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. 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) 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(6) "Third-party inspection" means a program of
Page 5, Line 4inspections of a residential housing unit performed over the
Page 5, Line 5course of construction on the unit and designed to assist the
Page 5, Line 6construction professional performing the construction on the
Page 5, Line 7unit in identifying and rectifying any instances in which the
Page 5, Line 8work being performed by the construction professional deviates
Page 5, Line 9from applicable building codes or construction standards. The
Page 5, Line 10construction professional who signs the building permit
Page 5, Line 11application shall certify in writing filed with the building
Page 5, Line 12department that the third-party inspector was qualified and the
Page 5, Line 13inspection complies with the following requirements for any component, system, or improvement alleged to be defective:
Page 5, Line 14(a) The inspection was performed by either a licensed
Page 5, Line 15construction professional or a building code inspector,
Page 5, Line 16electrical inspector, energy conservation code inspector, fire
Page 5, Line 17code inspector, or mechanical code inspector, if such inspector
Page 5, Line 18provides evidence of successful completion of the most recent
Page 5, Line 19verison of the commercial building inspector examination by the International Code Council or its successor organization:
Page 5, Line 20(I) Who has expertise designing, constructing, or
Page 5, Line 21inspecting the component, system, or improvement being inspected;
Page 5, Line 22(II) Who is an independent third party not otherwise
Page 6, Line 1employed by or affiliated with the construction professional
Page 6, Line 2who was involved in the development, design, or construction of the component, system, or improvement;
Page 6, Line 3(III) Who is responsible for performing the inspection duties with a reasonable degree of care; and
Page 6, Line 4(IV) Who is not designated as a nonparty at fault pursuant to section 13-21-111.5 (3)(b); and
Page 6, Line 5(b) The inspection includes, for each component, system,
Page 6, Line 6or improvement, a signed certification that, for each component, system, or improvement,verifies that:
Page 6, Line 7(I) The component, system, or improvement was included
Page 6, Line 8in approved construction documents and specifications,
Page 6, Line 9including addendums issued during construction, under the valid seal of an architect or engineer licensed in Colorado;
Page 6, Line 10(II) (A) Prior to inspection by the building department, the
Page 6, Line 11component, system, or improvement was subject to a field
Page 6, Line 12inspection and approval by the third-party inspector who
Page 6, Line 13certifies that, at the time of inspection, the component, system,
Page 6, Line 14or improvement was sufficiently accessible to determine
Page 6, Line 15compliance with and did comply with applicable manufacturer's
Page 6, Line 16instructions or recommendations, approved construction
Page 6, Line 17documents and specifications, including addendums issued during construction, and the applicable building codes.
Page 6, Line 18(B) If the field inspection does not include every location
Page 6, Line 19where the component, system, or improvement is constructed,
Page 6, Line 20the signed certification must include the permit number; the
Page 6, Line 21date of inspection; the type of inspection; the contractor's name
Page 7, Line 1and license number; the street address of the job location; the
Page 7, Line 2name, address, and telephone number of the inspector who
Page 7, Line 3performed the inspection; and a statement that the inspector
Page 7, Line 4inspected a sufficient number of locations to conclude with a
Page 7, Line 5reasonable degree of certainty that every location of the
Page 7, Line 6component, system, or improvement complies with the applicable
Page 7, Line 7manufacturer's instructions or recommendations, approved
Page 7, Line 8construction documents and specifications, including
Page 7, Line 9addendums issued during construction, and the applicable building codes.
Page 7, Line 10(III) The construction professional successfully repaired
Page 7, Line 11or resolved any instance of noncompliant design or
Page 7, Line 12construction identified during an inspection and that the
Page 7, Line 13component, system, or improvement complies with the
Page 7, Line 14applicable manufacturer's instructions or recommendations and
Page 7, Line 15approved construction documents and specifications, including addendums issued during construction; and
Page 7, Line 16(c) The inspection is not an inspection performed by or on
Page 7, Line 17behalf of a governmental authority having jurisdiction over
Page 7, Line 18the residential housing unit as a condition of any permitting or the issuance of a certificate of occupancy.
