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HomeMy WebLinkAbout2025 - RESO 16 - Support HB25-1272CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 16 SERIES OF 2025 TITLE: A RESOLUTION IN SUPPORT OF HB25-1272, CONSTRUCTION DEFECTS AND MIDDLE MARKET HOUSING WHEREAS, the City of Wheat Ridge recognizes the critical need for diverse and affordable housing options to support a thriving community and ensure that residents of varying income levels have equitable access to quality housing as outlined in the City’s Affordable Housing Strategy and Action Plan; and WHEREAS, construction defects litigation has historically contributed to increased costs and reduced availability of middle market housing, thereby limiting housing choices and restricting equitable opportunities for housing stability and economic advancement through homeownership for many people who currently live or would like to live in Wheat Ridge; and WHEREAS, House Bill 25-1272 proposes reasonable reforms to the construction defects litigation process, including: • Requiring a third-party licensed professional's affidavit to accompany construction defect claims against architects or engineers, ensuring that such claims are substantiated and reducing frivolous lawsuits; • Establishing a rebuttable presumption that a property without identified defects at the time of receiving a certificate of occupancy complies with applicable construction standards, thereby providing clarity and assurance to builders and homeowners alike; • Mandating that claimants take reasonable steps to mitigate alleged construction defects, promoting timely and cost-effective resolutions; • Updating the statute of limitations for construction defect claims to 10 years, or 6 years if the construction professional provided a qualifying warranty, thereby balancing the rights of homeowners and builders; • Increasing the required approval percentage from a majority to 65% for unit owners' associations to initiate construction defect claims, ensuring broader consensus among homeowners before proceeding with litigation; and ATTACHMENT 1 WHEREAS, these reforms aim to reduce unnecessary litigation, lower construction costs, and encourage the development of middle market housing, thereby expanding housing availability and affordability in Wheat Ridge and across Colorado; and WHEREAS, the City Council of the City of Wheat Ridge has prioritized addressing housing affordability and is committed to taking meaningful action to implement the City’s Affordable Housing Strategy and Action Plan; and WHEREAS, the City of Wheat Ridge supports legislative efforts that promote efficient and fair processes in the construction industry, ultimately benefiting our residents and contributing to the economic vitality of our community. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge, Colorado, as follows: Section 1. The City of Wheat Ridge formally supports House Bill 25-1272 and urges the Colorado General Assembly to pass this legislation. The City believes these reforms will help reduce unnecessary litigation, lower construction costs, and encourage the development of middle market housing, increasing affordability and availability for residents. Furthermore, the City directs its staff to advocate for the bill’s passage and engage with stakeholders to promote policies that support responsible and sustainable housing development in Wheat Ridge and beyond. DONE AND RESOLVED this 24th day of March 2025 ATTEST: _________________________________________ Margy Greer, Sr. Deputy City Clerk _________________________________________ Bud Starker, Mayor