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DC Developers Raise Concerns About Proposed Condo Bill

Tuesday, September 15, 2020

A proposed bill in DC intended to protect new condo owners from defects may have unintended consequences, according to local developers.

The Condominium Warranty Amendment Act of 2020 would amend the Condominium Act of 1976 to require condo developers (the "declarant") to put aside 10% of the estimated cost of construction and/or conversion of each new unit in order to cover any potential structural defect claims.

The bill was originally introduced in January, as was a competing bill which has a narrower definition of structural defects and directs claims to the Department of Housing and Community Development; the Committee on Housing and Neighborhood Revitalization will hold a public hearing on both bills on Thursday.

Urban Turf/Nena Perry-Brown