SB 54: Security Deposits & Post-Closing Occupancy Agreements - Colorado

Rerevised → Final Act · 2 edits · Apr 6, 2026

MINOR

This bill establishes an exception to Colorado's security deposit cap for landlords who purchase a home from a tenant and allow the tenant to stay in the property after closing. Previously, the law did not explicitly address this scenario, but this act clarifies that the two-month rent limit does not apply in these specific post-closing occupancy situations. The change ensures legal clarity for landlords and tenants in this unique transaction type without altering the general security deposit rules for other rental agreements.

Scope change

The bill's scope is now explicitly limited to cases where a landlord has purchased the residence from the tenant and they have executed a post-closing occupancy agreement. This creates a specific exemption for this transaction type rather than applying the security deposit cap broadly.

ELIGIBILITY

Added a specific exemption allowing landlords to require security deposits exceeding the standard two-month limit when the landlord has purchased the home from the tenant and a post-closing occupancy agreement is in place.

TIMELINE

Clarified the effective date of the exception to begin on January 1, 2027, while maintaining the existing general security deposit cap for other situations starting August 7, 2023.

Revised → Rerevised · 1 edit · Apr 2, 2026

MINOR

The bill was re-revised to incorporate all amendments adopted during the second house session. The primary change is a formatting update to the House sponsorship list, adding the middle name 'Joseph' to Representative Richardson. No substantive policy, scope, funding, or eligibility changes were made.

TECHNICAL

Added the middle name 'Joseph' to Representative Richardson in the House sponsorship section.

Reengrossed → Revised · 3 edits · Mar 31, 2026

MINOR

The bill text was updated from the 'Reengrossed' version to the 'Revised' version, incorporating amendments adopted during the second reading in the Second House. The primary substantive change is the addition of a new House committee, 'Transportation, Housing & Local Government,' to the list of committees reviewing the bill, while the Senate committee remains unchanged. Several blank lines and a '2nd Reading Unamended' date stamp were also inserted into the header section.

Scope change

The bill's scope of applicability remains unchanged; the revision reflects procedural updates regarding committee assignments and legislative history rather than altering the bill's substantive legal provisions.

TECHNICAL

Added a new House committee ('Transportation, Housing & Local Government') to the list of committees responsible for reviewing the bill.

Inserted a header indicating the bill is 'Revised' and includes amendments adopted on second reading in the Second House.

Added a date stamp ('March 31, 2026') and a '2nd Reading Unamended' status note to the document header.

Engrossed → Reengrossed · 2 edits · Feb 19, 2026

MINOR

The bill was reengrossed to include amendments adopted during the House of Introduction, updating the official title and version status. A new bill summary was added to reflect the bill's state as it passed the Senate, noting that the summary applies to the original introduction and does not yet include future House amendments. No substantive policy changes regarding scope, funding, or eligibility were identified in this specific markup.

Scope change

None; the bill's substantive scope remains unchanged.

TECHNICAL

Added a new '3rd Reading Unamended' date and updated the bill summary to clarify it reflects the Senate version only.

Updated Senate sponsorship list to include an additional sponsor, Kipp.

Introduced → Engrossed · 1 edit · Feb 18, 2026

MINOR

The bill was reclassified from 'Introduced' to 'Engrossed,' indicating it has passed the Senate and includes amendments. The most significant substantive change is the effective date for a new security deposit rule, which was moved from November 1, 2026, to January 1, 2027. This delay allows landlords and tenants more time to prepare for the new restrictions on security deposit amounts.

Scope change

The bill's scope regarding the new security deposit rule is now delayed by two months, shifting the implementation timeline for the restriction on deposit amounts.

TIMELINE

The effective date for the new security deposit restrictions was changed from November 1, 2026, to January 1, 2027.

Security Deposits & Post-Closing Occupancy Agreements

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