The Aspen Board of REALTORS® works hard to provide our members with the value and benefits you deserve. Together with the Colorado Association of REALTORS® and the National Association of REALTORS®, we work hard to protect you and your clients at City Hall, in County Commission, at the State Capitol in Denver and in the halls of Congress. Our advocacy efforts are at the center of our value proposition to members, and this report is a monthly summary of what’s going on at the local state and national levels.

If you have any questions about these issues or anything else impacting your business, please contact me at Nickbok22@gmail.com or 303-807-4067. I want to hear from you on public policy issues that impact your business.

Local News: Pitkin County Moves to Incentivize Landowners rather than Mandate Land Use that Limits Development

Pitkin County chose to go with the carrot instead of the stick with a recent amendment to its land use code that exempts large parcels from the growth management process in exchange for vested rights and a conservation easement.

The Growth Management Quota System (GMQS) is the county’s tool for controlling the rate at which zoned areas develop. Square footage allotments apply throughout the county, and property owners/developers compete for the right to develop the allotted square footage through scored applications.

The system has exceptions, including large parcels — 500+ square acres, as the county defines. If an owner only develops one single-family unit on the property within the square footage limits and concedes development rights to the county, they can skip the GMQS process.

The discussion centered around incentivizing property owners to utilize the exception. How can the county make it attractive to landowners to forgo the right to maximize development on the parcel? Minimize red tape and ensure floor area rights forever, according to the county. The idea of the exemption is to prevent dense development on valuable land.

Under the amended exception, anyone who owns a parcel 500 acres or larger may bypass the GMQS if they build one single-family dwelling unit up to the zone district’s limit — with allowances for a caretaker dwelling unit, the preservation of historical dwelling units, agricultural structures, and other structures approved for site-specific development plans — and secure a conservation easement for the property outside of the activity envelope.

The special review process for these applications, which is done by the board of commissioners and not just county staff, will also result in the perpetual vesting of the approved floor area. If a developer does not develop right away, they will still always be allowed to develop property up to the floor area maximum from when their application was approved.

As the code stands now, dense deed-restricted housing is not permitted in the county outside of Urban Growth Boundaries, which are defined in master plans.  A number of land use planners worked with the county on revising the amendment language or commented on its effect, including representatives of the Perry Family Snowmass LLC, which owned the 650-acre Snowmass Falls Ranch until it agreed to sell to Open Space and Trails.

Basalt Municipal Elections to be held April 2^nd. Seats Available

Three council seats and the mayor’s seat are open in the upcoming Basalt municipal election, to be held on April 2.  The four-year terms for Councilors Elyse Hottel, David Knight, and Glenn Drummond will all end in April 2024. Mayor Bill Kane was also elected in April 2020. Both council and mayoral terms are each four years.

Kane will not be running for re-election, sticking to the one term he said he always indicated he would commit.

Knight has already picked up his nominating petition to run for mayor. He said he and Kane discussed Kane’s decision not to run for re-election, and Knight decided to seek the leadership position on the council. Hottel said she is currently undecided on whether or not to run for re-election, pending the outcome of variables in her life.

Drummond resigned from council on Nov. 30 after relocating out of the region. Council now has to appoint his replacement. The new council member will then have to run for re-election to retain the seat, as the appointment only lasts through the end of Drummond’s term.

According to Town Clerk Pam Schilling, only two petitions have been picked up as of Wednesday. One mayoral petition by Knight and a council petition by Hannah Berman, the senior sustainability and philanthropy manager for Aspen Skiing Company. Just because someone picked up a petition does not mean their name will appear on the ballot.

The Basalt Chamber of Commerce will hold a forum with the final slate of candidates on the evening of March 4 at the Basalt Regional Library Community Room, 14 Midland Ave.

How to get on the ballot:

Each seat is for a four-year term, with the potential for two terms in succession. One can go from two council terms straight to mayor and vice versa, if successful in the election. Interested individuals may pick up a nomination petition from the Town Clerk as of Tuesday.

To qualify for a seat on Town Council, candidates must be a qualified elector of the Town of Basalt, a citizen of the United States, at least 18 years of age, and must have resided in the Town of Basalt for at least 12 consecutive months immediately preceding the date of the election. Potential candidates must obtain signatures from at least Town of Basalt registered electors – that is, 25 Basalt voters have to sign the nominating petition.  The deadline to return nominating petitions with signatures to the Town Clerk is 5 p.m. on Monday, Jan. 22.

For questions more information, contact Town Clerk Pam Schilling at 970-279-4381 or email (best way) to pams@basalt.net.

State News: Property Tax Bill Would Drastically Raise Property Taxes for STRS

The Colorado Lodging and Resort Alliance released a new economic report on SB24-033, which threatens approximately $1.36 billion in visitor spending per year and 8,100 tourism-related jobs in Colorado, in addition to a net reduction in total state and local tax revenues. If passed, this bill would reclassify certain homes used as short-term rentals as lodging/commercial and would be taxed at a higher 27.9%, dramatically increasing the tax rate on these private residences by as much as 400%. Homeowner responses to the tax increase would result in an estimated 56% drop in total short-term rental nights booked per year and an estimated loss of $1.36 billion in annual tourist spending in Colorado. Given the predicted drop in overall travel and spending, the report concludes SB 33 would lead to a net loss of tax revenue for Colorado.

The Colorado Association of REALTORS® Legislative Policy Committee (LPC) took an opposing position on the bill and continues to work with stakeholders on the counter proposal that would exempt primary and secondary residences from being classified at the commercial tax rate.

