{"id":906023,"date":"2026-08-19T16:08:23","date_gmt":"2026-08-19T22:08:23","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=906023"},"modified":"2026-08-19T16:08:25","modified_gmt":"2026-08-19T22:08:25","slug":"construction-defect-reform-oregon","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-defect-reform-oregon\/","title":{"rendered":"Construction Defect Reform Comes to Oregon: What Developers and HOAs Need to Know"},"content":{"rendered":"\n

Mekdes Abate and Angela A. Hill | Summit Law Group<\/a><\/p>\n\n\n\n

Oregon has joined neighboring states in revisiting condominium construction-defect laws<\/a>. Enacted in 2025,\u00a0HB 3746<\/a>\u00a0shortens the period for certain construction-defect claims while establishing new inspection and procedural requirements for homeowners associations and condominium associations.\u00a0<\/p>\n\n\n\n

The legislation seeks to reduce long-term construction-defect litigation risk for developers while preserving protections for condominium owners. For developers and associations alike, understanding these new requirements will be essential when planning projects and responding to potential construction defects. <\/p>\n\n\n\n

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Why the Reform? <\/h4>\n\n\n\n

Supporters of HB 3746 argued that prolonged litigation exposure and rising insurance costs have contributed to declining condominium development in Oregon. The Legislature responded by shortening the time for certain construction-defect claims while requiring earlier inspections intended to identify problems before the claim period expires. <\/p>\n\n\n\n

The legislation also establishes additional procedures before homeowners associations and condominium associations may pursue construction-defect litigation, giving owners greater notice and involvement in the process. <\/p>\n\n\n\n

From Ten Years to Seven: The New Repose Period <\/h4>\n\n\n\n

For condominium declarations filed after January 1, 2026, HB 3746 generally gives homeowners associations and condominium associations seven years\u2014instead of ten\u2014to bring certain construction-defect claims. <\/strong><\/p>\n\n\n\n

The seven-year period runs from substantial completion or abandonment of the construction, alteration, or repair of the structure. After the seven-year period expires, no action may be brought. However, if a defect is discovered between the sixth or seventh year after substantial completion, the association has an additional year to bring a claim. <\/p>\n\n\n\n

Condominiums in which each owner is responsible for both the interior and exterior of the owner’s unit are exempt from the seven-year limitation and from the inspection requirements discussed below. <\/p>\n\n\n\n

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Moisture Inspections Before the End of Year Two and Year Six <\/h4>\n\n\n\n

The shorter claim period comes with a corresponding obligation\u2014mandatory independent moisture-intrusion inspections. <\/p>\n\n\n\n

HB 3746 requires two independent moisture-intrusion inspections: one before the end of the second year following substantial completion, funded through the association’s reserves, and another before the end of the sixth year. <\/p>\n\n\n\n

Supporters described these inspections as a way to identify building-envelope and moisture-intrusion problems while associations still have time to investigate and pursue claims. <\/p>\n\n\n\n

At the turnover meeting, the declarant must provide the association with the inspection results, along with the inspector’s name. <\/p>\n\n\n\n

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Procedural Requirements for HOA Legal Claims <\/h4>\n\n\n\n

HB 3746 also creates additional procedural requirements for homeowners associations and condominium associations pursuing construction-defect claims. Associations now face a staged process that may add three months or more before a complaint can be filed. <\/p>\n\n\n\n

What Stays the Same <\/strong><\/em><\/p>\n\n\n\n

Before suing on owners’ behalf, the association must continue to provide each affected owner with written notice at least 10 days before initiating litigation. <\/p>\n\n\n\n

The notice must continue to include: <\/p>\n\n\n\n