From left: Fifth on the Park and One Hunters Point

In one of the nation’s most closely watched Interstate Land Sales Full Disclosure Act cases, a federal circuit court yesterday overturned a controversial lower court ruling involving two New York condominiums, forcing the release of millions of dollars in escrow funds and potentially ending the debate over whether the federal statute applies in New York City real estate.

The U.S. District Court previously ruled that Harlem’s Fifth on the Park condo and One Hunters Point condo in Long Island City were exempt from ILSA laws because even though the condos were larger than the federally mandated 100-unit limit, the developers sold less than 100 units when they got the temporary certificate of occupancy from the New York City Department of Buildings. [more]

From the May issue: Two federal court decisions siding with developers in Harlem and Long Island City have thrown a wrench into the legal strategy a growing number of New York condo buyers have pursued to get out of their contracts. The rulings, which involve the Interstate Land Sales Full Disclosure Act, commonly referred to as ILSA, have also divided the legal community on how hundreds of other similar cases will be decided in New York. ILSA, a consumer protection law first passed in 1968, requires developers of new condos or time-shares of at least 99 units to register their buildings with the U.S. Department of Housing and Urban Development. But for years, the law went unused and unnoticed here in New York, until hundreds, if not thousands, of condo buyers in the city invoked it to get their deposits back after the 2008 market crash. [more]

The New York Police Department’s 108th precinct has handed over 15 of its roughly 55 Long Island City parking spots to residents of One Hunters Point, the new 12-story condo tower at 549 Borden Avenue, who have complained for months that the cops were taking up more than their fair share of parking. The condo owners, who also recently succeeded in a campaign to lessen the volume of idling Long Island Railroad train engines nearby, petitioned and lobbied Community Board 2 to get the street parking issue on the table. The NYPD hasn’t exactly surrendered the spots, though. — the city has merely agreed to “kicked the can down the street a little,” according to Joseph Conley, chair of Community Board 2. Now, the bright red “no standing” signs that irked those living at One Hunters Point will be located on the west side of Fifth Street.

At peak, 51 percent of the buyers at the 505 at 505 West 47th Street had cases in federal court to rescind their contracts.

From the December issue: At peak, buyers of 55 out of 108 units (51 percent) at the 505 at 505 West 47th Street had cases in federal court to rescind their contracts, which were worth a combined $43.1 million. Six have since dropped their cases, and three have closed on their units (one received a 3.5 percent discount). The plaintiffs claimed Parkview, headed by Ian Reisner and Mati Weiderpass, failed to provide the property report required under the Interstate Land Sales Full Disclosure Act. After Parkview realized its mistake, the buyers claim it filed an amendment to the offering plan in an attempt to exempt itself from the law by removing eight units and combining another two, so the initial offering plan would only be comprised of 99 units. Developers across the city are fighting to keep buyers in contracts — but 20 condos and co-ops are facing a particularly tough time. Click here to read about the rest.

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