May

Federal/State Disaster Recovery Centers Open Today In New HampshireOfficials from New Hampshire Homeland Security and Emergency Management (HSEM) and the Federal Emergency Management Agency (FEMA) opened Disaster Recovery Centers to assist individuals and business owners affected by the severe storms and flooding that began April 15 May 1, 2007
Insurance A Business-BreakerJohn Brennan and Daye Moynan have had enough. After struggling for 20 months to rebuild their business and their lives in the aftermath of Hurricane Katrina, the owners of a chic Old Town art mall are selling out and leaving the state. While they were able to withstand the terrible damage the hurricane inflicted on their beloved Maggie May’s gallery and their home in neighboring Waveland, Brennan and Moynan can’t rise above its effect on their bottom line: a $10,000-a-year jump in the cost of insuring their business. They are not alone. May 1, 2007
Real Estate Glossary: Negative AmortizationA loan feature in which the borrower pays back less than the full amount of interest owed each month. The shorted amount is then added to the loan’s balance. May 1, 2007
CO: Group Issues Affordable Housing ChallengeA group of affordable housing advocates issued a challenge Monday night to elected officials from throughout the valley: Work together to find a solution to the region’s lack of affordable housing. May 1, 2007
VA: Affordable Housing Shortage Threatens Communities Throughout RegionThe NIMBY, or “not in my backyard,” syndrome used to come into play when the likes of jails, halfway houses, mental-health facilities or chemical plants were posited as potential neighbors. It’s not hard to see why these undesirables - with their implicit threat to property values, quality of life, and health and safety - reign as perennial triggers in the battle to preserve neighborhoods. But now, affordable housing is assuming top position on the ranks of undesirables, or so it seems from some local developments. May 1, 2007
Baltimore: What Affordable Housing Crisis?The Planning Commission earlier this month unanimously high-fived the bill, aimed at making Baltimore City housing more attractive for middle and low-income residents. It would force any developers receiving city subsidies to devote 20 percent of their projects’ housing units to people whose income falls within certain parameters. After a year and a half developers whose projects would not move forward without changes to zoning laws would have to designate 10 percent of their units affordable. Eventually it could apply to all developers if the city decides too much of the city’s housing stock is out of reach of the targeted demographic. May 1, 2007
NJ: Not All Mayors Back Affordable Housing TransfersWilliam Dressel, executive director of the New Jersey League of Municipalities, recently wrote to Gov. Corzine, attacking the New Jersey Regional Coalition. His aim was to defend his organization’s stubborn support for regional contribution agreements, or RCAs, a discredited policy that promotes and reinforces racial and economic segregation, and to discredit our coalition through misrepresentations and distortion of our statements, positions and actions. May 1, 2007
Premier Shores Up Housing PolicyIn Alberta’s booming economy, far too many people are being forced to make painful housing choices — like a young couple forced to bunk in with friends after their rent suddenly jumped by $200. Premier Ed Stelmach’s $285-million boost for new housing and rental assistance in the 2007-08 budget — a 50-per-cent increase in housing dollars over last year — will help, as will new regulations to protect tenants from sudden big rent increases. May 1, 2007
PA: State House Committee Set to Hold Poconos Hearing on Predatory LendingLocal prosecutors, lending industry representatives, consumer advocates and state officials are among those scheduled to testify in Shawnee on Friday at a state hearing on predatory home lending. The state House Commerce Committee will hold the second of three planned hearings around the state at the Shawnee Inn, off River Road in Smithfield Township, beginning at 10 a.m. The committee is considering six bills aimed at protecting borrowers in the home-buying process and reducing home foreclosures. May 1, 2007
FL: House Passes Affordable Housing Bill, Sends to SenateFlorida House members sent an affordable housing measure to the Senate today in what backers say is a meaningful step forward in the state’s quest to meet the needs of low- and moderate-income residents. May 1, 2007
FL: Investors Gain from ‘Affordable’ HousingA downtown Miami high-rise that received $1.3 million in public funds from Miami and Miami-Dade County for supplying affordable housing sold dozens of units to investors who made a quick profit in resales, a draft city audit has found. May 1, 2007
HUD Honors Bowling Green Kentucky with Award for Increasing Affordable HousingThe U.S. Department of Housing and Urban Development today presented the City of Bowling Green with its Robert L. Woodson, Jr. Award for reducing burdensome regulations that unnecessarily inflate the cost of housing. HUD Secretary Alphonso Jackson recognized Bowling Green as a national model for reducing unnecessary, outdated, and duplicative regulations that put the cost of housing out of reach of police officers, firefighters, teachers, returning veterans, and many other hardworking Americans. May 2, 2007
Road Home Going Broke, Blanco Aide SaysIf the Road Home keeps paying out homeowner grants at the current rate — and all the remaining applicants qualify for compensation — the state aid program could be more than $3 billion short, state officials said. May 2, 2007
President Declares Major Disaster for TexasThe head of the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today announced that federal disaster aid has been made available for the state of Texas to supplement state and local recovery efforts in the area struck by severe storms and tornadoes during the period of April 21-24, 2007. May 2, 2007
Teacher’s Montgomery Trade-OffThere are a few eternal truths about life in the Washington area. Among them: Touring the monuments is much cooler, in all respects, after sunset; the Orange Line is experiencing slight delays; and you have to pay a lot for a home, especially if you want to live in one of the closer-in suburbs. May 2, 2007
Placing Bets on a Strong Manhattan MarketSince the commercial market decline of the late 1980s and early 1990s, which had a disastrous financial impact on some Manhattan developers, there has been almost no speculative development, in which a builder constructs an office building without having committed tenants. May 2, 2007
A Warning on Risk in Commercial MortgagesSpurred by the collapse of the subprime mortgage market, the leading bond rating agencies are beginning to crack down on what they see as risky lending practices in commercial real estate. May 2, 2007
After Working the Streets, Bunk Beds and a MassThese worshipers — Princess, Kelly, Michelle, Skye, Gianni and Terry, all teenagers or in their early 20s — are slender, stylish and soft of voice, and will smack anyone who questions their femininity or asserts that, biologically, they are still males. Transgender is a term they will tolerate, and the place they call home, Father Braxton says, is probably the only homeless shelter in New York specifically for transgender youth. May 2, 2007
Slump Isn’t Slowing Vacation Home SalesSales of second homes purchased as investment properties plunged in 2006, but demand for vacation homes remained strong, a real estate trade group reported Monday. May 2, 2007
Chicago: Rx for Affordable Housing AdvancesMayor Daley’s plan to use enhanced developer incentives, not blanket set-asides, to solve Chicago’s affordable housing crisis was advanced by a joint City Council committee Tuesday after a marathon meeting that dissolved into name-calling. May 2, 2007
