Denver’s Proposed Solution to the Affordable Housing Crisis
March 06, 2022 —
Taylor Ostrowski - Colorado Construction Litigation BlogOver the past ten years, Colorado has seen a population growth of almost 15 percent, with many residing in Denver. In fact, in 2020, Denver ranked among the top five cities for inbound growth in the United States. At the same time, from 2010 through 2020, the state’s production of new housing decreased by 40 percent. The decrease in supply, coupled with the increase in demand has exasperated the already rising cost of housing in the state. This, along with other external factors such as job loss due to the COVID pandemic, has resulted in a statewide housing crisis.
The City of Denver is proposing a revision to the municipal code that would expand affordable housing through three main tools: (1) increasing “linkage fees,” (2) requiring new multi-family development to designate a percentage of units to be affordable, and (3) offering zoning and financial incentives. The proposal addresses both rental housing and ownership opportunities. Although it is essential to combat the housing crisis and increased homelessness in the region, it is equally important to understand the impacts the proposed affordable housing ordinance would have on developers, if and when enacted.
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Taylor Ostrowski, Higgins, Hopkins, McLain & Roswell, LLCMs. Ostrowski may be contacted at
ostrowski@hhmrlaw.com
Coverage Article - To Settle or Not To Settle?
September 20, 2017 —
Tred R. Eyerly - Insurance Law HawaiiMy colleagues Rina Carmel, Karin Aldama and I authored an article entitled, "To Settle or Not to Settle? Bad-Faith Implications in Resolving Underlying Actions." The article appears in the current edition of Coverage, published by the Insurance Coverage Litigation Committee of the ABA. The article is here.
The article addresses the obstacles faced when settling liability claims. The insurer and insured may have fundamental disagreements on whether to settle or how much to pay in settlement. Should the insured contribute to the settlement? Whether the insurer should seek from the policyholder, or the policyholder offers to make, a settlement contribution presents thorny issues, including whether such a contribution can convert an excess demand into a demand within limits—which, in turn, affects the standard for evaluating the insurer’s response to the third-party demand. On the other hand, the policy holder may not want to settle and set a bad precedent.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Why Is California Rebuilding in Fire Country? Because You’re Paying for It
March 14, 2018 —
Christopher Flavelle – BloombergAfter last year’s calamity, officials are making the same decisions that put homeowners at risk in the first place.
At the rugged eastern edge of Sonoma County, where new homes have been creeping into the wilderness for decades, Derek Webb barely managed to save his ranch-style resort from the raging fire that swept through the area last October. He spent all night fighting the flames, using shovels and rakes to push the fire back from his property. He was even ready to dive into his pool and breathe through a garden hose if he had to. His neighbors weren’t so daring—or lucky.
On a recent Sunday, Webb wandered through the burnt remains of the ranch next to his. He’s trying to buy the land to build another resort. This doesn’t mean he thinks the area won’t burn again. In fact, he’s sure it will. But he doubts that will deter anyone from rebuilding, least of all him. “Everybody knows that people want to live here,” he says. “Five years from now, you probably won’t even know there was a fire.”
As climate change creates warmer, drier conditions, which increase the risk of fire, California has a chance to rethink how it deals with the problem. Instead, after the state’s worst fire season on record, policymakers appear set to make the same decisions that put homeowners at risk in the first place. Driven by the demands of displaced residents, a housing shortage, and a thriving economy, local officials are issuing permits to rebuild without updating building codes. They’re even exempting residents from zoning rules so they can build bigger homes.
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Christopher Flavelle, Bloomberg
Veterans Day – Thank You for Your Service
December 05, 2022 —
Travis Colburn - Ahlers Cressman & SleightHappy Veterans Day
[1] to our country’s servicemembers past and present! ACS would like to express its deepest gratitude and respect in saying thank you to those that have served, or are serving, in our armed forces. It undoubtedly takes incredible bravery, fortitude, integrity, respect, and a commitment to our country’s evolving ideals. Some of those same attributes that are necessary for service are also well-geared toward a post-military career in construction. As some already know, Veterans have unique construction contracting opportunities at both the state and federal level. The following is a high-level overview of the process and opportunities for veterans who are not aware or who are considering a career in construction.
There are federal and state level opportunities for Veteran-owned businesses. The initial step in accessing federal and state level contracting opportunities is different for each but begins with certification/verification.
At the federal level, effective January 1, 2023, all responsibilities for the verification of Veteran-owned small businesses (“ VSOB”) will transfer from the Department of Veterans Affairs to the Small Business Administration.
[2] Verification is the process that establishes eligibility for access to Veteran-specific benefits, including certain government contracts and the purchase of surplus government property, by confirming that VSOBs and service-disabled Veteran-owned small businesses (“SDVOSB”) are operated by Veterans.
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Travis Colburn, Ahlers Cressman & SleightMr. Colburn may be contacted at
travis.colburn@acslawyers.com
Ninth Circuit Issues Pro-Contractor Licensing Ruling
July 18, 2018 —
Amy L. Pierce – Gravel2Gavel Construction & Real Estate Law BlogOn July 10, the U.S. Court of Appeals for the Ninth Circuit issued its much anticipated and a pro-contractor ruling in MP Nexlevel of California, Inc. v. CVIN LLC. The appeal arose from a dispute over the scope of a California specialty contractor’s license and, more particular, involved whether the subcontractor’s performance of certain work was outside the scope of its license constituting a breach of contract and resulting in the contractor not being entitled to payment for its work (Cal. Bus. & Prof. Code § 7031(a)). In an unpublished opinion, the Ninth Circuit reversed and remanded the matter, finding that “Nexlevel’s work here was ‘incidental and supplemental’ to the installation of these fiberoptic systems,” as contemplated by Cal. Code Regs. Tit. 16, § 831.
