Thousands of evictions across Colorado could be prevented in coming months after Gov. Jared Polis signed a law Tuesday that sets aside $30 million in new assistance money for low-income renters.
The money, passed by lawmakers during a special session last week, will nearly double the $35 million already available in the current fiscal year for state rental aid. It bolsters the state’s ability to keep people in rental housing after the hundreds of millions of dollars received by the state in federal pandemic-era aid funds has run dry.
“The state’s investment in emergency rental aid will help nearly 6,000 households avoid eviction,” estimated Zach Neumann, the co-founder of the Community Economic Defense Project, which distributes rental aid for at-risk tenants. “It’s a meaningful commitment to keeping our neighbors housed.”
Under the legislation, the state must spend the money by June 30, when the fiscal year ends.
The $30 million approved by lawmakers and Polis will provide $10 million more than the state would have spent under Proposition HH, the property tax relief ballot measure rejected by Colorado voters in the Nov. 7 election. The state’s new investment comes as Denver, facing a record-breaking eviction wave, has budgeted nearly $30 million next year to help local tenants through a city rental assistance program.
The new state money will be sent to the state’s Department of Local Affairs. It will contract with nonprofit groups across the state to distribute money to landlords who have low-income tenants facing eviction.
“While we continue to work on long term solutions to lower housing costs and reduce evictions, this is a critical way we can get immediate relief directly to the families that need it most,” Sen. Janet Buckner, an Aurora Democrat, said in a statement. She co-sponsored the bill with fellow Democratic Sen. Julie Gonzales and Reps. Leslie Herod and Mandy Lindsay.
After Proposition HH failed and Polis announced a mid-November special session, progressive lawmakers and their allies had prioritized a boost in rental aid as part of a broader effort to deliver relief to lower-income earners. Rep. Emily Sirota, a Denver Democrat, told fellow Democrats before the special session that an “overarching theme” from Proposition HH’s failure, in her view, was a “need to address support for renters.”
Other legislators and housing advocates pointed out that policymakers had rushed to insulate property owners from the same cost increases that renters have weathered for years.
In Denver, city officials expect eviction filings to surpass 12,000 this year, the most since at least 2008, which is as far back as the city keeps records. Statewide, evictions are higher than before the pandemic.
The rental aid bill was one of seven approved during the special session. As the four-day session ended Nov. 20, Polis signed four bills, including the marquee measure aimed at blunting the impact of expected property tax increases coming early next year by changing residential deductions and assessment rates. Others will provide uniform refunds under the Taxpayer’s Bill of Rights, which will increase the returns for most taxpayers; will expand the Earned Income Tax Credit; and will increase staffing to support a tax deferral program.
On Tuesday, Polis signed the rental measure and two other bills: one signing the state up for a federal program that will provide summer meals for children and another that will create a task force to study long-term property tax solutions.
“This special session was about delivering relief for hardworking Coloradans,” Polis said in a news release.
Polis and legislative leaders say the task force, which is set to include several county commissioners, will begin meeting in December and will report its recommendations to lawmakers by March 15.
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