SETTLEMENT OR REPAIR

Colorado Springs City Code § 6.14.203

in effect

6.14.203: SETTLEMENT OR REPAIR: Within thirty (30) days after the initial inspection or testing is completed, the builder may, in writing, offer to settle the claim by payment of a sum certain and/or provide a notice that the builder will repair the construction defects. If the builder elects to repair the construction defects, it has the right to do so and the homeowners' association and affected homeowners may not, directly or indirectly, impair, impede or prohibit the builder from making repairs. For purposes of this article, an "affected homeowner" means a unit owner with alleged construction defects to, or affecting the use and enjoyment of, any portion of such owner's unit that is not commonly owned or possessed. Any notice to repair shall offer to compensate the homeowners' association and any affected homeowner for the reasonable expenses, if any, which will be incurred by the homeowners' association or affected homeowners, such as, without limitation, expenses for lodging, moving, and storage. Any notice of repair shall include: a) an explanation of the particular construction defect being repaired, b) the method by which the defect is being repaired, c) a reasonable completion date for the repair work, d) the contact information for any contractors the builder intends to employ to complete the repairs, e) a statement that the builder waives and will not assert any statute of limitation or repose as a defense to any action that could be brought by the homeowners' association or affected homeowners within the time prior to the actual completion, inspection, and acceptance of the repairs under subsection F of this section, and any warranty period provided hereunder, and f) a statement that the builder indemnifies and will hold harmless the homeowners' association and affected homeowners from any lien or claim for materials or labor. A. Within fifteen (15) days after receipt of a builder's offer to settle the claim by payment of a sum certain, or such longer period, if any, stated in the offer, the homeowners' association may, to the extent duly authorized, accept such offer by delivering to the builder written acceptance thereof. Moreover, the homeowners' association, to the extent duly authorized, may make a written offer to the builder to settle the claim by payment of a sum certain at any time prior to the builder's commencement of repair, with acceptance to be made by the builder in writing within fifteen (15) days after the offer, or such longer period, if any, stated in the offer. The monetary settlement shall be paid in accordance with the terms of the accepted offer. Neither the builder nor the homeowners' association shall be obligated to make or accept a settlement by payment of a sum certain. Any offer to settle for payment of a sum certain shall be made and accepted in full settlement and release of all claims with respect to, or arising out of, the alleged construction defects. An offer to settle for payment of a sum certain may, to the extent permitted by law, apply to construction defects that are discovered after settlement; moreover, such offer may require execution of a settlement agreement, in recordable form, to be filed in the office of the Clerk and Recorder of El Paso County, Colorado, so that constructive notice of a binding settlement may be provided to persons acquiring any interest in the subject property. B. Within fifteen (15) days after receipt of the builder's notice to repair, a homeowners' association may deliver to the builder a written objection to the proposed repairs if it believes in good faith will not remedy the alleged construction defects. The builder may elect to modify its proposal, in whole or in part, in accordance with the objection, and proceed with the modified scope of work, or may proceed with the scope of work set forth in the original notice to repair. Provided the builder notifies the homeowners' association in writing at least five (5) days before the required completion date that the repair work will not be completed on time, the builder shall be entitled to one extension of the completion date, not to exceed forty five (45) days. C. The homeowners' association and any affected homeowner must cooperate with the builder to schedule any repair work. D. If the homeowners' association or affected homeowners, directly or indirectly, impair, impede, or prohibit the builder from making any repairs, the builder may seek such relief as is available under Colorado law. E. If the builder, within the time required, fails: 1) to provide an offer to settle by payment of a sum certain or notice to repair in compliance with this section, 2) to make payment of a monetary settlement as provided in an accepted offer to settle, or 3) to complete repairs within the time set forth in the notice to repair with any applicable extension, or as otherwise agreed, the homeowners' association shall be released from the requirements of this part and may proceed with the filing of any available action against the builder, subject to applicable notice and consent as required by sections 6.14.104 and 6.14.105 of this article. F. Within three (3) days after substantial completion of the repairs, the builder shall notify the homeowners' association of such substantial completion. The homeowners' association shall have forty five (45) days following the substantial completion date to have the premises inspected to verify that the repairs are complete and satisfactorily resolve the alleged construction defects. A homeowners' association or affected homeowner who believes in good faith that the repairs do not resolve the construction defects may proceed with the filing of an available action, subject to applicable notice and consent as required by sections 6.14.104 and 6.14.105 of this article. G. The builder and homeowners' association may by written mutual agreement alter the time requirements and procedures set forth in this part. (Ord. 15-93)

Source: City of Colorado Springs, Colorado, City Code and City Charter (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/coloradospringsco/latest/coloradosprings_co/0-0-0-7732Fetched: 11/1/2026