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  • Tax Credit for Commercial Building Conversion

    HB24-1125

    Summary

    The bill would create a new refundable tax credit beginning in January 2026 to help cover certain costs related to the conversion of a commercial structure to a residential structure, including costs related to elevator modifications, window modifications, utility upgrades, plumbing modifications, and facade changes. The credit is capped at $3 million for any one project and $5 million during any calendar year. Amounts over the cap would rollover to the next calendar year. The Colorado Office of Economic Development and International Trade would oversee the program and vet applicants based on criteria including a project’s access to public transportation, the geographic diversity of applicants and whether a project is receiving other incentives.

    Legislative Updates

    • 2024-05-14 / Introduced
      House Committee on Appropriations Lay Over Unamended – Amendment(s) Failed
    • 2024-02-29
      House Committee on Finance Refer Amended to Appropriations
    • 2024-01-29 / Introduced
      Introduced In Senate – Assigned to Finance

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    March 13, 2024
    Legal Alerts
  • Real Property Owner Unit Association Collections

    Summary

    (HB24-1337)

    The bill limits certain amounts that may be collected by owner’s associations from unit owners. When an owners’ association can require a unit owner to reimburse the association for collection costs, attorney fees, or other costs resulting from the owner’s failure to timely pay assessments or other money owed, the bill limits the reimbursement amount to $5,000 or 50% of the original money owed. When an owners’ association can require a unit owner to reimburse the association for collection costs and attorney fees resulting from the owner’s failure to obey the bylaws or rules of the association, the bill limits the reimbursement amount to $5,000 or 50% of the actual cost the association incurred for the failure to obey. When an association prevails in an action to collect unpaid assessments or enforce or defend the association’s bylaws or rules, the bill limits the award for attorney fees to $5,000 or 50% of the balance owed to the association. The bill also prohibits an association from foreclosing on a lien for amounts owed to the association by the unit owner until certain circumstances have been met. The bill prohibits foreclosure on a lien if the unit owner is in compliance with a payment plan for the amount due.

    Legislative Update

    • 2024-06-05 / Passed
      Governor Signed
    • 2024-05-29
      Sent to the Governor
      Signed by the President of the Senate
      Signed by the Speaker of the House
    • 2024-04-30 / Enrolled
      House Considered Senate Amendments – Result was to Concur – Repass
      House Considered Senate Amendments – Result was to Laid Over Daily
    • 2024-04-29
      Senate Third Reading Passed – No Amendments
    • 2024-04-26
      Senate Second Reading Passed with Amendments – Committee, Floor
    • 2024-04-23
      Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
    • 2024-04-12
      Introduced in Senate – Assigned to Local Government & Housing
    • 2024-04-08
      House Third Reading Passed – No Amendments
    • 2024-04-05
      House Third Reading Laid Over Daily – No Amendments
    • 2024-04-04
      House Second Reading Special Order – Passed with Amendments – Committee, Floor
    • 2024-03-25
      House Second Reading Laid Over Daily – No Amendments
    • 2024-03-20
      House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
    • 2024-02-26
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    March 1, 2024
    Legal Alerts
  • Regulation of Community Association Managers

    HB24-1078

    Summary

    The bill establishes licensure requirements for business entities that perform community association management (CAM) for common interest communities. The bill makes it unlawful on or after July 1, 2025 for a business to perform community association management duties without a license. The real estate division of DORA will administer the regulatory program for CAMs. To obtain a license, the business entity must demonstrate compliance with certain insurance requirements, designate an individual as the controlling manager responsible for the CAM activities; pay a fee; and obtain criminal history record checks for the controlling manager. DORA will also establish education requirements for controlling managers and employees of the licensed entity who perform CAM on behalf of the entity. The bill also sets forth various grounds for disciplining a licensed entity.

