Colorado’s New Occupancy Law: HB 24-1007

The Colorado legislature has recently enacted House Bill 24-1007 which introduces significant changes to state law concerning occupancy requirements in rental properties. This new legislation alters the power that municipalities previously held in regulating the number of residents in rental properties.

Key Points

1. Historically, municipalities, cities, and towns had the authority to impose restrictions on the number of individuals allowed to live together in rental properties. For example, in Fort Collins, a local ordinance was established that limited the number of unrelated individuals who could reside in a single-family home to just three. This ordinance aimed to address concerns related to the concentration of college students in rental properties.

2. HB 24-1007 changes the landscape by prohibiting local governments from imposing occupancy limits based on family relationships. This change means that municipalities can no longer restrict the number of unrelated people who can live together in a rental property.

Exceptions and Allowances

There are specific allowances under HB 24-1007:

1. Health and Safety Standards: Local governments may still enforce restrictions to comply with building codes, fire regulations, and other health and safety standards. For example, if accommodating a large number of people in a small property would violate safety codes, these restrictions would still be applicable.

2. Affordable Housing Program Guidelines: The bill acknowledges existing federal and state guidelines related to affordable housing programs. These programs have their own occupancy standards, and HB 24-1007 does not supersede these requirements.

HB 24-1007 does NOT prevent property management companies from setting their own occupancy standards. For example, at Grace Management, we have policies in place to ensure properties are rented under appropriate conditions and occupancy limits.

The full impact of HB 24-1007 will become clearer as it is interpreted and enforced. It remains to be seen how municipalities will navigate these changes and whether any new interpretations will arise.