SB 25-131

Senate Bill 25-131, titled "Reducing the Cost of Housing," modifies Colorado's construction defect laws and rental regulations. It restricts homeowners from filing construction defect claims unless there is actual damage or a significant risk to health and safety. The bill also rolls back recent changes to tenant protections by removing requirements for mandatory mediation before evictions and prohibiting landlords from waiving these protections in lease agreements. Additionally, it mandates that future energy codes be cost-effective starting January 1, 2026. The bill has been signed into law, meaning its provisions will now go into effect as specified. This affects homeowners, construction companies, tenants, landlords, and local governments responsible for setting building standards.

Official Summary

Current law restricts construction defect negligence claims unless the negligence claim arises from a construction defect which results in actual damage to or 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 of the residential real property. Section 1 of the bill changes this restriction so that all construction defect claims are restricted unless the claim arises from a construction defect that causes: Actual damage to real or personal property caused by the violation of a building code, manufacturer's instructions, or industry standard; Actual loss of the use of real or personal property; Bodily injury or wrongful death; or An imminent and unreasonable risk of bodily injury or death to, or an imminent or unreasonable threat to the life, health, or safety of, the occupants of the residential real property. Sections 2 through 12 modify existing warranty of habitability laws by repealing recent updates and reenacting the laws as they were prior to the updates. The modifications include repealing certain procedures for both landlords and tenants when a warranty of habitability claim is alleged by the tenant; repealing a rebuttable presumption that a landlord failed to remedy an uninhabitable premises in certain conditions; modifying requirements regarding notice given to a landlord of an uninhabitable premises; and modifying other laws related to rental agreements, records, and procedures for remedying uninhabitable premises. Section 13 repeals law that allows the attorney general to independently initiate and bring actions to enforce laws relating to the warranty of habitability. Section 14 makes a conforming change to law governing county courts' jurisdiction over cases involving tenant's remedies in warranty of habitability cases and tenant's remedies in cases of unlawful removal. Section 15 modifies the statement included in a summons issued to a defendant in a court proceeding regarding an action for possession brought by a landlord. Sections 16 through 20 repeal provisions related to evictions of residential tenants, including repealing: Requirements that a landlord and residential tenant participate in mandatory mediation prior to commencing an eviction action if the residential tenant receives cash assistance; A prohibition on a law enforcement officer's ability to execute a writ of restitution until 30 days after the entry of judgment if the residential tenant receives cash assistance; Requirements that a written demand include a statement that a residential tenant who receives cash assistance has a right to mediation prior to the landlord filing an eviction complaint; Requirements that a written rental agreement include a statement that current law prohibits source of income discrimination and requires a nonexempt landlord to accept any lawful and verifiable source of money paid directly, indirectly, or on behalf of a person; and Requirements that prohibit a written rental agreement from including a waiver of mandatory mediation or a clause that allows a landlord to recoup any costs associated with mandatory mediation. Sections 21 and 22 require any provision of any energy code adopted by a county or municipality on or after January 1, 2026, to be cost effective. "Cost effective" means, using the existing energy efficiency standards and requirements as a base of comparison, that the economic benefits of the proposed energy efficiency standards and requirements will exceed the economic costs of those standards and requirements based upon an incremental multi-year analysis.(Note: This summary applies to this bill as introduced.)