The bill prohibits local governments from enacting or enforcing
residential occupancy limits unless those limits are tied to a minimum square footage per person requirement that is necessary to regulate safety, health, and welfare.
Concerning mortgage servicers, and, in connection therewith, requiring mortgage servicers to take certain actions regarding the disbursement of insurance proceeds to borrowers.
The bill requires a mortgage servicer to disclose certain
information to a borrower concerning the disbursement of insurance proceeds to the borrower in the event that a residential property that is subject to a mortgage is damaged or destroyed and an insurance company pays a claim associated with such damage or destruction.
In the event that half or more of a residential property is damaged
or destroyed, a mortgage servicer must work with the borrower to create a repair plan or a rebuild plan that includes specific milestones that require the mortgage servicer to disburse insurance proceeds. However, a mortgage servicer must also disburse insurance proceeds to a borrower in specified amounts, depending on the amount of the insurance proceeds and whether the borrower is delinquent in making payments on the mortgage.
A mortgage servicer must promptly disburse to a borrower any
amount of insurance proceeds in excess of the remaining amount that the borrower owes on the mortgage.
A mortgage servicer must hold in an interest-bearing account any
insurance proceeds that the mortgage servicer does not immediately disburse to a borrower. A mortgage servicer must ensure that any interest that is credited to the account is credited and disbursed to the borrower.
A mortgage servicer must retain for at least 4 years all written and
electronic communications between the mortgage servicer and a borrower.
Status
House Considered Senate Amendments - Result was to Concur - Repass (04/05/2024)
Under current law, the statute of limitation to bring a claim against
a real estate appraiser does not commence until the party filing the claim discovers, or should discover, an alleged defect in the appraisal.
The bill requires a claimant to bring an action against a real estate
appraiser or individual performing a real estate appraisal practice within 3 years after the date of report; except that, if a cause of action arises during the third year after the date of report, the action must be brought within 2 years after the date the cause of action arose.
Status
Senate Committee on Judiciary Postpone Indefinitely (03/18/2024)
Section 1 of the bill creates a series of requirements related to
accessory dwelling units. The bill establishes unique requirements for subject jurisdictions and for qualifying as an accessory dwelling unit supportive jurisdiction (supportive jurisdiction).
As established in the bill, a subject jurisdiction is either: •
A municipality that has a population of 1,000 or more and that is within the area of a metropolitan planning organization; or
•
The portion of a county that is both within a census designated place with a population of ten thousand or more, as reported in the most recent decennial census, and within the area of a metropolitan planning organization.
The bill requires a subject jurisdiction to allow, subject to an administrative approval process, one accessory dwelling unit as an accessory use to a single-unit detached dwelling in any part of the subject jurisdiction where the subject jurisdiction allows single-unit detached dwellings. The bill also prohibits subject jurisdictions from enacting or enforcing certain local laws that would restrict the construction or conversion of an accessory dwelling unit.
In order to qualify as a supportive jurisdiction, a jurisdiction must
submit a report to the division of local government in the department of local affairs (the division) demonstrating that the jurisdiction:
•
Has complied with the accessory dwelling unit requirements the bill imposes on subject jurisdictions; and
•
Has implemented one or more strategies to encourage and facilitate the construction or conversion of accessory dwelling units. Section 1 also creates the accessory dwelling unit fee reduction
and encouragement grant program within the division. The purpose of this grant program is for the division to provide grants to supportive jurisdictions for offsetting costs incurred in connection with developing pre-approved accessory dwelling unit plans, providing technical assistance to persons converting or constructing accessory dwelling units, or waiving or reducing accessory dwelling unit associated fees and other required costs. Section 2 grants the Colorado economic development commission
the power to expend $8 million to contract with the Colorado housing and finance authority to operate and establish the following programs to benefit the residents of supportive jurisdictions:
•
An accessory dwelling unit loss reserve program that offers affordable loans for the construction or conversion of accessory dwelling units;
•
A program that allows for the buying down of interest rates on loans made in connection with the construction or conversion of accessory dwelling units;
•
A program that offers down payment assistance in connection with accessory dwelling units; and
•
A program through which the Colorado housing and finance authority offers direct loans in connection with the construction or conversion of accessory dwelling units. Section 3 prohibits a planned unit development resolution or ordinance for a planned unit development from restricting the permitting of an accessory dwelling unit more than the local law that applies to accessory dwelling units outside of the planned unit development. Section 4 states that any prohibition on accessory dwelling units
or the implementation of restrictive design or dimension standards by a unit owners' association in a supportive jurisdiction is void as a matter of public policy.
