House Committee on Local Government (02/23/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	02/23/2010	ATTENDANCE

Time:	01:35 PM to 06:08 PM	Acree	X
		Apuan	X
Place:	SupCt	Bradford	*
		Liston	X
This Meeting was called to order by		Massey	X
	Representative Peniston	McKinley	X
		Priola	*
This Report was prepared by		Schafer S.	X
	Raegan Robb	Vigil	X
		Soper	X
		Peniston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB10-1290 HB10-1292 HB10-1017		Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole

01:36 PM

The committee chair, Representative Peniston, called the meeting to order.

01:36 PM -- House Bill 10-1290

Representative Stephens, prime sponsor, presented House Bill 10-1290, concerning procedures for small planned communities to elect to exempt themselves from certain provisions of the "Colorado Common Interest Ownership Act" (CCIOA). Representative Stephens discussed the history of CCIOA and explained that the bill allows a small common interest community to exempt itself from most of the provisions of CCIOA, with a vote of the members, shareholders, or a community's executive board. Under the bill, small interest communities can only become exempt if there are no more than 20 units in the community, they do not impose expense assessments of over $400 per year, or they have annual revenues or expenses under $250,000. The bill also allows an exempt community to reverse the decision and accept full coverage under CCIOA, but only after two years from the previous election.

01:43 PM

Lynn Jordan, Community Associations Institute, testified against the bill and discussed the formation of CCIOA. She talked about the importance of common interest communities and the provisions of CCIOA, which apply to common interest communities formed after July 1, 1992. Ms. Jordan discussed problems for small associations that could result from House Bill 10-1290 and referred to handouts received by the committee (Attachment A).

01:51 PM

Jim Cowell, Community Associations Institute, testified against the bill, discussed the changes to CCIOA, and explained the potential negative impact of House Bill 10-1290 on small common interest communities.

01:53 PM

Representative Stephens addressed questions from the committee concerning the requirement in House Bill 10-1290 that allows common interest communities with revenue or expenses of less than $250,000 to be exempt. Committee discussion ensued concerning the revenue amount of $250,000 in House Bill 10-1290.

01:55 PM

Lenard Rioth, representing himself, testified in support of the bill and discussed living in a small common interest community. Mr. Rioth explained that the bill allows smaller interest communities to be exempt from some only provisions of CCIOA, but the state nonprofit act would still apply to these entities. He discussed the process for small common interest communities to opt out of CCIOA, under the bill. Mr. Riotn addressed questions from the committee concerning the eligibility requirements in the bill that would allow for small interest communities to call meetings and elections to be exempt from CCIOA. He referred to a handout that was distributed to the committee members addressing arguments against House Bill 10-1290 (Attachment B).

02:12 PM

Jan Doran, Council of Neighbors and Organizations, testified in support of the bill and explained the need for smaller common interest communities formed before July 1, 1992 to be exempt from CCIOA. Ms. Doran addressed questions from the committee concerning the use of fees levied by small common interest communities and distributed a handout to the committee from the Council of Neighbors and Organizations (Attachment C).

02:20 PM

Jeani Frickey Saito, Colorado Association of Home Builders, testified in support of the bill and explained that communities that are exempt from CCIOA would not have their development rights negatively impacted. Ms. Frickey Saito discussed the provisions of CCIOA and reasons small common interest communities would benefit from being exempt from CCIOA. She addressed questions from the committee concerning the process of forming common interest communities and the requirements under CCIOA.

02:26 PM

Representative Stephens entered closing comments on the bill.


BILL:	HB10-1290
TIME:	02:27:58 PM
MOVED:	Priola
MOTION:	Moved to refer House Bill 10-1290 to the Committee of the Whole. The motion passed on a 9-2 roll call vote.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Apuan	Yes
	Bradford	Yes
	Liston	Yes
	Massey	Yes
	McKinley	Yes
	Priola	Yes
	Schafer S.	Yes
	Vigil	No
	Soper	Yes
	Peniston	No

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:31 PM

The committee stood in a brief recess.

02:32 PM -- House Bill 10-1292

Representative Murray, prime sponsor, presented House Bill 10-1292, concerning a clarification of the conditions of land use approvals that may be imposed by local governments under statutory provisions governing the regulatory impairment of property rights. Representative Murray discussed the need to reconcile statutory provisions governing regulatory impairment of property rights (RIPRA) under Section 29-20-201, C.R.S. concerning land use development that were found to be in conflict.

02:37 PM

Kelly Dunnaway, County Attorney, Douglas County, testified in support of the bill, talked about conditions that may be imposed on land use approvals by local governments under RIPRA, and distributed a handout to the committee (Attachment D). Mr. Dunnaway discussed specific problems where developers are able to challenge land use regulations established by local governments and addressed questions from the committee concerning the nexus between development impacts and conditions that may be imposed by local government requirements.

02:44 PM

Pat Ratliff, Colorado Counties Inc., testified in support of the bill.


