The impact of construction defect lawsuits on condominium development in Colorado has been a hot topic recently. Colorado law treats residential construction differently than non-residential construction. This increases the risk of construction defect claims on residential projects, particularly when there is a homeowners’ association.
Now one Colorado municipality is taking action on this issue. A recently proposed ordinance in the City of Lakewood would provide many of the protections the General Assembly has been unable to enact. Ordinance O-2014-21, as currently drafted, gives builders (the ordinance defines “builders” to include contractors, developers, and original sellers) the right to inspect alleged defects and make an offer to repair. If the builder elects to repair, the HOA or other owner may not prohibit the builder from making repairs. The repairs would be under warranty for two years following completion. The ordinance would also nullify any amendment to a condominium declaration that removes an arbitration provision, and it would require HOAs to obtain informed consent from at least 51% of its members before filing a construction defect action. Read more