Before a California HOA can file a construction defect lawsuit against a builder, developer, or general contractor, the board must complete the Calderon pre-litigation process under Civil Code §6000. This mandatory procedure requires formal notice, builder inspection, negotiation, and potential mediation before litigation may proceed. This article explains each step, the board’s fiduciary duties during the process, tolling of statutes, member notification requirements, and common pitfalls that can derail an HOA’s construction defect claim.

What Is the Calderon Process?

The Calderon process is a mandatory pre-litigation procedure codified at Civil Code §6000 (formerly Civil Code §1375, originally enacted as the Calderon Act in 1995). It requires every HOA to follow specific procedural steps before filing a construction defect complaint against a builder, developer, or general contractor of a common-interest development. The statute applies to all HOA construction defect claims regardless of the size of the development.

The purpose of the Calderon process is twofold: first, to create a structured framework for resolving construction defect disputes without litigation; and second, to protect the builder’s right to inspect, evaluate, and potentially repair defects before facing a lawsuit. For HOA boards, the Calderon process also serves as a critical clock-management tool — initiating the process tolls the statute of repose and statutes of limitation, preserving the association’s legal rights while the pre-litigation procedure unfolds.

How Does the Calderon Process Relate to SB 800 (Right to Repair)?

The Calderon process and the SB 800 Right to Repair Act are separate but complementary procedures. The Calderon process (Civil Code §6000) governs HOA-level pre-litigation requirements specific to common-interest developments. SB 800 (Civil Code §§895–945.5) establishes construction standards, substantive remedies, and its own pre-litigation inspection-and-repair procedure applicable to all residential construction sold after January 1, 2003.

For HOA claims on post-2003 developments, both procedures apply. The Calderon process addresses the association-level procedural requirements (notice to the builder, board vote, member notification), while SB 800 provides the substantive standards against which defects are measured and its own builder-inspection procedures. Most construction defect attorneys coordinate both processes concurrently to satisfy all statutory requirements efficiently.

What Are the Step-by-Step Requirements of the Calderon Process?

Step 1: The HOA Serves a Notice of Commencement of Legal Proceedings

The process begins when the HOA board serves a formal written notice on the builder’s registered agent (or, if no registered agent, on the builder directly). Under Civil Code §6000, this notice must include:

• The name and location of the project.
• An initial list of defects sufficient to apprise the builder of the general nature of the defects at issue.
• A description of the results of the defects, if known (such as water damage, structural cracking, or mold).
• A summary of results from any homeowner survey or questionnaire distributed to determine the nature and extent of defects.
• A summary of any testing conducted on the common areas (such as moisture testing, destructive testing, or structural analysis).

The notice need not be exhaustive — it must be sufficient to give the builder a reasonable understanding of the scope and nature of the claims. Additional defects discovered during the process can be added through supplemental notices.

Step 2: The Builder Responds and Inspects

After receiving the notice, the builder has 25 days to serve a written response on the HOA and request a meeting to discuss the claims. The builder then has 60 days to:

• Inspect the property and common areas identified in the notice.
• Receive and review relevant construction documents, HOA reports, testing results, and survey data.
• Engage implicated subcontractors, design professionals, and consultants to evaluate the claims.

The 60-day inspection period may be extended by mutual written agreement. During this time, the association must provide reasonable access to the common areas for inspection.

Step 3: The Builder May Offer to Repair or Settle

Following the inspection, the builder may offer to repair some or all of the claimed defects, propose a monetary settlement, or a combination of both. If the builder offers to repair only some defects, it must set forth in writing the specific reasons for declining to address the remaining claims (Civil Code §6000).

Step 4: Mediation and Negotiation

If the builder’s initial offer does not resolve the dispute, the parties typically enter a mediation or negotiation phase. While the Calderon statute does not mandate mediation in all cases, most construction defect disputes include mediation as a standard step — and many CC&Rs or builder warranties require it. Mediation is often the most productive phase of the process, with a neutral mediator helping the parties bridge the gap between competing repair estimates and damage assessments.

Step 5: Board Vote to Accept or Reject the Offer

The HOA board must vote on whether to accept the builder’s offer. This decision is subject to the board’s fiduciary duties — directors must evaluate the offer in the context of the association’s best interests, considering the cost of repairs, the strength of the legal claims, the risks of litigation, and the impact on homeowners. Before voting, the board should consult with its construction defect attorney and review forensic expert assessments. For a deeper discussion of board obligations, see our complete HOA construction defect guide.

Step 6: Litigation If Unresolved

If the Calderon process does not produce an acceptable resolution, the HOA may proceed to file a construction defect complaint in court. The association’s complaint must demonstrate compliance with the Calderon pre-litigation requirements — failure to complete the process before filing can result in dismissal or a stay of the action.

What Are the Board’s Fiduciary Duties During the Calderon Process?

