A Green Light for Housing? What Executive Order 14394 Means for Your Next Project
May 26, 2026 —
Bennett Houck, Miranda Martinez & Byron Sarhangian - Snell & WilmerOn March 13, 2026, President Trump signed Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction” (the “Order”). The Order directs federal agencies to reduce regulatory burdens on residential development, streamline environmental permitting, and encourage state and local governments to adopt housing-friendly policies.
The Order includes several key provisions that developers and homebuilders should be aware of moving forward.
Key Provisions
The Order targets four main areas:
1. Federal Environmental Regulations
First, it directs the Secretary of the Army and Environmental Protection Agency (EPA) to revise permitting standards, including stormwater permits, wetlands permits under Section 404 of the Clean Water Act, and related construction-site requirements. The Order also targets energy-efficiency mandates for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) financed housing. For developers and homebuilders, these revisions could reduce project delays and compliance costs associated with stormwater management, wetlands mitigation, and energy-efficiency upgrades, expenses that often add significant time and cost to residential development projects.
Reprinted courtesy of
Bennett Houck, Snell & Wilmer,
Miranda Martinez, Snell & Wilmer and
Byron Sarhangian, Snell & Wilmer
Mr. Houck may be contacted at bhouck@swlaw.com
Ms. Martinez may be contacted at mimartinez@swlaw.com
Mr. Sarhangian may be contacted at bsarhangian@swlaw.com
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Data Center Construction: Contractors Must Step Up
May 26, 2026 —
Aarni Heiskanen - AEC BusinessI attended the
Datacenter Forum 2026 in Helsinki last week. Over 400 people packed the room. Walking out, I had one overriding thought: Is construction operating in a different century from the technology it is being asked to house?
Is Our Industry on Par?
Ciarán Forde, Senior Vice President at CTS Nordics, opened the forum with a statement that set the tone for everything that followed: data centers are no longer just a technical challenge; they are a national strategy. Before AI, Ciarán had worked in telecoms, where data centers were already complex. But now, he said flatly, everything has changed, and the industry must rethink everything.
The numbers behind the claim are staggering. Current AI data center racks run at 40 to 100 kW. In three years, 800 kW per rack is on the roadmap. And the development cycle for a new chip is roughly one year, which means deployments begin aging out almost as soon as they are commissioned.
Read the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Arizona Court Enters $323 Million Judgment Against ZOM Living Following Unanimous Jury Verdict
May 26, 2026 —
Gray Development GroupPHOENIX, May 19, 2026 /PRNewswire/ -- A Maricopa County court has entered a $323 million compensatory damages judgment in favor of Gray Development Group against ZOM Holding Inc., doing business as ZOM Living, following a 12-day trial, a unanimous jury verdict and post-trial proceedings related to a proposed business transaction.
The jury found ZOM liable on claims of breach of contract and breach of the implied covenant of good faith and fair dealing stemming from a proposed joint venture tied to a planned pipeline of luxury multifamily and commercial projects in Phoenix and Scottsdale.
The lawsuit centered on a 13-project, $1.4 billion development pipeline originated and planned by Gray Development Group over more than a decade. In 2019, Gray invited Florida-based ZOM to participate in a joint venture involving the completion of five projects, which would have marked ZOM's entry into the Arizona market.
According to court findings presented at trial, the companies entered into a mutual confidentiality and non-circumvention agreement before Gray shared extensive sensitive and proprietary information related to the projects, including planning, market analysis, costs, financial data, local business relationships and operational strategies developed by Gray over decades in Arizona.
Evidence presented during trial showed that over a 10-month period while under contract, ZOM made hundreds of requests for confidential project and market information before circumventing Gray and pursuing the projects independently, ultimately displacing Gray from projects it spent years planning and developing.
ZOM Living, headquartered in Orlando, develops multifamily and senior housing communities across the United States and operates regional offices in Boston, Dallas, Fort Lauderdale, Nashville, Phoenix, and Raleigh. ZOM is owned by Timeless Investments, the Amsterdam-based family office of Dutch businessman Hans van Veggel, which acquired the company in 1997.
