DC will help pay a condo's structural warranty claim — up to $10,000
DC will help pay a condo's structural warranty claim — up to $10,000
2026-09-09 · District of Columbia · Regulation
A District of Columbia condominium that has had to special-assess its owners in order to chase a developer over structural defects can apply for District money to offset the cost. The Department of Housing and Community Development's Rental Conversion and Sale Division administers a need-based assistance fund, with a maximum award of $10,000 per condominium, whose criteria were announced in August 2025.
Covered expenses are the ones that make a claim possible in the first place: inspections, cost estimates and attorney's fees. Eligibility turns on income documentation showing a majority of units, or the individual unit owner, below 80 percent of area median income. Applications go to the Division by email.
The fund implements the Condominium Warranty Claims Clarification Amendment Act of 2022, which directed DHCD to define what a “perfected” claim is and to establish need-based assistance.
The two-year clock is the whole ballgame
Under D.C. Code § 42-1903.16(b), a developer warrants the common elements and each unit against structural defects for two years. For a unit, the period runs from conveyance of that unit. For common elements, it runs from conveyance of the first unit or completion of the element, whichever is later.1
The developer posts security — a bond, letter of credit or cash — equal to 10 percent of estimated construction or conversion costs, with a further 10 percent of the overage if actual costs exceed estimates by more than 10 percent.
What perfecting a claim requires
DHCD's own procedure form sets out four deliverables:2
- A signed formal claim letter.
- A detailed report from a structural engineer licensed in the District.
- Copies of correspondence to the developer sent before the statutory period expired, documenting a refusal to repair.
- Three cost estimates from authorised contractors.
The Division reviews within 60 days. Miss the two-year window and what remains is a Superior Court breach-of-warranty action, available within five years of the start of the warranty period under § 42-1903.17.
Keep reading with the District of Columbia State Pass
The rest of this analysis — what an association can actually do, the recent bills and rulings, and how District of Columbia compares nationally — is for subscribers. $49/month for every District of Columbia topic on HOA Weekly.
$49/month, $449/year, or a $19.99 day pass.
What you unlock
- Why so many DC associations miss it
- What a newly turned-over board can do
- Two related tracks worth knowing
and 1 more section in detail
Already a subscriber? Sign in
Recurring monthly subscription · Cancel anytime · Need help?
Related District of Columbia HOA Topics
Stay on top of District of Columbia HOA law
Every week: new District of Columbia legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.