    Legislative Updates

    • 2024-05-14 / Introduced
      House Committee on Appropriations Lay Over Unamended – Amendment(s) Failed
    • 2024-03-07 
      House Committee on Finance Refer Unamended to Appropriations
    • 2024-02-14
      House Committee on Transportation, Housing & Local Government Refer Amended to Finance
    • 2024-01-10
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    February 26, 2024
    Legal Alerts
  • Davis Graham Legal Alert: Amendment To Statute That Shuttered Private 14ers To Provide New Protection to Landowners (But It Isn’t Foolproof)

    Four years after a federal court entered a $7 million judgment to a mountain biker injured on Air Force Academy property, a proposed amendment to the Colorado Recreational Use Statute is once again before the legislature. This time, the amendment seeks to narrow the scope of an exception to the statute under which the Academy was held liable by protecting landowners from liability for failing to warn recreational users of a known dangerous condition, provided appropriate signage is posted at key locations used to access the recreational area.

    The Colorado Recreational Use Statute (“CRUS”) was enacted “to encourage owners of land to make land and water areas available for recreational purposes,” C.R.S. § 33-41-101, and provides a shield from liability to owners who permit such use without charge. But as the Academy learned in 2019, “this broad liability shield is only nearly complete.” Nelson v. United States, 915 F.3d 1243, 1247-48 (10th Cir. 2019).

    The statute carves out a few exceptions under which a landowner can be held liable, one of which is for “willful or malicious failure to guard or warn against a known dangerous condition, use, structure, or activity likely to cause harm.” C.R.S. § 33-41-104(1)(a). It was this exception that resulted in the nearly $7 million verdict against the Academy in 2019 and which was followed by trail closures on private property across the state, including several 14ers, such as those in the popular DeCaLiBron loop.

    Here’s how it happened.

    In September 2008, a mountain biker, Nelson, was traveling down a trail on Academy property when he hit a sinkhole, crashed, and sustained a traumatic brain injury. The biker and his wife sued the Academy for damages. Signs at the trailhead prohibited motorized vehicles and identified the trail as a bike path, though another sign directed cyclists not to enter Academy property, through which the trail ran. Although the Academy viewed cyclists on its property as trespassers, it nevertheless knew cyclists and others used the trail.

    The sinkhole covered the entire width of the trail but was difficult to see, particularly for bikers. It had been discovered a couple of weeks before Nelson’s crash by a biologist for the Fish and Wildlife Service, who was responsible for monitoring erosion and reporting issues to the Academy. Although the biologist observed and documented the sinkhole, he did not notify the Academy and the Academy did not post any signage or otherwise warn of the damage to the trail. After years of litigation, the U.S. District Court for the District of Colorado entered judgment against the Academy and in favor of Nelson due to the Academy’s willful failure to warn of a known dangerous condition.

    The Nelson case presented a number of issues for landowners who permit recreational use on their properties.

    One of the key issues Nelson decided was whether a landowner could be held liable for an accident on an unofficial trail, the use of which it did not expressly permit. Here, the court relied upon the language of the CRUS statute, which provides a shield from liability for a landowner who “directly or indirectly invites or permits” the use of its property for recreational purposes. C.R.S. § 33-41-103(1). Because the Academy knew the public used the path but took no steps to prevent it—particularly given the existence of the bike path sign—the court found the Academy indirectly permitted Nelson (and others) to use the path and could be liable under CRUS. Nelson v. United States, 827 F.3d 927, 932 (10th Cir. 2016).

    The remainder of the case turned primarily on the failure to warn exception in the CRUS statute, particularly, what constitutes a “known” dangerous condition and a “willful” failure to warn of the same.

    First, to constitute a known dangerous condition, the landowner must have actual knowledge, which is knowledge based upon “awareness of objective facts.” Nelson v. United States, 915 F.3d 1243, 1249 (10th Cir. 2019) (affirming trial court). Although the biologist did not believe the trail was then being used as an official trail for recreational purposes, he agreed that the sinkhole damage would present a dangerous condition to trail users were it open to the public. This was enough, the court held:

    The fact that the path was not an official Academy trail, however, does not make it any less of a dangerous condition to the people using it for recreational purposes…[The biologist] saw and photographed a sinkhole the parties agreed was dangerous. He knew people used the path for recreation. And a large and difficult-to-see sinkhole on a paved path is dangerous even if few people travel the path.

