SB15-177 Summary

• Mediation or arbitration requirements for construction defect claims in HOA governing documents remain binding even if subsequently amended or removed from those documents.

• Construction defect claims must be submitted to mediation before a neutral third party, with the mediator or arbitrator selected per governing documents or the Uniform Arbitration Act.

• Before filing a construction defect claim, the HOA board must provide all unit owners with at least 60 days' advance notice including projected costs, duration, and financial impact, and obtain written consent from owners holding a majority of votes (excluding declarant votes).

• Property purchase disclosure statements must include notice that community governing documents may require binding arbitration of certain disputes.

• Arbitrators in construction defect cases must follow Colorado substantive law regarding remedies, and courts may vacate awards that substantially violate that law.