Would shorten the statute of limitations to file a claim for construction defects from 10 years to 5 years.
Current Status: Pending
FindHOALaw Quick Summary:
Existing law specifies the requirements for actions for construction defects, which includes a statute of limitations that prohibits an action from being brought to recover under these provisions more than 10 years after substantial completion of the improvement, but no later than the date the notice of completion is recorded.
This bill would amend Civil Code Section 941 to shorten the timeframe in which an action may be brought, for underlying construction projects using a skilled and trained workforce, to no more than 5 years after substantial completion of the improvement but no later than the date the notice of completion is recorded.
*SB-919 was amended on April 13, 2021 to define “certified skilled labor” and a “non-profit housing corporation”:
(B) A skilled and trained workforce is certified for purposes of subparagraph (A) if all of the following apply:
(i) If either of the following conditions were satisfied:
(I) All contractors and subcontractors performing work on the underlying construction project were subject to a project labor agreement that required compliance with the skilled and trained workforce requirement and provided for enforcement of that obligation through an arbitration procedure.
(II) The developer provided, on a monthly basis while the underlying construction project or contract for the underlying construction project was being performed, a report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code to the public entity, or other body awarding work on the project, that ensured the developer’s compliance with the skilled and trained workforce requirements.
(ii) The developer for the underlying construction project required in all contracts for the performance of work on the underlying construction project that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to construct the underlying construction project.
(iii) Every contractor and subcontractor on the underlying construction project actually used a skilled and trained workforce to construct the underlying construction project.
(C) This paragraph shall only apply to actions that meet both of the following conditions:
(i) The action is not for the recovery of damages related to major structural or systemic defects.
(ii) The action is against a nonprofit housing corporation.
(D) For purposes of this paragraph, the following definitions apply:
(i) “Nonprofit housing corporation” means a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code.
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from the California Legislature's website
Related Topics
Related Statutes
- Civil Code Section 5986. No Preconditions to Commencement of Builder Claims.
- Civil Code Section 1134. Disclosure of Defects to Purchaser.
- Civil Code Section 6150. Notice of Civil Action Against Declarant.
- Civil Code Section 6100. Notice of Settlement Agreement.
- Civil Code Section 6000. Construction Defect; Pre-Litigation Procedures.
Related Case Law
- Branches Neighborhood Corporation v. CalAtlantic Group, Inc.
(2018) 26 Cal.App.5th 743
[Construction Defect; Membership Approval Prior to Filing Claim] CC&R provisions requiring membership approval prior to the initiation of a construction defect claim are enforceable and must be complied with.
Related Links
Turning up the Heat on Residential Design Professionals - Published on HOA Lawyer Blog (February 4, 2013)
Clarifying Attorney-Client Privilege in HOA Construction Defect Litigation - Published on HOA Lawyer Blog (April 23, 2014)