BILL:	HB10-1292
TIME:	02:47:00 PM
MOVED:	Schafer S.
MOTION:	Moved amendment L.001 (Attachment E). The motion passed without objection.
SECONDED:	Soper
		VOTE
	Acree
	Apuan
	Bradford
	Liston
	Massey
	McKinley
	Priola
	Schafer S.
	Vigil
	Soper
	Peniston

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1292
TIME:	02:49:26 PM
MOVED:	Massey
MOTION:	Moved to refer House Bill 10-1292, as amended, to the Committee of the Whole. The motion passed on a 11-0 roll call vote.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Apuan	Yes
	Bradford	Yes
	Liston	Yes
	Massey	Yes
	McKinley	Yes
	Priola	Yes
	Schafer S.	Yes
	Vigil	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:56 PM -- House Bill 10-1017

Representative Kagan, prime sponsor, presented House Bill 10-1017, concerning authorization for certain public entities to enter into voluntary agreements affecting rent on private residential property. Representative Kagan discussed the history of statutory prohibitions on any ordinance or resolution that would control rent on private residential property in Colorado. He discussed recent court rulings that have confused what is allowed under rent control statutes. He specifically discussed a court case in the appeals process involving Pitkin County and the Meyerstein Trust and a ruling by the Colorado Supreme Court in the case of Town of Telluride v. Lot Thirty-Four Venture LLC. The Supreme Court determined that state prohibitions on rent control contained in Section 38-12-301, C.R.S., superseded the authority of a home rule municipality to regulate rents through municipal ordinance. Representative Kagan explained that House Bill 10-1017 clarifies the rent control statutes, explained that the bill does not prohibit or restrict the right of a property owner, and talked about the need to allow public entities to enter into an agreement to create affordable housing.

03:08 PM

Representative Kagan discussed the need to introduce prepared amendment L.001 (Attachment F) that would strike everything below the enacting clause of House Bill 10-1017. He addressed questions from the committee concerning the types of agreements that could be reached between developers and public entities. Committee discussion ensued concerning agreements for affordable housing between developers and public entities.

03:26 PM

Gordon Von Stroh, representing himself, testified against the bill, discussed the negative effects of rent control, and distributed his comments in writing to the committee (Attachment G). Mr. Von Stroh addressed questions from the committee concerning problems in states that allow rent control.

03:31 PM

Brandon Rich, representing Greystar Real Estate Partners, testified against the bill, talked about the negative effects of rent control, and explained problems with land use agreements for affordable housing between public entities and developers. Mr. Rich addressed question from the committee concerning deed restrictions for affordable housing on a property when it is sold.

03:38 PM

Rex Gambrell, representing CORUM Real Estate Group, testified against the bill, talked about managing affordable housing properties in Colorado mountain towns, and discussed different types affordable housing that are available in these communities. Mr. Gambrell discussed methods that are currently implemented in mountain communities to provide affordable housing and explained that affordable housing is typically available and accessible in Colorado mountain towns.

03:43 PM

Terry Simone, representing Multi-family Housing Solutions, testified against the bill and talked about problems with rent control in New York City.

03:48 PM

Stephanie Avery, representing Round Hill Pacific, testified against the bill, discussed other cities with rent control policies, and distributed a handout to the committee (Attachment H).

03:50 PM

Mike Papatonakis, representing Nina Properties, testified against the bill and discussed problems in cities that implement rent control. Mr. Papatonakis addressed questions from the committee concerning investing in property with deed restrictions, and housing under federal Section 8 administered by the Department of Housing and Urban Development (HUD).

04:00 PM

Lauren Brockman, representing Orion Reality Services, testified against the bill and talked about the Section 42 tax credit program for low-income and affordable housing projects and Section 8 HUD housing. Mr. Brockman talked about the potential for local governments to abuse affordable housing agreements allowed under House Bill 10-1017 and addressed questions from the committee.

04:08 PM

Scott Van Ramshorst, representing American Family Communities LLC, testified against the bill, talked about problems in states with rent control, and discussed problems with local governments abusing land use regulations and potential for abuse under House Bill 10-1017. Mr. Ramshorst addressed questions from the committee concerning the negative effects of rent control on jobs and businesses in a community.

04:13 PM

Sunny Banka, representing Colorado Association of Realtors, testified against the bill, talked about the negative impacts of rent control on property rights, and discussed problems with properties with deed restrictions. Ms. Banka addressed questions from the committee concerning support by the Colorado Association of Realtors for nonprofit foundations that address affordable housing issues.

04:18 PM

Grady Hunt, representing the Rocky Mountain Home Association and American Land Lease, testified against the bill, talked about manufactured home communities in Colorado, and explained that rent control would impact affordable housing in manufactured home communities by decreasing the income to the land owners of the community.

04:22 PM

Marilou Taggert, representing herself, testified in support of the bill and discussed the need for affordable housing for senior citizens with fixed incomes.

