Construction Defects & Middle Market Housing
The legislation includes provisions that require claimants to file an affidavit of negligence by a licensed professional when bringing claims against architects or engineers. Additionally, it establishes a rebuttable presumption that properties are defect-free if they have been issued a certificate of occupancy. This shift is designed to alleviate burdens on builders and to clarify avenues for addressing defects, while also placing expectations on consumers regarding their responsibilities to mitigate damages.
House Bill 1272, titled the 'Colorado American Dream Act,' seeks to reform construction defect claims and promote the construction of middle market housing in Colorado. The bill aims to create more affordable homeownership opportunities for residents, particularly targeting first-time homebuyers who often find themselves priced out of the market. The intent is to stimulate development through changes to construction liability laws, effectively reducing the barriers currently inhibiting condominium and other entry-level housing projects from being built.
Sentiment surrounding HB 1272 appears to be mixed, reflecting the views of various stakeholders in housing and construction sectors. Supporters of the bill see it as a necessary step towards easing the housing crisis in Colorado by making it easier and more attractive for developers to create new housing units. On the contrary, critics worry that the changes may dilute consumer protections and make it more challenging for homeowners to seek redress for legitimate construction defects.
One of the notable points of contention involves the balance between developer liability and homeowner protections. Proponents advocate for the reduced obstacles facing builders, arguing that doing so could encourage the construction of much-needed affordable housing units. However, opponents caution against potential harm to consumer rights and the possibility that builders may be incentivized to cut corners or shirk responsibilities to address construction issues, leading to long-term consequences for consumers and communities.