SB26-054 • 2026

Security Deposits & Post-Closing Occupancy Agreements

Current law prohibits a landlord from requiring a tenant to submit a security deposit in an amount that exceeds 2 monthly rent payments. The bill creates an exception to this prohibition for cases in

Housing

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Sen. M. Catlin, Sen. M. Snyder, Rep. C. Richardson, Rep. N. Ricks, Sen. C. Kipp, Rep. J. Joseph
Last action: 2026-04-08
Official status: Sent to the Governor
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Security Deposit Exception for Post-Closing Occupancy Agreements

This bill allows landlords to require security deposits that exceed two months' rent if the landlord and tenant have a post-closing occupancy agreement, starting January 1, 2027.

What This Bill Does

Changes current law to allow higher security deposits in certain situations.
Creates an exception for cases where a buyer and seller of residential property have a post-closing occupancy agreement.
Requires this exception to take effect on January 1, 2027.

Who It Names or Affects

Landlords who enter into post-closing occupancy agreements with tenants.
Tenants involved in post-closing occupancy agreements with landlords.

Terms To Know

Post-Closing Occupancy Agreement: An agreement between a buyer and seller of residential property where the seller continues to live in the property after the sale has been completed.

Limits and Unknowns

The bill does not specify how much higher than two months' rent the security deposit can be.
It is unclear if there will be a referendum on this bill before it becomes law.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

SEN Local Government & Housing

Passed [*]

Plain English: The amendment changes the effective date of a part of the bill from November 1, 2026 to January 1, 2027.

Changes the effective date for a provision in the bill from November 1, 2026 to January 1, 2027.

Bill History

2026-04-08 Governor
Sent to the Governor
2026-04-07 House
Signed by the Speaker of the House
2026-04-07 Senate
Signed by the President of the Senate
2026-04-02 House
House Third Reading Passed - No Amendments
2026-04-01 House
House Third Reading Laid Over Daily - No Amendments
2026-03-31 House
House Second Reading Special Order - Passed - No Amendments
2026-03-27 House
House Second Reading Laid Over Daily - No Amendments
2026-03-24 House
House Committee on Transportation, Housing & Local Government Refer Unamended to House Committee of the Whole
2026-02-19 House
Introduced In House - Assigned to Transportation, Housing & Local Government
2026-02-19 Senate
Senate Third Reading Passed - No Amendments
2026-02-18 Senate
Senate Second Reading Passed with Amendments - Committee
2026-02-12 Senate
Senate Committee on Local Government & Housing Refer Amended - Consent Calendar to Senate Committee of the Whole
2026-01-27 Senate
Introduced In Senate - Assigned to Local Government & Housing

Official Summary Text

Current law prohibits a landlord from requiring a tenant to submit a security deposit in an amount that exceeds 2 monthly rent payments. The bill creates an exception to this prohibition for cases in which a buyer and a seller of residential real property have executed a post-closing occupancy agreement in connection with the sale. The exception takes effect
January 1, 2027.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text

SENATE BILL 26-054
BY SENATOR(S) Catlin and Snyder, Kipp;
also REPRESENTATIVE(S) Ricks and Richardson, Joseph.
CONCERNING AN EXCEPTION TO THE STATUTORY LIMIT ON THE AMOUNT
THAT A LANDLORD MAY REQUIRE A TENANT TO PROVIDE AS A
SECURITY DEPOSIT IN CASES WHERE THE LANDLORD AND TENANT
HAVE EXECUTED A POST-CLOSING OCCUPANCY AGREEMENT.

Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, amend 38-12-102.5 as
follows:
38-12-102.5. Security deposits - maximum amount - exception
for post-closing occupancy agreements - rules.
(1) On and after August 7, 2023 E XCEPT AS DESCRIBED IN
SUBSECTION (2) OF THIS SECTION , a landlord shall not require a tenant to
submit a security deposit in an am ount that ex ceeds the amount of two
monthly rent payments under the rental agreement.
(2) O N AND AFTER JANUARY 1, 2027, SUBSECTION (1) OF THIS
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
SECTION DOES NOT APPLY IF THE LANDLORD AND TENANT HAVE EXECUTED
A POST -CLOSING OCCUPANCY AGREEMENT PURSUANT TO A PURCHASE
CONTRACT WHEREBY THE LANDLORD PURCHASED THE RESIDENCE FROM THE
TENANT.
SECTION 2. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
PAGE 2-SENATE BILL 26-054
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
____________________________ ____________________________
James Rashad Coleman, Sr. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 3-SENATE BILL 26-054