Fairfield Connecticut Building Expert Directory

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
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Construction Termination Issues Part 4: What to Do When They Want to Fire You, the Architect or Engineer

August 14, 2023 — Melissa Dewey Brumback - Construction Law in North Carolina
What if you are told that your own design services are no longer needed or welcome on a project? Can they do that? What happens then? How do you protect yourself. As you probably realize, while rare, the Owner does have the legal right to fire you “for cause”. See B101 §9.4, as long as the Owner gives you 7 days written notice. In fact, the Owner can terminate your contract for any reason at all (maybe you root for the wrong basketball team?) by terminating you for convenience (i.e., for any reason whatsoever) under B101 §9.5, again with 7 days written notice. As with Contractor terminations, the money you get when fired for convenience is much greater than when you are terminated for cause. If you are fired “for convenience”, you get paid for all services previously rendered as well as termination expenses, including anticipated profit on the value of services not performed. See B101 §9.7. Read the court decision
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Reprinted courtesy of Melissa Dewey Brumback, Ragsdale Liggett
Ms. Brumback may be contacted at mbrumback@rl-law.com

Limitations: There is a Point of No Return

September 06, 2023 — Amy Anderson - ConsensusDocs
After nearly any event that causes inefficiency, delay, or extra cost on a project, there are some things you should always do: review the contract and document the inefficiency, delay, or cost. However, how you document the particular issue likely changes depending on what is in your contract, your position on the project, and the outcome you hope to reach. In reviewing the inefficiency, delay, or cost, one thing to always consider is how long you have to actually recoup damages you may incur if they were caused by another party on the project. In every jurisdiction (state or federal), there is likely to be some outer limit to when you can bring litigation or arbitration against an opposing party to recover damages another party causes to you. This is generally called a statute of limitations or statute of repose, although it goes by other names depending on your state. The length of time will be specific to the locality. For example, in Texas, you have four years to bring a breach of contract claim but only two years to bring a negligence claim. Whether you fall under the two year or four year period may be highly fact intensive, depending on your claims. Do you have a contract directly with the party that is at fault? Is the claim based on your contract or some tort outside of the contract? Read the court decision
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Reprinted courtesy of Amy Anderson, Jones Walker LLP (ConsensusDocs)
Ms. Anderson may be contacted at aanderson@joneswalker.com

Case-Shiller Redo Shows Less Severe U.S. Home-Price Slump

September 03, 2014 — Lorraine Woellert – Bloomberg
The collapse in U.S. home prices that stoked the worst recession since the Great Depression wasn’t quite as severe as initially estimated, according to data from S&P/Case-Shiller. Property values nationally fell 26 percent from the February 2007 peak to the December 2011 trough, not 34 percent as previously reported, revised data showed last week. The index will now be issued monthly rather than quarterly. The change is the result of CoreLogic Inc. (CLGX)’s $6 million purchase of the S&P/Case-Shiller index from technology company Fiserv Inc. in March 2013. Case-Shiller has spent more than a year retrofitting its model with CoreLogic’s bigger, higher-quality data set, leading to a change in how the index looks. Read the court decision
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Reprinted courtesy of Lorraine Woellert, Bloomberg
Ms. Woellert may be contacted at lwoellert@bloomberg.net

Arizona Court Determines Statute of Limitations Applicable to a Claim for Reformation of a Deed of Trust (and a Related Claim for Declaratory Judgment)

October 16, 2018 — Kevin J. Parker - Snell & Wilmer Real Estate Litigation Blog
In a recent Arizona Court of Appeals case, Deutsche Bank National Trust Co. v. Pheasant Grove LLC, 798 Ariz. Adv. Rep. 15 (August 23, 2018), the Court of Appeals addressed the question of what statute of limitations was applicable to a declaratory judgment claim. In that case, a bank’s deed of trust inadvertently omitted one of the lots that was supposed to secure that bank’s loan. The deed of trust should have covered lots 8 and 9, but by its terms covered only lot 8. A different bank subsequently recorded a deed of trust that encumbered lot 9. In connection with the second bank’s foreclosure of its deed of trust, the first bank sought reformation and a declaratory judgment with regard to its deed of trust, seeking to have that deed of trust cover both lots 8 and 9, as intended. The trial court determined that the first bank’s reformation claim was filed too late, and also determined that the declaratory judgment claim was filed too late, beyond the applicable statute of limitations. Read the court decision
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Reprinted courtesy of Kevin J. Parker, Snell & Wilmer
Mr. Parker may be contacted at kparker@swlaw.com

