Association Members,
Earlier this month we wrote to you summarizing the issues created by conflicting legal opinions interpreting the language of HB 25-1090 and the Association’s attempt to get guidance from the Colorado office of the Attorney General on enforcement of those provisions as they relate to mathematical apportionments of utilities for units when those utilities are delivered through a common tap or meter. We are pleased that the Attorney General has issued a memorandum which appears here (click to view):
The Memorandum indicates that the provisions of HB 25-1090 will not be applied to leases entered into before January 1, 2026 and when the provisions are applied to new leases the Attorney General will not pursue legal actions against landlords that allocate utility costs among tenants using a ratio utility billing system that:
1) The aggregate amounts billed to all tenants do not exceed the total amount charged by the utility provider for the specific property;
2) The landlord does not apply a markup, surcharge, administrative fee, or other amount in excess of the actual charges from the utility provider, except as otherwise permitted under § 38-12-801(3)(a)(VI), C.R.S.;
3) Utility costs for common areas or shared facilities are excluded from any tenant allocation; and
4) The landlord clearly and conspicuously discloses the reasonable and objectively fair method of allocation in the rental agreement and any disclosures otherwise required by law.
If you have questions, please type them in the text box below and a member from AAMD’s Government Affairs Staff will contact you.