Legislative Update

CAR has launched a Call to Action on Senate Bill 177 “HOA Construction Defect Lawsuit Approval Timelines” aka construction defects. This is the same bill CAR supported last year and the LPC voted to support this year’s bill with little discussion. SB-177 was introduced on Feb. 10th and assigned to the Business, Labor and Technology Committee but hasn’t been scheduled for any hearings yet.

The bill makes three important changes to existing State statute. 1) A majority of unit owners in a condominium must vote to file a class-action lawsuit, rather than just a majority of HOA members, as is required now; 2) The HOA board must inform all unit owners about anticipated litigation before proceeding with it, including its potential cost and impact on their ability to refinance or sell their condos and 3) Any provision that’s included in sale contracts requiring disputes to be settled by alternative conflict resolution (such as arbitration or mediation) rather than proceed as a lawsuit cannot be removed by the board without the consent of the developers of the property.

The Governor will likely sign the bill if it survives the General Assembly but the Speaker of the House, Dickie Lee Hullinghorst, is not a fan. She would rather talk about broader measures that would make homes more affordable to the middle class, according to the Denver Post. Even if the bill makes it through the Senate, Hullinghorst stop it in the House unless there’s enough pressure from her own party that the Speaker can’t say no. Please help by participating in the call to action today:


SB 140 “Regulation of Home Inspectors” – CAR position – Support. In a 5-4 vote,
the Senate Business, Labor and Technology committee voted to postpone indefinitely a bill that would’ve required home inspectors to be licensed. The Senators heard testimony in favor of the regulation from home inspection associations that certify practitioners, from REALTORS who work with them, and DORA (Division of Regulatory Agencies), which recommended regulation. Nonetheless, Committee Chair David Balmer was unconvinced that inspectors need regulation and said the market would eliminate bad actors. CAR Chair David Barber remained positive after the defeat, saying only that more education was needed to convince the legislature that home inspectors should be licensed.

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