Colorado

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Colorado

HOMEOWNER PROTECTION ACT PASSED BY HOUSE

On March 30, 2007, the Colorado House of Representatives passed HB 1338, the Homeowner Protection Act that prohibits homebuilders from including provisions in sales contracts that waives home buyers rights to seek damages for construction defects. According to the bill’s sponsor, Jack Pommer (D-Boulder), homebuilders have been including warranty escape clauses in contracts that give home buyers little or no recourse. CAR has opposed HB 1338 because of concerns that the language could be in conflict with existing consumer protection law and potentially affect Realtors®. CAR will be seeking amendments to the bill during as it moves through the Colorado Senate.

RITTER BACKED MILL LEVY FREEZE GETS CHILLY SENATE REVIEW

Governor Bill Ritter is backing a bill proposed by Senator Sue Windels (D-Arvada) that would freeze residential mill levies in 174 school districts, a move that would generate about $68 million in new revenue. The funds would initially be used to pay for full day kindergarten programs. On a 33-1 vote in March, Senators refused to add the proposal to SB 199, the proposed School finance Act. Nonetheless, Ritter is still pushing the freeze and expects the House of Representatives to approve it in April. The freeze proposal is creating controversy since it appears to violate a couple of provisions of the 1992 Taxpayer Bill of Rights (TABOR) that mandates mill levies are adjusted downward when tax revenues increase, and that voters must vote on tax increases. Ritter and Windels say the proposal does not violate TABOR because the 174 affected school districts have already voted to exempt themselves from some of TABOR’s provisions, and that voter approval is not required since the legislation does not increase the tax rate even though homeowners will pay more in taxes.

CAR SUPPORTS LICENSING AND REGULATION OF MORTGAGE BROKERS

CAR’s legislative policy committee has come out in support of SB—203 that, if enacted would change the regulatory framework for mortgage brokers in Colorado from registration to licensing. The bill defines the rules for revocation or suspension of a license, provides for fines and admonition for violation of rules. In addition to regulating mortgage brokers, the bill also requires delivery of all documents related to a mortgage loan on residential property be delivered to the borrower at least two business days before closing. And, gives the borrower a qualified right to rescind the transaction if any material term of the transaction is misstated or restated in such documents. Thee 22 page bill also contains additional administrative and performance requirements. The bill is scheduled for hearing in the Senate State, Veterans and Military Affairs Committee.

STATEWIDE TRANSPORTATIONN SUMMMIT ON FOR APRIL 5

Transportation experts, planners, advocates, government officials and community transportation leaders will gather at the Colorado Convention Center on April 5 for a day-long summit. Governor Bill Ritter is convening the Summit to bring together a broad range of stakeholders to identify long-term sustainable funding options to support a statewide multimodal transportation system. Summit details will be available latter this month.