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Denver Takes On Construction Defects Reform

"Could three of the four largest cities be that wrong?" asks Tom Clark of the Metro Denver Economic Development Corp., referring to Colorado cities that have passed (or, like Denver, are working to pass) their own ordinances on construction defects reform. They have done so, Clark argues, because state legislators have repeatedly failed to pass statewide reform.

For more on this, see our earlier story on Senate Bill 177.

Denver is next to take matters into its own hands.

As Ed Sealover reports for the Denver Business Journal, Denver Mayor Michael Hancock is "moving ahead" with an ordinance that will change the rules in lawsuits involving condos.

Generally known as "construction defects reform," supporters of such measures say that they will encourage builders to do what they do - build condominiums - and therefore increase the supply of housing (including affordable housing) in the Denver metro and elsewhere in Colorado. Opponents say that such measures merely protect builders from liability and remove access to justice for homeowners and HOAs faced with construction defects.

If Denver passes this ordinance, it would give builders a right to first repair defects before being dragged into court, as well as require arbitration rather than courtroom litigation to resolve disputes. Both measures would presumably reduce costs for builders and encourage development.

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