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Construction-defect bill advances

Measure would shorten length of time to sue
Homeowners at Rivergate Lofts, south of downtown Durango, won a $26.4 million settlement in 2011 after it was determined there were significant stabilization and support problems associated with defective construction. State lawmakers are debating whether to make it more difficult to file construction defect lawsuits.

DENVER – A Senate committee on Monday advanced a measure that would shorten the length of time homeowners have to sue over construction defects.

The Republican-backed measure passed the Senate State, Veterans and Military Affairs Committee on a party-line vote. It faces a tough climb if it makes its way over to the Democratic-controlled House.

Senate Bill 91 would lower the overall length of time homeowners have to sue from eight years to six years.

Sen. Ray Scott, R-Grand Junction, who sponsored the bill, had originally sought to lower the time to four years. But he offered an amendment on Monday that aimed to strike a deal at six years.

“What is a reasonable amount of time? I can’t 100 percent answer that question because I don’t know,” Scott said during the hearing. “But what we are seeing... is that the further we push the envelope, the harder the problem becomes.”

Democrats still rejected the measure, including Sen. Jessie Ulibarri of Westminster, who is sponsoring a second bipartisan construction-defect measure scheduled for Wednesday in the Senate Business Labor and Technology Committee.

That bill, Senate Bill 177, aims to curb lawsuits by requiring mediation, or arbitration, and the majority of homeowners in an association to agree to file a lawsuit, before legal action can be taken. It is viewed as a compromise.

Lawmakers have been working on construction-defect reform for several years, hoping that this is the year to get a measure over the finish line. It is perceived as a centerpiece issue for the Legislature this year.

Supporters say the issue is about encouraging developers to build at a time when vacancies are low and housing prices are high, including in Durango, where there is a shortage of affordable-housing options.

A memo dated Dec. 9 from Durango’s Community Development Department cites the threat of lawsuit as holding back development. The vacancy rate in Durango hovers around a very low 2 percent, and the city will need about 900 additional housing units within the next eight years.

But opponents of the measures believe the bills would do little to spur development, while eroding the rights of homeowners.

“Nobody wants to get involved in something like this,” testified Jon Harris, a Denver condo owner who has experienced defect issues. “If you build quality... you shouldn’t have a problem backing it up.”

pmarcus@durangoherald.com



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