As anticipated, the 2015 edition of the construction defect bill has been introduced in the Colorado Senate. Senate Bill 15-177 ("SB 177"), contains most of the unconscionable provisions of the 2014 bill – SB 220. However, the legislative insanity on construction defects got even nuttier this year!
Get this, SB 177 requires that HOAs must obtain the written consent of a majority of owners prior to instituting any legal action, including a construction defect claim. That means for an association to pursue a judgment against owners for their delinquent assessments, the association would have to obtain owner consent. In addition, for associations to obtain an injunction against individuals who threaten physical harm against the board of directors or manager – the association would first have to obtain owner consent to protect these folks. To pursue legal action for any covenant violation and to enforce the governing documents of the association, owner consent would be required.
Well done Metro Mayors Caucus and the Denver Chamber of Commerce! You have just had a bill introduced to destroy the right of associations to protect the financial condition of their communities, protect folks from being physically harmed and to make it impossible for associations to enforce their governing documents.
The good news is, this bill will likely never make it out of the House.