Recent changes in California laws should give a boost to the state's sagging condominium industry, according to John F. Nicholson, partner in the real estate law firm of Cox, Castle & Nicholson.
One of the major changes, according to Nicholson, has been a reduction of financial requirements for phased condo developments. Whereas old regulations required that the entire project be bonded, from now on only the common areas need to be bonded in the initial phase. In addition, in a phased development bonds for units need not be posted until the builder is ready to sell these units.
Other changes in the condo law allow a developer greater flexibility in the redesign of units or common areas in future phases. "As a result," said Nicholson, "the development team can take advantage of sales track records to add recreational facilities or otherwise meet consumer demands to pump new life into a phased project."