Metro District Disclosure Law Goes into Effect on January 1
Beginning on January 1, homebuilders selling new homes within a metro district will be required to provide additional disclosure to the buyers. This disclosure is required as part of Senate Bill 21-262, which was supported by the Colorado Association of Home Builders and our real estate and special district partners. SB262 was a proactive measure to address some of the disclosure concerns being expressed at the state capitol.
Specifically, the new law requires, on and after January 1, 2022, that each owner of real property that sells a newly constructed residence within a metro district, concurrently with or prior to the execution of a contract to sell the property, to provide to the purchaser information about the debt obligations of the district and an estimate of property taxes applicable to the property at the time of the sale.
The disclosure items include:
- Most recent Notice to Electors filed by the metro district
- Service Plan or Statement of Purpose for the metro district
- Statement on the maximum amount of debt that can be issued and mill levy assessed by the district
- Estimate of property taxes levied on that new home for the year it is sold
- Information on the mill levy rate, residential assessment ratio and how to calculate the estimated property taxes on the property
The new law includes several other disclosure items and mandatory language that must be included in the disclosure. For more details on disclosure requirements, please review the new law at https://leg.colorado.gov/sites/default/files/2021a_262_signed.pdf.
The CAHB Government Affairs Committee and lobbying team are preparing for the 2022 legislative session and will be closely watching for legislation impacting metro districts. The CAHB board will also be reviewing and approving its 2022 Legislative Priorities document and will have that available in early 2022 for members to review.
The GAC will begin meeting twice per week beginning January 14 to review and take positions on the numerous bills impacting our industry. Like previous years, the 2022 legislative session will be full of issues impacting homebuilding, real estate and Colorado’s business climate. Please look for our Capitol Close Up emails through the session for bill positions, action alerts and other important updates.
Finally, on behalf of the GAC members and the CAHB staff and lobbying team, please have a happy and safe holiday season. Enjoy time with your family. See you in 2022!