SB 54 — Security Deposits & Post-Closing Occupancy Agreements

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0553.01This Richardbill Sweetmanhas x4333been SENATEprepared BILLfor 26-054the SENATEsignatures SPONSORSHIPof Catlinthe andappropriate Snyder,legislative Kippofficers HOUSE SPONSORSHIP Ricks and Richardson,the JosephGovernor. e n m 2 E n 0 U U , O i i H a p Senate Committees House Committees R A Local Government & Housing Transportation, Housing & Local Government r d A BILL FOR AN ACT d 6 e 0 C ONCERNING AN EXCEPTION TO THE STATUTORY LIMIT ON THE S a , U U 3 AMOUNT THAT A LANDLORD MAY REQUIRE A TENANT TO H g r d a PROVIDE AS A SECURITY DEPOSIT IN CASES WHERE THE e M d LANDLORD AND TENANT HAVE EXECUTED A POST -CLOSING 2 OCCUPANCY AGREEMENT .

dTo 6determine Billwhether Summarythe eGovernor 0has msigned 2the Tbill nor 9taken (Note:other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisSENATE summaryBILL applies26-054 toBY thisSENATOR(S) billCatlin as introduced and doesSnyder, NKipp; g y E i a notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill S e r R e passes third reading in the house of introduction, a bill summary that r F applies to the reengrossed version of this bill will be available at 3 http://leg.colorado.gov.) i Currentlawprohibits a landlord fromrequiring a tenant tosubmit a 2 a security deposit in an amount that exceeds 2 monthly rent payments.

ealso 2REPRESENTATIVE(S) TRicks dand 8Richardson, AJoseph. n 1 E d a Shading denotes HOUSE amendment.

DoubleCONCERNING underliningAN denotesEXCEPTION SENATETO amendment.THE STATUTORY LIMIT ON THE AMOUNT THAT A LANDLORD MAY REQUIRE A TENANT TO PROVIDE AS A SECURITY DEPOSIT IN CASES WHERE THE LANDLORD AND TENANT HAVE EXECUTED A POST CLOSING OCCUPANCY AGREEMENT .

S d r Capital letters or bold & italic numbers indicate new material to be added to existing law.n e Dashes through the words or numbers indicate deletions from existing law.

m F A Thebillcreatesanexceptiontothisprohibitionforcasesinwhichabuyer and a seller of residential real property have executed a post-closing occupancy agreement in connection with the sale.

The exception takes effect November 1, 2026.

InInColoradoRevisedStatutes,amend38-12-102.5as Colorado RevisedStatutes,amend38-12-102.5 as follows:

Securitydeposits-maximumamount-exceptionSecurity deposits - maximum amount - exception for post-closing occupancy agreements - rules.

(1) On and after August 7, 2023 EXCEPT AS DESCRIBED IN SUBSECTION (2)OF THIS SECTIO,SECTION , a landlord shall not require a tenant to submit a security deposit in an amount that exceeds the amount of two monthly rent payments under the rental agreement.

(2) O N AND AFTER JANUARYANUARY 1, 2027,SUBSECTION2027, SUBSECTION (1)OF THIS SECTIONDOESNOTAPPLYIFTHELANDLORDANDTENANTHAVEEXECUTED________ ACapital POST-CLOSINGletters OCCUPANCYor AGREEMENTbold PURSUANT& TOitalic Anumbers PURCHASEindicate CONTRACTnew WHEREBYmaterial THEadded LANDLORDto PURCHASEDexisting THElaw; RESIDENCE FROM THE TENANT .

dashes through words or numbers indicate deletions from existing law and such material is not part of the act.

SECTION DOES NOT APPLY IF THE LANDLORD AND TENANT HAVE EXECUTED A POST -CLOSING OCCUPANCY AGREEMENT PURSUANT TO A PURCHASE CONTRACTWHEREBYTHELANDLORDPURCHASEDTHERESIDENCEFROMTHE TENANT .

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(Augustninety-dayperiod after final adjournment of the general assembly(August 12, 2026, if adjournment sine die is on May 13, 2026);

except that, if a referendumreferendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approvedPAGE by2-SENATE theBILL people26-054 atapprovedbythepeopleatthegeneralelectiontobeheldinNovember2026 the general election to be held in -2- 054 November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

-3-____________________________ 054____________________________ James Rashad Coleman, Sr.

Julie McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 3-SENATE BILL 26-054