The Warranty Filing Assistance Fund
for
Washington DC Condominium Construction Defect Warranty Claims
By Cowie Law Group, P.C.
Washington DC Condominium Construction Defect Warranty Lawyers
Maryland HOA Construction Defects Attorneys
The District of Columbia has established a fund to assist condominium associations and individual unit owners with up to $10,000 toward the cost of filing a Washington DC construction defect warranty claim with the Department of Housing and Community Development (DHCD). Once a properly documented warranty claim is filed, DHCD can award the cost of repairing condominium construction defects from developer funds posted with District of Columbia as security to ensure proper construction.
Background –
The Washington DC Condominium Construction Defect Warranty
The District of Columbia Condominium Act contains an implied statutory warranty designed to protect condominium associations and their unit owner members from construction defects in newly constructed condominiums. This warranty protection – known a as the “Warranty Against Structural Defects” – is backed by a condominium developer’s bond, letter of credit, or other form of “warranty security” from which monetary funds can be drawn upon to pay for construction defect warranty repairs.
If the developer fails to correct a construction defect covered by the warranty, a condominium association or unit owner can file a lawsuit in a court of law to enforce the warranty or pursue an administrative claim with DHCD to recover monies for repairs from the developer’s warranty security. The administrative structural defect warranty claim filed with DHCD is often referred to as a “structural defect warranty security claim” because recovery is sought against, and limited by the amount of, the developer’s warranty security.
Significantly, the term “structural defect” is broadly defined in the Condominium Act and covers many types of typical construction defects (e.g., leaking roofs and windows), not just those typically thought of as “structural.”
For a more detailed analysis of the Warranty Against Structural Defects, see Cowie Law Group Article: “The Washington DC Condominium Construction Defect Warranty Claims Act for Structural Defects.”
The Warranty Filing Assistance Fund –
Financial Support for Filing Washington DC Condominium Construction Defect Warranty Claims
The DHCD’s Warranty Filing Assistance Fund provides need-based financial assistance to condominium associations and unit owners who face hardship due to the cost pursuing a structural defect warranty security claim arising out of the defective construction of a condominium in the District of Columbia.
The Fund is administered by DHCD’s Housing Regulation Administration through the “Rental Conversion and Sales Division” (“RCSD,” or “CASD” for short) (hereinafter “DHCD / CASD”). Awarded funds may be used to offset expenses associated with filing a structural defect warranty security claim, which is a necessary first step to seek the cost of repairing condominium construction defects from the condominium developer’s warranty security. CASD also oversees all administrative structural defect warranty security claims and has the authority to make monetary awards from the developer’s warranty security listed with the District of Columbia.
Typical Expenses Associated with Filing a Structural Defect Warranty Security Claim
Pursuing a structural defect warranty security claim typically requires the involvement of transition construction consultants and experienced legal counsel. These professionals play a critical role in identifying defects, quantifying damages, and preserving the Association’s legal rights.
Transition Deficiency Report
Following the transition of a condominium from developer to unit owner control, the Unit Owners’ Association Board of Directors typically retains an engineering consulting firm to evaluate the construction of the common elements. The consultant prepares a Transition Deficiency Report, which documents observed construction defects.
This report is presented to the developer by legal counsel while Washington DC condominium construction defect warranty claims are still enforceable. See, Cowie Law Group article: “Developer Transition for Washington DC Condominium Associations.”
Repair Cost Estimate
A Cost Estimate to repair the construction defects and damages caused thereby will be necessary to prove monetary damages, if the developer declines to perform warranty repairs.
Transition Legal Counsel Services
Condominium associations typically retain legal counsel experienced in condominium construction defect matters during the transition period. Transition counsel advises the Board and represents the Association in enforcing construction defect warranty rights and related claims, while also working to negotiate a resolution with the developer where possible.
Role of Transition Professionals in Constrution Defect Warranty Defect Claims
A transition construction consultant working in coordination with legal counsel with building defect expertise will:
- Identify / document known & latent defects that may not yet be visible but could result in significant future costs (e.g., building envelope failures, water intrusion, roofing defects, and other common element deficiencies).
- Hold the developer accountable for repairs through negotiation, litigation, or by pursuing a structural defect warranty security claim with DHCD / CASD.
- Interpret technical findings and translate engineering reports into actionable legal claims.
- Preserve critical deadlines, ensuring compliance with statutory limitations and warranty periods.
- Maximize recovery through repairs, reimbursements, or negotiated settlements.
Without this coordinated approach, associations risk inheriting significant repair costs that may ultimately be passed on to unit owners if timely and effective Washington DC condominium construction defect warranty claims are not made.
