DENVER – The ink is officially drying on the first success for construction defects litigation reform in Colorado, House Bill 1279.
The bill represents a highlight of bipartisan efforts in the 2017 legislative session, and it was signed into law by Gov. John Hickenlooper Tuesday in front of a crowd of lawmakers and stakeholders.
“We wouldn’t have been here if it wasn’t for the process working, and I wouldn’t be standing here if I didn’t trust my Republican co-partners,” Rep. Alec Garnett, D-Denver, and prime sponsor of the measure, told the crowd.
HB 1279 has been lauded by legislators and private organizations as a vital step toward thawing the condominium market by requiring a majority vote of unit owners, rather than a simple majority by a homeowners association, and setting a limit of 90 days for a vote to be held.
“The home-seekers out there and builders, job creators, needed to see some progress in this area, and this has created some momentum,” said Mike Kopp, CEO of Colorado Concern.
Colorado Concern, a coalition of chief executives from across Colorado, worked closely with lawmakers in the drafting of HB 1279 and said it is a watershed effort for the affordable housing market Despite the success, there might be need of more reform.
For example, some form of binding mediation or arbitration to avoid lawsuits might be the next steps, Kopp said.
The addition of arbitration has been criticized by homeowner advocacy groups, such as Build Our Homes Right, as a way of stripping away owners’ right to a trial. A bill that contained such provisions, Senate Bill 156, was killed during the session.
While HB 1279 does not include arbitration, it requires developers be given a chance to address owners and offer to remedy faulty construction before a lawsuit is pursued.
Sen. Jack Tate, R-Centennial, and sponsor of HB 1279, said there is a need to address other facets of the litigation by the bipartisan group of lawmakers that worked on defects this session.
“I’m looking forward to this being the first step towards a robust solution in our housing markets, and if not, this project team will be here at the Capitol to keep on working on this issue over the years to come,” Tate said.
But time is needed to see how the market acts in response to the new law, which Kopp said could take 12 to 18 months.
“We want to see the effects of this and we want to continue to engage the stakeholders from across our coalition as well as legislative leaders and mayors,” he said.
lperkins@ durangoherald.com