Status
Senate Committee on Local Government & Housing Refer Amended to Appropriations (04/23/2024)
The bill makes changes to the law relating to the foreclosure of a
unit owners' association's (HOA) lien on a homeowner's (unit owner's) home (unit) for unpaid HOA assessments.
Prior to the HOA turning over a delinquent account to collections
or to an attorney for legal action, the bill requires the HOA to send notice to the unit owner that free information about collections and foreclosures may be obtained through the department of regulatory agencies' HOA information and resource center. Further, before foreclosing on an HOA lien, the HOA shall provide notice to the unit owner that credit counseling is available at the unit owner's expense relating to the impact of foreclosure and options to avoid foreclosure.
The bill limits a court's award of reasonable attorney fees that an
HOA incurs when foreclosing on an HOA lien to $2,500. Further, currently, an executive board member, employee of the HOA's community association management company, and employees of the law firm representing the HOA, and such individuals' immediate family members, are prohibited from purchasing a foreclosed unit. The bill extends the individuals or entities prohibited from purchasing a foreclosed unit to include a community association management company representing the HOA and an individual who was a board member, employee of the HOA's community association management company, or employee of the law firm representing the HOA, or such individuals' immediate family members, during any of the 5-year period preceding the foreclosure sale, as well as a business entity owned by or affiliated with a community association management company or such individuals.
The bill establishes a minimum initial bid amount for the HOA's
sale at auction of a unit after foreclosure of the HOA's priority lien for assessments. The amount of the HOA's initial bid at auction must be at least the amount necessary to satisfy the HOA lien foreclosed, the liens for unpaid real estate taxes or other government taxes, and the first mortgage secured by the unit, as well as an amount equal to 60% of the unit owner's equity in the unit, as determined in accordance with the bill, unless the percentage of equity included in the bid amount is decreased by agreement of the unit owner and the HOA. The bill authorizes a different minimum bid amount if the unit owner does not have equity in the unit at the time of the foreclosure sale. Further, the HOA is required to include the minimum bid amount and the information necessary to calculate the minimum bid in the lis pendens filed with the county clerk and recorder in the county where the unit is located.
For purposes of notice of the sale of a unit at auction, the bill
amends the mailing list to include the unit owner's address listed in the county assessor's records for the unit, if that address is different from the property address, as well as the address of the unit owner's property manager employed by the unit owner, if that person is known to the HOA.
The bill applies to HOA liens foreclosed on or after October 1,
2024.
Status
House Third Reading Lost - No Amendments (04/16/2024)
Concerning a local government right of first refusal or offer to purchase qualifying multifamily property for the purpose of providing long-term affordable housing or mixed-income development.
The bill creates 2 property rights for local governments to certain
types of multifamily rental properties: A right of first refusal and a right of first offer. The right of first offer is temporary and terminates on December 31, 2029. For multifamily rental properties that are existing affordable housing, a local government has a right of first refusal to match an acceptable offer for the purchase of such property, subject to the local government's commitment to using the property as long-term affordable housing. Existing affordable housing is housing that is currently receiving federal or local financial assistance.
The bill requires the seller of such property to give notice to the
local government at least 2 years before the first expiration of an existing affordability restriction on the property and again when the seller takes certain actions as a precursor to selling the property. Upon receiving the notice indicating intent to sell the property or of a potential sale of the property, the local government has 14 calendar days to preserve its right of first refusal and an additional 60 calendar days to make an offer and must agree to close on the property within 120 calendar days of the acceptance of the local government's offer. If the price, terms, and conditions of an acceptable offer that has been communicated to the local government materially change, the seller must provide notice of the change within 7 days and the local government may exercise or re-exercise its right of first refusal. If the residential seller rejects an offer by the local government, the seller must provide a written explanation of the reasons and invite the local government to make a subsequent offer within 14 days.
