Developers Face New Construction Defect Insurance Requirements Under December Program

July 25, 2025 | Boulder, Boulder County, Colorado


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Developers Face New Construction Defect Insurance Requirements Under December Program
Boulder City’s Housing Advisory Board meeting on July 25, 2025, highlighted significant discussions surrounding construction defects and housing insurance, aiming to improve the local housing market. A key focus was on a new opt-in program for contractors designed to address construction defects, which has been a persistent issue in the area.

The proposed program allows contractors to opt in, provided they meet specific requirements, including offering warranties and ensuring quality construction. This initiative aims to shorten the lengthy legal processes associated with construction defaults, which can currently extend up to seven years. While the program does not completely resolve the issue of construction defects, it introduces a framework that could encourage better practices among builders.

Another critical aspect discussed was the ongoing challenge of securing insurance for construction projects. The board acknowledged that without adequate insurance options, the effectiveness of the new program could be limited. The conversation emphasized the need for a balanced approach that protects both developers and homeowners, particularly in terms of the legal actions that homeowners associations can take.

Additionally, the board touched on the concept of middle-market housing products. Originally, the program aimed to cater to middle-income families using a formula based on median house prices. However, recent changes have broadened the scope to include various housing products, although the specifics of these adjustments remain under discussion.

As Boulder City moves forward, the outcomes of these discussions could significantly impact the local housing landscape, potentially leading to more accessible and reliable housing options for residents. The board's commitment to addressing these issues reflects a proactive approach to enhancing the community's housing market.

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