HB25-1272 Summary
HB25-1272: Construction Defects & Middle Market Housing
Prime Sponsors: Representative Shannon Bird, Representative Andrew Boesenecker, Senator James Coleman, Senator Dylan Roberts
Introduced: February 18, 2025
Signed: May 12, 2025
Effective Date: August 6, 2025
Summary:
To help spur the construction of entry-level homes – namely, condominiums and townhomes – the Governor signed HB25-1272 on May 12, 2025.
The Act seeks to encourage homebuilders to construct new homes by reducing the amount of litigation involved with the development of condominiums. Chiefly, a homebuilder (or “developer”) may choose to participate in a program that offers a homebuyer a warranty and inspection by a neutral third-party inspector in exchange for additional protections from construction-defect claims.
This bill applies to HOAs and other common interest communities for two reasons:
To file a construction defect claim on behalf of the owners, an association’s executive board must now obtain sixty-five (65) percent owner approval, compared to the previous requirement of a simple majority.
If an executive board prevails in the said claim, any monetary damage received must first be used to repair the construction defect.
The Act takes effect 90 days following the adjournment of the General Assembly, assuming no referendum petition is filed, and applies to claims brought on or after that date.
The Act adds to, and amends, section 38-33.3-303.5, C.R.S. of CCIOA and is applicable to both pre-CCIOA and CCIOA communities.