Source: John Aguilar at The Denver Post
Colorado legislature unanimously supported a bill that, for the most part, makes it harder for homeowner associations to sue condo developers. In short, the bill will require a majority vote among homeowners before the HOA can sue. Of course, issues like leaky windows or slumping foundations will always be worthy of seeking redress without the majority vote.
Passing this bill (which is expected in May) could be a game-changer for the housing industry. The cards are stacked against builders with the current builder defect law. This reform will give builders some assurance that they won’t end up in the depths of expensive litigation if they develop condos. This is important to know because if builders are given a little bit more protection, then they’ll develop more condos. More condos being built means more options for buyers, which could help stabilize condo prices in the city.
As with anything political, there is no single bill that will solve every problem. But, this could be a good move forward. They said it best in the article: “it should raise the cloud and allow the sun to shine down and thaw what has been a frozen market.”