Developer Transition - Maryland Condominiums
June 21, 2017 —
Nicholas D. Cowie - Maryland Condo Construction Defect Law BlogINTRODUCTION
“Developer transition” is the process by which the governance of a condominium association is transferred from developer to unit owner control. This article provides a brief overview of the legal requirements that govern the developer transition process for Maryland condominiums. This article also as well as a “transition checklist” for transitioning unit owner-controlled boards of directors.
PERIOD OF DEVELOPER CONTROL
A developer initially controls an association because it owns all unsold units in the newly created condominium community. As such, the developer has the controlling votes associated with majority ownership and can appoint its own employees as the initial members of the board of directors and thereby control how the condominium association conducts its affairs. This is referred to as the “period of developer control,” during which the developer makes all decisions on behalf of the association.
The developer also creates an association’s governing documents, allowing it to dictate, subject to applicable law, the procedures and time periods under which control over the association’s board of directors will eventually be transferred to the homeowners.
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Nicholas D. Cowie, Cowie & Mott, P.A.Mr. Cowie may be contacted at
ndc@cowiemott.com
Update Regarding New York City’s Climate Mobilization Act (CMA) and the Reduction of Carbon Emissions in New York City
July 05, 2021 —
Caroline A. Harcourt, Natalie S. Starkman & Nika Bederman - Gravel2Gavel Construction & Real Estate Law BlogIn a previous post, we described how the New York City Climate Mobilization Act, 2019 (the CMA, or Local Laws 92, 94, 95, 96, 97, and 147 enacted in 2019) was passed with the goal of reducing New York City’s carbon emissions by 40 percent by 2030 and by 80 percent by 2050 (as against a 2005 baseline as provided for in item 3 of Local Law 97). It is the most ambitious building emissions law to be enacted by any city in the world. The CMA impacts “Covered Buildings” (described below) and, besides contemplating the retrofitting of Covered Buildings to achieve energy efficiency and establishing a monitoring program for Covered Buildings, the CMA contemplates compliance by means of the purchase of carbon offset credits or renewable energy. (Note the new NYC Accelerator program, launched in 2012 by the Mayor’s Office of Sustainability, provides guidance regarding energy-efficient upgrades to properties and emission reductions.)
Pursuant to the CMA:
- Beginning in 2024, Covered Buildings will have to meet the first emission targets, which are calculated by multiplying the gross floor area of each Covered Building by the occupancy classification as set forth in Local Law 97; and
- In 2025, owners of Covered Buildings will need to establish compliance by submitting a report establishing such compliance (prepared by a certified design professional) to the newly created Office of Building Energy and Emissions Performance.
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Caroline A. Harcourt, PillsburyMs. Harcourt may be contacted at
caroline.harcourt@pillsburylaw.com
Brooklyn’s Hipster Economy Challenges Manhattan Supremacy
April 08, 2014 —
Henry Goldman – BloombergMarty Markowitz was strolling in Vienna when he noticed mannequins in a shop window wearing hats emblazoned with Paris, London and Brooklyn. The store had plenty of London and Paris models. Brooklyn was sold out.
“They said they couldn’t restock the Brooklyn hats fast enough,” said Markowitz, 69, who spent 12 years as president of New York City’s most populous borough before retiring in January.
Brooklyn’s cachet as a global brand and epitome of urban hipsterdom is shifting New York City’s center of gravity, reducing the supremacy of Manhattan across the East River and exerting more influence on New York’s political, economic and cultural life. It’s creating jobs and adding residents at a faster pace than any other borough, sparking a boom in commercial development to supply the new masses.
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Henry Goldman, BloombergMr. Goldman may be contacted at
hgoldman@bloomberg.net
Three Steps to a Safer Jobsite
January 18, 2021 —
Deb Hilmerson - Construction ExecutiveCreating a conscious and robust safety culture is essential to the bottom line. A history of, and reputation for, stringent safety protocols will help contractors win more bids and reduce potential exposure to costly fines. According to OSHA, one out of every five worker deaths is construction-related. Non-fatal construction-related injuries are rising.
