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ARTICLE · 19 APRIL 2024

Construction & Claims: March 2024

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Welcome to Construction & Claims, a periodic digest of the headlines, statutory and regulatory changes and court cases involving construction news, claims, bid protests, contract administration and payment-related disputes.

United StatesReal Estate and Construction
Nossaman LLP
Nossaman LLP
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Welcome toConstruction & Claims, a periodic digest of the headlines, statutory and regulatory changes and court cases involving construction news, claims, bid protests, contract administration and payment-related disputes.

San Francisco Voters Approve Measure C

On March 5, 2024, San Francisco voters approved Measure C, a proposed ordinance which aims to encourage the conversion of vacant office buildings to housing by exempting existing commercial buildings that have been converted to residential use from the City's real estate transfer tax. Measure C, which was proposed by San Franciso mayor London Breed, is the latest in a series of measures that aim to incentivize and promote commercial-to-residential conversions in California.

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Residential Vacancy Tax Preempted By State Law

A California Court of Appeal has invalidated San Francisco's Empty Homes Tax, ruling that the Ellis Act—which protects property owners' right to exit the rental market—also shields them from being forced to enter it through vacancy taxation. This landmark decision raises critical questions about the viability of similar residential vacancy taxes that other California municipalities have enacted or are considering as housing policy tools.
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More For The Missing-Middle: SB 1116 Expands Starter Home Revitalization Act (SB 684/1123)

California's Starter Home Revitalization Act receives significant enhancements through Senate Bill 1116, expanding site eligibility criteria, limiting local zoning restrictions, and invalidating certain private deed covenants to accelerate small-lot residential subdivisions. The legislation introduces streamlined 60-day ministerial approvals while establishing new rules for lot size averaging, height restrictions, and concurrent permit processing that fundamentally reshape the pathway for starter home devel
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Allen Matkins Leck Gamble Mallory & Natsis LLP
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New York City Rent Freeze Faces Legal Challenge As Court Considers Landlords’ Claims

Landlords of rent stabilized buildings in New York City have filed a lawsuit challenging the rent freeze passed by the Rent Guidelines Board, questioning the Board's independence and data integrity. With operating costs rising 31% over five years while the Board voted 7-1 for a freeze affecting 1 million apartments, the case raises critical questions about the balance between tenant protection and landlord viability.
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Hogan Lovells Cadwalader
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Understanding And Addressing Mechanic’s Liens On California Projects

Mechanic's liens pose significant challenges for property owners and developers in California construction projects, even when they have fulfilled their payment obligations. Understanding the strict procedural requirements, timing deadlines, and available remedies can help owners protect their projects from improper claims and efficiently resolve legitimate liens when they arise.
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Allen Matkins Leck Gamble Mallory & Natsis LLP
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Colorado’s New Mechanic’s Lien Law: Bigger Claims, Stronger Protections, And New Risks For Owners And Contractors

On April 6, 2026, the same day that the Colorado Supreme Court issued its decision in Ralph L. Wadsworth Construction Company, LLC v. Regional Rail Partners, Governor Jared Polis signed Senate Bill 26-074 into law. The legislation, which took effect on August 12, 2026, clarifies the amounts that may be included in mechanic’s liens and public construction payment claims, as well as the circumstances under which those claims may be considered excessive.
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Higgins, Hopkins, McLain & Roswell, LLC
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Texas Business Court Addresses Notice Requirements For Foreclosure Sales

The Texas Business Court examined whether foreclosure notices delivered via email and UPS next-day service satisfied contractual deed of trust provisions and Texas Property Code requirements that specified certified mail. The court also addressed whether notice sent to a designated agent constituted proper notice to the borrower when the borrower's name was omitted from the address line.
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New Florida Law Adds Licensing Risk To Contractor/Subcontractor Payment Disputes

Florida's new Section 489.1295 establishes licensing consequences for contractors who fail to timely pay subcontractors and suppliers, effective July 1, 2026. The statute creates disciplinary exposure for knowingly or willfully withholding payment, though it includes important exceptions for bona fide disputes and contractual payment terms. Contractors must now navigate potential license sanctions including fines up to $10,000, suspension, or revocation when payment disputes arise.
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Peckar & Abramson, P.C.
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