Compromise Bill on Construction Defects is Ready for Governor Signature

Written by: on Friday, May, 5th, 2017

On May 4, 2017, House Bill 17-1279 gained final unanimous approval in the Senate after unanimous approval in the House on April 24, 2017. H.B. 17-1279 has been referred to Governor John Hickenlooper to be signed into law.

H.B. 17-1279 requires that before an association, on behalf of its members, files suit against a developer or builder for a construction defect claim, the board must:

1. notify the unit owners and the developer or builder of the potential construction defect lawsuit;

2. hold an owner meeting wherein both the association (acting through the board) and the developer or builder have an opportunity to present their side of the argument and any facts and/or arguments deemed relevant; and

3. after the conclusion of the meeting, and only if:

a. the association provides the members with detailed disclosures about the lawsuit and its potential costs and benefits; and

b. if a majority of members (51%) approve moving forward with the lawsuit,

may the association file suit against the developer or builder.

The timeframe in which this vote must take place and in which approval must be gained begins at the conclusion of the meeting and runs for 90 days. All statute of limitations are tolled while this process is ongoing.

Please note that this process does not apply to construction defects or disputes between a contractor and an association if the contractor was specifically hired by the association to perform work in the community.

If you have any questions on the above please contact any of our attorneys at (303) 432-9999.