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 existing homeowners who were very happy that our client was going to save the subdivision. Being ca...

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 the CCRs allow for this deferment of assessmen...

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 under which the public report will be issued. Example: "In the ma...

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 in one lot, it can "front load" the HOA dues program, causing assess...

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 filing. Each Bond is ac...

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 shelter-in-place orders are having on the housing market. Their prelimina...

On August 30th, a new balcony bill went into legislation. Unlike its predecessor, Senate Bill 726, Senate Bill 326 focuses primarily on condominiums and has a more in-depth inspection process. With this new bill, community associations are required to inspect balconies and other Exterior Elevated Elements (EEE), such as stairways, decks, and railings. Bill 326 requires that all new construction...
Sands through the hour glass

This is by far the most-frequent question we encounter in our day-to-day business.  And the good news is, that we can usually provide a fairly good estimate of the time period required for your particular project!  The Department of Real Estate is governed by specific timeframes in which they must respond to an application filing.  The regulatory timeframes, coupled with detailed information about...