Can HOAs (Home Owner Associations) Sue Developers For Construction Defects?
In most cases, a developer is liable for any defects that might occur in a residential construction project if the claim is submitted within a timely manner and that the party that has been authorized to make the claim meets contractual or statutory procedures.
This is also true to when it comes to Architects and Engineers of owned condo units & residences. Homeowners associations can hold architects & engineers responsible for defects as the precedent was set by litigation in the case of “Beacon HOA v. Skidmore, Ownings & Merrill, S208173 (2014)”.
Furthermore, prior to this case back in 2003, the Right to Repair Act took effect and completely changed the process used for California homeowners and HOAs to recover monetary damages against builders and contractors for construction defects. The Right to Repair Act bars any actions for damages from being filed more than 10 years after substantial completion of the construction.
HOAs have responsibilities, duties & obligations to inspect the common areas for latent defects before the expiration of the statute of repose under the Right to Repair Act.
In California, the law provides that officers and directors of homeowners associations are protected from personal liability for their decisions made as board members.
Before the 10-year window for filing a claim closes, the directors of homeowners associations should regularly inspect the common areas to make sure that there are no structural issues. It is important to note that regular inspections are vital as buildings settle over the years. What had appeared to be completely sound before may not be so upon the next inspection if any defects appear or errors we made.
If you are an HOA Representative (i.e. HOA Manager or HOA Director) who has questions about the scope of homeowners association duties or claims under California’s Right to Repair Act or looking to file a construction defect claim, Naumann Law Firm represents homeowners associations, high/mid-rise condominium associations, single and multifamily residential property owners and commercial property owners in construction defect litigation. Naumann Law Firm has over 35 years of experience handling significant construction cases with complex issues. Call us to set up a consultation.
If you have any questions regarding emergency repairs during the construction defect litigation process or about construction defect litigation in general, contact us at 844-492-7474 or visit our San Diego construction defect contact page.