Page 7, Line 19SECTION 3. In Colorado Revised Statutes, add 13-20-803.3 as follows:
Page 7, Line 2013-20-803.3. Multifamily construction incentive program -
Page 7, Line 21created - construction defect claims against architects and engineers
Page 7, Line 22- statute of limitations - affirmative defenses. (1) The multifamily
Page 7, Line 23construction incentive program is created. On and after
Page 8, Line 1January 1, 2026, a builder of multifamily, attached housing of two or more units may participate in the program by:
Page 8, Line 2(a) Providing a warranty that covers any defect and damage at no cost to the homeowner for a minimum period of:
Page 8, Line 3(I) One year for workmanship and materials;
Page 8, Line 4(II) Two years for plumbing, electrical, and materials; and
Page 8, Line 5(III) Six years for major structural components;
(b) Having a third-party inspection performed; and
Page 8, Line 6(c) Recording a notice of election to participate in the
Page 8, Line 7multifamily construction incentive program in the chain of title
Page 8, Line 8in the real property records for the project intended to be covered before the unit is offered for sale.
Page 8, Line 9(2) (a) Except as provided in subsection (3) of this section,
Page 8, Line 10a person must file with a complaint a certificate of review in
Page 8, Line 11compliance with section 13-20-602 for a construction defect action that is:
Page 8, Line 12(I) Against a construction professional who is an architect or engineer; and
Page 8, Line 13(II) For a defect in the construction of middle market housing for which the builder is participating in the program.
Page 8, Line 14(b) The certificate of review filed in accordance with
Page 8, Line 15subsection(2)(a)of this section must, based on facts known to the party filing the certificate of review:
Page 8, Line 16(I) Set forth the architect's or engineer's negligence,
Page 8, Line 17including any act or omission in providing advice, exercising
Page 8, Line 18judgment, giving an opinion, or exercising a similar professional skill; and
Page 9, Line 1(II) Declare that the individual consulted can
Page 9, Line 2demonstrate by competent evidence that, as a result of training,
Page 9, Line 3education, knowledge, and experience, the consultant is
Page 9, Line 4competent to express an opinion as to the negligence, including an act or omission, alleged.
Page 9, Line 5(c) If a claimant fails to file the certificate of review
Page 9, Line 6required in this subsection (2), the court shall dismiss the
Page 9, Line 7complaint against the defendant unless the claimant shows good cause for the failure.
Page 9, Line 8(3) A claimant is not required to comply with the
Page 9, Line 9certificate of review requirements of subsection (2) of this section if:
Page 9, Line 10(a) A claim is for construction in which a governmental
Page 9, Line 11entity contracted with a single entity to provide both design
Page 9, Line 12and construction services for the construction, rehabilitation,
Page 9, Line 13alteration, or repair of a facility, a building or an associated structure, a civil works project, or a highway project; or
Page 9, Line 14(b) The period of limitation could reasonably expire
Page 9, Line 15within ten days after the date of filing and, because of the time
Page 9, Line 16constraint, the claimant has alleged that a certificate of
Page 9, Line 17review by a third-party architect or engineer could not be
Page 9, Line 18prepared. A claimant that does not file a certificate of review
Page 9, Line 19under this section shall supplement the complaint with a
Page 9, Line 20certificate of review within twenty-eight days after the filing
Page 9, Line 21of the complaint; except that a court may, on motion and for
Page 9, Line 22good cause, grant a claimant additional time to file the certificate of review.
Page 10, Line 1(4) A defendant that designates an architect or engineer
Page 10, Line 2as a nonparty at fault in accordance with section 13-21-111.5
Page 10, Line 3(3)(b) must file a subsequent certificate of review that complies
Page 10, Line 4with subsection (2) of this section and section 13-20-602. The
Page 10, Line 5defendant shall file a certificate of review at least forty-five
Page 10, Line 6days prior to any trial or proceeding on the claim. If the
Page 10, Line 7defendant fails to file the certificate of review as required in
Page 10, Line 8this subsection (4), a court shall not consider the negligence or fault of the nonparty.
