Governor Polis is moving fast this May, and doesn’t seem to be letting up anytime soon.
Today, we were on the ground in Central Park as Polis signed HB25-1272 into law: a long-awaited fix to Colorado’s construction defect laws that could bring thousands of new for-sale condos and townhomes to the market.
Officially titled Construction Defects & Middle Market Housing, the new law targets one of the biggest bottlenecks in Colorado’s housing pipeline, lawsuits that have kept developers from building affordable ownership housing.
“This new law will lead to thousands of new condos being built across our state,” Polis said. “We’re unlocking more accessible housing for Coloradans to buy as a starter home.”
HB25-1272 gives builders the option to follow enhanced construction standards—including third-party inspections and warranties—in exchange for legal protections. At the same time, homeowners still have avenues for recourse, but must now attempt to mitigate defects before filing a lawsuit.
Other key changes are that HOAs now need 65% owner approval (up from 50%) before suing, certificates of occupancy create a presumption of no defects, and warranties must meet minimum timelines: 1 year for workmanship, 2 for mechanical systems, 6 for structure.
The goal is to bring back the missing middle. Condos used to be a gateway to homeownership, but in recent years, developers stopped building them altogether.
This new law could finally change that.