Cambridge Massachusetts Building Expert Directory

Chairman of the Senate Committee on Banking, Housing and Urban Affairs Calls for CFPB Investigation into Tenant Screening Businesses

December 13, 2021 — Brian H. Montgomery - Gravel2Gavel Construction & Real Estate Law Blog
Senator Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, has written to newly confirmed Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, asking him to review companies in the tenant screening industry for possible Fair Credit Reporting Act violations and other violations of U.S. laws. The CFPB, for its part, has already published a bulletin alerting Consumer Reporting Agencies (CRAs) and other furnishers of consumer information that, as federal, state and local pandemic-related housing protections expire, the Bureau will be giving greater enforcement focus to these businesses’ compliance with accuracy and dispute obligations under the Fair Credit Reporting Act (FCRA) and Regulation V. While it is still unclear whether Director Chopra will direct the Bureau to investigate specific businesses flagged by Chairman Brown, the tenant screening industry will likely face increased scrutiny in the coming months, which may impact their service offerings and cause interruptions for landlords relying on these businesses and services. There are approximately 2,000 tenant screening companies across the United States. These companies are used by landlords to better identify and perform background checks on prospective tenants. These reports typically provide a prospective tenant’s rental and eviction histories, credit score, debt-to-income ratio, and outstanding credit obligations, among other financial metrics. The reports also usually include a criminal background check, including searches of sex offender registries and other public records searches. Many tenant screening companies then use this information to provide an estimate of the risk that each tenant presents, calculated through proprietary algorithmic formulas. These reports are usually available to landlords at a cost ranging from approximately $5 to $55 per report, usually passed through to the prospective tenant through application fees. Read the court decision
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Reprinted courtesy of Brian H. Montgomery, Pillsbury
Mr. Montgomery may be contacted at brian.montgomery@pillsburylaw.com

Sobering Facts for Construction Safety Day

April 28, 2014 — Melissa Dewey Brumback – Construction Law in North Carolina
Happy “Construction Safety Day” everyone! James White of Maxwell Systems, has shared with me an infographic showing all sorts of data about construction fatalities. As you might expect, falls are the #1 source of construction-site fatalities, followed by being struck by falling objects, electrocution, and being caught between objects, in that order. Together, these “fatal four” make up 57% of all construction worker deaths. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Construction Law in North Carolina
Ms. Brumback may be contacted at mbrumback@rl-law.com

The Jersey Shore gets Beach Prisms Designed to Reduce Erosion

January 22, 2014 — Beverley BevenFlorez-CDJ STAFF
Thirty-five beach prisms manufactured by Smith-Midland Corporation have been installed along the Jersey shore in Ocean Gate, New Jersey. According to the Wall Street Journal, “The prisms protect homes, prevent erosion, and reduce impacts from natural disasters like Hurricane Sandy.” They “are made with a built-in parabolic curve that scatters waves away as spray instead of allowing them to crash up onto the vulnerable shoreline.” Ocean Gate’s Mayor Paul J. Kennedy stated, "We've been losing beach year after year with the Nor'easters we get. So we came up with an idea that hopefully will work,” The Wall Street Journal reported. Read the court decision
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What is a Subordination Agreement?

May 06, 2019 — Bremer Whyte Brown & O'Meara LLP
Put simply, a subordination agreement is a legal agreement which establishes one debt as ranking behind another debt in the priority for collecting repayment from a debtor. It is an arrangement that alters the lien position. Without a subordination clause, loans take chronological priority which means that a deed of trust recorded first will be considered senior to all deeds of trusts recorded after. As such, the oldest loan becomes the primary loan, with first call on any proceeds from a sale of a property. However, a subordination agreement acknowledges that one party’s claim or interest is inferior to that of another party in the event that the borrowing entity liquidates its assets. Further, shareholders are subordinate to all creditors. The junior debt is referred to as a “subordinated debt”, and the debt which has a higher claim to any assets is the senior debt. Often, the borrower does not have enough funds to pay all debts, and lower priority debts may receive little or no repayment. For example, if a business has $400,000 in senior debt, $100,000 in subordinated debt, and a total asset value of $420,000, upon liquidation of the company, only the senior debtholder will be paid in full. The remaining $20,000 will be distributed among the subordinated debtholders. Subordinated debts are, therefore, riskier and lenders will require a higher interest rate as compensation. Read the court decision
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Reprinted courtesy of Bremer Whyte Brown & O'Meara LLP

