Condo defects bill chugs forward at Colorado Legislature

March 19, 2015

State lawmakers attempting to jumpstart new condo building in Colorado scored a win on Wednesday.

A bipartisan bill that would limit homeowner associations' ability to file lawsuits against builders for defects cleared its first committee. Sen. Jessie Ulibarri, D-Commerce City, is co-sponsoring the bill and says condos are a critical entry point to homeownership.

"Those opportunities no longer exist for working-class folks that are looking for affordable housing options," he said. "The supply is literally not there."

Developers argue a rash of lawsuits makes new condo construction untenable. So this bill would require arbitration before filing a lawsuit -- and approval from a majority of homeowners to pursue legal action, not just the HOA board. 

Jon Harris, whose HOA had to sue to fix a defect, says this bill is being pushed by developers.

"Attempting to take away our consumer rights and privileges tells us that you’re not building a quality product," Harris said.

The bill goes next to the Senate floor, but isn’t expected to advance in the House.