Restrictions on Condominium Conversions

PALO ALTO, CA—With the recession beginning to become a memory of the past, the demand for housing is on the rise, and with it is the explosive interest in the multifamily market. That is according to Michael C. Polentz, co-chair of the real estate and land use practice group at Manatt, Phelps & Phillips LLP, located in the Palo Alto office. And according to Payvand Abghari, an associate in the real estate and land use practice group at Manatt, Phelps & Phillips LLP, located in the Orange County, CA office, “as more and more Americans are choosing to marry later and postponing having children, the market has seen a significant increase in one- and two-person households and a resulting decline in the demand for the higher square footage single family residence among Millennials.”

Enter the condominium: low-to-moderately priced housing in urban areas, where the average price of a home is out of reach for many, and where homeowners can build equity while still enjoying the luxury and convenience of on-site amenities (for a pro rata share in maintenance costs), they say. In the exclusive column below, the pair looks at condo demand, restrictive covenants and more.