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Colorado Senate Passes Condo Bill, But SB 177 Still Faces Obstacles

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The hammer in the picture above is representative of the situation: on one side, builders, and on the other, homeowners and HOAs. The builders and supporters of the bill generally say SB 177 is about the lack of affordable housing in Colorado, whereas the homeowners and HOAs generally say SB 177 is about limiting builders' liability for construction defects.

Here's the latest news, brought to us by Ed Sealover with the Denver Business Journal:   

"[T]he victory in the Senate marks a major stride for a bill that has died in the chamber the past two years without ever making it to the floor for full debate." It has passed the Colorado Senate, but will have its work cut out for it in the House. And, having arrived this far, the House may very well be the place SB 177 dies for a third time (albeit having advanced farther than in the past).

What's at Stake

Condo owners who faced construction defects (like some of those who commented on Ed Sealover's report) are unlikely supporters of SB 177. This bill seeks to put limits on a homeowner's or HOA's ability to file a lawsuit against the builder, which supporters say should encourage builders to enter the market and provide more affordable options for would-be buyers in Colorado. Opponents of SB 177 claim that "affordable housing" isn't really the issue - that SB 177 is really just a pro-business bill that benefits builders by limiting their liability.

For more, read Sealover's report here.

(Image credit: https://flic.kr/p/aH4Z2r) 

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