Denver City Council on Monday night unanimously passed a proclamation calling on Colorado Gov. Jared Polis and national leaders to suspend rent and mortgage payments for residents blindsided by financial hardship from the coronavirus fallout.

The council’s proclamation is not a binding law, but rather a symbolic gesture, intended to convey that renters need relief. Denver joins a growing list of metro areas, including Boston and Seattle, that have called for similar actions.

“This is not a policy, it’s a conversation starter,” explained Councilwoman At Large Robin Kniech, who helped draft the document that’s headed for the desks of Polis, U.S. Rep Diana DeGette, Sens. Cory Gardner and Michael Bennet, House Speaker Nancy Pelosi and President Donald Trump.  

The proclamation calls on Polis to “use the full legal extent of his emergency powers” to ensure that “no Coloradan or small business who is unable to pay through no fault of their own should be required to pay rent during this health emergency, nor should they accumulate debt or interest for unpaid rent.”

More than 127,000 residents across the state have filed for unemployment, according to the Colorado Department of Labor, which is higher than the number of claims filed in all of 2019.

Denver saw a 245% increase in applicants for rental and utility assistance in March, according to the city. Still, nearly 84% of tenants paid rent for April, according to a survey of 300,000 apartment homes conducted by the Colorado Apartment Association.

Prior to the COVID-19 crisis, many residents already struggled to keep a roof over their head, with an average rent of $1,475. About 46% of renters pay more than 30% of their income on housing costs, according to city documents.

Some Denver landlords have worked with tenants to reduce rent and extend payment deadlines, city officials say, but others have continued to demand payment, file evictions and refuse to accommodate renters’ requests. 

Yet the state, like the city, lacks legal power to suspend rent or mortgage payments.

“These are private contracts between individuals and institutions and suspending the sanctity of contract is not within the emergency powers of any governor or President,” Conor Cahill, a spokesman for the governor’s office, told Colorado Politics by email. “The Governor has taken some of the strongest steps of any Governor in the nation on using his legal authority on behalf of renters and encourages the council members to join with the state in making rental assistance more widely available during this time.”

Polis and Denver Mayor Michael Hancock both issued temporary orders to suspend evictions amid the pandemic, but their hands are legally tied from doing much else.

When asked about the council’s proclamation during a press conference earlier Monday, Hancock said, “If it sends a message of the importance of and the symbolic power that something needs to be done to give renters a break, then hopefully the entire industry pays attention.”

His hope is that “everybody continues to work together to give that end user – the renter – the break necessary,” he said. “But landlords also have to have a break on their mortgages, and lenders have to be a partner in that.”

During Monday night’s meeting, Denver city government acknowledged the legal limitations at both the city and state level and therefore stressed the importance of action from the federal government in ensuring financial protection of all residents.

The proclamation “should not in any way be interpreted as anti-landlord,” Councilman Paul Kashmann said. “We recognize that we’re calling on our state and federal leaders to craft what is a complex solution that needs to protect all sides, especially the mom-and-pop landlord situation. Their monthly rent is necessary for their basic living expenses, and that needs to be taken into account.”

The Colorado Apartment Association on Monday night expressed concerns in response to the proclamation.

“We are grateful that members of the City Council took our input under advisement, but we worry the resolution as written could further harm the rental housing industry,” the trade association said in a statement. “It’s important to know that rent payments go beyond just the mortgage payment, rent payments also are used for payroll, maintenance, taxes, insurance and continue operation of their rental facilities.”

The nonprofit, which represents more than 3,100 apartment owners, said the proclamation “puts the needs of one group over the needs of another.

“It protects banks and renters while leaving rental housing providers, their employees, and their suppliers vulnerable to property foreclosures,” the CAA news release stated.

“For me, this proclamation tells the residents of our community that their pain is heard,” Councilwoman Amanda Sandoval said. “That we support the effort to alleviate their pain and, most importantly, that we recognize the connection between people being able to stay in their homes and protecting their health by slowing the spread of the virus.”