SB14-220 Summary

• Preserves arbitration or mediation requirements for construction defect claims in common interest communities even if such requirements are later removed from governing documents, but only for claims based on acts or omissions that occurred while the requirement was in place.

• Requires arbitration of construction defect claims against developers, contractors, architects, or other construction-involved parties to take place in the community's judicial district and mandates arbitrators be neutral third parties who make required disclosures before selection.

• Requires the executive board to provide advance written notice to all unit owners before filing construction defect litigation, disclosing projected costs, duration, financial impact, effects on property values and marketability, funding methods, and likelihood of success.

• Requires majority written consent from unit owners (obtained directly, not by proxy) before the association can file construction defect lawsuits, with at least 60 days' notice for statutory notice-of-claim actions and 30 days' notice for other actions.

• Adds to property purchase disclosures in common interest communities a notice that governing documents may require mandatory binding arbitration of certain disputes.