Legislative Update

We've been writing about several Bills on this Blog lately because there is a lot of prospective legislation (both locally and nationally) affecting homeowner associations and individual homeowners.  The level of legislative activity in this area appears to have increased probably in part as fallout from the economic crisis. 

As an update, H.R. 1106 "Helping Families Save Their Homes Act of 2009" remains stalled in the U.S. Senate, with no scheduled date for a vote (click here to keep track of the Bill).  In Washington, ESSB 1393, "Addressing residential real property construction improvements through consumer education, warranty protections, contractor registration requirements, and worker certification standards," is similarly stalled in the state Senate.  An earlier version of the Bill passed in the House, but is undergoing major rewrites in the Senate.  One of the latest versions, Striker 1393-S2.E AMS WM S2889.2, can be found here.  I believe the Striker version is wholly impractical and inefficient.  For example, the Striker establishes  a 7-person "Home Construction Board" to resolve construction disputes.  The Board would be comprised of four construction professionals of varying experience, a governmental building inspector and two members "of the general public."  The board members would be appointed by the governor and meet at least four times per year.  Doesn't sound to me like an effective or efficient way to resolve hundreds, if not thousands, of construction disputes filed in our state each year.  To keep track of ESSB 1393, click here.

The Oregon legislature is also debating several Bills that affect homeowners and homeowner associations, including SB 811 and SB 963.  SB 811 modifies provisions relating to enforcement of liens for association assessments in planned communities and condominiums, including establishment of a "super lien priority" for associations.  SB 963 includes several technical changes regarding governance for planned communities and condominiums in Oregon.  For specific information on the Bills and to track their progress, click here.  

Several Barker Martin, P.S. attorneys remain highly active in the Washington and Oregon legislative process, including serving on legislative committees for homeowner association industry groups.  On occasion, we also are asked to review and help draft prospective legislation.  Keep checking this Blog to obtain the latest legislative developments affecting homeowners.
   

Washington Homeowner Rights Bill: Contact Your Legislator Now

Engrossed Second Substitute House Bill 1393 (ESSB 1393) is currently under consideration by the House Ways & Means Committee.  The Bill is drafted to address real property construction improvements through "consumer education, warranty protections, contractor registration requirements, and worker certification standards."

This Bill would create an "Office of Consumer Education for Home Construction" under the guidance of the Attorney General's Office.  This new office would become a resource for consumers and would also receive and monitor complaints against residential construction contractors.
Another consumer protection provision of the Bill includes the creation of a "Home Construction Board." This Board would act as a mediator between owners and residential contractors when disputes arise.  As drafted, a property owner seeking recourse would be required to comply with the procedures before commencing litigation.  The make-up of the board as proposed seems a bit weighted in favor of industry insiders, but the concept is very promising, particularly for small disputes that are ill-suited for more formal dispute resolution procedures.
The Bill would also modify the common law implied warranty habitability.
   
There is also an express warranty provision that would require certain minimum standards in all contracts for the sale or construction of new residential property including:
  • One-year warranty against defects in workmanship and materials;
  • Two-year warranty against defects in the wiring, piping and ductwork in the electrical, plumbing, heating, cooling, ventilating, and mechanical systems;
  • Four-year warranty against damage to basement slabs; and
  • 10-year warranty for structural defects.
The need for consumer protection in residential construction has been required for years.  Currently, a Washington consumer has more protection buying a toaster in this state than a home.
We recommend all Washington residents contact their legislators in support of this Bill.  Whether you are in the market for a new home today or sometime in the future, shouldn't that home meet at least some minimum performance standards?  Contact your legislators today (find your legislators here)--do not let the Building Industry Association of Washington (BIAW) kill this vital piece of litigation.