Page 10, Line 9(5) Subsections (2) to (4) of this section do not:
(a) Extend the applicable period of limitation or repose; or
Page 10, Line 10(b) Apply to a suit or action for the payment of fees arising out of the provision of professional services.
Page 10, Line 11(6) A person shall not assert a claim seeking damages in
Page 10, Line 12a construction defect action for housing built by a builder who
Page 10, Line 13was a participant in the multifamily construction incentive
Page 10, Line 14program at the time of the construction unless the claim has
Page 10, Line 15resulted in one or more of the following types of actual damage:
Page 10, Line 16(a) Damage that substantially affects the functionality
Page 10, Line 17of a system or the safety of real or personal property, other
Page 10, Line 18than a condition that has not caused any substantial physical change;
Page 10, Line 19(b) Actual loss of the use of real or personal property;
(c) Actual bodily injury or wrongful death;
Page 10, Line 20(d) An unreasonable reduction in the capability of, or an
Page 11, Line 1actual failure of, a building component to perform an intended function or purpose; or
Page 11, Line 2(e) An unreasonable risk of bodily injury or death to, or
Page 11, Line 3a threat to the life, health, or safety of, the occupants of the residential property.
Page 11, Line 4(7) (a) For housing built by a builder participating in the
Page 11, Line 5program and sold on or after January 1, 2026, and except as
Page 11, Line 6provided in subsection (7)(b) of this section, a claimant must
Page 11, Line 7bring an action for damages for a claim based on the
Page 11, Line 8construction and filed pursuant to this part 8 not later than
Page 11, Line 9eight years after the substantial completion of the improvement
Page 11, Line 10in an action arising out of a defective or an unsafe condition of
Page 11, Line 11the real property or a deficiency in the construction or repair of the improvement.
Page 11, Line 12(b) (I) If the defendant is a construction professional who
Page 11, Line 13is not an architect or engineer and who has provided the
Page 11, Line 14claimant a written warranty for the residence that complies
Page 11, Line 15with subsection (1)(a) of this section, and if the claimant
Page 11, Line 16discovered or should have discovered the alleged defect or
Page 11, Line 17damage within the longest applicable warranty period, the
Page 11, Line 18claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 11, Line 19(II) If the defendant is a construction professional who is
Page 11, Line 20an architect or engineer, and the construction professional
Page 11, Line 21performed in a manner consistent with the degree of skill and
Page 11, Line 22care ordinarily exercised by members of the same profession
Page 11, Line 23currently practicing under the same or similar circumstances,
Page 12, Line 1the claimant must bring the suit not later than six years after the substantial completion of the improvement.
Page 12, Line 2(c) If a claim involves a defect or damage that is covered
Page 12, Line 3by the warranty described in subsection (7)(b) of this section,
Page 12, Line 4the claimant shall pursue all remedies available under the warranty process before bringing an action for damages.
Page 12, Line 5(d) Section 13-80-104 (2) and (3) applies to the limitation of claims in this subsection (7).
Page 12, Line 6(8) (a) For housing in which the builder is a participant in
Page 12, Line 7the program, a construction professional who makes a
Page 12, Line 8reasonable offer pursuant to section 13-20-803.5 may be immune,
Page 12, Line 9in whole or in part, from an obligation, damage, loss, or liability
Page 12, Line 10under this part 8 related to or arising out of the construction
Page 12, Line 11defect, but only with respect to the portion of the claimant's
Page 12, Line 12damages, if any, the construction professional can demonstrate
Page 12, Line 13by a preponderance of the evidence were proximately caused or
Page 12, Line 14increased by an affirmative defense specified in subsections (8)(b) and (8)(c) of this section and not by the construction defect.
Page 12, Line 15(b) In addition to any other affirmative defense available
Page 12, Line 16under any other law, a construction professional is not liable
Page 12, Line 17for a damage or defect to the extent the professional can prove,
Page 12, Line 18as an affirmative defense, that the damage or defect was caused:
Page 12, Line 19(I) By a weather condition, earthquake, or other natural
Page 12, Line 20phenomenon in excess of the design criteria expressed by the
Page 12, Line 21applicable building codes, regulations, and ordinances in effect
Page 12, Line 22at 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 other than the structure's or component's intended purpose.
