Last week, Colorado passed H.B. 1134, a bill to
Create the tenants’ rent payment information pilot program…and directs the Colorado housing and finance authority…to contract with a third party to administer the pilot program in accordance with rules promulgated by the authority. The administrator shall recruit no more than 10 landlords to participate in the pilot program. A tenant may participate in the pilot program only if the tenant elects to participate and completes a financial education course. On or before January 1, 2024, the authority, in consultation with the administrator, shall submit to applicable legislative committees of reference a report concerning the pilot program. The pilot program is repealed, effective June 1, 2024.
CDIA strongly supports a combination of voluntary rent reporting by landlords and self-reported rental payment reporting to consumer reporting agencies (CRAs). It’s well documented that when rental payment history information is reported to CRAs, consumers will benefit. See, HUD report, NYC Comptroller report. Rent payment reporting lifts un- and under-banked consumers into the financial mainstream, and the benefits are most pronounced for consumers at the lower end of the economic spectrum.
Colorado becomes the second state to encourage or require rent reporting by certain landlords to consumer reporting agencies. California became the first state to pass such a law when, in 2020, the legislature passed the first of its kind law (S.B. 1157 (Ch. 204, Laws 2020) on mandating optional reporting. In California,
beginning July 1, 2021, any landlord of an assisted housing development [as defined by Gov’t. Code 65863.10(a)(3)] shall offer the tenant or tenants obligated on the lease of each unit in that housing development the option of having the tenant’s rental payment information reported to at least one [603(p) CRA] or any other [603(f) CRA] so long as the consumer reporting agency resells or otherwise furnishes rental payment information to a [603(p) CRA]. A tenant’s election to have rent reported under this subdivision shall be in writing…” Cal. Civ. Code Sec. 1954.06(a).