Metrostudy Shows New Subdivisions in Midwest
October 01, 2014 —
Beverley BevenFlorez-CDJ STAFFMetrostudy surveyed the Chicago, Indianapolis, and Minneapolis/St. Paul markets and found an increase in subdivisions—“[n]ot a re-hashing of existing communities or a re-configuring of existing developments, but new land, being newly developed,” according to Builder magazine.
Builder reported that in 2010 only 383 new lots were delivered to the Chicago market, but in just the first six months of 2014, 1,500 new lots have been delivered. Furthermore, the Twin Cities had a total of 964 lots delivered in 2010. “In 2013, there were 3,683 new lot deliveries. Indianapolis has seen a total of 1,400 new lots delivered in the first six months of 2014, compared to just 650 through the first half of 2010.”
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Loan Snarl Punishes Spain Builder Backed by Soros, Gates
July 30, 2014 —
Katie Linsell, Manuel Baigorri and Ruth David – BloombergPressure is mounting on Esther Koplowitz to refinance personal loans before a deadline tomorrow and allow a Spanish builder that counts Bill Gates and George Soros among investors to resolve its own debt tangle.
Koplowitz is renegotiating about 1 billion euros ($1.8 billion) of debt tied to her controlling stake in Fomento de Construcciones & Contratas SA, according to two people familiar with the matter, who asked not to be identified because it’s private. Her determination to retain control means that she is unlikely to approve any plan by FCC to raise equity until she refinances her own debt, the people said.
Ms. Linsell may be contacted at klinsell@bloomberg.net; Mr. Baigorri may be contacted at mbaigorri@bloomberg.net; Ms. David may be contacted at rdavid9@bloomberg.net
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Katie Linsell, Manuel Baigorri and Ruth David, Bloomberg
The Anatomy of a Construction Dispute- The Claim
January 12, 2015 —
Christopher G. Hill – Construction Law MusingsA new year brings with it promise and challenges. The promise is a relatively clean slate and the thought that 2015 will be a great year for construction professionals and those that assist them. The challenges come from the almost inevitable issues that can arise on a construction site with its many moving parts and enough potential pitfalls to make even the most optimistic construction attorney, contractor, subcontractor or supplier think that Murphy was an optimist.
In order to assist with the potential challenges, this post will be the first in a series of “musings” on the best way to handle a payment dispute arising from a construction contract. This week’s post will discuss what the first steps should be once a payment dispute or claim arises. We’ll assume that you, as a construction contractor, have taken early advantage of the services of a construction lawyer and have carefully reviewed your contract for issues before signing that contract.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
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 BlogOn 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
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Revisiting OSHA’s Controlling Employer Policy
December 21, 2017 —
Wally Zimolong - Zimolong LLCThe United States Court of Appeals for the 5th Circuit has been asked to review OSHA’s twenty year old “controlling employer” policy. As many contractors are surprised to learn, under OSHA’s controlling employer policy, you can be given an OSHA citation even when your own employee is not exposed to the alleged hazard.
A. The Controlling Employer Policy
OSHA’s current controlling employer policy has been effective since 1999. That policy applies to multi-employer worksites, which means virtually all construction sites. Under the policy, OSHA can cite the creating, exposing, correcting, or controlling employer. A creating employer is one who creates the hazard to which workers are exposed. The exposing employer is one who permits his employees to be exposed to the hazard, whether it created the hazard or not. The correcting employer is one who is responsible with correcting known hazards. Finally, the controlling employer is one “who has general supervisory authority over the worksite, including the power to correct safety and health violations itself or require others to correct them.” Most general contractors and CM’s are controlling employers.
Under OSHA’s policy, a contractor’s OSHA safety obligations hinges on whether it is a creating, exposing, correcting, or controlling employer. The creating, exposing, and correcting contractors obligations are fairly straightforward. However, the controlling contractors obligations are more nuisanced.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Florida’s Citizens Property Insurance May Be Immune From Bad Faith, But Is Not Immune From Consequential Damages
July 15, 2019 —
Michael S. Levine, Andrea DeField & Daniel Hentschel - Hunton Insurance Recovery BlogA coverage dispute arising as a result of property damage from Hurricane Frances, which occurred in 2004, will continue following a Florida appellate court decision in an action brought against Citizens Property Insurance Corp.