04:29 PM

John Ely, County Attorney, Pitkin County, testified in support of the bill and discussed the competing views regarding development agreements to create affordable housing. Mr. Ely talked about the importance of affordable housing in mountain communities and explained that municipalities refuse offers from developers to create affordable housing due to the lack of clarity created by the Telluride v. Lot Thirty-Four Venture LLC case. Mr. Ely addressed questions from the committee concerning markets and the relationship between developers and governmental entities to generate work force housing.

04:44 PM

Nancy Engelken, Executive Director, Housing Colorado, testified in support of the bill, and clarified that the bill would not address federal affordable housing initiatives such as the Section 42 tax credit program and Section 8 HUD housing. Ms. Engelken discussed the importance of affordable housing for healthy local economies and communities.

04:50 PM

Gini Pingenot, representing Colorado Counties Inc., testified in support of the bill and explained that House Bill 10-1017 was a large priority for Colorado counties so that they will have more options to create affordable housing at the local level. Ms. Pingenot talked about current methods available to local governments for affordable housing and discussed the strike-below amendment, which includes language to prohibit any form of rent control by local governments.

04:54 PM

Troy Gladwell, representing Medici Communities, testified in support of the bill and explained that the bill clarifies the Supreme Court's ruling in the Telluride v. Lot Thirty-Four Venture LLCcase to allow local governments to implement affordable housing agreements. Mr. Gladwell addressed questions from the committee and talked about the need for local governments to control the housing market within their community.

05:03 PM

Joy Klein, representing the Summit Combined Housing Authority, testified in support of the bill and discussed the need for affordable housing in mountain communities. Ms. Klein addressed questions from the committee concerning work force housing in mountain communities.

05:11 PM

Thomas F. Smith, representing the Aspen / Pitkin County Housing Authority, testified in support of the bill and talked about the amount of affordable housing in Pitkin County. Mr. Smith talked about two court cases in the Colorado Court of Appeals involving the Meyerstein Trust and a property that was deed-restricted to require affordable housing. Mr. Smith addressed questions from the committee concerning the definition of a "takings" in state law and how it related to the Meyerstein cases.

05:22 PM

The committee stood in a brief recess.

05:28 PM

Dennis Humphries, representing Humphries Poli Architects, testified in support of the bill and discussed the importance of including affordable housing when designing neighborhoods and communities. Mr. Humphries distributed handouts to the committee displaying communities designed with affordable housing (Attachment I).

Attachment I can be viewed at State Archives

05:28 PM

Joe Rowan, representing various funding partners for affordable housing, testified in support of the bill, discussed affordable housing shortages in the state, and talked about the need for local governments to cooperate with developers for more affordable housing. Mr. Rowan addressed questions from the committee concerning the impact of affordable housing on local housing markets. Committee discussion ensued concerning the characteristics of local housing markets.

05:48 PM

Meg Costello, representing the Colorado Coalition for the Homeless, testified in support of the bill and discussed the shortage of affordable housing in Colorado communities.

05:51 PM

Tim Belinski, representing Willits Town Center, testified in support of the bill and talked about the importance for local governments and developers to provide agreements to develop affordable housing under the bill.

05:53 PM

Kevin Bommer, Colorado Municipal League, testified in support of the bill. and explained that House Bill 10-1017 is not a form of rent control. He discussed the bill and explained that the bill simply provides needed options for local governments to support affordable housing.

05:59 PM

Jane Harrington, representing Housing Colorado, testified in support of the bill and discussed the importance of allowing local governments the option of entering into agreements with developers to provide affordable housing for the work force and special needs populations.


BILL:	HB10-1017
TIME:	06:07:07 PM
MOVED:	Schafer S.
MOTION:	Moved amendment L.005 (Attachment J). The motion failed on a 2-9 roll call vote.
SECONDED:	Soper
		VOTE
	Acree	No
	Apuan	No
	Bradford	No
	Liston	No
	Massey	No
	McKinley	No
	Priola	No
	Schafer S.	Yes
	Vigil	Yes
	Soper	No
	Peniston	No

Not Final YES: 2 NO: 9 EXC: 0 ABS: 0 FINAL ACTION: FAIL

06:09 PM

Representative Kagan entered closing comments on House Bill 10-1017.


BILL:	HB10-1017
TIME:	06:12:40 PM
MOVED:	Apuan
MOTION:	Moved to adopt amendment L.001 (Attachment F). The motion passed on a 6-5 roll call vote.
SECONDED:	Soper
		VOTE
	Acree	No
	Apuan	Yes
	Bradford	No
	Liston	No
	Massey	No
	McKinley	Yes
	Priola	No
	Schafer S.	Yes
	Vigil	Yes
	Soper	Yes
	Peniston	Yes
Not Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1017
TIME:	06:19:29 PM
MOVED:	Soper
MOTION:	Moved to refer House Bill 10-1017, as amended, to the Committee of the Whole. The motion passed on a 6-5 roll call vote.
SECONDED:	Vigil
		VOTE
	Acree	No
	Apuan	Yes
	Bradford	No
	Liston	No
	Massey	No
	McKinley	Yes
	Priola	No
	Schafer S.	Yes
	Vigil	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

06:20 PM

The committee adjourned.