Colorado lawmakers say help is on the way for aspiring homebuyers: "This bill is meant for you"

Six years after moving into his brand new Colorado condo, Alvin Cooper learned he and many of his neighbors had six years of water damage under the floorboards. He says faulty construction was to blame. The builder disagreed.

"Filed a suit because couldn't get them to do the right thing, basically," Cooper said.

Several years and thousands of dollars later, they settled.

"We got money to pay for the major issues that a handful of units that were having the most problems. But there were definitely owners who didn't get the best end of that deal," Cooper said.

They aren't the only ones who lost out, says state Rep. Shannon Bird.

"Right now, the way we deal with problems in a home is probably the most expensive way to deal with problems," Bird said.

She says class action lawsuits involving condo owners have become so costly in Colorado, builders can no longer afford insurance and are pulling out of the state, leaving first time home buyers with few options.

Before 2009, developers were building an equal number of apartments and condominiums in Colorado. Now, they're building 14 apartments for every one condominium as the state faces a shortfall of a least 100,000 homes.

Bird says she has a solution.

"To every Coloradan who believes that they will never be able to afford a home because the cost is simply too high, this bill is meant for you," Bird said.

She and state Sen. James Coleman, along with nearly 30 other lawmakers from both sides of the aisle, have introduced a bill that they say protects homeowners and builders. It creates a six-year statute of limitations to file a claim if builders provide a written warranty with specific protections. The statute of limitations is 10 years if they don't.

Third party inspectors would identify problems and both sides could offer fixes. But if the dispute goes to court, a judge could force one side to pay the other's attorney fees if their offer isn't reasonable.

Builders would also have to make certain disclosures, and they would not be liable for poor maintenance or unauthorized modifications.

"We have multiple off ramps before we even proceed to more costly litigation," said Bird.

Coleman admits the bill isn't a panacea.

"This bill will not solve all of our housing affordability challenges but it is an important first step," he said.

It also has the backing of Gov. Jared Polis.

"It's a bill that's fair and takes into account legitimate concerns from all sides," the governor said.

Cooper disagrees. He says the bill creates too many hoops for homeowners to jump through.

"We can't stifle obviously the development of the city, but we also have to make sure it's done responsibly," Cooper said.

Bird says in 2008, condos made up 20% of new home starts in Colorado. Now they are under 5% and those that are available, she says, aren't affordable because builders are paying anywhere from $3,000 to $30,000 more per unit in insurance.

Her bill is one of two dealing with construction defects this legislative session. The other is more favorable to homeowners, who have several concerns with Bird's bill, including the 6 year statute of limitations, which they say is among the shortest in the country.