Sponsored Legislation

AB 1903

Status: Died on the Floor

Housing Construction Defect Reform

AB 1903 introduces a new disclosure and repair standard that governs when lawsuits may be filed for defects in newly built, for-sale homes. The standards will protect the health and safety of homeowners while reducing the costs of new homes for ownership by giving owners and builders a chance to repair proven defects before lawyers tie up new housing in court.

Starter homes like condominiums, townhomes, and small-lot subdivisions are among the most affordable paths to homeownership. By spreading relatively higher land costs across denser housing, builders can offer middle-income families the chance to own a part of the California dream. 

But due to outdated regulations governing the process of fixing defects in the construction of new homes for ownership, these housing types have been in steep decline for decades. While rental housing and single-unit suburban housing is relatively easy to build, the risk of lawyers filing costly construction defect lawsuits against denser, urban homes has caused these types of ownership opportunities to largely evaporate from the California landscape. 

AB 1903 creates a new disclosure requirement for new starter homes that informs owners of their right to seek repairs for proven defects. It removes the ability of Homeowner’s Associations to block successful repairs when the owner and builder have agreed in writing that repairs were successful. It also establishes a baseline of proof for defects, with photos and written documentation provided to builders to provide a transparent record of defect claims.

Updates

Authors

• Buffy Wicks (D, AD 14)
• Lori Wilson (D, AD 11)

Sponsors

• California YIMBY
• California Building Industry Association
• Bay Area Council
• Habitat for Humanity California
• Housing Action Coalition
• SPUR
• Council of Infill Builders

Resources

AB 1903 In the News