In Colorado, construction defect litigation reform is a piecemeal process

Denver Post’s Brian Eason writes:

Declaring that the measure “will help make our housing more affordable,” Gov. John Hickenlooper on Tuesday signed into law one of the most hard-fought compromises of the 2017 session — a bill that will make it more difficult to sue builders for shoddy condo construction.

Business leaders for years have been seeking wholesale reforms to the state’s construction defects laws, blaming the state’s dormant condominium market on a legal environment that they say enables an excessive amount of lawsuits against developers. That, they argue, drives up insurance costs, leading developers to avoid building condos entirely in favor of rentals.

House Bill 1279, which took effect immediately when the governor signed it Tuesday, requires a majority of a condo complex’s unit owners — rather than just its homeowner association board — to consent to legal action against a developer for poor construction.

In a previous article at the Denver Post, various parties weighed in on the then-pending bill and the reasons why such legislation isn’t a panacea for creating more housing.

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