Are you a landowner who is thinking about subdividing your land into residential lots? In this second of three articles on the topic, you can learn about subdividing land from the real world experiences of a real estate lawyer and developer. Read the entire article……………………………….
Why aren’t we seeing more new condos being built in Salt Lake City? It’s complicated (UT)
When CW Urban announced it would build a new residential building across from Pioneer Park, one thing in particular stood out. It wasn’t necessarily its design, its unit count, its height or anything about the appearance that made it particularly noteworthy in a sea of similar competing buildings nearby. Read the entire article……………………………….
Homeowner associations not regulated in North Carolina
Realtors say when amenities are just promises, it can create confusion. That’s what homeowners tell FOX8 has continued to happen at Caleb’s Creek in Kernersville. The website shows a Village Center with shops, a pool, a lake for fishing and water sports, but homeowners are still waiting. Read the entire article……………………………….
Hideout’s first master developer sues the town and its planner for $100M (UT)
The original master developer of Hideout is suing the town and its planner over development rights, accusing them of causing the developer economic damages of at least $100 million by reducing the value of its holdings and acting to prevent it from developing hundreds of homes. Read the entire article……………………………….
Colorado Court of Appeals Places Significant Implied Warranty Liability on Residential Developers and Builders
The Denver housing market has been hot for years. An influx of residents, low housing inventory, and rising home prices make Denver a good choice for residential builders and developers. However, this past November, the Colorado Court of Appeals issued an opinion underscoring the liability that developers and builders face when building “common interest communities” […]
Kernersville development homeowners surprised by HOA fees (NC)
When buying their two houses in Caleb’s Creek, a planned development in Kernersville, Josh Blackburn and John Howie said they knew they’d be waiting for some amenities. They just didn’t know they’d be waiting this long. Read the entire article……………………………….
The developer’s role in creating CC&Rs
Homeowners who move into a planned, covenanted community, generally understand that they will be required to abide by some specific rules, including the Declaration of Covenants, Conditions, and Restrictions. Commonly referred to as CC&Rs, these rules largely influence how the community operates. Read the entire article……………………………….
County Faces Lawsuits Over Developments (MT)
One suit is in regards to Baker 80, a proposed 16-lot, 80-acre subdivision that was approved by the county commission in February. The future development was the source of several contentious meetings as residents of the neighboring Whitefish Hills Village Subdivision argued against Baker 80 being allowed to utilize privately maintained subdivision roads. The county’s […]
What is a Developer Controlled Community?
The term ‘developer-controlled community’ can be confusing for homeowners, potential buyers, and even HOA board members. The confusion lies in control rights as bare pieces of land are being transformed into communities with more homes or units. At the beginning of land developments, the developer owns every unsold unit and has exclusive control of the […]
People Are Turning Shipping Containers Into Tiny Homes. Here Are the Pros and Cons
To most people, a 2018 Ram ProMaster is just a vehicle. For Chelsey Hathman, it’s home. Chelsey Hathman, 29, renovated her van to live in full-time. Squeezed out of her Texas condo by the hidden costs of homeownership, such as maintenance and homeowners association fees, Hathman, 29, sold the place and moved into her 60-square-foot […]
Ohio wins judgment against Norwood condo developer who left town with deposits (OH)
Ohio’s Attorney General has won a $93,750 judgment against a Norwood condo developer who left town without refunding deposits for his unfinished project. Read the article……………………………………….
