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

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 16, 2025 - Diana Ionescu

Black and white photos of camp made up of small 'earthquake shacks' in Dolores Park in 1906 after the San Francisco earthquake.

The 120 Year Old Tiny Home Villages That Sheltered San Francisco’s Earthquake Refugees

More than a century ago, San Francisco mobilized to house thousands of residents displaced by the 1906 earthquake. Could their strategy offer a model for the present?

April 15, 2025 - Charles F. Bloszies

Crowds of people walking and biking along waterfront in Sunset Dunes Park in San Francisco, California on a sunny day.

San Francisco Opens Park on Former Great Highway

The Sunset Dunes park’s grand opening attracted both fans and detractors.

April 22 - Mission Local

Portland Oregon Bus

Oregon Legislature to Consider Transit Funding Laws

One proposal would increase the state’s payroll tax by .08% to fund transit agencies and expand service.

April 22 - KATU.com

Houston, Texas skyline.

Housing Vouchers as a Key Piece of Houston’s Housing Strategy

The Houston Housing Authority supports 19,000 households through the housing voucher program.

April 22 - Urban Edge