Homeowner consent bill introduced in state House
Yet another attempt to reform Colorado’s construction defects statute has been introduced in the legislature, this time a bipartisan bill that would require majority approval by homeowners to initiate a legal action against a builder rather than leaving that decision to a homeowner association board.
The measure, House Bill 1279, has support from both sides of the aisle, with Rep. Alec Garnett, D-Denver, and Lori Saine, R-Dacono, serving as the primary sponsors in the House. It was introduced in the chamber late Friday night.
“This bill will establish a fair and balanced process for all homeowners and will establish confidence in the marketplace for developers to break ground,” Garnett said in a statement.
HB 1279 is one of six bills that have been introduced in the statehouse this session to tackle an issue that many blame for stymieing condominium construction in the Denver metro area. Two of those measures have already been voted down in committee and a third — one that would require binding arbitration as a dispute resolution approach over litigation when a construction defects claim is made — is unlikely to prevail after being assigned to what many refer to as a “kill” committee in the House.
While HB 1279 was assigned to the same committee — the House State, Veterans & Military Affairs Committee — Garnett said it stands a better chance of prevailing given that Speaker Crisanta Duran is a bill sponsor.
Sen. Lucia Guzman, DDenver, is sponsoring HB 1279 on the Senate side. She said the bill would balance homeowners’ ability “to seek damages for defective work with provisions to shield honest businesses from bad actors.”
Many proponents of construction defects reform have criticized Colorado law for allowing an HOA board to file a lawsuit against a builder for shoddy workmanship without having to first ask the individual unit owners in a condo complex if that’s what they want.
Litigation can harm homeowners by making it nearly impossible for them to sell or refinance their homes while the legal challenge is in play, reform backers say. HB 1279 would mandate that homeowners be informed of the expected costs of proposed litigation and be told that their ability to sell their property could be impaired for the duration of a lawsuit.