Colorado HB 1090 & Multifamily Water Costs: What Owners Need to Do Now

Ecofi is a full-service provider of water-efficiency upgrades for multifamily and commercial portfolios. We’ve administered both the Denver Waters water sense challenge and low income water conservation programs as well as partnered with Denver-area owners and operators for 10+ years.

Know Your Risk. Maximize Your Savings. – Contact us for an HB 1090 Readiness Assessment 

Starting January 1, 2026, Colorado HB 1090 (the “Junk Fees” law) prohibits RUBS (ratio utility billing) for residential rentals. In practice, owners can no longer allocate water/sewer via formulas or add indirect utility fees. Going forward, recovery must align with actual, owner-incurred utility charges, with strict limits on markups. That change pushes more water expense risk onto owners.

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HB 1090: Key Changes for Multifamily in Colorado

• RUBS Prohibited: No allocation by occupancy, square footage, or similar formulas.
• Actual-Cost Recovery Only: Chargebacks must reflect the utility’s billed amount; markup is capped (max 2% or $10/month, not both).
• Price Transparency: “Junk fees” and hidden add-ons are banned in leases and renewals.
• Enforcement Risk: Non-compliance may trigger refunds, interest, and legal exposure.
• Operational Implication: Inefficient plumbing now directly erodes NOI.

Practical takeaway: You can no longer rely on RUBS to offset inefficiency. The durable fix is to cut baseline usage with targeted retrofits and tighten ongoing water management.

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NOI Impact: Why Action Beats Absorption

The most reliable way to protect NOI is to permanently lower that bill.

• Reduce monthly water/sewer expense with modern, high efficiency fixtures
• Stabilize variability (leaks, run-ons, seasonal peaks)
• Stay compliant while maintaining a competitive resident experience

If you don’t take action, you’ll have no choice other than to absorb the cost and negatively impact the NOI of your property when the law comes into force. Being proactive now allows property owners and managers to get ahead of this dramatic shift in responsibility for utility payments.

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Case Study: Water Bills With & Without Upgrades

A 324 unit building with 424 bathrooms underwent a full bathroom and kitchen retrofit from Ecofi to replace older fixtures with new, high efficiency upgrades. High efficiency toilets, bathroom aerators, showerheads, and kitchen aerators were installed to reduce consumption as much as possible.

Annual Savings: $38,400

ROI: 32%

Savings to date: $322,000

Property value increase (based on 5% CAP rate): $768,000

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Colorado Multifamily Water Upgrades: Our Process

1. Assessment & Compliance Review – Fixture audit, leak risk
2. Scope & Design – High-impact retrofits: efficient toilets, water-saving showerheads, optimized faucet aerators; leak-monitoring strategy.
3. Rebates & Funding – Identification, application, and fulfillment for eligible Colorado/Denver-area incentives.
4. Measurement & Ongoing Performance – Post-install verification, usage tracking, and training to lock in savings.

Contact us for an HB 1090 Readiness Assessment

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HB 1090 (Colorado Junk Fees Law)

Multifamily FAQs: 

Is RUBS allowed after Jan 1, 2026?
No. Formula-based allocations are prohibited for residential rentals.

Can owners still charge residents for water?
Yes—but only actual, owner-incurred utility charges with a strict markup cap.

What upgrades typically qualify for incentives?
High-efficiency toilets, showerheads, and faucet aerators are commonly rebated; availability varies by jurisdiction and utility. Contact us for details.

Will owners pay more without upgrades?
In most cases, yes. Without efficiency, the same wasteful baseline becomes your direct cost center.

Does HB 1090 (Junk Fees Law) affect new and renewal leases?
Yes—effective Jan 1, 2026, leases must comply with pricing and transparency rules.

Schedule a free HB 1090 (Junk Fees Law) readiness assessment to quantify savings potential, identify rebates, and prioritize upgrades.