On Friday March 14, the Governor signed HB 14-1074. This new law allows nonprofit property owners to include reasonable expenses for improvements to the property when determining rents for nonprofit tenants. This includes expenses for depreciation, long-term maintenance, capital improvements, and energy efficency upgrades. Previously, owners could only charge for maintenance and operation of the property.
We supported 1074 because it allows nonprofit building owners to charge rents appropriate to cover the costs of improving the property and making it more resource efficient for tenants. This would encourage more nonprofit property owners to share space with other nonprofits. Previously, if a nonprofit building owner made improvements that reduced the overall expenses of the property, the owner could actually have to lower rents and pay for the improvements with other sources of funding.
Special thanks to Representatives Lois Court (D-Denver) and Brian Delgrosso (R-Loveland) and Senator Johnston (D-Denver) for sponsoring this bill and the Alliance for Sustainable Colorado for bringing this bill forward.