Please be aware and get involved! Proposition HH in Colorado

[Virginia Franzese]

If you own property, particularly any property that is not your primary residence, please be aware and get involved! The passing of this proposition will nearly quadruple property taxes for short term rental properties. 

The  would classify homes that are rented for more than 90 days a year on a short-term basis — defined as less than a month per booking — as commercial lodging properties. The property tax assessment rate for lodging properties is 27.9% compared with the 6.765% rate used this year for residential properties.

On Tuesday, proposition HH passed through the committee with a vote of 4-2.  With passage through this committee, the bill will now be introduced to the Colorado Legislature in January. We are hearing that the legislators pushing this bill are hoping to fast track it and SWIFTLY pass it early in the session.

"Why Proposition HH Spells Trouble for Colorado Property Owners" by Todd Ruelle

As Colorado residents, we take pride in our state's natural beauty and vibrant communities. We also value our rights as property owners and understand the importance of responsible governance. However, Proposition HH, if passed, could jeopardize the well-being of Colorado property owners and have far-reaching consequences for our state.

At first glance, Proposition HH may appear to be a noble effort to address the issue of housing affordability. It seeks to impose rent control measures in certain areas, with the intention of making housing more affordable for residents. While the goal is admirable, the approach taken by Proposition HH is deeply flawed and could ultimately harm the very people it aims to help.

One of the most concerning aspects of Proposition HH is its potential to stifle investment in rental properties. When property owners are subjected to strict rent control measures, they have fewer incentives to maintain and improve their properties. This can lead to a decline in the quality of rental housing, making it a less attractive option for tenants. In the long run, this could exacerbate the housing problem by reducing the supply of quality rental units.

Furthermore, Proposition HH could discourage new investment in Colorado's real estate market. Investors may be hesitant to put their money into properties when the government can arbitrarily dictate rental prices. This reduced investment can have a negative impact on property values and the overall health of the real estate market, affecting property owners who rely on the value of their homes for their financial security.
Another concern is the potential for unintended consequences. Rent control policies have been shown to lead to a shortage of rental housing in other cities and states. When landlords are unable to cover their costs or make a reasonable profit, they may choose to exit the rental market altogether. This could further limit housing options for Colorado residents and potentially result in higher rents for those not covered by the rent control measures.

Moreover, Proposition HH could infringe upon property owners' rights to manage their investments as they see fit. Property ownership comes with the responsibility of maintaining and managing one's assets. Rent control measures that limit an owner's ability to set rental prices interfere with this fundamental right.

While the idea of addressing housing affordability is important, Proposition HH is not the right solution for Colorado property owners. It may have good intentions, but it risks creating more problems than it solves. Rather than imposing rigid rent control measures, we should explore more effective ways to address housing affordability, such as increasing the supply of affordable housing through incentives for developers or providing targeted assistance to low-income renters.

In conclusion, Proposition HH threatens the rights and financial well-being of Colorado property owners while potentially failing to achieve its intended goal of making housing more affordable. It is imperative that we consider alternative solutions that promote responsible governance and preserve the rights of property owners. Let's work together to find a more balanced approach that benefits all Colorado residents.