As previously reported on this blog a Colorado Court of Appeals decision in 2015 allowed a developer/declarant to retain a right to consent to amendments to a common interest community’s declaration that require arbitration of construction defect claims.

The Colorado Supreme Court has now weighed in on the case involved, which is known as Vallagio at Inverness Residential Condo. Ass’n v. Metro. Homes, Inc., affirming the decision of the Court of Appeals.

Vallagio involved a residential development in which the declaration, created pursuant to the Colorado Common Interest Ownership Act (“CCIOA”) included certain dispute resolution provisions, including an arbitration requirement.  The dispute resolution provisions also stated that those provisions could “not ever be amended without the written consent of the Declarant,” who was the developer of the project. Continue Reading Colorado Condominium Construction Defect Issue: Colorado Supreme Court Affirms the Right of Declarants for Condominium and Other Common Interest Communities to Require Binding Arbitration of Disputes

Late last month, we told you about an important bill introduced in the Colorado General Assembly.  The bill had passed in the Colorado House of Representatives, and was headed for the Senate.  It was drafted to address the sharp decrease in condominium construction in this state, caused by developers’ fear of construction defect claims brought by condominium homeowners’ associations.  A description of the bill can be found in our original client alert here.

An update:  The bill has become law.  The Senate passed HB 1279 on May 4, and sent it to the Governor’s desk for signature.  Governor Hickenlooper signed it Tuesday, May 23, amid celebration from legislators and reform advocates.  As we noted last month, the bill “is not a complete ‘fix’ for the condominium construction issues, if such a fix even exists,” but it is widely considered a good first step.

In our April Client Alert, we reported on a possible breakthrough in construction defect reform legislation, which had passed the House and was moving to the Senate.  The Colorado Senate has now unanimously approved House Bill 1279, and sent it to Governor Hickenlooper, who is expected to sign the bill.  HB 1279 was one of six bills introduced this year in an effort to address the dearth of condominium construction in Denver.  It is the only bill to reach the Governor’s desk, and the first bill in four years of effort to make substantive changes to the existing construction defect law in Colorado.

Last week, the negotiations for a construction defects reform package fell apart, making it extremely unlikely that Colorado would see any state action on the issue this year – the fourth time such attempts at legislation have failed. Immediately after that failure, Senate Bill 213 was introduced, which would establish a ten-person study group appointed by State leaders. Continue Reading Mejor que Nada? Construction-Defect “Study Group” May Get Legislative Sanction

On Thursday, May 05, 2016 negotiations for a construction-defects reform package broke down, making it unlikely that a bill will even get introduced this year. While Denver and several other Colorado communities have passed their own ordinances, without a state-wide legislative change, the shortage of affordable housing in Denver and elsewhere in Colorado is likely to continue, as many developers are unwilling to risk such ordinances being overturned. Continue Reading Fourth Time Not the Charm: 2016 Construction Defect Legislation Reform Unlikely