Seattle Washington Building Expert Directory

Real Estate & Construction News Round-Up (11/16/22) – Backlog Shifts, Green Battery Storage, and Russia-Ukraine Updates

December 05, 2022 — Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law Blog
This week’s round-up explores backlog shifts in the nonresidential construction sector, updates from the ongoing war between Russia and Ukraine, lithium-ion battery storage issues in New York City, and more.

According to Associated Builders and Contractors, construction backlog fell back below the reading observed in February 2020, largely due to a decline in the commercial and institutional sector. (Sebastian Obando, Construction Dive)
Amid celebration after retaking Kherson from retreating Russian troops, the Kremlin targeted critical infrastructure before withdrawing. (Michael Kern, Oil Price)
Real estate value in the metaverse is rising, given that virtual land can be built upon to create unique branding experiences that lend to advertising, marketing, socializing, and entertainment. (Evan Bourke & Sarah Hedley Hymers, Euronews)

Read the court decision
Read the full story...
Reprinted courtesy of Pillsbury's Construction & Real Estate Law Team

Build Back Better Includes Historic Expansion of the Low-Income Housing Tax Credit Program

December 20, 2021 — James M. Grosser & David W. Wright - Gravel2Gavel Construction & Real Estate Law Blog
On November 19, 2021, the U.S. House of Representatives passed the Build Back Better Act (H.R. 5376), a bill that represents a large portion of the Biden-Harris Administration’s agenda. Among other spending and tax measures, the bill includes an unprecedented expansion of the Low-Income Housing Tax Credit (LIHTC) program. Four proposals are headlining this expansion:

Increasing the 9% LIHTC allocation cap by 10% plus inflation annually from 2022 to 2024. With this increase, the 2024 LIHTC allocation cap will rise to $3.97 per capita and a small state minimum of around $4.58 million, constituting a 41 percent increase in allocable LIHTC over current levels. The allocation cap would then decrease to $2.65 per capita and a small state minimum of $3.12 million in 2025 and would thereafter be indexed to inflation from the 2025 baseline.
Reducing the 50% threshold for 4% tax-exempt bond-financed projects to 25% for five years, beginning in 2022.

Reprinted courtesy of James M. Grosser, Pillsbury and David W. Wright, Pillsbury Mr. Grosser may be contacted at james.grosser@pillsburylaw.com Read the court decision
Read the full story...
Reprinted courtesy of

Ambiguous Application Questions Preclude Summary Judgment on Rescission Claim

July 19, 2017 — Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLP
In Duarte v. Pacific Specialty Ins. (No. A143828; filed 6/12/17, ord. pub. 6/29/17) a California appeals court held that an insurer was not entitled to summary judgment on its rescission claim because the disputed questions in the insurance application were ambiguous. In Duarte, the insured/owner purchased a tenant-occupied property in Oakland. Several years later the tenant’s daughter moved in, and continued living there after the tenant died. The insured/owner served the daughter with an eviction notice and shortly thereafter applied for Owners, Landlords & Tenants (“OLT”) liability coverage. The tenant/daughter responded to the eviction notice by filing a habitability lawsuit, claiming emotional distress and physical injury, among other things. The insurer denied coverage and a defense, drawing a bad faith lawsuit for failure to defend and “wrongful cancellation” of the policy. The insurer answered and raised rescission as an affirmative defense, based on alleged fraud and misrepresentation in the OLT policy application. Reprinted courtesy of Christopher Kendrick, Haight Brown & Bonesteel LLP and Valerie A. Moore, Haight Brown & Bonesteel LLP Mr. Kendrick may be contacted at ckendrick@hbblaw.com Ms. Moore may be contacted at vmoore@hbblaw.com Read the court decision
Read the full story...
Reprinted courtesy of

Framework, Tallest Mass Timber Project in the U.S., Is On Hold

August 07, 2018 — Nadine M. Post - Engineering News-Record
The tallest mass-timber building development in the U.S. is "on hold for the foreseeable future," according to the developer, named project^. The 12-story mixed-use building, known as Framework, has been under development in Portland, Ore., since 2014. Construction was first delayed a year ago and currently is postponed because of changing market conditions, which have had a negative impact on the development's bottom line. These include inflation, escalating construction costs and fluctuations in the tax credit market, says the developer. Read the court decision
Read the full story...
Reprinted courtesy of Nadine M. Post, ENR
Ms. Post may be contacted at postn@enr.com

