Housing Construction Defect Reform

AB 1903 will reduce housing costs and increase opportunities for homeownership by rewarding high-quality construction, and allowing builders to fix problems in newly-constructed homes before triggering costly lawyer fees and court proceedings.

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But due to outdated regulations governing the process of fixing defects in the construction of new homes for ownership, these housing types have been in steep decline for decades.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 costly construction defect litigation for denser, urban homes has caused these types of ownership opportunities to largely evaporate from the California landscape. 

AB 1903 updates existing construction defect rules by giving builders time to correct flaws or defects in new housing construction; tightening the threshold for defect claims before lawyers and courtrooms get involved; and providing homeowners with clear procedures and protections for handling proven defects while safeguarding their investment.

Updates

  • AB 1903 was introduced on February 12, 2026. It was amended in the Assembly on March 19, 2026.

Author

  • Buffy Wicks (AD 14)

Sponsors

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

Resources