Today, the Colorado Senate passed HB17-1279, a bipartisan bill that takes a much-needed step to address construction defects legislation and break down barriers to for-sale housing in Colorado, noted the Downtown Denver Partnership in a letter to its membership. The passage of this bill is the final step before the legislation heads to the Governor’s desk for signature as the first substantive piece of state legislation to address construction defects.
Specifically, the bill requires that, before the executive board of an HOA in a common interest community sues a developer or builder on behalf of unit owners, the board must:
- Notify all unit owners and the developer or builder against whom the lawsuit is being considered;
- Call a meeting at which the executive board and the developer or builder will have an opportunity to present relevant facts and arguments; and
- Obtain the approval of a majority of the unit owners after giving them detailed disclosures about the lawsuit and its potential costs and benefits.
Because of issues related to construction defects and other challenges to the housing market, we have been lacking in achieving this housing goal while investment in commercial properties continues to rise, said the DDP . The 2007 Downtown Area Plan set a goal of adding 18,000 new housing units by 2027, and since that time, even with the economic downturn, more than 12,000 new housing units have been built in the center city. Yet, only about one quarter of these have been for sale options, and while over the past two years, 4,385 total residential units have been built in the center city, only 4 percent are available to buy.