Illinois Town Sues over Construction Defects at Police Station

October 08, 2013 — CDJ STAFF
The Chicago suburb of Northlake has filed a lawsuit against the designers and builders of its police station, claiming that the building leaks due to design and construction flaws. The building was finished in 2009 and flooded in 2010, 2011, and 2013. Northlake mayor Jeffrey Sherwin said that “a building that’s flooded three times in three years is kind of extreme.” In addition to requiring the replacement of carpet and drywall, the flooding disrupted police service and damaged both police and personal property. Mr. Sherwin noted that the city has tried to settle with the architects and contractors, but no settlement had been Read the court decision
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Economy in U.S. Picked Up on Consumer Spending, Construction

October 02, 2015 — Shobhana Chandra – Bloomberg
The world’s largest economy expanded more than previously forecast in the second quarter, boosted by gains in consumer spending and construction that may help the U.S. withstand a global slowdown. Gross domestic product rose at a 3.9 percent annualized rate, compared with a prior estimate of 3.7 percent, Commerce Department figures showed Friday in Washington. The median forecast of 76 economists surveyed by Bloomberg called for a 3.7 percent gain. Strong hiring, cheaper gasoline and higher home prices will probably sustain household purchases, which account for about 70 percent of the economy. That helps bolster Federal Reserve Chair Janet Yellen’s view that the U.S. will overcome any fallout from cooling overseas markets and swings in global financial and commodity markets. Read the court decision
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Reprinted courtesy of Shobhana Chandra, Bloomberg

Disgruntled Online Reviews of Attorney by Disgruntled Former Client Ordered Removed from Yelp.com

June 30, 2016 — Renata L. Hoddinott & David W. Evans – Haight Brown & Bonesteel LLP
The Court of Appeal of the State of California – First Appellate District in Hassell v. Bird (6/7/16 – Case No. A143233) affirmed an order from a judgment in favor of an attorney and her firm and against a disgruntled former client directing non-party Yelp.com to remove defamatory reviews posted to its site. Attorney Dawn Hassell (“Hassell”) filed suit against Ava Bird (“Bird”) arising out of Hassell’s brief legal representation. The attorney/client relationship lasted a total of 25 days after which Hassell withdrew from the representation because of difficulties communicating with Bird and Bird expressed dissatisfaction with Hassell. When legal representation terminated, Bird had 21 months before the expiration of the statute of limitations on her personal injury claim. Reprinted courtesy of Renata L. Hoddinott, Haight Brown & Bonesteel LLP and David W. Evans, Haight Brown & Bonesteel LLP Mr. Evans may be contacted at devans@hbblaw.com Ms. Hoddinott may be contacted at rhoddinott@hbblaw.com Read the court decision
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Insuring Lease/Leaseback Projects

August 19, 2024 — David G. Jordan & Jeffrey J. Vita - Saxe Doernberger & Vita, P.C.
Overview Several states utilize a unique statutory mechanism to allow school districts to finance the construction of public-school facilities. This arrangement (known as a “lease-leaseback agreement”) allows a school district to lease property to a contractor/developer, who then constructs or renovates a school facility on the property. Once the work is completed, the contractor/developer leases the school building back to the school district. The school district then makes lease payments over time, often many years, which can be structured in various ways to spread out the cost of construction. The arrangement typically requires a site lease for the land leased to the contractor/developer, a facilities lease for the lease-back of the school building to the school district and a traditional construction agreement. In some ways, the arrangement resembles a Public-Private Partnership (PPP) whereby a public entity collaborates with a private entity for the purpose of financing and delivering a project traditionally provided solely by the public sector. Reprinted courtesy of David G. Jordan, Saxe Doernberger & Vita, P.C. and Jeffrey J. Vita, Saxe Doernberger & Vita, P.C. Mr. Jordan may be contacted at DJordan@sdvlaw.com Mr. Vita may be contacted at JVita@sdvlaw.com Read the court decision
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CAMBRIDGE MASSACHUSETTS BUILDING EXPERT DIRECTORY AND CAPABILITIES