Caryn Becker

The Lofgren & Johnson families were present last week as Governor Bill Ritter signed HB 1091 into law. This bill requires that carbon monoxide alarms be installed in residential properties. I am reviewing this bill based upon my interpretation as recorded with the State of Colorado to assist my fellow real estate investors & clients. I am providing a summary but will send you the pdf version at your request. This bill not only affects rental property but all residential properties offered for sale or transfer on or after July 1, 2009.

As outlined, (1) (a) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE

SELLER OF EACH EXISTING SINGLE-FAMILY DWELLING OFFERED FOR SALE OR

TRANSFER ON OR AFTER JULY 1, 2009, THAT HAS A FUEL-FIRED HEATER OR

APPLIANCE, A FIREPLACE, OR AN ATTACHED GARAGE SHALL ASSURE THAT AN

OPERATIONAL CARBON MONOXIDE ALARM IS INSTALLED WITHIN FIFTEEN

FEET OF THE ENTRANCE TO EACH ROOM LAWFULLY USED FOR SLEEPING

PURPOSES OR IN A LOCATION AS SPECIFIED IN ANY BUILDING CODE ADOPTED

BY THE STATE OR ANY LOCAL GOVERNMENT ENTITY. This affects multi family dwellings as well.

With regards to rental property, any existing single family or multi family dwelling that has a change in tenant occupancy on or after July 1, 2009 shall be subject to the above requirements. Prior to any new tenancy, the owner must install or replace a carbon monoxide alarm, ensure that any batteries necessary are provided to tenant when tenant takes possession. As with smoke detectors, it is the owners responsibility to replace at tenant request via written correspondence. It is the tenant's responsibility to "keep, test & maintain all carbon monoxide alarms in good repair."

The device may be wired directly to the dwellings electrical system, directly plugged in to an outlet without a switch, or a battery operated device may be attached following the National Fire Protection Association's standard 720.

The bill wraps up with the following: 38-45-106. Limitation of liability. (1) NO PERSON SHALL HAVE A

CLAIM FOR RELIEF AGAINST A PROPERTY OWNER, AN AUTHORIZED AGENT OF

A PROPERTY OWNER, A PERSON IN POSSESSION OF REAL PROPERTY, OR AN

INSTALLER FOR ANY DAMAGES RESULTING FROM THE OPERATION,

MAINTENANCE, OR EFFECTIVENESS OF A CARBON MONOXIDE ALARM IF THE

PROPERTY OWNER, AUTHORIZED AGENT, PERSON IN POSSESSION OF REAL

PROPERTY, OR INSTALLER INSTALLS A CARBON MONOXIDE ALARM IN

ACCORDANCE WITH THE MANUFACTURER'S PUBLISHED INSTRUCTIONS AND THE PROVISIONS OF THIS ARTICLE.

Bottom line is know your stuff & be proactive. In order ot comply, I am planning to install alarms in my rentals in June rather than wait for vacancy. I am also updating my lease to educate tenants about their role in maintaining the alarm. If you have any comments or suggestions, please send them my way.

The new and improved tax credit is valid for properties purchased after January 1, 2009 and closed before December 1, 2009. And, buyers can file an amended 2008 return using form 1040X to take advantage of the $8,000 this year! Click on this informative website link for complete information http://www.federalhousingtaxcredit.com/2009/home2.html. It is an excellent resource and very easy to navigate and understand.

In an effort to help homeowners prevent foreclosure, Making Home Affordable, will offer assistance to as many as 9 million homeowners. The loan must have been originated prior to January 1, 2009 and the unpaid principle balance cannot exceed $729,750. The plan will allow homeowners whose homes have lost value to refinance to receive a lower rate or to get rid of the dreaded ARM. Borrowers can't owe more than 105% of their homes current value. The Colorado Springs Gazette Telegraph reports today that 25,814 or 20.3% of all homeowners have negative equity. Since our median home price declined 16.6% in 2008, one wonders how many will actually qualify for the modification. Lenders must agree to reduce payments to 38% of the borrower's monthly income. We can only hope that this plan will be readily available and not as impossible as a short sale. The jury is still out and only time will tell if this program will help homeowners as well as stabilizing the market.

You can review the summary of this by clicking on the following link. http://www.treas.gov/press/releases/reports/guidelines_summary.pdf

I have been diligent in educating the public about the First-Time Homebuyers Tax Credit. I don't know about you, but I like to buy things on sale. And right now, real estate is ON SALE! New home owners can find deals at incredible interest rates. But there is a bit of a problem? The IRS has not yet completed Form 5405 which needs to be filed along with their 2008 income taxes. This tax credit was signed into effect July 30, 2008. Be sure to spread the word because the media isn't.