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March 13, 2007
DCRA Steps Up Enforcement of Condo Warranty Requirements

(Washington, DC) Department of Consumer and Regulatory Affairs (DCRA) Interim Director Lisa Marie Morgan today announced that three cases of noncompliance with the District's condominium limited warranty statute were referred to the District's Office of the Attorney General (OAG) for civil enforcement. 

Lawsuits have been filed by the District’s Office of the Attorney General in the Superior Court of the District of Columbia against Adekunle Awojobi; 1310 Belmont, LLC; and 3039 16th Street Development, LLC. Each was charged with failing to post warranty security with DCRA. Section 42-1903.16 of the District of Columbia Official Code (2001) requires that the warranty security be 10 percent of estimated condominium construction or conversion costs.

"This issue hits many District residents where they live," said Morgan. "With the pace of new condominium construction and condominium conversions in the District, ensuring that warranty bonds are posted is crucial; condominium owners need to be able to access these funds to make repairs in cases involving structural defects."

Under District law, condominium developers or building owners are required to warrant (or guarantee) their construction work. They secure this obligation by posting the warranty security. Several forms of security may be posted under the statute, including a letter of credit, bond or another form as approved by DCRA. 

If a condominium owner or association discovers a structural defect and the developer does not fix the problem; the condominium owner or association may request access to the warranty security.

The warranty period runs for two years after the completion of the common elements and for two years from the date of sale for each condominium unit.

The following information is about the defendants in the three lawsuits:

1310 Belmont LLC*
Managing member: Coy Burney
Condominium project: 1310 Belmont Condominium, 1310 Belmont Street, NW

3039 16th Street Development LLC*
Managing member: Gary C. Lofaso
Condominium project: Zydeco Lofts Condominium, 3039 16th Street, NW

Mr. Adekunle Awojobi*
Condominium project: Ipara Condominium, 320 T Street, NW

Reach DCRA at 941 North Capitol Street, NE, by phone at (202) 442-4400, or via email.