The State, Veterans & Military Affairs Committee passed a bill to the full Senate on Monday that would clear the way for local governments to implement rent control policies.

After more than four hours of discussion from dozens of people testifying on each side, the vote on SB 19-225 went along party lines, with three Democrats in favor and two Republicans opposed.

“There should be some creative solutions. This may not be the exact answer. But there is no better way to get a real conversation going,” said Sen. Mike Foote, chair of the committee and a co-sponsor on the measure.

The bill seeks to reverse a 1981 law that prohibits local governments from implementing their own rent control measures.

Supporters of the bill argued the issue is fundamentally about local control and that governments needed more flexibility as they try to address skyrocketing rents. Backers added an amendment that clarified the measure wasn’t about creating a statewide policy.

But opponents countered that rent control policies, however well-intentioned, would limit supply and push up housing costs. Development would shift to communities without rent controls, increasing the burden on them.

Several landlords testified they would most likely sell properties to owner-occupants to get ahead of price declines and that the overall supply of rentals would decline, causing rents to go higher, not lower. They argued more supply was the answer.

“The legislature needs to embark on a bipartisan effort to come up with a solution. Rent control is not and will not be the solution,” said Tim Emery, on behalf of the Investment Community of the Rockies, an association of small-scale landlords.

Supporters emphasized they weren’t necessarily seeking rent control as much as rent stabilization, although the difference in those two terms was heavily debated. Representatives from Denver and Summit County highlighted how the statewide ban had tied their hands when it came to crafting solutions.

“We have worked hard on housing for many years. We have invested significantly in it. But something has changed,” said Thomas Davidson, a Summit County commissioner, pointing to the surge in short-term rentals that had reduced the housing stock.

“We desperately need some tools in our toolbox,” he said. He pointed to a case where a developer voluntarily agreed to codify lower rents on a property, but the state prohibition prevented that.

Denver City Councilwoman Robin Kniech testified that Denver had an inclusive housing ordinance that limited price increases on for-sale homes designated as affordable, but couldn’t do anything similar for rentals.

She noted the inability to give renters certainty on the increases they faced was contributing to increased homelessness and adding to the strain on city resources.

“If they (renters) have to move and they become homeless, we provide shelter and emergency services for those families,” she said.