CHIEF SPONSOR: State Rep. Pam Marsh (D-Ashland)
WHAT IT WOULD DO: House Bill 3746 A would shorten the time frame for condo owners to sue for construction defects in condominiums from 10 years to seven years. (Colorado, Nevada and Washington allow six years, as this bill originally did before being amended.) The bill would also require developers to test new buildings for moisture intrusion at two and six years after completion and share the results of the testing with condo owners.
PROBLEM IT SEEKS TO SOLVE: Condominiums are one of the cheapest forms of homeownership, but the rate of new condo development in Oregon has declined more than 90% over the past two decades. Census data show that between 2019 and 2023, condos comprised just 2% of new home development in Oregon, one-third of the national average. Proponents of the bill say shortening the window for lawsuits will both encourage new development—by reducing liability for developers and builders—and make it easier for condo owners to sell their units because the threat of litigation would be reduced.
WHO SUPPORTS IT: The League of Oregon Cities; Habitat for Humanity, a leading developer of low-income housing and one of the state’s biggest condo developers; and Sightline Institute, a think tank that studies housing issues. The bill passed the House 46-10 on April 22 with broad bipartisan support.
“Condos are a vital, naturally occurring source of affordable homeownership, which assures long-term stability for our communities,” the LOC testified. “Currently, condos are underbuilt, due in large part to condo defect law that makes condos riskier to build and buy than a traditional single-family home.”
WHO OPPOSES IT: The Oregon Community Associations Institute Legislative Action Committee, which represents 3,980 homeowners associations across the state. Numerous condo owners and professionals involved in investigating construction defects also testified that the bill would reduce consumer protection without any guarantee of better outcomes.
“Shortening the statute of repose would severely limit the rights of homeowners to identify and recover for serious construction defects,” testified Bryan Costa, an engineer at Stantec, a Portland company that investigates such defects. “It would not improve construction quality, nor would it significantly lower costs. Instead, it would shift the burden of poor construction onto homeowners and limit their ability to hold builders and developers accountable.”
WHAT HAPPENS NEXT: Lawmakers held a work session on HB 3746 A on May 5 in the Senate Housing and Development Committee. It is not yet scheduled for further action but is very much alive.
This article appears in Source Weekly May 8, 2025.
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