A Welcomed Pause

Colorado's 2026 Legislative Session Delivered Greater Certainty For Rental Housing Providers, Offering Meaningful Progress After Years Of Sweeping Regulatory Change

Some say that music is the silence between the notes. Not passing these disruptive laws represents a meaningful shift for Colorado. After consecutive years of significant regulatory change, this session reflects progress. Demonstrating that engagement matters, balanced
perspectives can influence outcomes, and collaboration between stakeholders and policymakers is possible. There were some potentially disruptive proposals made that would have significantly delayed the eviction process, cost landlords untold amounts of time and resources to process a single default, and some wasteful ideas that would have generated significant unnecessary paperwork.

Here are the laws from the session that did pass and were signed into law by Governor Polis.

HB26-1013
Ratio Utility Billing Systems (RUBS) Fix

Effective March 2026, this act authorizes RUBS as an approved method to allocate utility charges. With appropriate disclosures being provided to tenants, that includes calculation methodology. This was a huge development for the industry, helping both landlords and tenants with the certainty that this billing process is allowed in Colorado. It is a great example of cooperation and coordination between the legislature and housing providers. To be able
to pass targeted legislation that clarified an ambiguity in the law, and provides benefits to all Coloradans that either operate or reside within rental housing.

Under HB26-1013, landlords may utilize RUBS provided that:

• Total charges do not exceed actual utility costs;
• No additional fees or markups are applied;
• Common area utilities are excluded through a proper Common Area Deduction (CAD); and
• The allocation method is clearly disclosed in the lease.

Additionally, for residential premises constructed under permits applied for
on or after July 1, 2027, utility service must be metered directly by the utility
provider or by a submeter.

SB26-189
Automated Decision-Making Technology (AI)

Effective January 1, 2027, this law applies to AI-driven tools used for "consequential decisions," including tenant screening, pricing, and lease renewals. Key obligations: provide clear notice of AI usage at the point of interaction, ensure an opportunity for meaningful human review after adverse outcomes, and requirements to retain compliance records. This was the AI fix, that goes well beyond the multifamily industry, as we continue to see AI impact everyone’s lives.

HB26-1007
Portable-Scale Solar Devices

Beginning January 1, 2027, landlords cannot impose blanket prohibitions on portable-scale solar devices. Owners may still enforce reasonable, documented restrictions regarding advance notice, fire/electrical safety, property damage prevention, and installation location.

While this law goes into effect in August, the limitations on these devices do not kick in until January. One area that some tenants have found confusing, when consulting AI and making early inquiries to landlords. Landlords can expect to use a lease addendum (similar to satellite dish addendums) when permitting usage of these devices in 2027.

HB26-1196
Tenant Data & Screening Disclosures

Effective January 1, 2027, rental applications must include three specific disclosures: (1) the types of data/information screened, (2) a general description of screening factors (credit, income, rental history), and (3) the name of any third-party screening vendor used. Additionally, landlords must redact sensitive personal identifying information from public eviction filings, which includes: Social Security numbers (SSNs), dates of birth, and financial account numbers.

Looking Ahead

The work is not finished. If anything, this session highlights the importance of continued engagement, which is critical as we look to the year ahead where we will have new faces in the state house and senate, along with a new governor.

Legislative proposals will continue to be introduced. Policy discussions will continue to evolve. And the need for thoughtful, informed participation from the housing industry will remain critical.