    Nelson, 915 F.3d at 1254.

    Second, the court interpreted the “willful” failure to warn component of the statute, finding willful conduct to be conduct taken “voluntarily, purposefully and with a conscious disregard for the consequences of the conduct.” Nelson, 915 F.3d at 1250 (internal brackets omitted). Importantly, the trial court found that willfulness “does not require that a [landowner] be consciously aware that his acts or omissions create danger or risk to the safety of others.” Id. (citing Nelson v. United States, 256 F. Supp. 3d 1136, 1159-60 (D. Colo. 2017)).

    On appeal, the Academy took issue with the latter part of this definition, advocating for an interpretation that required the plaintiff that show the landowner consciously chose to expose others to risk by failing to warn. The 10th Circuit rejected this interpretation, noting that knowledge of a dangerous condition is a separate component of the statute and the Academy’s interpretation would render that language superfluous. Nelson, 915 F.3d at 1250. Though subtle, the distinction is important for landowners. Essentially, it means that an owner need not connect the dots between the failure to warn and the concomitant risks of that failure to the public to be held liable under CRUS. It is enough that an owner knows something is dangerous and decides, without a thought about the risks of doing so, not to give warning while also directly or indirectly permitting access to his land for recreational purposes.

    Nelson sent shockwaves throughout Colorado, resulting in popular hiking trails through private property being closed to the public. Some of those include 14ers on the DeCaLiBron loop, a 7-mile loop hitting the summits of Mounts Democrat, Cameron, Lincoln, and Bross. Local organizations, such as the Colorado Mountain Club and 14ers Initiative, as well as national organizations like Access Fund the American Alpine Club have since advocated for a change to the laws and for the reopening of summits and trails throughout the state.

    Since Nelson, there have been two attempts to amend the CRUS failure to warn exception in favor of landowners. The first came in 2019, which unsuccessfully attempted to strike out the entire failure to warn exception deemed applicable to the Academy.[1] That bill was ultimately tabled. Next, in 2023, a proposed bill sought to eliminate just the “willful” component of the failure to warn exception, but the bill suffered the same fate as its predecessor.

    This year, the proponents of Bill SB24-058 have taken a different tack. Rather than delete the failure to warn exception, the proposed bill inserts a new section providing that a landowner cannot be held liable for failure to warn if he (1) posted a sign at the primary access point the user used to access the property before the injury occurred, (2) the sign includes language prescribed by the proposed amended statute, (3) the sign meets the minimum size requirements described in the proposed statute, (4) the sign is posted in a visible location at the primary access point, (5) the owner maintains photographic evidence of the sign, and (6) the sign describes the dangerous condition, use, structure, or activity that caused the injury or death.

    Although helpful, the bill still leaves pitfalls of which landowners should be aware. First, “primary access point” is not defined, and there may be more than one. Landowners seeking to comply with the bill should post signs at all defined access points to recreational trails and waters on their property. Second, although the proposed amended statute includes required language for the sign, the warning is only sufficient if the sign describes the dangerous condition that actually causes injury. The proposed required language is as follows:

    YOU ARE ENTERING THIS LAND FOR RECREATIONAL PURPOSES. IF YOU LEAVE THE DESIGNATED TRAIL, ROUTE, AREA, OR ROADWAY YOU WILL BE DEEMED TRESPASSING. THERE ARE INHERENT DANGERS AND RISKS ASSOCIATED WITH USING THIS LAND THAT MAY CAUSE SERIOUS INJURY OR DEATH, INCLUDING CHANGING WEATHER CONDITIONS; OPEN AND OBVIOUS VARIATIONS IN STEEPNESS, SURFACE CONDITIONS, AND CONSISTENCY OF TERRAIN, SUCH AS FOREST GROWTH, ROCKS, STUMPS, WATERWAYS, STREAMBEDS, CLIFFS, EXTREME TERRAIN, AND TREES; WILDLIFE; AND MINING OR AGRICULTURAL ACTIVITIES, STRUCTURES, REMNANTS, EQUIPMENT, OR OPERATIONS.

