Housing Market Tracker - Homebuilder Legal Woes

On Top of Everything, Homebuilders Face Legal Problems Too

N.J. High Court Sides With Toll Brothers In Road Improvements Case. “The Supreme Court of New Jersey has ruled in favor of Toll Brothers Inc. (TOL), allowing for a new calculation of how much the home builder is obligated to pay for road improvements at a development in Burlington, South Jersey, its law firm said Tuesday… The ruling maintains a developer can't be forced to pay more than its share of the cost of improvements and can seek to change its obligation if the size of a project changes.” (Philadelphia Business Journal, Apr. 1st)

Dry Stormwater Pond Frustrates Henlopen Lading Residents. “Delaware: People who live in Henlopen Landing say the waterfront views they were promised… have been reduced to mud. They want a pond once home to ducks, fish and other wildlife restored, and they say developer Bridle Ridge Properties LLC and builder Ryan Homes (NVR) agreed to do so in July. Bridle Ridge contends the pond was never intended to be continuously filled with water, keeping it filled caused runoff and sediment problems in the rest of the development [and] was contingent on a revised stormwater management plan for the project and approval of 120 townhouses not originally planned.” (Cape Gazette, Apr. 1st)

Spyglass Residents Seek Age-Restriction Change. “Massachusetts: Residents at Spyglass Landing, a 55-and-over only development in Marshfield… hope to overturn… the age restrictions on that development... While zoning laws state that guests under 55 are allowed to visit for six months, residents want the rules changed so that only one person in the household need be 55 and people under 18 may not live there for more than six months out of any nine-month period… Residents say [that] in a handful of cases, Pulte Homes (PHM), which sold the condominiums, wrongly advertised the homes as needing only one resident over 55.” (Wicked Local, Apr. 1st)

Toll Brothers Case Costly For Bethel. “Connecticut: Regarding Toll Brothers' proposal on Reservoir Street in Bethel: The land on Reservoir Street was purchased in the 1960s and offered to Bethel for free to be used as open space. However, the administration at the time rejected the gift and collected tax revenue on the property for over 40 years, while the 22-acre parcel was left as open building lots. In 2001, Toll Brothers purchased the land. It is now 2008 and Toll Brothers is finally coming to the end of a six-year lawsuit, declared as frivolous by the courts and creating massive legal fees for both Bethel and Toll Brothers.”(News Times, Apr. 1st)

Ryland Homes Agrees To Settlement. “A settlement was announced on Monday in a class-action lawsuit against Ryland Homes (RYL). Officials with Ryland Homes said they agreed to pay $3.25 million to resolve water damage claims following the 2004 hurricanes that hit Central Florida. Almost $2 million of the settlement will go directly to homeowners in the lawsuit.” (WESH TV, Apr. 1st)

Manteca Builders Settle Lawsuits Against City. California: “In 2006, the council voted to raise the government building facility fee from $350 per home to $4,000 in 2007, $4,300 in 2008 and $4,700 in 2009… The first fee increase in 20 years… caused several builders to sue the city… Builders in the Tesoro subdivision - Standard Pacific Corp. (SPF), Woodside Ponte Verde Inc. and Woodside Tierra d'Or Inc. - reached a settlement Monday with the city [which] binds the builders to the outcome of a separate lawsuit [to be heard this summer]. In exchange, the city will agree to defer payment of 80% of the building fees due for a total of three years.” (Record Net, Apr. 1st)

Mayor To Give City Address Today. Maryland: “Some Salisbury citizens are still roiled over the 12% tax increase in this year's budget. The property tax rate increased $0.09, bringing the tax rate to about $0.81.2 per $100 of assessed value of all real property. Additionally, the future of a $200 million plan to redevelop the old Salisbury Mall is in flux. The project's residential builder, K. Hovnanian Homes (HOV) is suing the developer, Salisbury Mall Associates, to void its contract.” (Delmarva Now, Mar. 31st)

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