The Bills Are Coming
The state has been working on several bills to overcome the housing crisis, and one of the most discussed and disputed is AB 2353 (Frazier). AB 2353 (Frazier) shortens the timeframe for action against a person or business for a construction defect from ten years to five years after substantial completion of the project.
Tightening the window of legal action for homeowners can initiate a reduction in insurance premiums and self-insured retentions. This bill could also stimulate an increase of general liability insurance for contractors and homebuilders. Combined, these are viewed to encourage an increase of production and will assist in keeping cost reasonable. Hopefully, with lower fixed costs for building, this will increase competition between builders and lower the price of new homes.
Some Californians have dubbed AB 2353 (Frazier) as a “justice killer” bill. Members of the homeowner community are up in arms at the decrease in liability this bill proposes. There is widespread concern that this bill will only cause more corruption in the construction process if passed by the legislators. As a result, self-insured retentions and insurance premiums will fluctuate significantly and, contractors will be at a disadvantage because they will not have to back their construction with a minimum of ten years of guarantee.
The Situation Has Been Escalating
The rising cost of the housing market is expected to climb in the coming years. Whether a person rents or owns their residence, everyone endures the hardships of these growing expenditures.
The California housing crisis has established the need for all jurisdictions to do their fair share in zoning to address homelessness. The state has decided to take large-scale steps to curtail the state’s housing crisis and to get a handle on the growing rate of the homeless population. Los Angles County’s recommendation to remedy their 13,000 homeless population is to increase education on zoning and land use actions that can be utilized to increase housing opportunities to fend off homelessness in their communities.