Loveland Reporter-Herald

Tenants plead with lawmakers to let cities enact rules

House Democrats have thrown their support behind the proposal, but Polis is skeptical

- By Seth Klamann sklamann@denverpost.com

For hour after hour, the pleas washed over lawmakers.

It began with 65-year-old Leonard Moralez, who said the rent on his Westminste­r apartment was set to increase by $500, consuming his $1,200 monthly fixed income. He’d spent three years unhoused, he told legislator­s, and now feared “that I’m going to be homeless again.”

Four hours later, Emma-ingrid Pena-carrera described how she and her husband sleep in the living room of their twobedroom rental home in Green Valley Ranch so their children can have the bedrooms. Their rent is $2,500, she said, and covering it takes up more than half of the family’s income. Loans from friends, trips to the food bank and the sale of personal possession­s keep them afloat.

“I know many of you ignore and can’t even imagine the way we live,” Pena-carrera said in Spanish to members of the House’s Transporta­tion, Housing and Local Government committee, which spent eight hours on Wednesday listening to back-and-forth testimony about the promises and perils of rent control.

The meeting was the first public hearing for HB23-1115, which would repeal a 42-yearold prohibitio­n on local government­s enacting rent control policies. The bill, which passed the committee after lawmakers placed guardrails around how rent control policies could be enacted in Colorado, pitted tenants versus landlords and housing advocates versus property developers and business groups. Elected officials from several Colorado towns and cities, including Denver councilwom­an Robin Kniech, testified in support of the bill.

The measure has the support of nearly half of Colorado’s House Democrats, along with a coalition of housing and progressiv­e groups and the vast majority of the more than 160 people who signed up to testify. But its skeptics and opponents include Gov. Jared Polis, along with the Colorado Apartment Associatio­n, various local chambers of commerce and realtor groups. While the bill wouldn’t establish any rent cap policies statewide, it would open the door for them on a local basis, which, opponents argue, would crater Colorado’s already lagging housing developmen­t.

Ted Leighty, the CEO of the Colorado Associatio­n of Home Builders, said he understood why the sponsors — Democratic Reps. Javier Mabrey and Elizabeth Velasco — brought the bill, but he called rent control “a false idol.”

“These policies always lead to housing shortages by repelling capital investment and discouragi­ng new developmen­t, as well as reinvestme­nt in existing units,” he told lawmakers. “Rents have to rise faster in properties not subject to controls in order to make projects work.”

That’s the source of Polis’s skepticism, too: In statements to the Post, his office has said he’s concerned about the “unintended consequenc­es” of rent cap policies and their potential to hike up rent for non-protected units.

Opponents contend that rent cap policies have been unsuccessf­ul elsewhere. St. Paul, for instance, passed a 3% cap on annual increases in 2021, only for city leaders to usher in exemptions several months later because of plummeting developmen­t. Rachel Beck, the executive director of the Colorado Competitiv­e Council, referred lawmakers to a 2018 Brookings Institutio­n analysis, which argued that “rent control appears to help current tenants in the short run, in the long run it decreases affordabil­ity, fuels gentrifica­tion, and creates negative spillovers on the surroundin­g neighborho­od.”

Mabrey, an eviction defense attorney and the bill’s sponsor, countered that cities with rent stabilizat­ion policies, including Jersey City, Washington, D.C. and San Francisco, had approved more housing units per capita than Colorado cities between 2010 and 2018. He cast rent control as a tool — not a silver bullet — that should be available to local officials as they combat the housing crisis.

It wouldn’t fix supply, he said. That’s the job of Polis’s primary policy objective: land-use reform. But rent control, Mabrey said, can work hand-in-hand with zoning and supplyside policies.

As the hearing stretched past 9 p.m., tenant Christophe­r Bonham testified that he’d had a “good run” since he’d moved to Colorado in 2010. His apartment’s rent had stayed steady, and the property was well-maintained. Up until early 2020, he was “this close” to having enough money to buy a home of his own.

“None of that’s around anymore,” he said. A new property owner took over five years ago, and rent has increased every year since. “What I have today — I’m working 80 to 90 hours a week on average. I can’t keep up. I’m at a point in my life where I’ve got somebody that I’ve loved for a long time — I’m struggling to take care of her, she’s at a place where she can’t work anymore. And every day, it’s like I’m waking up to a nightmare.”

To get the bill past some hesitant committee members, Mabrey proposed — and the committee approved — an amendment that would cover any locally enacted rent control policy, should the bill pass.

 ?? ANDY CROSS — THE DENVER POST ?? Leonard Moralez fixes a cup of coffee in his Westminste­r apartment on Thursday. Moralez testified at the state Capitol Wednesday before the House of Representa­tives Transporta­tion, Housing and Local Government committee, which is considerin­g a rent control bill, HB-1115, that would allow local government­s to enact rent stabilizat­ion. Moralez, 65, a permanentl­y disabled Army veteran, is expecting to be priced out of his current apartment after his lease ends in May.
ANDY CROSS — THE DENVER POST Leonard Moralez fixes a cup of coffee in his Westminste­r apartment on Thursday. Moralez testified at the state Capitol Wednesday before the House of Representa­tives Transporta­tion, Housing and Local Government committee, which is considerin­g a rent control bill, HB-1115, that would allow local government­s to enact rent stabilizat­ion. Moralez, 65, a permanentl­y disabled Army veteran, is expecting to be priced out of his current apartment after his lease ends in May.

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