​Rent-setting software ban supporters blast Polis veto

Yahoo

3 days ago

Colorado Gov. Jared Polis speaks during a news conference about a bipartisan property tax reduction bill on May 6, 2024, at the Colorado Capitol. (Quentin Young/Colorado Newsline)
Colorado Democratic lawmakers criticized Gov. Jared Polis after he vetoed a bill on Thursday afternoon that would have banned the use of computer algorithms to set rent in the state, calling the decision a failure of the state's values.
'Gov. Polis had the opportunity to save Coloradans money, but he instead aligned himself with tech companies that are engaged in practices so questionable that they're currently facing litigation from the federal government,' Sen. Julie Gonzales, a Denver Democrat and bill sponsor, said during a virtual press conference on Friday morning.
House Bill 25-1004 was written as a consumer protection bill to ban software that uses private market data to suggest profit-maximizing rents to landlords.
The Biden administration released a report last year that found software from companies like RealPage cost Denver renters an extra $136 per month, one of the highest monthly cost increases in the country, and is used in over 45% of multifamily rental units in the city.
Colorado Attorney General Phil Weiser last year also targeted the practice when he joined an antitrust lawsuit against RealPage.
In his veto letter, Polis wrote that he prefers to allow 'current state and federal investigations to run their course — including those Colorado is a party to.'
He wrote that he agrees with the intent of the bill, and that collusion to artificially constrain rental supply is already illegal, but he worried about its effect on the state's housing market.
'We should not inadvertently take a tool off the table that could identify vacancies and provide consumers with meaningful data to help efficiently manage residential real estate to ensure people can access housing,' he wrote. 'If signed today, this bill may have unintended consequences of creating a hostile environment for providers of rental housing and could result in further diminished supply of rental housing based on inadequate data.'
A RealPage spokesperson lauded Polis' veto.
'This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike,' Jennifer Bowcock of RealPage said in a statement.
The bill was sponsored by Gonzales, Sen. Nick Hinrichsen of Pueblo, Rep. Steven Woodrow of Denver and Rep. Javier Mabrey of Denver, all Democrats. A similar bill died last year, but this year's version passed on party-line votes in both legislative chambers.
'During my time at the Legislature, we've been tasked by the governor to save people money,' Woodrow said. 'During special sessions, we've been called down to cut property taxes to save homeowners an average of $80. Why we couldn't find the means to save renters 200 times that with a stroke of a pen is simply beyond unfortunate. The governor has punted this to the courts.'
Groups that supported the bill included the Community Economic Defense Project, The Bell Policy Center, the Colorado Fiscal Institute and United for a New Economy. Supporters hoped the Biden White House report and pending litigation would help usher it into law this year.
'Unfortunately, the veto sends this devastating message that corporate landlords can keep using secret price-fixing algorithms to take extra rent from the people who have the least,' CEDP co-founder Sam Gilman said.
The veto is Polis' 11th this year. He has until June 6 to sign or veto bills passed during this year's legislative session, which concluded earlier this month.
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