State News: Condo Availability/Affordability Stories Needed

As the gavel drops on the 2024 Colorado General Assembly regular session, the Colorado Association of REALTORS® along with other interested parties will be working on construction litigation reform – one of the keys to unlocking more condos and other affordable housing stock being built across the state. Colorado is experiencing a housing crisis with a deficit of affordable, attainable, and available housing. This deficit is most acute in the availability of condominiums, arguably the most affordable owner-occupied housing option and a key path to first-time homeownership. Contributing to the condominium shortage are consequences from the Construction Defect Action Reform Act that the Colorado legislature adopted in 2001, which was intended, in part, as a buffer against frivolous lawsuits but was later amended to allow litigation over minor defects and code violations instead of actual damages.

As a result, builders’ liability insurance has spiked, and development of condominiums has ground to a near halt in Colorado. This sequence of events has culminated into a situation where homeowners are inadvertently faced with the negative consequences of costly and time-intensive construction liability lawsuits.

In an effort to collect real world stories about the difficulties of finding condos in Colorado, the Colorado Association of REALTORS® has created an online form for members (and your clients) to share your personal experiences. If you are (or have been) in the market recently for a condominium or are a past or current condo owner affected by construction liability litigation, please answer the questions on this online form.  https://bit.ly/3Rni5Ym .

National News: National Flood Insurance Program Expires March 8, 2024

From the Department of Redundancy Department, the National Flood Insurance Program faces what has become a yearly deadline for renewal in Washington. NFIP's authority to provide flood insurance is currently set to expire at midnight on March 8, 2024. NAR is making every effort to secure a long-term reauthorization of the program. Here are answers to frequently asked questions about what this means for upcoming closings and several proactive steps your clients can take in the meantime. Here are some FAQs on the issue:

What is the latest?

Congress is discussing a Continuing Resolution (CR) to extend funding for the federal government after March 8, 2024. An NFIP extension is attached to the CR. In the meantime, NAR is urging the longest extension possible while Congress continues working toward a long-term reauthorization and reform measure.

What is NAR doing?

• NAR is in regular communication with Congressional leaders and the White House about the NFIP.
• NAR is coordinating with a broad coalition of industry groups to support a long-term reauthorization.
• Flood insurance has been a talking point for meetings with members of Congress over the past year.
• Hundreds of members of Congress were contacted about NFIP's importance to every state in the U.S.
• NAR has raised the issue's profile with multiple calls for action, talking points, op-eds and state letters.

What happens if there is a lapse?

NFIP cannot sell new or renew flood insurance policies after 11:59 pm Eastern time on March 8, 2024.

Existing NFIP policies will remain in effect until their expiration date (i.e., the renewal date plus a 30-day grace period), and claims will continue to be paid as long as FEMA has the funds on hand.

Renewal policies are generally issued as long as the application is received prior to a lapse and the premium is received within the 30-day grace period. Other renewals must wait for reauthorization.

During a lapse, property buyers can assume existing/renewal policies. "Assignment of policies" (page 3(link is external)) allows insurers to substitute the buyer's name for the seller's without having to reissue the policy.

Private flood insurance backed by a source other than NFIP (e.g., Lloyd's of London) are not affected. Visit the Pennsylvania Insurance Department page(link is external) and the Florida Office of Insurance Regulation page(link is external) for options. Please remind your clients to read the fine print of any insurance policy.

The federal requirement to purchase flood insurance is suspended, which means it is up to lenders to decide whether to make loans in special flood hazard areas while NFIP insurance is not available.

For much more information on this issues, go to https://www.nar.realtor/flood-insurance/faq-national-flood-insurance-program-expires-march-8-2024

National News: NAR Voices Concern Over Proposal to Rescind Association Health Plan Regulations

The U.S. Department of Labor (DOL) recently proposed to rescind the 2018 Association Health Plans (AHP) final regulations, which would have allowed real estate professionals and other small businesses to participate in an AHP.

Small businesses, including real estate professionals, are limited to Affordable Care Act markets, while large businesses can access more affordable and comprehensive health coverage through "large group" markets. AHPs help level the playing field by enabling smaller employers and self-employed individuals to band together into associations and "group purchase" from the same large group markets. It is seemingly unfair that American real estate professionals and their families are excluded from these high-quality, low-cost health insurance options simply because they are self-employed and thus considered "small businesses of one."

"NAR is disappointed with the latest DOL proposal," said NAR President Tracy Kasper. "Our association will be filing detailed comments laying out our strong objections to this proposal. We want to set the record straight that AHPs offer high-quality, low-cost health coverage options to employees of small businesses and self-employed individuals, including real estate professionals."

The DOL's latest proposal follows a 2019 federal district court decision striking down the part of the 2018 AHP rule that would have allowed real estate professionals and other working owners to join AHPs. NAR supported the previous administration's decision to appeal the district court ruling, but unfortunately, the current administration has requested the Appeals Court to delay the ruling. This latest proposal effectively signals the current administration's intention to not proceed with that appeal.   

While disappointed in the latest DOL proposed decision, NAR will continue to fight and is concurrently spearheading a broad coalition to develop multi-industry comments against the proposal. NAR continues to push for legislation, including the House-passed CHOICE Arrangement Act (HR 3799), which would restore access to AHPs for small employers and self-employed individuals.

What is the latest?

Congress is discussing a Continuing Resolution (CR) to extend funding for the federal government after March 8, 2024. An NFIP extension is attached to the CR. In the meantime, NAR is urging the longest extension possible while Congress continues working toward a long-term reauthorization and reform measure.

What is NAR doing?

• NAR is in regular communication with Congressional leaders and the White House about the NFIP.
• NAR is coordinating with a broad coalition of industry groups to support a long-term reauthorization.
• Flood insurance has been a talking point for meetings with members of Congress over the past year.
• Hundreds of members of Congress were contacted about NFIP's importance to every state in the U.S.