A Comprehensive Guide To Subdivision Public Reports
If you are developing a subdivision in the state of California, you’ll need to obtain a subdivision public report before the units in your subdivision can be offered for sale. These reports are used to notify the state of your intent to sell subdivided lands and provide consumers with important information on the units offered […]
Re-Phasing Your Subdivision
Remember that old saying about what happens when you ASSUME? Well… it’s still true. We have a client who bought close to 100 lots on a take-down schedule last year in an older planned development that had been stalled out. It was a “broken” project, with 50 lots in Phase 1, with a half dozen […]
Waiver of Assessments for Common Areas or Maintenance Areas
DRE Regulations allow for HOA assessments to be waived for HOA-maintained improvements that are not complete. Regulation 2792.16c, in a nutshell, allows a complete deferment of costs associated with improvements that are not being maintained by the HOA. It’s actually illegal for the HOA to charge assessments for expenses that they do not incur. IF […]
It’s All in the Name
Do you develop your project in one company/entity, and then sell homes from another entity? If so, this article is for you! When the Department of Real Estate (DRE) processes an application for a public report, the application is anticipated to be in the name of the Subdivider. “Subdivider,” in this sense, represents the name […]
The Wisdom of Creating Multiple Street Lots
Selling homes in phases? Consider structuring your next subdivision map to include multiple road lots. Asphalt streets are definitely one of the most expensive items that HOA’s maintain. Breaking the road lot into multiple lots to match your sales plan can save thousands. Think of it this way; if you have all of the streets […]
Releasing DRE Bonds
Filing bonds on subdivisions are one of those requirements that you can’t often avoid, without delaying getting your project to market. Subdividers under a Final Public Report must be diligent to ensure compliance with the DRE process when releasing bonds. An early or “illegal” release creates a material change to your development, necessitating an Amended Public Report […]
Housing Is Looking Up
Last night, before going to bed, I saw the S&P Homebuilders Index (XHB) was up over 8% in after-hours trading. This morning, I checked and the Index was holding up over 4%! Why the jump? That’s after the NAHB and Wells Fargo released worse than expected housing data showing the effects of the […]
Phasing in a Market Downturn
When times are good – phasing your marketing program can be a headache. When times are slow, however, Phasing can be a lifesaver! I’ve always thought of marketing Phasing like an insurance policy: it’s a necessity that’s good to have in place just in case you need it later on. We’ve been receiving phone calls […]
Completion Bonding & the Approval Process
Any time that the common area improvements will not be completed in a development at the time of the first sale closing, a financial security must be posted to guarantee the eventual completion of the improvement. The financial security amount is 120% of the estimate cost to complete. While most development planning involves the completion […]
Fiduciary Obligations
According to Wikipedia, a fiduciary “is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person.” In the case of a Subdivider/Developer/Builder, the relationship of trust may include proper […]
