Bill > AB1903

This bill proposes significant changes to construction defect laws in California, primarily by establishing an optional "certified building" process for condominium projects and townhouse developments constructed on or after January 1, 2027, which aims to streamline dispute resolution. Under this new system, builders can obtain a certified status for a building through private inspections and repairs during construction, and once certified, future challenges to the building's status are prohibited. Builders of certified buildings will have more control over their post-construction claims process, including the right to inspect and repair, and if a claimant refuses reasonable repair offers or hinders access for more than seven days, the builder may be released from further liability. The bill also revises the requirements for initial defect notices, demanding more detailed evidence, and alters the burden of proof for construction defect claims, requiring claimants to demonstrate not only a violation of standards but also that the violation caused appreciable, nonspeculative, present physical damage due to original construction. Furthermore, it prohibits the recovery of investigative costs and limits damages based on extrapolation, while also requiring associations to provide homeowners with a specific warning about the potential impact on property value and marketability before filing a civil action against a developer.