Homeowner Lawsuits Slowing The Construction Of Affordable Housing

As California continues to face a housing crisis, developers complain their hands are tied from building more affordable housing by the cost of construction-defect lawsuits.

1 minute read

May 14, 2002, 7:00 AM PDT

By Christian Madera @http://www.twitter.com/cpmadera


"Two decades ago, construction-defect lawsuits were nearly unheard of, as homeowners operated under the legal principle of caveat emptor, or buyer beware, according to lawyers. But the condominium boom of the mid-80s ushered in an era of lawsuits, as homeowners challenged builders' warranties that virtually guaranteed defect-free construction...The proliferation of such lawsuits, builders say, has forced much of the insurance industry to stop covering attached-housing construction, resulting in a huge decline in affordable housing in California. Homeowner advocates counter that if builders had taken more time, care and money in producing their product during the construction boom of the late 1980s, costly lawsuits wouldn't be necessary."

Thanks to Christian Peralta

Monday, May 13, 2002 in The Los Angeles Times

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