In September, a revised RE 618H form was published by the DRE. This revision allows for budget assessment changes in the Public Report.
With the new process, we simply need to file an amendment application and $600 fee, then the DRE will approve use of the RE 618H form to be used with the existing report. The result is that our clients can then continue to open escrows without waiting for the budget approval process. This process could take 60-90 days to be reviewed and approved.
Industry representatives have requested a form revision because, as currently revised, the form requires the Subdivider to provide it to buyers who are currently in escrow, which may create confusion.
As currently revised, the Subdidvider is required to provide the form to buyers who are currently in escrow. Representatives have requested that another revision be made, as this may create confusion. The form stipulates a 90-day period to obtain new budget approval, which could cause concerns with those buyers already in escrow.
IF the only change in the offering is the budget change, then a better approach may be to follow the philosophy that there is no material change until the budget review has been completed and the “material change” is then confirmed. Upon receipt of DRE’s issued RE660C the Amendment filing could proceed under an expedited 10-day amendment filing.
