A Bill for an Act
Page 1, Line 101Concerning housing.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
For construction of middle market housing, section 3 of the bill requires a person filing a construction defect action against an architect or engineer to file with the complaint an affidavit of a third-party licensed professional indicating the negligence or other action, error, or omission of the construction professional. Section 3 also establishes a rebuttable presumption that a property does not have a construction defect when a state agency or local government has issued a certificate of occupancy for the property.
Section 4:
- Establishes a claimant's duty to mitigate an alleged construction defect and specifies how a claimant may satisfy this duty and the consequences to a claimant that fails to satisfy this duty;
- Requires that a construction professional must send or deliver to the claimant an offer to settle the claim or a written response that identifies the standards that apply to the claim and explains why the defect does not require repair; and
- Requires a construction professional who is the defendant in a construction defects action to submit specified information to the claimant.
Section 5 updates the statute of limitations for construction defect claims to 10 years unless the construction professional provided the consumer with a warranty that meets the requirements of the bill, in which case the statute of limitations is 6 years. Section 6 tolls the statute of limitations or repose during a claimant's mitigation of an alleged construction defect claim brought for the construction of middle market housing.
Section 7 allows a construction professional that meets specified requirements to use certain affirmative defenses in construction claims brought against the construction professional for the construction of middle market housing.
Current law requires the executive board of a unit owners' association (executive board) to obtain approval from a majority of owners before initiating a construction defect claim on behalf of the owners. Section 8 increases the approval amount to 65%. Section 8 also requires an executive board that is successful in a construction defect claim to first use monetary damages received as a result of the claim to repair the construction defect.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Short title - legislative declaration. (1) The short title of this act is the "Colorado American Dream Act".
Page 2, Line 3(2) The general assembly finds that:
Page 2, Line 4(a) Homeownership is a cornerstone of economic stability, but for
Page 2, Line 5many Coloradans, particularly first-time homebuyers, it has become
Page 2, Line 6increasingly out of reach. Surveys show that while 90% of renters aspire
Page 3, Line 1to own a home, more than half believe it is unattainable. This concern is
Page 3, Line 2personal for many, with over 4 out of 5 parents expressing concerns about
Page 3, Line 3whether their children will be able to afford to live in Colorado. Many
Page 3, Line 4Coloradans agree that increasing the variety and availability of housing
Page 3, Line 5options is crucial, as people want the ability to find and choose housing
Page 3, Line 6that fits their needs, whether it's through more accessible price points or housing types.
Page 3, Line 7(b) Millennials, the largest group of homebuyers in Colorado at
Page 3, Line 838% of the market, are facing increasing challenges, as the median age of
Page 3, Line 9first-time homebuyers has risen from 35 to 38 in just the past year. These
Page 3, Line 10gaps are just a few of many that highlight the urgent need for policies that
Page 3, Line 11facilitate affordable and attainable homeownership, particularly through the construction of entry-level homes.
Page 3, Line 12(c) Condominiums and townhomes have often served as
Page 3, Line 13affordable starter home options, providing the first step on the
Page 3, Line 14homeownership ladder for many Coloradans. Despite the clear need for
Page 3, Line 15these homes, however, condominium development in Colorado has
Page 3, Line 16drastically decreased. Before 2009, there were 1.25 new apartments for
Page 3, Line 17every one condominium. This has shifted radically to 14 new apartments
Page 3, Line 18for every condominium in recent years. The decline in condominium
Page 3, Line 19construction coincides with a housing shortfall of at least 100,000 homes
Page 3, Line 20in the state, further worsening the availability of affordable options for first-time buyers.
Page 3, Line 21(d) Current construction litigation laws are often cited as a
Page 3, Line 22contributing factor to the high cost of construction and a deterrent for
Page 3, Line 23developers to pursue condominium projects. At the same time,
Page 3, Line 24homeowners have limited up-front assurances of high-quality
Page 4, Line 1construction in new homes. It is critical that policies seek to support homeowners' rights while spurring development in a key housing market.
Page 4, Line 2(e) Without addressing these challenges, Colorado will continue
Page 4, Line 3to experience a shortage of entry-level homes for its first-time
Page 4, Line 4homebuyers and struggle to meet the needs of Coloradans. It is imperative
Page 4, Line 5that the state creates policies that encourage the entire housing ecosystem
Page 4, Line 6to work together to create more attainable housing options for Coloradans.
