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Pine Forest POA, government battle back in court in May (TX)

A legal wrangling over Pine Forest property along Texas 71 will come to bear in a courtroom again early next month, when a judge might decide how the property owner’s association — which serves two large neighborhoods, one developed and

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Condominium Deconversions: Examination of a Section 15 Sale (IL)

Until recently, the word “conversion” was generally thought to mean the process through which an apartment building was converted into a condominium association. However, in the wake of the 2007 market crash and real estate downturn, few condominium conversions have

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HOA Manager Balancing Act, Part II

The article HOA Manager Balancing Act seemed to suggest that if a management company was involved in a homeowner association’s management both before and after transition that there was an inevitable conflict of interest. It also begged the question “Can

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2 condo boards sell buildings for deconversion to rentals (IL)

The condo boards of two North Side buildings sold their properties for deconversion to apartments, with the combined 34 units going for nearly $12.2 million.  JAB Real Estate paid $4.87 million on July 13 for a 15-unit corner building at

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Managing New Startup Condominiums And Communities For Developers

Managing startup condominiums and communities is a unique job. There should be a community manager with experience working as part of a team, and that team should include other professionals in addition to the developer.      Read the article………….

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The HOA Manager Balancing Act

Homeowner association (HOA) management companies retained by developers often must balance the competing interests of the developer and the homeowners. They just as often find the developer pulls one way while the homeowners pulls the other way with the manager

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According to One Bankruptcy Court, the “Wrangle Over Executoriness May be a Tale ‘Full of Sound and Fury, Signifying Nothing’”

After a dispute arose between a developer of a subdivision northeast of Albuquerque and a homeowners’ association (“HOA”) over the ownership of certain common areas in the subdivision, the HOA brought an action against the developer seeking to compel it

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Revisiting Condominium Design and Construction Risks: Applying Lessons Learned to a Rekindled Market

Condominium work for developers, contractors and architects is reappearing after being scarce for several years, as leasing becomes less attractive to a maturing class of residential market participants. Condo projects can be attractive work, but are also high-risk. To a

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Pocket neighborhood a new housing concept in wide-open west

In June 2015, he began work on Crow Peak Places, which when finished will add 13 new homes near downtown Spearfish. But what makes the project unique is the creation of a “pocket neighborhood,” which encourages a more neighborly lifestyle.

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Master-Planned Communities Look to Innovative Future

Developers of master-planned communities (MPCs) must innovate to remain relevant, said Kathleen B. Cecilian, a ULI governor and chief executive officer (CEO) of Flemington, New Jersey–based marketing firm Cecilian Worldwide, speaking at the 2016 ULI Spring Meeting. “There are innovators

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Preparing for Turnover – What a Developer Should be Mindful Of (FL)

With all of the new construction of condominiums and single family homes, developers should be mindful that the end of the project cycle and turnover of the homeowners or condominium association is just as important as the beginning of the

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The State of the Business Judgment Rule Appellate Court Rulings (NY)

The greatest changes in cooperative and condominium law this past year did not come from the legislature or from the courts but from the New York Attorney General’s office (NYAG). This article will review some of those changes and the

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Condominium Developers Beware! New Illinois Supreme Court Decision Confirms Chicago Municipal Code Creates a Broad Private Cause of Action for Misrepresentation

On Nov. 4, 2015, the Illinois Supreme Court issued its ruling in Henderson Square Condominium Association v. LAB Townhomes, LLC. Henderson Square Condominium Association v. LAB Townhomes, LLC, 2015 IL 118139. The decision holds that condominium unit owners have a

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CREC Closes Unusual Sunrise Bulk Condo Deal (FL)

“Unlike many bulk condo sales, the 141 units did not represent a controlling interest—38 percent—in the 367-unit condominium complex,” Mekras said. “This transaction and other recent noncore apartment sales speak to private capital’s strong appetite for cash flow generated from

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Developing a Successful HOA

Lifestyles of the twenty-first century have radically changed from fifty years ago. The clamor for big lots and single-family houses has been replaced by a demand for condominiums and planned communities (generically called “homeowner associations” or HOAs).    Read the

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When is it time for developer to cede control of condo board to homeowners?

I recently saw your article regarding condominium reserve fund requirements and was wondering if you could possibly advise our complex resident/owners on what to do when you have completely inadequate homeowners association (HOA) reserves.    Read the Q&A…………….

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Acquiring Failed Subdivisions: The Risk of Tyrannical HOAs

Developers and builders who wish to acquire a failed developer’s residential subdivision, when there are existing homeowners in the subdivision, should BEWARE that a statutory turnover of HOA control may have occurred!   Read the article……….

