Enforcement of covenants requiring alternative dispute resolution for construction defect claims.
Denver Revised Municipal Code § 10-204
in effectSec. 10-204. - Enforcement of covenants requiring alternative dispute resolution for construction defect claims.
Whenever a declaration in a common interest community requires any form of alternative dispute resolution for construction defect claims asserted by the association, by the executive board, or by any unit owners, and the declaration expressly prohibits any future amendment to the declaration that would modify or eliminate the requirement for alternative dispute resolution without the consent of the declarant, then any attempt to modify or eliminate the requirement for alternative dispute resolution by the association, by the executive board or by the unit owners absent the consent of the declarant shall be deemed ineffective, an abrogation of a contractual obligation, and void as against public policy. This section shall apply if and only if:
(1) The declaration contains a provision substantially in the following form:
"The terms and provisions of the Declaration requiring alternative dispute resolution for construction defect claims inure to the benefit of Declarant, are enforceable by Declarant and shall not ever be amended without the written consent of Declarant and without regard to whether Declarant owns any portion of the Real Estate at the time of such amendment. BY TAKING TITLE TO A UNIT, DECLARATION REQUIRING ALTERNATIVE DISPUTE RESOLUTION OF CONSTRUCTION DEFECT CLAIMS ARE A SIGNIFICANT INDUCEMENT TO THE DECLARANT'S WILLINGNESS TO DEVELOP AND SELL THE UNITS AND THAT IN THE ABSENCE OF THE ALTERNATIVE DISPUTE RESOLUTION PROVISIONS CONTAINED IN THE DECLARATION, DECLARANT WOULD HAVE BEEN UNABLE AND UNWILLING TO DEVELOP AND SELL THE UNITS FOR THE PRICES PAID BY THE ORIGINAL PURCHASERS."
and,
(2) The provisions of the declaration requiring alternative dispute resolution for construction defect claims inures to the benefit of other development parties in addition to the declarant; and
(3) The provisions of the declaration requiring alternative dispute resolution for construction defect claims are consistent with the requirements of the Colorado Uniform Arbitration Act, Part 2 of Article 22 of Title 13, C.R.S., including, but not limited to, the requirement that any mediator or arbitrator selected to preside over a construction defect claim must be a neutral third party as requirement by § 13-22-211(2), C.R.S., and that the mediator or arbitrator shall made the disclosures required by C.R.S. § 13-22-212; and
(4) The provisions of the declaration requiring alternative dispute resolution for construction defect claims require that any mediation or arbitration must be held at a mutually agreeable location within the City and County of Denver; and
(5) The provisions of the declaration requiring alternative dispute resolution for construction defect claims requires that any arbitration shall be governed by the substantive law of Colorado with regard to any remedy granted, and if the remedy is substantially affected by the arbitrator's failure to follow the substantive law of Colorado, a court may vacate or refuse to confirm the arbitrator's award on that basis.
(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_S10-204ENCOREALDIRECODECLFetched: 10/27/2026