Page 10 - BOD 4-20-17

CBA Board of Directors, CBA office, Thursday, April 20, 2:00pm-4:00pm Page 10.

that the mediation or arbitration must take place in the judicial district in which the community is
located and that the arbitrator must:
• Be a neutral third party;
• Make certain disclosures before being selected; and
• Be selected as specified in the common interest community's governing documents or, if
not so specified, in accordance with applicable state or federal laws governing mediation
or arbitration.
Section 1 of the bill specifies that, in the arbitration of a construction defect action, the arbitrator
is required to follow the substantive law of Colorado with regard to any applicable claim or
defense and any remedy granted, and a failure to do so is grounds for a district court to vacate
or refuse to confirm the arbitrator's award.
Section 4 of the bill requires that, before a construction defect claim is filed on behalf of the
association:
• The parties must submit the matter to mediation before a neutral third party; and
• The board must give advance notice to all unit owners, together with a disclosure of the
projected costs, duration, and financial impact of the construction defect claim, and must
obtain the written consent of the owners of units to which at least a majority of the votes
in the association are allocated.
Section 5 of the bill adds to the disclosures required prior to the purchase and sale of property
in a common interest community a notice that the community's governing documents may
require binding arbitration of certain disputes.
SB17-157: Construction Defect Actions Notice Vote Approval DEAD
Sponsors: A. Williams / J. Melton - The bill requires that, before the executive board of a unit
owners' association (HOA) in a common interest community brings suit against a developer or
builder on behalf of unit owners, the board must:
• Notify all unit owners; and
• Except when the HOA contracted with the developer or builder for the work complained
of or the amount in controversy is less than $100,000, obtain the approval of a majority of
the unit owners after giving them detailed disclosures about the lawsuit and its potential
costs and benefits.
The bill also limits the amount and type of contact that a developer or builder that is potentially
subject to a lawsuit may have with individual unit owners while the HOA is seeking their
approval
HB17-1279: Construction Defect Actions Notice Vote Approval – The bill continues to be
laid over weekly, has not yet passed the first committee in the House.
Sponsors: A. Garnett | L. Saine / L. Guzman | J. Tate
The bill requires that, before the executive board of a unit owners' association (HOA) in a
common interest community brings suit against a developer or builder on behalf of unit owners,
the board must:
• Notify all unit owners and the developer or builder against whom the lawsuit is being
considered;
• Call a meeting at which the executive board and the developer or builder will have an
opportunity to present relevant facts and arguments; and
• Obtain the approval of a majority of the unit owners after giving them detailed disclosures
about the lawsuit and its potential costs and benefits.

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