Throughout the Calderon process, directors must exercise the standard of care applicable to HOA fiduciaries:

• Due diligence in investigation — The board must ensure that defects are documented thoroughly by qualified forensic inspectors, not merely reported anecdotally by homeowners.
• Informed decision-making — Directors should review expert reports, attorney recommendations, and financial projections before voting on any settlement offer.
• Conflict-of-interest management — Directors who have personal relationships with the builder or financial interests in the outcome must recuse themselves from defect-related decisions.
• Transparency with members — The board must keep homeowners informed about the status of the claim, consistent with litigation privilege protections for attorney-client communications.

What Are the Member Notification Requirements?

The Davis-Stirling Act requires the board to disclose specific information to association members throughout the construction defect claim process. Under Civil Code §6100, these disclosures include:

• A general description of defects the association reasonably believes will be corrected or replaced.
• A good-faith estimate of when the defects will be addressed (with a caveat that the estimate may be modified).
• The status of claims for defects not included in the initial list.

These disclosures must be provided to all members — not just those directly affected by specific defects. Failure to provide required disclosures can expose the board to claims of breach of fiduciary duty.

How Does the Calderon Process Toll the Statute of Repose?

One of the most important features of the Calderon process is its tolling effect on the statute of repose and statutes of limitation. Once the HOA serves the Notice of Commencement of Legal Proceedings, the 10-year statute of repose and all applicable limitation periods are paused for the duration of the Calderon process. This tolling continues until the pre-litigation procedures are completed or the parties reach an impasse.

This tolling mechanism is the primary reason construction defect attorneys recommend initiating the Calderon process as early as practicable — and especially before the 10-year deadline approaches. By serving the notice, the board effectively hits the pause button on the clock, creating breathing room to conduct a thorough investigation and engage in meaningful negotiation.

What Is the Typical Timeline for the Calderon Process?

The timeline can be shorter if the parties cooperate efficiently or longer if the defects are extensive, multiple builders are involved, or negotiations stall. Extensions by mutual agreement are common.

When Is the Calderon Process Required vs. Optional?

The Calderon process is mandatory for all HOA construction defect claims against builders, developers, and general contractors of common-interest developments. There is no minimum unit count or damage threshold — the process applies whether the development has 10 units or 1,000.

The Calderon process is not required for claims against subcontractors, material suppliers, or design professionals (architects, engineers) who are not the builder, developer, or general contractor of the development. However, these parties may be joined in litigation after the Calderon process with the primary builder is completed.

What Are Common Pitfalls for HOA Boards in the Calderon Process?

• Waiting too long to initiate — Boards that delay the Calderon process until year 9 or 10 of the repose period risk running out of time for meaningful negotiation.
• Inadequate initial investigation — Serving a Calderon notice based on anecdotal homeowner complaints rather than forensic evidence weakens the association’s negotiating position.
• Accepting the builder’s first offer without expert evaluation — Builders’ initial repair offers often significantly underestimate the scope and cost of necessary repairs.
• Failing to notify members — Omitting required Davis-Stirling disclosures creates additional legal exposure for the board.
• Poor record-keeping — Failure to document every step of the Calderon process, including all notices, responses, inspection results, and communications, can create procedural challenges if the case proceeds to litigation.

Protect Your HOA — Schedule a Consultation

Construction defect claims involve complex statutes, strict deadlines, and significant financial exposure. Bay Legal’s construction law team helps HOA boards navigate every stage — from initial investigation through resolution. Call (650) 668-8000 or visit baylegal.com/practice-areas/construction-law to schedule a consultation.

Frequently Asked Questions

Q: Is the Calderon process required before every HOA construction defect lawsuit?

A: Yes. Civil Code §6000 requires every HOA to complete the Calderon pre-litigation process before filing a construction defect complaint against a builder, developer, or general contractor. Filing without completing the process can result in dismissal or a court-ordered stay.

Q: How long does the Calderon process take?

A: The full Calderon process typically takes 6 to 18 months, depending on the complexity of the defects, the number of parties involved, and whether mediation is successful. The builder has 25 days to respond to the initial notice and 60 days for inspection, with additional time for negotiation and mediation.

Q: Does the Calderon process pause the 10-year statute of repose?

A: Yes. Serving the Notice of Commencement of Legal Proceedings tolls the statute of repose and all applicable statutes of limitation for the duration of the Calderon process. This tolling continues until the pre-litigation procedures are completed.

Q: Can the HOA add newly discovered defects during the Calderon process?

A: Yes. If additional defects are discovered during the builder’s inspection or the association’s ongoing investigation, the HOA can serve supplemental notices adding these defects to the claim. The process does not limit the association to the defects identified in the original notice.

Q: What happens if the builder does not respond to the Calderon notice?

A: If the builder fails to respond within the statutory time frame, the HOA is released from the pre-litigation requirements and may proceed directly to filing a complaint. However, boards should document the builder’s non-response thoroughly before proceeding to litigation.

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Results depend on the specific facts of each situation. No attorney-client relationship is created by reading this article. Contact Bay Legal, PC for advice on your specific situation.