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.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds that:
Page 2, Line 3(a) Homeownership is a cornerstone of economic stability, but for
Page 2, Line 4many Coloradans, particularly first-time homebuyers, it has become
Page 2, Line 5increasingly out of reach. Surveys show that while 90% of renters aspire
Page 2, Line 6to own a home, more than half believe it is unattainable. This concern is
Page 3, Line 1personal for many, with over 4 out of 5 parents expressing concerns about
Page 3, Line 2whether their children will be able to afford to live in Colorado. Many
Page 3, Line 3Coloradans agree that increasing the variety and availability of housing
Page 3, Line 4options is crucial, as people want the ability to find and choose housing
Page 3, Line 5that fits their needs, whether it's through more accessible price points or housing types.
Page 3, Line 6(b) Millennials, the largest group of homebuyers in Colorado at
Page 3, Line 738% of the market, are facing increasing challenges, as the median age of
Page 3, Line 8first-time homebuyers has risen from 35 to 38 in just the past year. These
Page 3, Line 9gaps are just a few of many that highlight the urgent need for policies that
Page 3, Line 10facilitate affordable and attainable homeownership, particularly through the construction of entry-level homes.
Page 3, Line 11(c) Condominiums and townhomes have often served as
Page 3, Line 12affordable starter home options, providing the first step on the
Page 3, Line 13homeownership ladder for many Coloradans. Despite the clear need for
Page 3, Line 14these homes, however, condominium development in Colorado has
Page 3, Line 15drastically decreased. Before 2009, there were 1.25 new apartments for
Page 3, Line 16every one condominium. This has shifted radically to 14 new apartments
Page 3, Line 17for every condominium in recent years. The decline in condominium
Page 3, Line 18construction coincides with a housing shortfall of at least 100,000 homes
Page 3, Line 19in the state, further worsening the availability of affordable options for first-time buyers.
Page 3, Line 20(d) Current construction litigation laws are often cited as a
Page 3, Line 21contributing factor to the high cost of construction and a deterrent for
Page 3, Line 22developers to pursue condominium projects. At the same time,
Page 3, Line 23homeowners have limited up-front assurances of high-quality
Page 3, Line 24construction in new homes and, when issues occur, must use litigation
Page 4, Line 1laws to seek remedy. 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) 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) "Middle market housing" means multifamily, attached housing of two or more units where each unit:
Page 5, Line 3(a) Is for sale at or below the maximum loan limits in the
Page 5, Line 4county in which the unit is constructed, as the loan limits are
Page 5, Line 5determined by the federal housing administration in the federal department of housing and urban development; and
Page 5, Line 6(b) Has had a third-party inspection.
Page 5, Line 7(6) "Third-party inspection" means a component, system, or
Page 5, Line 8improvement inspection, including on-site monitoring of work in
Page 5, Line 9progress or multiple inspections throughout the construction
Page 5, Line 10and an inspection upon completion of the construction, that
Page 5, Line 11complies with the following requirements for any component, system, or improvement alleged to be defective:
Page 5, Line 12(a) The inspection was performed by an inspector:
Page 5, Line 13(I) Who has expertise designing the component, system, or improvement being inspected;
Page 5, Line 14(II) Who is an independent third party not employed by or
Page 5, Line 15affiliated with the construction professional who was involved
Page 5, Line 16in the development, design, or construction of the component, system, or improvement; and
Page 5, Line 17(III) Who is responsible for performing the inspection duties with a reasonable degree of care; and
Page 5, Line 18(b) The inspection includes, for each component, system,
Page 5, Line 19or improvement alleged to be defective, a signed and stamped
Page 5, Line 20certification that, for each component, system, or improvement alleged to be defective, verifies that:
Page 6, Line 1(I) The component, system, or improvement was detailed in
Page 6, Line 2approved construction plans under the valid seal of an architect or engineer licensed in Colorado;
Page 6, Line 3(II) (A) Prior to inspection by the building department, the
Page 6, Line 4component, system, or improvement was subject to a field
Page 6, Line 5inspection and approval by the third-party inspector who
Page 6, Line 6certifies that, at the time of inspection, the component, system,
Page 6, Line 7or improvement was sufficiently accessible to determine
Page 6, Line 8compliance with and did comply with applicable manufacturer's
Page 6, Line 9instructions or recommendations, stamped project plans and specifications, and the applicable building code.