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The non-greedy developer of S. California – Fruit from grapefruit groves in Temecula pays homeowners’ fees

Some may say Fleming is a patient man; others may see him as an entrepreneur with good business sense. Either way, he has harvested the fruit of his investment in the form of a working organic orchard with more than

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“The Donald” Trumps condo buyers by avoiding trade-mark licensor liability

United States presidential candidate Donald Trump avoided liability for alleged misrepresentations of the attributes of purchased hotel condominium units by a developer that is licensed by one of Mr. Trump’s corporate affiliates to use Mr. Trump’s name and trade-marks for

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How mandatory accounting methods impact South Florida condo developers

The South Florida condo market has experienced a boom in recent years, due in large part by the influx of foreign investors, many of whom are paying cash for their condos. While cash up front is ideal and developers can

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Hoboken (NY) Condo Developers May Be Liable For Faulty Construction

The developers of a 53-unit condominium building on Clinton Street in Hoboken may still be on the hook for allegedly faulty construction to the exterior of the building.    Read the article……….

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The “Continuous Trigger” Theory and Construction Defect Actions: Cypress Point Condominium Association v. Selective Way Insurance Co.

A New Jersey trial court granted summary judgment in favor of Selective Insurance Company holding that the “continuous trigger” theory does not provide insurance coverage subsequent to the manifestation of damages that arose from a subcontractor’s negligence in the construction

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NJ Appellate Court Rules That Consequential Damages Caused By Subcontractors’ Poor Workmanship May Be Covered By Developers’ Liability Insurance

In a recent case, Cypress Point Condominium Association, Inc. v. Adria Towers, LLC, a New Jersey appellate court has provided potential additional sources of recovery for community associations involved in construction defect litigation against developers, as well as potential greater

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Spat pits developer against Jersey City condo owners (NJ)

Eight years later, some Gull’s Cove residents are less than thrilled. The second building has yet to be constructed. Meanwhile, Geibel remains in control of the homeowner’s board, with residents saying they’re given no voice to make changes they say

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Tax confusion creates ‘serious financial headache’ for South Florida condo developers

Call it the law of unintended consequences.  South Florida condo developers thought they had struck gold when they realized they could finance their luxury towers with hefty, all-cash deposits from buyers. No more worries about an economic downturn scattering investors

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Grayhawk (MO) Residents Question Owners About Proposed Transaction

Our Lady Help of Christians Church in Weingarten was standing-room only last week as Grayhawk property owners learned about the future of their property.    Read the article………..

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South Columbia (MO) subdivision to feature edible landscaping

Adam Saunders spent much of Wednesday crawling on his hands and knees and pulling weeds from around the bushes and trees he and others have planted at The Gates, a residential subdivision being developed near Old Plank Road in south

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San Francisco (CA) leaders to vote on luxury condo moratorium

San Francisco supervisors are expected to vote on a plan that would suspend the development of luxury condos in a neighborhood that’s come to symbolize urban displacement.  The 45-day moratorium would affect two dozen projects in the city’s Mission District,

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Unique Amenities: What’s New in Today’s Market?

The latest boom of luxury real estate development in New York City seems to have sent seismic waves across the Northeast. In the past five years, luxury buildings in Boston and other East Coast cities have installed almost any amenity

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Up on the Roof: Roof Decks and Gardens Provide Urban Retreats

When space is a commodity, where can condominium associations put their gardens, their social spaces, even their hot tubs?  “On the roof,” says Jack Carr, licensed engineer and senior vice president of Criterium Engineers in Portland, Maine.    Read the

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Buying a Distressed Residential Subdivision: Are You Getting In Over Your Head?

There are many ways to acquire a distressed residential subdivision for what may seem to be a bargain price. Whether an investor is buying the property at a foreclosure sale or purchasing a defaulted mortgage loan on the property, issues

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Unique Amenities – What’s New in Today’s Market?

These days, buying a new condominium might mean access not only to your dream home but also to the kind of high-end amenities that can transform a beautiful home into a spectacular one. At least that is the goal of

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Developer drops lawsuit against homeowners association

Developer Dan Boss has dropped his lawsuit against the Woodland Lake Shore Homeowners Association.  Boss previously sought Brighton Township’s approval for a planned-unit development of single-family homes on a piece of property he owns on Woodland Lake. It is the

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Declarant Rights: Are Developers Leaving Money on the Table?

