summary
Introduced
02/20/2026
02/20/2026
In Committee
02/20/2026
02/20/2026
Crossed Over
Passed
Dead
03/18/2026
03/18/2026
Introduced Session
2026 Regular Session
Bill Summary
The bill establishes requirements for landlords, unit owners, and associations governing common interest communities (association) for billing a tenant for utility service. A landlord, a unit owner, or an association may individually bill a tenant using a submeter or bill a tenant through a ratio utility billing system, which is a system that allocates utility service costs among individual tenants based on a unit's square footage, occupancy, or other physical characteristics. Starting on January 1, 2027, all new residential construction must install individual submeters for each individual unit to measure water consumption for each unit. A tenant's utility bill for water utility service must be calculated based on the individual submeter reading. For existing residential properties and other types of utility service other than water service, the landlord, unit owner, or association may use a ratio utility billing system if they meet certain requirements. A landlord, a unit owner, or an association shall disclose to a tenant in the tenant's rental agreement the method by which the tenant's utility bills will be calculated. If a landlord, a unit owner, or an association uses a ratio utility billing system, they must deduct at least 10% of the total utility service bill before allocating individual costs to tenants in order to account for utility service to common areas of a residential premises. If a landlord, a unit owner, or an association is found in violation of the provisions of the bill, the aggrieved tenant may file a civil action in court and, if the tenant prevails, recover actual damages from utility bill overages, additional damages in an amount not to exceed 25% of the utility bill overages, and any attorney fees or court costs.
AI Summary
This bill establishes new rules for how landlords, unit owners, and associations governing common interest communities (like condos or HOAs) can bill tenants for utility services. Starting January 1, 2027, all new residential buildings must install individual water meters, called submeters, for each unit, and tenants will be billed for their actual water usage based on these readings. For existing buildings or other utilities like gas or electricity, a ratio utility billing system, which divides costs based on factors like a unit's size or how many people live there, can still be used if certain conditions are met. Crucially, landlords must clearly explain in the rental agreement how utility bills will be calculated, and if a ratio utility billing system is used, at least 10% of the total utility cost must be deducted before billing tenants to cover common area usage. If a landlord is found to be in violation, a tenant can sue and potentially recover damages for overcharges, additional penalties, and legal costs.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
House Committee on Transportation, Housing & Local Government Postpone Indefinitely (on 03/18/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1284 |
| Fiscal Note FN1 | https://leg.colorado.gov/bill_files/112786/download |
| BillText | https://leg.colorado.gov/bill_files/112479/download |
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