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New laws will create property tax credits and rebates aimed at incentivizing more affordable rentals, identify sources of rising property insurance costs
DENVER, CO – On August 7, legislation to grant local governments the authority to create property tax rebate programs to address areas of specific local concern including affordable housing development and legislation to help uncover root causes of rising property insurance for HOAs, timeshares and condo owners in rural and mountain towns go into effect.
SB24-002 allows local governments to establish property tax incentive programs to address critical issues related to housing, childcare, behavioral health, economic development and other areas of local concern. For example, a municipality will be able to authorize tax credits or rebates that incentivize property owners to convert rental properties from short-term to long-term, boosting the availability of workforce and more permanent housing.
“There has been a significant rise in the cost of housing, especially on the Western Slope, forcing Coloradans to spend more of their money on housing and less on other necessary costs, like health care and groceries,” said Speaker Julie McCluskie, D-Dillon, sponsor of SB24-002 and HB24-1108. "With our bipartisan legislation going into effect, local governments will have new tools to address the unique challenges their communities face, like shortages in workforce housing, childcare, mental health care services, and much more. Additionally, my legislation soon goes into effect to create a market study so we can learn more about what leads to rising HOA fees and lodging facilities insurance rates, which are often passed on to consumers and property owners. This will help us develop legislation that will create more affordable and reliable property insurance options for communities like mine in rural and mountain areas of Colorado.”
SB24-002, also sponsored by Representative Lisa Frizell, R-Castle Rock, allows a local government to renew a tax rebate or incentive program for up to one year if they find that it has been effective in addressing the area of specific local concern.
HB24-1108 creates a market study of property and casualty insurance for
homeowners’ associations and owners of lodging facilities. This law aims to explore current market conditions and will be used as a baseline for future legislation or state-operated programs.
“Due to the rising threat of extreme weather and wildfires, HOAs and lodging facilities have a difficult time securing affordable property insurance, which means fees increase for residents,” said Rep. Judy Amabile, D-Boulder, sponsor of HB24-1108. “This law will help uncover some of the causes that lead to rising insurance rates and lack of coverage in our HOAs and lodging properties in the urban-wildland interface and beyond. Tourism is a massive economic driver in the high country, and ensuring our HOAs and lodging facilities can acquire property insurance uplifts our economy and supports our local communities.”
This law requires the Division of Insurance in the Department of Regulatory Agencies to conduct a study of property and casualty insurance policies for HOAs and lodging facilities. The report must include key metrics including:
Current market conditions,
Availability of insurance coverage,
Affordability of insurance coverage,
Areas of the state with insurance availability concerns, and
Recommendations for long-term sustainability and availability of property and casualty insurance policies.
The report must be submitted to the General Assembly by January 1, 2026.