New rules promulgated under Ohio’s Public Construction Reform (the “Reform”) have been released by the Joint Committee on Agency Rule Review. The new rules include: (1) Rules for Prequalification of Prospective Bidders on Subcontracts; (2) Rules for Best Value Selection of Construction Manager and Design-Build firms; and (3) Rules for the Form
Commencing January 1, 2012, legal, real estate and insurance professionals will be required to advise clients of KRS 381.280 which creates a forfeiture of property rights for the taking of the life of a party in interest to the same prior to such parties executing deeds and other documents in question. It works like this:
The Ohio Legislature passed House Bill 153 on May 5, 2011. H.B. 153—a budget bill—which includes significant changes for Ohio’s public construction projects. Some changes will become effective on September 28, 2011, but others are forecast to become effective in early 2012. As such, we will have to wait a while longer to experience the full effect
The Illinois General Assembly has recently amended the Landlord and Tenant Act to add a new requirement for landlords: when a unit changes over to a new tenant the locks must be changed or rekeyed. This applies to dwelling units only. The Act is not applicable for dwelling units in a building of 4
The Ohio Department of Taxation has been enforcing the obligation to pay sales taxes by contractors and property managers for services received when the invoices do not separately identify sales tax as a specific line item. Look at all of the invoices received for any services contracted for and make sure that sales taxes are
The Situation:
Certain covered dwellings that are not designed or constructed in strict compliance with the Fair Housing Act are increasingly subject to suit, with strict liability befalling developers, designers, and contractors alike. In fact, contractors are strictly liable for FHA violations even if they correctly follow a designer’s noncompliant drawings. Further, courts across America are consistently holding that potentially liable parties cannot sue each other for alleged contribution for a FHA defect, which enhances exposure for those sued directly by FHA protected class members. Needless to say, the financial risk of FHA noncompliance is grave.
Continue Reading Necessity for Fair Housing Act Compliance Amplified by Recent Court Rulings
The Situation:
Certain covered dwellings that are not designed or constructed in strict compliance with the Fair Housing Act are increasingly subject to suit, with strict liability befalling developers, designers, and contractors alike. In fact, contractors are strictly liable for FHA violations even if they correctly follow a designer’s noncompliant drawings. Further, courts across America are consistently holding that potentially liable parties cannot sue each other for alleged contribution toward an FHA defect, which enhances exposure for those sued directly by FHA protected class members. Needless to say, the financial risk for FHA noncompliance is grave.
FHA Coverage:
The FHA applies strict liability to developers, designers, and contractors who participate in the design or construction of a covered dwelling. Under the FHA, each participant in the design and construction of covered dwellings has an independent obligation to comply with the FHA. The term "covered dwelling" is construed broadly and applies to points of access in popular mixed-use commercial, retail, and residential properties.
Those held liable for FHA non-compliance risk more than a "slap on the wrist." Rather, FHA damages include (1) the cost to rebuild a covered dwelling; and (2) the prevailing party’s attorney’s fees. Thus, developers, architects, engineers, and contractors must take caution and ensure their own compliance with the FHA.
Continue Reading Necessity for Fair Housing Act Compliance Amplified by Recent Court Rulings
“strategic default” “Federal Housing Administration” “F.H.A. Reform Act”
Continue Reading “Strategic Default” Becoming a Popular Exit Strategy
Ohio House Bill 292, which prohibits the future creation of transfer fee covenants, was signed into law on June 14, 2010 and will become effective on September 13, 2010. Transfer fee covenants in effect prior to September 13, 2010 are not affected by the new law.
Transfer fee covenants create revenue streams for real estate
Thank you to our friend Drew Stacey of First Place Bank for reminding us of the extension of the The First-Time Homebuyer Credit for the benefit of Military families for an additional year through May 1, 2011. According to the IRS:
You bought your main home in the United States after 2008 and before May 1, 2010 (before July 1, 2010, if you entered into a written binding contract before May 1, 2010), and
You (and your spouse if married) did not own any other main home during the 3-year period ending on the date of purchase.
No credit is allowed for a home bought after April 30, 2010 (after June 30, 2010, if you entered into a written binding contract before May 1, 2010). However, if you (or your spouse) are on qualified official extended duty outside the United States for at least 90 days after 2008 and before May 1, 2010, you have an extra year to buy a home and claim the credit. In other words, you must buy the home before May 1, 2011 (before July 1, 2011, if you entered into a written binding contract before May 1, 2011)."