SB 13-052: Transit-Oriented Development Claims Act of 2013
“The legislation, as initially proposed, creates a separate process that an association must follow in order to address alleged construction defects that arise out of the fact that the community is classified as a transit-oriented development. A transit-oriented development has been defined in the bill as the “design, supervision, inspection, construction, or observation of construction of any multi-family residential or mixed-use project within one-half mile of any commuter rail stop, light rail stop, or commuter bus stop.” Among the biggest changes proposed is the requirement that the parties are subject to mandatory binding arbitration instead of proceeding with any court action. In addition, owners have a right to object the contractor selected by the developer to repair the claimed damages but do not have a right to object the work being completed. If fees to complete the repairs are higher due to an objection of the contractor, those fees will be paid by owners.”
Firmin, David. HindmanSanchez Legal Website 23 January 2013.