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'Homeowner Protection' measure becomes law

Signing of bill wraps up weeks of contention

April M. Washington And John Rebchook, Rocky Mountain News

Published April 21, 2007 at midnight

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Gov. Bill Ritter on Friday signed into law a bill that is intended to protect home buyers from shoddy construction.

"At the end of the day, Gov. Ritter felt the bill struck the right balance and provided necessary protections," Ritter's spokesman, Evan Dreyer, said.

The measure was tucked into a package of bills signed by the governor.

Under House Bill 1338, by Rep. Jack Pommer, D-Boulder, and Sen. Jennifer Veiga, D-Denver, home buyers cannot be forced to sign builder warranties that strip away their legal rights to have home defects fixed.

The signing of the "Homeowner Protection Act" punctuates weeks of high drama at the state Capitol that prompted a formal ethics complaint about heavy-handed lobbying tactics against the bill by home builders and business groups.

"This is a good measure," Pommer said. "It restores (for) homeowners some legal rights."

Sen. Nancy Spence, R-Centennial, called Ritter's support for the measure a "gift to the trial lawyers" and "a slap in the face of voters" who overwhelmingly defeated a 2004 ballot measure that would have made it easier to sue for poor home construction.

Business leaders said the bill will invite a flood of lawsuits and drive up the cost of new homes.

"We expect to be back in front of Gov. Ritter in about a year, showing him very precise and concise data on the impact of the bill," said Tom Clark, executive vice president of the Metro Denver Economic Development Corp.

Backers of the bill praised Ritter for standing up for home buyers.

"This is a very important bill for home buyers in that it gives them the ability to reclaim some of the rights . . . they were being forced to sign away," said Clay Vigoda of HOME Alliance, the group that pushed the bill.

Vigoda said the bill doesn't add any new rules, such as allowing homeowners who win court disputes to collect triple damages.

Nor does it preclude builders from going to arbitration before homeowners force them into court.

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