Governor
05/06/2010 Governor Action - Signed

Fiscal Notes

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