AB333: Stalled Subdivision And Condo Projects Get Help As New State Law Extends Maps for 2 Years
8/6/2009 - Andrew J. Junius, Jay Drake
Throughout the Bay Area and state, subdivisions and condominium projects have been delayed during the housing slump due to developers’ difficulty obtaining construction financing. Many such projects have stalled in the middle of the mapping and entitlement process, before the project’s map has been recorded. Delayed maps are at risk of expiration, with the potential loss of vital project approvals and permits. In recognition of these critical issues, the California legislature passed a new law to enable developers to extend the life of tentative maps and related state agency approvals until the credit markets thaw and construction financing may be…
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LLCs and Real Estate Development: Substantial Legal Protection for Developers?
7/22/2009 - Kevin Rose, 55
Real estate development ventures often begin with the formation of a limited liability company (“LLC”). This entity structure has the benefit of protecting its members from personal liability “under any judgment of a court, or in any other manner, for any debt, obligation, or liability of the limited liability company, whether that liability or obligation arises in contract, tort, or otherwise, solely by reason of being a member of the limited liability company.” California Corporations Code (Corp. Code) § 17101.
Unfortunately this liability shield is not an iron-clad protection from liability. As the country has struggled through the current economic…
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