    While the language may be broad enough to cover many or even most land-related backcountry pitfalls, landowners should be careful to expressly list or describe any use or condition existing on their property not covered by the above warning. Third, the sign must be visible and owners must maintain evidence of its existence. Changing seasons and natural growth means changing conditions, so landowners should periodically monitor the sign, refresh any faded or defaced portions of the warning, and ensure that the sign is not overcome by adjacent vegetation.

    SB24-058 is currently under consideration. If the bill does not pass, landowners permitting use of their properties for recreational use should still consider placing the signs described in the bill at the primary access points of their properties as a warning mechanism to avoid liability.

    Should you have questions about the content of this Legal Alert, please contact Sarah Kellner or Chelsea Reinhard.

    [1] https://leg.colorado.gov/sites/default/files/documents/2019A/bills/2019a_1303_01.pdf

    February 26, 2024
    Legal Alerts
  • Safe Housing for Residential Tenants

    SB24-094

    Summary

    Bill 24-094 modifies and clarifies existing warranty of habitability laws to delineate actions that constitute a breach of the warranty of habitability and procedures for warranty of habitability claims alleged by the tenant. These modifications include, requiring landlords to address an uninhabitable condition until such condition is remedied or repaired, establishing a rebuttable presumption that a landlord has failed its duty to remedy or repair a condition if it exists either 7 or 14 days after the landlord has notice of the condition, and clarifying certain conditions that are considered inhabitable. This bill also establishes legal standards and court procedures for tenants’ claims and landlords’ defenses to the claims, clarifies and prohibits retaliation, and delineates the jurisdiction of the attorney general and courts over matters regarding the warranty of habitability.

    Legislative Updates

    • 2024-05-03 / Passed
      Governor Signed
    • 2024-04-23
      Sent to the Governor
      Signed by the Speaker of the House
      Signed by the President of the Senate
    • 2024-04-09
      Senate Considered House Amendments – Result was to Concur – Repass
    • 2024-04-08
      House Third Reading Passed – No Amendments
    • 2024-04-05
      House Second Reading Special Order – Passed with Amendments – Floor
    • 2024-04-02
      House Committee on Transportation, Housing & Local Government Refer Unamended to House Committee of the Whole
    • 2024-03-12
      Introduced in House – Assigned to Transportation, Housing & Local Government
    • 2024-03-11
      Senate Third Reading Passed – No Amendments
    • 2024-03-08
      Senate Second Reading Passed with Amendments – Floor
    • 2024-03-07
      Senate Second Laid Over Daily – No Amendments
    • 2024-03-06
      Senate Second Reading Laid Over Daily – No Amendments
    • 2024-01-24 / Introduced
      Introduced In Senate – Assigned to Local Government & Housing

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    February 23, 2024
    Legal Alerts
  • Cause Required for Eviction of Residential Tenant

    HB24-1098

    Summary

    The legislature passed a bill that prohibits a landlord from evicting a residential tenant, even after expiration of a lease, unless the landlord has cause for eviction or when certain statutory grounds for a no-fault eviction exist. Grounds for a “no-fault eviction” include when the premises will be demolished or converted, for substantial repairs and renovations to the premises, when the landlord or a family member takes over occupancy, when the premises is listed for sale, when the tenant refuses to sign a new lease with reasonable terms, and when a tenant has a “history” of nonpayment of rent.

