Page 31 - NY Cooperator Expo April 2019

future, and the Illinois state Supreme Court the horizon.” will have to provide some clarity.” Thomas O. Moriarty, Principal at law New Jersey office of law firm Hill Wallack firm Moriarty Troyer & Malloy LLC in Braintree, Massachusetts “I think that there will be litigation over trative regulations that will have a long-term election of association governing boards and short-term rentals. Condominiums have and far-reaching effect on community asso- been attempting to limit the presence of ciations in the state. The department plans to rental services such as Airbnb in their asso- ciations. The proliferation of such services ship between developers and associations by new regulations.” and the frequency of association efforts to (among other things) defining more clearly prevent it is likely to lead to disputes. It is the developer’s financial obligations during impossible to frame a specific issue, because the development period. The current regu- the approaches taken by boards to address lation obligating developers to contribute to working on for co-op and condo clients, as the problem—as well as the language of the the expenses of an association in proportion well as individuals in those residences, that amendments adopted as a result—vary from to the ‘benefits derived’ from those expenses may resonate going forward: association to association. But I think that the is expected to be replaced by a more objective industry should expect that challenges are on and enforceable formula, as well as a man- Ronald L. Perl, Partner at the Princeton, “The New Jersey Department of Commu- nity Affairs (DCA) is working on adminis- revamp regulations governing the relation- date that the developer funding be ongoing during the project. “In addition, the DCA is working on regulations to implement the Radburn Act, which contains requirements relating to the bylaw amendments. “2019 should be a busy year as both devel- opers and associations come to grips with the Steven R. Wagner, Partner at the New York City law firm Wagner Berkow “Here are a few things that we’ve been • Buyouts: holders of unsold shares are regu- larly making offers. • Sale of development rights: I have one cli- ent who is selling, another who thinks the developer did something sneaky, and my own co-op is being approached to sell its developments. • Sponsor building construction issues: leaks, leaks, and more leaks on new con- struction. • Smoke-free buildings: policy statements required earlier this year have inspired some associations to review the issue. • Amenities: new construction buildings have it all, and co-ops and condos play catch up. • Defamation: nasty words are becoming the norm. • Election challenges: Related to the former. I had two cases of ballot-stuffing this year, which is more than ever before.” The Market Brad Robbins, Founder and Principal of RNP Real Estate Group in Chicago “The market is cooling off from the white- hot pace we’ve seen over the past couple of years. While it’s true that more seven-figure homes are being sold than ever before, the reality is that there are too many of this type of home relative to the amount of buyers out there willing to spend that kind of money right now. “Much of the recent explosive growth has been due to a combination of abundant new construction opportunities (which inherent- ly push price points up in the neighborhoods in which they’re built) and lack of typical resale homes on the market. Now you have tariffs driving up the cost of building, interest rates increasing, and local land values rising astronomically, all combining into a perfect storm. “So what does this mean for Chicago? I think that it’s going to be a very busy winter and, with the coming rate increases by the Federal Reserve, you’ll see a good chunk of ISTOCKPHOTO.COM NEW YORK HILTON MIDTOWN — THURSDAY, APRIL 11, 9–4:30 FREE REGISTRATION: COOPEXPO.COM THE COOPERATOR EXPO 2019 WHERE BUILDINGS MEET SERVICES MEET MORE THAN 300 EXHIBITORS IN ONE DAY, UNDER ONE ROOF. (Wear comfortable shoes.) COOPERATOR.COM THE COOPERATOR — APRIL 2019 31 continued on page 47