Page 13, Line 20(c) A construction professional may assert an affirmative defense to the extent that:
Page 14, Line 1(I) The damage was caused by a particular violation
Page 14, Line 2covered by a valid release obtained by the construction
Page 14, Line 3professional, if the release is enforceable against the claimant,
Page 14, Line 4was executed with knowledge of the particular violation, and does not violate section 13-20-806 (7); or
Page 14, Line 5(II) The construction professional's repair completed
Page 14, Line 6pursuant to section 13-20-803.5 (3) was successful in correcting
Page 14, Line 7the particular violation and any damage resulting from the violation of the applicable standard.
Page 14, Line 8(9) (a) For property in which the builder is a participant in
Page 14, Line 9the multifamily construction incentive program, within thirty
Page 14, Line 10days after the completion of the inspection process conducted
Page 14, Line 11pursuant to this section, a construction professional shall send
Page 14, Line 12or deliver to the claimant, by certified mail, return receipt requested, or by personal service:
Page 14, Line 13(I) An offer to settle the claim by:
(A) Payment of a sum certain; or
Page 14, Line 14(B) Agreeing to remedy the claimed defect described in the notice of claim;
Page 14, Line 15(II) A written response that:
Page 14, Line 16(A) Identifies the standards that apply to the claimed defect's construction or performance; and
Page 14, Line 17(B) Explains why the claimed defect does not require repair; or
Page 14, Line 18(III) A written response that explains the construction
Page 14, Line 19professional's scope of work and why the claimed defect is not
Page 15, Line 1within the work and responsibility of the construction professional.
Page 15, Line 2(b) A written offer to remedy a construction defect must
Page 15, Line 3include a report of the scope of the inspection, the findings and
Page 15, Line 4results of the inspection, a description of the additional
Page 15, Line 5construction work necessary to remedy the defect described in
Page 15, Line 6the notice of claim and all damage to the improvement to real
Page 15, Line 7property caused by the defect, and a timetable for the completion of the remedial construction work.
Page 15, Line 8(10) (a) Within thirty days after the rejection of an offer
Page 15, Line 9made pursuant to subsection (9) of this section, a claimant shall
Page 15, Line 10provide a construction professional with a written proposal to
Page 15, Line 11have the construction defect repaired at the construction professional's expense or to settle the claim.
Page 15, Line 12(b) If the construction professional does not accept the
Page 15, Line 13proposal provided by the claimant pursuant to subsection (10)(a)
Page 15, Line 14of this section in writing within fifteen days after delivery of the proposal, the proposal is deemed to have been rejected.
Page 15, Line 15(c) If the construction professional accepts the proposal
Page 15, Line 16provided by the claimant pursuant to subsection (10)(a) of this
Page 15, Line 17section, the construction professional shall pay the claimant's
Page 15, Line 18reasonable attorney fees and costs incurred in investigating the defect and proposing the repair.
Page 15, Line 19(11) Nothing in this section:
Page 15, Line 20(a) Affects the "Colorado Governmental Immunity Act", article 10 of title 24, or section 13-20-806 (7); or
Page 15, Line 21(b) Prohibits, limits, or impairs a contractual claim,
Page 16, Line 1counterclaim, cross-claim, or third-party claim that is not for
Page 16, Line 2damages or loss to, or the loss of use of, real or personal
Page 16, Line 3property or personal injury caused by a defect in the design or construction of an improvement to real property.
Page 16, Line 4SECTION 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 16, Line 513-20-803.5. Notice of claim process - duty to mitigate.
Page 16, Line 6(1) (a) No later than seventy-five days before filing an action against a
Page 16, Line 7construction professional, or no later than ninety days before filing the
Page 16, Line 8action in the case of a commercial property, a claimant shall send or
Page 16, Line 9deliver a written notice of claim to the construction professional by certified mail, return receipt requested, or by personal service.
