Oregon lawmakers push House Bill 3746 to reform construction liability laws for condos

In a critical meeting of the Oregon Senate Committee on Housing and Development, lawmakers discussed House Bill 3746, aimed at addressing the state's ongoing housing crisis by reforming construction defect liability laws. The bill seeks to revitalize condominium construction, which has plummeted by 92% since 2006, leaving many first-time homebuyers and working families without affordable options.

Senator Mark Beek emphasized the urgency of the situation, noting that Oregon is short over 65,000 homes and will need to build more than 550,000 in the next two decades to meet demand. He pointed out that condominiums, typically priced lower than single-family homes, represent a crucial entry point into homeownership for many Oregonians. The median price for a condo in Oregon is approximately $341,000, compared to $552,460 for a single-family home, making condos a vital solution for affordability.

House Bill 3746 proposes three key changes to the current construction defect liability framework: reducing the liability period for developers from ten years to seven, allowing developers the right to remedy defects at no cost to homeowners, and requiring a simple majority of unit owners to initiate litigation on behalf of their association. These changes aim to lower the legal risks associated with condo development, which have deterred builders from entering the market.

The bill has garnered bipartisan support, passing the House with a vote of 46 to 10. It reflects extensive stakeholder engagement, including input from realtors, home builders, and consumer advocates, ensuring a balanced approach that maintains consumer protections while encouraging new construction.

As Oregon grapples with a housing crisis that threatens to lock out an entire generation from homeownership, the passage of House Bill 3746 could be a pivotal step toward increasing the availability of affordable housing options. The committee's discussions highlighted the pressing need for policy changes that not only address the immediate housing shortage but also foster long-term solutions for sustainable development in the state.