Now is not the time to be complacent, even for contractors with a clean, or relatively clean, safety record. Situations are changing and, in some cases, better, safer and more efficient options are becoming available. There are three areas of concern that deserve construction executives’ close attention.
Safety Glasses or Face Shield Concerns in the Wake of COVID-19
Facial and eye injuries can occur any time a worker is nailing, cutting, grinding, welding, working with concrete or handling hazardous chemicals. Now with COVID-19 protocols requiring face coverings, there is an unanticipated aggravation: fogged safety glasses.
Reprinted courtesy of
Deb Hilmerson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Breaking Down Homeowners Association Laws In California
April 03, 2019 —
Lauren Hickey - Bremer Whyte Brown & O'Meara LLPPurpose of HOAs
Property ownership often combines elements of individual and common ownership interests. For example, a property owner may individually own his or her living quarters, but also own a common interest in amenities that are considered too expensive for a single homeowner to purchase individually (such as a pool, gym, or trash collection service). Properties with such elements usually take the form of apartments, condominiums, planned developments, or stock cooperatives (together known as “common interest developments” or “CIDs”). Whenever a CID is built, California law requires the developer to organize a homeowner association (or “HOA), which can take several different names, including “community association”. Initially, the developer relies on the HOA to market the development to prospective buyers. Once each unit in the development is sold, management of the HOA is passed to a board of directors elected by the homeowners. At that point, the primary purpose of the HOA shifts to maintenance of common amenities and enforcement of community standards.
Dues/Assessments
HOAs generally charge each homeowner monthly or annual dues to cover the cost of their services. HOAs may also charge special assessments to cover large, abnormal expenses, such as the cost of upgrades or improvements. The amount charged in dues and assessments is established by the HOA’s board of directors, within the limits set by the HOA’s governing documents and California Civil Code section 1366. Section 1366 provides that HOA dues may not be increased by more than 20 percent of the amount set in the previous year, and the total amount of any special assessments charged in a given year generally may not exceed 5 percent of the HOA’s budgeted expenses.
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Lauren Hickey, Bremer Whyte Brown & O'Meara LLP
A Look Back at the Ollies
May 03, 2018 —
Beverley BevenFlorez-CDJ STAFFThe Jerrold S. Oliver Award of Excellence, also known as the “Ollie” award, is presented to “an individual who is outstanding or has contributed to the betterment of the construction defect community.” West Coast Casualty asks members of the construction defect community to nominate those they feel are deserving of the award, and then members vote for one of four nominees. The award is presented at the West Coast Casualty Seminar. Those recognized receive a plaque and a donation in the winner’s name to Habitat for Humanity as well as a local California and Nevada charity.
Jerrold S. Oliver was a “’founding father’ in the alternate resolution process in construction defect claims and litigation. His loyalty and commitment to this community were beyond mere words as he was a true believer in the process of resolution.”
Past Award Winners:
1996 - Awarded to Ross R. Hart, Esq. (Mediator - American Arbitration Assoc.)
1997 - Awarded to Merv Thompson, Esq. (Mediator in private practice)
1999 - Awarded to Tom Craigo, (Adjuster - C.N.A. Insurance Company)
2000 - Awarded to Kristi Cole, (Adjuster - Safeco Insurance Company)
2001 - Awarded to Karen Rice, (Claims Manager - ACE / USA)
2002 - Awarded to Stephen Henning, Esq. (Wood, Smith, Henning and Berman, LLP)
2003 - Awarded to Ross Feinberg, Esq. (Feldscott, Lee, Feinberg, Grant and Mayfield LLP)
2004 - Awarded to Janet Shipes (Adjuster – C.N.A. Insurance Company)
2005 - Awarded to Edward Martinet (Expert – MC Consultants)
2006 - Awarded to Hon. Victoria V. Chaney (Judge – Los Angeles Superior Court)
2007 - Awarded to Bruce Edwards, Esq. (Mediator) JAMS
2008 - Awarded to Gerald Kurland, Esq. (Mediator) JAMS
2009 - Awarded to Keith Koeller, Esq. (Koeller, Nebecker, Carlson and Haluck, LLP)
2010 - Awarded to Terry Wolcott – (Construction Defect Manager – Travelers Ins. Co.)
