Construction Defects Reform and How it could have helped

Posted by Metropolitan Group on Tuesday, April 28th, 2015 at 8:34am.

Unfortunately the SB-177 Construction Defects reform bill has died in the Colorado Legislature. You can read more about how that happened and whom is responsible here: http://goo.gl/KEctd4. 

This was a statement by CAR just last week:

"Colorado communities are facing serious housing challenges. Rents are skyrocketing--rising faster than San Francisco and New York--making the Front Range one of the most expensive places in the country to live. The dream of homeownership for many Coloradans may soon be unreachable. That's because a defect in state law has virtually halted the construction of affordable and attainable housing across Colorado. The condos that historically provided the most practical options for first-time homebuyers, as well as seniors looking to right-size their housing, are not being built because of the threat of time-consuming litigation. Lawmakers can fix this defect in Colorado law by supporting Senate Bill 177. The consumer protections in Senate Bill 177 will create a quick and fair resolution for homeowners who need repairs while protecting the rights of all homeowners in a community.Currently, when an HOA is tied up in litigation, individual homeowners are unable to sell or refinance because banks will not finance properties with such encumbrances. It is important that construction defects are remedied, and homeowners have recourse, but it needs to happen in a way that will not restrict other homeowners' property rights, nor deter development of a key property type in the state of Colorado." - Colorado Association of Realtors 4/22/15

I'd urge you to take a good read through and decide for yourself whether this bill would have done any harm whatsoever to the community. Those of you looking to purchase condos in the Denver area already have experience the pain of limited inventory, and as of now there seems to be little relief ahead. 

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