Colorado Sen. Jessie Ulibarri (D-Commerce City) introduced SB 220 to address Colorado’s condominium shortage. However, SB 220 died earlier this month in the Senate Judiciary Committee when it failed to convene on the last day of the legislative session.
Beginning in 2005 and continuing through the great recession, many builders and developers ceased Colorado multifamily construction entirely. The Colorado real estate market has rebounded in recent years. But, multifamily construction remains slow.
One reason for the shortage is builders’ unwillingness to face the almost certain construction defect claims that follow any multifamily construction project. The motto for multifamily construction in Colorado: If you build it, they will sue.
SB 220 sought to revitalize the condo market by preserving mandatory arbitration provisions in condominium declarations and requiring disclosures to homeowners before commencement of a construction defect claim.
With the demise of SB 220, Colorado’s condo market will remain DOA – at least until next year.