Voluntary rent control may come to Colorado with HB10-1017, a bill to allow local governments to negotiate with private owners of housing units to offer affordable rents. The bill responds particularly to housing problems in mountain resort communities where workers receive minimum wage and residences are in the multi-million dollar range.

Some worry about property values

Despite its voluntary structure, some developers and real estate managers object to the bill because it may drive down rents at all properties, not just the rent control units. "Rent control fosters lower tax assessments and property values," said Gordon Von Strough of Highlands Ranch. "Rent control is a failed policy," added Brandon Rich of Real Estate Partners.

Vacancy rates in mountain properties are from 6 percent to 15 percent in the recession, said Rex Gambrall, who manages 3000 apartments in Denver and the mountains. His company is already discounting rents for apartments used for short- term employee housing during ski season. "It's not necessary to have rent control when there are already apartments available through peak season in the mountains."

Elderly need stable rents

Mary Lou Taggert, 83 years old, said she needs the protection of rent control. She's on a fixed income and needs stable rent for her housing. Mike Pappatonakis of Nina Properties in Arvada says that Section 8 is a better housing option because it makes it voluntary for the property owner to offer low income housing. Jenny Pinjuno of Colorado Counties, Inc., says that this bill is also a voluntary tool for local governments to provide affordable housing.

Bill gives local governments housing flexibility

Low income housing and Section 8 housing are federal programs, says Nancy Englecan of Housing Colorado. This bill allows negotiations to work on a local level to help the 40 percent of Colorado residents spending so much on rent that they need food assistance. Englecan says that 1 in 6 Colorado children are growing up in these poverty situations.

Counties are particularly supportive of the bill as it gives them flexibility to encourage affordable housing. "Sixty-seven percent of houses in Summit County are second homes. Our community vitality is affected by people unable to pay rent and move out of town." Well-designed, affordable housing provides value and stitches together "broken communities" where much of the population can't afford to live where they work, says Dennis Humphries, architect.

The Colorado Municipal League also supports the bill because the "rent control is an option, not a mandate." Property owners who enter into rent control arrangements with local governments will receive beneficial zoning and planning requirements. The bill squeaked by on a 6-5 party-line vote. Kiley Larsen, CCW

This post was published on February 23, 2010. Permalink »