Insights

Colorado’s legislative session is just over halfway through and is scheduled to adjourn in mid-June. Several bills that have been introduced [1] and are making their way through the legislative process may be of interest to property and business owners in Colorado. This Alert includes a brief summary of each bill that Otten Johnson is tracking, along with a link to the text of the bill and a note about its status [2]. Please also see Otten Johnson’s March 2021 Alert for coverage of HB21-1117.

Colorado’s legislature appears poised to pass a bill giving local governments power to require new rental housing developments to provide affordable housing units. If adopted, the bill would reverse a longstanding interpretation of the state’s rent control statute precluding such requirements, which are commonly known as “inclusionary housing ordinances.”

Colorado’s population has increased by nearly 1.5 million people in the past two decades, growing at a rate faster than most of the United States. This influx in population, particularly along the Front Range, has not been without growing pains, particularly in the housing market. As more people move-in, and Colorado’s housing supply is further squeezed, for-sale and rental prices have skyrocketed, creating the need for more low- to moderate-income affordable housing units than ever before. HB21-1117, which passed in the Colorado House of Representatives and was recently introduced in the Senate, seeks to address this need, by permitting local governments to adopt inclusionary housing laws aimed to generate affordable rental housing in their respective communities.

On February 8, 2021, Denver City Council adopted a set of text amendments to the Denver Zoning Code known as the “Group Living Text Amendment.” The Amendment is an overhaul to the Zoning Code’s regulation of residential uses, which aims to update what many view as outdated regulations that have contributed to inequity, limited housing options, violated the federal Fair Housing Act, and reinforced historical division in Denver. Most notably, the Amendment increases the number of unrelated adults that are permitted to live in a single dwelling.

Commercial real estate joint ventures provide an effective way to join capital with development and operational expertise. A sponsor who identifies a project for acquisition or development enters into a joint venture with an investment partner who brings the necessary capital and investment oversight. Most often, the parties structure such ventures through a single-purpose, limited liability company that owns and operates the project as its sole asset. Once the project is sold, the parties go their separate ways or, if the initial relationship was amicable and profitable, they may explore the possibility of entering into subsequent ventures on similar or different terms.

Denver, Colorado – Otten Johnson Robinson Neff + Ragonetti PC (Otten Johnson) is pleased to announce that Cory M. Rutz has been elected a shareholder and director of the firm. Her new role was effective January 1, 2021.

On December 8, 2020, the U.S. Securities and Exchange Commission (the “SEC”) amended and modernized the definition of an “accredited investor” in Rules 215 and 501(a) of Regulation D, promulgated under the Securities Act of 1933 (the “Securities Act”). These amendments expand the definition and will generally increase the number of potential accredited investors. This is a positive change that should lead to greater investment overall, but an understanding of the amendments is necessary to take advantage of the expanded definition.

As Kimberly Martin takes over as the fourth managing partner, and first female leader, of Otten Johnson Robinson Neff + Ragonetti PC, she does so as a woman in the field of land use and real estate. After 17 years practicing law, her advice for those in the field, especially women, is to be genuine.

On December 2, 2020, Colorado’s 72nd General Assembly concluded a whirlwind special session, approving nearly $350 million in relief and aid programs to support Colorado families and businesses amidst the surging COVID-19 pandemic. Legislators funded the relief measures with an unanticipated surplus in 2019 income tax revenues otherwise slated for the state’s budget reserves.