N.O. Area Fails Housing Rights Tests too OftenThe late Thurgood Marshall, a former civil-rights lawyer and U.S. Supreme Court justice, made this statement in 1934: “The only way to get equality is for two people to get the same thing at the same time at the same place.” Seventy-three years later, the Greater New Orleans Fair Housing Action Center has found that, when a black person and a white person apply for the same apartment on the same day in metropolitan New Orleans, they are not always treated equally. May 2, 2007
Housing Report Demands More Affordable Living OptionsThe new council, scheduled to come into being in a few months, will bring together multiple Cowichan communities, including Ladysmith. With real estate prices soaring and high-end development continuing to boom, the lack of cheap rental units and homes for sale has become a hot topic throughout B.C. May 2, 2007
Partnership to Develop Affordable Green Housing for Former Prisoners in NYCThe Fortune Society, a prisoner re-entry agency, has partnered with Jonathan Rose Cos., to develop an environmentally friendly affordable housing project on a vacant parcel in New York City. As co-developer, Jonathan Rose Cos. has guided the architect selection, and will help to create a financing strategy, apply to funding programs, and manage the project’s construction. May 2, 2007
Boiling Water for Drinking: Right Here in ChicagoMartha Castillion, a Chicago resident for nearly 20 years and grandmother of a 2-year-old toddler, boils her water for drinking and cooking. May 2, 2007
Some in Subprime Industry Adopt Principles for BorrowersSeveral major participants in the home mortgage market have agreed to adopt a set of principles for dealing with homeowners with high-priced loans who face possible foreclosure, the chairman of the Senate Banking Committee said Wednesday. May 3, 2007
FEMA Offers Tips To Protect Property And Reduce Flood RiskAnother active hurricane season is nearly upon us, and the Federal Emergency Management Agency (FEMA) urges consumers to prepare now and protect their home and property against flood damage caused by heavy rains, severe storms and tropical systems. Just two inches of floodwater can destroy drywall, flooring, furniture and electrical systems-and replacement or repair costs can easily soar to thousands of dollars. May 3, 2007
Small Unpaid Bills put Residents at RiskHomeowners who owe just a few hundred dollars in municipal debts - including Baltimore City water bills - often are hit with thousands of dollars in fees from private debt collectors and can lose their homes if they don’t pay up. May 3, 2007
Borrowers in Trouble May Get Some ReliefSeveral major participants in the home mortgage market have agreed to adopt a set of principles for dealing with homeowners with high-priced loans who face possible foreclosure, the chairman of the Senate Banking Committee said Wednesday. May 3, 2007
Home Loan Demand Ticks Up A BitMortgage applications rose for a second week as demand for home purchase loans outweighed slower refinancing activity, an industry trade group said Wednesday. May 3, 2007
Tax Cuts Weighed To Retain ResidentsThe D.C. Council is considering substantial breaks on inheritance and real estate taxes, and the plans could cost the city almost $100 million in revenue over the next four years, officials said yesterday. May 3, 2007
Choosing A Fire ExtinguisherQ: We used our fireplace to save energy last winter, and we are thinking of getting a corn stove. Our concern though is fire safety. What type of fire extinguisher should we get? How and when should we use it? May 3, 2007
Foreclosure Activity Hot in State, Sizzling in Inland EmpireForeclosure activity soared an annual 172.8 percent in California during the first quarter, but the numbers reflect an uneven pattern of pain across the state, a market tracker said Wednesday. May 3, 2007
Federal Aid Programs For Kansas Disaster RecoveryAs state and local first responders, volunteers and search and rescue crews arrived on scene to sort through the devastation of the May 4 severe storms and deadly tornadoes, the Department of Homeland Securitys Federal Emergency Management Agency (FEMA) was deploying critical emergency equipment, food supplies and disaster assistance personnel to support the recovery effort in Kansas. May 7, 2007
HUD—Rochester, N.Y.: Fulton Avenue Becomes Home to 77 New Affordable UnitsU.S. Department of Housing and Urban Development Deputy Secretary Roy A. Bernardi today formally dedicated the second phase of Carlson Commons, bringing 77 new affordable homes to Rochester’s Plymouth-Exchange neighborhood. HUD’s $3.2 million investment is part of the largest revitalization of a housing project in the city in more than three decades. May 7, 2007
For Katrina Victims, Financial Pain EnduresVallery’s plight is emblematic of the financial calamities that continue to afflict residents of Louisiana and Mississippi as they struggle to recover from the worst natural disaster in U.S. history. Debt is swelling and credit is suffering as residents deplete savings and take out loans to meet expenses. People of all income levels are affected, but the most desperate are those who had the least before Katrina hit. May 7, 2007
To Err Is Human. That’s One Reason for Title Insurance.We bought our home in 1989. We have refinanced twice, and we didn’t receive a new title insurance policy either time. Is a new policy necessary when one refinances? Also, in reading our policy, it appears that there are a lot of exclusions. Is it possible to obtain a new title policy from another company now? May 7, 2007
A Chill Comes Over CreditBad news has been emerging from the subprime market every week, as the trade press reports that one lender after another in trouble. As of mid-April, National Mortgage News, a trade publication, counted 32 subprime lenders that had become “defunct” since early 2006. May 7, 2007
The Truth About Negative AmortizationAbout a year ago, we bought our home with the help of an adjustable-rate mortgage at 1.95 percent interest. We knew it would adjust after six months to 4.95 percent. That was quite a jump in our monthly payment, but we handled it. However, when we received the lender’s Internal Revenue Service 1098 year-end report, we learned our mortgage balance had grown by about $7,800. When I called the lender, I was told the increase was “unpaid interest.” What’s that? May 7, 2007
Other Reasons Borrowers FalterFor housing economists, the best gauge of whether borrowers will repay their mortgages is their job status. When unemployment jumps, foreclosures are not far behind. But according to a recent study by Freddie Mac, the government-sponsored mortgage company, even people with good jobs and good credit are struggling to keep pace with their mortgages. May 7, 2007
Multi-Generations Living TogetherThe need for care seems to be a primary driver for multiple generations living together. When an elderly parent needs assistance, it is generally less expensive to have a child as a caregiver versus the cost of an assisted living facility. Sometimes it is the grandchildren who need to be looked after while their parents are working or attending school. This arrangement will generally reduce the need for expensive childcare and allow for the positive influence of a loving grandparent. May 7, 2007
Judgment Sought in Affordable Housing BattleFor the first time, Telluride’s landmark rent-control ruling is being used in a legal challenge to Aspen and Pitkin County’s affordable housing system. May 7, 2007
Affordable Housing: People InvestmentA recent report told us that King County has 68,390 millionaire households — sad to say, that number is almost exactly where we are in terms of our shortage of affordable or low-income housing units (costing $625 a month or less). After what seemed like an interminable run of bad news for low-income and affordable housing in our city, we were heartened to hear that Seattle is taking a step in the right direction in the matter. May 7, 2007