Page 6, Line 10(B) If the field inspection does not include every location
Page 6, Line 11where the component, system, or improvement is constructed,
Page 6, Line 12the signed and stamped certification must include the permit
Page 6, Line 13number; the date of inspection; the type of inspection; the
Page 6, Line 14contractor's name and license number; the street address of the
Page 6, Line 15job location; the name, address, and telephone number of the
Page 6, Line 16architect or engineer who performed the inspection; and a
Page 6, Line 17statement that the inspector inspected a sufficient number of
Page 6, Line 18locations to conclude with a reasonable degree of certainty
Page 6, Line 19that every location of the component, system, or improvement
Page 6, Line 20complies with stamped project plans and specifications and the applicable building code.
Page 6, Line 21(III) Any instance of noncompliant design or construction
Page 6, Line 22identified during an inspection has been resolved and that the
Page 6, Line 23component, system, or improvement complies with applicable standards.
Page 7, Line 1SECTION 3. In Colorado Revised Statutes, add 13-20-803.3 and 13-20-803.4 as follows:
Page 7, Line 213-20-803.3. Construction defect claims against architects and
Page 7, Line 3engineers - middle market housing. (1) (a) Except as provided in
Page 7, Line 4subsection (2) of this section, a person must file with a complaint
Page 7, Line 5a certificate of review in compliance with section 13-20-602 for a construction defect action that is:
Page 7, Line 6(I) Against a construction professional who is an architect or engineer; and
Page 7, Line 7(II) For a defect in the construction of middle market housing.
Page 7, Line 8(b) The certificate of review filed in accordance with
Page 7, Line 9subsection (1)(a) of this section must, based on facts known to the party filing the certificate of review:
Page 7, Line 10(I) Set forth the architect's or engineer's negligence,
Page 7, Line 11including any act or omission in providing advice, exercising
Page 7, Line 12judgment, giving an opinion, or exercising a similar professional skill; and
Page 7, Line 13(II) Declare that the individual consulted can
Page 7, Line 14demonstrate by competent evidence that, as a result of training,
Page 7, Line 15education, knowledge, and experience, the consultant is
Page 7, Line 16competent to express an opinion as to the negligence, including an act or omission, alleged.
Page 7, Line 17(c) If a claimant fails to file the certificate of review
Page 7, Line 18required in this subsection (1), the court shall dismiss the
Page 7, Line 19complaint against the defendant unless the claimant shows good cause for the failure.
Page 8, Line 1(2) A claimant is not required to comply with the certificate of review requirements of this section if:
Page 8, Line 2(a) A claim is for construction in which a governmental
Page 8, Line 3entity contracted with a single entity to provide both design
Page 8, Line 4and construction services for the construction, rehabilitation,
Page 8, Line 5alteration, or repair of a facility, a building or an associated structure, a civil works project, or a highway project; or
Page 8, Line 6(b) The period of limitation would expire within ten days
Page 8, Line 7after the date of filing and, because of the time constraint, the
Page 8, Line 8claimant has alleged that a certificate of review by a
Page 8, Line 9third-party architect or engineer could not be prepared. A
Page 8, Line 10claimant that does not file a certificate of review under this
Page 8, Line 11section shall supplement the complaint with a certificate of
Page 8, Line 12review within twenty-eight days after the filing of the
Page 8, Line 13complaint; except that a court may, on motion and for good
Page 8, Line 14cause, grant a claimant additional time to file the certificate of review.
Page 8, Line 15(3) A defendant that designates an architect or engineer
Page 8, Line 16as a nonparty at fault in accordance with section 13-21-111.5
Page 8, Line 17(3)(b) must file with the designation a certificate of review that
Page 8, Line 18complies with subsection (1) of this section and section 13-20-602.
