Legal Question in Construction Law in California

Re: law suits against homebuilder

Under California law, it is the association's duty to maintain and repair the common areas unless the CC&Rs say differently. The association is legally required to collect regular and special assessments to carry out the duties required under the law. And by statute, only the association has standing to sue for construction defects related to the common areas.

Re: law suits against homebuilder

In a purely theoretical sense, the individual homeowners could perhaps file and maintain a class action suit against the builder.

There are several real-world obstacles to such a suit. First, the HOA is perhaps irrevocably the agent of the individual owners for such matters. You would have to read your HOA Agreement and the CC&Rs. Second, since the builder contracted with the developer and not the individual owners, the latter are (at best) third-party beneficiaries of any express or implied warranties in the original construction contracts. Third, a court would have to certify the class-action suit, and would be reluctant to do so if a single-plaintiff suit by the HOA would address the same claims more efficiently.

You and other owners who disapprove of the HOA's proposed handling might want to get together to have a local attorney with some common-development real estate law experience review this HOA's foundational documents to see what he or she thinks of your chances and rights, but my guess as an outsider is that a suit by the HOA is more appropriate and more efficient.