Colorado homeowners associations plan a full-court press against any last-minute attempt to change the state’s construction-defects law — if and when it comes.
“We will make a whole lot of noise if that bill gets introduced. They are going to need to hear you roar,” Community Associations Institute Colorado Legislative Action Committee chairwoman Molly Foley-Healy told a gathering of community managers Tuesday in Denver.
After months of anticipation, Sen. Jessie Ulibarri, D-Westminster, finally was expected to introduce a construction-defects bill last week.
But Democratic leaders, concerned it might be viewed as weakening an important consumer protection, reportedly are stalling the bill’s arrival as time runs out on the session, which ends May 7.
Community managers, joined by construction-defects attorneys, argue that diluting the existing law will leave communities and homeowners liable for repairing shoddy work.
Rather than trying to shift costs, Foley-Healy told the crowd that builders just need to answer one question: “Why aren’t you building quality construction?”
The Colorado Metro Mayors Caucus is leading a growing coalition that claims the law has made litigation too easy and choked off condo construction, which is only one-tenth the share of new units in Denver that it is nationally.
Economic development and housing affordability groups have joined forces with construction and real estate associations under the Homeownership Opportunity Alliance, a name that irks the HOA managers.
If local governments want to help, they should provide builders with the resources to implement stronger quality controls, Foley-Healy said.
Ulibarri has said he wants to tackle the issue in small steps. But Foley-Healey said an expected provision in the bill to require a majority vote of homeowners to approve defects litigation is unworkable. Currently, it takes only two homeowners to initiate a lawsuit.
In a large community, such as Highlands Ranch, getting half the votes would be a nearly impossible hurdle to clear, she said.
An expected provision for mandatory arbitration also would put consumers at a disadvantage to a jury trail, the CAI argues.
Even if Ulibarri’s bill doesn’t make it this session, HOA managers can’t breathe easy — especially if Republicans gain control of the Colorado Senate, community association attorney Candyce Cavanagh warned.
“This issue is not going away,” she said. “It will be back.”
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or twitter.com/aldosvaldi
