A major piece of Colorado Gov. Jared Polis’ housing agenda is on the verge of becoming law, as a bill aimed at reforming construction defects legislation moves closer to final approval by state lawmakers.

House Bill 1272, designed to curb litigation risks for homebuilders, cleared the state Senate on April 17 in a 32-3 vote after previously passing the House with overwhelming support. The legislation seeks to ease a long-standing barrier to condo development, which officials say has discouraged developers and reduced affordable homeownership options, especially for first-time buyers.

“Colorado is making historic progress to break down artificial barriers that block housing Coloradans can afford and unnecessarily increase costs, and I’m excited that we continue to build on that progress with this legislation,” said Polis in a statement via spokesperson. “There’s no silver bullet, but this bill will help increase the supply of homes in Colorado, lower costs and increase attainable ownership opportunities for Coloradans.”

The effort comes after a similar push failed during last year’s legislative session. Polis had renewed his call for reform during his January State of the State address, urging lawmakers to revisit the issue. This year, Reps. Shannon Bird, D-Westminster, and Andrew Boesnecker, D-Fort Collins, joined Sens. James Coleman, D-Denver, and Dylan Roberts, D-Frisco, to carry the bill forward.

“In our mountain communities, we have people who desperately want to be able to buy a first-time home and start building generational wealth and put roots down in our communities,” Roberts said in a prior interview. “But there’s not any stock available, any housing available to make those purchases.”

What the Bill Would Do

House Bill 1272 proposes a new opt-in program for builders that offers protections from defect lawsuits—provided they meet specific requirements. Builders would need to:

• Conduct third-party inspections throughout construction.
• Offer warranties ranging from one year for general workmanship to six years for structural issues.
• Follow a formal resolution process with homeowners before litigation begins.

Additionally, the bill would raise the threshold for homeowners associations to initiate defect lawsuits, increasing the required approval from a simple majority to 65%. Homeowners could still file lawsuits in cases involving safety concerns but must demonstrate efforts to resolve issues with the builder first.

Changes Made After Pushback

The bill underwent several amendments following objections from homeowner rights group Build Our Homes Right. Among the revisions:

• Narrowing criteria for third-party inspectors.
• Banning contract clauses that override state law.
• Removing automatic legal protection for builders who obtain certificates of occupancy.
• Strengthening warranty coverage requirements to ensure defect repairs are free to homeowners.

“Build Our Homes Right appreciates that Colorado needs more homebuilding to address the state’s housing shortage and affordability crisis,” said Janine Musser, a Westminster homeowner and group member. “We’re hopeful that the changes to this bill will ensure those homes are properly built, so that families’ biggest investment and financial stability are protected.”

With Senate changes in hand, the bill now returns to the House for final concurrence before heading to Gov. Polis for his signature.

Originally reported by Robert Tann in Vail Daily.