Page 4, Line 7(f) This act is intended to:
Page 4, Line 8(I) Promote the construction of affordable homes so that
Page 4, Line 9homeownership becomes a more attainable goal for a larger portion of the population;
Page 4, Line 10(II) Expand prospective homeowners' access to high-quality, well-constructed homes;
Page 4, Line 11(III) Ensure continued protections for homeowners when defects in their homes exist;
Page 4, Line 12(IV) Reform construction litigation to reduce the excessive costs associated with entry-level home development;
Page 4, Line 13(V) Strengthen Colorado's housing market by expanding opportunities for first-time homebuyers; and
Page 4, Line 14(VI) Ensure that future generations of Coloradans are able to
Page 4, Line 15access the American dream of homeownership, which is integral to long-term financial security and generational wealth-building; and
Page 4, Line 16(g) This act is rationally related to the legitimate state interest of increasing middle market hosing in Colorado.
Page 4, Line 17SECTION 2. In Colorado Revised Statutes, 13-20-802.5, add
Page 4, Line 18(4.5), (5.5) and (6) as follows:
Page 5, Line 113-20-802.5. Definitions. As used in this part 8, unless the context otherwise requires:
Page 5, Line 2(4.5) "Multifamily construction incentive program" or "program" means the program created in section 13-20-803.3 (1).
Page 5, Line 3(5.5) "Program claim" means all actions for damages,
Page 5, Line 4indemnity, or contribution brought against a construction
Page 5, Line 5professional to assert a claim, counterclaim, cross-claim, or
Page 5, Line 6third-party claim for damages or loss to, or the loss of use of,
Page 5, Line 7real or personal property for which the builder is a participant
Page 5, Line 8in the program or for personal injury caused by a defect in the
Page 5, Line 9design or construction of an improvement to real property for which the builder is a participant in the program.
Page 5, Line 10(6) "Third-party inspection" means a program of
Page 5, Line 11inspections of a residential housing unit performed over the
Page 5, Line 12course of construction on the unit and designed to assist the
Page 5, Line 13construction professional performing the construction on the
Page 5, Line 14unit in identifying and rectifying any instances in which the
Page 5, Line 15work being performed by the construction professional deviates
Page 5, Line 16from applicable building codes or construction standards. The
Page 5, Line 17construction professional who signs the building permit
Page 5, Line 18application shall certify in writing filed with the building
Page 5, Line 19department that the third-party inspector was qualified and the
Page 5, Line 20inspection complies with the following requirements for any component, system, or improvement alleged to be defective:
Page 5, Line 21(a) The inspection was performed by either a licensed
Page 5, Line 22construction professional or a building code inspector,
Page 5, Line 23electrical inspector, energy conservation code inspector, fire
Page 6, Line 1code inspector, or mechanical code inspector, if such inspector
Page 6, Line 2provides evidence of successful completion of the most recent
Page 6, Line 3versionof the commercial building inspector examination by the International Code Council or its successor organization:
Page 6, Line 4(I) Who has expertise designing, constructing, or
Page 6, Line 5inspecting the component, system, or improvement being inspected;
Page 6, Line 6(II) Who is an independent third party not otherwise
Page 6, Line 7employed by or affiliated with the construction professional
Page 6, Line 8who was involved in the development, design, or construction of the component, system, or improvement;
Page 6, Line 9(III) Who is responsible for performing the inspection duties with a reasonable degree of care; and
Page 6, Line 10(IV) Who is not designated as a nonparty at fault pursuant to section 13-21-111.5 (3)(b); and
Page 6, Line 11(b) The inspection includes, for each component, system,
Page 6, Line 12or improvement, a signed certification that, for each component, system, or improvement,verifies that:
Page 6, Line 13(I) The component, system, or improvement was included
Page 6, Line 14in approved construction documents and specifications,
Page 6, Line 15including addendums issued during construction, under the valid seal of an architect or engineer licensed in Colorado;
Page 6, Line 16(II) (A) Prior to inspection by the building department, the
Page 6, Line 17component, system, or improvement was subject to a field
Page 6, Line 18inspection and approval by the third-party inspector who
Page 6, Line 19certifies that, at the time of inspection, the component, system,
Page 6, Line 20or improvement was sufficiently accessible to determine
Page 7, Line 1compliance with and did comply with applicable manufacturer's
Page 7, Line 2instructions or recommendations, approved construction
Page 7, Line 3documents and specifications, including addendums issued during construction, and the applicable building codes.
Page 7, Line 4(B) If the field inspection does not include every location
Page 7, Line 5where the component, system, or improvement is constructed,
Page 7, Line 6the signed certification must include the permit number; the
Page 7, Line 7date of inspection; the type of inspection; the contractor's name
Page 7, Line 8and license number; the street address of the job location; the
Page 7, Line 9name, address, and telephone number of the inspector who
Page 7, Line 10performed the inspection; and a statement that the inspector
Page 7, Line 11inspected a sufficient number of locations to conclude with a
Page 7, Line 12reasonable degree of certainty that every location of the
Page 7, Line 13component, system, or improvement complies with the applicable
Page 7, Line 14manufacturer's instructions or recommendations, approved
Page 7, Line 15construction documents and specifications, including
Page 7, Line 16addendums issued during construction, and the applicable building codes.
