(a)The following requirements apply to an association’s authority under subdivision 3-102 (a)(4) of this title to institute and maintain a proceeding alleging a construction defect with respect to the common interest community, whether by litigation, mediation, arbitration, or administratively, against a declarant or an employee, independent contractor, or other person directly or indirectly providing labor or materials to a declarant:
(1)Subject to subsection (e) of this section, before the association institutes a proceeding described in this section, it shall provide notice in a record of its claims to the declarant and those persons that the association seeks to hold liable for the claimed defects. The text of the notice may be in any form reasonably calculated to give notice of the
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(a) The following requirements apply to an association’s authority under subdivision 3-102 (a)(4) of this title to institute and maintain a proceeding alleging a construction defect with respect to the common interest community, whether by litigation, mediation, arbitration, or administratively, against a declarant or an employee, independent contractor, or other person directly or indirectly providing labor or materials to a declarant:
(1) Subject to subsection (e) of this section, before the association institutes a proceeding described in this section, it shall provide notice in a record of its claims to the declarant and those persons that the association seeks to hold liable for the claimed defects. The text of the notice may be in any form reasonably calculated to give notice of the general nature of the association’s claims, including a list of the claimed defects. The notice may be delivered by any method of service and may be addressed to any person if the method of service used:
(A) provides actual notice to the person named in the claim; or
(B) would be sufficient to give notice to the person in connection with commencement of an action by the association against the person.
(2) Subject to subsection (e) of this section, the association may not institute a proceeding against a person until 45 days after the association sends notice of its claim to that person.
(3) During the period described in subdivision (2) of this subsection, the declarant and any other person to which the association gave notice may present to the association a plan to repair or otherwise remedy the construction defects described in the notice. If the association does not receive a timely remediation plan from a person to which it gave notice, or if the association does not accept the terms of any plan submitted, the association may institute a proceeding against the person.
(4) If the association receives one or more timely remediation plans, the executive board shall consider promptly those plans and notify the persons to which it directed notice whether the plan is acceptable as presented, acceptable with stated conditions, or not accepted.
(5) If the association accepts a remediation plan from a person the association seeks to hold liable for the claimed defect, or if a person agrees to stated conditions to an otherwise acceptable plan, the parties shall agree on a period for implementation of the plan. The association may not institute a proceeding against the person during the time the plan is being diligently implemented.
(6) Except as otherwise provided in subsection 4-116(d) of this title for warranty claims, any statute of limitation affecting the association’s right of action against a declarant or other person is tolled during the period described in subdivision (2) of this section and during any extension of that time because a person to which notice was directed has commenced and is diligently pursuing the remediation plan.
(b) After the time described in subdivision (a)(2) of this section expires, whether or not the association agrees to any remediation plan, a proceeding may be instituted by:
(1) the association against a person to which notice was directed that fails to submit a timely remediation plan, the plan of which is not acceptable, or that fails to pursue diligent implementation of that plan; or
(2) a unit owner with respect to the owner’s unit and any limited common elements assigned to that unit, regardless of any action of the association.
(c) This section does not preclude the association from making repairs necessary to mitigate damages or to correct any defect that poses a significant and immediate health or safety risk.
(d) Subject to the other provisions of this section, the determination of whether and when the association may institute a proceeding described in this section may be made by the executive board. The declaration may not require a vote by any number or percent of unit owners as a condition to institution of a proceeding.
(e) This section does not prevent an association from seeking equitable relief at any time without complying with subdivision (a)(1) or (2) of this section. (Added 2009, No. 155 (Adj. Sess.), § 42, eff. Jan. 1, 2012.)