SB15-177 - HOA Construction Defect Lawsuit Approval Timelines

Postponed Indefinitely
Concerning Prerequisites To The Authority Of A Unit Owners' Association To Pursue Resolution Of Disputes Involving Construction Defects.

The bill states that when the governing documents of a common interest community require mediation or arbitration of a construction defect claim and the requirement is later amended or removed, mediation or arbitration is still required for a construction defect claim. These provisions are in section 2 of the bill. Section 2 also specifies 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 the uniform arbitration act.

Section 1 adds definitions of key terms.

Section 3 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 4 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.

Latest update: April 27, 2015
04/27/2015 House Committee on State, Veterans, & Military Affairs Postpone Indefinitely
04/22/2015 Introduced In House - Assigned to State, Veterans, & Military Affairs
04/14/2015 Senate Third Reading Passed - No Amendments
04/13/2015 Senate Third Reading Laid Over Daily - No Amendments
04/10/2015 Senate Second Reading Passed with Amendments - Committee, Floor
04/06/2015 Senate Second Reading Laid Over to 04/10/2015 - No Amendments
03/30/2015 Senate Second Reading Laid Over to 4/6/15 - No Amendments
03/25/2015 Senate Second Reading Laid Over to 03/30/2015 - No Amendments
03/24/2015 Senate Second Reading Laid Over Daily - No Amendments
03/23/2015 Senate Second Reading Laid Over Daily - No Amendments
03/18/2015 Senate Committee on Business, Labor, & Technology Refer Amended to Senate Committee of the Whole
02/10/2015 Introduced In Senate - Assigned to Business, Labor, & Technology

3rd Reading Vote Summary - SB15-177*

House Vote Summary
No Voting Information Found
Senate Vote Summary - April 14, 2015
Yes No Excused Absent
24 11 0 0
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