ENROLLED ORIGINAL
AN ACT
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IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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To amend, on an emergency basis, due to congressional review, the Condominium Act of 1976
to clarify standards and procedures governing the resolution of a claim for a
condominium developers warranty against structural defects, that a claimant may appeal
the findings of the Mayor to the Office of Administrative Hearings, and the
circumstances when the Mayor may release the warranty security funds to the claimant.
BE IT ENACTED BY THE COUNCIL DISTRICT OF COLUMBIA, That this act may
be cited as the Condominium Warranty Claims Clarification Congressional Review Emergency
Amendment Act of 2020.
Sec. 2. Section 316 of the Condominium Act of 1976, effective March 29, 1977 (D.C.
Law 1-89; D.C. Official Code 42-1903.16), is amended as follows:
(a) Subsection (a) is amended to read as follows:
(a) As used in this section, the term:
(1) Adjudication shall have the meaning set forth in section 102(19) of the
District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204;
D.C. Official Code 2-502(19)).
(2) Claimant means a person or entity asserting a claim under the warranty for
structural defects required by this section.
(3) Conveyance means the transfer of title by written instrument.
(4) Order shall have the meaning set forth in section 102(11) of the District of
Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C.
Official Code 2-502(11)).
(5) Perfected claim means a claim that contains all the required information
and proof for which all requirements of this section and any other applicable law or regulation
are satisfied.
(6) Structural defect means a defect in a component that constitutes any unit or
portion of the common elements that reduces the stability or safety of the structure below
standards commonly accepted in the real estate market or that restricts the normally intended use
of all or part of the structure and which requires repair, renovation, restoration, or replacement.
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The term structural defect does not include items of maintenance relating to the units or
common elements..
(b) New subsections (e-1) and (e-2) are added to read as follows:
(e-1)(1) A claimant asserting a claim for a structural defect under this section shall
provide notice of each such claim to the Mayor and to the declarant on a form issued by the
Mayor.
(2) The declarant shall notify the Mayor within 10 business days after receiving a
notice of a structural defect from a claimant.
(3) Within 90 days after providing notice to the Mayor and to the declarant
pursuant to paragraph (1) of this subsection, the claimant may pursue the remedies provided by
this act by filing a claim with the Mayor on a form prescribed by the Mayor.
(4) Within 60 days after receiving a claim, the Mayor shall determine whether
the claim is a perfected claim, and if so, the Mayor shall adjudicate the claim on the merits and
issue an order setting forth the decision of the Mayor.
(5)(A) The order of the Mayor may be appealed by the declarant or claimant to
the Office of Administrative Hearings no later than 30 days after the order is issued by the
Mayor.
(B) An appeal of a Mayors order issued pursuant to this section shall be
reviewed de novo by the Office of Administrative Hearings.
(6) In the event that the Mayor has not yet issued the forms required by
paragraphs (1) and (3) of this subsection, the claimant may submit a claim in writing in a manner
and form satisfactory to the Mayor.
(e-2) The Mayor shall approve the release of the funds secured under subsection (e) of
this section to satisfy any costs that arise from a declarants failure to satisfy the requirements of
this section pursuant to:
(1) A written agreement between the declarant and claimant regarding the
release of the warranty security in satisfaction of the claim, approved by the Mayor,
(2) An order issued by the Mayor pursuant to subsection (e-1)(4) of this section,
after the expiration of the applicable appeal period;
(3) An order of the Office of Administrative Hearings issued on appeal under
subsection (e-1)(5) of this section, after the expiration of the applicable appeal period; or
(4) An order of a court of competent jurisdiction, after the expiration of the
applicable appeal period..
(c) Subsection (f) is repealed.
Sec. 3. Applicability.
This act shall apply as of May 27, 2020.
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Sec. 4. Fiscal impact statement.
The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact
statement required by section 4a of the General Legislative Procedures Act of 1975, approved
October 16, 2006 (120 Stat. 2038; D.C. Official Code 1-301.47a).
Sec. 5. Effective date.
This act shall take effect following approval by the Mayor (or in the event of veto by the
Mayor, action by the Council to override the veto), and shall remain in effect for no longer than
90 days, as provided for emergency acts of the Council of the District of Columbia in section
412(a) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 788;
D.C. Official Code 1-204.12(a)).
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Chairman
Council of the District of Columbia
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Mayor
District of Columbia
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