About Gray Development Group
Gray Development Group was founded by architect Bruce Gray in 1991. The Phoenix-based company was the top-ranked multifamily developer in Arizona for more than a decade. The company designed and developed more than 15,000 apartment and condominium units throughout metropolitan Phoenix. Two Gray-designed developments — a Tempe midrise and a San Diego high-rise — received National Apartment Community of the Year awards.
Traub Lieberman Wins Affirmation of Judgment on Pleadings Before the Seventh Circuit
August 16, 2026 —
Dana A. Rice & Adam P. Joffe - Traub LiebermanTraub Lieberman Partners Dana Rice and Adam Joffe obtained affirmation of judgment from the Seventh Circuit Court of Appeals in favor of an Insurance Company. The Insurance Company filed suit seeking a declaration that it had no duty to defend or indemnify its Insured, a Roofing Contractor, in an underlying lawsuit. The Insurance Company issued a commercial general liability policy with a one-year policy term. The policy included an exclusion that barred coverage for any losses arising out of work the insured completed before the date the policy incepted.
Reprinted courtesy of
Dana A. Rice, Traub Lieberman and
Adam P. Joffe, Traub Lieberman
Mr. Rice may be contacted at drice@tlsslaw.com
Mr. Joffe may be contacted at ajoffe@tlsslaw.com
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Limitations of Liability Provisions in Construction Contracts: A Means to Manage Risk and Limit Financial Exposure
June 23, 2026 —
Ellen Chapelle, Richard Reizen, Hannah Batsche - Construction ExecutiveTaking a cue from architects and engineers, construction contractors have started inserting limitation of
liability clauses in their construction contracts to manage risk and limit financial exposure. This article will address the specific risks that can be limited through an LOL, tips for negotiating the LOL terms with reluctant owners to cover those specific risks, how to limit unintended consequences of an LOL (such as relieving an insurer of its obligations to cover certain losses), and approaches to setting the amount of the liability cap in the LOL.
Addressing Particular Risks
An LOL can address a wide range of risks, including:
- Damages for delay
- Liability for non-conforming or defective work
- Liability for third-party bodily injury or property damage
- Liability excluded by a general liability policy (e.g., pollution and cyber liability)
- Liability related to intellectual property
Reprinted courtesy of
Ellen Chapelle, Richard Reizen, Hannah Batsche, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Insured’s Bad Faith Claim Survives Summary Judgment
July 13, 2026 —
Tred R. Eyerly - Insurance Law HawaiiThe insurer’s motion for partial summary judgment to dispose of the insured’s bad faith claim was unsuccessful. Page v. State Farm Lloyds, 2026 U.S. Dist. LEXIS 102293 (E.D. Texas March 18, 2026).
Plaintiff insured alleged that hail and a windstorm caused damage to his property. The damage was reported to the defendant insurer. A claims adjuster inspected the property. Defendant then paid plaintiff $24,493.06, which was the total of the estimated damage minus depreciation and the deductible.
Read the full story...Reprinted courtesy of
Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
EPA Steps Back, Arizona Moves Forward
May 12, 2026 —
Patrick J. Paul, John Habib & Sukhmani K. Singh - Snell & WilmerIn a significant development for Arizona’s business community and environmental policymakers, the U.S. Environmental Protection Agency (EPA) has paused its planned reclassification of Maricopa County from “Moderate” to “Serious” ozone nonattainment status pursuant to the Clean Air Act’s National Ambient Air Quality Standards (NAAQS).
This decision marks a shift in federal air policy — one that recognizes the unique challenges faced by regions like metro Phoenix, where environmental conditions beyond local control are often key contributors to air quality readings.
The EPA’s move follows a series of meetings between EPA Administrator Lee Zeldin, Arizona elected officials, and business and civic leaders, including a recent roundtable in Phoenix convened by U.S. Senator Mark Kelly. In announcing the pause, Zeldin acknowledged the need for flexibility and fairness in the application of Clean Air Act standards, especially when emissions from other states, nations, and natural events significantly influence local air quality.
