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Construction Defects Litigation Reform
After tracking no less than seven bills this session having to do directly or indirectly with construction defects legislation, it appears that we are down to just one action that appears to be destined for the Governor's desk. On April 19th House Bill 17-1279 was heard and passed unanimously to the House floor by the State Affairs Committee. This bill is the House version of "Notice and Consent." The primary focus of the bill is to require homeowner disclosure, and then vote to enter into a construction defects claim. This bill is the result of significant negotiations between members of the HOA (Homeownership Opportunity Alliance) Policy Committee and the House bill sponsors; Representatives Garnett, Wist and Saine. CAHB is a member of the HOA and significantly participates in the HOA Policy Committee. The bill has received significant press coverage as the sponsors, Governor, Speaker as well as the HOA and other parties held a press conference announcing the agreement. Hopefully the bill will encourage builders to consider constructing new condo and townhome projects across the state.
As a result of the compromise, the HOA proposed bill, Senate Bill 17-156, was heard on April 20th, 2017 and was sent to the dust bin. SB17-156 included an alternate version of "Notice and Consent" as well as assuring builders that Alternative Dispute Resolution provisions remain in the community governance documents.
The other bills have either been postponed indefinitely (killed) or are expected to be soon.
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Additional Bills this Legislative Session
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CAHB has been engaged in other bills that would have impacts on the industry. Bills having to do with additional disclosure in the sales process, additional requirements for water engineering in the development planning process, utility extension policies, business mandates, electrical inspectors, changes or updates to Business Improvement and Urban Renewal Districts and others have been monitored. CAHB has weighed in on many of the bills either with the bill sponsors or providing testimony at committee hearings.
This legislative session will come to a close on Wednesday, May 10. A more complete legislative session wrap up and analysis will be provided.
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2018 Proposed Initiative
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The Colorado Association of Home Builders has been engaged in the Title Setting process regarding a proposed initiative for the 2018 ballot. This proposed initiative would significantly limit building permits in Colorado, primarily in the ten Front Range counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, Weld, Larimer and El Paso. If approved by voters in 2018, this initiative would essentially cut current building permit levels in half for 2019, 2020, and 2021 from the building permit levels of 2016. Obviously devastating for both the state economy and the housing industry.
CAHB has joined forces with several allies to oppose this initiative within the title setting process. All parties involved in this opposition are determined to defeat this injurious proposal.
Look for more information on this effort in future communications.
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Quarterly Board Meeting
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We are looking forward to the upcoming quarterly Board Meetings which will occur on Friday, May 19th at the offices of Bryan Cave in Downtown Denver. Based on input from our board members, it has been decided that the standing committee meetings as well the board meeting will occur on the same day, with a reception to be held upon adjournment.
For more information, please visit the newly revamped Colorado Association of Home Builders website at
hbacolorado.com
. It is easy to register as a member on our website, which will allow you to stay up-to-date with your state association, and on top of what is taking place at the state legislature.
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