HB 17-1279 Summary

• Requires unit owners' associations to obtain majority vote approval from unit owners before filing construction defect actions asserting defects in five or more units.

• Mandates executive boards mail written notice to all unit owners and construction professionals at least 10-15 days before holding a meeting to consider the action, with a 90-day total period for notice, meeting, and voting.

• Requires detailed disclosures in the notice including nature of defects, relief sought, benefits and risks, attorney fee arrangements, potential legal costs, and impacts on property values, assessments, financing, and seller disclosure obligations.

• Exempts from approval requirement: actions involving nonresidential facilities with repair costs under $50,000 and actions where the association is the contracting party for labor or services.

• Excludes votes from development parties (contractors, builders, developers, and their affiliates) and banking institutions when calculating the required majority vote for approval.