Buffy Wicks

Existing law specifies the rights and requirements of a homeowner to bring an action for construction defects, including applicable standards for home construction, the statute of limitations, the burden of proof, the damages recoverable, and detailed prelitigation procedures.

This bill would establish an alternative process for certified buildings, as established by the bill, and would provide that the bill's provisions only apply to condominium projects and townhouse developments constructed on or after January 1, 2027. The bill would authorize a builder to obtain a certified building status for a building by undergoing private inspection, repairs, and reinspection during construction, as provided. The bill would prohibit future challenges to the status of the building as a certified building once certified. The bill would authorize the builder of a certified building to establish its own process for handling postconstruction claims. The bill would specify that a builder has a complete and unrestricted right to inspect and repair a certified building at times mutually agreed upon by the builder and claimant and within timeframes established by the builder. If a claimant refuses the offer of repair or prevents, restricts, delays, or frustrates access for more than 7 days from the mutually agreed upon day, the bill would deem the builder to have received a release. The bill would require an inspector to meet specified criteria, including, among others, that they are a private licensed architect, engineer, or general contractor, and to certify to the Department of Real Estate that they meet the criteria. On or before July 1, 2028, the bill would require the Department of Real Estate to post on its internet website a list of eligible inspectors.

Existing law requires a person claiming that the construction of their residence violates standards of construction, as specified, to provide a written notice of the claim to the builder that, among other things, describes the claimed violation in reasonable detail sufficient to determine the nature and location of the claimed violation. Existing law authorizes that written notice to be provided by the claimant's legal representative.

This bill would require additional information to be included in the notice, including, at a minimum, a description of the evidence of the violation, copies of any reasonably available photographs, estimates or reports relating to the damage, and the specific location of the evidence within the residence. The bill, in case of a group of homeowners or a homeowner's association, would require the notice to be signed by each affected homeowner and for claims involving common areas, to be verified by the president of the association.

Existing law prohibits a builder from obtaining a release or waiver in exchange for repair work mandated by law, as specified, and authorizes a claimant, at the conclusion of the repair, to file an action for violation of the applicable standard or for a claim of inadequate repair.

This bill would repeal that provision and would, instead, authorize a builder to obtain a release or waiver in exchange for the repair work one year after the repair.

Existing law specifies that the prelitigation procedures are to be strictly construed, and that, if the claimant does not conform with the requirements, the builder may bring a motion to stay any subsequent court action or other proceeding until the requirements are met.

This bill would, instead, authorize the builder to bring a motion to dismiss without prejudice any court action or other proceeding if the claimant does not substantially conform with the requirements and would require the court to grant the motion.

Existing law specifies that to make a claim for violation of construction standards applicable to construction defect claims, a homeowner need only demonstrate that the home does not meet the applicable standard, and that no further showing of causation or damages is required to meet the burden of proof, provided that the violation arises out of, pertains to, or is related to, the original construction.

This bill would, instead, require a claimant to affirmatively demonstrate that there is a violation of the applicable standard, that the violation caused appreciable, nonspeculative, present physical damage to another component part of the building, and that the violation is caused by the original construction. The bill would prohibit an insurer from asserting repairs as a voluntary payment or as a payment made without the insurer's consent, or deny counting the costs associated with those repairs.

Existing law authorizes a homeowner to recover reasonable investigative costs for each established violation.

This bill would delete that provision, and would prohibit the recovery of investigative costs. The bill would prohibit an action from being filed unless the conditions for filing an action have been met for each claimed violation. The bill would prohibit a claim for damages based on extrapolation of claims, and would limit testing of the components of the structure, as specified.

Existing law, the Davis-Stirling Common Interest Development Act, governs the management and operation of common interest developments, and requires an association to manage a common interest development. Existing law authorizes a common interest development association to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in matters pertaining to damage to a separate interest that the association is obligated to repair or that arises out of, or is integrally related to, damage to a separate interest that the association is obligated to maintain or repair.

Existing law requires the board of directors of an association, within 30 days before filing a civil action against the developer of a common interest development for certain damages, to provide a written notice to each member of the association.

This bill would require the notice to also include a statement, in 12-point bold type, that states, among other things, that the filing of a civil action may affect the value of the residence and the ability to sell the residence or refinance a mortgage. The bill would also require the board to provide a courtesy copy of a sample of what was sent to the members simultaneously to the builder, as defined. The bill would require the notice to be sent by first-class mail, as specified.