The DC Council has proposed legislation that would dramatically increase developers’ exposure for condominium warranty liability and could impact developers’ financial ability to finance, develop, and construct condominiums. …
A virtual hearing on Bill 23-601 is scheduled for Thursday, September 17, 2020, at 3 p.m. Requests to testify and written testimony must be submitted no later than Tuesday, September 15, 2020, at 5 p.m. We urge developers to submit testimony in writing and/or in person expressing opposition to this bill.
Establishment of new and additional requirements applicable to the amount and type of warranty security posted. Currently, warranty security shall be posted with the Department of Housing and Community Development (DHCD) to cover the two-year warranty period under the Condominium Act in an amount equal to 10 percent of the construction costs for the residential portion of the condominium project. This amount is typically based upon a good faith estimate.
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