Planned Community (Non-Condo) Operational Deficits: Plugging the Gap (TX)
From the date of creation until death, a community association requires funds to operate. Operational funds for the association are obtained through assessments levied by the community association, but only as homes are built and conveyed to homeowners. As a result, in the early to mid-stages of a planned community life cycle, there will be […]
Timing of Common Area Conveyances (TX)
Taxes! In Texas, common area will be valued at a de minimus value, but usually only if the common area is owned by the association. So long as the land area that will be common area is owned by the developer, the tax assessor will use customary valuation assumptions for determining the ad valorem taxes […]
Vancouver condo developer sentenced to six years in U.S. prison for real estate fraud (BC)
Vancouver condo developer Mark John Chandler is “a financial predator,” a U.S. Federal Court judge said Monday while handing down a six-year sentence for a real estate investment fraud. Chandler swindled 12 U.S. investors out of $1.7 million more than a decade ago, taking their money for a purported Los Angeles condo project that never […]
Property Insurance for Attached Residential Communities (TX)
In traditional single family residential communities, each homeowner is responsible for selecting an insurance agent and obtaining their own property insurance. In the event that a homeowner’s residence suffers a casualty, the homeowner will look to its property insurance provider for reconstruction proceeds and other residences within the community are unlikely to be impacted. However, […]
Who is the Declarant? And Why Does it Matter? (NC)
When the developer declares land to restrictions described in a “Declaration” for a planned community or a condominium, that developer has the opportunity to reserve certain rights to itself as the “Declarant.” Although there is no requirement that the developer reserve such declarant rights, it is common practice to do so and very unusual for […]
Developer seeks to stop flooding at Drake’s Landing (MA)
Developer Chip Hall believes he has a solution to resolve flooding near the entrance to his Drake’s Landing subdivision off Main Street. The fix would require pulling up the first 50 feet of pavement on his new road, Daley Drive, and doing some light subgrading underneath — something Hall said he is willing to do […]
La Jolla Shores Association pushes forward in legal case against UCSD development plan (CA)
The La Jolla Shores Association has authorized its executive committee to make further decisions regarding a recently filed lawsuit against UC San Diego and the University of California challenging UCSD’s planned Theatre District Living and Learning Neighborhood. The lawsuit was filed last month in San Diego County Superior Court by Escondido firm DeLano and DeLano […]
Condominium Projects Guide from AIA
This guide serves two purposes: (1) it provides guidance regarding issues unique to Condominium construction, and (2) it provides model language that may be used to amend or supplement AIA Document B109™–2020, Standard Form of Agreement between Owner and Architect for a Multi-Family Residential or Mixed Use Residential Project, to tailor it for use on […]
Elk Creek Ranch Owner’s Association wins case (CO)
Elk Creek Ranch Owner’s Association prevailed in its lawsuit against developer William H. Wheeler for breaching his fiduciary duties while he was a director on its board. Elk Creek Ranch is a premier fly-fishing and hunting club outside Meeker, Colorado. An eight-person Rio Blanco county jury also found that Wheeler’s company Elk Creek Operations, LLC […]
Court puts condo investors on the hook for shoddy construction (NY)
New York City condo investors may increasingly find themselves having to dig into their wallets to pay for any construction defects, according to a new court ruling. The Appellate Division of state court upheld a ruling last week that a condominium board does not have to prove a fiduciary or confidential relationship between itself and […]
Freedom of speech at issue in today’s Clipper Mill court hearing (MD)
Do Marylanders have a right to free speech? Not if they live in a community controlled by Larry E. Jennings and publicly criticize his plans, the developer argues in a $25 million lawsuit against residents of Clipper Mill. Now those residents are fighting back in Baltimore Circuit Court, asking for Jennings’ lawsuit to be dismissed […]
Developer Liability for Building Code Violations Under Section 553.84, Florida Statutes (FL)
Among the numerous causes of action available to construction defect plaintiffs in the State of Florida, there is Florida Statute Section 553.84, which creates a statutory cause of action for owners based on violations of the Florida Building Code against parties who “committed” the violation. Read the article……………………………..
Both sides in Carmen Court landmark fight detail failed attempts at compromise (CO)
The two sides battling over the future of Carmen Court on Tuesday detailed their failed efforts to find a compromise during their first appearance before the Denver City Council. Chris Crawford, managing director of Hines — the Houston-based developer under contract to buy the condo complex at 900 E. 1st Ave. — said the company […]
Three Hundred Collins allegedly marred by cheap materials, unpaid contractors and duped investors: lawsuit (FL)
Three Hundred Collins in Miami Beach’s South-of-Fifth neighborhood is besieged with poor quality interiors, debts to contractors and an unresponsive developer, among other problems, according to a recently filed lawsuit. Read the article…………………………..
