Common Interest DevelopmentsConstruction Defect Litigation

Section § 6100

Explanation

This law requires a homeowners' association, after settling claims about property defects, to inform its members in writing about what will be fixed and when. The association must also report on any unresolved defect claims. Updates to this disclosure can be made, and these don't affect any legal privileges. 'Defects' include any damage caused by those defects.

(a)CA Civil Law Code § 6100(a) As soon as is reasonably practicable after the association and the builder have entered into a settlement agreement or the matter has otherwise been resolved regarding alleged defects in the common areas, alleged defects in the separate interests that the association is obligated to maintain or repair, or alleged defects in the separate interests that arise out of, or are integrally related to, defects in the common areas or separate interests that the association is obligated to maintain or repair, where the defects giving rise to the dispute have not been corrected, the association shall, in writing, inform only the members of the association whose names appear on the records of the association that the matter has been resolved, by settlement agreement or other means, and disclose all of the following:
(1)CA Civil Law Code § 6100(a)(1) A general description of the defects that the association reasonably believes, as of the date of the disclosure, will be corrected or replaced.
(2)CA Civil Law Code § 6100(a)(2) A good faith estimate, as of the date of the disclosure, of when the association believes that the defects identified in paragraph (1) will be corrected or replaced. The association may state that the estimate may be modified.
(3)CA Civil Law Code § 6100(a)(3) The status of the claims for defects in the design or construction of the common interest development that were not identified in paragraph (1) whether expressed in a preliminary list of defects sent to each member of the association or otherwise claimed and disclosed to the members of the association.
(b)CA Civil Law Code § 6100(b) Nothing in this section shall preclude an association from amending the disclosures required pursuant to subdivision (a), and any amendments shall supersede any prior conflicting information disclosed to the members of the association and shall retain any privilege attached to the original disclosures.
(c)CA Civil Law Code § 6100(c) Disclosure of the information required pursuant to subdivision (a) or authorized by subdivision (b) shall not waive any privilege attached to the information.
(d)CA Civil Law Code § 6100(d) For the purposes of the disclosures required pursuant to this section, the term “defects” shall be defined to include any damage resulting from defects.
homeowners' association settlement agreement property defects ...

Section § 6150

Explanation

This law requires a homeowners association to notify its members at least 30 days before it files a lawsuit against a developer for damage to shared or individual parts of a housing development. The notice must include details about a meeting to discuss the potential lawsuit, its possible effects, especially financial, and alternative solutions. If time is short due to a legal deadline, they can provide the notice within 30 days after filing the lawsuit.

(a)CA Civil Law Code § 6150(a) Not later than 30 days before filing of any civil action by the association against the declarant or other developer of a common interest development for alleged damage to the common areas, alleged damage to the separate interests that the association is obligated to maintain or repair, or alleged damage to the separate interests that arises out of, or is integrally related to, damage to the common areas or separate interests that the association is obligated to maintain or repair, the board shall provide a written notice to each member of the association who appears on the records of the association when the notice is provided. This notice shall specify all of the following:
(1)CA Civil Law Code § 6150(a)(1) That a meeting will take place to discuss problems that may lead to the filing of a civil action, in addition to the potential impacts thereof to the association and its members, including any financial impacts.
(2)CA Civil Law Code § 6150(a)(2) The options, including civil actions, that are available to address the problems.
(3)CA Civil Law Code § 6150(a)(3) The time and place of the meeting.
(b)CA Civil Law Code § 6150(b) Notwithstanding subdivision (a), if the association has reason to believe that the applicable statute of limitations will expire before the association files the civil action, the association may give the notice, as described above, within 30 days after the filing of the action.
homeowners association civil action meeting notice ...