Last week, Senator Mark Scheffel introduced Senate Bil 13-052 ("SB 52") which addresses construction defect claims for "transit-oriented developments." These developments are defined in the bill as " . . . any multi-family residential or mixed-use project within one-half mile of any commuter rail stop, commuter light rail stop, or commuter bus stop." Obviously, many HOAs in the greater Denver area would fall within this definition.
As introduced, SB 52 would:
1. Treat "transit-oriented developments" differently from other developments for the purpose of addressing construction defect claims;
2. Create a right to repair for construction defect professionals that receive a notice of claim with respect to a construction defect in a transit-oriented development;
3. Institute binding arbitration to deal with construction defect actions in transit -oriented developments;
4. Provide construction professionals with immunity from lawsuits relating to environmental conditions – including noise, odors, light, temperatures, humidity, vibrations, and smoke or fumes causally related to transit, commmercial, public or retail use; and
5. Purports to clarify the 6-year statute of repose for construction defect claims.
Frankly, treating transit-oriented developments differently than other developments seems like a rather creative approach to chip away at the construction defect protections currently in statute in Colorado.
CAI’s Colorado Legislative Action Committee is reviewing SB 52 and will likely be engaging on this legislation to protect the interests of HOAs in Colorado. Stay tuned to this blog for updates on SB 52 as it proceeds through the legislative process.