By Corey T. Zurbuch, Brownstein Hyatt Farber and Schreck, LLP
On May 22, 2024, Governor Jared Polis signed House Bill 24-1334 into law, which became effective on August 7, 2024. The bill, sponsored by a broad coalition of representatives and senators reflecting bipartisan support, was introduced to increase the availability of broadband internet service to multiunit buildings (condominiums and apartments) and mobile home parks. It is aimed at enhancing access to high-speed internet services by streamlining the process for broadband providers to install necessary infrastructure in these types of residential properties. While the law focuses on increasing the rights of tenants in multiunit apartment buildings, it also applies to the tenants of condominium unit owners and affords them the same rights to access broadband internet as tenants in an apartment building.
Highlights of the New Law Codified as C.R.S. 29-27-501 through 503 Include:
- Provider Access: Broadband providers are permitted to install infrastructure in multiunit buildings if they receive a valid request for service from a tenant. Providers must give property owners 60 days' notice before accessing the property. (C.R.S. §29-27-502(1)(a)(I)). This right of access to multiunit buildings extends to requests for broadband service made by a tenant in a condominium unit (as defined in C.R.S. §38-33-103). (C.R.S. §29-27-502(2)(a)(II)) Accordingly, subject to several limitations described below, if a tenant requests the installation of broadband internet access equipment, their landlord cannot unilaterally prevent the broadband provider from installing the equipment;
- Property Owner Rights: Property owners retain significant control over the installation process, including the ability to impose reasonable conditions to protect the property's safety, security, and aesthetics. (C.R.S. §29-27-502(4)) Owners can also refuse access under certain conditions, such as when the installation would cause significant environmental harm, have a significantly adverse effect on historical or architecturally significant elements of the property, or interfere with existing services. (C.R.S. §29-27-502(5));
- Compensation: The bill requires that property owners receive just and reasonable compensation for the use of their property. Factors considered in determining compensation include the physical occupation of the property, any long-term damage, and the impact on the property's value. (C.R.S. §29-27-503);
- Tenant Consent: Providers must obtain consent from tenants before entering their premises to install or repair broadband infrastructure. (C.R.S. §29-27-502(1)(b)(IV)); and
- Mediation and Dispute Resolution: The bill encourages resolving disputes between property owners and providers through mediation before pursuing legal action. (C.R.S. §29-27-502(5)(i) and 502(7)).
The bill was supported by various broadband providers, technology advocates, and some housing rights groups. Supporters argued that the bill is essential for expanding broadband access in underserved areas, particularly in multiunit residential buildings where internet connectivity is often lacking or inadequate. Opposition came from some property owner associations and environmental groups concerned with the potential loss of property rights. Property owners expressed concerns about potential disruptions and damage to their properties, while environmental groups raised issues about the potential for environmental harm during the installation process.
This legislation was part of a broader effort to bridge the digital divide and ensure that residents in multiunit buildings have reliable access to broadband internet. House Bill 24-1334 was accompanied by three other broadband-related bills. House Bill 24-1336 expanded broadband funding uses to allow greater focus on middle-mile infrastructure, fiber networks, and high-cost areas in Colorado. House Bill 24-1234 continued the High-Cost Support Mechanism (HCSM) operated by the Colorado Public Utilities Commission (PUC), which provides financial aid for affordable and reliable telecommunication and broadband services in rural communities. Finally, House Bill 24-1036 continues the Rural Broadband Equipment Sales and Use Tax Refund, under which broadband providers receive a refund on state sales and use tax for property installed in a target area to provide broadband service.
Despite this flurry of legislative activity, there were no changes to the Colorado Common Interest Ownership Act (“CCIOA”) specifically addressing whether an owners’ association can prohibit the installation of broadband internet. For now, at least, CCIOA remains silent on this issue.
Corey T. Zurbuch practices real estate law, including community association related matters, with Brownstein Hyatt Farber and Schreck, LLP in Denver, Colorado.
