Some distressed common interest communities have been the direct result of overbuilding and failed developments. Others simply have a broken business model, or there may be allegations of wasting of assets, fraud or oppression. A court-appointed receiver may be necessary in order to protect the interests of the lender, and often for the developer. CIA’s Third-Party Group has the asset/property management, brokerage, legal and development experience to act as receiver.
In addition, CIA’s Third-Party Group also provides litigation support and expert testimony. When serving as an expert, CIA’s reports and testimony are expected to withstand Daubert challenges. This includes litigation support for evaluating the acts and omissions of developers, particularly the failure: to 1) properly determine an operating budget (such as an attempt to secure sales by understating the reserve and operating costs); and 2) fund and maintain an adequate reserve account.