A strict Colorado law has restricted construction of condominiums in Denver for the past several years, but recent challenges to that law could result in a more favorable environment for builders and an increase in Denver construction.
The Colorado construction defects law of 2005 protects consumers from defects and shortcomings in construction projects. However, the law has created an environment in which litigation has become the preferred method of settling defects complaints, resulting in a reluctance on the part of builders and developers to create condominiums and townhouses in Denver.
Demographics in Denver reveal a large population of potential condominium buyers whose housing requirements aren’t being met. The city contains a growing population of millennials and first-time homebuyers. Older couples who are looking to downsize are also prime candidates for buying a condo or townhouse.
Currently, the law allows a homeowner’s association board, upon approval of a majority of members, to initiate litigation against a builder. Homeowners themselves do not have to approve or even agree with the litigation.
Attempts by state lawmakers to change the law or ease its reliance on litigation have been unsuccessful, in large part due to fears of reducing consumer protections. However, some cities, such as Lakewood, have passed local ordinances that soften the harshness of the law.
For example, the Lakewood ordinance gives contractors the opportunity to correct defects before any suits are filed, and homeowners associations must get approval from a majority of homeowners before litigation.
Similar action in Denver could serve to ease the stress of the building defects law and increase construction of condominiums and residential units there.
Construction industry professionals who need the latest and most accurate information on industry developments can turn to Construction Monitor for data on building permits, housing starts and important trends. Contact us today for more information on Denver construction and how the challenges to the Colorado construction defects law can improve the market for condominiums in that city.
Image via Shutterstock.com