maxdubler.com profile picture

Max Dubler 🏳️‍🌈 @maxdubler.com

Condo defect liability is very wonky but we absolutely need to fix it to make urban homeownership available to middle-class people.

If we don't get this right, ~all the new apartments will continue to be rentals and the only new starter homes for ownership will be in exurban sprawl.

Builders are liable for defects in new construction projects in California, but a system built around litigation has choked development and stalled sales.

SF condo owners are suing themselves onto a mortgage blacklist

Builders are liable for defects in new construction projects in California, but a system built around litigation has choked development and stalled sales.

Replies

  1. dynasaurarmoir.bsky.social profile picture

    @dynasaurarmoir.bsky.social

    This is hitting big in Denver, where all the new buildings are going apartment. Just as you said, any opportunity for ownership is gravitating to the burbs.

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  2. rorystolzenberg.bsky.social profile picture

    Rory Stolzenberg @rorystolzenberg.bsky.social

    I was recently speaking with a developer here (where afaik liability law isn't a big issue) and he pointed out another big reason not to build condos — rental apts are taxed as capital gains on exit b/c they're an "investment" whereas with condos you become a "dealer" & get taxed as ordinary income.

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  3. randysutton.bsky.social profile picture

    🇨🇦 Randy Sutton 🦙🍸😑😑😑 @randysutton.bsky.social

    In the 90s BC had its “leaky condo” crisis (partly precipitated by building so cal style buildings in a rainforest)

    since then in addition to building code changes, provincial govt requires contractors to purchase defect insurance with the buyer/owner as beneficiary

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  5. omermano.bsky.social profile picture

    Omer Calakos-Mano @omermano.bsky.social

    Financially owning a condo rarely seems to make sense. I sometimes feel that we would be better off not encouraging home ownership. On the other hand if people feel like they want to own a home, we should make that easy to do in urban areas.

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  6. brerbear.bsky.social profile picture

    Brer Marsh @brerbear.bsky.social

    There are policies architects can buy that allows them to do condos, it’s just the tediousness of dealing with future legal claims that makes it not worth headache

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  7. eilrach.bsky.social profile picture

    @eilrach.bsky.social

    The insurance carriers for the developers, architects, etc. don’t even respond to a claim unless litigation has been filed. After litigation has been filed, the court will decide what kind of alternative dispute resolution might be helpful. The plaintiffs’ side attorneys fees are criminal, though.

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  9. bsamuels72.bsky.social profile picture

    Barbara Samuels @bsamuels72.bsky.social

    The problem created by shoddy architecture & construction of condos is tricky to solve when builder lacks long term skin in the game. But there is an alternative to exurban sprawl —get rid of exclusionary zoning in already developed suburbs to allow smaller, denser & more affordable homes.

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  10. sikolnam.bsky.social profile picture

    Charles Taggart @sikolnam.bsky.social

    It probably doesn’t help the fight to get the policy right on this that the term “condo” is used and abused as a synonym for “new rich people housing” even when we’re talking about rental housing.

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  12. estupi.do profile picture

    diego@estupi.do @estupi.do

    as an op-ed in the chronicle noted today, it's very odd that the state realtors lobby group opposed this. building more condos seems like a slam dunk for more realtors to get more sales commissions

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