Lawmakers expect lengthy battle on construction defects bill, which could help Colorado housing crunch

DENVER — On Monday, Colorado lawmakers pushed back the debate on Senate Bill 106 to April 1, a full week later than originally scheduled after advancing out of committee last week.

Legislative sources said SB 106, also known as the construction defects bill, is expected to draw lengthy, heated discussion along with ongoing amendment work.

The bill aims to jump-start condo construction in Colorado after research has shown builders have greatly scaled back in that sector in recent years. Condos are often seen as an affordable entry point for first-time buyers.

Industry experts point to current Colorado law that has sharply increased insurance costs. SB 106 would make it easier for buyers and builders to fix construction defects in new condos without resorting immediately to litigation.

“I've spoken to just about everybody in Colorado Springs about this bill, including the military,” said Democratic State Senator Tony Exum, who represents central Colorado Springs. “And it is not the catch-all. It is a step in the right direction.”

Exum chairs the Local Government & Housing Committee and served as the swing vote to advance the bill. He joined three Republicans to vote in favor, while the three Democrats were opposed.

The bill does have bipartisan support and is sponsored by two Democratic senators, but the narrow path out of committee shows the tough path ahead for SB 106.

“The reason I voted for the bill is because I live in a condo. And I want to create some generational wealth,” said Exum inside the state capitol on Monday. “And what's going on now is that we're creating generational debt, because they're building a lot of apartments. They're charging high prices for rent. And that money just flies away, it goes into the pockets of the builders.”

Exum said he’s worked on amendments for both sides of the bill to give it a greater chance of passage, but acknowledged more work needs to be done. He added he isn’t against buyer lawsuit claims, but wants to temper them down so condo builders aren’t “spooked” to operate in Colorado.

Military leaders in the Pikes Peak region like Fort Carson commanding General David Doyle have expressed support for efforts to secure more affordable housing so that his soldiers no longer face a housing crunch. He mentioned bills like SB 106 at a recent luncheon as possible solutions for military housing.

“With the involvement of our civic leaders, we might be able to make some progress on that,” said General Doyle at a military luncheon on March 13. “And therefore, have some more affordable housing units built in proximity to our bases. And that may be a good solution.”

News5 previously reported that despite a housing allowance, most service members in Colorado Springs see the housing market outpacing their pay.

The Colorado Springs Chamber and Economic Development Council have also issued support for the bill.

“The Chamber & EDC supports SB24-106, the Right to Remedy Construction Defects bill, to incentivize homeowners and builders to identify and address home defects before resorting to lawsuits, increasing the supply of affordable and attainable housing,” the organization wrote in a Monday post on X.

UPDATE: An earlier draft of this story mentioned General David Doyle expressly supports SB 106. The language has been clarified that he supports affordable housing efforts, not a specific piece of legislation.

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Email Senior Reporter Brett Forrest at brett.forrest@koaa.com. Follow @brettforrestTVon X and Brett Forrest News on Facebook.

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