HUD: Kansas Tornado Victims—Temporary Housing and Foreclosure Protection Offered to Displaced FamiliesU.S. Housing and Urban Development Secretary Alphonso Jackson today announced HUD will speed federal disaster assistance to tornado-ravaged Kiowa County, Kansas and provide support to homeowners and low-income renters forced from their homes following last week’s devastating storms. May 8, 2007
Baltimore: Condo Vote Raises TensionsThe vote from the Strathmore Tower condominium board was simple: Down with the Sabbath elevator. But what some thought was a straightforward vote has erupted into a religious and racially tinged controversy to others in this majority senior citizen-occupied condominium complex in Upper Park Heights. May 8, 2007
New Orleans: Demolish or Save?Iris Gladney, a retired school teacher, closed on her Road Home grant last week, and she wants to use the money to remodel her one-story home on Lamanche Street. But according to a citation posted on the front door in March and a notice published last month in the newspaper, New Orleans City Hall has declared the house a tear-down. May 8, 2007
Bank of America Offers No-Fee Home MortgagesBank of America (BAC) said Monday it is offering no-fee mortgages nationwide for Americans buying homes. The second-largest U.S. bank said it won’t charge for applications, appraisals, loan originations, title insurance and flood certifications. It also won’t charge for private mortgage insurance — often required for borrowers who put less than 20% down. May 8, 2007
Disaster Assistance for Individuals and Businesses Now Available in Denton CountyDisaster assistance for Denton County, Texas is now available for homeowners, renters and business owners affected by the severe storms of April 21-24, the head of the Federal Emergency Management Agency (FEMA) announced today. May 8, 2007
Want A Green House? Prepare to be ConfusedWant to go green? Take your thoughts off that gas-guzzling SUV for a moment and consider this: The average U.S. home causes twice as much greenhouse emissions as a single car. May 8, 2007
Check Insurance Before Hurricane Season Swoops InHurricane season officially kicks in June 1, so if Mother Nature is in on that memo, we should have at least a few weeks to prepare. Go ahead and stock up on batteries and bottled water. May 8, 2007
Look Beyond Interest Rateshe general wisdom these days seems to be not to pay off one’s mortgage but to keep it as long as possible and use the difference between shorter and longer-term payments to save and invest. We are getting ready to refinance from a 15-year to a 30-year loan for that reason, even though we’re within 20 years of retirement. We are not exactly house-poor, but don’t have a lot of extra cash and don’t have a sufficient emergency fund. We are pretty frugal in general, with no big areas to cut costs and no debts. We are putting the max into retirement accounts. We have crunched the numbers and it makes sense to do this, yet I still wonder if we are being swayed by a trend and are missing something. May 8, 2007
IRS Kicks Homeowners While They Are DownFor homeowners who are seriously delinquent on their mortgages and hoping for relief, the Internal Revenue Service has bad news: If your lender agrees to modify your loan and forgive any of your debt, you could owe federal income tax on the amount forgiven. May 8, 2007
Can San Francisco Make Low-Income Neighborhoods Desirable?San Francisco progressives have spent decades in a multi-front battle against gentrification. The struggle to prevent the displacement of low-income working people from the city has led to rent controls and eviction protections, zoning restrictions, highrise limitations, inclusionary housing, and a constant push for truly affordable housing. May 8, 2007
Same-Race GentrificationFew topics stir the race and class pots as gentrification does. Black and white, rich and poor — pick your poison. But Mary Pattillo’s “Black on the Block” asks what happens when middle-class blacks gentrify black neighborhoods. The Northwestern University sociologist researched North Kenwood/Oakland, or NKO, on Chicago’s South Side. May 8, 2007
HUD Secretary Anounces $1.8 Billion for Affordable Housing & First Time Homeownership ProgramsU.S. Housing and Urban Development Secretary Alphonso Jackson today announced that thousands of communities around the country will receive nearly $1.8 billion to promote HUD’s affordable housing and first-time homebuyers programs. The City of St. Louis will receive over $4.2 million to produce affordable housing and help low-income families purchase homes. May 10, 2007
Road Home Buyout Option Sets 90-Day Deadline to Buy New HomeIn a little-known rule that one top state official derided as “foolishness,” Road Home applicants who take a buyout, but agree to buy a new home in Louisiana, get nailed with a 40 percent penalty unless they buy the new house within 90 days. Buried deep in reams of grant closing documents, the time limit apparently escaped the notice of even senior state officials, who variously disowned and criticized the rule, which affects about 4,500 grant applicants. May 10, 2007
A Survey Finds New Orleanians Still Struggling after Katrina but Remaining Optimistic about the City’s FutureNew Orleans area residents are still dogged by Hurricane Katrina’s aftereffects, many of them hit with financial setbacks, tolerating odd housing arrangements, unsure where to find a doctor, quarreling with a spouse or drinking too much. They tend to worry about flood walls and crime and losing electric power. May 10, 2007
HUD to Seek Ban on Mortgage ‘Aid’The Department of Housing and Urban Development plans to seek a ban on a certain type of down payment assistance that has grown sevenfold this decade and contributed to a surge in foreclosures of government-backed mortgages. Nonprofit groups, such as Nehemiah Corp. of America and AmeriDream Inc. of Gaithersburg, Md., provide the down payment help and are then reimbursed by the seller. The programs are “a contributing factor of increased risk in our portfolio” of loans, HUD spokesman Lemar Wooley said in an e-mail. May 10, 2007
Is Home Slump a Speed Bump for Spenders?Economists are debating whether a sharp drop in home sales and price appreciation will depress consumer spending, which is about two-thirds of the economy. The theory is that a sharp rise in home equity helped push spending up faster than income starting in the late-1990s until last year. Now, as the housing market sours, consumers not only feel less wealthy, but have less equity to use for other spending. May 10, 2007
Gloomy Outlook from Top U.S. HomebuildersHopes of an imminent housing recovery are dimming as the nation’s largest homebuilders continue to report slumping sales and profits. Toll Brothers Inc., the nation’s largest builder of luxury homes, on Wednesday warned that it won’t meet prior earnings projections while homebuilders Hovnanian Enterprises Inc., Pulte Homes Inc. and D.R. Horton Inc. have reported similar malaise. May 10, 2007
Housing Slide is Milder Here Than in Most AreasThe numbers say it all: Philadelphia and the seven counties surrounding it are weathering the slower residential real estate market better than much of the rest of the country. May 10, 2007
New York City Renters Cope With SqueezeAs the apartment-hunting season begins, fueled by college graduates and other new arrivals, real estate brokers say radical solutions among young, well-educated newcomers to the city are becoming more common, because New York’s rental market is the tightest it has been in seven years. High-paid bankers and corporate lawyers snap up the few available apartments, often leading more modestly paid professionals and students to resort to desperate measures to find homes. May 10, 2007
Frequently Asked Questions on Applying for FEMA AssistanceKansas residents living in Kiowa County may be eligible for Individual Assistance from the Department of Homeland Security’s Federal Emergency Management Agency (FEMA). To be considered for such assistance, residents must first apply with FEMA. May 10, 2007
