Last April, I wrote a blog about Buildings In Litigation, that offered insight on specific properties affected by issues that primarily pertain to construction defects. As noted in my previous article; Developers are on the hook for construction defects for the first 10 years after completion of a new construction project. It is quite common that Home Owner Board of Directors will vote to pursue investigations on problems that their buildings may be having. These issues often include a various array of problems that may include plumbing, mechanical features such as elevators, structural leaks, and more. Once identified, the problems become an insurance claim.  Whether or not the developer or the subcontractor’s insurance policy completely covers the problems is the key.  This is  where a resolution can take an extended period of time.

It is common that building litigation issues can take over a year or longer to resolve as attorneys representing all sides go back and forth before ultimately resolving the issue.

There have been some significant updates since my last article was published back in April.  Some of it is actually good news as a few of the previous communities that were listed in April’s article have come to a resolution.

Downtown Communities That Have Recently Resolved HOA Litigation in 2012

• Discovery by Bosa Development
• Park Place by Bosa Development

Obtaining financing in buildings in litigation has proven to be challenging.  In fact, only a hand full of lenders have found success in actually funding loans in these buildings.  Alex Scoma is a Licenced Broker with Samuel Scott Financial Group, who monitors the Downtown market closely.  Alex is reputable lender who has successfully funded loans for clients who have purchased properties in buildings in litigation.   The following is a updated list of Buildings in Litigation provided by Alex Scoma at Samuel Scott Financial Group:

Updated Downtown Developments In Litigation- November 2012

Development                                           Address

1. 350 West Ash                              350 West Ash St.
2. 7  on Kettner                                702-714 Kettner Blvd
3. Acqua Vista                                  425 W. Beech
4. ARIA                                              1441 9th Ave.
5. Aperture                                      1494 Union St.
6. Cortez Blu                                    801 Ash St.
7. Crown Bay                                   350 K St.
8. Diamond Terrace                     427 9th
9. Element                                        550 15th St.
10. La Vita                           300 W. Beech & 1580 Union  TH:1535-1585 State St.
11. The Lofts @777 6th                  777 6TH Ave
12. Nexus                                            875 G St
13. Palermo                                       1501 Front St
14. Park Terrace                              206 Park Blvd
15. Pinnacle                                       550 Front St
16. Porto Siena                                 1601 India
17. The Grande North                    1205 Pacific Coast Hwy
18. The Mills                                      1643 & 1642 7th
19. Union Square                             1480 & 1400 Broadway & 1465 C St.

The specifics of the scope of litigation will vary in each development above.  Progress of each individual settlement will vary.  I have been hearing some rumours lately of other buildings that may be added to this list, so stay tuned for my next update.

Feel free to contact me with questions, particularly if you are considering listing our buying a home in any of the developments listed above.

For more information, contact:  Brent Cole  (858) 531-8785