Page 8, Line 19If the defendant fails to file the certificate of review as
Page 8, Line 20required in this subsection (3), a court shall not consider the negligence or fault of the nonparty.
Page 8, Line 21(4) This section does not:
Page 8, Line 22(a) Extend the applicable period of limitation or repose; or
Page 9, Line 1(b) Apply to a suit or action for the payment of fees arising out of the provision of professional services.
Page 9, Line 213-20-803.4. Rebuttable presumptions in construction defect
Page 9, Line 3claims in middle market housing. (1) In a legal action subject to
Page 9, Line 4the notice of claim process in section 13-20-803.5, the issuance of
Page 9, Line 5a final certificate of occupancy by a state or local government
Page 9, Line 6creates a rebuttable presumption that no actionable
Page 9, Line 7construction defect exists for the real property for which the
Page 9, Line 8local government issued the final certificate of occupancy. A
Page 9, Line 9claimant may overcome this presumption by proving, by a
Page 9, Line 10preponderance of the evidence, that an alleged defect on which the claimant's claim is based has resulted in:
Page 9, Line 11(a) Actual damage to real or personal property;
(b) Actual loss of the use of real or personal property;
Page 9, Line 12(c) Actual bodily injury or wrongful death;
Page 9, Line 13(d) An unreasonable reduction in the capability of, or an
Page 9, Line 14actual failure of, a building component to perform an intended function or purpose; or
Page 9, Line 15(e) An unreasonable risk of bodily injury or death to, or
Page 9, Line 16a threat to the life, health, or safety of, the occupants of the residential property.
Page 9, Line 17(2) Nothing in this section:
Page 9, Line 18(a) Affects the "Colorado Governmental Immunity Act", article 10 of title 24; or
Page 9, Line 19(b) Prohibits, limits, or impairs a contractual claim,
Page 9, Line 20counterclaim, cross-claim, or third-party claim that is not for
Page 9, Line 21damages or loss to, or the loss of use of, real or personal
Page 10, Line 1property or personal injury caused by a defect in the design or construction of an improvement to real property.
Page 10, Line 2SECTION 4. In Colorado Revised Statutes, 13-20-803.5, amend (1), (3), (7), and (12); and add (3.5) and (4.5) as follows:
Page 10, Line 313-20-803.5. Notice of claim process - duty to mitigate.
Page 10, Line 4(1) (a) No later than seventy-five days before filing an action against a
Page 10, Line 5construction professional, or no later than ninety days before filing the
Page 10, Line 6action in the case of a commercial property, a claimant shall send or
Page 10, Line 7deliver a written notice of claim to the construction professional by certified mail, return receipt requested, or by personal service.
Page 10, Line 8(b) Before filing a claim pursuant to this subsection (1)
Page 10, Line 9for the construction of middle market housing, a claimant shall
Page 10, Line 10mitigate the damage caused by the alleged construction defect.
Page 10, Line 11A claimant satisfies the duty to mitigate by taking reasonable
Page 10, Line 12action to prevent further damage from the construction defect.
Page 10, Line 13A claimant must certify in the complaint that the claimant has satisfied the duty to mitigate.
Page 10, Line 14(c) If the claimant and construction professional dispute
Page 10, Line 15whether the claimant has satisfied the duty to mitigate
Page 10, Line 16described in subsection (1)(b) of this section, the claimant may
Page 10, Line 17proceed with the action but does not recover any damages that
Page 10, Line 18the construction professional proves were caused by the claimant's unreasonable failure to mitigate.
Page 10, Line 19(d) A claimant does not breach the duty to mitigate if the
Page 10, Line 20cost to mitigate is unreasonable under the circumstances or was beyond the claimant's financial ability to perform.
