GreenCO/ALCC issue position statement on construction defects reform |
Thursday, March 23, 2017 02:00 AM |
Position Statement: Construction Defects Legislation - 2017 Background A big hurdle to building more entry-level housing is a flaw in state law that exposes homebuilders, construction and maintenance contractors and homeowners to a high risk of expensive, time-consuming litigation. It has created a climate that has effectively stopped new construction of affordable, multi-family housing, scaring off investment in the affordable-housing market. And it is forcing would-be homebuyers to rent, instead of owning a home. The state legislature needs to enact legislation that fixes this situation. First and foremost, Colorado must have a process that allows for a quick resolution process for construction issues that is fair to homeowners who need repairs while protecting the rights of all owners in a community. This can be done by requiring mediation before a lawsuit is filed and utilizing arbitration instead of litigation and requiring disclosure to all homeowners in a community about a potential lawsuit, its costs and impact on home values. By doing this, state lawmakers can go a long way toward jump-starting new construction of condos and townhomes. GreenCO supports legislation that:
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