For all other multifamily rental properties that are 20 years or older
and have not more than 100 units and not less than 5 units in urban counties and 3 units in rural and rural resort counties, a local government has a right of first offer. A seller of such property must provide notice of intent to sell the property to the local government before the seller lists the property for sale. After receipt of the notice, the local government has 14 days to respond by either making an offer to purchase the property and stating an intent to perform due diligence and enter into a contract to purchase the property within 45 days of the date that the residential seller's notice was received or waiving its right to purchase the property. The local government's offer is subject to the property being used or converted for the purpose of providing long-term affordable housing or mixed-income development. If the local government does not provide a response in the 14-day period, the right of first offer is waived and the residential seller can proceed with listing and selling the property to any third-party buyer. The residential seller has 14 days to accept or reject the local government's offer and, if the offer is accepted, the local government has 30 days to close the transaction.
In exercising its right of first refusal or first offer, the local
government may partner with certain other entities for financing of the transaction and may also assign either right to certain other entities that are then subject to all the rights and requirements of the local government in exercising either right. The bill allows certain sales of property to be exempt from either
the right of first refusal, the right of first offer, or both. The bill also allows the local government to waive its right of first refusal to purchase property qualifying for the right if the local government elects to disclaim its rights to any proposed transaction or for any duration of time.
The bill also requires the attorney general's office to enforce its
provisions and grants the attorney general's office, the local government, or a mission-driven organization standing to bring a civil action for violations of the right of first refusal or first offer established by the bill. If a court finds that a seller has materially violated the law with respect to the right of first refusal or first offer, respectively, the court must award a statutory penalty of not less than $30,000.
Status
Senate Second Reading Laid Over to 04/30/2024 - No Amendments (04/29/2024)
Under current law, a county assessor is required to complete an
assessment roll of all taxable property within the assessor's county and an accompanying abstract of assessment (abstract). Depending on whether a county has elected to use an alternate protest and appeal procedure to determine objections and protests concerning valuations of taxable property, the county assessor is required to complete the assessment roll and abstract on or before either August 25 or November 21 of every year.
During the first extraordinary session of the seventy-fourth general
assembly, which occurred in November 2023, the general assembly enacted Senate Bill 23B-001 (SB 001), and the governor signed SB 001 into law on November 20, 2023. SB 001 modified the valuation for assessment for residential real property for the 2023 property tax year and accordingly rendered inaccurate the abstracts completed on or before August 25, 2023, and November 21, 2023.
The bill requires a county assessor to prepare an updated abstract
and file a copy of that abstract, along with updated versions of other information that a county assessor is required to append to an abstract, with the property tax administrator no later than February 20, 2024.
Current law declares void any express waivers of or limitations on
the legal rights or remedies provided by the Construction Defect Action Reform Act or the Colorado Consumer Protection Act. Sections 1 and 4 make it a violation of the Colorado Consumer Protection Act to obtain or attempt to obtain a waiver or limitation that violates the aforementioned current law. Section 4 also requires a court to award to a claimant that prevails in a claim arising from alleged defects in a residential property construction, in addition to actual damages, prejudgment interest on the claim at a rate of 6% from the date the work is finished to the date it is sold to an occupant and 8% thereafter.
Current law requires that a lawsuit against an architect, a
contractor, a builder or builder vendor, an engineer, or an inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of construction of an improvement to real property must be brought within 6 years after the claim arises. Section 2 increases the amount of time in which a lawsuit may be brought from 6 to 10 years. Current law also provides that a claim of relief arises when a defect's physical manifestation was discovered or should have been discovered. Section 2 also changes the time when a claim of relief arises to include both the discovery of the physical manifestation and the cause of the defect. Section 3 voids a provision in a real estate contract that prohibits
group lawsuits against a construction professional. Section 5 of the bill prohibits governing documents of a common
interest community from setting different or additional requirements than those in current law for a construction defect action.