Page 10, Line 21(3) (a) Within thirty days following the completion of the
Page 11, Line 1inspection process conducted pursuant to subsection (2) of this section,
Page 11, Line 2or within forty-five days following the completion of the inspection
Page 11, Line 3process in the case of a commercial property, a construction professional
Page 11, Line 4
mayPage 11, Line 5(I) An offer to settle the claim by:
(A) Payment of a sum certain;
or byPage 11, Line 6(B) Agreeing to remedy the claimed defect described in the notice of claim; or
Page 11, Line 7(II) A written response that:
Page 11, Line 8(A) Identifies the standards that apply to the claimed defect's construction or performance; and
Page 11, Line 9(B) Explains why the claimed defect does not require repair.
Page 11, Line 10(b) A written offer to remedy
theshallPage 11, Line 11include a report of the scope of the inspection, the findings and results of
Page 11, Line 12the inspection, a description of the additional construction work necessary
Page 11, Line 13to remedy the defect described in the notice of claim and all damage to
Page 11, Line 14the improvement to real property caused by the defect, and a timetable for the completion of the remedial construction work.
Page 11, Line 15(3.5) (a) By the earlier of when a construction
Page 11, Line 16professional offers to settle a claim and of sixty days after a
Page 11, Line 17construction professional receives actual notice of claim, the construction professional shall provide the claimant with:
Page 11, Line 18(I) Copies of all plans, specifications, and soil reports related to the claimant's property;
Page 11, Line 19(II) Maintenance and preventive maintenance
Page 12, Line 1recommendations related to the claim and for the claimant's property;
Page 12, Line 2(III) The name, last-known address, and scope of work of
Page 12, Line 3each construction professional who performed work or
Page 12, Line 4provided services related to the claim and on the claimant's property; and
Page 12, Line 5(IV) Copies of each insurance policy held by the
Page 12, Line 6construction professional through the date of the notice of claim and from the earlier start date of:
Page 12, Line 7(A) The date the construction of the alleged defect was substantially completed; or
Page 12, Line 8(B) The date the construction professional substantially completed work on the alleged defect.
Page 12, Line 9(b) A construction professional may charge reasonable
Page 12, Line 10copying costs for the documents described in subsections(3.5)(a)(I), (3.5)(a)(II), and (3.5)(a)(IV) of this section.
Page 12, Line 11(c) Failure to provide the identifying information
Page 12, Line 12required in subsection (3.5)(a)(III) of this section bars the
Page 12, Line 13construction professional from designating the unidentified
Page 12, Line 14construction professional as a nonparty at fault under section
Page 12, Line 1513-21-111.5 (3)(b) in a subsequent action. If the construction
Page 12, Line 16professional fails to provide the information required in
Page 12, Line 17subsection (3.5)(a)(I) of this section, the claimant need not
Page 12, Line 18comply with the certificate of review requirement in section 13-20-803.3 (1).
Page 12, Line 19(4.5) (a) Within thirty days after the rejection of an offer
Page 12, Line 20made pursuant to subsection (3) of this section, a claimant shall
Page 13, Line 1provide a construction professional with a written proposal to
Page 13, Line 2have the construction defect repaired at the construction professional's expense or to settle the claim.
Page 13, Line 3(b) If the construction professional does not accept the
Page 13, Line 4proposal in writing within fifteen days after delivery of the proposal, the proposal is deemed to have been rejected.
Page 13, Line 5(c) If the construction professional accepts the
Page 13, Line 6claimant's proposal, the construction professional shall pay the
Page 13, Line 7claimant's attorney fees and costs incurred in investigating the defect and proposing the repair.
Page 13, Line 8(7) If an offer by a construction professional is made and accepted
Page 13, Line 9or if a proposal made by a claimant is accepted, and if thereafter the
Page 13, Line 10construction professional does not comply with
itsPage 13, Line 11or settle a claim for a construction defect or with the claimant's
Page 13, Line 12proposal, the claimant may file an action against the construction
Page 13, Line 13professional for claims arising out of the defect or damage described in the notice of claim without further notice.
