Last year was a good year for builders regarding construction defect legislation, according to Scott Moberg of Joyce Homes, but it wasn’t “enough to really swing the pendulum.”
President and co-founder of Ascent Builders Jason Brown concurred, adding, “I think we have a long way to go to have real reform that’s going to make those of us who do that kind of work sleep better at night.”
•In June 2017, the Colorado Supreme Court ruled in Vallagio at Inverness Residential Con. Ass’n v. Metro. Homes Inc. against the Vallagio homeowners association, which had tried to circumvent bylaws that required construction disputes to be settled in arbitration, rather than through litigation.
•Colorado Senate Bill 17-156 would have made arbitration mandatory for resolving defect disputes, but was postponed indefinitely by the Colorado House Committee on State, Veterans & Military Affairs.
•Colorado House Bill 17-1279, which was passed in May 2017, requires HOAs to get consent from a majority of homeowners before bringing a suit against a builder for a perceived defect, and to give builders an opportunity to make their case and offer a remedy to homeowners.
However, the bill only requires consent from a majority of homeowners who respond to the association’s notice of a potential suit, not the majority of all homeowners in an association.
(Photo: Scott Moberg by Povy Kendal Atchison)
Danielle Andrus was previously the managing editor for Colorado Builder, and is currently Editor for the Journal of Financial Planning.