A bill moving through the Oregon Legislature — House Bill 3746 — threatens to strip key protections from homeowners and weaken accountability for developers.

While the bill is framed as a solution to the state’s affordable housing crisis, it fails to balance that goal with the need to protect homeowners. If passed, HB 3746 would reduce the time homeowners have to hold developers accountable for construction defects and make it harder to pursue legal action when things go wrong.

HB 3746 would shorten the statute of repose, which is the time limit within which homeowners can bring claims for construction defects. This provision is crucial for holding builders accountable and ensuring homes are safe and structurally sound. While supporters argue the bill will encourage development, the reality is more complex. Similar measures in other states have failed to deliver more housing and left homeowners with costly repairs and no recourse.

This is especially problematic for residents in Oregon’s community associations, which include condominium associations, homeowners associations, and housing cooperatives—types of communities where over 584,000 people live, roughly 14% of the state’s population. In these communities, homeowners have limited control over decisions made by developers, especially before control transitions to residents. If HB 3746 passes, homeowners would face even more challenges in holding developers accountable for defects that could jeopardize both their financial stability and safety.

Other states that adopted similar laws offer cautionary tales. In Colorado, after shortening its statute of repose and raising litigation hurdles, condo construction dropped from 20% of new housing starts in 2008 to just 3% in 2022 — without a meaningful increase in affordable housing. In Nevada, homeowners continue to struggle with unresolved defects despite a six-year statute of repose. These laws haven’t solved housing shortages but have left homeowners stuck with expensive repairs.

In contrast, states like Florida and Texas have found ways to foster growth without compromising consumer protections. They show that strong consumer safeguards can coexist with a growing housing market, allowing for more development while protecting homeowners’ rights.

Oregon should learn from the mistakes of other states. We can encourage affordable housing development without undermining homeowners’ rights. Lawmakers should amend HB 3746 to:

— Establish a seven-year statute of repose beginning after developer turnover, protecting homeowners from defects that arise after they’ve taken control of their communities.

— Expand right-to-repair provisions to give homeowners the tools to address issues before they escalate into costly problems.

— Strengthen consumer protections to ensure builders remain accountable for their work and homeowners can seek recourse when needed.

HB 3746, as currently written, threatens the financial security and safety of homeowners in Oregon. Instead of rushing through a bill that mirrors the failed policies of other states, Oregon should craft solutions that balance affordable housing goals with the essential protections that homeowners need. Residents deserve safe, high-quality housing, without the risk of being left to pay for developer mistakes.

— Sara Eanni lives in Beaverton. She is the president of Associs, which sells community association insurance.