Vested Reprieve

Vested Reprieve for Developers

~Erika V. Harrison~ May 26, 2010~

On March 19, 2010, Governor Mark Sanford provided a reprieve for developers when he signed House Bill 4445 (“H4445”), a joint resolution suspending the two year limit of the Vested Rights Act until December 31, 2012. (attached to this e-mail is a copy)

Prior to this joint resolution, an approval, in the City of Charleston for any development project was vested for two years. Pursuant to the City of Charleston Zoning Ordinance Article 9 Part 5 Section 54-962, the applicant could have a maximum of five extensions after the initial vested two year period of the approval.

Now, retroactively, H445 provides that any approval that is valid at any point between January 1, 2008 through December 31, 2012 the running of the period of the development approval and any associated vested right is suspended during the period beginning January 1, 2008 and ending December 31, 2012. Seemingly, H4445 applies to extensions that have been granted beyond the two year Vested Rights Act. Thus, if a developer’s fifth extension is about to expire, H4445 has provided an automatic extension until December 31, 2012.

H4445’s lauded benefit is the costs saving measures it provides. Since submitting an application is no longer required, the developer saves on application fees. The seconds cost saving benefit is the possible lost of the initial investment in the designs and plans for a development especially, if a developer’s fifth extension was to expire.

As the real estate market slowly turns the corner, H4445 comes as welcomed legislation by giving developers a little more breathing room
H4445 Legislation

Making Home Affordable

Recently, I gave a seminar on the Federal Governments Making Home Affordable program.  Attached you will find the presentation Making Home Affordable

Mixed Use Zoning Ordinance

Enhancing affordable housing and reducing stress on homeowners and small developers.  The City of Charleston is adopting a New Mixed Use Zoning Ordinance. This ordinance promotes affordable and re-adapative uses for individual homeowners seeking to generate income from their property to reduce the financial stress and obligations of mortgages.  Also, it provides an opportunity  for small to large developers to promote community through projects that focus on income diversity.  The challenge, however, is and always will be finding financing for the new homeowner.