Colorado Legislature May Once Again Tackle Construction Defect Measure

Not for the first time, state lawmakers in Colorado may soon be tasked with tweaking a building defect bill that has been on the books for nearly three decades.

Passed in 2003, the Colorado Construction Defect Action Reform Act requires homeowners to let builders first know about any defects in their condos before taking legal action against them.

The idea behind the legislation has been to give builders a chance to avert litigation by either fixing any structural issues or simply paying the owner for the problem in question. Subsequent legislation approved by lawmakers required that homeowner associations must first secure the support of a majority of condo unit owners before any defect litigation could proceed.

That latter legislation was designed to make it more appealing for builders to take on condo projects by reducing the probability of defect lawsuits.

But now, according to reports, members of the Colorado legislature may soon be tasked with voting on a new bill that will additionally lower the risk of litigation.

In a joint letter sent to the Governor Jared Polis and members of the legislature by Denver Mayor Mike Johnston, Colorado Springs Mayor Yemi Mobolade, and Aurora Mayor Mike Coffman, it claimed that “politically motivated construction defect legislation has eviscerated any ability for the building industry to build condominiums, which are a prime entry point to home ownership.”

The letter additionally argues that more vigorous legislation should be passed to provide builders “with the right to cure, thereby protecting both buyers and sellers and returning this vital housing option to our residents.”

Supporters of a revising the Construction Defect legislation have pointed out that builders remain wary of taking on condo projects because of possible litigation: while new condominiums comprised 25% of residential construction in early 2008, as of 2002 that number had declined to 4.3%.

Exactly when and in what form the Colorado Legislature will revisit the Construction Defect legislation is currently unknown.

In the last legislative session Senate Bill 24-106, which was meant to address flaws in the original legislation, was ultimately postponed indefinitely by the House Transportation, Housing, and Local Government Committee.

January 14, 2025

By Garry Boulard

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