Developers of the completed Privé at Island Estates have agreed to collect a $21.6 million settlement from the Williams Island Property Owners Association, ending years of litigation over the construction of the luxury two-tower condo complex in Aventura. Read the article…………….
You Care About the Subdivision Regulations, You Just Don’t Know It (Yet)
Everybody’s heard of the zoning code. Sooner or later, a developer will submit an application to rezone land near your home or business, and everyone snaps to attention. Neighborhood advocates awaken from hibernation. Developers lawyer up. Because these proposals can be controversial, they frequently make the local news. As a result, the zoning code has […]
Tips to Transition Control from Property Developer to HOA Residents
Starting a Homeowner Association from the ground level can be a difficult task, but the benefits they provide are extraordinary. Many brand-new divisions remain under the control of their developer until a majority of their units or homes are complete and occupied. Until that takes place, a developer’s board of directors maintains control creating rules […]
Condominium Development: Condominium Prospectus Requirements in Florida
Florida’s condominium market has gained strength in the past five years; traditional sales are up, and prices are rising. In Northeast Florida, Condominiums and Townhomes spent an average of 11 fewer days on the market than single-family detached homes. As the condo market heats up and real estate developers consider the feasibility of development projects, […]
New Perspectives on Planned Unit Developments Article (PDF)
http://communityassociations.net/wp-content/uploads/2018/02/PUDs.pdf
New Perspectives on Planned Unit Developments
Planned unit developments, also called planned communities, are a major development type. Originally cluster housing projects with common open space, they can be planned today as infill in downtown areas or as a major master-planned community. They require discretionary review, are often dominant in the zoning process, and present a challenge to the zoning system. […]
Privé developers win $26M jury verdict against Williams Island homeowners (FL)
Builders Gary Cohen and BH3 are walking away with a $26 million jury verdict against the Williams Island Property Owners’ Association, which had sought to stop the luxury two-tower development since 2013. On Tuesday, after a seven-day trial, a jury in Miami-Dade Circuit Court ruled that the association breached a 1982 agreement requiring it not […]
Mystic Lands property owners win lawsuit (NC)
A Swain County jury sat patiently listening for seven weeks as a room full of lawyers introduced over 400 exhibits, examined and cross examined numerous witnesses and pored over thousands of emails trying to get to the bottom of a dispute between a developer and property owners. It was anyone’s guess how the jury would […]
Appeals Court Hands Down a Win for Florida HOA (FL)
Victorville West Limited Partnership (“Victorville”) purchased the Inverrary Golf Course and Clubhouse within the Inverrary community in Lauderhill, Florida, in 2006. Victorville acquired the property subject to a restrictive covenant that became the subject of a lawsuit that the Fourth DCA recently ruled could not be canceled because it remained a substantial benefit to the […]
Why your development could be in big trouble if your HOA documents aren’t set up properly
Q: My husband inherited a private development that his father owned in West Virginia. How does one go about starting a homeowners association (HOA) for something like that? The lots were sold without any agreement about an HOA. All the extra costs like roads and sewer and snow removal have been covered privately, thus making […]
Condo board’s crusade against Savanna principals struck down by state’s top court (NY)
New York State’s highest court shot down a Williamsburg condominium board’s effort to directly sue the principals of Savanna Real Estate, in a move that further enforces the protections created by limited liability companies. Read the article…………….
A condominium lawyer walks up to a trailer… Chapter 183A, the Mass. condominium statute
In this article, we want to clarify that in Massachusetts, phases in a condominium cannot be created on vacant land. A condominium in Massachusetts can be created in phases with trailers on each phase. We find it difficult to believe that little, if anything, has been written about this important subject. Chapter 183A, the Massachusetts […]
U.S. District Court Allows Association’s Claims To Proceed For Actions During Period of Developer Control (MD)
The United States District Court for the District of Maryland has denied a motion to dismiss filed on behalf of a developer, and allowed claims of a property owner’s association to proceed that concern actions taken while the board was under the control of the developer’s agents. In Greenspring Quarry Association, Inc. v. Beazer Homes […]
SC Ct of App Rules on Jury Trials and Class Action Waivers in Master Deeds-Decision is good for developers
Based upon a settlement reached with Respondents, Petitioners filed a motion seeking dismissal of their petition for a writ of certiorari to the Court of Appeals. They also asked the Court to vacate the opinion of the Court of Appeals found at 418 S.C. 282, 792 S.E.2d 240 (Ct. App. 2016). Finding that Respondents had […]
Right To Terminate Developer Contracts Must Be Exercised Within Three Years (MD)
Section 11-133 of the Maryland Condominium Act gives a council of unit owners the right to terminate leases, management contracts, employment contracts, and other contracts entered into by the developer during the period that the developer had control of a majority of the votes in the council. Read the article……………
Development: Unique Condo Uses
I’ve been working on a large number of condo developments in the past few weeks so I thought I’d take a few minutes to discuss some interesting uses for the condo concept. Before the Act was amended in 1998 there was only one type of condominium – the standard condominium. It was used for residential, […]
The Risks of Delegating Infrastructure Maintenance to Community Associations
Common-interest community associations, including home owner associations (HOAs), condominium associations, and housing cooperatives, play a critical role in the maintenance of local infrastructure. Over the past few decades, a growing number of cities and counties have delegated the responsibility for long-term maintenance of common infrastructure associated with new residential development to community associations. This often […]
Representing condominium developers (MA)
Like most condominium lawyers, I represent condominium associations and developers. In this article, however, I am going to summarize some of my thoughts on representing condominium developers. I am deliberately being provocative and aggressively pro-developer in this article. As Sasha said to Yvonne in Casablanca: “Yvonne, I love you dearly, but he” (i.e., Rick) “pays […]
