A bill to address the onslaught of litigation that is suffocating development of entry-level housing was introduced at the Capitol this week.
Current laws allow lawsuits on behalf of all homeowners’ association members to be filed with the approval of as few as two condo owners. This law has been exploited, leading to widespread litigation and skyrocketing insurances costs for builders, which discourages condo building in our community. In 2005, condos comprised 20 percent of the metro Denver new housing market, while today it has plummeted to just 2 percent.
This dearth has led to concern among the business community about how that may impact our ability to attract and retain great workers—and to allow them to set long-term roots in the area. With a strong economy and smart, healthy workforce, people want to do business here, but the challenges of our housing market are working against that success.
Senate Bill 156 would ensure owners of condominiums are made aware of any potential litigation over a defect with the building—and would require alternative dispute resolution before bringing the case to court, when prescribed in the governing documents. We believe this will lead to lower legal costs and faster resolution of any construction issues while still maintaining important consumer protections.
The introduction of this bill is an encouraging sign, and we hope the General Assembly will agree and support the variety of actions proposed in these bills—and not let it die on party lines. We will continue to alert members to the progress of these and other bills related to addressing housing in Colorado.
To view all the bills the Chamber is tracking this legislative session, click here.