Construction Defect Actions Notice Vote Approval
Concerning prerequisites for the authority of a unit owners' association to pursue litigation involving alleged construction defects, and, in connection therewith, imposing notification, disclosure, and voting requirements prior to commencement of an action.
2017 Regular Session
The bill requires that, before the executive board of a unit owners' association (HOA) in a common interest community brings suit against a developer or builder on behalf of unit owners, the board must:
- Notify all unit owners; and
- Except when the HOA contracted with the developer or builder for the work complained of or the amount in controversy is less than $100,000, obtain the approval of a majority of the unit owners after giving them detailed disclosures about the lawsuit and its potential costs and benefits.
The bill also limits the amount and type of contact that a developer or builder that is potentially subject to a lawsuit may have with individual unit owners while the HOA is seeking their approval for the lawsuit.
(Note: This summary applies to this bill as introduced.)