Affordable Housing Sought: Report Shows Many Delawareans Unable to Pay for a Place to LiveMore than 100 affordable housing advocates marched to Legislative Hall on Wednesday in an effort to draw attention — and money — to the shortage of economical housing in the state. The march was timed with the release of a report by the Delaware Housing Coalition that found only 36 percent of Delawareans earn the $60,000 required to afford the state’s typical home price of $228,000. May 10, 2007
New Orleans, Ravaged by Katrina, Hit Again by Subprime CrisisRetired New Orleans cook Hattie Warren survived Hurricane Katrina. Now, at 82, she is struggling with the $100,000 subprime mortgage she took out to pay bills and “have a few dollars” five months before Lake Pontchartrain flooded the city. The payment on her adjustable-rate loan, about $860 a month, eats up three-quarters of her income from Social Security and the rent daughter Gloria pays to share the two-family Creole cottage. May 10, 2007
Easing the Housing Squeeze: HPD eyes new ways to keep living here affordableAs the city’s real estate construction boom continues, many residents worry they’ll be priced out of the market. The answer to their fears, according to Shaun Donovan, commissioner of the city’s Department of Housing Preservation and Development, is not just more construction, but constructive construction. Donovan talked to Metro about Mayor Michael Bloomberg’s “New Housing Marketplace” plan that, through zoning changes, tax breaks and new land development, will create 165,000 new housing units over 10 years. May 10, 2007
HUD Secretary signs Memorandum of Cooperation with El Salvador’s Minister of Public WorksToday, the Bush Administration and Government of El Salvador reaffirmed their mutual commitment to promoting housing and economic development in El Salvador. U.S. Housing and Urban Development Secretary Alphonso Jackson and the El Salvador Minister of Public Works Jorge Neito signed a Memorandum of Cooperation (MOC) that promotes cooperation to strengthen housing in this Latin American country. May 14, 2007
The Mortgage Professor: A ‘Silent’ MenaceThe term “silent second” is used to describe self-serving or perhaps fraudulent schemes by which house sellers accept second mortgages as part of a sales transaction without the full knowledge of the first mortgage lender. The “silence” refers to the absence of disclosure to the first mortgage lender. May 14, 2007
Allstate will Stop Insuring California HomesAllstate will stop writing new homeowners policies in California beginning in July, the company said Thursday. An Allstate spokesman said the move was to help control its catastrophe exposure in the state, which is prone to wildfires and earthquakes. The move will not affect current customers, nor will it affect auto insurance. Allstate agents in the state will continue to work with customers, but will offer new homeowners insurance through partner Pacific Specialty Insurance. May 14, 2007
Disaster Recovery Centers To Open In MaineOfficials from Maine Emergency Management Agency (MEMA) and the Federal Emergency Management Agency (FEMA) will open Disaster Recovery Centers to assist individuals and business owners affected by the severe storms and flooding that occurred April 15-23. There will be several mobile facilities that operate for a few days each at multiple locations throughout York and Cumberland counties as well as a fixed site in each county. Residents can visit any location that is convenient for them. Operating hours are 8 a.m. to 8 p.m. Monday through Saturday for all locations. May 14, 2007
Flexibility as a Marketing ToolMortgage lenders have given borrowers mixed signals in recent months. Many are tightening the terms under which they offer money, even to buyers with good credit. But borrowers who clear that bar may find some user-friendly products. May 14, 2007
A ‘No-Fee’ Mortgage That Might Be for RealHome loan industry competitors are searching for hidden gimmicks, but Bank of America insists that its “no-fee mortgage plus” plan announced this week delivers exactly what the name implies — without raising interest rates to applicants. May 14, 2007
Court Affirms Tenants’ Rights When Buildings Are SoldTenants’ rights in the District take priority over other rights, including those of subsequent owners of buildings, according to a recent ruling by the D.C. Court of Appeals. The Wilson Courts Tenants Association represented the tenants in a 20-unit building in Southeast Washington. On June 21, 2004, the building was sold to a limited liability company, but the tenants did not learn of the sale until six days later. May 14, 2007
Ask the Builder: Blasting the Roof CleanQ: DEAR TIM: My roof needs cleaning. It’s a newer asphalt shingle roof, but parts of it are covered with moss, lichens and algae. Is a pressure washer a good tool for cleaning roof shingles? Will it remove all of this growth? A neighbor told me a pressure washer would ruin my shingles. Are there alternatives? And how do I prevent the stuff from coming back? — Tom B. May 14, 2007
Viet Nam: Low-Income Earners Feel Pinch of Increasingly Pricey HousingThe demand for housing is very large, but most people do not have high enough income and the price of housing is very expensive. So, a large number of low- and medium-income individuals do not have access to the real estate market. May 14, 2007
Housing Program ScrutinizedAfter five years of taking a regional approach to affordable housing, officials from five area cities may decide in May and June whether to revoke the agreement that solidified the effort. A recommendation from the Life Cycle Housing board suggests dismantling the five-city pact and allowing cities to individually pursue affordable housing. May 14, 2007
HUD, EPA, DOJ, State of California Announce Joint Settlement Agreement with California LandlordThe U.S. Department of Housing and Urban Development, the U.S. Environmental Protection Agency, the U.S. Attorney’s Office for the Central District of California, the Department of Justice’s Environment and Natural Resources Division, and the California Attorney General’s Office today announced a joint settlement agreement with Linder & Associates, a Los Angeles-based property management company who the government alleges failed to inform tenants that their homes may contain potentially dangerous levels of lead. May 15, 2007
Recovery Czar Says Target Zone Plan on TrackThough none of the money is in hand yet, New Orleans’ ambitious plan to begin pumping more than $1 billion in public dollars into 17 redevelopment zones remains on schedule to begin by late summer, recovery czar Ed Blakely said Monday. May 15, 2007
Real Estate Glossary: Home AppraisalA detailed estimate of the value of a specific property by an independent third party, called an appraiser. Appraisers are licensed by states after completing course work and training that familiarizes them with the real estate markets in which they work. May 15, 2007
HUD: Jackson Lays Out Six Areas of Agreement for Renewing Confidence in the Homebuying ProcessThe U.S. Department of Housing and Urban Development today hosted a Homeownership Summit with leading stakeholders in the housing community to discuss the impact of risky, high-priced loans, departmental actions against predatory lending and how modernizing the Federal Housing Administration will provide a safer alternative to exotic mortgages. Delivering the keynote address, HUD Secretary Alphonso Jackson laid out seven areas of agreement for preserving and protecting homeownership, helping new homeowners keep their homes and vastly improving lending practices. May 15, 2007
FEMA: Disaster Assistance Update More Than $3.6 Million Approved For Disaster AssistanceState, federal, local officials, and voluntary agencies continue to help Texans, affected by the severe storms and tornadoes of April 21-24, recover. To date, more than $3.6 million in disaster aid has been approved for residents and businesses. May 15, 2007
