House lawmakers approved a proposal to require mediation between landlords and tenants before landlords can file for eviction, if the tenant receives certain financial assistance.
Under House Bill 1120, mediation would involve a landlord and tenant meeting together with a neutral third party to discuss a voluntary settlement in lieu of an eviction. If an eviction is ordered, the bill would also give tenants 30 days to leave the property, instead of the current 10 days.
The bill cleared the House Thursday, advancing to the Senate for consideration.
"This is a very, very important bill to ensure the most vulnerable members of our communities are protected," said bill sponsor Rep. Junie Joseph, D-Boulder. "There is a wide disparity in access to legal representation between landlords and people experiencing eviction in Colorado. This creates an imbalance in power during eviction proceedings."
A review of Denver eviction cases from 2014 to 2016 found that, while landlords had legal representation in every case reviewed, tenants were only represented by an attorney in 1% to 3% of the cases. Nationally, landlords have legal representation in around 82% of eviction cases, compared to 3% for tenants, according to the National Coalition for a Civil Right to Counsel.
Around 38,560 evictions occur in Colorado each year, according to state estimates. Under the bill, approximately 2,912 of the people facing eviction annually would be eligible for these new protections.
The eviction protections would apply to tenants who receive Supplemental Security Income, Social Security Disability Insurance or cash assistance through TANF. The bill would not apply to tenants of landlords who have fewer than five single-family homes or fewer than five total units.
House lawmakers voted, 44-20, in support of the bill Thursday. All Republicans voted "no" and all but one Democrat voted "yes," with Rep. Shannon Bird of Westminster joining Republicans in opposition to the bill.
Critics of the bill have argued that it would make the eviction process too long and dis-incentivize landlords and developers from investing in Colorado’s rental industry. However, Thursday's debate centered on a failed amendment that would have reported the outcomes of eviction mediations to the state.
"It helps us to know if this policy is working," said Rep. Stephanie Luck, R-Penrose, who proposed the amendment. "If it is working, there are ways by which this information can be leveraged to encourage other landlords not operating in this space to pursue these kinds of mediations. If it's not working, there's an opportunity to tweak or to amend it."
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Luck's amendment would have required mediators to report the duration of a mediation, whether it was successful, whether the parties participated and the total cost. Joseph opposed the amendment, saying she doesn't know what the fiscal impact would be.
While lawmakers rejected that change to the bill, they approved two other Republican-sponsored amendments, which stated that a landlord is only required to pay for their portion of the mediation and clarified that the purpose of the bill is to avoid eviction proceedings.
Proponents of the bill said mediation in eviction conflicts can often lead to the landlord agreeing to let the tenant stay, with solutions including setting up a payment plan, exchanging services, or forgiving late fees. If they still want the tenant to leave, it can result in the landlord and tenant agreeing on a voluntary move-out date without filing for eviction and hurting the tenant’s rental record.
Under the bill, the mediation would need to be scheduled within two weeks of the eviction notice, when possible. Tenants would have to be informed of their right to mediation by the landlord in the eviction notice and tenants would not be responsible for the costs of mediation.
The 20-day extension for qualifying tenants to leave the property could be voided, but only in cases of “substantial” lease violations.
Bill sponsor Rep. David Ortiz, D-Centennial, said extending the time before tenants are forced out of their rental home is essential, arguing that the current 10-day time limit does not give them enough time to find new housing. This is especially true for tenants with disabilities, he said.
“People with disabilities are twice as likely as their able-bodied counterparts to be impoverished,” Ortiz said. “It’s essential that we protect our most vulnerable communities that might not have the financial or legal resources to fight against the eviction process, especially in the middle of our housing crisis.”
Only 5% of newly constructed multifamily housing units are required to be accessible to people with disabilities, based on federal standards. A 2011 study found that less than 5% of housing in the U.S. is accessible for people with moderate mobility difficulties and less than 1% is accessible for wheelchair users. The bill’s protections would apply to recipients of Social Security Disability Insurance.
The bill will next be sent to the Senate for a vote in the coming weeks.
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