    Legislative Update

    • 2024-04-19 / Passed
      Governor Signed
    • 2024-04-10
      Sent to the Governor
    • 2024-04-09
      Signed by the President of the Senate
    • 2024-04-08
      Signed by the Speaker of the House
    • 2024-03-28
      Senate House Considered Senate Amendments – Result was to Concur – Repass
    • 2024-03-27
      Senate House Considered Senate Amendments – Result was to Laid Over Daily
    • 2024-03-26
      Senate Third Reading Passed with Amendments – Floor
    • 2024-03-25
      Senate Second Reading Passed with Amendments – Floor
    • 2024-03-25
      Senate Second Reading Passed with Amendments – Committee
    • 2024-03-22
      Senate Second Reading Laid Over to 03/25/2024 – No Amendments
    • 2024-03-21
      Senate Second Reading Laid Over Daily – No Amendments
    • 2024-03-18
      Senate Second Reading Laid Over to 03/21/2024 – No Amendments
    • 2024-03-15
      Senate Second Reading Laid Over Daily – No Amendments
    • 2024-03-12
      Senate Second Reading Laid Over Daily – No Amendments
    • 2024-03-07
      Senate Committee on Local Government & Housing Refer Amended to Senate Committee of the Whole
    • 2024-02-26
      Senate Introduced In Senate – Assigned to Local Government & Housing
    • 2024-02-20
      House Third Reading Passed with Amendments – Floor
    • 2024-02-16
      House Second Reading Special Order – Passed with Amendments – Committee, Floor
    • 2024-02-14
      House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
    • 2024-01-24
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    February 23, 2024
    Legal Alerts
  • Equal Access to Public Meetings

    Summary

    (HB24-1168)

    The bill requires public meetings to be available in real time by live streaming that is recorded and accessible to people with disabilities, requires public bodies to post any documents that will be distributed in a public hearing on their websites 24 hours in advance, requires public bodies to permit public comment by video conferencing unless there is no internet, and requires public bodies to provide auxiliary aids or services for meetings, if requested in advance.

    Legislative Updates

    • 2024-05-14 / Introduced
      House Committee on Appropriations Lay Over Unamended – Amendment(s) Failed
    • 2024-03-20
      House Committee on Transportation, Housing & Local Government Refer Amended to Appropriations
    • 2024-01-31
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    February 23, 2024
    Legal Alerts
  • Homeowners’ Associations Foreclosures Sales Requirements

    HB24-1158
    Summary

    The bill requires certain notices to be sent to unit owners in an HOA before the HOA may foreclose on the unit for past due assessments, limits who can purchase the foreclosed unit, and sets a minimum initial bid amount for the HOA at auction. The bill limits a court’s award of reasonable attorney fees that an HOA incurs when foreclosing on an HOA lien to $2,500.

    Legislative Updates

    • 2024-04-16 / Introduced
      House Third Reading Lost – No Amendments
    • 2024-04-14
      House Third Reading Laid Over Daily – No Amendments
    • 2024-04-14
      House Third Reading Laid Over Daily – No Amendments
    • 2024-04-12
      House Third Reading Laid Over to 04/14/2024 – No Amendments
    • 2024-04-10
      House Third Reading Laid Over Daily – No Amendments
    • 2024-04-08
      House Third Reading Laid Over to 04/10/2024 – No Amendments
    • 2024-04-05
      House Second Reading Special Order – Passed with Amendments – Committee, Floor
    • 2024-03-25
      House Second Reading Laid Over Daily – No Amendments
    • 2024-03-20
      House Committee on Transportation & Local Government Refer Amended to House Committee of the Whole
    • 2024-01-31
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    February 23, 2024
    Legal Alerts
  • Judicial Review of a Local Land Use Decision

    HB24-1107
    Summary

    The bill requires a court to award reasonable attorney fees to a prevailing governmental entity in an action for judicial review of a local land use decision involving residential use with a net project density of 5 dwelling units per acre or more, except for an action brought by the land use applicant before the governmental entity. Filing an action for judicial review of a local land use decision does not affect the validity of the local land use decision. The bill authorizes a governmental entity and the public to rely on the local land use decision in good faith for all purposes until the action for judicial review is resolved.