Status
Senate Second Reading Laid Over to 04/30/2024 - No Amendments (04/29/2024)
The bill defines a short-term rental unit as a building that is
designed for use predominantly as a place of residency by a person, a family, or families, is leased or available to be leased for short-term stays, and includes the land upon which the building is located. A commercial short-term rental unit is defined as a short-term rental unit that is not the owner's primary or secondary residence. A commercial short-term rental unit is classified as lodging
property, which is a subclass of nonresidential property for purposes of valuation for assessment. A short-term rental unit that is the owner's primary or secondary residence will continue to be classified as residential property.
On or before November 15, 2024, and on or before November 15
of each year thereafter, an owner of a short-term rental unit shall submit to the assessor of the county in which the property is located an affidavit signed by the owner, under the penalty of perjury in the second degree, identifying whether the property will continue to be used as a short-term rental unit in the following property tax year commencing on January 1, and if so, whether it will be the owner's primary or secondary residence. Absent contrary information, the assessor shall use the information in the affidavit to determine whether the property is a commercial short-term rental unit. If a commercial short-term rental unit is sold, the new owner shall submit an affidavit to the county assessor if the property will no longer be a commercial short-term rental unit for the classification of the property to change for the subsequent property tax year.
Status
House Committee on Finance Postpone Indefinitely (04/22/2024)
Section 1 of the bill establishes a category of local government: A
transit-oriented community. As defined in the bill, a transit-oriented community is either a local government that:
•
Is entirely within a metropolitan planning organization;
•
Has a population of 4,000 or more; and
•
Contains at least 75 acres of certain transit-related areas; or If the local government is a county, contains either a part of:
•
A transit station area that is both in an unincorporated part of the county and within one-half mile of a station that serves a commuter rail service or light rail service; or
•
A transit corridor area that both is in an unincorporated part of the county and is fully encompassed by one or more municipalities.
The bill requires a transit-oriented community to meet its housing
opportunity goal and relatedly requires the department to:
•
On or before July 31, 2024, publish a map that designates transit areas that transit-oriented communities shall use in calculating their housing opportunity goal; and
•
On or before December 31, 2024, publish models and guidance to assist a transit-oriented community in meeting its housing opportunity goal.
A housing opportunity goal is a zoning capacity goal determined
based on an average zoned housing density and the amount of transit-related areas within a transit-oriented community. The bill requires a transit-oriented community to meet its housing opportunity goal by ensuring that enough areas in the transit-oriented community qualify as transit centers. In order to qualify as a transit center, an area must:
•
Be composed of zoning districts that uniformly allow a net housing density of at least 15 units per acre;
•
Identify the net housing density allowed by law;
•
Meet a housing density established by the transit-oriented community;
•
Not include any area where local law exclusively restricts housing occupancy based on age or other factors;
•
Have an administrative approval process for multifamily residential property development on parcels that are 5 acres or less in size;
•
Be composed of contiguous parcels, if located partially outside of a transit area; and
•
Be located wholly within a transit area and not extend more than one-quarter mile from the edge of a transit area, unless the department allows otherwise.
A transit-oriented community is required to demonstrate that it has
met is housing opportunity goal by submitting a housing opportunity goal report to the department of local affairs (department). A housing opportunity goal report must include:
•
The housing opportunity goal calculation that the transit-oriented community used in determining its housing opportunity goal;
•
Evidence that the transit-oriented community has met its housing opportunity goal; •
A map that identifies the boundaries of any transit centers within the transit-oriented community;
•
If relevant, a plan to address potential insufficient water supplies for meeting the transit-oriented community's housing opportunity goal;
•
Affordability strategies that the transit-oriented community will implement in meeting its housing opportunity goal. The transit-oriented community shall select some of these strategies from the standard and long-term affordability strategies menus in the bill, and the transit-oriented community shall include an implementation plan describing how it will implement these strategies.
•
Any displacement mitigation strategies that the transit-oriented community has or will adopt from the displacement mitigation strategies menu in the bill and an implementation plan describing how it will implement these strategies.
Additionally, the bill requires a transit-oriented community to submit a progress report to the department every 3 years.
