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California lawmakers revive condo defect rules after summer recess
AB 1903 would create a true right-to-repair process, while AB 1406 to raise the liquidated-damages cap to 6% remains stalled.
California lawmakers are set to take up condominium legislation after the summer recess, with Assembly Bill 1903 advancing to revise condo construction defect liability and right-to-repair procedures, HousingWire reports.
Under AB 1903, the state would adjust how defect liability works to establish a more formal right-to-repair process for developers, aiming to let problems be fixed before disputes escalate into litigation.
A separate bill, AB 1406, would raise the liquidated damages limit on new condo sales from 3% of the purchase price to 6%, but it has stalled. HousingWire says supporters of AB 1406 describe it as “condo deposit reform,” while opponents, including the California Association of Realtors, raised concerns about shifting risk from builders to buyers.
The legislative push is unfolding as Congress revisits safety financing for structural repairs, HousingWire notes, and California’s broader housing agenda continues to focus on reducing barriers to development and increasing housing density. HousingWire adds that condo construction has fallen in Los Angeles since its 2005 to 2006 peak, citing research from the Terner Center for Housing Innovation at the University of California, Berkeley, which links litigation and insurance costs tied to defect liability to the decline.