Capitol Close Up: 3/11/2025
Tariffs will Impact Home Building
The National Association of Home Builders is closely tracking the impact of President Trump’s tariffs on imports from Canada, Mexico and China. According to the NAHB, the new tariffs on America’s largest trading partners are projected to raise the cost of imported construction materials by more $3 billion, possibly increasing the average price of a new home by $7,500 to $10,000.
NAHB continues to work with the White House, Congress and other stakeholders to raise awareness about the impacts of the tariffs on home building and potential homebuyers. In addition, our national association is working to reduce U.S. reliance on imported lumber by lobbying for increases in domestic production and sawmill capacity and opening federally owned lands in an environmentally responsible manner to improve building material supply chains.
For more information and updates from the NAHB, please visit the association’s How Tariffs Impact the Home Building Industry web page.
The tariffs are receiving a lot of media attention. Last week, Carl Koelbel, president and CEO of Koelbel & Company, was interviewed by the Wall Street Journal. The article focused on how builders in different states are stockpiling lumber and materials, or shifting to different materials, to manage costs from the tariffs. From the Wall Street Journal article:
“Shortly before the most recent tariffs on Mexico, Canada and China went into effect, Carl Koelbel placed a bulk order of 101 water heaters for an affordable housing complex he is building in the Denver metro area.
‘There was no reason for us to accelerate those orders other than the tariffs,’ said the Colorado-based developer.” Click here for the complete WSJ story.
We expect more media calls as the tariffs continue to impact the U.S. economy. If you have examples or would be willing to talk to the press, please email Ted Leighty at ted@hbacolorado.com.
Defects Bills Expected in Committee on March 18
We are currently expecting House Bill 25-1272 from Rep. Shannon Bird (D-Westminster) and Senate President James Coleman (D-Denver)—along with House Bill 25-1261 from Rep. Jennifer Bacon (D-Denver) and Senate Majority Leader Robert Rodriguez (D-Denver)—to have first hearings next Tuesday, March 18, in the House Transportation, Housing & Local Government Committee.
Rep. Bird’s HB25-1272, titled Construction Defects and Middle Market Housing, is the primary bill to work on to address Colorado’s defects law. The CAHB is currently in an amend position on this bill and the lobby team is working directly with the bill sponsor and stakeholders to make important changes to this proposal. The CAHB is working as part of the Housing Options Now coalition and other stakeholders to coordinate pro-housing testimony on the bill.
The CAHB is opposed to Rep. Bacon’s HB25-1261 and will be working to defeat this next Tuesday at committee. This is the trial lawyer bill that will make the construction of all homes—not just condos—more expensive by allowing class-action lawsuits and pre-judgement interest, while reversing the Colorado Supreme Court’s Vallagio decision.
If you would like to testify on either of these bills, please contact CAHB’s government affairs director Rachel Lee at rachel@goldleafstrat.com.
Contact Your Legislator to Help Oppose HB25-1286--Protecting Workers from Extreme Temperatures
The GAC last Friday opposed HB25-1286—titled Protecting Workers from Extreme Temperatures. CAHB will be working with the Associated General Contractors, Colorado Contractors Association and other industry partners to oppose this bill. We know that the construction industry is already regulated on all things safety and health by federal OSHA—but some legislators do not. In addition to the obvious OSHA pre-emption on this issue, the bill would significantly raise the cost of constructing building and road projects by potentially shutting them down in fairly mild cold and hot temps, and prevent workers from getting paid when they are not working.
We need your help in contacting legislators to ask them to oppose this bad for business legislation. Click here for an easy 2-step process to fill in your name and address info and then send our pre-written letter to your state representative. Please feel free to customize the letter to provide specific concerns or impacts related to your business.
Government Affairs Committee Update
The GAC met last Friday and received updates on several introduced and proposed bills. The GAC took positions on two bills. To review a complete list of the CAHB's legislative positions--including bills that the GAC
supported, opposed and monitored, please visit https://fastdemocracy.com/shared-bills/?sharing-bill-list-id=3FY3wRWxzRtZ.
HB25-1286—Oppose—This bill would require employers to implement protections for workers who are exposed to extreme hot and cold temperatures at the worksite, including temperature mitigation measures, rest breaks, and temperature-related injury and illness prevention plans. This bill sets unrealistic temperature requirements and will significantly impact outdoor construction during a large part of the year.
SB25-185—Amend—This proposal will clarify that construction professionals owe an independent tort duty of care to construct residential homes in a non-defective and reasonable manner and that this duty is owed equally to original and subsequent residential home purchasers. This bill is in response to a court decision assigning greater responsibility to construction professionals than subcontractors. The lobby team will be working with CAHB member attorneys on amendments.