Still No Construction Defects Bill in Colorado

Date: May 17, 2016 Last Edit: May 18, 2016

Legislature winds down session without solving issue.

Still No Construction Defects Bill in Colorado

Over ten years later, and the battle to change Colorado’s
construction defects law is still far from over.

Opponents of the law say it allows for excessive
lawsuits by homeowner associations over construction disputes, resulting in
lagging condo construction, a shortage of affordable housing for homebuyers,
and crippling hits to contractors and subcontractors throughout the state.

The Denver Post, in a recent editorial
arguing for reform to the law, pointed out that 25 percent of all single-family
dwellings built in 2007 were condos—a number that has shrunk to single digits
today.

While the Legislature was expected to take up
the issue during the 2016 session, a bill to fix the law was not introduced.

“Such a bill would not amount
to a bailout for developers,” the Denver Post wrote. “It would be a proposal to
ensure the long-term health of cities.”

The problem is rampant throughout Colorado
cities—not just in Denver. Many communities—including the state’s three largest
cities—have passed local ordinances discouraging excessive construction
lawsuits, but the state itself has not.

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