DENVER--Today, the Senate Business, Labor, and Technology Committee approved Senator Owen Hill's (R-Colorado Springs) bill to reduce litigation costs for homeowners and builders on a bipartisan vote.
Senate Bill 17-156 creates a provision for construction defects litigation disputes involving a home owners association (HOA) specifying that mediation or arbitration take place.
The bill requires that mediation or arbitration take place with a neutral third party in the judicial district in which the community is located, prior to filing a claim on behalf of the HOA.
SB 156 helps homeowners avoid the costly price of litigation while lowering backend costs for builders, creating an avenue for swift resolution and allowing for additional construction.
"Colorado's affordable housing crisis is no secret," said Hill. "Homeownership is a crucial component to making the American Dream a reality for every Coloradan. Reducing some of these hidden fees and long term costs is the best way we, as public servants, can make good on our promise to help constituents access a pathway to homeownership and achieve tangible, lasting wealth."
Senate Bill 156 now continues on to a vote of the Committee of The Whole.