Page 16, Line 10(b) Before filing a claim pursuant to this subsection (1)
Page 16, Line 11for the construction of housing for which a builder was a
Page 16, Line 12participant in the multifamily construction incentive program,
Page 16, Line 13a claimant shall mitigate the damage caused by the alleged
Page 16, Line 14construction defect. A claimant satisfies the duty to mitigate
Page 16, Line 15by taking reasonable action to prevent further damage from
Page 16, Line 16the construction defect. A claimant must certify in the complaint that the claimant has satisfied the duty to mitigate.
Page 16, Line 17(c) If the claimant and construction professional dispute
Page 16, Line 18whether the claimant has satisfied the duty to mitigate
Page 16, Line 19described in subsection (1)(b) of this section, the claimant may
Page 16, Line 20proceed with the action but does not recover any damages that
Page 16, Line 21the construction professional proves were caused by the claimant's unreasonable failure to mitigate.
Page 16, Line 22(d) A claimant does not breach the duty to mitigate if the
Page 17, Line 1cost to mitigate is unreasonable under the circumstances or was beyond the claimant's financial ability to perform.
Page 17, Line 3(3) Except as provided in section 13-20-803.3 (9), within thirty
Page 17, Line 4days
followingPage 17, Line 5pursuant to subsection (2) of this section, or within forty-five days
Page 17, Line 6
followingPage 17, Line 7a commercial property, a construction professional may send or deliver
Page 17, Line 8to the claimant, by certified mail, return receipt requested, or personal
Page 17, Line 9service, an offer to settle the claim by payment of a sum certain or by
Page 17, Line 10agreeing to remedy the claimed defect described in the notice of claim. A
Page 17, Line 11written offer to remedy the construction defect shall include a report of
Page 17, Line 12the scope of the inspection, the findings and results of the inspection, a
Page 17, Line 13description of the additional construction work necessary to remedy the
Page 17, Line 14defect described in the notice of claim and all damage to the improvement
Page 17, Line 15to real property caused by the defect, and a timetable for the completion of the remedial construction work.
Page 17, Line 16(3.5) (a) By the earlier of when a construction
Page 17, Line 17professional, other than an architect or engineer, offers to
Page 17, Line 18settle a claim or sixty days after a construction professional
Page 17, Line 19receives actual notice of claim, the construction professional
Page 17, Line 20shall provide the claimant with the following documents and
Page 17, Line 21information, to the extent the documents and information are
Page 17, Line 22within the construction professional's possession, custody, or control:
Page 17, Line 23(I) Copies of all plans, specifications, and soil reports
Page 17, Line 24related to the claim;
Page 18, Line 1(II) Maintenance and preventive maintenance recommendations related to the claim;
Page 18, Line 2(III) The name, last-known address, and scope of work of
Page 18, Line 3each construction professional who contracted to perform
Page 18, Line 4work or provide services and did perform work or provide services related to the claim;
Page 18, Line 5(IV) All documents related to the third-party inspection
Page 18, Line 6of the property and the name and last-known address of the inspector who performed the third-party inspection; and
Page 18, Line 7(V) Copies of each insurance policy purchased by the
Page 18, Line 8construction professional and related to the claim through the date of the notice of claim and from the earlier start date of:
Page 18, Line 9(A) The date the construction of the alleged defect was substantially completed; or
Page 18, Line 10(B) The date the construction professional substantially completed work on the alleged defect.
Page 18, Line 11(b) A construction professional may charge reasonable
Page 18, Line 12copying 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 18, Line 13(c) Failure to provide the identifying information
Page 18, Line 14required in subsection (3.5)(a)(III) of this section by the
Page 18, Line 15applicable deadline for designating a nonparty at fault bars the
Page 18, Line 16construction professional from designating the unidentified
Page 18, Line 17construction professional as a nonparty at fault under section
Page 18, Line 1813-21-111.5 (3)(b) in a subsequent action. If the construction
Page 18, Line 19professional fails to provide the information required in
Page 18, Line 20subsection (3.5)(a)(I) of this section, the claimant need not
Page 19, Line 1comply with the certificate of review requirement in section 13-20-803.3 (2).