After receiving a transit-oriented community's housing opportunity
goal report, the department shall either approve the report or provide direction to the transit-oriented community for amending and resubmitting the report and require the transit-oriented community to resubmit the report. If a transit-oriented community does not submit a housing opportunity goal report to the department on or before December 31, 2026, or if the department does not approve a transit-oriented community's housing opportunity goal report, the department will designate the transit-oriented community as a nonqualified transit-oriented community. Similarly, if a transit-oriented community does not submit a progress report to the department every 3 years, or if the department does not approve a transit-oriented community's progress report, the department will designate the transit-oriented community as a nonqualified transit-oriented community.
The state treasurer shall transfer any money that a nonqualified
transit-oriented community would have otherwise been allocated from the highway users tax fund instead to the transit-oriented communities highway users tax account (account). The department shall not use any money in the account that is attributable to a specific nonqualified transit-oriented community until 180 days after the transit-oriented community became a nonqualified transit-oriented community. If a nonqualified transit-oriented community no longer qualifies as a nonqualified transit-oriented community during that 180-day period, the treasurer shall issue a warrant to the transit-oriented community for the amount of money that was diverted from the transit-oriented community to the account. If the department does not approve a transit-oriented community's
housing opportunity goal report on or before December 31, 2027, the department may seek an injunction requiring the transit-oriented community to comply with the requirements of the bill.
In addition to designating an area as a transit center for purposes
of meeting a housing opportunity goal, the bill allows local governments to designate an area as a neighborhood center so long as the local government ensures that the area:
•
Has an average zoned housing density sufficient to increase public transit ridership;
•
Has an administrative approval process for multifamily residential property development on parcels that are no larger than a size determined by the department;
•
Has a mixed-use walkable neighborhood; and
•
Satisfies any other criteria required by the department.
The bill also creates the transit-oriented communities infrastructure
fund grant program (grant program) within the department. The purpose of the grant program is to assist local governments in upgrading infrastructure within transit centers and neighborhood centers. In administering the grant program, the department shall prioritize grant applicants based on the information in the reports described in the bill. Grants from the grant program are awarded from money in the transit-oriented communities infrastructure fund (fund). The fund consists of gifts, grants, and donations along with money that the general assembly may appropriate or transfer to the fund and money in the account described in the bill. The fund is continuously appropriated. On July 1, 2024, the state treasurer shall transfer $35 million from the general fund to the fund. Section 2 prohibits a planned unit development resolution or
ordinance for a planned unit development that is adopted on or after the effective date of the bill and that applies within a transit-oriented center or neighborhood center from restricting the development of housing more than the local law that applies to that transit-oriented center or neighborhood center. Section 3 states that any restriction by a unit owners' association
within a transit-oriented center or neighborhood center on the development of housing that is adopted on or after the effective date of the bill and is beyond the local law that applies to that transit-oriented center or neighborhood center is void as a matter of public policy. Sections 4 and 5 require the Colorado housing and financing
authority to allocate tax credits under the state affordable housing tax credit to qualified housing developments within transit centers.
Status
Introduced In Senate - Assigned to Local Government & Housing (04/18/2024)
Concerning the rights of a unit owner in a common interest community in relation to the collection of amounts owed by the unit owner to the common interest community.
In common interest communities for real property, current law
allows a unit owners' association (association) to require, without starting a legal proceeding, a unit owner to reimburse the association for collection costs, attorney fees, or other costs resulting from the owner failing to timely pay assessments or other money owed. The bill limits the reimbursement amount to 50% of the original money owed.
Current law allows the association to require, without starting a
legal proceeding, a unit owner to reimburse the association for collection costs and attorney fees resulting from the owner failing to obey the bylaws or rules of the association. The bill limits the reimbursement amount to 50% of the actual cost the association incurred for the failure to obey.
Current law requires a court to award an association reasonable
attorney fees, costs, and collection costs in an action in which the association seeks to collect unpaid assessments or enforce or defend the association's bylaws or rules and the association prevails in the matter. The bill limits the award to 50% of the balance owed to the association.