North Star Subdivision developer’s request to charge residents more than $200 (WA) a month for water, sewer services denied
A request from the developers of a subdivision near Helena to charge residents more than $200 each month for water and sewer services has been denied by the Montana Public Service Commission. According to a release from the Public Service Commission, the subdivision’s developers of the North Star Subdivision established North Star Water & Sewer, […]
Developers: No plans to drop ‘plantation’ in Florida community names
When Charlene Smith and her husband Matthew began searching for a place to live in Florida, they considered several communities before deciding on ICI Homes’ Plantation Bay. The couple moved from New York City into their new home here three weeks ago. While both are Black, the community’s name didn’t bother them at the time. Read […]
How Can the Community Association Collect From Insurance Policies Insuring the Sponsor, General Contractor, Subcontractors, and Design Professionals?
Liability insurance policies insuring sponsors, general contractors, subcontractors, and design professionals are confusing and loaded with complex terminology that make them difficult to understand. Yet, it is these policies that hold the key to the ability of a community association to recover damages from design and construction deficiencies. Rather than making your eyes glaze over […]
Clipper Mill developer Larry Jennings files $25 million lawsuit against residents who testified against his projects
Developer Larry Jennings has filed a $25 million lawsuit against residents in the Clipper Mill community for challenging his redevelopment plans, saying the residents have cost him “millions of dollars” by raising questions that have prevented him from moving ahead with construction. In a 37-page complaint filed in Baltimore Circuit Court, attorneys hired by Jennings […]
Skanska and Seattle Condo Developer Seek To Resolve Costly Tangle Of Disputes (WA)
Skanska and a condominium developer in Seattle are trying to settle a multifaceted dispute over costs and payments that has simmered for a year and boiled over into a lien filed Jan. 31 by the contractor for $34 million, or about 20% of the contract value. The developer contested most of the lien in state […]
Homeowner says builder has not provided guard-gated community as promised (NV)
Q: Our HOA board is still controlled by the builder with two declarants and one resident member who is the HOA president. We live in what is being sold as a guard-gated community. It has been over three years, and there is still no gate guard. However, we’ve been told we will be getting a […]
Neighborhood Associations vs. City Planners
Communities often band together to push for what is best for their residents. They form organizations like HOAs and neighborhood associations, which give them a chance to meet with their neighbors, exchange ideas, start projects, and propose solutions to problems facing their communities. Read the article………………………….
Southern Nevada homebuilders challenged to use water efficiently
The availability of sufficient water resources to meet the needs of an expanding population will continue to be a challenge for the Southern Nevada Home Builders Association and its community partners over the next decade. Read the article……………………………..
Are St. Pete’s permitting policies causing a spate of defective condos? (FL)
With another 40-something unit condo on the way in downtown St. Petersburg, there are storm clouds gathering for the industry in St Petersburg. According to informed sources, it was the cloud of an oncoming potential hurricane last summer that first tipped off the potential impact of the city’s system of permitting and inspecting these ever […]
Man Dies In Gym, GL Homes Allegedly Did Not Supply Cardiac Equipment. Advertised “Experience The Lifestyle.” (FL)
The family of a man who died in the new community of Dakota on Lyons Road in Delray Beach is suing GL Homes for wrongful death and several other claims. According to the suit, which you can read in its entirety below, Jarret Berman was working out in the Dakota clubhouse on June 12th when […]
Orange Beach condo owner files federal lawsuit against city (AL)
The city of Orange Beach is facing a federal lawsuit by one of its own condominium owners. The 18-page lawsuit was filed on Friday in federal court by Larry Wireman, developer of the high rise Turquoise Place condo complex on Perdido Beach Blvd. Read the article……………………………..
Michigan Court of Appeals rules that Developer lost right to construct units on common element land
In Cove Creek Condo Ass’n v Vistal Land & Home Dev, LLC, __ Mich App __; __ NW2d __(2019), issued December 19, 2019 (Docket No. 342372), the Michigan Court of Appeals issued a published opinion establishing binding legal precedent and much needed guidance on the interpretation and application of MCL 559.167. In Cove Creek, supra, […]
Can Your Community’s Developer Use HOA Capital Contributions Collected at Closings to Offset the Developer’s Deficit Funding Obligation? (FL)
Many communities impose a capital contribution (sometimes called an initiation fee) on new owners. This is a one-time, nonrefundable fee paid by the buyer at closing. These fees usually go into a special account used to fund capital improvements and repairs in the community. Both Fla. Stat. §720.308(6) and §720.308(4)(b), prohibit a developer from using […]
Howell demands Wall, developer take responsibility for flooding: Lawsuit (NJ)
Besides Wall, the lawsuit names as defendants Howell Properties LLC and Pine View Estates LLC jointly as a developer, as well as their managing member, the development’s homeowners association and Crest Engineering Associates Inc., which Howell claimed designed the basin. Read the article………………………..