Turnover Troubles: Homeowners Can Take Down Goliath
One of the most recognizable narratives in human history is the famed story of David and Goliath. Often, we find that homeowners are David in the seemingly impossible fight against Goliath, the community developer. This analogy is never more apparent than in the case of association turnovers. “Turnover” is perhaps the most important stage of […]
Small victory for homeowners in Helen’s View case (WA)
A small victory in the ongoing legal case between the Helen’s View Homeowners Association and developers seeking to build on an HOA remainder parcel happened last week as a county Superior Court judge ruled to remove lis pendens, or a notice of pending litigation, from properties implicated in the suit. Clark County Superior Court Judge […]
Association Deficits Don’t Excuse Developer From Funding HOA Reserves
Developers must establish and fund reserve accounts for their projects during the initial years while they retain control of the homeowner associations. However, there are various legal and bookkeeping maneuvers that they often employ to attempt to avoid or diminish their contributions for reserves, which are intended for use for major future maintenance expenditures. […]
Appeals court decides Centex must pay into HOA reserve (FL)
The 5th District Court of Appeal recently decided in favor of a pair of homeowners representing themselves in a case against their homeowner association at Sullivan Ranch. According to a report by the Orlando Sentinel, Sara MacKenzie, who had only practiced law for a short time after successfully earning her law degree in the 1980s, […]
What Condominium Owners Should Know About Developer Turnover of the Association: Part I
During the construction and initial sales of units within a condominium association, the developer will manage the association’s operations and governance. This means the developer controls the association’s board of directors. Once the development is constructed and a certain percentage of the units are sold, then turnover of control of the association to the unit […]
When the Sponsor Won’t Let Go (NY)
Roy Smith moved into the Wainwright, a 67-unit rental building in Forest Hills, Queens, back in the fall of 1990. When the building was converted to a condominium two years later, Smith was able to buy his apartment at the insider price. He thought it was a sweetheart deal. He had no idea what he […]
Federal Appeals Court Finds Luxury Condo Owner’s Suit Filed too Late Against Insurer (NV)
A luxury high rise condominium located in Las Vegas, Nevada, was found to have been barred from recovery of its $5 million window damage claim, according to a ruling by the Ninth Circuit of the U.S. Court of Appeals. The December 2016 appeals court ruling affirms a Nevada judge’s decision to dismiss the case based […]
South Carolina Court of Appeals Rules on Jury Trials and Class Action Waivers in Master Deeds
The South Carolina Court of Appeals has offered insight into its opinion on the issue of whether a developer may contractually create and enforce jury trial and class action waivers in a master deed. The Court’s position is good news for developers and those who represent them. Read the article…………..
Resort With A Real Estate Ownership Component: A Turnaround Case Study
Whether the setting is sun-and-sand, snow-and-ski, or an indoor water park, today’s destination resorts commonly feature real estate ownership programs. Structured as whole ownership, fractional ownership, or timeshare, these “residential” condominiums typically feature fully equipped kitchens and multiple bedrooms. This article provides a brief overview of this concept, using a turnaround case study to demonstrate […]
Downtown Sarasota condo sidelined by lawsuits
The contractor building The Jewel condo tower in downtown Sarasota is suing the owner and the designer of the 18-story high rise, claiming numerous and unexpected changes have delayed the $50 million project’s completion. Suffolk Construction Co. maintains multiple changes by owner Main Street J Development Co. and Hoyt Architects have added millions of dollars […]
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 been occurring in the Chicagoland area. In the past year, as the demand for rental […]
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 the manager really remain neutral?” The answer is “yes” when the following is included: The […]
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………….
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 in the middle. Read the article……………
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 to convey the disputed property Read the article…………
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 large extent, risk has increased as contractual protections have decreased Read the article………….
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 in each of your companies who should stimulate discussions about the future of MPCs,” she […]
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 cycle and can have a meaningful impact on the developer’s bottom line. Read the article…………
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 most significant appellate cases affecting cooperatives and condominiums. Read the article……….
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 broad private cause of action for misrepresentation against condominium sellers and their principles under Section […]
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 article…………..
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…………….
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……….
“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 the 70-storey mixed-use TRUMP TOWER complex in downtown Toronto. Read the article………..
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 use such proceeds to cover construction costs, if not properly planned and managed, developers may […]
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 of a condominium development. The issue arose in the matter of Cypress Point Condominium Association […]
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, which has witnessed skyrocketing prices amid a technology jobs boom. Read the article……….
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 they can think of, from rock-climbing walls to driving ranges and pet concierges. Read the […]
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 article……….
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 may exist that, if known at the time of purchase, would affect the price. While […]
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 developers and boards seeking to draw new buyers and keep current unit owners happy. […]
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 easements for their use and enjoyment of common areas such as ponds, private roads and […]