House Bill 1279, which contains several provisions aimed at lowering the frequency of construction defects lawsuits brought against developers, was passed by the Senate on a unanimous vote without debate.
Sen. Jack Tate, R-Centennial, said HB 1279 does not change the laws around construction defects litigation, but rather the way those laws are accessed by requiring developments to acquire the informed consent of the majority of homeowners before seeking a legal remedy for faulty construction work.
As part of the consent process, which will be limited to 90 days under HB 1279, owners must be advised on the potential impacts of seeking litigation, such as a drop in property value, increased difficulty in refinancing and the potential that they may have to pay out of pocket for legal costs in the event of a court ruling against them.
Developers will be given the chance to address owners during the 90-day window to offer potential solutions to avoid lawsuits.
The bill represents a statewide effort on an issue that multiple municipalities, including Durango, have tried to tackle with little success.
The lack of success has been attributed to uncertainty over whether local law or state law would take precedence over new construction.
But HB 1279 is not seen as a silver bullet, just one in a series of bills that were introduced this session to chip away at the depressed condo market, which amounts to 2 percent of new construction.
The bill heads to the governor, who is expected to sign it into law.
lperkins@durangoherald.com