March 2025 Public Policy Outlook

Published March 28, 2025 | courtesy of Kathie Barstnar

The Colorado General Assembly is halfway through its 2025 legislative session with 38 days remaining. Many issues are working their way through the process. Here are a few early success stories and the top 3 issues to be aware of:

 WINS:

·       HB25-1095: Petitioner Requirements in Certain Property Tax Appeals: This bill was killed in committee after many discussions with the bill sponsors and working with the County Assessors Association. It would have required property owners to pay for specific types of independent appraisals that even the assessors said gave too much power to the assessors. Most importantly to our members it would have required disclosure of full leases to the Board of Assessment Appeals thereby breaking all kinds of non-disclosure clauses. Before being listed as being “Postponed Indefinitely” it was voted down 11-2! Thank you to Tyler Carlson who testified in committee and our partners at BOMA and DMCAR to get this bill killed

2.        Energize Denver Proposed Changes:

·        You can reach the latest proposed changes to Energize Denver here . While these changes, on their face, show a willingness by the city to make it easier to comply with longer deadlines and potentially reduced fees, the devil will be in the details. Many of these changes are to the technical supporting documents and not the underlying ordinance. This means CASR’s promised changes are not binding, subjecting the public to the whims of the Denver government. By clicking the link above you can see the remaining dates for public comment and you can sign up for the hearing on April 1. Click here for a response that was sent to the CASR office on behalf of NAIOP Colorado.

3.        Colorado Energy Office (CEO) Update to Building Performance Standards: HB25-1269 – Building Decarbonization Measures

·        Back this year is the Colorado Energy Office with an attempt to clarify building performance standards. While the idea behind the bill is a response to the needs of the commercial real estate industry, the reality is something else entirely. Yes, the bill does ease the 2026 standard requirements and pushes them to 2030, but the price tag is currently too high. The bill includes a requirement to positively affirm that your building is out of compliance which may limit your legal challenges down the road. It also includes the creation of an Enterprise Fee and the increase in the filing fee from the current $100 to $500 per building per year. Lastly, the penalty structure was proposed to change from the currently capped fee of $2500 for the first offense and $5000 per month thereafter to the currently statutory penalty fees that the Colorado Air Quality Division can impost which can go as high as $47,357 per day! Last night in committee that was amended out and the original fees of $2500 and $5000 will stay in place with adjustments for inflation. That is a huge win on this will. Negotiations are on-going regarding the 2026 standards becoming “voluntary” and what official communications you would need to provide.

4.        Construction Litigation Reform

·        There are a number of bills working their way through the legislature dealing with Construction Litigation Reform. Some are bad bills (HB25-1061 and SB25-157) and some are productive bills (HB25-1272 and SB25-131). NAIOP Colorado has been working with Representative Bird to review and propose amendments to HB25-1272 in a way that will help move the needle in getting for-sale attached multi-family condos and townhomes to be built again in Colorado. This bill has received bi-partisan support and is supported by the Governor. Here is link to the bill. Follow this bill on the tracking list below as amendments are expected at any moment.

5.        Bill Tracking Link: Click Here

·        Every session, the Public Policy Committee, along with our lobbying team with Husch Blackwell Strategies, track bills as they are introduced to determine their potential impact on our industry. This is a link to that tracking system. Bookmark this link and you can track these bills with us during the session.

6.        LAWSUITE Update:

·        You may remember that NAIOP Colorado joined the Apartment Association of Colorado, the Apartment Association of Metro Denver, and the Colorado Hotel Lodging Association to file a lawsuit in Federal District Court in Colorado challenging Energize Denver and Regulation 28. On Friday, March 28, 2025, the judge ruled that the case be dismissed, but allowed 21 days for us to submit an amended filing. We are reviewing the decision and considering all our options. Stay tuned for more information. In the meantime, if you have completed your ASHRAE II studies and have outcomes you would like to share with us, please contact Kathie. Don’t hesitate to contact us if you have questions or would like more information. 

For those eager to make a difference, opportunities abound. Consider joining our Public Policy Committee or supporting advocacy efforts through financial contributions. Connect with Tyler Carlson or Kathie Barstnar to explore engagement avenues further. Click here to link to the Public Policy Fund marketing document.

 As we reflect on the current session, one thing remains clear: our collective engagement shapes the trajectory of Colorado’s commercial real estate landscape. Let’s continue to collaborate, innovate, and advocate for a prosperous future.