Real Estate & Construction News Roundup (8/19/26) – Single-Family Housing Investors Worry, Confidence in Multifamily REITs and Construction Backlog Falls
September 08, 2026 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogIn our latest roundup, U.S. Chamber of Commerce creates Housing Advisory Council, a legal battle develops over new federal rules related to mortgage escrow accounts, hospitality dealmakers pursue ‘bigger, higher-conviction’ M&A, and more!
- In the wake of the 21st Century ROAD to Housing Act becoming law, the U.S. Chamber of Commerce has created a Housing Advisory Council with the goal of advancing market-driven policies that help increase housing supply and promote affordability. (Julie Strupp, Multifamily Dive)
- Investors in the single-family housing market are increasingly concerned about interest rates, rising insurance and home costs, and the ongoing war with Iran. (Diana Olick, CNBC)
- A legal battle is brewing over new federal rules related to accounts that hold money to pay homeowners’ property taxes and insurance payments. (Sarah Agostino, CNBC)
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Pillsbury's Construction & Real Estate Law Team
Micromobility in Smart Cities: Keeping the Wheels in Motion
May 26, 2026 —
James P. Bobotek - Gravel2Gavel Construction & Real Estate Law BlogMobility is the lifeblood of any city. How people are able to travel in, out and within a metropolitan area is vital to its citizens, businesses, supply chains and social services. And as U.S. cities have expanded in size and population density, the strategies for addressing mobility have evolved. Many have taken different approaches to public transit, and each city boasts a dense tapestry of roadways, walking paths and various parking options. But as cities continue to reexamine infrastructure strategies through smart city technology, a new field of transportation has emerged—micromobility.
Designed for short-distance travel using lightweight vehicles (bikes, e-bikes, e-scooters, etc.), the industry’s global net worth has grown exponentially in recent years to the tune of hundreds of billions, with one forecast predicting it could reach
$340 billion by 2030. Micromobility also finds itself at the forefront of various smart city technological improvements. Geofencing has been implemented in
U.S. cities to determine where micromobility vehicles can operate, control speed limits, and park utilizing the vehicles’ GPS location. Internet of Things (IoT) technologies (satellite-based location receivers, cloud communication, internet links, etc.) have
improved vehicle lifespans by keeping track of when vehicles require service and prevent vandalism and theft. Data collected from vehicles’ location tracking is routinely used for
urban planning and smart city development.
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James P. Bobotek, PillsburyMr. Bobotek may be contacted at
james.bobotek@pillsburylaw.com
Did You Know: Unique Legal Considerations for Animal Care Facilities
August 24, 2026 —
Hannah Skidmore - Construction ExecutiveAnimal care facilities are highly specialized environments that require expertise far beyond traditional commercial or even standard medical construction. Whether designing and building animal shelters, doggy daycares, veterinary clinics or full-service animal hospitals, these facilities operate under conditions that introduce unique challenges related to sanitation, durability, animal behavior and operational workflows.
Because of these complexities, projects that fail to account for animal care requirements adequately often encounter costly issues—many of which result in litigation. Below are real-world examples drawn from expert witness work, followed by proactive best practices construction professionals should apply to future animal care projects.
Reprinted courtesy of
Hannah Skidmore, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Risks of Using an AI Chatbot for Legal Advice: Lessons from United States v. Heppner
April 08, 2026 —
Payne & Fears LLPImagine that you are an executive (who is not a lawyer) and are concerned about what your company plans to do is legal. You could call your lawyer who might bill you for the call. Or, you can ask your AI chatbot, such as Claude or ChatGPT, about the legal risk. The chatbot will likely compliment you on the incisive question, provide you with highly confident answer (that may or may not be right) and will not bill you on an hourly basis.
That is essentially what financial services executive Bradley Heppner did. It did not end well. A federal court recently ruled that Heppner’s chats with the AI tool Claude were not protected by attorney-client privilege or the work-product doctrine. That means that the other side (in this case, the federal government) could get access to his chatbot prompts, uploads and responses, and learn a great deal about, for example, whether Heppner knew what he was doing was illegal.
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Payne & Fears LLP
Las Vegas Partner Jeffrey Saab and Team Leader D. Ryan Efros Secure a $0.00 Settlement on a Multimillion-Dollar Construction Defect Case!
April 14, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPPartner
Jeffrey Saab and Team Leader
D. Ryan Efros’ client was a construction supervisor on a palatial mansion. The homeowners claimed millions of dollars in damages and asserted the client was a general contractor (GC) and so responsible for the alleged defects. Jeff and Ryan took more than 15 depositions, reinforcing their trial strategy theme: that the client was not a GC, but Plaintiffs were. They secured significant concessions from Plaintiffs, pressed Plaintiffs’ own negligent construction choices, and made the risk of trying the case intolerable. On the eve of trial, Plaintiffs backed down, settling out Jeff and Ryan’s client for $0.00.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Trend Continues Where Unlicensed Contractors Have No Recourse
July 13, 2026 —
David Adelstein - Florida Construction Legal UpdatesThere’s been a recent trend in Florida case law that has figuratively “killed” unlicensed contractors. Here’s another one. The moral to this trend and case is simple: make sure you have the proper licenses prior to serving as a contractor under Florida law. Trying to be cute, as seemed to be the situation in this case with a creative argument, is not an argument that will carry the day and your resources will be devoted to being creative versus the ultimate merits of the dispute.