Reprinted courtesy of
Patrick J. Paul, Snell & Wilmer,
John Habib, Snell & Wilmer and
Sukhmani K. Singh, Snell & Wilmer
Mr. Paul may be contacted at ppaul@swlaw.com
Mr. Habib may be contacted at jhabib@swlaw.com
Ms. Singh may be contacted at ssingh@swlaw.com
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Managing Rising Costs and Shifting Legal Risk for Florida High-Rise and Condominium Projects
May 05, 2026 —
Stephen Hauptman - Ball Janik LLPFlorida's construction defect landscape is experiencing a major shift. The convergence of material and labor cost volatility, regulatory tightening, and increasingly complex litigation strategies is forcing associations, developers, and their counsel to rethink how they approach risk management and dispute resolution. For those managing large-scale condo and high-rise projects, the stakes have never been higher.
The Cost Volatility Trap
Construction material prices rose at a "staggering" 12.6% annualized rate during the first two months of 2026, according to
recent industry analysis. Tariff impacts are projected to lead to more increases of 5.4% to 6.8%, depending on property type. For associations facing construction defect claims, this volatility creates a cascading problem: repair scopes defined two years ago are now dramatically underpriced, and damage calculations that appeared reasonable at discovery are obsolete by the time of settlement.
Courts and mediators are increasingly scrutinizing how cost estimates were developed and whether they account for existing market circumstances. Associations must now commission updated repair assessments more frequently, a practice that increases investigation costs but strengthens the credibility of damage claims. Conversely, defendants are weaponizing cost inflation as a defense, arguing that claimed damages are speculative or inflated. The practical result: repair sequencing and phasing strategies have become critical litigation tools. Associations that can demonstrate a rational, cost-effective repair plan tied to current market data are more favorably placed in settlement negotiations.
Regulatory Pressure and Deliberate Timing
Florida's 2026 condo compliance regime has significantly changed the defect claims landscape. Elevated transparency requirements, stricter reserve funding mandates, and tightened building safety inspection protocols mean that associations now face dual pressures: Comply with new regulations while simultaneously handling construction defect exposure.
This regulatory environment is changing investigation and documentation strategy. Associations that delay defect investigation to avoid triggering reserve funding obligations or disclosure requirements are taking on considerable legal risk. Recent case law such as the Third District Court of Appeal's reaffirmation of Chapter 558's pre-suit mediation requirements, underscores Florida's intent to resolve disputes early. Associations that move deliberately and record carefully during the pre-suit phase gain leverage in mediation and reduce the risk of expensive litigation.
Timing also intersects with repair sequencing. Associations must now balance the urgency of compliance inspections against the strategic advantage of phased repairs. Some associations are using compliance deadlines as a forcing mechanism to accelerate settlement discussions, while others are sequencing repairs to demonstrate good-faith remediation efforts before litigation commences.
The Emerging Risk Transfer Challenge
As construction defect claims grow more complex and costly, the traditional risk transfer systems, such as design-build warranties, contractor bonds, and insurance, are proving inadequate. Developers and general contractors are increasingly shifting risk to subcontractors and material suppliers, fragmenting liability and complicating recovery efforts for associations. Permitting and approval friction is also creating new litigation pressure points. Delays in municipal approvals, changes to building code interpretations, and disputes over remedial work compliance continue to spawn collateral claims that go beyond the original defect. Associations must now anticipate not only defect liability but also regulatory compliance disputes with municipalities, creating a dual-front legal challenge.
For large communities, this means reconsidering the entire risk architecture. Insurance carriers are tightening coverage, and traditional indemnification chains are breaking down. Forward-thinking associations are engaging counsel earlier in the development process to negotiate clearer risk allocation provisions and more robust insurance requirements.
Taking a Data-Driven Approach
Managing rising costs and shifting legal risk in Florida's high-rise and condo market requires a more sophisticated, data-driven approach. Associations must commission frequent cost updates, move deliberately through pre-suit investigation and mediation, and challenge traditional assumptions about risk transfer. Developers and their counsel should view regulatory compliance not as a burden but as an opportunity to demonstrate good-faith risk management and strengthen settlement positioning.
The firms and associations that succeed in 2026 will be those that treat cost volatility, regulatory change, and litigation strategy not as separate challenges but as linked elements of a coherent risk management framework.
Stephen Hauptman is special counsel in Ball Janik LLP’s Fort Lauderdale office. He may be reached at shauptman@balljanik.com.