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Construction Defect Litigation Ordinance

An ordinance governing construction defect litigation in Douglas County

At a Business Meeting on Tuesday, Nov. 18, the Board of Douglas County Commissioners introduced a new ordinance focused on establishing rules for construction defect litigation in our community. Now, they’re asking for your feedback.

The construction of new homes in Douglas County is essential for the long-term wellbeing of our community.

Homeownership is a major factor in the health, safety, and financial wellbeing of residents and allows for families at every stage of life to find a property that fits their needs. 

Obstacles such as construction defect litigation often prevent the construction of these new homes that are so important to our residents and the local economy. That is why the Board has introduced a system for governing construction defect litigation that will empower homeowners, hold builders responsible, and encourage the construction of owner-occupied developments. 

What This Means for Our Community

Read the full ordinance.

About the proposed ordinance

Gives homeowners more say in HOA lawsuits

Before an HOA can file a construction defect lawsuit, it must:

  • Notify every homeowner about the issue.
  • Share clear information about the problem, the risks, and the possible costs.
  • Get written approval from a majority of homeowners before moving forward.

This ensures that homeowners—who ultimately bear the costs and consequences—have a direct voice in the decision.

Allows builders a chance to inspect and fix problems

If a homeowner reports a possible construction defect:

  • The builder must be notified and allowed to inspect the issue.
  • Builders can choose to repair the problem at their own expense.
  • Repair work must follow a detailed written plan, and homeowners receive a new two-year warranty on the repairs.

This helps resolve many issues quickly—without lengthy, expensive litigation.

Creates more transparency with the County

If a construction defect claim involves County codes or regulations, the County will be notified and may perform its own inspection. This helps ensure that any safety or building-code concerns are addressed promptly and publicly.

Clarifies how County regulations can be used in lawsuits

The ordinance makes clear that:

  • County building codes can’t automatically be used to sue builders.
  • A violation must be directly linked to property damage, a safety issue, or another real impact.
  • Homeowners can still recover economic damages related to a violation.

This prevents minor or technical violations from triggering costly litigation while still protecting homeowners when real harm occurs.

Let us know what you think!

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