City of Boulder 2B – Tax Landlords to Pay for Tenant Representation in Eviction Hearings

Although the proponents of “No Eviction Without Representation” began collecting signatures before the pandemic, the pandemic’s economic downturn has certainly heightened awareness of the issue. Early on in the pandemic, an eviction moratorium and some rental assistance were set in place, and recently Gov Polis established an Eviction Prevention Task Force which will issue recommendations probably in early October.

In normal times a tenant’s failure to pay rent can land the tenant in county court. The landlord, who has to serve the tenant with official documents, often has legal representation, while the tenant who is struggling to pay rent probably cannot afford an attorney. Legal representation for a tenant may not prevent an eviction, but it can often buy time for the tenant to scrounge up money for late rent or to find another living situation and avoid a black mark on the tenant’s record.

Under 2B landlords would be taxed $75 for each rental unit. Originally the revenue was called a fee and dedicated only to legal representation, including a coordinator to administer the program and an oversight committee. City council wanted some money to go to rental assistance also and the proponents agreed. Negotiations turned the fee into a tax so it would be “legally defensible” in our TABOR world.

Recommendation: Yes/For

We all know that Boulder is an expensive rental market. The proponents modeled 2B after San Francisco’s 2018 Prop F, which passed 56% to 44%.

Boulder does not have rent control like San Francisco so some people question the need for this measure and worry that the city will be on the hook for any tenant attorney costs over the $1.9M collected annually. We don’t know what the actual costs will be but the tenants’ committee and coordinator will be monitoring that information.

Opponents argue that the $75 tax per year will get passed on to renters, but $6.25/month seems like a rounding error more than a rent increase.

Information will help even out the current power imbalance. An attorney can explain the process to the tenant but in the end the tenant and landlord still have to settle their contract dispute.

The proponents were unhappy that Boulder Housing Partners (BHP), which manages 1,400 affordable housing units for the city, would be exempt from the $75 tax. BHP was described as “one of the biggest evictors in the city.”

Website for the Yes side – No Eviction Without Representation
https://www.newrboulder.com/

Website for the No side
No known website – Info on an opponents’ website appreciated.


Approved Ballot Language (in the city of Boulder format)

City of Boulder Ballot Issue 2B
No Eviction Without Representation

Shall the City of Boulder’s taxes be increased annually by one million, nine hundred thousand ($1,900,000.00) (first full fiscal year increase) commencing on Jan. 1, 2021, and by whatever additional amounts are raised annually thereafter from an excise tax to be paid by landlords on dwelling units with rental licenses in the amount of $75 per year, with the tax rate increasing every year thereafter at a rate that does not exceed the Colorado consumer price index on each rental license for a dwelling unit that is issued by the city;
and in connection therewith, shall all of the revenues collected be used to fund:
• the administrative cost of the tax, and thereafter to
• establish, run and fully fund a program to provide legal representation to tenants who face the loss of housing in eviction and administrative proceedings;
• provide a tenant’s legal services and assistance coordinator to administer the program;
• create a tenants’ committee comprised of five members paid a $1,000 per year stipend; and
• provide rental assistance for persons that are vulnerable to eviction; and
shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter-approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado Constitution or any other law?

YES/FOR _____
NO/AGAINST _____

Ordinance No. 8412 to put issue 2B to the voters
https://www-static.bouldercolorado.gov/docs/o-8412_3rd_rdg-1-202009101508.pdf?_ga=2.232524247.954903512.1600536510-1345314453.1596765451