Master Planned Communities

The Master Planned Community and Condominium Practice Group of Armbrust & Brown, L.L.P. has broad experience in advising developers as to the governance structure of their master planned communities and preparing governance documents which have been customized to address the unique nature of each project and the developer's development plan.

Crafting the Governance Structure

Our attorneys work closely with the client's development team to craft solutions to the complicated issues inherent in master planned community governance, including:

• community administration and governance;
• maintenance and preservation of common areas and amenities; and
• development of appropriate community standards for maintenance and architectural control which recognize and balance the need for developers to address both market realities with customer desires, while at the same time reserving to the developer the necessary flexibility to address changes in the marketplace and community.

Drafting the Documents

Once the community's governance structure has been determined, our attorneys will prepare the project's governing document suite. These documents include the master covenant or declaration of covenants, conditions, and restrictions, design guidelines, formation documents for the community association.

Assistance with Sales and Marketing

Although the principal goal of community governance documents is to provide a framework for maintenance administration of the project, we recognize that these documents have implications that extend beyond the confines of the community association. To that end, we will work with the developer's sales and marketing team marketing staff to ensure that are well versed in the requirements of the governing documents and the obligations of the various parties. This ensures that they are prepared to accurately represent the community and respond to customer inquiries concerning community governance, and mitigates potential risks to the developer.

Advice on Operational Matters

Our commitment to clients does not end when the sales process begins. Rather, we are available at all times to address the day-to-day operational issues that arise as the community and its association begin to take shape. We can help developers and associations avert potential liability throughout the development and sale period on issues relating to association operations, including:

• obligations of developer appointees on the association's board of directors;
• development and enforcement of mechanisms for architectural control and adopting of design guidelines;
• budgetary issues, including expenditures, budgeting, and assessments;
• maintenance standards for common areas and community facilities;
• insurance matters;
• adoption and enforcement of covenants and rules;
• association management; and
• transition of the association to owner control.

Counsel to the Association

We are available to give presentations to developers, sales staff and association operations personnel on all matters related to community governance and association operations, as well as to provide counsel to the association in the drafting of association service contracts and dealings with lenders, insurance agents, local governments, and others to ensure that the association is informed and prepared both during the period of developer control and after the transition to owner control.

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Condominiums

The Master Planned Community and Condominium Practice Group of Armbrust & Brown, L.L.P. has advised numerous condominium developers in the preparation of condominium governance documents and administration of the community. Our experience spans the entire spectrum of condominium development, from modest two-unit residential projects, to 400+ unit high-rise mixed-use communities including hotels, residences and a variety of commercial uses, and includes both new construction and condominium conversion developments.

Legal Compliance

We provide counsel and assistance to condominium developers to ensure full compliance with state condominium statutes, as well as to address key structural and governance matters, including:

• integration of and relationships among various uses;
• defining unit boundaries;
• assignment and definition of parking, storage, and loading areas;
• negotiation and drafting of necessary easements and licenses;
• association administration and operations;
• obligations of developer appointees on the association's board of directors;
• development and enforcement of mechanisms for architectural control and adopting of design guidelines;
• budgetary issues, including expenditures, budgeting, and assessments;
• maintenance standards for common areas and community facilities;
• insurance matters;
• adoption and enforcement of covenants and rules;
• association management; and
• transition of the association to owner control

We also advise condominium developers on structural considerations relating to the project's differing uses, as well as on sales and marketing issues, disclosure obligations, association and community operation, and all other developmental issues to ensure that each is addressed appropriate in the condominium and association governance documents.

Documentation

We customize the governance document suite for each condominium projects to address the unique needs and issues of the project. This includes the declaration of condominium regime, the certificate of formation, bylaws, rules and policies of the condominium association, as well as the purchase and sale agreement and the disclosure package as required by state law.

Assistance with Sales and Marketing

Although the principal goal of condominium governance documents is to provide a framework for maintenance administration of the project, we recognize that these documents have implications that extend beyond the confines of the community association. To that end, we will work with the developer's sales and marketing team marketing staff to ensure that are well versed in the requirements of the condominium governance documents and the obligations of the various parties. This ensures that they are prepared to accurately represent the community and respond to customer inquiries concerning community governance, and mitigates potential risks to the developer.

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FHA Registration & Regulatory Compliance

The Master Planned Community and Condominium Practice Group of Armbrust & Brown, L.L.P. has significant experience in dealing with state and federal regulation of land sales, condominiums, and timeshare and other fractional interest programs. We are available to advise clients as to compliance with such regulations and to craft cost-effective solutions tailored to the client's needs.

Regulatory Compliance

We work with developers of condominiums and master planned communities throughout the United States to craft a sales and regulatory compliance strategy that ensures the broadest marketing flexibility while minimizing regulatory constraints. We are available to:

• assess whether a project can avail itself of any applicable exemptions from the registration requirements of the Interstate Land Sales Full Disclosure Act;
• assist in the preparation of disclosure documents, sales documents, and other submittals to register with HUD's Office of Interstate Land Sales Registration;
• review advertising and marketing materials and provide appropriate disclaimers to comply with state and federal law and avoid developer liability; and
• provide training to the marketing and sales team regarding continuing obligations to maintain compliance and avoid unintentionally triggering the jurisdiction of states and foreign countries in which the project is not qualified

FHA Condominium Project Approval

Our developer clients are increasingly turning to FHA's mortgage financing programs as a means to provide the most attractive rates and terms for condominium projects which meet FHA's eligibility criteria. For condominium projects, this requires submittal and approval of the project by FHA. We are experienced in both preparing the necessary documents to submit our clients' condominium projects for FHA project approval and liaising with FHA official to ensure a smooth and rapid approval process. Additionally, we are often called upon to review the governance documents and structure of existing condominium projects to determine whether they will meet the criteria necessary for FHA project approval. In cases where we find that an existing project is not FHA compliant, we have had significant success in both amending the project's governance structure and documents as necessary to achieve compliance and receiving FHA approval for the project after amendment.

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