Can builders change plans in Master planned communites?

[Alex_angel]

http://www.mlive.com/business/ambizdaily/bizjournals/index.ssf?/base/abd-3/1186987210193320.xml

The link above is an article on how some builders are changing floor plans mid community in Sacramento. Can builders finishing out communites in Master planned communities like 4S and Del Sur just change plans?

Can they sell off the rest to another builder who decides to put in condos where SFR were supposed to go?

I’d be pissed to high hell if I bought in a SFR community and the builder changes their mind and decides to put in condos instead.

What limits are there to what a builder can do in a Master Planned? Can the buyers as for something in writing from the builder that they will stick to plan? What rights does the buyer have if a builder changes their mind?

[surveyor]

limits

Yes, there are general limits as to what they can do. The type of change you describe is drastic and would require a re-review of the plans (changing from SFR to condos). There is already a specific density requirement for the project and as long as they stay within those density requirements, they can make changes, but SFRs to condos is a major change.

For builders like 4S Ranch and Del Sur, they are already almost finished. They do not have any new plans at the tentative map stage (which is where they could negotiate changing SFRs to condos). The only possible change they could do (which is what some builders have done) is build smaller and more affordable houses in order to meet demand at that price range. Still, changing in midstream like this requires a lot out of a builder, their construction crews, and design.

[surveyor]

limits

Yes, there are general limits as to what they can do. The type of change you describe is drastic and would require a re-review of the plans (changing from SFR to condos). There is already a specific density requirement for the project and as long as they stay within those density requirements, they can make changes, but SFRs to condos is a major change.

For builders like 4S Ranch and Del Sur, they are already almost finished. They do not have any new plans at the tentative map stage (which is where they could negotiate changing SFRs to condos). The only possible change they could do (which is what some builders have done) is build smaller and more affordable houses in order to meet demand at that price range. Still, changing in midstream like this requires a lot out of a builder, their construction crews, and design.

[surveyor]

limits

Yes, there are general limits as to what they can do. The type of change you describe is drastic and would require a re-review of the plans (changing from SFR to condos). There is already a specific density requirement for the project and as long as they stay within those density requirements, they can make changes, but SFRs to condos is a major change.

For builders like 4S Ranch and Del Sur, they are already almost finished. They do not have any new plans at the tentative map stage (which is where they could negotiate changing SFRs to condos). The only possible change they could do (which is what some builders have done) is build smaller and more affordable houses in order to meet demand at that price range. Still, changing in midstream like this requires a lot out of a builder, their construction crews, and design.

[kicksavedave]

Changing floor plans that are offered are things the builders can do relatively easily, most sales contracts will state that the builder has the right to change things like that.

But going from SFR’s to Condo’s requires zoning and/or permit/govt approvals, which are much harder to come by. In general, when a builder does a “planned community” they are required to stick to their plan without MAJOR overhauls like changing from SFRs to condos. If a piece of land is not zoned for multi family dwellings, the buillder cannot simply change his/her mind and put them up… it’s a massive process to make that change.

[kicksavedave]

Changing floor plans that are offered are things the builders can do relatively easily, most sales contracts will state that the builder has the right to change things like that.

But going from SFR’s to Condo’s requires zoning and/or permit/govt approvals, which are much harder to come by. In general, when a builder does a “planned community” they are required to stick to their plan without MAJOR overhauls like changing from SFRs to condos. If a piece of land is not zoned for multi family dwellings, the buillder cannot simply change his/her mind and put them up… it’s a massive process to make that change.

[kicksavedave]

Changing floor plans that are offered are things the builders can do relatively easily, most sales contracts will state that the builder has the right to change things like that.

But going from SFR’s to Condo’s requires zoning and/or permit/govt approvals, which are much harder to come by. In general, when a builder does a “planned community” they are required to stick to their plan without MAJOR overhauls like changing from SFRs to condos. If a piece of land is not zoned for multi family dwellings, the buillder cannot simply change his/her mind and put them up… it’s a massive process to make that change.

[golfproz]

Yes they can change. It happened near me in the last bust. They were building a tract of 3000sf~4000sf Mcmansion (those qualified as mansions in the late 80s). When the bust hit and those monsters stopped selling they started building 900sf~1600sf crackerboxes. There were blocks where the first few homes were big monsters and then the rest were little tiny dollhouses. Of course there were pissed off homeowners and lawsuits, but that did not stop the builder. This was in a master planned community with strict HOAs.

They also built a big condo complex in the same area and sales were so bad that after a year they ended up turning it into an apartment complex. Angry homeowners nearly strung up the city council but it did not change the outcome.

[golfproz]

Yes they can change. It happened near me in the last bust. They were building a tract of 3000sf~4000sf Mcmansion (those qualified as mansions in the late 80s). When the bust hit and those monsters stopped selling they started building 900sf~1600sf crackerboxes. There were blocks where the first few homes were big monsters and then the rest were little tiny dollhouses. Of course there were pissed off homeowners and lawsuits, but that did not stop the builder. This was in a master planned community with strict HOAs.

They also built a big condo complex in the same area and sales were so bad that after a year they ended up turning it into an apartment complex. Angry homeowners nearly strung up the city council but it did not change the outcome.

[golfproz]

Yes they can change. It happened near me in the last bust. They were building a tract of 3000sf~4000sf Mcmansion (those qualified as mansions in the late 80s). When the bust hit and those monsters stopped selling they started building 900sf~1600sf crackerboxes. There were blocks where the first few homes were big monsters and then the rest were little tiny dollhouses. Of course there were pissed off homeowners and lawsuits, but that did not stop the builder. This was in a master planned community with strict HOAs.

They also built a big condo complex in the same area and sales were so bad that after a year they ended up turning it into an apartment complex. Angry homeowners nearly strung up the city council but it did not change the outcome.

[betting on fall]

So long as the number of expected residents won’t increase, the developer can probably make the changes.
However, a career ago I was somewhat involved in development from the government side. When times were bad, many developers wanted to change plans they had in place to build higher density stuff that now wasn’t so profitable. City planners generally said no to those requests, since higher density housing- where there is infrastructure in place to support it- is thought to be good thing.

[betting on fall]

So long as the number of expected residents won’t increase, the developer can probably make the changes.
However, a career ago I was somewhat involved in development from the government side. When times were bad, many developers wanted to change plans they had in place to build higher density stuff that now wasn’t so profitable. City planners generally said no to those requests, since higher density housing- where there is infrastructure in place to support it- is thought to be good thing.

[betting on fall]

So long as the number of expected residents won’t increase, the developer can probably make the changes.
However, a career ago I was somewhat involved in development from the government side. When times were bad, many developers wanted to change plans they had in place to build higher density stuff that now wasn’t so profitable. City planners generally said no to those requests, since higher density housing- where there is infrastructure in place to support it- is thought to be good thing.

[Alex_angel]

golfproz, would you mind sharing which part of SD this is?
Thanks

[Alex_angel]

golfproz, would you mind sharing which part of SD this is?
Thanks

[Author]

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