Local News

Pitkin to Consider Smaller House Size Cap for New Builds

Pitkin County commissioners said in late September they will aim to lower a house-size cap to 9,250 square feet by the end of 2023 as they work on broader growth management and energy efficiency rules.

However, they indicated that a moratorium on new home applications would not be imposed. Also, applications that are in the review pipeline and houses approved but unbuilt would be exempt from the 9,250-square-foot interim cap. There currently is a 15,000-square-foot limit in most parts of unincorporated Pitkin County with pockets of more restrictive caps.

The interim house-size cap is the first step in what is expected to be an 18- to 24-month process in which the county updates part of its growth-management rules and regulations. The commissioners appointed a Community Growth Advisory Committee last year to study how it could achieve goals of reducing greenhouse gas emissions through its land-use code. After 10 months, the committee forwarded recommendations to the commissioners this summer. Now the county is working on enacting the recommendations.

The growth committee’s final report recommended an 8,750-square-foot cap in most parts of unincorporated Pitkin County with a cap of 9,250 square feet within the urban growth boundary — the area of the county closest to the municipalities of Aspen and Snowmass Village.

The committee urged commissioners to take some immediate actions such as an interim house-size cap. Committee co-chair Michael Miracle told commissioners that adopting the 9,250-square-foot cap rather than the more restrictive one might be beneficial to the effort of adopting more sweeping growth-management changes.

Commissioner Greg Poschman said he is excited to see the county get rolling on enacting the recommendations by the growth committee and he hopes he is in office to see the work completed. Poschman and Jacober are in seats that are up for election in November 2024. Both have informally indicated they intend to run again. Commissioner Steve Child will be term-limited and won’t be able to run when his current term expires in 2024.

The county government also is eyeing other immediate steps it can take to address its energy goals. It will consider caps on exterior energy use through snowmelt systems, spas, pools and outdoor heated areas. A “BTU cap” could be pursued through an update to the county energy code.

State News

CAR Opposes State-wide Ballot Proposal HH

While the Colorado Association of REALTORS®(CAR) recognizes the need and is ready to fully support thoughtful, well-vetted property tax relief for all Coloradans, CAR is opposed to Proposition HH. 

“In essence, we lifted the hood on the ballot to help us understand the short- and long-term effects of Prop HH on our state’s residents,” said REALTOR® Will Flowers. “What seems like a simple ballot question on the surface, particularly in its initial description, becomes drastically more complicated and raises countless concerns as you dig into the 12-pages of detail in the Colorado Blue Book that should be considered. We analyzed potential outcomes to help us come to a decision in alignment with our mission and vision to create paths to homeownership.” 

There are more than 800,000 renting households, or approximately 2 million Coloradans (according to U.S. Census data), that won’t receive any property tax relief, but will likely lose their TABOR refunds. A recent Colorado Health Foundation poll found that 85% of renters aspire to own a home. Unfortunately, 47% of those who aspire to own a home believe it’s unlikely they’ll be able to purchase a home in Colorado. Less money in renters’ pockets from TABOR refunds is less money to put towards homeownership or to make ends’ meet. 

“Coloradans expect and deserve better than Proposition HH. This measure forces homeowners and seniors to jump through more hoops to access Proposition HH tax benefits and creates confusion with new classes of residential property. Property tax relief should be clean and straightforward, not with strings attached,” said CAR CEO Tyrone Adams. “As a result, the measure makes it harder for people to access their tax benefits and navigate the housing market, opening the door to unintended consequences.” 

As an example, Coloradans who occupy their residential property would be required to complete an application to be filed with their county assessor to be considered for a market value reduction of at least $40,000 beginning in 2025. Some of the other key issues influencing the decision to oppose Prop HH include, but are not limited to: 

• While Prop HH would provide minimal property tax relief, it still results in an increase in property taxes. Simply a smaller increase than current law. 
• These changes to local property taxes and TABOR would last at least 10 years however, Proposition HH allows the state legislature to continue changes in perpetuity without further voter approval. 
• Proposition HH would allow the state to retain money that would otherwise be refunded to taxpayers through at least 2032. Property tax relief should not come at the expense of TABOR refunds. 
• Seniors should be able to claim their new homestead exemption right away instead of having to live somewhere for 10 years before becoming eligible. Proposition HH is unnecessary to make this change, the state legislature can simply pass legislation to this effect without tying it to a complicated process. 
• Prop HH creates confusion with new classes of residential property and legislation is being considered to increase the assessment rate for Short Term Rentals to a much higher rate. 

“At the end of the day, we are a professional real estate trade association representing nearly 29,000 REALTORS® and tens of thousands of Coloradans making their buying and selling decisions. Therefore, our lens in reviewing Prop HH is its impact on real estate,” said CAR President Natalie Davis. “The legislature has the power to enact changes proposed in Proposition HH without voter approval, including the portability of the senior homestead exemption, which it could enact in the 2024 session. In addition, the legislature should call a special session to address property tax relief, calling upon our elected officials to come together to fix this issue, but not through a complicated ballot measure with multiple layers.” 

CAR’s comprehensive process included hearing directly from campaigns supporting, opposing, and educating on Prop HH, reviewing the Blue Book content and analysis from the non-partisan legislative staff, as well as extensive discussion and debate among members. After this extensive process, the Colorado Association of REALTORS® concluded that Proposition HH is simply not the answer.

National News

NAR Supports New Legislation Protecting Independent Contractor Status

On September 12, 2023, the “Direct Seller and Real Estate Agent Harmonization Act,” (H.R. 5419(link is external)) was introduced by Reps. Walberg (R-MI), Cuellar (D-TX), Cardenas (D-CA), and Moore (R-UT), on behalf of the millions of direct sellers and real estate agents around the country who are classified as independent contractors.

Qualified real estate agents and direct sellers have been defined as independent contractors under the Internal Revenue Code (“IRC”) for federal tax purposes since 1982. This language demonstrates the federal government’s long-standing recognition of the unique nature of the direct selling and real estate industries. Of the 1.5 million members of NAR practicing across the country, approximately 87% are classified as independent contractors. This important legislation would harmonize the Fair Labor Standards Act (“FLSA”) with the IRC so that direct sellers and qualified real estate agents are consistently defined as independent contractors across both statutes.

While the ability to work as an independent contractor is recognized and protected under the IRC and many state laws, class action and wage and hour lawsuits, new state legislation, and new federal rules expanding the definition of employee, continue to threaten a worker’s ability to be classified as an independent contractor. The United States Department of Labor is currently finalizing a rule on independent contractor status under the FLSA, which may result in unnecessary classification confusion. Aligning the FLSA with the IRC would ensure professionals in the real estate and direct selling industries can continue to operate their businesses and support economic growth with legal certainty.

NAR, alongside members of the Direct Selling Association (DSA), advocated for this legislation that supports the ability to work as an independent contractor in these industries, empowering entrepreneurship for more Americans.