I don't think "novedad" means news, but I do think it's meaningful and means an incident of some kind that involves damage arising, a "damaging novelty": that is, the appearance of damage that was not there up to that point. In other words, I think this phrase simply refers to damage arising, something taking place that produces damage, not necessarily as the result of an action (human agency) but from any cause. Not exactly a development concerning damage (which could in theory refer to damange being repaired). So I would turn it round and express it like this.

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Note added at 3 hrs (2016-01-12 07:32:15 GMT)
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Spanish jurisprudence on this matter is based on Article 1559 of the Civil Code: "El arrendatario debe poner en conocimiento del propietario cualquier usurpación o novedad dañosa proveniente de un tercero".
http://www.infoderechocivil.es/2013/06/informacion-arrendado...

It appears that "novedad dañosa" refers to physical damage:
"[...] tanto para los casos de novedad dañosa, es decir, acontecimiento que causa un daño material en la cosa": referring to leases.
Teoría y práctica del ejercicio de las acciones civiles, 923
https://books.google.es/books?id=cS1Fs_ysKH4C&pg=PA923&lpg=P...

Here, I presume, we're dealing with a Venezuelan lease. Again, the following judgment from the TSJ implies that it refers to physical damage to the fabric of the property:

"el ARRENDATARIO, no ha sido diligente en avisar al ARRENDADOR el indicio de cualquier novedad dañosa que pudiera repercutir en la estabilidad y seguridad del inmueble, reflejándose la poca diligencia en acometer la pronta realización de especificas labores de mantenimiento en aras de evitar daños mayores"
http://caracas.tsj.gob.ve/DECISIONES/2010/ABRIL/2120-21-AP11...

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Note added at 5 hrs (2016-01-12 09:28:56 GMT)
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Another possible reason for avoiding "development" is that it could be ambiguous in this context; in relation to property, "development" can mean some sort of building work.