Current law grants an association a lien on the unit for amounts
owed to the association by the unit owner. The bill prohibits foreclosing on the lien until:
•
The association has: •
Obtained a personal judgment against the unit owner in a civil action;
•
Attempted to bring a civil action against the unit owner but was prevented by the death of or incapacity of the unit owner; or
•
Attempted to bring a civil action against the unit owner but the association was unable to serve the unit owner within 180 days; or
•
The unit owner is in a bankruptcy civil action.
Current law requires the association to attempt to enter into a
payment plan to collect amounts due from a unit owner. The bill prohibits foreclosure on the lien if the unit owner is in compliance with the payment plan.
The bill creates a right of redemption following certain involuntary
transfers of a unit to the association or a foreclosure purchaser for 180 days following the transfer. During the 180 days, the foreclosure purchaser or association is prohibited from selling the unit. The following people have the right of redemption in order of priority:
•
The unit owner;
•
A tenant of the unit;
•
A nonprofit entity whose primary purpose is the development or preservation of affordable housing;
•
A community land trust;
•
A cooperative housing corporation; and
•
The state of Colorado or a political subdivision of the state of Colorado.
The redeemer may send a notice of intent to exercise the right of redemption. Upon receiving the notice of intent, the foreclosure purchaser or association is prohibited for a specified time from transferring the property to an authorized redeemer that has lower priority than the authorized redeemer that sent the notice.
To redeem a unit, the redeemer must reimburse the foreclosure
purchaser or association in accordance with the standards set by the bill. Failure to execute a deed after redemption subjects the owner to liability plus attorney fees. Procedures are set for exercising the right of redemption and for recording deeds, affidavits, or certificates of compliance concerning the right of redemption with the county clerk and recorder. Filing an affidavit or certificate of compliance with the county clerk and recorder without a reasonable basis subjects the person to liability and attorney fees.
If a redeemer makes partial payment, but fails to pay all amounts
necessary to redeem the unit before the redemption period expires, the association or foreclosure purchaser shall refund the partial payment on or before 30 days after the expiration of the redemption period.
Status
Senate Third Reading Passed - No Amendments (04/29/2024)
The bill expands the affordable housing tax credit by increasing
the credit amounts that the Colorado housing and finance authority (authority) may allocate to qualified taxpayers by the following amounts:
•
$20,000,000 for credits allocated in 2024;
•
$20,000,000 for credits allocated in 2025;
•
$20,000,000 for credits allocated in 2026; •
$16,000,000 for credits allocated in 2027;
•
$16,000,000 for credits allocated in 2028;
•
$16,000,000 for credits allocated in 2029;
•
$10,000,000 for credits allocated in 2030; and
•
$10,000,000 for credits allocated in 2031.
The bill also accelerates the credit by requiring that a qualified taxpayer claim 70% of the total amount of the credit awarded by the authority in the first year of the credit period and claim 6% of the total amount of the credit awarded by the authority in each of the second through sixth years of the credit period.
Status
House Committee on Finance Refer Unamended to Appropriations (04/11/2024)
Legislative Oversight Committee Concerning Tax Policy. The
bill establishes that, for property tax years commencing on or after January 1, 2026, a short-term rental unit, which is an improvement that is designated and used as a place of residency by a person, family, or families, but that is also leased for overnight lodging for less than 30 consecutive days in exchange for a monetary payment (short-term stay) and is not a primary residence, and the land upon which the improvement is located, may be classified as either residential real property or lodging property. If, during the previous property tax year, a short-term rental unit was leased for short-term stays for more than 90 days, then it is classified as lodging property. Otherwise, it is classified as residential real property. Actual value for a short-term rental unit that is classified as lodging property is to be determined solely by application of the market approach to appraisal.
The bill also specifies, with an exception for a property that
qualifies as a bed and breakfast, that a building designed for use predominantly as a place of residency by a person, a family, or families but that is actually used, or available for use, to provide short-term stays only is a hotel and motel.
For purposes of applying the classification of either residential or
lodging to a short-term rental unit, annually, the assessor is required to send notice to owners of short-term rental units of the number of days during the prior property tax year that the assessor has determined the property was leased for short-term stays. An owner must sign and return the notice and, if the owner disputes the number of days the property was leased for short-term stays, the owner must provide evidence demonstrating a different number of days the property was leased for short-term stays.
