House File 430 - Introduced HOUSE FILE BY PAULSEN (COMPANION TO LSB 2372SS BY DANIELSON) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to deficiencies in the repair or construction of 2 residential real property. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2372HH 82 5 rh/je/5 PAG LIN 1 1 Section 1. NEW SECTION. 657B.1 DEFINITIONS. 1 2 For the purposes of this chapter, the following definitions 1 3 shall apply: 1 4 1. "Builder" means a builder or developer of a new 1 5 residential unit that is sold on or after July 1, 2007. 1 6 2. "Claimant" includes an individual owner of a single= 1 7 family home, an individual unit owner of an attached dwelling, 1 8 and, in the case of a common interest development, an 1 9 association. "Claimant" does not include a person not in 1 10 privity of contract with a builder. 1 11 Sec. 2. NEW SECTION. 657B.2 NOTICE OF CLAIM == CLAIMANT. 1 12 Prior to filing an action for recovery of property damages 1 13 arising out of, or related to deficiencies in, the repair or 1 14 construction of the claimant's residence against a builder, a 1 15 claimant shall provide written notice by certified mail, 1 16 overnight mail, or personal delivery to the builder that the 1 17 repair or construction of the claimant's residence is 1 18 deficient or violates the applicable housing code or city 1 19 ordinance. The notice shall state the claimant's name, 1 20 address, and contact information, and shall describe the 1 21 nature of the claim in sufficient detail in order to determine 1 22 the nature and location of the alleged violation. 1 23 Sec. 3. NEW SECTION. 657B.3 REPAIRS OR COMPENSATION. 1 24 Within ten business days of the builder's receipt of a 1 25 claimant's notice of claim, the claimant shall provide the 1 26 builder with access to the claimant's residence and the 1 27 builder shall inspect the defect and make an offer in writing 1 28 which shall include either of the following: 1 29 1. A bona fide offer to compensate the claimant for repair 1 30 of the defect and property damages caused by the defect. 1 31 2. An offer to repair with a detailed statement 1 32 identifying the particular deficiency to be repaired, an 1 33 explanation of the nature, scope, and location of the repair 1 34 needed, and the estimated completion date of the repair, which 1 35 shall occur within either twenty=one business days of the 2 1 builder's receipt of the claimant's notice of claim, or within 2 2 reasonable weather=related construction conditions, or as 2 3 otherwise agreed to by the parties. 2 4 Sec. 4. NEW SECTION. 657B.4 REQUIREMENTS. 2 5 A builder shall provide a claimant written notice of the 2 6 requirements of this chapter at the time of closing for the 2 7 sale of the property or at the time of completion of the 2 8 repair. 2 9 EXPLANATION 2 10 This bill relates to deficiencies in residential real 2 11 property. The bill requires a claimant, as defined by the 2 12 bill, to provide a builder of residential real property with a 2 13 notice of a claim against the builder prior to commencing an 2 14 action against the builder for property damages arising from 2 15 deficiencies in the repair or construction of the residential 2 16 real property. The notice of claim is required by the bill to 2 17 state the claimant's name, address, and contact information, 2 18 and to describe in detail the nature and location of the 2 19 violation alleged against the builder. 2 20 The bill allows a builder to offer to compensate the 2 21 claimant for a deficiency or repair the deficiency. The offer 2 22 to compensate or repair must be made within 10 business days 2 23 after the builder receives the claimant's notice of claim. An 2 24 offer to compensate must be a bona fide offer and an offer to 2 25 repair must include a detailed statement identifying the 2 26 particular deficiency to be repaired; an explanation of the 2 27 nature, scope, and location of the repair; and an estimated 2 28 completion date of the repair. The estimated completion date 2 29 of the repair is required by the bill to be within 21 days of 2 30 the builder's receipt of the notice of claim, within 2 31 reasonable weather conditions, or as otherwise agreed to by 2 32 the parties. 2 33 LSB 2372HH 82 2 34 rh:nh/je/5