Page 7, Line 17(III) The construction professional successfully repaired
Page 7, Line 18or resolved any instance of noncompliant design or
Page 7, Line 19construction identified during an inspection and that the
Page 7, Line 20component, system, or improvement complies with the
Page 7, Line 21applicable manufacturer's instructions or recommendations and
Page 7, Line 22approved construction documents and specifications, including addendums issued during construction; and
Page 7, Line 23(c) The inspection is not an inspection performed by or on
Page 7, Line 24behalf of a governmental authority having jurisdiction over
Page 8, Line 1the residential housing unit as a condition of any permitting or the issuance of a certificate of occupancy.
Page 8, Line 2SECTION 3. In Colorado Revised Statutes, add 13-20-803.3 as follows:
Page 8, Line 313-20-803.3. Multifamily construction incentive program -
Page 8, Line 4created - construction defect claims against architects and engineers
Page 8, Line 5- statute of limitations - affirmative defenses. (1) The multifamily
Page 8, Line 6construction incentive program is created. On and after
Page 8, Line 7January 1, 2026, a builder of multifamily, attached housing of two or more units may participate in the program by:
Page 8, Line 8(a) Providing a warranty that covers any defect and damage at no cost to the homeowner for a minimum period of:
Page 8, Line 9(I) One year for workmanship and materials;
Page 8, Line 10(II) Two years for plumbing, electrical, and materials; and
Page 8, Line 11(III) Six years for major structural components;
(b) Having a third-party inspection performed; and
Page 8, Line 12(c) Recording a notice of election to participate in the
Page 8, Line 13multifamily construction incentive program in the chain of title
Page 8, Line 14in the real property records for the project intended to be
Page 8, Line 15covered before the unit is offered for sale.After recording a
Page 8, Line 16notice of election to participate, a builder may withdraw from
Page 8, Line 17the program only before the issuance of the last certificate of occupancy for the project.
Page 8, Line 18(2) (a) Except as provided in subsection (3) of this section,
Page 8, Line 19a person must file with a complaint a certificate of review in
Page 8, Line 20compliance with section 13-20-602 for a construction defect action that is:
Page 9, Line 1(I) Against a construction professional who is an architect or engineer; and
Page 9, Line 2(II) For a program claim.
Page 9, Line 3(b) The certificate of review filed in accordance with
Page 9, Line 4subsection(2)(a)of this section must, based on facts known to the party filing the certificate of review:
Page 9, Line 5(I) Set forth the architect's or engineer's negligence,
Page 9, Line 6including any act or omission in providing advice, exercising
Page 9, Line 7judgment, giving an opinion, or exercising a similar professional skill; and
Page 9, Line 8(II) Declare that the individual consulted can
Page 9, Line 9demonstrate by competent evidence that, as a result of training,
Page 9, Line 10education, knowledge, and experience, the consultant is
Page 9, Line 11competent to express an opinion as to the negligence, including an act or omission, alleged.
Page 9, Line 12(c) If a claimant fails to file the certificate of review
Page 9, Line 13required in this subsection (2), the court shall dismiss the
Page 9, Line 14complaint against the defendant unless the claimant shows good cause for the failure.
Page 9, Line 15(3) A claimant is not required to comply with the
Page 9, Line 16certificate of review requirements of subsection (2) of this section if:
Page 9, Line 17(a) A claim is for construction in which a governmental
Page 9, Line 18entity contracted with a single entity to provide both design
Page 9, Line 19and construction services for the construction, rehabilitation,
Page 9, Line 20alteration, or repair of a facility, a building or an associated structure, a civil works project, or a highway project; or
Page 10, Line 1(b) The period of limitation or reposecould reasonably
Page 10, Line 2expire within ten days after the date of filing and, because of
Page 10, Line 3the time constraint, the claimant has alleged that a certificate
Page 10, Line 4of review by a third-party architect or engineer could not be
Page 10, Line 5prepared. A claimant that does not file a certificate of review
Page 10, Line 6under this section shall supplement the complaint with a
Page 10, Line 7certificate of review within twenty-eight days after the filing
Page 10, Line 8of the complaint; except that a court may, on motion and for
Page 10, Line 9good cause, grant a claimant additional time to file the certificate of review.
