Gov. Jared Polis’ support uncertain as ban on rent-setting algorithms nears finish line

Colorado lawmakers are poised to pass a bill banning the use of algorithms that state and federal bureaucrats say are used to artificially hike rents in the Denver metro area But the proposal has received a lukewarm reception from Gov Jared Polis who will soon decide whether to sign it into law Barring a perfunctory procedural vote in the House House Bill is on a glide path to Polis desk after clearing the Senate on Monday The bill s Senate sponsors had temporarily delayed the vote to continue discussions with Polis office Senate leadership reported Tuesday morning but then pushed the bill through as the session winds down If passed the law would become the first of its kind in the country supporters reported It would prohibit landlords from using algorithms to determine pricing and occupancy levels Critics have alleged the utility is used to keep rents higher than they normally would be But Polis office has signaled concerns about the bill throughout the session and supporters have worked with his staff for months to ease the measure s path The bill has been amended to ensure it doesn t impact websites like Zillow for instance Polis current position is unclear In a Monday comment to The Denver Post Polis spokeswoman Shelby Wieman wouldn t say if the governor intends to sign the bill once it reaches his desk Governor Polis is committed to reducing housing costs for Coloradans and has taken a number of strategies to do that and he likes math in general and will review this ordinance if it reaches his desk she explained in a declaration Wieman did not respond to a follow-up question about how Polis affinity for math relates to his position on the bill The bill s Democratic sponsors urged Polis to sign the bill A Biden White House statement distributed late last year identified that rent-setting program was prevalent in the Denver area and that the device cost tenants in properties using it more than in additional rent every year on average That was the second-highest burden on renters of the major metro areas surveyed by White House researchers The governor has mentioned time and time again he really likes math commented Sen Julie Gonzales a Denver Democrat and one of the bill s sponsors I do too and the fact that these algorithms have led to an additional a month in rent for renters in the Denver metro area is bad math And we have the opportunity to do something about it and he has the opportunity to do something about it by signing House Bill into law Still Gonzales and Sen Nick Hinrichsen a Pueblo Democrat and another sponsor explained they didn t know if Polis would do so Both explained they hadn t had direct conversations with the governor or his staff about any specific objections Playing to Polis endorsement of free markets and saving people money the two lawmakers accused landlords using algorithms of interfering with the housing industry at the cost of renters Related Articles Colorado lawmakers drop effort to override Gov Polis veto of social media bill amid intense lobbying Colorado Gov Jared Polis signs budget with more than billion in cuts doing the least amount of harm Veto overrides an Uber pressure campaign and a race to get bills to the floor in the Colorado legislature this week Colorado lawmakers may table attempted TABOR reckoning as labor union hospital fights linger in final days A veto override in the works junk fees bill signed into law and more from the Colorado legislature HB- is lawmakers second attempt to ban the algorithms Last year s proposal died in the last days of the session when a group of Senate Democrats and the chamber s Republicans voted to neuter the bill They did so with the help of a lobbyist hired by RealPage a system developer that owns a common rent-setting algorithm This year not a single Senate Democrat voted against the bill Senate President James Coleman has reported lawmakers were more familiar with the complication this year With good reason Federal and local functionaries have accused RealPage of using the algorithms to facilitate price fixing in the rental sector and last summer Colorado Attorney General Phil Weiser joined a U S Department of Justice antitrust lawsuit against the company Prosecutors have accused the developer of helping facilitate a cartel-like system among large apartment owners and property managers RealPage has denied the statements and has decried an inaccurate and distorted narrative about its system Apartment industry agents in Colorado have defended the use of algorithms as a means to manage vacancy rates and lower prices Stay up-to-date with Colorado Politics by signing up for our weekly newsletter The Spot