Illinois Insureds are Contesting One Carrier's Universal Denial to Covid-19 Losses

May 11, 2020 — Anna M. Perry - Saxe Doernberger & Vita
In response to the large number of COVID-19-related losses that businesses are experiencing, insurers have begun issuing statements informing their insureds of whether their policies will respond to the losses, and if so, what coverage will be afforded. Insurers cannot take a “one-size-fits-all” approach to the COVID-19 losses because, besides factual differences, the losses are occurring within all fifty states which means 50 different state law interpretations will apply. Recently, on March 27, 2020, a number of restaurants and movie theaters located in and around Chicago (the “Insureds”) filed a declaratory judgement action, titled Big Onion Tavern Group, LLC et al. v. Society Insurance, Inc., against their property insurance carrier, Society Insurance, Inc. (“Society”), seeking coverage for business interruption resulting from the shutdown order issued by the governor of Illinois. The suit alleges that Society improperly denied their business interruption claims by using a boiler plate denial. The denial issued by Society is allegedly used for all COVID-19 losses regardless of the applicable jurisdiction’s interpretation of the policy language and the specific coverage purchased by the insured. Further, in its denial, Society takes the position that any loss related to a government-issued closure order is uncovered, even though the Insureds specifically purchased business interruption coverage and their policies did not contain an exclusion for losses caused by viruses. Read the court decision
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Reprinted courtesy of Anna M. Perry, Saxe Doernberger & Vita
Ms. Perry may be contacted at amp@sdvlaw.com

Contract, Breach of Contract, and Material Breach of Contract

July 05, 2023 — Wendy Rosenstein - Ahlers Cressman & Sleight PLLC
At its most basic level, a contract is an agreement to make a trade. Parties to a contract agree to perform a specific action on the condition that the other side also performs a specific action. For instance, you and a Girl Scout could create a contract in which the Girl Scout agrees to deliver one box of cookies and you agree to pay her $6.00. In this case, both you and the Girl Scout have obligations under the contract. If the Girl Scout failed to send you the cookies, what do you do? You send her a note, in writing, telling her that you expect the cookies (or assurance that you will get the cookies) within a certain amount of time—this is notice and the opportunity to cure. Most contracts have a “notice and opportunity to cure” provision, which essentially says that one side must give the other side an opportunity to fix breaches before canceling the contract. Once a party receives a notice to cure, they must either rectify the problem or offer adequate assurances that they will fix the problem. Generally, the party has only a short period of time to address the breach. Read the court decision
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Reprinted courtesy of Wendy Rosenstein, Ahlers Cressman & Sleight PLLC

Avoiding Wage Claims in California Construction

November 25, 2024 — Garret Murai - California Construction Law Blog
For both private works projects and state and local public works projects in California, higher-tiered contractors can find themselves opening up their wallets if their lower-tiered subcontractors fail to pay their workers. And if you think this is just another one of those crazy California things, think again. Higher-tiered parties on federal public works projects can also be asked to open up their wallets if their lower-tiered subcontractors stiff their workers. While we’re coming upon the season of giving, here’s a Scrooge-like guide on things you can do to avoid finding yourselves on the hook for your lower-tiered subcontractor’s even more Scrooge-like failure to pay their workers. Read the court decision
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Reprinted courtesy of Garret Murai, Nomos LLP
Mr. Murai may be contacted at gmurai@nomosllp.com

FAIRFIELD CONNECTICUT BUILDING EXPERT DIRECTORY AND CAPABILITIES