Page 10, Line 10(4) A defendant that designates an architect or engineer
Page 10, Line 11as a nonparty at fault in accordance with section 13-21-111.5
Page 10, Line 12(3)(b) must file a subsequent certificate of review that complies
Page 10, Line 13with subsection (2) of this section and section 13-20-602. The
Page 10, Line 14defendant shall file a certificate of review at least forty-five
Page 10, Line 15days prior to any trial or proceeding on the claim. If the
Page 10, Line 16defendant fails to file the certificate of review as required in
Page 10, Line 17this subsection (4), a court shall not consider the negligence or fault of the nonparty.
Page 10, Line 18(5) Subsections (2) to (4) of this section do not:
(a) Extend the applicable period of limitation or repose; or
Page 10, Line 19(b) Apply to a suit or action for the payment of fees arising out of the provision of professional services.
Page 10, Line 20(6) A personal shall not assert a program claim unless
Page 10, Line 21the claim hasresulted in one or more of the following types of
Page 10, Line 22actual damage:
Page 11, Line 1(a) Damage that substantially affects the functionality
Page 11, Line 2of a system or the safety of real or personal property, other
Page 11, Line 3than a condition that has not caused any substantial physical change;
Page 11, Line 4(b) Actual loss of the use of real or personal property;
(c) Actual bodily injury or wrongful death;
Page 11, Line 5(d) An unreasonable reduction in the capability of, or an
Page 11, Line 6actual failure of, a building component to perform an intended function or purpose; or
Page 11, Line 7(e) An unreasonable risk of bodily injury or death to, or
Page 11, Line 8a threat to the life, health, or safety of, the occupants of the residential property.
Page 11, Line 10(7) (a) (I) If the defendant is a construction professional
Page 11, Line 11who is not an architect or engineer and who has provided the
Page 11, Line 12claimant a written warranty for the residence that complies
Page 11, Line 13with subsection (1)(a) of this section, and if the claimant
Page 11, Line 14discovered or should have discovered the alleged defect or
Page 11, Line 15damage within the longest applicable warranty period, the
Page 11, Line 16claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 11, Line 17(II) If the defendant is a construction professional who is
Page 11, Line 18an architect or engineer, and the construction professional
Page 11, Line 19performed in a manner consistent with the degree of skill and
Page 11, Line 20care ordinarily exercised by members of the same profession
Page 11, Line 21currently practicing under the same or similar circumstances,
Page 11, Line 22the claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 12, Line 1(b) If a claim involves a defect or damage that is covered
Page 12, Line 2by the warranty described in subsection(7)(a)of this section,
Page 12, Line 3the claimant shall pursue allreasonableremedies available
Page 12, Line 4under the warranty process before bringing an action for
Page 12, Line 5damages.The statute of limitations and repose shall be tolled
Page 12, Line 6from the date the claimant first pursued a remedy available
Page 12, Line 7under the warranty for no more than one year or until the completion of the warranty process, whichever is longer.
Page 12, Line 8(c) Section 13-80-104 (2) and (3) applies to the limitation of claims in this subsection (7).
Page 12, Line 9(8) (a) For program claims, a construction professional
Page 12, Line 10who makes areasonable offer pursuant tosubsection (9) of this
Page 12, Line 11sectionmay be immune, in whole or in part, from an obligation,
Page 12, Line 12damage, loss, or liability under this part 8 related to or arising
Page 12, Line 13out of the construction defect, but only with respect to the
Page 12, Line 14portion of the claimant's damages, if any, the construction
Page 12, Line 15professional can demonstrate by a preponderance of the
Page 12, Line 16evidence were proximately caused or increased by an
Page 12, Line 17affirmative defense specified in subsections (8)(b) and (8)(c) of this section and not by the construction defect.
Page 12, Line 18(b) A construction professional is not liablefor a damage
Page 12, Line 19or defect to the extent the professional can prove, as an affirmative defense, that the damage or defect was caused:
Page 12, Line 20(I) By a weather condition, earthquake, or other natural
Page 12, Line 21phenomenon in excess of the design criteria expressed by the
Page 12, Line 22applicable building codes, regulations, and ordinances in effect at the time of original construction;
Page 13, Line 1(II) By a human-caused event, such as war, terrorism, or vandalism;
Page 13, Line 2(III) By a homeowner's unreasonable failure to timely mitigate damages as required in section 13-20-803.5 (1);
Page 13, Line 3(IV) By the homeowner or the homeowner's agent,
Page 13, Line 4employee, or construction professional by virtue of their
Page 13, Line 5failure to follow the builder's or manufacturer's maintenance
Page 13, Line 6recommendations or to do commonly accepted homeowner
Page 13, Line 7maintenance obligations. In order to rely upon this defense as
Page 13, Line 8it relates to a construction professional's recommended
Page 13, Line 9maintenance schedule, the construction professional must show
Page 13, Line 10that the homeowner had written notice of these maintenance
Page 13, Line 11schedules and recommendations and that the maintenance
Page 13, Line 12recommendations and schedules were reasonable at the time
Page 13, Line 13they were issued and that the damage or defect did not directly
Page 13, Line 14prevent the homeowner from performing the recommended maintenance.
