FROM THE PRESIDENT
BRANDON RICH | GREYSTAR REAL ESTATE PARTNERS
In 2018, Your Association Government Affairs
Team has saved the Colorado apartment industry an estimated
$86.9 MILLION
SAVINGS OF $200.84 / APARTMENT HOME
$766K $15.4M
The math describes costs to provide an adverse action notice and disseminate it
across all failed applications. Adverse action notice 433,000 (units in Colorado)
x .45(turnover rate) x 1.75 (applications per vacancy) = 340,387.5. 340,387.5 x $9
($20/ hour divided by 60 x 30 (minutes to prepare and disseminate plus costs
associated w/ adverse notice)) = $3,063,487.5 $3,063,487.5 X .25 (avg. fail rate of
applications*) = 765,871.88 Opens up to class action law suit. (*based on 2017
AAMD Member Survey) The math describes the amount of money that a landlord is likely to lose if
a tenant withholds rent due to a WOH claim. 20% (conservative estimate
of tenants likely to cite warranty issues when withholding rent in an
eviction case*). 20% of 36,240 (evictions*) = 7,248 X avg. of 1.5 months
rent withheld = $2,130*** = 15,438,240 (*based on attorney professional
estimation; **in 2016 there were 36,240 according to Princeton study
***Avg. rent Q12018 = $1,420)
HB1127: RESIDENTIAL LANDLORD
RENTAL APPLICATION
$54.9M
HB 1397 LANDLORD TENANT
WARRANTY OF HABITABILITY
$15.9M
HB 1432 PROHIBIT HOUSING
DISCRIMINATION SOURCE OF INCOME SB 057 CONCERNING CONSEQUENCES OF
RECORDS WITH RESPECT TO HOUSING
The Calculations show renting a HUD unit increases expenses by $1300 per unit.
(based on the Virginia study). 433,000 units in Colorado x 10% of units (aligned
with IHO) = 43,000 units x $1,300 added expense = $54,900,000 433,000 units in Colorado x 3% claims (lawsuits for mishandling of records,
etc) = 12,900 x $1000 per case = $12,990,000 This does NOT include
administrative training costs, software enhancement programming, or legal
review of necessary new forms ($1500-2500 per property). Estimated $3
million. $12,990,000 + $3,000,000 = $15,990,000
6 6 |
| TRENDS
TRENDS • FEBRUARY
JUNE 2018 2018
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