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AB 1903

Construction defects.

2025-2026 Regular Session Introduced by Josh Becker and 6 co-sponsors

AB 1903 creates an optional certified-building pathway for new condos and townhomes, allowing builder-led inspections and releases in exchange for repairs or payments instead of co

Re-referred to Com. on APPR.
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Bill Summary · AB 1903

Summary of AB 1903 (2025-2026) – Construction Defects

Purpose and intent

AB 1903 seeks to reform and create an optional, alternative framework for handling residential construction defect claims in California. The bill introduces a certified-building pathway for condominium projects and townhouse developments constructed on or after January 1, 2027, and makes related changes to presuit notice, prelitigation procedures, damages, and association governance. The overall aim appears to shift certain defect claims away from traditional civil litigation toward a builder-controlled process, with standardized inspections and potential releases in exchange for repairs or payments.

Key provisions and changes

Certified Building program (new Chapter 4.5, Civil Code)

  • Optional program for qualifying buildings (condominiums and townhomes built after Jan 1, 2027).
  • Builder may obtain “certified building” status after private inspections and repairs during construction, conducted by a private licensed architect, engineer, or general contractor with no direct financial interest in the builder.
  • Inspections cover grading, foundations, framing, plumbing, exteriors, and health/safety features (e.g., seismic, fire suppression).
  • After inspections and any approved repairs, the inspector certifies the building as certified, and status cannot be challenged in the future.
  • Builder may establish its own process for postconstruction claims within this chapter, including notice, inspections, and repairs. Access for repairs is mutually agreed upon; if the claimant refuses or unduly delays access (7 days), the repair is deemed complete and a release is presumed.

Prelitigation notices and claims (Civil Code Sections 910, 929, 930)

  • Strengthened presuit notice under Section 910: requires detailed notices including observable damage evidence, photos, estimates/reports, and the specific room(s) containing evidence. Notices for associations must be signed by affected members or verified by the association president.
  • The prelitigation framework is designed to co-exist with, but may replace, traditional paths if using the certified-building process.

Release and settlement mechanics

  • Repeals and amendments allow releases/waivers in exchange for repairs (one year after repair) or cash payments, and a broader authority to obtain releases for any claims tied to the written notice.
  • Insurers: cannot treat repairs as voluntary payments or count repair costs against deductibles or self-insured retentions.

Burden of proof and damages

  • Under existing law, homeowners must prove a violation and, in some instances, causation and damages. AB 1903 tightens requirements: claimants must affirmatively demonstrate a violation, present damage, and link the defect to original construction.
  • Damages are limited to specified recoveries such as reasonable repair costs, costs of correcting defective repairs, relocation/storage, lost business income if applicable, and other contractually or statutorily recoverable costs. Investigative costs and claims based on extrapolation are restricted or eliminated.

Common Interest Developments (CID) and associations

  • Construction defect claims are excluded from the associations’ authorization to sue for damage to separate interests.
  • Stricter notice requirements to CID members before filing actions, including a bold 12-point warning about potential impacts on property value, resale, and financing. A courtesy copy must go to the builder.
  • Associations and officers/directors are not liable for fiduciary breaches if they do not file a claim or action.

Filing conditions and timelines

  • Actions may not be filed unless conditions for each claimed violation are met.
  • Parties may opt into a nonadversarial, builder-driven process with specific timelines and mutual agreements.

Who is affected

  • Builders/developers of qualifying condominium and townhouse projects (post-2027).
  • Homeowners and homeowners associations in CID projects.
  • Private inspectors (licensed architects/engineers/general contractors) serving the certified-building pathway.
  • Insurers, who are restricted from certain treatment of repair costs.
  • Real Estate Department (DER) in relation to inspector certification lists (by July 1, 2028).

Procedural and timeline aspects

  • The certified-building provisions become effective for buildings constructed on/after January 1, 2027.
  • DER must publish a list of eligible inspectors by July 1, 2028.
  • The prelitigation notice requirements apply to initial claims as amended under the bill.
  • Various sections repeal, add, or amend elements of the Civil Code related to notices, releases, and proof standards.

This bill reflects a comprehensive shift toward a private inspection-based, nonlitigation-focused approach for specific new residential projects, while preserving certain traditional remedies for other scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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