Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE ESTABLISHMENT OF A PROCESS THAT A BUILDER AND HOMEOWNER FOLLOW BEFORE THE HOMEOWNER FILES A CIVIL ACTION AGAINST THE BUILDER TO RECOVER FOR DAMAGES TO THE HOMEOWNER’S RESIDENCE.

Summary of Assessment

            The provisions of this bill would create a process that would require a homeowner to notify a builder in writing of any complaint or disagreement the homeowner has against the builder relating to a construction matter before filing any civil action to recover damages.

            It would require the homebuilder to provide the homeowner with a written repair plan, a written offer to otherwise settle the complaint or disagreement, or a written notice that the builder will not attempt to resolve the dispute. It also would require the homeowner to provide reasonable access to make any repairs. This bill would become effective upon signature of the Governor, and would apply to civil actions that arise or are filed after the effective date.

            The provisions of this bill could result in a reduction in the number of cases that go to trial involving disputes between homeowners and builders. The Judicial Branch has indicated that the likely reduction in the number of cases that go to trial would have an insignificant impact on the workload of the courts. The provisions of the bill would not affect any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Judicial Branch