Additionally, the property tax administrator is required to establish
and administer a pilot program to develop a statewide database and uniform reporting system to track short-term rental units.
Status
Senate Committee on Finance Postpone Indefinitely (04/16/2024)
In the Construction Defect Action Reform Act (act), Colorado
law establishes procedures for bringing a lawsuit for a construction defect (claim). Section 2 of the bill clarifies that a person that has had a claim brought on the person's behalf is also considered a claimant, and therefore, the act applies to the person for whom the claim is brought. Sections 3 and 6 create a right for a construction professional to remedy a claim made against the construction professional by doing remedial work or hiring another construction professional to perform the work. The following applies to the remedy:
•
The construction professional must notify the claimant and diligently make sure the remedial work is performed; and
•
Upon completion, the claimant is deemed to have settled and released the claim, and the claimant is limited to claims regarding improper performance of the remedial work.
Currently, a claim may be held in abeyance if the parties have
agreed to mediation. Section 3 also adds other forms of alternative dispute resolution for which the claim would be held in abeyance. Alternative dispute resolution is binding. If a settlement offer of a payment is made and accepted in a claim, the payment constitutes a settlement of the claim and the cause of action is deemed to have been released, and an offer of settlement is not admissible in any subsequent action or legal proceeding unless the proceeding is to enforce the settlement.
To bring a claim or related action, section 4 requires a unit owners'
association (association) to obtain the written consent of at least two-thirds of the actual owners of the units in the common interest community. The consent must contain the currently required notices, must be signed by each consenting owner, and must have certain attestations.
Under the act, a claimant is barred from seeking damages for
failing to comply with building codes or industry standards unless the failure results in:
•
Actual damage to real or personal property;
•
Actual loss of the use of real or personal property;
•
Bodily injury or wrongful death; or
•
A risk of bodily injury or death to, or a threat to the life, health, or safety of, the occupants. Section 5 requires the actual property damage to be the result of a building code violation and requires the risk of injury or death or the threat to life, health, or safety to be imminent and unreasonable.
Under current law, an association may institute, defend, or
intervene in litigation or administrative proceedings in its own name on behalf of itself or 2 or more unit owners on matters affecting a common interest community. For a construction defect matter to affect a common interest community, section 7 requires that the matter concern real estate that is owned by the association or by all members of the association. Section 7 also establishes that, when an association makes a claim
or takes legal action on behalf of unit owners when the matter does not concern real estate owned by the association:
•
The association and each claim are subject to each defense, limitation, claim procedure, and alternative dispute resolution procedure that each unit owner would be subject to if the unit owner had brought the claim; and
•
The association has a fiduciary duty to act in the best interest of each unit owner.
Status
Senate Third Reading Passed with Amendments - Floor (04/11/2024)
For property tax years commencing on or after January 1, 2025, the
bill creates a new subclass of residential real property called qualified-senior primary residence real property, which includes residential real property that as of the assessment date is used as the primary residence of an owner-occupier, as defined in the bill, if:
•
The owner-occupier applies to the county assessor for the classification in the manner required by the bill;
•
The owner-occupier previously qualified for the property tax exemption for qualifying seniors (exemption) for a different property for a property tax year commencing on or after January 1, 2016, and does not qualify for the exemption for the current property tax year; and
•
The circumstances that qualify the property for the classification have not changed since the filing of the application.
The bill also: •
Classifies property that might otherwise be classified as multi-family residential real property that contains a unit that qualifies as qualified-senior primary residence real property as multi-family qualified-senior primary residence real property and treats such property as qualified-senior primary residence real property;
•
Sets the valuation for assessment for qualified-senior primary residence real property at 7.15% of the amount equal to the actual value of the property minus the lesser of $100,000 or the amount that causes the valuation for assessment of the property to be $1,000;
•
Establishes the processes by which an owner-occupier of residential real property may apply to have the owner-occupier's primary residence classified as qualified-senior primary residence real property and by which such an application is approved or denied;
•
Requires the state to reimburse local governmental entities that levy property taxes for total property tax revenue lost due solely to the reduced valuation for assessment of qualified-senior primary residence real property as compared to the valuation for assessment of other residential real property and specifies the process by which the proper amount of reimbursement is calculated and reimbursement is made; and
•
For state fiscal years in which excess state revenues are required to be refunded pursuant to the Taxpayer's Bill of Rights, establishes the reimbursement to local governmental entities as a means of refunding such excess state revenues.