Page 13, Line 14(12) (a) Except as provided in this section and section
Page 13, Line 1513-20-806, a claimant shall not recover more than actual damages in an action.
Page 13, Line 16(b) If a claimant unreasonably rejects a reasonable
Page 13, Line 17written offer of settlement made pursuant to subsection (3) of
Page 13, Line 18this section and subsequently commences an action against the
Page 13, Line 19construction professional, the court may award attorney fees and costs to the construction professional.
Page 13, Line 20(c) If a construction professional fails to make a
Page 13, Line 21reasonable written offer of settlement pursuant to subsection
Page 14, Line 1(3) of this section, the limitations on damages and defenses to
Page 14, Line 2liability provided in sections 13-20-804 and 13-20-806 do not
Page 14, Line 3apply and the court may award attorney fees and costs to the claimant.
Page 14, Line 4SECTION 5. In Colorado Revised Statutes, add 13-20-804.5 as follows:
Page 14, Line 513-20-804.5. Statute of limitations - middle market housing
Page 14, Line 6construction claims. (1) (a) For middle market housing sold on or
Page 14, Line 7after January 1, 2026, and except as provided in subsection (1)(b)
Page 14, Line 8of this section, a claimant must bring an action for damages for
Page 14, Line 9a claim based on the construction of middle market housing and
Page 14, Line 10filed pursuant to this part 8 not later than ten years after the
Page 14, Line 11substantial completion of the improvement in an action arising
Page 14, Line 12out of a defective or an unsafe condition of the real property or a deficiency in the construction or repair of the improvement.
Page 14, Line 13(b) If the defendant is a construction professional that
Page 14, Line 14has provided the claimant a written warranty for the residence
Page 14, Line 15that complies with subsection (2) of this section, and if the
Page 14, Line 16claimant discovered or should have discovered the alleged
Page 14, Line 17defect or damage within the longest applicable warranty
Page 14, Line 18period, the claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 14, Line 19(2) To apply subsection (1)(b) of this section to an action, a written warranty must provide a minimum period of:
Page 14, Line 20(a) One year for workmanship and materials;
Page 14, Line 21(b) Two years for plumbing, electrical, or heating,
Page 14, Line 22ventilation, and air conditioning delivery systems; and
(c) Six years for major structural components.
Page 15, Line 1SECTION 6. In Colorado Revised Statutes, amend 13-20-805 as follows:
Page 15, Line 213-20-805. Tolling of statutes of limitation. (1) If a notice of
Page 15, Line 3claim is sent to a construction professional in accordance with section
Page 15, Line 413-20-803.5 within the time prescribed for the filing of an action under
Page 15, Line 5
anyPage 15, Line 6limitations or repose is tolled until sixty days after the completion of the notice of claim process described in section 13-20-803.5.
Page 15, Line 7(2) If an alleged construction defect is being mitigated
Page 15, Line 8pursuant to subsection 13-20-803.5, the statute of limitations or repose is tolled for the duration of the mitigation.
Page 15, Line 9(3) The tolling of the statute of limitations under
Page 15, Line 10subsection (1) or (2) of this section does not preclude the tolling
Page 15, Line 11of the statute of limitations or repose under the other subsection of this section.
Page 15, Line 12SECTION 7. In Colorado Revised Statutes, add 13-20-809 as follows:
Page 15, Line 1313-20-809. Affirmative defenses - middle market housing -
Page 15, Line 14requirements. (1) A construction professional who complies with
Page 15, Line 15this section is immune, in whole or in part, from an obligation,
Page 15, Line 16damage, loss, or liability under this part 8 related to or arising
Page 15, Line 17out of the construction of middle market housing if the
Page 15, Line 18construction professional can demonstrate by a preponderance
Page 15, Line 19of the evidence an affirmative defense specified in subsection (2) of this section.
