{"id":63590,"date":"2026-07-18T03:00:13","date_gmt":"2026-07-18T01:00:13","guid":{"rendered":"https:\/\/housesmarketplace.com\/california-condo-defect-liability-bill-on-deck-after-recess\/"},"modified":"2026-07-18T03:00:13","modified_gmt":"2026-07-18T01:00:13","slug":"california-condo-defect-liability-bill-on-deck-after-recess","status":"publish","type":"post","link":"https:\/\/housesmarketplace.com\/ru\/california-condo-defect-liability-bill-on-deck-after-recess\/","title":{"rendered":"California condo defect liability bill on deck after recess"},"content":{"rendered":"<div>\n<p>Coming out of summer recess, <a href=\"https:\/\/www.housingwire.com\/articles\/advocacy-rebuild-fund-california\/\">\u041a\u0430\u043b\u0438\u0444\u043e\u0440\u043d\u0438\u044f<\/a> lawmakers will tackle condominium construction defect legislation that has cleared committees and passed one chamber.<\/p>\n<p>Assembly Bill 1903 is one of two condo bills <a href=\"https:\/\/www.housingwire.com\/articles\/california-condo-reform-bills\/\">introduced this year<\/a> by state lawmakers. It would change condo construction defect liability rules to create a true \u201cright-to-repair\u201d process, letting developers fix problems before facing high-stakes litigation.<\/p>\n<p>The other bill, AB 1406, would raise the state\u2019s liquidated-damages limit on new condo sales from 3% of the purchase price to 6%. The change would give developers more certainty by discouraging buyers from walking away from deals.<\/p>\n<p>Backers call the bill \u201ccondo deposit reform,\u201d and it\u2019s meant to modernize a rule that\u2019s among the strictest in the country. The <strong>\u041a\u0430\u043b\u0438\u0444\u043e\u0440\u043d\u0438\u0439\u0441\u043a\u0430\u044f \u0430\u0441\u0441\u043e\u0446\u0438\u0430\u0446\u0438\u044f \u0440\u0438\u044d\u043b\u0442\u043e\u0440\u043e\u0432<\/strong> stalled the bill in a General Assembly committee, playing on concerns over shifting risk from builders to buyers. Supporters say it now has little chance of passing.<\/p>\n<p>California\u2019s condo push comes as <strong>\u041a\u043e\u043d\u0433\u0440\u0435\u0441\u0441<\/strong> revisits its own <a href=\"https:\/\/www.housingwire.com\/articles\/making-condos-safer-loans\/\">safety financing debate<\/a>. Rep. Debbie Wasserman Schultz (D-Fla.) and Rep. Maria Elvira Salazar (R-Fla.) have revived a bill offering low-interest loans for structural repairs. Their effort, tied to the 2021 anniversary of the condo tower collapse in Surfside, Florida, could reshape how condo associations nationwide fund safety work.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-challenges-in-condo-construction\">Challenges in condo construction<\/h2>\n<p>California lawmakers have wrestled with housing <a href=\"https:\/\/www.housingwire.com\/articles\/california-housing-affordability\/\">\u0434\u043e\u0441\u0442\u0443\u043f\u043d\u043e\u0441\u0442\u044c<\/a> for years. Since the COVID-19 pandemic, they\u2019ve focused on reducing regulatory barriers while pushing local governments toward zoning reforms designed to increase housing density and variety.<\/p>\n<p>Housing advocates have targeted condos because so few have been built over the past two decades. They blame litigation and <a href=\"https:\/\/www.housingwire.com\/articles\/insurance-is-having-a-growing-impact-on-condo-affordability\/\">\u0440\u0430\u0441\u0445\u043e\u0434\u044b \u043d\u0430 \u0441\u0442\u0440\u0430\u0445\u043e\u0432\u0430\u043d\u0438\u0435<\/a> tied to defect liability.<\/p>\n<p>Research backs the claim. Condo construction has collapsed in Los Angeles since its 2005-06 peak, according to a 2024 study published by the <strong>Terner Center for Housing Innovation<\/strong> at the University of California at Berkeley. Starts fell from more than 8,000 units per year to a level that never recovered after the Great Recession, a trend repeated across the state\u2019s major metro areas.<\/p>\n<p>Defect liability litigation and insurance costs are a major factor, adding an estimated $8,100 to $18,300 per unit in hard costs on a typical <a href=\"https:\/\/www.housingwire.com\/articles\/los-angeles-housing-market\/\">\u041b\u043e\u0441-\u0410\u043d\u0434\u0436\u0435\u043b\u0435\u0441<\/a> project, a Terner Center follow-up study found. Researchers say liability isn\u2019t the only culprit, but it\u2019s significant enough that many developers have simply switched to building apartments instead.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-fixing-the-law\">Fixing the law<\/h2>\n<p>AB 1903 cleared the state Senate Judiciary Committee with amendments that narrowed its scope after pushback from consumer advocates. <\/p>\n<p>The bill originally proposed a \u201ccertified building\u201d process, letting builders hire private inspectors to certify a project while locking in a nonchallengeable status with builder-controlled repair and claims procedures. The author agreed to strike that framework from the bill.<\/p>\n<p>Other changes softened, rather than eliminated, some of the bill\u2019s more aggressive provisions. Instead of barring recovery of investigative costs and extrapolated claims outright, the amended bill limits investigative costs unless builders get 21 days\u2019 notice and a chance to attend testing.<\/p>\n<p>A proposed mandatory motion to dismiss for noncompliant claim notices became discretionary, leaving it to judges rather than being automatic. The bill\u2019s author also agreed to drop a requirement that claimants prove a defect caused damage to another building component. The bill instead will revise defect performance standards on a forward-looking basis.<\/p>\n<p>The amended bill still must clear another committee and return to the General Assembly for approval.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Coming out of summer recess, California lawmakers will tackle condominium construction defect legislation that has cleared committees and passed one chamber. Assembly Bill 1903 is one of two condo bills introduced this year by state lawmakers. It would change condo construction defect liability rules to create a true \u201cright-to-repair\u201d process, letting developers fix problems before [&hellip;]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-63590","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.5 (Yoast SEO v18.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California condo defect liability bill on deck after recess - Houses Marketplace<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/housesmarketplace.com\/ru\/california-condo-defect-liability-bill-on-deck-after-recess\/\" \/>\n<meta property=\"og:locale\" content=\"ru_RU\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California condo defect liability bill on deck after recess\" \/>\n<meta property=\"og:description\" content=\"Coming out of summer recess, California lawmakers will tackle condominium construction defect legislation that has cleared committees and passed one chamber. 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