Informed consent for construction defect claims associated with common interest communities.
Denver Revised Municipal Code § 10-203
in effectSec. 10-203. - Informed consent for construction defect claims associated with common interest communities.
(a) Additional information required in notice to unit owners. Before the executive board of a common interest community institutes any legal action involving a construction defect claim, the executive board shall include in the notice to unit owners required by C.R.S. § 38-33.3-303.5, the following additional information to more fully advise the unit owners of the nature of the action and the relief sought, in substantially the following form:
(1) If the association does not file a claim by (DATE), the claim cannot be filed at all under the applicable statute of limitations, statute of repose, or both.
(2) If the association prevails, the executive board expects that the association may recover from the defendant(s) an amount between $___ and $___.
(3) The executive board intends to enter into a contingency fee arrangement with the attorneys representing the association, under which, of the amount the association recovers from the defendant(s), the attorneys will be paid a contingency fee equal to ___ percent of the (net) (gross) recovery. The executive board estimates that, in addition to the attorney fees, the association will incur costs totaling approximately $___ for consultants, expert witnesses, depositions, filing fees, and other expenses of litigation.
(4) If the association makes a claim and does not win, the executive board expects that witness fees, and other costs (the amount listed in paragraph (3), above) plus defendant's consultant fees, expert witness fees, and court costs.
(5) If the association does not recover from the defendant(s), it may have to pay to repair or replace the claimed defective construction work.
(6) Until the claimed defective construction work is repaired or replaced, or until the construction defect claim is concluded, the market value of the affected units will be adversely affected.
(7) Until the claimed defective construction work is repaired or replaced, or until the claim is concluded, owners of the affected units will have difficulty refinancing and prospective buyers of the affected units will have difficulty obtaining financing. In addition, certain federal underwriting standards or regulations prevent refinancing or obtaining a new loan in projects where a construction defect is claimed. In addition, certain lenders as a matter of policy will not refinance or provide a new loan in projects where a construction defect is claimed.
(b) Timing for delivery of notice to unit owners. The notice to unit owners required by C.R.S. § 38-33.3-303.5, including the additional information set forth in subsection (a) of this section, must be sent at least sixty (60) days before service of the notice of a construction defect claim under the Colorado Construction Defect Action Reform Act, C.R.S. § 13-20-803.5.
(c) Majority consent of unit owners required. A construction defect claim is not authorized unless the executive board obtains the signed, written consent from owners, other than the declarant, of units to which a majority of the total votes, excluding votes allocated to or units owned by the declarant, in the association are allocated, which written consent acknowledges that the owner has received the notice required under C.R.S. § 38-33.3-303.5, including additional information set forth in subsection (a) of this section, and approves of the executive board's proposed action.
(d) Preservation of privileged information. Nothing in this section shall be construed to:
(1) Require the disclosure in the notice or disclosure to a unit owner of attorney-client communications or other privileged communication.
(2) Permit the notice to serve as a basis for any person to assert the waiver of any applicable privilege or right of confidentiality resulting from, or to claim immunity in connection with, the disclosure of information in the notice.
(Ord. No. 811-15, § 1, 11-23-15)
Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH10BUBURE_ARTXIICODECLCOIN_S10-203INCOCODECLASCOINCOFetched: 10/27/2026