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Apr 21, 2017

Colorado Bill Addressing Condominium Defects Moves Forward

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A bill designed to simplify the process used by condominium owners filing suit against developers and builders has passed the House State, Veterans, and Military Affairs Committee.

The legislation, HB 1279, aims to both address condo owner complaints regarding defective construction, while also providing a procedure requiring those same owners to first enter into discussions with developers and builders regarding those complaints.

An increase in condo defect litigation in Colorado in recent years has resulted in many builders exiting the condo construction market. According to one report, condo construction made up more than 20 percent of the housing starts in the metro Denver in 2007, but now represents less than 5 percent.

That decline, in turn, has led to a pent-up market demand for more condos throughout the state, a demand that as yet has gone unsatisfied.

The legislation will require condo owners to first meet with developers and builders in an attempt to resolve any defect issues. Should matters remain unsettled, condo owners would then be required to get a majority vote from their homeowners’ associations before they pursue litigation.

The bill, which has won the backing of Colorado Governor John Hickenlooper, is now on its way to the full Colorado House.

 

By Garry Boulard

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