Colorado Bill SB24-106 Tightens Construction Defect Claim Criteria
A new bill, SB24-106, is currently under consideration in Colorado. It aims to reform the Construction Defect Action Reform Act (CDARA) and has a hearing scheduled for March 21 at 2:00 PM in Room SCR 352.
The bill tightens the criteria for claimants seeking damages. It bars claims for non-compliance with building codes or industry standards unless actual damage to real or personal property occurs. Additionally, the damage must pose an imminent risk of injury, death, or threaten life, health, or safety.
The bill also clarifies who is considered a claimant under CDARA. It requires a unit owners' association to obtain written consent from at least 2/3 of actual owners before bringing a claim. Furthermore, the bill adds additional forms of permissible alternative dispute resolution.
SB24-106, if passed, will significantly alter the landscape of construction defect claims in Colorado. It aims to protect property owners while ensuring that valid claims can still be pursued. The bill is set to be discussed further at the upcoming hearing.