The Times They Are A Changin’

Broomfield decision pushes debate over debate of “homeowner” for residential rental properties

BY: MATTHEW NINNEMAN
HALL & EVANS

Al Stewart will tell you it’s “The Year of the Cat.” The Chinese calendar says it’s the year of the Rooster. In Colorado construction, it’s the year of the developer.

Construction is booming, housing demand is high, lenders are handing out money and the Denver skyline is littered with construction cranes; so much so there is a construction labor shortage. Not only are developers reaping the rewards of a strong Colorado economy and population growth, but they are also experiencing a boon in changing Colorado construction legislation and court decisions.

Indeed, the Colorado Legislature enacted HB 17-1279, a bipartisan construction defect reform bill passed in early May 2017. The new law amends the Colorado Common Interest Ownership Act, which governs the conduct of homeowners’ associations. The new law requires HOA’s members, not just the HOA board, to meet, discuss and vote on whether to pursue construction defect claims. Before any vote is taken, the HOA must notify the developer.

The Colorado Supreme Court also upheld a controversial Court of Appeals holding in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., upholding a developer-declarant’s right of consent to certain proposed amendments to a common interest community’s declaration, including dispute resolution procedures and venues, after it relinquishes declarant control, and regardless of whether a majority percentage of unit owners disagree.

To read this story and other complete articles featured in the September 4, 2017 print edition of Law Week Colorado, copies are available for purchase online.