Denver--The Senate Business, Labor, and Technology Committee on a vote of 6-1 approved President Kevin J. Grantham's (R-Cañon City) bill to mitigate backend costs for builders and insurers.
Senate Bill 45 is the first in a package addressing construction litigation reform coming before the Legislature this session.
The bill requires all insurers with a duty to defend to evenly split all court costs associated with a construction defect action, reducing burdensome backend costs and incentivizing building.
According to the Colorado Realtors Association, the average cost of a condo in Colorado rose to $260,000 last year, but new listings were down 40 percent. Senate Bill 45 takes a first step in bringing supply in line with demand.
"One of the barriers to more attainable, affordable housing for young people and first time home-buyers in Colorado is on the construction end where the high liability for builders has stalled the development of new affordable condos and multi-family homes," said Grantham. "With so many new people moving to our state, and so few new homes being built, this is a problem that is disproportionately affecting young and low-income Coloradans hoping for a pathway to prosperity, and I'm pleased we are able to take this bipartisan, bicameral first step to provide them some over-due relief."
Senate Bill 45 now moves on to a vote of the Committee on Appropriations.