HB17-1279

HB17-1279 - Construction Defect Actions Notice Vote Approval

Passed/Signed into Law
Concerning the requirement that a unit owners' association obtain approval through a vote of unit owners before filing a construction defect action.

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 based on a defect in construction work not ordered by the HOA itself, the board must:

 

  • Notify all unit owners and the developer or builder against whom the lawsuit is being considered;
  • Call a meeting at which the executive board and the developer or builder will have an opportunity to present relevant facts and arguments and the developer or builder may, but is not required to, make an offer to remedy the defect; and
  • 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 meeting of unit owners commences a 90-day voting period during which the HOA will accept votes for or against proceeding with the lawsuit. Statutes of limitation are tolled during this period. The HOA is required to keep copies of its mailing list and maintain records of the votes received. The voting period may end in less than 90 days if sufficient votes are received to approve the lawsuit before 90 days have elapsed.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

 

Latest update: May 23, 2017
05/23/2017 - Governor Signed
05/18/2017 - Sent to the Governor
05/18/2017 - Signed by the President of the Senate
05/15/2017 - Signed by the Speaker of the House
05/04/2017 - Senate Third Reading Passed - No Amendments
05/03/2017 - Senate Second Reading Passed - No Amendments
05/01/2017 - Senate Committee on Business, Labor, & Technology Refer Unamended - Consent Calendar to Senate Committee of the Whole
04/24/2017 - Introduced In Senate - Assigned to Business, Labor, & Technology
04/24/2017 - House Third Reading Passed - No Amendments
04/21/2017 - House Second Reading Special Order - Passed with Amendments - Committee, Floor
04/19/2017 - House Committee on State, Veterans, & Military Affairs Refer Amended to House Committee of the Whole
03/17/2017 - Introduced In House - Assigned to State, Veterans, & Military Affairs