Two Pairs of Eyes Are Better Than One: Why Community Associations and Developers Should Have Separate Legal Counsel (NC)
North Carolina has the third most planned communities in the United States after California and Florida. All of these planned communities typically evolve in a similar three-step process. First, a real estate developer (“Developer”) purchases the land and records a set of governing documents that establish a regime of rules and regulations for the community. […]
Diamondhead residents sue Colorado developer (AR)
A class-action lawsuit filed by a group of Diamondhead property owners and residents claimed a Colorado developer is hurting property values in the gated subdivision and damaging the environment. The complaint filed last week in Garland County Circuit Court said Omni Home Builders at Diamondhead Resort Community LLC’s clearing of lots it acquired last year […]
Families claim new homes funded by the city to ‘promote quality living’ are falling apart (FL)
Many families who live at the Payne Avenue Walk are calling the new housing community a “scam.” They say the work is still not complete years later. Read the article……………………….
Golf Course Communities Widen Amenities (NV)
A successful luxury golf course community these days really isn’t about the golf, explained Rich MacDonald. Instead, the owner of DragonRidge Country Club in Henderson said the golf communities that thrive are those that deliver opportunities for strong social connections — times for members to mingle over a glass of wine, share a laugh over […]
Hillsborough man pleads guilty in $5 million condo conversion scam (FL)
A Hillsborough County mortgage broker and a South Florida developer each face up to 5 years in federal prison after pleading guilty to conspiring to lie to banks that lost a total of $5 million on loans they made at the Preserve of Temple Terrace. Read the article……………………….
Fort Lauderdale had right to say no to 21-story tower, court says (FL)
Three men stood in the way of a controversial 21-story tower slated to replace a three-story condo near the U.S. 1 tunnel in downtown Fort Lauderdale. And their rejection of that 800-unit tower, proposed for the south side of the New River just west of the tunnel, got the city sued. Read the article…………………………..
Will Upzoning Result in More Condos?
Nearly all housing-related organizations and major news outlets have reported on the affordable housing crisis in the U.S. Research from the Urban Institute, Harvard University, Brookings Institute, and advocacy groups supports that home prices are rising at a much higher rate than wage growth. Millennials, the generation making up the largest group of potential homebuyers […]
Developer Can Use Working Fund Contributions to Offset its Financial Obligations to a Homeowner Association (FL)
It is common practice for developers to collect working fund contributions or initial contributions upon the sale of homes in communities operated by homeowner associations. The amount of working fund contributions or initial contributions can be either a specific dollar amount or an amount equal to 2-3 months of association assessments. In a recent opinion, […]
Ritz-Carlton Residences Sunny Isles developers face second lawsuit from Tropicana (FL)
Seven months after settling a lawsuit over a failed $115 million deal for the Tropicana Condominium, the building’s condo association is again suing the developers of the neighboring Ritz-Carlton Residences in Sunny Isles Beach. Read the article…………………
The Law and Emerging Technology – Why developers should be careful about using untested technology in buildings
In 2015, the developer behind Brickell House, a 46-story condo tower in Miami’s financial district made the news as a brand new $16 million robotic car garage that was supposed to retrieve cars in under ten minutes went haywire and became inoperable. Condo owners were forced to find new places to park and they responded […]
Meeting between homeowners, developers gets heated (GA)
Tensions ran high on Tuesday night between homeowners and developers of a west Forsyth neighborhood. On Tuesday, a meeting was held at Vickery Middle School between homeowners in the Lakes of Franklin Goldmine subdivision and officials with homebuilder Paran Homes and developer American Homes 4 Rent, which is developing the third phase of the neighborhood […]