At the 505 residential condominium project at 505 West 47th Street in Hell's Kitchen, more than 50 percent of the buyers of units have asked in federal court for their deposits back, according to a December 1, 2009 article by Sarah Ryley in therealdeal.com.
The article said that Matthew Glazer, spokesman for the New York State Attorney General's office said that 410 disputes have been filed this year but it only provided information under a Freedom of Information Law request on 123 disputes. The article estimate that most of the disputes were in 20 buildings.
Between 100 and 150 escrow disputes were filed with the AG office in each of the first three quarters of this year, according to the article, but "only 10 were filed in October and the first half of November," adding that "the number of people actually filing claims to break contracts have waned in recent months."
The article said that "at least 131 disputes that The Real Deal found on units worth a combined $132.2 million in 12 buildings" hinged primarily on the interpretation of the Interstate Land Sales Full Disclosure Act (ILSA) that requires developers who have "divided land into 100 or more parcels to register a property report with the U. S. Department of Housing and Urban Development (HUD)" and provide copies to buyers before the signing of contracts.
The article quoted Lew Futterman, co-founder of Uptown Partners, the developer of 5th on the Park in Harlem, that "90 percent of developers in New York never even knew ILSA existed," adding that "there is yet to be a case in this jurisdiction confirming the application ILSA in New York."
Many developers of buildings larger than 100 units are still relying on the "100-lot exemption," arguing that they qualify for an exemption because fewer than 100 units were sold before the building was complete, or that they did not need to go through ILSA registration until after their first 100 units were sold.
The article noted that "at least 123 out of 409 units (30 percent)" at 20 Pine Street have some type of claim pending, 7 of 19 units (37 percent) at 22 Renwick Street in SoHo, 11 out of 51 units (22 percent) at the Clement Clarke Condominium at 140 West 22nd Street in Chelsea, and at least 37 out of 289 units (13 percent) at the Rushmore at 80 Riverside Boulevard.
The article said that Matthew Glazer, spokesman for the New York State Attorney General's office said that 410 disputes have been filed this year but it only provided information under a Freedom of Information Law request on 123 disputes. The article estimate that most of the disputes were in 20 buildings.
Between 100 and 150 escrow disputes were filed with the AG office in each of the first three quarters of this year, according to the article, but "only 10 were filed in October and the first half of November," adding that "the number of people actually filing claims to break contracts have waned in recent months."
The article said that "at least 131 disputes that The Real Deal found on units worth a combined $132.2 million in 12 buildings" hinged primarily on the interpretation of the Interstate Land Sales Full Disclosure Act (ILSA) that requires developers who have "divided land into 100 or more parcels to register a property report with the U. S. Department of Housing and Urban Development (HUD)" and provide copies to buyers before the signing of contracts.
The article quoted Lew Futterman, co-founder of Uptown Partners, the developer of 5th on the Park in Harlem, that "90 percent of developers in New York never even knew ILSA existed," adding that "there is yet to be a case in this jurisdiction confirming the application ILSA in New York."
Many developers of buildings larger than 100 units are still relying on the "100-lot exemption," arguing that they qualify for an exemption because fewer than 100 units were sold before the building was complete, or that they did not need to go through ILSA registration until after their first 100 units were sold.
The article noted that "at least 123 out of 409 units (30 percent)" at 20 Pine Street have some type of claim pending, 7 of 19 units (37 percent) at 22 Renwick Street in SoHo, 11 out of 51 units (22 percent) at the Clement Clarke Condominium at 140 West 22nd Street in Chelsea, and at least 37 out of 289 units (13 percent) at the Rushmore at 80 Riverside Boulevard.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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