Status
House Committee on Finance Refer Amended to Appropriations (04/18/2024)
Section 1 of the bill adds disclaimers to the Construction Defect
Action Reform Act that:
•
Are not intended to impose an obligation upon construction professionals to provide an express or implied warranty;
•
Apply to implied warranty claims; and
•
Do not amend or change the terms of or limitation upon an express or implied warranty.
The bill states that a construction professional is not vicariously
liable for the acts or omissions of a licensed design professional for any construction defects.
Under current law regarding common interest communities, a unit
owners' association (association) must follow a process to obtain the approval of a majority of the unit owners before initiating a construction defect action (action). The approval process:
•
Requires that a meeting be held to consider whether or not to bring the action (meeting);
•
Requires the association to give the unit owners information about the proposed action and certain notices and disclosures before the meeting;
•
Allows the association to amend or supplement the proposed action after the meeting; and
•
Allows the association to omit nonresponsive votes from the total vote count, but allows construction professionals to challenge whether the association made diligent efforts to contact the nonresponsive unit owners.
In connection with this process, section 2:
•
Requires the association to give notice to unit owners and reobtain unit owner approval to amend or supplement a proposed action after the meeting;
•
Raises the number of unit owners who need to approve the action from a majority to a two-thirds majority;
•
Requires a unit owner to sign the unit owner's vote;
•
Requires the association to give the construction professionals a list of nonresponsive unit owners; and
•
When unit owners' nonresponsiveness is challenged in court: •
Requires the court to stay the action against the construction professionals and requires the notification and voting process to be performed again unless the court holds that the association diligently contacted the unit owners; and
•
Requires the association to disclose to the construction professionals all information relevant to the unit owners' nonresponsiveness within 21 days after the challenge has been filed.
Status
Introduced In Senate - Assigned to Local Government & Housing (02/05/2024)
Concerning the conservation easement income tax credit, and, in connection therewith, extending the conservation easement oversight commission and the certified holder program indefinitely, increasing the limit on conservation easement income tax credits available to donors in one calendar year, allowing multiple transfers of conservation easement income tax credits, and making an appropriation.
Under current law, the conservation easement oversight
commission (commission) and the certified holder program (program) are repealed on July 1, 2026. The bill eliminates the repeal dates to extend the commission and program indefinitely.
There is currently a cap of $45 million for the total value of
conservation easement income tax credits (credits) that may be claimed by and credited to donors of a conservation easement in one calendar year. Credits filed after the cap is reached are placed on a wait list for the next calendar year. The bill increases the cap to $75 million beginning in calendar year 2025.
Current law provides that partnerships, S corporations, or other
similar entities (pass-through entities) may not be transferees of a credit. The bill allows pass-through entities to be transferees of a credit beginning on January 1, 2025. The bill also allows insurance companies to purchase credits to offset insurance premium taxes.
Currently, a credit may be transferred once, in whole or in part,
from a donor to a transferee. The bill allows a transferee to transfer a credit to a subsequent transferee beginning with the income tax year starting on January 1, 2025.
Status
House Committee on Finance Refer Amended to Appropriations (04/29/2024)
The bill ensures that the calculation of the actual value of certain
real property used for the purpose of establishing a base valuation for valuation for assessment for the 2025 property reassessment cycle but not for the purpose of determining property tax liability for the 2021 and 2023 property tax reassessment cycles does not increase by more than 6% from 2020 levels in the 2021 reassessment cycle and more than 6% from 2021 levels in the 2023 reassessment cycle. The actual value for the 2025 reassessment cycle may not increase by more than 6% over the 2023 levels. After the 2025 reassessment cycle, property values may increase no more than 6% from the preceding assessment cycle during every reassessment cycle thereafter, for certain real property that does not have an unusual condition that results in an increase in actual value.
Status
Senate Committee on Finance Postpone Indefinitely (02/27/2024)
