Condominiums like the Rockwell in San Francisco, seen in 2017, are becoming rarer in California. A 2002 law to address construction defects led to a proliferation of lawsuits that make condo construction more expensive.

California once built tens of thousands of new condominiums per year.  Today, it builds closer to 3,000. In a state where housing affordability is the defining political issue of the decade, the type of home most likely to put a young family into ownership has nearly disappeared.

That matters because in dense cities like San Francisco, condos are often the only realistic path to middle-class home ownership. San Francisco is built out; no new single-family lots are coming, and the only path to expanding home ownership here runs through condos. For younger families, teachers, engineers, nurses and other professionals who want to stay in the city long-term, ownership increasingly depends on the ability to buy rather than rent an apartment forever.

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The problem is not demand. It is a legal framework that has made condominium development uniquely risky.

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California has made condos extraordinarily difficult and expensive to build. The state’s 2002 Right to Repair Act, Senate Bill 800, was enacted to address legitimate concerns about construction defects, including leaking roofs, water intrusion and improperly installed building components. The law expanded homeowners’ rights while requiring builders to inspect and repair defects before litigation could proceed. The goal was simple: encourage repairs and reduce lawsuits.

Yet the system evolved into one where developers remain exposed to costly litigation even after promptly fixing problems. The result has been predictable. Insurers charge dramatically higher premiums........

© San Francisco Chronicle