Baltimore: Despite Opposition, Officials Considering Eminent Domain in Dundalk RenewalIt’s a dreary place, one where a drug debt was squared by executing a woman as she pleads for her life in an alley. Now the Baltimore County government wants to clear the entire area and rebuild it from scratch — so badly, in fact, that elected officials are talking about defying what has become a political taboo. They might seize private property — and sell it to developers — in the cause of economic development. May 15, 2007
‘Warehoused’ ApartmentsQ I live in a rent-stabilized apartment in a seven-unit building in Manhattan. The landlord has emptied the four apartments above me, and he lives in two apartments below me. For the last three years, he has warehoused the upstairs apartments, which had been rent-stabilized, but has allowed friends and religious students to stay there rent-free. Is he allowed to do this? May 15, 2007
Upgrade to Granite? It’s Not Written in Stone.In quite a few neighborhoods, especially the new ones and the pricey ones, granite countertops have become as ubiquitous in kitchens as the teakettle used to be. May 15, 2007
Mayor’s Affordable-housing Plan PassesAffordable-housing advocates and Mayor Richard Daley both claimed victory Monday as the Chicago City Council overwhelmingly approved Daley’s plan to require developers to set aside more housing units at lower prices. May 15, 2007
Katrina May Reshape Affordable Housing from Coast to CoastA small revolution is about to explode onto the national scene this summer, something almost no one as yet sees coming… . It is coming at a home improvement store near you; to be specific, at Lowe’s Hardware. Starting in July, Lowe’s will roll out a marketing campaign offering a new concept in attractive, well-built, affordable prefabricated homes, the so-called Katrina Cottages. May 15, 2007
Workers May Get Help with HomesRenaissance Corporation executives said the lack of housing available that the average working person can afford is a problem that has reached a critical level. “This region is at a pivotal point in terms of our future recovery,” Anthony Topazi, president and CEO of Mississippi Power and chairman of the nonprofit, told the Sun Herald on Monday. He said there are companies hesitant to make decisions about growth because there is not enough housing for workers. May 15, 2007
Affordable Housing Does not Mean Government SubsidizedFor years, people have complained the East Park neighborhood has been left behind by city officials who have done nothing to build it up. Now, there is a project on the table that will do just that. It will provide affordable housing and increase property values. May 15, 2007
Housing Disabled Residents Face Shortage: Woman seeks lasting care for her brotherAfter decades apart from her brother, Pat Trotter was surprised to discover he lived in an apartment by himself in 2003. Kenny Deal has about six days’ worth of school, can’t read and has an IQ of 47. He can print his name—a feat he takes great pride in. “He’ll sign his name on anything,” Trotter said. And in 1999, he signed his name on a lease of a Culpeper County one-bedroom apartment, which he got with help from a Section 8 housing voucher. May 15, 2007
HUD Secretary Announces Disaster Assistance for Massachusetts Flood VictimsU.S. Housing and Urban Development Secretary Alphonso Jackson today announced HUD will speed federal disaster assistance to certain flood-ravaged counties in Massachusetts and provide support to homeowners and low-income renters forced from their homes following last month’s severe storms and inland and coastal flooding. May 17, 2007
April Housing Starts Up 2.5%, but Permits FallHome building posted a small gain in April, but permits for future construction plunged by the largest amount in 17 years — a sign that the housing industry is still stuck in a deep slump. Construction of homes and apartments rose to a seasonally adjusted annual rate of 1.528 million units in April, an increase of 2.5% from March’s level, the Commerce Department reported Wednesday. May 17, 2007
FEMA Awards Hazard Mitigation Grant To Michigan’s Barry Countyhe U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) today RELEASED $230,325 in Hazard Mitigation Grant Program (HMGP) funds to Barry County, Michigan for the elevation of 12 residential homes located along Jordan Lake in Woodland Township. May 17, 2007
U.S. Senate OK’s $3.5 Billion for Hurricane ProtectionThe U.S. Senate on Wednesday gave the green light to more than $3.5 billion in Louisiana hurricane- and flood-protection projects seen as critical to avoiding another catastrophe from a storm like Hurricane Katrina. May 17, 2007
New Bids Sought for Evacuation BusesState transportation officials launched an expedited second round of bidding Wednesday for a contract to supply motor coaches for tens of thousands of metro New Orleans residents expected to rely on a new public evacuation system this hurricane season. May 17, 2007
Arena to be Evacuation Processing CenterThe city will use the New Orleans Arena as the city’s main evacuation processing center for residents with no way of leaving in advance of a major hurricane this year, city Homeland Security Director Terry Ebbert said Wednesday. May 17, 2007
The Bad News On Condos: Market Beset by Declining Sales, ForeclosuresThe foreclosure on Ridgeleigh at Van Dorn Metro was just one of several foreclosures in recent weeks of condo conversion projects in the Washington area and was another sorry sign of the soft real estate market and an oversupply of condos, real estate experts said. May 17, 2007
Biggest Building Site in Manhattan Up for AuctionIt is the largest building site left in Manhattan, 26 acres on the Far West Side, where the Bloomberg administration envisions the equivalent of five Empire State Buildings rising on $1 billion worth of concrete columns over bustling railyards. And starting next month, some of the city’s biggest developers will have a chance to bid for the rights to make that grand — some say grandiose — plan real. May 17, 2007
Public Housing in S.E. Baltimore RazedWork crews began demolishing this morning 200 apartments in 30 buildings in the sprawling O’Donnell Heights public housing community at the far edge of Southeast Baltimore. About 9:15 a.m., large trucks smashed into the first of the structures that resemble Army barracks. They were built in 1943 as temporary shelters for wartime steel and aircraft workers during World War II and were later turned into public housing. May 17, 2007
Sale of Old Brewery OK’d: $35 million conversion project plannedCity officials approved yesterday the sale of the American Brewery site — long an eyesore and symbol of a dilapidated East Baltimore neighborhood — whose redevelopment is expected to help spark a revival. The $5,000 deal turns the property over to a partnership between the Gotham Development of Washington and Struever Brothers, Eccles and Rouse, a Baltimore-based company that is one of the city’s premier developers. May 17, 2007
Whistleblower was Fired: Ailing lender’s lawyer says she was let go after making accusationsFederal regulators are investigating allegations that Fieldstone Investment Corp., a Columbia subprime mortgage lender that has been hard hit by rising defaults, fired its general counsel in January for accusing senior management of illegal activity. Cynthia L. Harkness filed the whistleblower complaint under the Sarbanes-Oxley Act, which is intended to protect employees who report fraudulent activity that can mislead investors in public companies. May 17, 2007
Affordable Housing is An Endangered Species. Protect ItIt came as quite a surprise to learn last week that one-fifth of Delaware’s population live in manufactured homes they own, on land they rent. The U.S. Census estimates our 2006 population at 853,476 people. We can all do the math — one-fifth of that number is a lot of people — entirely too many to be forced to look for affordable housing that does not exist in Delaware. May 17, 2007
National Mortgage Lender Responds to Distress CallPinnacle Financial Corporation is coming to the aid of the nation’s distressed subprime borrowers with a community service program that provides free tools and resources to help them avoid foreclosure. “Sadly, not a day goes by without news about the growing number of foreclosures among subprime loans in the U.S.,” said Doug Long, CEO of Pinnacle Financial, a non-subprime lender. May 17, 2007