Page 13, Line 15(V) After sale or transfer of ownership to the claimant, by:
Page 13, Line 16(A) The homeowner's or homeowner's agent's alterations;
(B) Ordinary wear and tear;
Page 13, Line 17(C) Misuse of the structure or component;
(D) Abuse of the structure or component;
Page 13, Line 18(E) Neglect of the structure or component; or
Page 13, Line 19(F) The use of the structure or component for something
Page 13, Line 20other than the structure's or component's intended purpose.
Page 14, Line 1(c) A construction professional may assert an affirmative defense to the extent that:
Page 14, Line 2(I) The damage was caused by a particular violation
Page 14, Line 3covered by a valid release obtained by the construction
Page 14, Line 4professional, if the release is enforceable against the claimant,
Page 14, Line 5was executed with knowledge of the particular violation, and does not violate section 13-20-806 (7); or
Page 14, Line 6(II) The construction professional's repair completed
Page 14, Line 7pursuant to section 13-20-803.5 (3) was successful in correcting
Page 14, Line 8the particular violation and any damage resulting from the violation of the applicable standard.
Page 14, Line 9(d) The affirmative defenses set forth in this subsection (8)
Page 14, Line 10are in addition to, and shall not limit, impair, replace, or
Page 14, Line 11otherwise affect, any other defense available to a construction professional under statute or common law.
Page 14, Line 12 (9) (a) For program claims,a construction professional
Page 14, Line 13and the insurer, as defined in section 10-1-102 (13), providing
Page 14, Line 14coverage related to the claimshall send or deliver to the
Page 14, Line 15claimant, by certified mail, return receipt requested, or by personal service:
Page 14, Line 16(I) An offer to settle the claim by:
(A) Payment of a sum certain; or
Page 14, Line 17(B) Agreeing to remedy the claimed defect described in the notice of claim;
Page 14, Line 18(II) A written response that:
Page 14, Line 19(A) Identifies the standards that apply to the claimed
Page 14, Line 20defect's construction or performance; and
Page 15, Line 1(B) Explains why the claimed defect does not require repair; or
Page 15, Line 2(III) A written response that explains the construction
Page 15, Line 3professional's scope of work and why the claimed defect is not
Page 15, Line 4within the work and responsibility of the construction professional.
Page 15, Line 5(b) A written offer to remedy a construction defect must
Page 15, Line 6include a report of the scope of the inspection, the findings and
Page 15, Line 7results of the inspection, a description of the additional
Page 15, Line 8construction work necessary to remedy the defect described in
Page 15, Line 9the notice of claim and all damage to the improvement to real
Page 15, Line 10property caused by the defect, and a timetable for the completion of the remedial construction work.
Page 15, Line 11(c) The construction professional shall provide an offer
Page 15, Line 12pursuant to subsection (9)(a)(I) of this section within ninety days
Page 15, Line 13after the deadline to inspect the property and claimed defect
Page 15, Line 14pursuant to section 13-20-803.5 or a written response pursuant
Page 15, Line 15to subsection (9)(a)(II) or (9)(a)(III) of this section within thirty
Page 15, Line 16days after the deadline to inspect the property and claimed
Page 15, Line 17defect pursuant to section 13-20-803.5. Notwithstanding any
Page 15, Line 18provision in a contract or any requirement in the governing
Page 15, Line 19documents, if a construction professional requests an extension
Page 15, Line 20to provide an offer pursuant to subsection (9)(a)(I) of this
Page 15, Line 21section and the claimant does not agree to the requested
Page 15, Line 22extension, the parties shall designate a mutually agreeable
Page 15, Line 23third party in writing to determine whether the requested
Page 15, Line 24extension is reasonable. Notwithstanding any other provision
Page 16, Line 1in this section, the total time to provide an offer must not
Page 16, Line 2exceed two hundred ten days after the date of the notice of
Page 16, Line 3claim by the construction professional providing an offer pursuant to subsection (9)(a)(I) of this section.
Page 16, Line 4(d) If a claimant unreasonably rejects a reasonable
Page 16, Line 5written offer of settlement made pursuant to this subsection (9)
Page 16, Line 6and subsequently commences an action against the
Page 16, Line 7construction professional, the court may award attorney fees and costs to the construction professional.