Page 15, Line 20(2) (a) A construction professional is not liable for a
Page 16, Line 1damage or defect to the extent the professional can prove, as an affirmative defense, that the damage or defect was caused:
Page 16, Line 2(I) By a weather condition, earthquake, or manmade
Page 16, Line 3event, such as war, terrorism, or vandalism, in excess of the
Page 16, Line 4design criteria expressed by the applicable building codes,
Page 16, Line 5regulations, and ordinances in effect at the time of original construction;
Page 16, Line 6(II) By a homeowner's unreasonable failure to timely mitigate damages;
Page 16, Line 7(III) By the homeowner or the homeowner's agent,
Page 16, Line 8employee, or construction professional by virtue of their
Page 16, Line 9failure to follow the builder's or manufacturer's
Page 16, Line 10recommendations or to do commonly accepted homeowner
Page 16, Line 11maintenance obligations. In order to rely upon this defense as
Page 16, Line 12it relates to a construction professional's recommended
Page 16, Line 13maintenance schedule, the construction professional must show
Page 16, Line 14that the homeowner had written notice of these schedules and
Page 16, Line 15recommendations and that the recommendations and schedules were reasonable at the time they were issued.
Page 16, Line 16(IV) By:
Page 16, Line 17(A) The homeowner's, the homeowner's agent's, or an independent third party's alterations;
Page 16, Line 18(B) Ordinary wear and tear;
(C) Misuse of the structure;
Page 16, Line 19(D) Abuse of the structure;
(E) Neglect of the structure; or
Page 16, Line 20(F) The use of the structure for something other than the structure's intended purpose.
Page 17, Line 1(b) A construction professional may assert an affirmative defense to the extent that:
Page 17, Line 2(I) A particular violation is covered by a valid release obtained by a construction professional; or
Page 17, Line 3(II) A construction professional's or a third party's repair
Page 17, Line 4was successful in correcting the particular violation of the applicable standard.
Page 17, Line 5(3) Applicable affirmative defenses are preserved for any cause of action to which this section does not apply.
Page 17, Line 6SECTION 8. In Colorado Revised Statutes, 38-33.3-303.5,
Page 17, Line 7amend (1)(d)(I)(A) and (1)(d)(III) introductory portion; and add (5) as follows:
Page 17, Line 838-33.3-303.5. Construction defect actions - disclosure -
Page 17, Line 9approval by unit owners - definitions - exemptions. (1) (d) Approval
Page 17, Line 10by unit owners - procedures. (I) (A) Notwithstanding any provision of
Page 17, Line 11law or any requirement in the governing documents, the executive board
Page 17, Line 12
maytheonlyPage 17, Line 13authorized within the voting period by owners of units to which
aPage 17, Line 14
majorityPage 17, Line 15allocated.
SuchPage 17, Line 16with a construction defect action if the alleged construction defect
Page 17, Line 17pertains to a facility that is intended and used for nonresidential purposes
Page 17, Line 18and if the cost to repair the alleged defect does not exceed fifty thousand
Page 17, Line 19dollars.
SuchPage 17, Line 20with a construction defect action when the association is the contracting
Page 17, Line 21party for the performance of labor or purchase of services or materials.
Page 18, Line 1(III) Vote count - exclusions. For purposes of calculating the
Page 18, Line 2required
majorityPage 18, Line 3(5) An executive board that is successful under a
Page 18, Line 4construction defect claim shall first use monetary damages
Page 18, Line 5received pursuant to the claim to repair the construction defect.
Page 18, Line 6SECTION 9. Act subject to petition - effective date -
Page 18, Line 7applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 18, Line 8the expiration of the ninety-day period after final adjournment of the
Page 18, Line 9general assembly; except that, if a referendum petition is filed pursuant
Page 18, Line 10to section 1 (3) of article V of the state constitution against this act or an
Page 18, Line 11item, section, or part of this act within such period, then the act, item,
Page 18, Line 12section, or part will not take effect unless approved by the people at the
Page 18, Line 13general election to be held in November 2026 and, in such case, will take
Page 18, Line 14effect on the date of the official declaration of the vote thereon by the governor.
Page 18, Line 15(2) This act applies to construction defect claims brought on or after the applicable effective date of this act.