Three Key Pieces of Colorado Construction Legislation to Keep an Eye on in 2024
Colorado's construction industry is undergoing significant changes with the introduction of three new bills: HB24-1230, HB24-1014, and SB24-106. These pieces of legislation address various aspects of construction defect actions, alternative dispute resolution, and the role of unit owners' associations in legal matters. Let's delve into each bill to understand their implications.
HB24-1230: Protections for Real Property Owners
HB24-1230, which is "A Bill For An Act Concerning Protections for Property Owners With Respect To Improvements To Real Property," aims to provide for additional protections for homeowners facing construction defects in Colorado. The key points of the bill are:
Construction professionals who attempt to include waivers or limitations of homeowners' rights under the Construction Defect Action Reform Act or the Colorado Consumer Protection Act are void are are a violation of Colorado's Consumer Protection Act.
In addition to actual damages, a successful claimant is entitled to prejudgment interest on their claim at a rate of 6% from the date any remedial repairs are finished to the date the property is sold, and 8% thereafter.
Section 2 increases the statute of repose for construction defect claims from 6 to 10 years.
Section 3 voids waivers of class actions in a real estate contract with a construction professional.
Section 5 prohibits a homeowners' association's governing documents from altering any requirements of the Construction Defect Action Reform Act.
HB24-1014: Deceptive Trade Practice Significant Impact Standard
Under current law, to prove a private cause of action under the CCPA, a plaintiff must show: (1) that the defendant engaged in an unfair or deceptive trade practice; (2) that the challenged practice occurred in the course of the defendant’s business, vocation or occupation; (3) that it significantly impacts the public as actual or potential consumers of the defendant’s goods, services, or property; (4) that the plaintiff suffered injury in fact to a legally protected interest; and (5) that the challenged practice caused the plaintiff’s injury. Rhino Linings USA, 62 P.3d at 146-47 (citing Hall v. Walter, 969 P.2d 224 (Colo. 1998)).
HB24-1014 eliminates the Colorado Consumer Protection Act's requirement that a claimant must separately prove that a deceptive trade practice "significantly impacts the public." Instead, the bill establishes that evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact to the public.
SB24-106: Right to Remedy Construction Defects
SB24-106 addresses the role of unit owners' associations in legal matters concerning construction defects. Highlights include:
Right to Remedy: Sections 3 and 6 create a right for a construction professional to remedy a claim made against the construction professional by doing remedial work or hiring another construction professional to perform the work
Fiduciary Duty of Homeowners' Associations: When an association makes a claim or takes legal action on behalf of unit owners, it must act in the best interest of each individual owner. This underscores the importance of representing the collective interests of the community.
Conditions for Association Involvement: The bill specifies that for a construction defect matter to involve a unit owners' association, it must concern real estate owned by the association or all its members. Prior to bringing a claim, a homeowners' association must also obtain the written consent of at least two-thirds of the unit owners.
In conclusion, these three bills represent a significant overhaul in Colorado construction defect law. Stay tuned for further developments as these bills progress through the legislative process. If you have any questions or concerns, please contact a Colorado construction defect lawyer today. Additionally, you can contact your local state legislator to voice your opinions on these bills.
The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.