Page 16, Line 8(e) If a construction professional fails to make a
Page 16, Line 9reasonable written offer of settlement pursuant to this
Page 16, Line 10subsection (9), the limitations on damages and defenses to
Page 16, Line 11liability provided in subsections (2), (5), (6), (7), and (8) of this
Page 16, Line 12section do not apply, and the court may award attorney fees and costs to the claimant.
Page 16, Line 13(f) (I) A construction professional's written offer of
Page 16, Line 14settlement is reasonable, and a claimant's rejection of the offer
Page 16, Line 15is unreasonable, if the claimant recovers a final judgment in an
Page 16, Line 16amount that is less than the amount offered or the reasonable value of the repair offered by the construction professional.
Page 16, Line 17(II) A construction professional's written offer of
Page 16, Line 18settlement is unreasonable, and a claimant's rejection of the
Page 16, Line 19offer is reasonable, if the claimant recovers a final judgment in
Page 16, Line 20an amount that exceeds the amount offered or the reasonable value of the repair offered by the construction professional.
Page 16, Line 21(10) (a) Within thirty days after the rejection of an offer
Page 16, Line 22made pursuant to subsection (9) of this section, a claimant shall
Page 17, Line 1provide a construction professional with a written proposal to
Page 17, Line 2have the construction defect repaired at the construction professional's expense or to settle the claim.
Page 17, Line 3(b) If the construction professional does not accept the
Page 17, Line 4proposal provided by the claimant pursuant to subsection (10)(a)
Page 17, Line 5of this section in writing within fifteen days after delivery of the proposal, the proposal is deemed to have been rejected.
Page 17, Line 6(c) If the construction professional accepts the proposal
Page 17, Line 7provided by the claimant pursuant to subsection (10)(a) of this
Page 17, Line 8section, the construction professional shall pay the claimant's
Page 17, Line 9reasonable attorney fees and costs incurred in investigating the defect and proposing the repair.
Page 17, Line 10(11) Nothing in this section:
Page 17, Line 11(a) Affects the "Colorado Governmental Immunity Act", article 10 of title 24, or section 13-20-806 (7); or
Page 17, Line 12(b) Prohibits, limits, or impairs a contractual claim or expands the definition of "action" in section 13-20-802.5 (1).
Page 17, Line 13SECTION 4. In Colorado Revised Statutes, 13-20-803.5, amend (1), (3), (7), and (12); and add(3.5), (3.7), and (13) as follows:
Page 17, Line 1413-20-803.5. Notice of claim process - duty to mitigate.
Page 17, Line 15(1) (a) No later than seventy-five days before filing an action against a
Page 17, Line 16construction professional, or no later than ninety days before filing the
Page 17, Line 17action in the case of a commercial property, a claimant shall send or
Page 17, Line 18deliver a written notice of claim to the construction professional by certified mail, return receipt requested, or by personal service.
Page 17, Line 19(b) Before filing a claim pursuant to this subsection (1)
Page 17, Line 20for program claims,a claimant shall mitigate the damage
Page 18, Line 1caused by the alleged construction defect. A claimant satisfies
Page 18, Line 2the duty to mitigate by taking reasonable action to prevent
Page 18, Line 3further damage from the construction defect. A claimant must
Page 18, Line 4certify in the complaint that the claimant has satisfied the duty to mitigate.
Page 18, Line 5(c) If the claimant and construction professional dispute
Page 18, Line 6whether the claimant has satisfied the duty to mitigate
Page 18, Line 7described in subsection (1)(b) of this section, the claimant may
Page 18, Line 8proceed with the action but does not recover any damages that
Page 18, Line 9the construction professional proves were caused by the claimant's unreasonable failure to mitigate.
Page 18, Line 10(d) A claimant does not breach the duty to mitigate if the
Page 18, Line 11cost to mitigate is unreasonable under the circumstances or was beyond the claimant's financial ability to perform.
Page 18, Line 13(3) Except as provided in section 13-20-803.3 (9), within thirty
Page 18, Line 14days
followingPage 18, Line 15pursuant to subsection (2) of this section, or within forty-five days
Page 18, Line 16
followingPage 18, Line 17a commercial property, a construction professional may send or deliver
Page 18, Line 18to the claimant, by certified mail, return receipt requested, or personal
Page 18, Line 19service, an offer to settle the claim by payment of a sum certain or by
Page 18, Line 20agreeing to remedy the claimed defect described in the notice of claim. A
Page 18, Line 21written offer to remedy the construction defect shall include a report of
Page 18, Line 22the scope of the inspection, the findings and results of the inspection, a
Page 18, Line 23description of the additional construction work necessary to remedy the
Page 18, Line 24defect described in the notice of claim and all damage to the improvement
Page 19, Line 1to real property caused by the defect, and a timetable for the completion of the remedial construction work.
