Bill > AB1903

This bill modifies the process for homeowners to file civil actions for construction defects in dwellings, aiming to streamline procedures and introduce an optional certification process for new buildings. Key changes include requiring claimants to provide more detailed evidence in their initial notice to builders, such as photographs and reports, and removing the ability for associations to provide less specific notice for groups of homeowners. The bill also alters the requirements for proving a construction defect, now demanding that claimants affirmatively demonstrate a violation, that this violation caused actual, non-speculative physical damage to another part of the building, and that the original construction caused the violation. Notably, builders will now be permitted to obtain a release or waiver from a homeowner in exchange for repair work, but only one year after the repairs are completed, and the prohibition on recovering investigative costs is largely reinstated, with exceptions for when builders are given advance notice and an opportunity to attend inspections. A significant new provision establishes an optional "certified building" status for condominium projects and townhouse developments constructed after January 1, 2027, which builders can achieve through private inspections and repairs during construction; once certified, these buildings will have a different process for handling post-construction claims, allowing builders more control over inspections and repairs, and potentially leading to a release of claims if a homeowner refuses or delays repairs. Insurers will also be prohibited from treating repairs as voluntary payments to avoid covering them against deductibles or self-insured retentions.