In Ramindesign, LLC v. Skarzynski, 2026 WL 1649571 (S.D.Fla. 2026) an owner of real property hired a company to design and construct a spec home on the property. The company and its owner were NOT licensed contractors. The contract stated the company was serving as a “spec developer” and referred to it as the contractor throughout the contract. Other than this, the contract was set up as a cost plus a fee.
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David Adelstein, Kirwin NorrisMr. Adelstein may be contacted at
dma@kirwinnorris.com
Celebrating 29 Years – Thank You for Your Continued Trust!
April 20, 2026 —
Dolores Montoya - Bremer Whyte Brown & O'Meara LLPFor 29 years, Bremer Whyte Brown & O’Meara, LLP has grown alongside the clients and communities we proudly serve.
What began as a single office in Orange County has evolved into a multi-state firm with 11 locations across five states. Today, we are proud to be supported by a dedicated team of more than 200 attorneys and over 400 employees who work every day to deliver exceptional service and results.
This milestone is not just about where we started; it’s about the people who have helped shape who we are today. Our continued growth reflects the strength of our relationships, the trust of our clients and partners, and the commitment of our team.
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Dolores Montoya, Bremer Whyte Brown & O'Meara LLP
Turnover Traps for Community Associations: Investigate First, Release Claims Later
April 14, 2026 —
Nicholas B. Vargo - Ball Janik LLPTurnover of a community association from developer control to owner control is a uniquely vulnerable moment. Developers are increasingly presenting Florida condominium and homeowners’ associations with “standard” settlement or release agreements at turnover, often being framed as routine steps to finalize the transition of control. In reality, these agreements can have sweeping consequences, including the release of construction-defect claims before the association has conducted any meaningful independent evaluation.
The developer has years of project knowledge and access to plans, subcontractors, and internal records. The newly elected board is just beginning to organize, obtain documents, and understand the property’s condition. Many defects, especially those involving roofing, waterproofing, windows, or structural components, are latent and not yet visible. Signing a release at this stage means the association is making a binding decision under conditions of uncertainty, without full information, to release all future potential claims.
Over the last few years, there has been a rise in reports of developers offering a packaged deal: they agree to complete certain repairs, often minor punch-list or cosmetic items, and to “forgive” an alleged financial deficit (often around $50,000) supposedly owed by the association from the developer-control period. In exchange, the association is asked to sign a broad release covering all claims, including known and unknown construction defects. To a new HOA board that received their community with limited operating and reserve funds, they are left with a difficult decision to either accept the developer’s offer or assess their owners to pay this alleged debt.
These agreements are occasionally presented through community management companies, which may describe them as “standard” or "routine.” Whether due to misunderstanding or influence from the developer, management companies can unintentionally reinforce the idea that signing is expected. Any recommendation provided to HOAs about whether to sign these releases could open community management to liability down the road. The best practice for both associations and community managers is to refer any agreements to be reviewed by general counsel for the association.
The following two case studies illustrate the real-world consequences:
Case Study One: A newly transitioned board relies on its management company to negotiate with the developer-builder to resolve irrigation issues, pond concerns, and signage deficiencies, along with forgiving an asserted financial shortfall. In exchange, the board signs a broad release covering all claims, including latent defects.
Within a year, several punch-list items remain incomplete, and more serious issues arise. When the association demands completion, the developer delays, prompting the association to seek advice on how to enforce the settlement agreement. The association hires counsel to hold the developer responsible for both the previously agreed-upon items and newly identified construction defects. However, when the association brings claims against the developer, the developer points to the release of all potential construction defects in the community. Thus, the only remaining remedy is limited to enforcement of the specific punch-list terms. The community, still relatively new, has no viable claims against the developer-builder for the construction defects. With warranties expired and the release, the association must fund repairs through special assessments, despite defects that would otherwise have been actionable.
Case Study Two: A community is presented with a similar agreement as above. The management company encourages execution, suggesting it is standard and even telling the board to “name your price.” The developer also pressures the newly elected board to sign.
Instead of signing, the board consults with their attorney. Counsel advises the board not to sign the release and recommends further investigation. Engineers are retained and identify early indicators of broader issues, including stucco cracking, water intrusion, and irrigation deficiencies. Based on this information, the association declines to sign the release. Subsequent evaluation reveals potentially significant construction-defect claims, allowing the community to pursue recovery that would have been lost under the proposed agreement.
These scenarios underscore a fundamental point: signing a release at turnover is not an administrative formality—it is a major legal decision. Board members act in a fiduciary capacity on behalf of their community, and their decisions can bind all current and future owners. At turnover, an association’s right is to investigate and pursue claims. Preserving that right until a full and independent evaluation is completed is not adversarial—it is responsible governance.
Accordingly, associations should retain independent evaluations of the property and consult qualified legal counsel before signing any “standard” agreements, especially ones involving a release of future claims.
Nicholas B. Vargo is a partner in Ball Janik LLP’s Construction Practice Group. He may be reached at nvargo@balljanik.com.