Page 19, Line 2(3.5) (a) By the earlier of when a construction
Page 19, Line 3professional, other than an architect or engineer, offers to
Page 19, Line 4settle a claim or sixty days after a construction professional
Page 19, Line 5receives actual notice of claim, the construction professional
Page 19, Line 6shall provide the claimant with the following documents and
Page 19, Line 7information, to the extent the documents and information are
Page 19, Line 8within the construction professional's possession, custody, or control:
Page 19, Line 9(I) Copies of all plans, specifications, and soil reports related to the claim;
Page 19, Line 10(II) Maintenance and preventive maintenance recommendations related to the claim;
Page 19, Line 11(III) The name, last-known address, and scope of work of
Page 19, Line 12each construction professional who contracted to perform
Page 19, Line 13work or provide services and did perform work or provide services related to the claim;
Page 19, Line 14(IV) All documents related to the third-party inspection
Page 19, Line 15of the property and the name and last-known address of the inspector who performed the third-party inspection; and
Page 19, Line 16(V) Copies of each insurance policy purchased by the
Page 19, Line 17construction professional and related to the claim through the date of the notice of claim and from the earlier start date of:
Page 19, Line 18(A) The date the construction of the alleged defect was substantially completed; or
Page 19, Line 19(B) The date the construction professional substantially completed work on the alleged defect.
Page 20, Line 1(b) A construction professional may charge reasonable
Page 20, Line 2copying costs for the documents described in subsections(3.5)(a)(I), (3.5)(a)(II), (3.5)(a)(IV), and (3.5)(a)(V)of this section.
Page 20, Line 3(c) Failure to provide the identifying information
Page 20, Line 4required in subsection (3.5)(a)(III) of this section by the
Page 20, Line 5applicable deadline for designating a nonparty at fault bars the
Page 20, Line 6construction professional from designating the unidentified
Page 20, Line 7construction professional as a nonparty at fault under section
Page 20, Line 813-21-111.5 (3)(b) in a subsequent action. If the construction
Page 20, Line 9professional fails to provide the information required in
Page 20, Line 10subsection (3.5)(a)(I) of this section, the claimant need not
Page 20, Line 11comply with the certificate of review requirement in section 13-20-803.3 (2).
Page 20, Line 12(3.7) (a) By the earlier of when a construction
Page 20, Line 13professional who is an architect or engineer offers to settle a
Page 20, Line 14claim or sixty days after a construction professional receives
Page 20, Line 15actual notice of claim, the architect or engineer shall provide
Page 20, Line 16the claimant with the following documents and information, to
Page 20, Line 17the extent the documents and information are within the architect's or engineer's possession, custody, or control:
Page 20, Line 18(I) Copies of all approved construction documents and
Page 20, Line 19specifications, including addendums issued during construction, prepared by the architect, engineer, or consultants;
Page 20, Line 20(II) The name, last-known address, and scope of work of
Page 20, Line 21each architect or engineer who performed work or provided
Page 20, Line 22services as a consultant related to the claim and on the claimant's property; and
Page 21, Line 1(III) Copies of each insurance policy purchased by the
Page 21, Line 2architect or engineer and related to the claim through the date of the notice of claim and from the earlier start date of:
Page 21, Line 3(A) The date the construction of the alleged defect was substantially completed; or
Page 21, Line 4(B) The date the architects and engineers substantially completed work related to the alleged defect.
Page 21, Line 5(b) An architect or engineer may charge reasonable
Page 21, Line 6copying costs for the documents described in subsection (3.7)(a) of this section.
Page 21, Line 8(7) If an offer by a construction professional is made and accepted
Page 21, Line 9or if a proposal made by a claimant is accepted, and if thereafter the
Page 21, Line 10construction professional does not comply with
itsPage 21, Line 11or settle a claim for a construction defect or with the claimant's
Page 21, Line 12proposal, the claimant may file an action against the construction
Page 21, Line 13professional for claims arising out of the defect or damage described in the notice of claim without further notice.
Page 21, Line 14(12) Except as provided in this section and section
Page 21, Line 1513-20-806, a claimant shall not recover more than actual damages in an action.