Sinn Féin Launches Women’s Manifesto in Portlaoise“Women are particular-ly feeling the crunch of an all-Ireland housing crisis characterised by rising house prices, mortgage interest rates and rents, … May 17, 2007
Sexual Orientation Questions Keep Roommates.com from Safe Harbor BerthWhen you run a roommate-matching service, you need to be careful about what questions you ask, as Roommates.com has just learned the hard way. The Ninth Circuit Court of Appeals ruled yesterday (PDF) that the service did not qualify for a Safe Harbor under Section 230 of the Communications Decency Act (CDA). The case now goes back to a lower court, where Roommates.com could well be on the hook for violating the Fair Housing Act—all because of a couple questions. May 17, 2007
Black Educator Says White Philanthropist Interfered with SaleA prominent black educator is accusing a local philanthropist of trying to block his entry into a high-end neighborhood near Pensacola Country Club because of his skin color. Arthur M. Rocker said he met with a fair-housing attorney on Wednesday to discuss reports that R.K. “Skip” Hunter used “smear tactics” in an attempt to enlist neighbors to block his purchase of a home at 118 Seamarge Circle. May 17, 2007
HUD Charges Virginia Beach Landlord with Violating The Fair Housing ActThe U.S. Department of Housing and Urban Development announced today that it has charged Dr. James Crockett Henry, owner of a 30-unit complex in Virginia Beach, Virginia, with violating the Fair Housing Act for allegedly subjecting African-American tenants to stricter rules than others, using racial slurs about them, and retaliating against them. The Fair Housing Act makes it illegal to discriminate in housing because of race or color. May 18, 2007
Life Resettles for Survivors of Bronx FireIt has been about 10 weeks since a fast-moving fire consumed their narrow brick house at 1022 Woodycrest Avenue in the High Bridge neighborhood on March 7. Kadiatou Magassa, the girl with the butterfly, had been carried to safety by firefighters. Niakale Magassa, Kadiatou’s aunt who stood cooking in the kitchen, had fled her room in a panic with her daughter and another girl. May 18, 2007
Fed Chief: Home Slump Shouldn’t Hurt EconomySubprime mortgage delinquencies and foreclosures will keep rising into next year, but they aren’t expected to seriously harm the broader economy, Federal Reserve Chairman Ben Bernanke said Thursday. In a speech to a Chicago lending conference, Bernanke acknowledged that the reeling U.S. housing sector appeared to have dipped further in the early months of 2007. Earlier in the year, the Fed had noted some tentative signs of stabilization in housing. May 18, 2007
Hurricane Sheltering Capacity Falls ShortThe state’s shelter capacity for hurricane season is more than 140,000 beds short of the estimated needs for the worst-case scenario: a Category 5 storm that forces the mandatory evacuation of the New Orleans area and the entire Louisiana coast. May 18, 2007
House Panel Weighs Holding Subprime Predators LiableOne of the toughest questions facing Congress as it tries to address the meltdown in the subprime mortgage market, which caters to borrowers with poor credit, is deciding whether Wall Street is part of the problem or part of the solution. May 18, 2007
Builders’ Permit Requests TumbleHome building posted a small gain in April, but permits for future construction fell by the largest amount in 17 years, a sign the nation’s housing industry is still in a deep slump. May 18, 2007
Marietta, OH: Housing Project in The WorksA senior housing project, which has been the dream of a local community for years, is finally coming to fruition. Barlow residents may see ground broken late this summer for a 30-unit, independent living, senior housing complex in the White Oak Development area. May 18, 2007
Artist, Activist and Author Turns 90It’s a fitting place to celebrate someone who has spent a lifetime working on behalf of civil rights and racial equality. In the 1960s, the tall, distinguished-looking Epstein championed fair housing; in the 1970s, he marched in Washington, D.C., and in Cleveland in protest against the Vietnam War; and in the 1980s, he fought against anti-Semitism to help lower the barriers for Russian Jews to emigrate. May 18, 2007
Rally for House & Home - Big Demonstration Planned for Affordable HousingWith skyrocketing rents and a rising threat to affordable housing in Brooklyn, residents, elected officials and housing organizations are uniting for a massive rally called “New York is Our Home.” A diverse coalition of tenants and affordable housing advocates from across Brooklyn gathered at Borough Hall, 209 Joralemon St., to organize local residents for the May 23 rally, which is expected to draw thousands of New Yorkers. May 18, 2007
Same house. Same repairs. Same insurer. Why different prices?Evidence suggests Allstate pays far more for flood repair than for wind damage. The reason? The government picks up the flood tab, and the company minimizes its own payout. “For every dollar paid out of the federal treasury under flood, Allstate takes a credit and keeps a dollar. Essentially Allstate is profiting at the expense of the American taxpayer.” May 21, 2007
HUD Set to Auction SE Complex Despite Current Residents’ OfferSayles Place Homes in Southeast Washington badly needs new windows and doors, a perimeter fence, landscaping, perhaps a new roof. No one disputes that. But whether it is better to sell the 61-unit complex to a private developer or let a residents’ cooperative purchase it is a matter of contention. To the dismay of residents and city officials, the U.S. Department of Housing and Urban Development plans to foreclose and sell Sayles Place to the highest bidder at auction Wednesday. Residents are lining up financial backing, hoping to fend off foreclosure and buy it on their own. May 21, 2007
Discriminating Lenders, or Just Discrimination?When mortgage lenders refuse to write loans on central-city rowhouses, does that violate federal fair-housing rules? What about refusing to write mortgages on houses in a community dominated by an ethnic group? Or not offering mortgage loans for houses that may be used in part to accommodate disabled adults? May 21, 2007
Insurers Try to Limit Wildfire LossesSpooked by devastating wildfire seasons, the nation’s top insurance companies are inspecting homes in high-risk areas throughout the West and threatening to cancel coverage if owners don’t clear brush or take other precautions. May 21, 2007
Disaster Recovery Center Opens in Trousdale, Edwards CountyA third federal-state Disaster Recovery Center is now available to help Kansans affected by this month’s severe storms, tornadoes and flooding. The mobile center operated by the Federal Emergency Management Agency (FEMA) is located in Trousdale City Park, at Cooper and Main Streets. Hours will be 9 a.m. to 7 p.m. seven days a week until further notice. May 21, 2007
Condos Tighten the RulesEVERYONE knows that buying a condominium in New York City is supposed to be much easier than buying a co-op. More expensive maybe, but definitely easier. But condo boards across the city in recent years have been honing and tightening the rules and requirements they impose on buyers, with many now behaving more and more like some of the city’s most exclusive co-ops. May 21, 2007
Will Gentrification Spoil the Birthplace of Hip-Hop?Hip-hop was born in the west Bronx. Not the South Bronx, not Harlem and most definitely not Queens. Just ask anybody at 1520 Sedgwick Avenue — an otherwise unremarkable high-rise just north of the Cross Bronx and hard along the Major Deegan. Mr. Campbell thinks the building should be declared a landmark in recognition of its role in American popular culture. Its residents agree, but for more practical reasons. They want to have the building placed on the National Register of Historic Places so that it might be protected from any change that would affect its character — in this case, a building for poor and working-class families. May 21, 2007
