Colorado lawmakers have introduced Senate Bill 106, in hopes of promoting condominium construction in the state and providing more options for first-time homebuyers. The bill seeks to address the challenges faced by developers due to an excessive number of construction defect lawsuits, which have made projects in Colorado costly and difficult to insure.

By reducing the risk of lawsuits, the bill aims to attract condo developers to the state.

It includes provisions that limit the timeframe for homeowners to file lawsuits over defects, as well as the creation of a "right to remedy" process. This process allows homeowners to work with developers or third parties to address any issues without resorting to litigation.

Additionally, the bill requires homeowners associations to obtain approval from at least two-thirds of unit owners before filing a lawsuit.

State Senator Rachel Zenzinger, a lead sponsor of the bill, believes that addressing affordability challenges requires tackling various factors within lawmakers' control. The reduction of construction defect lawsuits is seen as one significant step towards achieving more affordable housing options in Colorado.

While Governor Polis has expressed support for reducing construction defect lawsuits in the past, this bill is not part of his current housing agenda. Similar bills related to construction defects have faced fierce opposition in the past, resulting in heated debates among lawmakers.

The future of the bill remains uncertain as it garners early support from both Republicans and Democrats.

PRIME SPONSORS

• Sen. Rachel Zenzinger (email)

• Sen. James Coleman (email)

• Rep. Shannon Bird (email)

However, left-leaning members are expected to strongly oppose the legislation, arguing that it undermines homeowners' rights and allows developers to sell poorly constructed homes with impunity. Jonathan Harris, chair of the group Build Our Homes Better, which opposes the bill, contends that it is the responsibility of developers to build quality homes and stand behind their products.

Critics of the bill also express concern about the challenges homeowners associations may face in filing lawsuits, particularly when owners reside out of state or lack up-to-date information on their community. Furthermore, the bill stipulates that homeowners can only file a case if the defect causes harm or poses an "imminent and unreasonable risk."

If homeowners utilize the right to remedy process provided by the bill and the issue is properly addressed, they would no longer be eligible to sue. However, they would retain the ability to sue if the repair was not adequate.

The legislation would impact the entire state, including Colorado's mountain towns, where housing costs are particularly high. Other housing bills introduced this session, such as those allowing for increased accessory-dwelling units, do not apply to most mountain towns.

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While some in the High Country support Senate Bill 106 and believe it could help boost condo construction, they acknowledge that it is not a cure-all solution. State Senator Dylan Roberts, a co-sponsor of the bill, emphasizes the need for a multifaceted approach to address the affordable housing challenges faced by mountain communities.

Senate Bill 106, co-sponsored by Senator James Coleman and Representative Shannon Bird, has been assigned to the Senate Local Government and Housing Committee for further consideration.