2011 - Awarded to George Calkins, Esq. (Mediator) JAMS
2012 - Awarded to Joyia Greenfield, Esq. (Lorber, Greenfield and Polito, LLP)
2013 - Awarded to Margee Luper (Claim Manager – XL Insurance Group)
2014 - Awarded to Matt Liedle, Esq. (Liedle, Lounsbery, Larson & Lidl, LLP)
2015 - Awarded to Robert A. Bellagamba, Esq. (Special Master/Mediator, Castle & Dekker)
2016 - Awarded to Lisa Unger, (Senior Claims Examiner, Global Management Liability Markel)
2017 - Awarded to Caryn Siebert, (Vice President, Claims, Knight Insurance Group)
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Saved By The Statute: The Economic Loss Doctrine Does Not Bar Claims Under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law
May 10, 2021 —
Gus Sara - The Subrogation StrategistIn Earl v. NVR, Inc., No. 20-2109, 2021 U.S. App. LEXIS 6451, the U.S. Court of Appeals for the Third Circuit (Third Circuit) considered whether, under Pennsylvania law, the plaintiff’s Unfair Trade Practices and Consumer Protection Law (UTPCPL) claims against the builder of her home were barred by the economic loss doctrine. The UTPCPL is a Pennsylvania statute that prohibits “unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce.” 73 Pa. Stat. Ann. § 201-3. The Third Circuit previously addressed the impact of the economic loss doctrine on UTPCPL claims in Werwinski v. Ford Motor Co., 286 F.3d 661 (3d Cir. 2002). In Werwinski, the court held that the plaintiff’s UTPCPL claim was barred by the economic loss doctrine. The Court of Appeals overturned its decision in Werwinski and held that the economic loss doctrine does not bar UTPCPL claims since such claims are statutory, and not based in tort.
In Earl, the plaintiff, Lisa Earl, entered into an agreement with defendant NVR, Inc. (NVR) for the construction and sale of a home in Allegheny County, Pennsylvania. Ms. Earl learned of the home through NVR’s marketing, which described the home as containing “quality architecture, timeless design, and beautiful finishes.” Ms. Earl alleged that during the construction of the home, she had further discussions with agents of NVR, who made representations that the home would be constructed in a good and workmanlike manner and that any deficiencies noted by Ms. Earl would be remedied. The defendant also assured Ms. Earl that the home would be constructed in accordance with relevant building codes and industry standards. After moving into the home, Ms. Earl discovered several material defects in the construction. She provided notice of these defects to NVR, but NVR’s attempts to repair some of the defects were inadequate.
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Gus Sara, White and WilliamsMr. Sara may be contacted at
sarag@whiteandwilliams.com
Hong Kong Buyers Queue for New Homes After Prices Plunge
July 09, 2014 —
Michelle Yun – BloombergOn a Saturday morning in mid-June, thousands wait, crammed into Hong Kong’s Fortune Metropolis mall, across Victoria Harbor from the main business district, their eyes locked on large elevated screens. Cheers erupt when numbers flash, indicating the lucky ticket holders in the crowd.
They have paid HK$150,000 ($19,354) to enter a lottery that prioritizes buyers of apartments at City Point, a seven-tower development that billionaire Li Ka-shing’s Cheung Kong Holdings Ltd. (1) is building. More than 5,000 homebuyer-hopefuls are vying for 442 units, or about 11 for every home that went on sale the weekend of June 14.
Housing sales in Hong Kong are rising after government efforts to cool soaring prices led transactions to plunge last year to the lowest since at least 2002. A drop in mortgage rates and discounts from builders are luring back buyers of new homes after their price fell as much as 20 percent since October.
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Michelle Yun, BloombergMs. Yun may be contacted at
myun11@bloomberg.net
