Dive Brief:

• As expected, the Colorado House of Representatives has defeated a bill that would have made it harder for condominium owners to sue builders over construction defects.

• The bill, which the state Senate had passed, was voted down in a House committee known as the “kill committee” for bills unpopular with the Legislature’s Democratic majority.

• The proposed reforms to the state’s construction defects law would have required a majority of homeowners in a multifamily building, rather than a majority of the homeowner association board, to decide whether to sue. It also would have granted a “right to repair” to builders willing to resolve problems in an effort to avoid lawsuits.

Dive Insight:

Supporters of the bill have said the high insurance costs associated with building in a state with such a law are preventing more developers from starting multifamily projects in Colorado. Builders have also complained that the state’s existing law makes it too easy for homeowners to sue them over property defects—often without giving them the chance to make repairs before landing in court. 

Condos accounted for 3.1% of Colorado housing starts in 2014, down from a peak of 22.9% in 2007, the Coloradoan reported.