PPAR.org

The Voice of Real Estate In The Pikes Peak Region.
Protecting Property Rights & Free Enterprise

Phone:

+1 719 633 7718

MLS Support:

+1 719 633 7718

Location:

430 N. Tejon St., Suite 101
Colorado Springs, CO 80903.

2017 State Legislative Wrap-Up

The 2017 Colorado Legislative Session has been one of the busiest in recent memory. The Colorado Association of REALTORS® (CAR) Legislative Policy Committee (LPC) worked very hard this year to make sure that REALTOR® interests and private property rights were protected and enjoyed many successes this session. Class action lawsuits regarding construction defects has had an adverse effect on the availability of attainable housing in Colorado. In the past few years, 18 cities and municipalities (including Colorado Springs) have passed local ordinances to help mitigate this problem and encourage home builders to start building multi-family owner occupied developments in their areas.
The Pikes Peak Association of REALTORS® (PPAR) Government Affairs Committee, in cooperation with the CAR LPC, has worked for many years to get a state law passed that would address the issue of construction defects litigation and standardize the way such issues would be handled across Colorado. The first step towards this goal, HB17-1279, passed through the House and Senate and was signed by the Governor on May 23, 2017.

HB17-1279 – Construction Defects Actions Notice Vote Approval

The Highlights:

Before filing a construction defects claim the executive board of a unit owners’ association (HOA) in a common interest community must:

  • Mail or deliver written notice of the anticipated commencement of the construction defect action to each unit owner.
  • - The notice must call a meeting of the unit owners to be held no less than 10 days and no more than 15 days after the mailing date of notice to consider whether to bring a construction defect action. Failure to hold the meeting within required time period voids the vote. A quorum at the meeting isn’t required.
    - The voting period shall end 90 days after the mailing date of the meeting notice or when the Association determines that the construction defect action is either approved or not, whichever comes first.
    - The substance of the proposed construction defect action may be amended or supplemented after the meeting, but such changes does not extend the voting period.
  • The construction professional against whom the construction defect action is proposed will be invited to attend the meeting and will have an opportunity to address the unit owners concerning the alleged construction defect.
  • The construction professional or the construction professional’s designee(s) may, but is not required to, include an offer to remedy any defect.
  • The notice must include a description of the nature of the construction defect, the relief sought, a good-faith estimate of the benefits and risks involved and any other pertinent information including:
  • - Alleged construction defect might result in increased costs to the HOA in maintenance or repair or cause an increase in assessments or special assessments to cover cost of repairs.
    - If claim isn’t filed before applicable legal deadlines, the claim expires.
    - Until alleged defects are repaired, sellers of units might owe buyers a duty to disclose known defects.
    - Whether the executive board intends to/has entered into a fee arrangement with an attorney and the amount of said fees.
    - Any additional legal costs including expert witnesses, depositions, and filing fees.
    - If the HOA doesn’t win its case, the HOA may be responsible for paying its attorney fees and the court costs and attorney fees of the opposing party.
    - No guarantee that the HOA will recover enough funds to repair the claimed construction defect(s). If not repaired, additional damage to property might occur.
    - Until claimed construction defects are repaired, the unit owners might have difficulty in refinancing and prospective buyers might have difficulty obtaining funding.
  • HOA may only initiate the construction defect action if authorized within the voting period by a majority of unit owners who have submitted their vote in any written format.
  • This law is not retroactive and applies to events and circumstances on or after September 1, 2017.

SB17-215 – Sunset Licensed Real Estate Brokers & Subdivision Developers

Every ten years, the programs of the Department of Regulatory Agencies (DORA) are analyzed and evaluated by the Colorado Office of Policy, Research and Regulatory Reform (COPRRR) with cooperation from consumers, government agencies, public advocacy groups, and professional associations. This process is called a sunset review and enables the legislature to repeal all or part of a law after a specific date. The sunset review for the Colorado Real Estate Commission was submitted in October 2016 and the bill to continue the Commission was introduced to the state legislature on March 10, 2017. It passed through the legislature and was signed by the Governor on June 1, 2017. It went into effect on July 1, 2017.


