Multifamily housing construction has been booming across the country, evidence of what has been dubbed the “back-to-downtown movement.” Much of the construction has been at the top end of the residential market, particularly in the luxury apartment sector. Despite this, in pockets of the country, condominium construction is at near all-time lows, in part due to legal frameworks that make it easy for HOAs to bring expensive construction defect suits against developers and contractors. Developers and contractors are natural (and sometimes easy) targets for HOA boards, who all too often view a construction defect lawsuit as a no-lose proposition. Once filed, construction defect lawsuits can last years, and the costs of defending them can be staggering — and in the meantime unit owners are frequently unable to sell their units.
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