Unearthing the Roots of the Subprime ProblemExtensive payment problems with subprime mortgages, along with the failure of a number of subprime lenders, have been major news lately. The subprime mortgage market caters to borrowers with imperfect credit or other weaknesses, such as insufficient cash for a down payment. Speculation about the causes of the defaults has been widespread. May 21, 2007
Should Affordable Hosuing Go Here?A 33-unit affordable housing development on the southern end of Monterey County may well be ground zero in the debate over competing visions for the future of affordable housing in rural areas. Planned by the Salinas-based nonprofit housing developer Community Housing Improvement Systems and Planning Association, known as CHISPA, the San Lucas project is dubbed Valley View and is intended to house mostly farmworkers in the rural community. May 21, 2007
CA: Public Housing May be Going: Old units might be razed to make room for new developmentThe South Merced public housing complex that’s been home to generations of low-income residents could be demolished and replaced with new apartments and townhouses if a plan by the Merced County Housing Authority succeeds. The Housing Authority wants to raze 128 rental units between Fourth and Seventh streets and T and V streets and build a $50 million neighborhood known as Gateway Terrace in their place. May 21, 2007
Groups Back Reforms for MortgagesBanking industry trade groups endorsed mortgage reform principles Monday as the troubled market for high-risk home loans worsens and Congress ponders whether to intervene. The statement from five industry groups says lenders are already stepping up efforts to assist borrowers who face default or foreclosure and emphasizes that lenders are voluntarily tightening loan standards. May 22, 2007
Covington, Mandeville and Slidell to Receive FEMA GrantsCovington, Mandeville and Slidell each will receive a $112,500 grant to update their plans for responding to hurricanes and other emergencies, FEMA officials announced Monday. The money will be used by the cities to update their “hazard mitigation plan” to reduce the potential loss of life and property in future disasters, FEMA officials said. May 22, 2007
New York’s Annual Estimate of Homeless Is ChallengedA Columbia University professor hired by the city to help conduct an annual estimate of homeless people has disavowed the project, saying its methods cause the number to be understated. The professor, Julien O. Teitler, said yesterday that he was withdrawing from the project because he did not think the city’s approach would arrive at an accurate figure. May 22, 2007
Mortgage Fraud Is Up, but Not in Their BackyardsThe three women call themselves the All-Broad Fraud Squad. Nearly a decade ago, concerned that mortgage fraud was threatening their pastoral towns, the women — two full-time mothers and a mortgage executive then in their 40s — got together to write down license plate numbers of suspicious cars in their neighborhoods, scour public documents for housing titles and deeds and seek the help of local law enforcement. At first they were ignored, written off as bored housewives. May 22, 2007
Property Manager in Biloxi, Mississippi Charged in Violation of the Fair Housing ActHUD charged the property manager and owner of a Biloxi apartment complex for allegedly refusing to provide an accessible parking space for a disabled resident. May 22, 2007
The Restraints on Robust Real Estate CompetitionMany obstacles remain to achieving more “robust competition” in the real estate market, the Federal Trade Commission and the Justice Department have concluded. “Competition provides American consumers lower prices, better quality services, and greater choice. In the residential real estate industry, competition is vitally important because buying or selling a home is one of the most important financial transactions a consumer will ever undertake,” the agencies wrote in a report issued last month. May 22, 2007
Taking a Gamble on Cut-Rate CommissionsIs it possible to get a rebate on something you didn’t pay for in the first place? Not really. And that’s something home buyers should keep in mind when looking for a real estate agent. The services of a buyer’s broker don’t come free, even though buyers aren’t asked to take pen to checkbook to pay for them. The good news is there are a growing number of local real estate agents offering to work with buyers for less in the form of rebates. May 22, 2007
FEMA Study: Ventilating Travel Trailers Can Significantly Reduce Formaldehyde Emission LevelsThe Department of Homeland Security’s Federal Emergency Management Agency (FEMA) said today that its study of air samples collected from travel trailers in the Gulf shows that formaldehyde emission levels in the units can be significantly reduced through adequate ventilation. FEMA initiated the study in response to concerns expressed about formaldehyde in the trailers and because of the high number of the units used as temporary housing following hurricanes Katrina and Rita. The objective of the study was to validate the most effective measures for lowering formaldehyde concentrations in travel trailers. May 22, 2007
Development Looms for Colonial EstateA 30-year agreement that has prohibited development on an 892-acre portion of historic Doughoregan Manor is set to expire tomorrow, paving the way for hundreds of new homes on one of the largest tracts of undeveloped land in Howard County. The property is a remnant of a once vast Colonial estate of more than 10,000 acres. The manor was declared a National Historic Landmark in 1971. May 22, 2007
The Rent Went Up $2,100, but Was the Increase Legal?Q: I moved into an apartment that a previous tenant lived in for more than 20 years. The rent history I dug up shows that rent was $400 a month and that the apartment was rent-stabilized. I was never told that the unit was stabilized and wasn’t provided with any information as to why the rent was increased to $2,500. Do I have any options? May 22, 2007
Know Your DeveloperQ: I am looking at buying a condo in a complex that is under construction. Are there any particular considerations that I should keep in mind since I can’t look at the actual unit, which is nowhere near finished yet? I am renting nearby and see the construction progress, so at least I know the neighborhood well. May 22, 2007
Orange Task Force Warns of Growing Housing CrisisThe lack of affordable housing in Orange County is creating a population of commuters. About a quarter of the people who work in the county have to live outside its boundaries because they can’t afford rents or mortgages there. Many others pay more than the recommended maximum of 30 percent of their household income on rent. Those are the findings of a yearlong study by the county’s Workforce Housing Task Force, which will present its report to the County Commission today. May 22, 2007
Affordable Housing Ruling PraisedState agencies have the same obligation to abide by affordable housing rules as municipalities do, an appellate court ruled Monday. Builders and affordable housing advocates hailed the decision, saying it will force the New Jersey Meadowlands Commission to adhere to the same regulations that require towns to make room for affordable housing when they allow new development. May 22, 2007
Student Design Project for Green Affordable Housing Comes to LifeStudents enrolled in the Ecosa Institute’s Total Immersion Semester in Sustainable Design have worked together to create plans for an environmentally, socially and economically responsible 45-unit housing project for Desert Mission Neighborhood Renewal, a non-profit community development organization sponsored by John C. Lincoln hospital in Phoenix, Arizona. This project is currently moving into the construction document phase with a commitment to eco friendly design as a means of providing long-term affordability for home-owners. May 22, 2007