    Legislative Updates

    • 2024-05-30 / Passed
      Governor Signed
    • 2024-05-08
      Sent to the Governor
      Signed by the President of the Senate
      Signed by the Speaker of the House
    • 2024-04-23
      Senate Third Reading Passed – No Amendments
    • 2024-04-22
      Senate Second Reading Passed – No Amendments
    • 2024-04-17
      Senate Committee on Judiciary Refer Unamended to Senate Committee of the Whole
    • 2024-03-15
      Introduced in Senate – Assigned to Judiciary
    • 2024-03-11
      House Third Reading Passed – No Amendments
    • 2024-03-08
      House Second Reading Special Order – Passed with Amendments – Committee, Floor
    • 2024-01-25 / Introduced
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    February 23, 2024
    Legal Alerts
  • Accessory Dwelling Units

    HB24-1152
    Summary

    Bill 24-1152 creates additional requirements for accessory dwelling units. First, the bill creates requirements for “subject jurisdictions” and “supportive jurisdictions.” A subject jurisdiction is a municipality with 1,000 or more people or a portion of a county within a census designated space with more than ten thousand people, and it must be within an area of a metropolitan planning organization. Subject jurisdictions are required to allow one accessory dwelling unit as an accessory use to a single-unit detached dwelling where the subject jurisdiction allows single-unit detached dwellings. This bill also requires the department to provide a fee reduction and encouragement grant, and various programs supporting accessory dwelling units for residents in supportive jurisdictions (jurisdictions that submit a report to qualify as a support jurisdiction). The department must also develop a toolkit to encourage local governments accessory dwelling construction and model public safety code requirements regarding geographic or climatic conditions for factory-built structures. Additionally, this bill prohibits planned unit developments from enacting stricter restrictions on accessory dwelling units than what local laws provides for outside of the planned unit development. Similarly, this bill prohibits as void against public policy, any prohibition or extensive regulation of accessory dwelling units by a unit owners’ association in a supportive jurisdiction.

    Legislative Updates

    • 2024-05-13 / Passed
      Governor Signed
    • 2024-05-09
      Sent to the Governor
      Signed by the Speaker of the House
      Signed by the President of the Senate
    • 2024-05-07
      House Considered Senate Amendments – Result was to Concur – Repass
    • 2024-05-06
      Senate Third Reading Passed with Amendments – Floor
    • 2024-05-04
      Senate Second Reading Special Order – Passed with Amendments – Committee, Floor
    • 2024-05-03
      Senate Second Reading Laid Over to 05/04/2024 – No Amendments
    • 2024-05-02
      Senate Second Reading Laid Over to 05/03/2024 – No Amendments
    • 2024-05-01
      Senate Second Reading Special Order – Laid Over to 05/02/2024 – No Amendments
    • Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole
    • 2024-04-23
      Senate Committee on Local Government & Housing Refer Amended to Appropriations
    • 2024-04-18
      Introduced in Senate – Assigned to Local Government & Housing
    • 2024-04-14
      House Third Reading Passed – No Amendments
    • 2024-04-12
      House Second Reading Special Order – Passed with Amendments – Committee, Floor
      House Committee on Appropriations Refer Amended to House Committee of the Whole
    • 2024-02-27
      House Committee on Transportation, Housing & Local Government Refer Amended to Appropriations
    • 2024-01-30
      Introduced In House – Assigned to Transportation, Housing & Local Government

    This content is updated every Thursday, but is not a comprehensive list of updates. If you have questions regarding a specific piece of legislation, please contact Davis Graham partner, Sarah Kellner.

    Lindsey Reifsnider

    February 23, 2024
    Legal Alerts
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