This year’s heavily anticipated construction defects reform bill dropped on Wednesday, opening day of this year’s legislation session, and it has so far garnered a general wait and see reaction that mostly comes off as an anti-climactic: “Is this it?”

For years lawmakers and special interest groups have been wrestling over the state’s construction defects law, which made it easier for homeowners to sue builders for shoddy work. The result is that lawsuits have multiplied, litigation costs have piled up, builder insurance rates have climbed and condo construction in particular has dropped.

Parties have struggled to strike the right balance between protecting builders and protecting consumers.

Gov. John Hickenloooper listed the issue among his top priorities in his State of the State address Thursday.

“We have a housing crisis, plain and simple,” he said.

“Too many people and not enough units adds up to unaffordable rents and skyrocketing home prices. I’ve said it before: we need more affordable housing.

“Part of the answer is the construction defects legislation we almost passed last year and we WILL pass this year.”

The bill introduced Wednesday would seem to have a better than average chance of passing. Its sponsors include the leader of the Republican-controlled Senate – President Kevin Grantham, R-Canon City – and the leader of the Democratic-controlled House – Speaker Crisanta Duran, D-Denver.

The bill would give more power to judges so that they might speed up construction defects cases to push down legal fees and apportion liability among the parties to the suit in order to spread out costs. Lower court costs and settlement fees for each of the parties would in theory bring down insurance rates.

Sources have lauded the sponsors for taking a creative approach to the issue. They also wonder whether this bill alone is enough to bring real change.

“Apportioning liability is an interesting concept, but I don’t know how it will encourage the construction of attainable housing,” said Rep. Joe Salazar, D-Thornton, on Friday, offering a first-blush reaction to the new bill. “Will it reduce insurance rates? Are insurance rates inhibiting the construction of units? I guess I need more information.”

In the debate on construction defects reform, Salazar has been an outspoken advocate for consumers and hasn’t hesitated to kill past reform bills. He derided last year’s bill as a gift to developers. “It’s just a license to build crap,” he said at the time.

He seemed much more positive about the new bill. “I will trust that the Speaker and Senate President are moving in a positive direction – one step at a time,” he said. “Maybe this is just a piece of a larger package,” he added.

But the bill is not part of a larger package, said House Democratic sources, at least not yet.

– john@coloradostatesman.com