The Oregon House took a significant step on Tuesday by advancing House Bill 3746, which aims to shorten the window for homeowners to sue condominium developers for construction defects.

Supporters of the bill argue that reducing developers' exposure to lawsuits would incentivize the construction of more condominiums, potentially making homeownership more accessible, particularly for first-time buyers. "If developers know they have a more defined liability period, they may be more inclined to invest in and build new condo projects," said a proponent of the bill.

However, opposition to the bill has surfaced, with critics claiming it could shift the financial burden of construction issues from developers to condo owners. "The impact of defective construction would fall onto the shoulders of the homeowners and their homeowner associations, who would need to use their dues to cover the costs of repairs," said one of the bill's opponents.

Advocates argue that the availability of affordable housing is critical, especially as condos generally tend to be more affordable compared to single-family homes. "All things equal, condos offer a less expensive entry into homeownership, and that’s a vital piece of the housing market puzzle," said one legislator supporting the bill.

While the bill moves forward in the legislative process, it continues to generate debate about the balance between encouraging development and ensuring that construction defects are properly addressed.

Proponents of the bill also emphasize the potential economic growth from a higher rate of condo construction. As developers are encouraged to build more units, it could potentially reduce housing shortages and promote economic development in urban areas where demand for housing is high. However, opponents are concerned that shortening the statute of limitations could lead to insufficient protections for homeowners, leaving them at risk of bearing the financial burden for construction issues they had no part in causing.

The bill, if passed, would be a significant shift in Oregon's housing policy, with implications for both developers and homeowners. It remains to be seen how the bill will fare in the Senate and whether it will ultimately become law.

Originally reported by Jonathan Bach in Oregon Live.