colorado rental application fairness act

3 min read 02-02-2025

The Colorado Rental Application Fairness Act (CRAFA), enacted in 2021, significantly altered the landscape of rental applications in the state. This comprehensive guide will delve into the key provisions of the CRAFA, clarifying its impact on both landlords and tenants. Understanding these changes is crucial for navigating the rental process in Colorado fairly and legally.

Key Provisions of the Colorado Rental Application Fairness Act

CRAFA aims to promote fairness and equity in the rental application process by limiting the information landlords can request and consider. Here are some of its most significant provisions:

1. Restricted Information:

The Act explicitly prohibits landlords from requesting or considering certain information during the application process, including:

Credit history prior to the past three years: Landlords can only review credit reports from the past three years. This change significantly impacts applicants with past financial difficulties who have since improved their creditworthiness.
Criminal history: While not entirely banned, the CRAFA mandates a nuanced approach. Landlords can only consider criminal history relevant to the tenancy. This means a landlord can't simply reject an applicant based on a past conviction; they must demonstrate a direct connection between the offense and the potential risk to the property or other tenants. Furthermore, landlords must conduct an individualized assessment, considering factors like the nature of the offense, the time elapsed since the conviction, and any evidence of rehabilitation.
Eviction history prior to the past three years: Similar to credit history, only evictions from the past three years can be considered. This allows applicants who have addressed past housing issues a fairer chance.

2. Applicant Fees & Restrictions:

CRAFA also addresses application fees, setting limits and imposing restrictions:

Fee Limits: Landlords are restricted in the amount they can charge as an application fee. The specific amount allowed may vary based on local ordinances, but the CRAFA itself sets an upper limit (check your local ordinances for the exact figure).
Application Fee Refunds: The Act mandates that landlords must refund application fees under specific circumstances, such as when an application is rejected due to reasons outside the applicant's control or if the landlord chooses to rent the unit to another applicant.

3. Required Disclosures:

CRAFA necessitates specific disclosures to applicants, promoting transparency:

Criteria for Applicant Selection: Landlords must disclose the specific criteria they use to evaluate applicants, ensuring transparency and avoiding arbitrary decisions.
Reasons for Rejection (Optional): While not legally obligated to provide the specific reasons for rejection, landlords are strongly encouraged to do so, furthering fairness and providing valuable feedback to rejected applicants.

Implications for Landlords and Tenants

Landlords: Compliance with the CRAFA is mandatory. Failing to adhere to its provisions can lead to significant legal consequences, including fines and lawsuits. Landlords should update their application processes to ensure compliance, potentially requiring new screening services and updated internal procedures. They need to thoroughly understand the nuances of "relevant" criminal history and its individualized assessment requirement.

Tenants: The CRAFA empowers tenants by providing them with greater protection against unfair discrimination during the rental application process. They are entitled to a fair evaluation based on criteria disclosed by the landlord. If a landlord violates the CRAFA, tenants can pursue legal action to protect their rights.

Navigating the CRAFA: Best Practices

Both landlords and tenants benefit from a clear understanding and adherence to the CRAFA. Here are some best practices:

Landlords: Invest in updated screening services that comply with CRAFA; consult with legal counsel to ensure application processes and screening criteria are legally sound; maintain detailed records of applicant screenings and decisions.
Tenants: Carefully review rental applications to understand the criteria; keep copies of all application materials and communication with the landlord; know your rights under CRAFA and don't hesitate to seek legal advice if necessary.

The Colorado Rental Application Fairness Act represents a significant step toward a more equitable rental market. By understanding its provisions and adhering to best practices, both landlords and tenants can contribute to a fairer and more transparent rental process in Colorado. Always consult with legal professionals for advice tailored to your specific situation.