If you’ve owned or managed property in Denver for any length of time, you already know one thing—regulations don’t move slow out here. And HB23-1161 is one you can’t afford to ignore.

Starting January 1, 2026, installing 80% efficiency gas furnaces is no longer going to be an option in many cases. For decades, those units were the go-to for multi-family buildings because they were affordable, simple, and easy to replace. That’s changing, and it’s changing fast.

For multi-family properties, condos, and HOAs, this isn’t just a swap-and-go situation. You’re looking at a full shift in how heating systems are designed. Heat pumps are becoming the primary replacement—and while they’re efficient and versatile, they come with planning requirements that gas furnaces never did.

Here’s where I see most property owners getting caught off guard: timing and infrastructure. You can’t wait until a furnace fails in the middle of January and expect a quick replacement anymore. Electrical capacity, equipment availability, permitting—these all take time. And in multi-family buildings, multiply that complexity across every unit.

Cost is another big factor. Upfront, heat pump systems typically cost more than traditional furnace replacements. But there are rebates, incentives, and long-term operational savings that can offset that—if you plan correctly. I’ve seen HOAs save money long-term, but only when they take a proactive approach instead of reacting to breakdowns.

Permitting is also tightening up. Expect more inspections, more documentation, and stricter compliance requirements. The days of quick furnace swaps with minimal oversight are behind us.



Bottom line: start planning now. Inventory your existing systems, evaluate your electrical capacity, and map out a phased replacement strategy. The property owners who get ahead of this will save money and headaches. The ones who wait? They’ll be dealing with emergency installs, higher costs, and a lot of frustrated residents.