HCS SS SCS SB 1081 -- RESIDENTIAL CONSTRUCTION

SPONSOR:  Kinder (Pratt)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Local
Government by a vote of 16 to 1.

This substitute creates a procedural prerequisite for filing a
lawsuit for defective residential construction.  In its main
provisions, the substitute:

(1)  Requires contractors to provide written notice to
homeowners, including homeowners' associations, upon entering
contracts of the right to offer to cure construction defects
before homeowners may file legal actions;

(2)  Requires homeowners to provide written notice to contractors
detailing the alleged defective construction prior to filing a
lawsuit;

(3)  Requires contractors to respond timely in writing, offering
an inspection followed by repair, monetary compensation, or
disputation of the claim; offering monetary compensation; or
disputing the claim; and

(4)  Describes the circumstances in which homeowners must first
attempt a mediation of claims or may proceed directly to filing a
lawsuit.

FISCAL NOTE:  No impact on state funds in FY 2005, FY 2006, and
FY 2007.

PROPONENTS:  Supporters say that the bill provides protections
for both homeowners and homebuilders, gives builders a better
method to serve their clients' needs, and provides both parties
the opportunity to avoid litigation, thereby saving money.

Testifying for the bill were Senator Kinder; Homebuilders
Association of Greater St. Louis; Homebuilders Association of
Greater Kansas City; Homebuilders Association of Missouri; and
Missouri Association of Realtors.

OPPONENTS:  Those who oppose the bill say that it doesn't benefit
homeowners or community associations.  It only protects builders,
and the required mediation can actually cost more than
litigation.

Testifying against the bill were Community Associations
Institute; Heritage Residence Association; Citizens for
Responsible Community; and Carl Peterson.

OTHERS:  Others testifying on the bill say that although they
have been working with the industry on the bill, they have some
concerns.

Others testifying on the bill was Missouri Association of Trial
Attorneys.

Julie Jinkens McNitt, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:16 am