House OKs Construction Defects Breakthrough

(April 21) – The long-awaited consensus compromise on construction defects received the House’s voice-vote approval today.

A bill to break Colorado’s logjam over construction defects reform has eluded the Colorado legislature for years. The bipartisan breakthrough was engineered by Assistant Majority Leader Alec Garnett, D-Denver, who is sponsoring HB17-1279 with Rep. Lori Saine, R-Firestone. Assistant Minority Leader Cole Wist, R-Centennial, also played a big role in the months of intensive negotiations over the bill.

“We started before session began,” Rep. Garnett, D-Denver, told the House this morning. “There were moments of doubt about if we could get there, but what we never doubted was the trust that we had in each other that we wanted to get to the finish line.”

HB17-1279 requires the approval of a majority of members of a homeowners association before the HOA board can initiate legal proceedings against a general contractor or subcontractor. Under current law, litigation can be initiated by an HOA board without polling the membership.

The bill also requires HOA boards to distribute to members a report on the expected costs of proposed litigation and to notify members that their ability to sell their property may be impaired for the duration of a lawsuit. And it preserves protections for consumers to seek redress in court for construction defects.

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