Right to Remedy Construction Defects and Other Bills We Are Tracking

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CAR supports SB24-106, concerning legal actions based on claimed defects in construction projects. CAR staff is working in support of the bill through a coalition of like-minded organizations called the Homeowner Opportunity Alliance. The bill will help to increase the supply, quality, and accessibility of affordable housing units and will create more opportunities for Coloradans to build wealth through homeownership.  According to CAR, the bill will:

  • Right-to-remedy – If a construction professional is notified of a defect claim, this provision gives the property owner the choice to either have the original contractor make the repair, or work with the contractor to find someone acceptable to perform the remedial work. If there are problems with the remedial work, they can determine how to proceed with the entity responsible for providing the remedial work.
  • Informed consent – This consumer protection provision ensures the disclosures required in statute are honored and that homeowners receive their disclosures prior to providing their written consent to litigate a construction defect claim by a homeowner’s association, and it requires consent of 67% of the actual unit owners prior to pursuing litigation. This threshold is consistent with every other required vote under the Colorado Common Interest Ownership Act (CCIOA) to encumber common elements or to repair or replace common elements. Additionally, the provision requires homeowner’s associations to retain notices, and if a notice of claim changes, they are required to again inform homeowners and receive their consent.
  • Negligence per se – Under current law, claims often contain technical code violations that do not harm the performance of a home or affect its structural integrity, functionality, or create a health and safety issue. In this provision, no claims for negligence can be asserted for noncompliance with technical code violations, unless those violations cause actual damages to real or personal property within a home or complex, cause bodily harm or wrongful death, or an imminent and unreasonable threat to life.

Other bills we are tracking include:

Energy

  • SB 159 – Mod to Energy & Carbon Management Processes.  Bill requires the energy and carbon management commission to adopt rules to cease issuing new oil and gas permits before January 1, 2030.  

Business Affairs/Labor

  • HB 1008 – Wage Claims Construction Industry Contractors – Concerning measures to expand general contractor accountability for wage claims involving contractors in the construction industry. Assigned to House Appropriations Committee.  CO Chamber of Commerce Opposes. Colorado Competitive Council (C3) Opposes.
  • HB 1014 – Deceptive Trade Practice Significant Impact Standard – The bill establishes that evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact to the public. Senate Business, Labor & Technology Committee.. Colorado Association of Realtors (CAR) Opposes. CO Chamber Opposes. C3 Opposes. 

Health/Human Services

  • HB 1075 – Analysis of Universal Health-Care Payment System. Concerning consideration of a statewide universal health-care payment system, and, in connection therewith, creating an advisory task force for the purpose of advising the Colorado school of public health in conducting an analysis of draft model legislation concerning a statewide universal health-care payment system. House Appropriations Committee.  CO Chamber Opposes. C3 Opposes.

Taxation

  • HB-1144 – Income Tax Credit for Mortgage Rate Buy Downs. House Finance Committee. House Finance Committee hearing Feb 29th.  CAR Supports
  • SB 033 – Lodging Property Tax Treatment – The bill proposes to increase the property tax of short-term rentals from a residential taxation rate (approximately 6.7% assessment) to a commercial rate (approximately 27.9% assessment) for any unit rented more than 90 days in a calendar year. Senate Finance Committee. CAR Opposes. CO Chamber Opposes. C3 Opposes.
  • HB 1299 – Short-Term Rental Unit Property Tax Classification – Under the bill, a commercial short-term rental unit is classified as lodging property, which is a subclass of nonresidential property for purposes of valuation for assessment. A short-term rental unit that is the owner’s primary or secondary residence will continue to be classified as residential property.

Housing

  • HB 1083 – Concerning insurance coverage for construction professionals. The bill requires that, at least 14 days prior to closing the sale of a new residence, the seller of the residence provide the purchaser and the county clerk and recorder’s office for the county where the new residence is located with information regarding the insurance coverage for the property subject to the sale. House Appropriations Committee  CAR wants to Amend. C3 Opposes. Co Chamber Opposes.
  • HB 1091 – Fire-Hardened Building Materials in Real Property. The bill generally prohibits covenants and other restrictions that disallow the installation, use, or maintenance of fire-hardened building materials in residential real property, including in common interest communities.  Senate Local Government & Housing Committee for a hearing Feb 20th. CAR Supports
  • HB 1098 – Cause Required for Eviction of Residential Tenant – Concerning protections for residential tenants, and, in connection therewith, requiring cause for the eviction of a residential tenant. House Second Reading Special Order – Passed with Amendments – Committee, Floor.  CAR wants to amend. C3 wants to amend.
  • HB 1107 – Judicial Review of Local Land Use Decision. The bill requires a court to award reasonable attorney fees to a prevailing defendant in an action for judicial review of a local land use decision, except for an action brought by the land use applicant before the governmental entity. Transportation, Housing & Local Government for a hearing on February 20th. C3 Supports. CAR is monitoring.
  • HB 1175 – Local Governments Rights to Property for Affordable Housing. Concerning a local government right of first refusal or offer to purchase qualifying multifamily property for the purpose of providing long-term affordable housing or mixed-income development. Assigned House Transportation, Housing & Local Government Committee for a hearing Feb 20th. C3 wants to amend.

Broadband

  • SB 091 – Rights-of-Way Permits for Broadband Deployment – The bill creates an alternative method for entities that want to access rights-of-way for the deployment of broadband, whereby the department may issue a permit and impose a permit fee for access to rights-of-way for the deployment of broadband. Senate Transportation & Energy Committee. C3 Supports.

Legal Reform

  • SB-062 – Prohibit Attorney Fees on Personal Injury Interest. Senate Judiciary Committee hearing Feb 12th. CO Chamber Supports. C3 Supports.