Page 19, Line 2(3.7) (a) By the earlier of when a construction
Page 19, Line 3professional who is an architect or engineer offers to settle a
Page 19, Line 4claim or sixty days after a construction professional receives
Page 19, Line 5actual notice of claim, the architect or engineer shall provide
Page 19, Line 6the claimant with the following documents and information, to
Page 19, Line 7the extent the documents and information are within the architect's or engineer's possession, custody, or control:
Page 19, Line 8(I) Copies of all approved construction documents and
Page 19, Line 9specifications, including addendums issued during construction, prepared by the architect, engineer, or consultants;
Page 19, Line 10(II) The name, last-known address, and scope of work of
Page 19, Line 11each architect or engineer who performed work or provided
Page 19, Line 12services as a consultant related to the claim and on the claimant's property; and
Page 19, Line 13(III) Copies of each insurance policy purchased by the
Page 19, Line 14architect or engineer and related to the claim through the date of the notice of claim and from the earlier start date of:
Page 19, Line 15(A) The date the construction of the alleged defect was substantially completed; or
Page 19, Line 16(B) The date the architects and engineers substantially completed work related to the alleged defect.
Page 19, Line 17(b) An architect or engineer may charge reasonable
Page 19, Line 18copying costs for the documents described in subsection (3.7)(a) of this section.
Page 20, Line 1(7) If an offer by a construction professional is made and accepted
Page 20, Line 2or if a proposal made by a claimant is accepted, and if thereafter the
Page 20, Line 3construction professional does not comply with
itsPage 20, Line 4or settle a claim for a construction defect or with the claimant's
Page 20, Line 5proposal, the claimant may file an action against the construction
Page 20, Line 6professional for claims arising out of the defect or damage described in the notice of claim without further notice.
Page 20, Line 7(12) (a) Except as provided in this section and section
Page 20, Line 813-20-806, a claimant shall not recover more than actual damages in an action.
Page 20, Line 9(b) If a claimant unreasonably rejects a reasonable
Page 20, Line 10written offer of settlement made pursuantsection 13-20-803.3
Page 20, Line 11and subsequently commences an action against the
Page 20, Line 12construction professional, the court may award attorney fees and costs to the construction professional.
Page 20, Line 13(c) If a construction professional fails to make a
Page 20, Line 14reasonable written offer of settlement pursuant to section
Page 20, Line 1513-20-803.3, the limitations on damages and defenses to liability
Page 20, Line 16provided in sections 13-20-804 and 13-20-806 do not apply and the court may award attorney fees and costs to the claimant.
Page 20, Line 18(d) (I) A construction professional's written offer of
Page 20, Line 19settlement is reasonable, and a claimant's rejection of the offer
Page 20, Line 20is unreasonable, if the claimant recovers a final judgment in an
Page 20, Line 21amount that is less than the amount offered or the reasonable value of the repair offered by the construction professional.
Page 20, Line 22(II) A construction professional's written offer of
Page 21, Line 1settlement is unreasonable, and a claimant's rejection of the
Page 21, Line 2offer is reasonable, if the claimant recovers a final judgment in
Page 21, Line 3an amount that exceeds the amount offered or the reasonable value of the repair offered by the construction professional.
Page 21, Line 4(e) Subsections (12)(a) to (12)(d) of this section apply only
Page 21, Line 5to claims for property for which the builder is a participant in the multifamily construction incentive program.
Page 21, Line 6(13) An insurer, as defined in section 10-1-102 (13) shall
Page 21, Line 7not cancel or deny a liability insurance policy issued to a
Page 21, Line 8construction professional based on the construction
Page 21, Line 9professional making an offer to repair or settle a construction
Page 21, Line 10defect claim pursuant to this section. Any settlement or repair agreement that affects coverage is subject to insurer approval.
Page 21, Line 11SECTION 5. In Colorado Revised Statutes, amend 13-20-805 as follows:
Page 21, Line 1213-20-805. Tolling of statutes of limitation. (1) If a notice of
Page 21, Line 13claim is sent to a construction professional in accordance with section
Page 21, Line 1413-20-803.5 within the time prescribed for the filing of an action under
Page 21, Line 15
anyPage 21, Line 16limitations or repose is tolled until sixty days after the completion of the notice of claim process described in section 13-20-803.5.
