Anybody following the Denver housing market has noticed a very large decline in new for-sale and condo development. In fact, only one Central Denver condo project, containing 80 units, has been completed in recent years. That means only 0.6% of all residential units being built in and around Downtown Denver were condos. With the simple rules of supply and demand, the for-sale supply is at an all time low with demand rising causing record high average home prices.
So what is Council Bill 15-0811 and how is it going to fix the supply flow of condos in Denver?
From the Downtown Denver Partnership:
- Limit the manner in which technical building violations can be used in construction defects litigation;
- Support covenants that require alternative dispute resolution of construction defects claims; and
- Institute a majority vote process with all association homeowners before legal action can go forward.
From the Homeownership Opportunity Alliance:
The Colorado General Assembly last session failed to address the defect in state law that exposes homeowners and builders to a high risk of expensive, time-consuming litigation—despite broad bipartisan and coalition support.
This defect means that Denver’s housing market has not kept pace with the demand for affordable and attainable homes among first-time homebuyers and others with a modest income. Rising housing costs and soaring rents threaten to price many Denver residents out of the market. Yet, condos, which have always provided a pathway to homeownership, now represent just 3.4 percent of new homes in the Denver metro housing market.
Now it’s up to the City and County of Denver to address this issue at the local level—like Aurora, Lakewood and seven other communities. Denver City Council Bill 15-0811 offers a balanced approach that will create a fair legal resolution for construction issues. Importantly, the city’s approach will not take away a homeowner’s or community’s rights to seek a resolution to a construction issue.
Here is how you can show your support and help get this bill passed:
- Send a letter to your City Council member. Head on over to the Homeownership Opportunity Alliance to help you get started.
- Attend the Denver City Council courtesy public hearing Monday, November 16th at 5:30pm at the City and County Building in the City Council Chambers, 1437 Bannock Street Room 451.
Balanced for-sale and rental development is critical for any successful housing market and Denver’s great future. We hope to see you Monday!