The insureds, Manor House, LLC, Ocean View, LLC, and Merrit, LLC, presented a claim to Citizens for damage sustained at nine apartment buildings as a result of Hurricane Florence. After payments for a portion of the property damage were sustained, Citizens continued to dispute the full amount due. Meanwhile, the insureds suffered lost rental income because of the delay. Ultimately, the insureds filed suit against Citizens alleging, among other things, breach of contract and fraud, and sought to recover extra-contractual damages for loss of rental income due to the delay in adjusting and repairing the damaged property.
The trial court granted Citizens’ motion for partial summary judgment on several issues, including Citizens’ motion for partial summary judgment regarding appraiser and umpire fees; motion for partial summary judgment to prevent the insureds from pursuing a claim for extra-contractual, consequential damages; and motion for judgment on the pleadings on the insured’s claim for fraud.
Reprinted courtesy of Hunton Andrews Kurth attorneys
Michael S. Levine,
Andrea DeField and
Daniel Hentschel
Mr. Levine may be contacted at mlevine@HuntonAK.com
Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Hentschel may be contacted at dhentschel@HuntonAK.com
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Sierra Pacific v. Bradbury Goes Unchallenged: Colorado’s Six-Year Statute of Repose Begins When a Subcontractor’s Scope of Work Ends
November 03, 2016 —
Luke Mecklenburg – Snell & Wilmer Real Estate Litigation BlogIt’s official: the October 20, 2016 deadline to petition for certiorari to the Colorado Court of Appeals on its decision in Sierra Pacific Industries, Inc. v. Bradbury has passed, so it appears that decision will stand.
In Sierra Pacific, the Court of Appeals held as a matter of first impression that the statute of repose for a general contractor to sue a subcontractor begins to run when a subcontractor’s scope of work is substantially complete, regardless of the status of the overall project. Sierra Pac. Indus., Inc. v. Bradbury, 2016 COA 132, ¶ 28, ___ P.3d ___. The Court of Appeals interpreted the statute of repose in C.R.S. section 13-80-104, which requires that “all actions against any architect, contractor, builder or builder vendor, engineer, or inspector performing or furnishing the design, planning, supervision, inspection, construction, or observation of any improvement to real property” must be brought within six years of substantial completion of that improvement. C.R.S. § 13-80-104(1)(a). Recognizing that “an improvement may be [to] a discrete component of an entire project” under Shaw Construction, LLC v. United Builder Services, Inc., 296 P.3d 145 (Colo. App. 2012), the Court of Appeals determined that “a subcontractor has substantially completed its role in the improvement at issue when it finishes working on the improvement.” Sierra Pac., 2016 COA at ¶¶ 20, 28. In doing so, it rejected Sierra Pacific’s argument that the statute could be tolled under the repair doctrine “while others worked to repair [the subcontractor’s] ‘improper installation work and flawed repair work.’” Id. at ¶ 29. Because six years had undisputedly passed since the subcontractor completed its scope of work when Sierra Pacific filed suit against it, the Court of Appeals affirmed the trial court’s order granting the subcontractor’s motion for summary judgment under Section 13-80-104(1)(a).
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Luke Mecklenburg, Snell & Wilmer Real Estate Litigation BlogMr. Mecklenburg may be contacted at
lmecklenburg@swlaw.com
University of California Earthquake Report Provides List of Old Concrete Buildings in LA
January 22, 2014 —
Beverley BevenFlorez-CDJ STAFFAccording to a list provided to the city of Los Angeles by the University of California, there are “about 1,500 old concrete buildings that are potentially at risk of collapse during an earthquake,” the Los Angeles Times reported. The list can help the city identify “concrete buildings most likely to fail in an earthquake.”
The report, however, “does not amount to a list of dangerous buildings,” the university scientists told the Los Angeles Times. It is a list of concrete buildings built before 1980. Some of the “buildings are vulnerable, others are not.”
Concrete buildings pose a potentially dangerous threat, reported the Los Angeles Times: “After the Northridge earthquake caused two concrete buildings to collapse and severely damaged others, structural engineers warned that the collapse of a single concrete building ‘has the potential for more loss of life than any other catastrophe in California’ since the 1906 San Francisco earthquake.”
Eric Garcetti, Los Angeles Mayor, has asked Lucy Jones, a U.S. Geological Survey seismologist, to act as his science advisor on earthquake issues. Garcetti has asked Jones “to come up with recommendations by the end of the year on retrofitting issues, including how to get privately owned concrete buildings retrofitted.”
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