The Highlights:

  • License renewal will be on or before December 31 for everyone.
  • RE Commission will be 5 members for 3 year term. 3 real estate brokers who have 5+ years’ experience. One will also have substantial experience in property management. Other 2 will represent public at large.
  • “Standard Form” has been defined as:
  • - Form promulgated by RE Commission for current use (Commission-approved form).
    - Form drafted by licensed CO attorney representing a specific broker, employing broker, or brokerage firm.
    - Form provided by a party to the transaction if the broker is acting in the transaction as either a transaction broker or a single agent for the party providing the form to the broker, so long as the broker retains written confirmation that the form was provided by a party to the transaction.
    - Form prescribed by a governmental or quasi-governmental agency or a lender if form is mandated by such agency or lender.
    - Form issued with written approval of CO Bar Association and specifically designated for use by brokers in CO as long as form is within any guidelines or conditions specified by CO Bar Association in connection to use of form.
    - Form used for disclosure or informational purposes only, in regards to specifically the real estate involved in the transaction or general geographic area where real estate is located. It does not purport to waive or create any legal rights or obligations affecting any part to the transaction.
    - Form prescribed by a title company that is providing closing services in transaction.
    - Letter of intent created or prepared by broker, employing broker, or brokerage firm so long as intent states that it is nonbinding and creates no legal rights or obligations.

Not all bills that were introduced this session were favorable to private property rights and homeownership. CAR LPC were able to defeat the following legislation that would have been hurtful to the real estate industry:


SCR17-002 – Real Estate Transfer Tax for Affordable Housing -this Concurrent Resolution (a legislative measure adopted by both houses of a legislature that lacks the force of law (is non-binding) and does not require the approval of the governor) would have gone on the November ballot for a vote by the citizens because this will be a tax and a change to the Colorado Constitution. This would have imposed a real estate transfer tax on the transfer of all real property in the state of Colorado.

HB17-1309 – Documentary Fee to Fund Affordable Housing - this bill would have raised the documentary fee that is charged by the county clerk and recorder for recording the transaction of real property in order to fund affordable housing.

Because the dream of homeownership should include attainable and affordable housing, CAR has encouraged the state to commission a study on the amount and availability of funds through government and private programs to help with affordable housing. The last study was in 2008 and found that over $700 million was available each year for affordable housing in the state of Colorado.

HB17-1358 - Disclose Amounts Payable to Real Estate Brokers - this bill would have required that anyone acting as a broker in a sale or lease of real estate disclose in writing the commission earned for the transaction and each portion accounted for. It would also have required brokers to disclose their fees or basis for calculating their fees on all marketing materials relating to any specific property, including on-line MLS listings.

None of these successes would have been possible without the tireless efforts of the REALTOR® volunteers of the CAR LPC and the PPAR Government Affairs Committee. These volunteers recognize that the real estate industry is one of the most heavily regulated industries in the nation and legislation at all levels of government needs to be closely monitored to ensure the protection of private property rights and the free enterprise system.


These successes were also made possible by all the REALTOR® members who donated to the REALTOR® Political Action Committee (RPAC). These funds are used to support or defeat legislation that would be harmful to homeownership and the real estate industry.

Contacting Elected Officials


El Paso County

Board of County Commissioners
719-520-7276
Commissioner Website

Assessor
719-520-6600
Assessor Website

Clerk & Recorder
719-520-6202
Clerk & Recorder Website

Colorado Springs

City Council
719-385-5986
City Council's Website

719-385-CITY(2489)
City Gov. Website

Mayor
719-385-5900
Mayor's Website

Manitou Springs

City Council
719-685-2554
City Council's Website

719-685-5481
City Gov. Website

Mayor
719-685-2554
Mayor's Website

Fountain

City Council
719-322-2000
City Council's Website

719-322-2000
City Gov. Website

Mayor
719-287-4223
Mayor's Website

Monument

Board of Trustees
719-481-2954
Board of Trustee's Website

719-481-2954
City Gov. Website

Palmer Lake

City Council
719-481-2953
City Council's Website

719-481-2953
City Gov. Website

Teller County

County Commissioners
719-689-2988
County Commissioner Website

Assessor's Office
719-689-2941
Assessor's Website

Clerk & Recorder
719-689-2951
Clerk & Recorder Website

Woodland Park

City Council
719-687-5295
City Council's Website

719-687-9246
City Gov. Website

Mayor
719-687-5295
Mayor's Website

Cripple Creek

City Council
719-689-2502
City Council's Website

719-689-2502
City Gov. Website

City Administrator
719-689-3316
City Administrator's Website

Victor

City Clerk
719-689-5640
City Clerk's Website

719-689-2284
City Gov. Website

City Administrator
719-689-5641
City Administrator's Website

Divide

Chamber of Commerce
719-686-7605
Chamber of Commerce's Website

State of Colorado

Colorado State Offices
Colorado State Website

Governor
303-866-2471
Governor's Website

Federal Offices

Senator Cory Gardner
719-632-6706
Senator Gardner's Website

Senator Michael Bennett
719-328-1100
Senator Bennett's Website

Representative Doug Lamborn
719-520-0055
Rep. Lamborn's Website