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Amy L. Pierce, Pillsbury Winthrop Shaw Pittman LLPMs. Pierce may be contacted at
amy.pierce@pillsburylaw.com
New Home Construction Booming in Texas
October 24, 2022 —
Jason Daniel Feld & Ron Raydon - Kahana FeldWith the rapid relocation trends of families moving to Texas, it was reported that new residential construction permits in Texas grew to a total value in excess of $2 billion and over 7,500 new construction permits in September 2022 alone. D.R. Horton lead the way with 1,139 new permits, while Lennar Homes clocked 696 new permits. Other leading homebuilders including KB Homes (239 permits) and Pulte Homes (253 permits) remained active heading into the 4th Quarter of 2022. The following is a breakdown of new permits and average home values in the 4 largest cities in Texas (Houston, Dallas, Austin and San Antonio) for September 2022:
Houston
Last month, there were approximately 340 home builders with new permits on record in the Houston area, and the following ranked as the top five total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
483 |
$ 129,812.00 |
| 2-Camillo Properties |
190 |
$ 147,790.00 |
| 3-Lennar Homes |
188 |
$ 195,503.00 |
| 4-Meritage Homes |
124 |
$ 248,597.00 |
| 5-Wan Pacific Real Estate Development |
117 |
$ 165,044.00 |
Dallas
In Dallas, there were more than 290 contractors with new residential construction activity on record with HBW last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-D.R. Horton |
555 |
$ 179,430.00 |
| 2-Lennar Homes |
232 |
$ 202,318.00 |
| 3-Trophy Signature Homes |
111 |
$ 274,016.00 |
| 4-Bloomfield Homes |
97 |
$ 405,235.00 |
| 5-Meritage Homes |
92 |
$ 267,425.00 |
Austin
Last month, there were nearly 125 home builders with new construction activity on record in the Austin area, and the following ranked as the top five for total new permits for the one-month period:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
150 |
$ 154,390.00 |
| 2-KB Homes |
147 |
$ 253,606.00 |
| 3-D.R. Horton |
99 |
$ 200,416.00 |
| 4-Taylor Morrison Homes |
79 |
$ 365,183.00 |
| 5-David Weekley Homes |
64 |
$ 436,978.00 |
San Antonio
In San Antonio, there were nearly 120 contractors with new residential construction activity on record last month, and the following ranked as the top five for total new permits:
| Builder | Total Permits | Average Value |
|---|
| 1-Lennar Homes |
126 |
$ 174,315.00 |
| 2-KB Homes |
55 |
$ 254,109.00 |
| 3-Pulte Homes |
52 |
$ 241,012.00 |
| 4-M/I Homes |
51 |
$ 237,283.00 |
| 5-LGI Homes |
30 |
$ 202,760.00 |
The residential construction boom is Texas does not appear to be slowing down anytime soon. With new corporations relocating corporate offices to the Lone Star State each year, we expect this trend to continue for the foreseeable future. And with increased home production, we will closely monitor the increase in construction related litigation over the next five to ten years.
The increase in market activity attracts new or inexperienced builders and tradesman, making the importance of a proactive approach to construction management all the more important. Given the labor shortages and supply chain issues. It is imperative that Texas homebuilders take extra precautions to ensure quality construction practices and oversight to minimize potential litigation.
Reprinted courtesy of Jason Daniel Feld, Kahana Feld and Ron Raydon, Kahana Feld
Mr. Feld may be contacted at jfeld@kahanafeld.com
Mr. Raydon may be contacted at rraydon@kahanafeld.com
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New California Construction Law for 2019
January 02, 2019 —
Daniel F. McLennon - Smith CurrieThe California Legislature introduced over 2637 bills in the second half of the 2017-2018 session. This article summarizes some of the more important bills affecting contractors in their roles as contractors, effective January 1, 2019, unless otherwise noted. Not addressed here are many other bills that will affect contractors in their roles as businesses, taxpayers, and employers. Each of the summaries is brief, focusing on what is most important to contractors. Because not all aspects of these bills are discussed, each summary’s title is a live link to the full text of the referenced bills for those wanting to explore the details of the new laws.
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Daniel F. McLennon, Smith CurrieMr. McLennon may be contacted at
dfmclennon@smithcurrie.com
Lawsuit Gives Teeth to Massachusetts Pay Law
September 16, 2024 —
Joseph Barra - Robinson+Cole“The Massachusetts Legislature passed the state’s Prompt Pay Act 14 years ago to improve the downstream flow of money on most large-scale private construction projects. While the act established detailed protocols for administering applications for payment and other important construction phase processes, several questions about its interpretation and impact remained unanswered.
Over the years, I watched as a significant portion of the Massachusetts design and construction community either ignored the law’s exacting requirements or were unaware of their applicability. The first indication of how the act would be interpreted came in 2022, when the state appeals court decided Tocci Building Corp. v. IRIV Partners LLC. In that case, the court strictly construed the act. It held that an owner (and its agent) who failed to promptly advise the project’s general contractor of specific factual and legal reasons why it was withholding payment, coupled with a failure to certify that funds were being withheld in good faith, violated the law—making the contractor liable for the unpaid funds.
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Joseph Barra, Robinson+ColeMr. Barra may be contacted at
jbarra@rc.com
