House Bill 1338, known as the Homeowner Protection Act of 2007, could head for a final vote as early as today and, if passed, would land on Gov. Bill Ritter's desk for consideration later this month.

The bill would require that provisions in contracts designed to protect homebuilders from lawsuits be voided if there is fraud or gross negligence by the builder.

If it becomes law, the bill will apply to lawsuits filed on or after the date of the bill's passage.

Lobbyists for the Colorado Association of Home Builders and the Denver Metro Chamber of Commerce have been out in force opposing the bill.

Critics contend that the bill would lead to frivolous lawsuits and higher insurance rates, pushing construction costs higher and making homeownership more expensive.

Homebuilders had been pushing to strike some type of compromise on the measure, but the bill passed the Senate on a "voice vote" with no additional amendments, a Senate spokesman said Monday.

The bill's House sponsor, Rep. Jack Pommer, D-Boulder, said consumers needed additional protection from unscrupulous homebuilders.

He said that current legislation "protects only the worst homebuilders" from litigation and that homeowners can be left with little recourse if they are saddled with a defective home.

"Shoddy work pushes up costs only when the homebuilder tries to push those costs onto the insurer," Pommer said, noting that a minority of homebuilders do that.

"For the person who buys a (poorly constructed) home, it can be devastating," he said.
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