Committee weighs shortening condo defect liability, requiring moisture inspections to spur condo production

The Senate Housing and Development Committee took public testimony May 5 on House Bill 37 46 A, a package of changes to Oregon’s construction-defect liability rules intended to spur condominium and owner-occupied multifamily development.

Representative Vicki Breece Iverson introduced the measure and told the committee the bill would shorten the period of developer liability for construction defects (she cited a reduction from a 10-year standard to a 7-year statute of ultimate repose), give developers a formal “right to remedy” to repair defects before litigation, and require a simple majority of unit owners to authorize association litigation. Iverson said the package also mandates independent inspections for moisture intrusion at two milestones — roughly two and six years after substantial completion — and requires developers to share inspection results with…