DENVER — Governor Jared Polis is shutting the door on House Bill 25-1004, which would have banned landlords from using certain artificial intelligence (AI) algorithms to set rent prices.
In his veto letter, the governor wrote in part, “I have grave concerns about prohibiting companies using algorithmic pricing software derived from multiple data sources from doing business in Colorado.”
- Read the full veto letter below
The Colorado Apartment Association previously told Denver7 the software is a critical tool for measuring the housing market, but housing advocates say the software enables price-fixing.
“Tools like this are extremely destructive,” said Zach Neumann, co-founder of the Community Economic Defense Project, which provides eviction legal defense services and emergency financial assistance.
“Putting Colorado renters on the line so that out-of-state landlords and big tech can make more money is just so deeply harmful to our community,” he added. “When companies like RealPage are allowed to fix rents and collude, it drives up prices, which drives up homelessness.”
Texas-based RealPage is the target of a federal lawsuit, which Colorado joined last year, and is accused of using this technology to help landlords collude and hike rental prices. RealPage denies any wrongdoing.
In a statement to Denver7, RealPage praised Polis' veto, thanking the governor for his "courageous leadership in doing the right thing."
“RealPage applauds Governor Polis for his courageous leadership in doing the right thing and vetoing HB25-1004. This is the right outcome for all of us who desire a healthy housing ecosystem that benefits Colorado renters and housing providers alike. We want to thank Governor Polis and the broad array of supporters of housing affordability who instead advocated for the responsible use of technology and tools like RealPage's algorithmic pricing software to find fair pricing, ultimately benefiting all Coloradans.”
Metropolitan State University Denver professor Sam Jay studies AI. He said rent-setting software isn’t that different than predictive tools other industries, like insurance, have used for decades.
“There's an old technology at work,” he told Denver7 Friday. “I think because of the political football that artificial intelligence has become in the contemporary moment, it's becoming a story, and we're kind of focusing on it. But to me, so many of these systems are already at work.”
That being said, Jay said the software can become a problem if it becomes too ubiquitous with not enough oversight.
“I do understand concerns about folks seeing that artificial intelligence is being used to make decisions about people's lives, and that's a huge, huge deal, particularly when you don't really understand how those decisions are made,” he said.
Politics
Colorado's artificial intelligence law faces uncertain future
Jay expects Colorado’s pending AI regulation law to lead to more transparency and force organizations to be more thoughtful about how they use it. That law goes into effect in February 2026, but many in the tech industry are asking for more time to adjust to the new rules.
In his veto letter, Polis expressed that he may be open to supporting a similar bill in the future, but one that offers clearer outlines as to where the technology becomes harmful for renters.
“While I prefer to wait for current state and federal investigations to run their course — including those Colorado is a party to — I am potentially open to supporting a bill next year that addresses the goals of HB 25-1004 and makes a distinction between collusive and non-collusive uses of nonpublic competitor data," the governor wrote.
Neumann disagrees and said this version of the bill is plenty clear. He hopes the fight isn’t over yet.
“I would love to see this bill come back next year in the legislature,” he said. “I think we should see the same version or an even stronger one.”
