The Colorado House of Representatives defeated a bill that would have made it harder for condominium owners to sue builders over construction defects.
The bill had passed the state Senate. It would have reformed the state’s construction defects law by requiring a majority of homeowners in a multifamily building, rather than a majority of the homeowner association board, to decide whether to sue.
It also would have granted a right to repair to builders willing to resolve problems in an effort to avoid lawsuits.
The bill’s supporters say the high insurance costs associated with building in a state with such a law are preventing more developers from starting multifamily projects in Colorado.
Builders have also complained that the state’s existing law makes it too easy for homeowners to sue them over property defects.
Condos accounted for 3.1% of Colorado's housing starts in 2014, down from a peak of 22.9% in 2007.
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