Lenders are often unaware of the development status of the projects they fund and they may be the last to know when a project is in trouble. When it becomes necessary for lenders to commence resolution procedures, it is imperative for them to understand all applicable regulatory requirements, which include critical permit expiration dates and how that could result in the termination of continuing development rights. Since all developments require a variety of local, state, and federal agency approvals, it is essential for lenders and bonding companies to have a comprehensive understanding of this process in order to preserve the value of their loan collateral.

We provide the following services in order to accomplish lender goals:

  • Develop written status reports for use by lenders in analyzing their loan or insurance exposure.
  • Develop a written marketing survey of surrounding competitor developments to determine current market conditions and site values.
  • Develop programs to assist in the management of a project during foreclosure in order to maintain the highest market values for the lenders.
  • Evaluate unfinished, abandoned projects.
  • Develop a detailed cost analysis to complete and produce a program of implementation with overview tracking schedules.
  • Evaluate actual work performed on a project compared to the total funds dispersed in order to identify the potential of lender construction claims and the possibility of pay application fraud.

Stephen Gunn managed 206 development permits in Prince George’s County over the past 10 years. These projects were guaranteed with $52.7 million in security bonds and letters of credit. He structured successful surety reductions and obtained final surety bond releases for $33.0+ million in the same time period. 

“Over the past eight years I have witnessed Mr. Stephen Gunn’s expertise in making projects cost-efficient. He sought out and implemented substantial cost savings on every project that was under his management while implementing quality engineering efforts. I would suggest that the savings in development costs versus his management fees during this eight year period exceeded a 5:1 ratio. That is a very special manager.”
— Idress Hawarry, Hillis-Carnes, Engineering Associates, Inc.