HB 3746
Reduces the statute of limitations for construction defect actions by a planned community or condominium.
Jurisdiction
Oregon
Session
2025 Regular Session
At the request of
(at the request of Representative Pam Marsh)
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Sign in to take actionPublic sentiment
Support
59%
Oppose
41%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill changes the rules for construction defect lawsuits in Oregon, specifically for planned communities and condominiums. It reduces the time homeowners and condominium associations have to file a lawsuit related to construction defects. The bill also introduces requirements for moisture inspections, notice procedures, and extended timelines for contractors to respond to defect notices. It aims to streamline the process and provide more clarity for homeowners and developers.
Key provisions
- Reduces the statute of limitations for construction defect actions in planned communities and condominiums.
- Requires condominium associations to conduct moisture inspections.
- Establishes notice requirements before homeowners or associations can file lawsuits.
- Extends the time for contractors to respond to defect notices (from 14 days to 30 days).
- Creates special procedural requirements for giving notice to contractors.
- Modifies the timeline for sending secondary notices of defects.
- Specifies that offers for remediation must be based on the cost of remediation.
- Clarifies that remediation or payment satisfies claims for defects included in an offer.
Who is affected
- Homeowners in planned communities and condominiums
- Condominium associations
- Contractors
- Subcontractors
- Suppliers
Notable changes
- Extends the time for contractors to respond to defect notices.
Sponsors
Official sponsors from legislative records.
Primary sponsor
House Committee On Housing and Homelessness
Arguments in favor
Reasons to support this legislation.
Supporters of HB 3746 advocate for condo liability reform to increase affordable housing opportunities in Oregon. They argue that the state's lengthy statutes of limitations and repose are deterring condominium development, leading to a shortage of affordable housing options. By reducing these barriers, proponents believe that more developers will be willing to build condos, increasing the supply of middle housing options and providing attainable homeownership opportunities for working families. Additionally, supporters argue that this reform will help mitigate issues such as high insurance costs, which are currently discouraging affordable housing projects. By making it easier to develop and maintain condos, proponents believe that HB 3746 can help address Oregon's housing crisis and promote sustainable development, affordable homeownership options, and reduced urban sprawl.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of House Bill 3746 express concerns about its potential impact on homeowners' rights and protections in Oregon. Many that the bill would restrict consumers' ability to seek adequate remedies for construction defects, shift responsibility from builders to homeowners, and limit their access to justice. Testifiers also highlight the need for a longer statute of limitations to allow homeowners to pursue claims before discovery, citing personal experiences with water intrusion and costly repairs. Additionally, opponents argue that the bill would impose significant financial burdens on homeowners, HOA governance, and community associations, potentially discouraging investors from purchasing homes in Oregon. Some testifiers also express concerns about the lack of clear definition for Supplemental Quality Assurance inspection frequency and timing during new construction, which could lead to issues with construction defects. Overall, opponents believe that House Bill 3746 would undermine consumer rights, disadvantage homeowners, and exacerbate the affordable housing crisis.