Rules on Fund Eligibility and Covered Expenses
According to DHCD/CASD the following rules apply to the Warranty Filing Assistance Fund:
Financial assistance is available to:
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- Unit owners or condominium associations that have incurred a special assessment directly related to the costs of filing a structural defect warranty claim.
Covered expenses include:
-
- Inspections
- Cost estimates
- Attorney’s fees
Application requirements include:
-
- A copy of the warranty claim or civil complaint
- Financial documentation showing a special assessment
- Income verification (majority of units or applicant must be below 80% AMI)
- Supporting invoices (inspections, estimates, etc.)
Applications must be submitted to CASD at casd.dhcd@dc.gov.
Maximum award:
$10,000 per condominium is the maximun award amount.
Appendix A to this article contains the official announcement of these rules by the DHCD / CASD Administrator.
Using the Fund to Support Warranty Claim Preparation
To file a structural defect warranty security claim with DHCD/CASD, the following documentation is typically required:
- Transition Deficiency Report
- Repair Cost Estimate
- Documentation demonstrating efforts to resolve the claim with the developer (often prepared by transition counsel)
These materials are typically developed by the transition consultant and attorney—and importantly, they represent the types of expenses that may be eligible for reimbursement through the Warranty Filing Assistance Fund and which are also required by DHCD to be included as supporting documentation for a structural defect warranty security claim.
Legislative Authority and Implementation
The Warranty Filing Assistance Fund was established under the Condominium Warranty Claims Clarification Amendment Act of 2022, which amended § 42-1903.16 of the DC Condo Act. Although authorized in 2022, the program did not become operational until 2025 due to budget constraints. See Fiscal Impact Statement – Condominium Warranty Claims Clarification Amendment Act of 2022, prepared by DC Chief Financial Officer
The Amendment directs DHCD to establishment eligibility Criteria based on financial need and to provide assistance to associations and unit owners facing special assessments to cover expenses resulting from structural defect discovered during the warranty period. DC Condo Act § 42-1903.16 (i)(1).
Conclusion
The District’s Warranty Filing Assistance Fund offers a meaningful opportunity for condominium associations and unit owners to pursue structural defect claims without bearing the full financial burden upfront. By reducing cost barriers, the program helps expand the ability of the public to enforce Washington DC Condominium Construction Defect Warranty protections and promote accountability among developers for defective condominium construction.
For HOA Condominium communities facing special assessments tied to construction defects, the Warranty Filing Assistance Fund may provide critical financial relief. Associations and unit owners should evaluate their eligibility and consider consulting experienced counsel to maximize recovery and ensure compliance with DHCD requirements.
Appendix A
Published Warranty Filing Assistance Fund Eligibility Rules
On August 8, 2025, DHCD / CASD Administrator Terrance Laney, Esq., outlines the funding programs framework, including eligibility requirements, covered expenses, and award limits:
“The Department of Housing and Community Development (DHCD) has established needs-based assistance funds for claimants who filed a structural defect warranty claim with the agency and thereafter underwent a special assessment to cover costs associated with filing a claim. The Condominium Warranty Claims Clarification Amendment Act of 2022 (Amendment Act) clarified and established the authority of DHCD to resolve breach of warranty claims under the Condominium Act. The Amendment Act directs the agency to establish the criteria for a “perfected” warranty claim and to establish this assistance fund to provide need-based assistance to condominium owners who experience hardship because of filing a warranty claim.
Criteria for Determining Eligibility
According to the Amendment Act, financial assistance should be made available to claimants who have had to undergo a special assessment because of a warranty claim issue:
- Any unit owners or unit owners’ associations that underwent a special assessment as a direct consequence of a unit owners association’s expenditures resulting from the filing of a structural defect warranty claim.
Expenses Covered
- Inspections
- Costs Estimates
- Attorney’s Fees
To Apply: Submit the following documentation to the Rental Conversion and Sale Division (CASD) at casd.dhcd@dc.gov
- A copy of warranty claims or civil complaint
- Recent financial demonstrating a special assessment charged to cover warranty claim costs
- Income information for unit owners ( a majority of units or the unit owner must be below 80% AMI )
- Copies of invoices (inspections, estimates, etc.,)
Award Amount: The total maximum award is set at $10,000 per condominium.”
DISTRICT OF COLUMBIA CONDOMINIUM LAWYERS
MARYLAND HOA ATTORNEYS
WASHINGTON DC CONSTRUCTION DEFECT ATTORNEYS
410-327-3800 | 202-670-6289 | 301-830-8315