Sellers of South Florida Mansion Failed to Disclose Construction Defects

October 08, 2014 — Beverley BevenFlorez-CDJ STAFF
A couple who reportedly sold their custom, beach-front home on Golden Beach for more money than any other home in that town previously, may have failed to disclose construction defects, according to Daily Business Review. The original owners, reported Daily Business Review, claimed (according to court documents) that “they were ‘unable to spend even one night because an overwhelming smell of mold in the home triggered a severe reaction in Mrs. Hochberg.’" They also alleged the new home had “cracked walls, drafty doors, leaky windows, poorly cut marble and peeling stucco.” The owners sued the subcontractors, but lost due to not filing within the four-year statute of limitations. While water leaks were disclosed during the sale with a notation that all leaks had been repaired, “the extent of the home's repair history was not discussed during nearly eight months of haggling over the property, the buyer's broker said.” Read the court decision
Read the full story...
Reprinted courtesy of

Changes in the Law on Lien Waivers

November 16, 2020 — Alan Paulk - Autry, Hall & Cook, LLP
Among many things to look forward to in 2021, we can add a new lien law to the list. Effective January 1, 2021, Georgia’s Lien Statute will be modified so that lien waivers and releases are limited to “waivers and releases of lien and labor or material bond rights and shall not be deemed to affect any other rights or remedies of the claimant.” O.C.G.A. 44-14-366(a). This would mean that lien waivers only waive lien or bond rights and do not waive contractual rights to collect payment. The new law is in reaction to a decision from the Georgia Court of Appeals in ALA Constr. Servs., LLC v. Controlled Access, Inc., 351 Ga. App. 841 (2019). In that case, a contractor signed an interim lien waiver at the time it submitted an invoice. The contractor did not receive payment, and it failed to timely record an affidavit of non-payment or a claim of lien. Subsequently, the contractor filed suit for breach of contract. The Georgia Court of Appeals held that the statutory form lien waiver was binding against the parties “for all purposes” and not just the purpose of preserving the right to file a lien. By such sweeping logic, the contractor’s breach of contract claim was denied. Read the court decision
Read the full story...
Reprinted courtesy of Alan Paulk, Autry, Hall & Cook, LLP
Mr. Paulk may be contacted at paulk@ahclaw.com

Are Housing Prices Poised to Fall in Denver?

December 10, 2015 — Beverley BevenFlorez-CDJ STAFF
Denver, Dallas, and Houston’s housing markets are rising too quickly and will soon hit “’bubble territory’” according to a housing market index by Florida Atlantic University and Florida International University, reported the Denver Business Journal. "There is about a 70 percent chance that renters in Denver will get more wealth on average than buyers," Ken Johnson, a real estate economist at the university in Boca Raton, Florida, told the Denver Post. Read the court decision
Read the full story...
Reprinted courtesy of

New WA Law Caps Retainage on Private Projects at 5%

May 29, 2023 — Brett M. Hill & Ryanne S. Mathisen - Ahlers Cressman & Sleight PLLC
This month, Governor Jay Inslee signed into law a new statute that caps retainage on private construction projects to five percent (5%), provides a mechanism for subcontractors to get paid their retainage prior to project completion, and allows for contractors and subcontractors to post a retainage bond and get paid their retainage early. For those interested in reading the full text of this new law, the statute can be found here. The new statute goes into effect on July 23, 2023. Under the statute, when a contractor or subcontractor considers their work under a contract subject to retainage complete, they may notify the party they contracted to perform the work for. Within 15 days of receiving the notice of completion of work, the party receiving the notice must respond with either (1) notice of acceptance of work or (2) notice of uncompleted items to the contractor or subcontractor. If the party receiving notice does not provide notice of uncompleted items within 15 days or fails to respond to the notice of completion entirely, the unpaid retainage will begin to accrue interest at a rate of one percent (1%) per month, 30 days after the initial 15-day period. However, this interest will not accrue against a contractor who has not been paid the retainage by an upper-tier contractor or owner until payment has been received, so long as that contractor has submitted its subcontractor’s notice of completion to the upper-tier contractor or owner within 30 days of receipt. Reprinted courtesy of Brett M. Hill, Ahlers Cressman & Sleight PLLC and Ryanne S. Mathisen, Ahlers Cressman & Sleight PLLC Mr. Hill may be contacted at brett.hill@acslawyers.com Ms. Mathisen may be contacted at ryanne.mathisen@acslawyers.com Read the court decision
Read the full story...
Reprinted courtesy of

SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES