Why the Call for Statewide Rent Control Is Gaining Momentum in Colorado

Colorado has a housing affordability problem. A worker earning the state minimum wage must work 82 hours per week to afford a one-bedroom apartment at fair market rent, and the state median rent cost has increased more than 80% over the last 10 years. In this post, we break down what rent stabilization is, where local and statewide policies exist across the country, and why the question of cost stability has been a growing issue for Colorado renters and mobile home residents alike. 

What Is Rent Stabilization Policy?

Rent stabilization is a policy tool that limits how much landlords can raise rent each year, helping renters maintain stable, affordable housing and protecting communities from displacement, all while allowing landlords a reasonable profit. More than 180 jurisdictions across the United States use rent stabilization to address rising housing costs, including several local and statewide policies that also cover mobile home lot rent, which is the rent that mobile or manufactured homeowners pay to keep their home on a mobile home park lot. 

This matters in Colorado, where more than 85,000 manufactured home owners may face displacement because they own their homes but must pay rent on the land underneath. Colorado currently bans local rent stabilization, though a statewide policy is still legally allowed, and other states’ models show how such policies could include mobile home lot rent.

What States Have Rent Stabilization Policies? 

Oregon, California, and Washington state all have statewide rent stabilization policies. Oregon was the first to pass statewide rent stabilization in 2019, and California followed closely after that same year. Washington state just recently passed statewide rent stabilization this year. Washington, D.C. also has a rent stabilization policy in place. All of these statewide and districtwide rent stabilization policies include tenants paying rent in qualifying housing units as well as mobile homeowners paying lot rent to their parks. 

New York state has a statewide rent stabilization policy that applies exclusively to mobile home lot rent. New York State also has the Emergency Tenant Protection Act, which is a rent stabilization policy that can be adopted in localities across the state. More than 45 counties, cities, towns, or villages in New York State have adopted some form of rent stabilization policy.

Although New Jersey does not have a statewide rent stabilization policy in place, the state has a long history of allowing municipalities to implement their own forms of local rent stabilization. From 1972 to 1977, more than 110 municipalities in New Jersey adopted some form of rent stabilization. As of this year, more than 115 municipalities in New Jersey have some kind of rent stabilization policy in place. Out of those 115 municipalities, 16 jurisdictions have a rent stabilization policy in place for mobile home lot rent only.

Statewide Rent Stabilization and Home Rule in Colorado

Colorado’s 1981 ban prevents local governments from adopting rent stabilization policies, but the state can still pass a statewide policy.

For too many Coloradans, finding a safe, affordable place to live has become increasingly out of reach. Colorado ranks 10th in the nation for most unaffordable housing costs, according to research from the National Low Income Housing Coalition. According to Census Public Use Microdata Sample (PUMS) data):

• Median rent in Colorado has increased more than 80% over the last 10 years.
• More than half of Coloradan renters are cost-burdened, which means they pay 30% or more of their income on housing costs. 
• The cost of mobile home lot rent has increased 33% over the last 10 years. More than 85,000  manufactured (mobile) homeowners may face displacement because they must pay rent on the land underneath. 
• About 30% of Coloradans who live in mobile homes are 65 and over. Older Coloradans with fixed incomes are especially vulnerable to the rising costs of basic necessities, including food, housing, and health care.

Colorado’s Ongoing Fight for Rent Control 

In 2022 Colorado, lawmakers passed House Bill 22-1287 Protections For Mobile Home Park Residents. In its final amended form, this bill prohibits mobile home parks from increasing lot rent if the park has any unpaid penalties to the Division of Housing, has failed to comply with any final orders from the division, or does not have current and active registration. However, the original bill as it was introduced would have established statewide rent stabilization for mobile home parks across Colorado. This provision of the bill was removed after Gov. Jared Polis threatened to veto the bill if the mobile home lot rent stabilization piece remained in place. 

Under Colorado’s constitution, home rule municipalities have broad authority over local matters, including housing policy. Any statewide rent stabilization law must include explicit preemption language ensuring that home rule cities could not opt out or pass conflicting ordinances.

It is important to note that removing the statewide ban only gives cities the power to implement rent stabilization, not counties. For any kind of county rent stabilization, the state would have to grant the county the power because of home rule.

See Colorado Homes For All’s rent stabilization FAQ for more information about the need for rent stabilization and the movement to repeal the rent control ban in Colorado.