Page 21, Line 17(13) An insurer, as defined in section 10-1-102(13),shall
Page 21, Line 18notcancel, deny, or reduce coverage based on any claim for
Page 21, Line 19benefits covered by an existingliability insurance policy issued
Page 21, Line 20to a construction professional based on the construction
Page 22, Line 1professional making an offer to repair or settle a construction
Page 22, Line 2defect claim pursuant to this section. Any settlement or repair agreement that affects coverage is subject to insurer approval.
Page 22, Line 3SECTION 5. In Colorado Revised Statutes, amend 13-20-805 as follows:
Page 22, Line 413-20-805. Tolling of statutes of limitation. (1) If a notice of
Page 22, Line 5claim is sent to a construction professional in accordance with section
Page 22, Line 613-20-803.5 within the time prescribed for the filing of an action under
Page 22, Line 7
anyPage 22, Line 8limitations or repose is tolled until sixty days after the completion of the notice of claim process described in section 13-20-803.5.
Page 22, Line 9(2) If an alleged construction defect is being mitigated
Page 22, Line 10pursuant to subsection 13-20-803.5, the statute of limitations or
Page 22, Line 11repose is tolled for the duration of the mitigation; except that
Page 22, Line 12the maximum length of tolling under this subsection (2) cannot exceed one year.
Page 22, Line 13(3) The tolling of the statute of limitations or repose
Page 22, Line 14under subsection (1) or (2) of this section does not preclude the
Page 22, Line 15tolling of the statute of limitations or repose under the other subsection of this section.
Page 22, Line 17SECTION 6. In Colorado Revised Statutes, 38-33.3-303.5,
Page 22, Line 18amend (1)(d)(I)(A) and (1)(d)(III) introductory portion; and add (5) as follows:
Page 22, Line 1938-33.3-303.5. Construction defect actions - disclosure -
Page 22, Line 20approval by unit owners - definitions - exemptions. (1) (d) Approval
Page 22, Line 21by unit owners - procedures. (I) (A) Notwithstanding any provision of
Page 23, Line 1law or any requirement in the governing documents, the executive board
Page 23, Line 2
maytheonlyPage 23, Line 3authorized within the voting period by owners of units to which
aPage 23, Line 4
majorityPage 23, Line 5allocated.
SuchPage 23, Line 6with a construction defect action if the alleged construction defect
Page 23, Line 7pertains to a facility that is intended and used for nonresidential purposes
Page 23, Line 8and if the cost to repair the alleged defect does not exceed fifty thousand
Page 23, Line 9dollars.
SuchPage 23, Line 10with a construction defect action when the association is the contracting party for the performance of labor or purchase of services or materials.
Page 23, Line 11(III) Vote count - exclusions. For purposes of calculating the
Page 23, Line 12required
majorityPage 23, Line 13(5) An executive board that is successful under a
Page 23, Line 14construction defect claim or settlement shall first use net
Page 23, Line 15monetary damages ornetproceeds received pursuant to the claim to repair the construction defect.
Page 23, Line 16SECTION 7. In Colorado Revised Statutes, 29-32-105, amend (2)(a) as follows:
Page 23, Line 1729-32-105. Affordable housing commitments - local
Page 23, Line 18governments - tribal governments - three-year commitment cycle -
Page 23, Line 19expedited development approval process - eligibility for assistance
Page 23, Line 20from the fund. (2) (a) In order to receive financial assistance under this
Page 23, Line 21
articlePage 23, Line 22government, municipality, a city and county, or the unincorporated area
Page 23, Line 23of a county to be eligible for funding, the tribal government or local
Page 24, Line 1government, other than a local affordable housing authority, must
Page 24, Line 2establish processes to enable it to provide a final decision on any
Page 24, Line 3application for a special permit, variance, or other development permit,
Page 24, Line 4including a for-sale multifamily condominium project and
Page 24, Line 5excluding subdivisions, of a development project, for which fifty percent
Page 24, Line 6or more of the residential units in the development constitute affordable
Page 24, Line 7housing not more than ninety calendar days after submission of a complete application, referred to herein as a "fast-track approval process.
Page 24, Line 8SECTION 8. Act subject to petition - effective date -
Page 24, Line 9applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 24, Line 10the expiration of the ninety-day period after final adjournment of the
Page 24, Line 11general assembly; except that, if a referendum petition is filed pursuant
Page 24, Line 12to section 1 (3) of article V of the state constitution against this act or an
Page 24, Line 13item, section, or part of this act within such period, then the act, item,
Page 24, Line 14section, or part will not take effect unless approved by the people at the
Page 24, Line 15general election to be held in November 2026 and, in such case, will take
Page 24, Line 16effect on the date of the official declaration of the vote thereon by the governor.
Page 24, Line 17(2) This act applies to construction defect claims brought on or after the applicable effective date of this act.