When a residential subdivision is developed, it is common for the developer to record a Declaration of Covenants, Conditions, Easements and Restrictions along with the subdivision plat. This Declaration addresses use restrictions that will govern the residents, as well as

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Condo Prepares For Future By Installing Drone Landing Pad (CA)

A lot of Los Angeles apartments suffer from the same woes: there’s no place for your friends to park, and there’s no place for drones to land. Luckily, one condo downtown will offer a drone landing pad.   Read more………

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Harnessing a growing risk

Emerging technologies, changing standards and a shortage of skilled labor can present increased potential for construction defect exposure.The costs and challenges associated with construction defects can change and increase rapidly. With new materials and techniques entering the market, codes and

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Spotlight on Co-op-to-Condo Conversions: Is It Worth It?

New condos are popping up all over the city. It’s understandable when you consider all the perks of owning a condo. Condos tend to command higher prices on the market, but there is also the question of freedom. When you

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Illinois Supreme Court Agrees to Decide Breadth of Condo Developer’s Tort Duties

In the closing days of its November term, the Illinois Supreme Court agreed to review a decision from Division 5 of the First District with potentially significant implications for developers: Henderson Square Condominium Association v. LAB Townhomes. Henderson Square poses

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Condo Hotels Are Back in Vogue As ‘Securities’

Developers particularly like the ‘new model’ where condo hotel investments are offered as a “securities” using the new SEC Rule 506(c) for private placements with public solicitation. Unfortunately, in their enthusiasm for this new model– which is well deserved –

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The Unfinished Suburbs of America

Janeen Milhorn and her husband bought their four-bedroom ranch-style house on a quiet street in this California suburb in 2004. It was on one of the farthest lots in the development, which Milhorn liked because it meant she had more

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3 ways to protect your portfolio from HOA super liens

Lenders trying to foreclose on properties that have HOA assessment liens face a number of pitfalls, and a recent decision by the Nevada supreme court looks to make it worse, not better, for lenders, servicers and investors.    Read more……..

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Tax Cases (And Rulings) Of 2014: A Big Break For Home Builders

This was more than just marketing chatter, however, as Shea invested significant funds – upwards of 30% of total budgeted costs, in some developments — in the amenities – such as pools, golf courses, and clubhouses –for each neighborhood. In

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The Role of the Developer in a Homeowners Association

How is a homeowners association born? Where do the board members come from if there aren’t any homeowners yet? These questions are often overlooked, but it’s important to know the answers. The Association was started by someone and understanding the

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President Obama signs ILSA amendment into law

President Barack Obama has signed an amendment to the Interstate Land Sales Full Disclosure Act of 1968 into law. The amendment exempts condominium units from filing and registration requirements mandated by ILSA, which was intended to protect consumers from fraud

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Texas law lets developers ban solar panels while subdivisions are growing

But when Schirmer submitted an application to his homeowner association, his request was denied — despite a Texas law that bans HOAs from restricting the use of solar power.   That’s because homes in his subdivision, the Trails of Glenwood, are

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HOA restricts homeowners from renting homes (CO) – New subdivision will limit rentals to 15% of homes

At Peoria Place, a 120-home development under construction in Englewood, Richmond American Homes is offering new features for homeowners, including a new clause in the HOA covenant that could be a new home trend.        Read more……..

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A Primer: Economic Loss Doctrine Not Necessarily Bar to Tort Recovery (MA)

Although the “economic loss doctrine” has historically barred recovery of certain classes of tort damages, the Massachusetts Supreme Judicial Court recently affirmed an Appeals Court decision holding that the doctrine did not bar a condominium association’s negligent construction claim against

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Architects Beware: It is Now Settled That the Principal Architect Owes a Duty of Care to Third Party Purchasers for Negligent Design (CA)

In Beacon Residential Community Association v. Skidmore, Owings & Merrill LLP, the California Supreme Court held that architects and engineers can be held liable to condominium owners for negligently prepared plans, specifications or design modifications. In doing so, the Court

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Provisions in CC&R’s Requiring Arbitration of Claims Against Developers by Homeowners Associations or Owners Are Not Enforceable (CA)

In Villa Vicenza Homeowners Ass’n v. Nobel Court Dev., LLC, No. D054550 (4th Dist. Jan. 11, 2011, the Fourth District of the California Court of Appeal held that a provision in a declaration of covenants, conditions and restrictions (CC&R’s) that

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The Transition Switching from Sponsor to Owner Control

The goal of any property developer is to sell units, but until that objective is reached they have to assume all the day-to-day responsibilities to ensure smooth operations and continued sales. This requires wearing many hats—manager, board member and ombudsmen.

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