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1 A BILL
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3 23-622
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5 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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7 ____________________
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10 To amend, on an temporary basis, the Condominium Act of 1976 to clarify standards and
11 procedures governing the resolution of a claim for a condominium developers warranty
12 against structural defects; to clarify that a claimant may appeal the findings of the Mayor
13 to the Office of Administrative Hearings and to clarify the circumstances when the
14 Mayor may release the warranty security funds to a claimant.
15 BE IT ENACTED BY THE COUNCIL DISTRICT OF COLUMBIA, That this act may
16 be cited as the Condominium Warranty Claims Clarification Temporary Amendment Act of
17 2020.
18 Sec. 2. Section 316 of the Condominium Act of 1976, effective March 29, 1977 (D.C.
19 Law 1-89; D.C. Official Code 42-1903.16), is amended as follows:
20 (a) Subsection (a) is amended to read as follows:
21 (a) As used in this section, the term:
22 (1) Adjudication shall have the meaning set forth in section 102(19) of the
23 District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204;
24 D.C. Official Code 2-502(19)).
25 (2) Claimant means a person or entity asserting a claim under the warranty for
26 structural defects required by D.C. Official Code 42-1903.16.
27 (3) Conveyance means the transfer of title by written instrument.
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28 (3) Order shall have the meaning set forth in section 102(11) of the District of
29 Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C.
30 Official Code 2-502(11)).
31 (4) Perfected claim means a claim that contains all required information or
32 proof and for which all requirements of this section and any other applicable law or regulation
33 are satisfied.
34 (5) Structural defect means a defect in a component that constitutes any unit or
35 portion of the common elements that reduces the stability or safety of the structure below
36 standards commonly accepted in the real estate market or restricts the normally intended use of
37 all or part of the structure and which requires repair, renovation, restoration, or replacement. The
38 term structural defect does not include items of maintenance relating to the units or common
39 elements..
40 (b) New subsections (e-1) and (e-2) are added to read as follows:
41 (e-1)(1) A claimant asserting a claim for a structural defect under this section shall
42 provide notice of each such claim to the Mayor and the declarant on a form issued by the Mayor.
43 (2) Notwithstanding paragraph (1) of this subsection, the declarant shall notify
44 the Mayor within 10 business days after receiving a notice of structural defect from a claimant.
45 (3) Within 90 days after providing notice to the Mayor and to the declarant
46 pursuant to paragraph (1) of this subsection, the claimant may pursue the remedies provided by
47 the Act by filing a claim with the Mayor on a form issued by the Mayor.
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48 (4) After receipt of a claim, the Mayor shall determine whether the claim is a
49 perfected claim, and if so, the Mayor shall adjudicate the claim on the merits and issue an order
50 setting forth the decision of the Mayor within 60 days.
51 (5) (A) The order of the Mayor may be appealed by the declarant or claimant to
52 the Office of Administrative Hearings no later than 30 days after the order is issued by the
53 Mayor.
54 (B) Review of the Mayors order by the Office of Administrative
55 Hearings shall be de novo.
56 (6) In the event that the Mayor has not yet issued the forms required by
57 paragraphs (1) and (3) of this subsection, the claimant may assert a claim in writing to the
58 satisfaction of the Mayor.
59 (e-2) The Mayor shall approve the release of the funds secured under subsection (e) of
60 this section to satisfy any costs that arise from a declarants failure to satisfy the requirements of
61 this section, pursuant to:
62 (1) A written agreement between the declarant and claimant regarding the
63 release of the warranty security in satisfaction of the claim, approved by the Mayor..
64 (2) An order issued by the Mayor in an adjudication pursuant to subsection
65 (e-1)(4) of this section, after the expiration of the applicable appeal period;
66 (3) An order of the Office of Administrative Hearings issued on appeal under
67 subsection (e-1)(5) of this section, after the expiration of the applicable appeal period;
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68 (4) An order of a court of competent jurisdiction, after the expiration of the
69 applicable appeal period.
70 (c) Subsection (f) is repealed.
71 Sec. 3. Fiscal impact statement.
72 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
73 statement required by section 4a of the General Legislative Procedures Act of 1975, approved
74 October 16, 2006 (120 Stat. 2038; D.C. Official Code 1-301.47a).
75 Sec. 4. Effective date.
76 (a) This act shall take effect following approval by the Mayor (or in the event of veto by
77 the Mayor, action by the Council to override the veto), a 30-day period of Congressional review
78 as provided in section 602(c)(l) of the District of Columbia Home Rule Act, approved December
79 24, 1973 (87 Stat. 813; D.C. Official Code 1-206.02(c)(l)), and publication in the District of
80 Columbia Register.
81 (b) This act shall expire after 225 days of its having taken effect.
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