Page 21, Line 17(2) If an alleged construction defect is being mitigated
Page 21, Line 18pursuant to subsection 13-20-803.5, the statute of limitations or
Page 21, Line 19repose is tolled for the duration of the mitigation; except that
Page 21, Line 20the maximum length of tolling under this subsection (2) cannot exceed one year.
Page 21, Line 21(3) The tolling of the statute of limitations or repose
Page 22, Line 1under subsection (1) or (2) of this section does not preclude the
Page 22, Line 2tolling of the statute of limitations or repose under the other subsection of this section.
Page 22, Line 4SECTION 6. In Colorado Revised Statutes, 38-33.3-303.5,
Page 22, Line 5amend (1)(d)(I)(A) and (1)(d)(III) introductory portion; and add (5) as follows:
Page 22, Line 638-33.3-303.5. Construction defect actions - disclosure -
Page 22, Line 7approval by unit owners - definitions - exemptions. (1) (d) Approval
Page 22, Line 8by unit owners - procedures. (I) (A) Notwithstanding any provision of
Page 22, Line 9law or any requirement in the governing documents, the executive board
Page 22, Line 10
maytheonlyPage 22, Line 11authorized within the voting period by owners of units to which
aPage 22, Line 12
majorityPage 22, Line 13allocated.
SuchPage 22, Line 14with a construction defect action if the alleged construction defect
Page 22, Line 15pertains to a facility that is intended and used for nonresidential purposes
Page 22, Line 16and if the cost to repair the alleged defect does not exceed fifty thousand
Page 22, Line 17dollars.
SuchPage 22, Line 18with a construction defect action when the association is the contracting party for the performance of labor or purchase of services or materials.
Page 22, Line 19(III) Vote count - exclusions. For purposes of calculating the
Page 22, Line 20required
majorityPage 22, Line 21(5) An executive board that is successful under a
Page 22, Line 22construction defect claim or settlement shall first use
Page 22, Line 23monetary damages or proceeds received pursuant to the claim to repair the construction defect.
Page 23, Line 1SECTION 7. In Colorado Revised Statutes, 29-32-105, amend (2)(a) as follows:
Page 23, Line 229-32-105. Affordable housing commitments - local
Page 23, Line 3governments - tribal governments - three-year commitment cycle -
Page 23, Line 4expedited development approval process - eligibility for assistance
Page 23, Line 5from the fund. (2) (a) In order to receive financial assistance under this
Page 23, Line 6
articlePage 23, Line 7government, municipality, a city and county, or the unincorporated area
Page 23, Line 8of a county to be eligible for funding, the tribal government or local
Page 23, Line 9government, other than a local affordable housing authority, must
Page 23, Line 10establish processes to enable it to provide a final decision on any
Page 23, Line 11application for a special permit, variance, or other development permit,
Page 23, Line 12including a for-sale multifamily condominium project and
Page 23, Line 13excluding subdivisions, of a development project, for which fifty percent
Page 23, Line 14or more of the residential units in the development constitute affordable
Page 23, Line 15housing not more than ninety calendar days after submission of a complete application, referred to herein as a "fast-track approval process.
Page 23, Line 16SECTION 8. Act subject to petition - effective date -
Page 23, Line 17applicability. (1) This act takes effect at 12:01 a.m. on the day following
Page 23, Line 18the expiration of the ninety-day period after final adjournment of the
Page 23, Line 19general assembly; except that, if a referendum petition is filed pursuant
Page 23, Line 20to section 1 (3) of article V of the state constitution against this act or an
Page 23, Line 21item, section, or part of this act within such period, then the act, item,
Page 23, Line 22section, or part will not take effect unless approved by the people at the
Page 23, Line 23general election to be held in November 2026 and, in such case, will take
Page 23, Line 24effect on the date of the official declaration of the vote thereon by the governor.
Page 24, Line 1(2) This act applies to construction defect claims brought on or after the applicable effective date of this act.