Housing too High for Young BuyersAstronomical house prices may be good for longtime property owners, but it’s discouraging the state’s 25- to 34-year-olds, according to a new study that says 10 percent of that age group is moving out of state. In fact, Connecticut leads the nation in the portion of its young-adult population that has decamped the state, searching for a more affordable life, said the study’s author, Bruce Bluestone, director of the Center for Urban and Regional Policy at Northeastern University. Bluestone said that more housing stock, especially affordable homes for young families, is a key to the state’s future. May 22, 2007
House Tightens Reins on Fannie, FreddieLegislation to tighten federal oversight of the two biggest buyers of home mortgages, Fannie Mae and Freddie Mac, cleared the House yesterday. However, the bill could lose the support of the Bush administration because of a new provision trimming the authority of federal regulators. May 23, 2007
Appetite for Big Houses is GrowingMcMansions are sprouting in the suburbs of Washington and Atlanta, in southern Connecticut and out West in Utah as an appetite for bigger homes just keeps on growing. One in five American houses had at least four bedrooms in 2005, according to a report Tuesday by the Census Bureau. That’s up from one in six in 1990, despite shrinking families and increasing costs for construction and energy. May 23, 2007
Active Hurricane Season ForecastThere were no surprises in the federal hurricane forecast released Tuesday: A busier than normal season that could see as many as five major hurricanes forming. The federal outlook, announced by the National Oceanic and Atmospheric Administration’s Climate Prediction Center, calls for a “very high likelihood” of an above-normal season, with between 13 and 17 named storms, of which 7 to 10 could be hurricanes. From three to five will be major hurricanes with Category 3 winds or greater. May 23, 2007
Mortgage Banker Blames Brokers for Loan WoesThe heads of trade groups representing mortgage bankers and brokers traded barbs Tuesday over who’s to blame for the housing market’s woes. The head of the mortgage banking industry’s trade group said brokers profited from a home loan boom but didn’t do enough to examine whether borrowers could repay. May 23, 2007
President Declares Major Disaster For South DakotaThe head of the U.S. Department of Homeland Securitys Federal Emergency Management Agency (FEMA) today announced that federal disaster aid has been made available for the state of South Dakota to help people and communities recover from the effects of severe storms, tornadoes, and flooding beginning on May 4, 2007, and continuing. May 23, 2007
Maryland McMansions Growing Even LargerMaryland may be “America in Miniature” to some, but the state’s housing has been tending toward the plus size, the latest census data show. Though middling in overall population, Maryland ranks second only to Utah - the state with the nation’s largest households - in the share of its housing with four bedrooms or more, the U.S. Census Bureau reported yesterday. May 23, 2007
When His Lucky Break Came, He Was ReadyIt wasn’t Mega Millions or the Powerball that helped Tomás Vallejo get a home, it was a community group dedicated to keeping a Brooklyn neighborhood strong. Vallejo’s name languished on a waiting list for four years before summer 2004, when a call from Cypress Hills Local Development Corp. changed everything. The nonprofit agency had rescued a wreck from foreclosure and disrepair, and it was Vallejo’s lucky day. May 23, 2007
World Earth Day SpecialEarth Day Network, www.earthday.net, seeks to grow and diversify the environmental movement worldwide. Dr. Robert Bullard of the Environmental Justice Resource Center said “Global warming poses special environmental justice challenges for communities that are already overburdened with pollution and environmentally-related illnesses. May 23, 2007
Ruling Could Impact Pinelands HousingA ruling mandating affordable housing in the Meadowlands region could also determine how such homes are built in the Highlands and Pinelands areas, according to legal experts. The 3-0 decision by a state appellate court found that the New Jersey Meadowlands Commission must provide zoning for low- and moderate-income housing in the 14 towns in Bergen and Hudson counties that it oversees. May 23, 2007
ECIDA OKs Tax Breaks for Senior HousingA project to build 162 affordable senior citizens apartments in the Town of Tonawanda was granted $2.84 million in tax breaks Monday by the Erie County Industrial Development Agency, but not until some board members questioned the agency’s role in subsidizing elderly housing projects. The tax breaks will help Affordable Senior Housing Opportunities of New York, a company affiliated with Clover Management, build 69 one-bedroom apartments and 93 two-bedroom units in a 147,124-square-foot facility on Hospitality Center Way. May 23, 2007
White Plains, NY: What’s Missing from This Station Square Picture? Black People.Federal Fair Housing laws prohibit the use of people depicted in marketing campaigns to indicate racial “exclusiveness” and require that models “reasonably represent” minorities in the area. The Station Square project renderings may be beyond the reach of the housing laws, which cover only concerted and prolonged marketing campaigns to attract tenants, federal officials said. May 23, 2007
Chicago Woman Challenges Discrimination: Denied Access to Homeless Shelter Because She Was GayA Chicago woman denied access to a city-funded homeless shelter on a cold November evening because she is a lesbian is challenging the discrimination she experienced. The American Civil Liberties Union of Illinois recently announced the filing of complaints with the City of Chicago Commission on Human Relations and the State of Illinois Department of Human Rights on behalf of Michelle Wang, a 27-year-old woman denied space at New Life Shelter after she told a staffer at the shelter she is a lesbian. May 23, 2007
Call 3 Problem Solvers: Toxic Mold Causes Renter To Move OutThe Human Rights Fair Housing Commission says landlords have the responsibility to ensure there is no mold when a tenant moves in. If mold grows later, it’s up to the tenant to report it. Vanessa Peerman says she found toxic mold in her apartment, just a month into the lease. She hired a mold testing company, which confirmed it. May 23, 2007
On Video: Former Payday Lender Describes Debt TrapRebecca Flippo was the manager of a payday lending store owned by a chain in Virginia. When she heard about a debate on payday lending in the Virginia House of Delegates, after she had quit and found another job, she called her state representative and said, “it’s worse than you think.” After Rebecca appeared on a television newscast describing her insider’s view of payday lending, we asked her to tell us her story in detail. May 23, 2007
Regulator Decries Home-Lending PracticesA high-ranking Treasury Department official on Wednesday chastised mortgage lenders for too-often failing to verify the income of borrowers with blemished credit histories, blaming the practice for rising defaults and foreclosures. Comptroller of the Currency John C. Dugan said federal banking regulators need to give the industry guidance for improvement in this area, though he did not offer a specific remedy. May 24, 2007
Mortgage Demand Up, but It’s ‘Nothing to get Excited About’Mortgage applications rose last week for the fourth time in five weeks, although housing sales may languish as lenders make it more difficult to get loans approved, industry executives said. Many lenders have tightened standards as defaults and foreclosures mount on mortgages made to borrowers with blemished credit histories. May 24, 2007
HUD’S Deputy Secretary stresses “Power of Partnership” in preparing for 2007 Hurricane SeasonU.S. Housing and Urban Development Deputy Secretary Roy A. Bernardi today told hundreds of disaster planners in the Commonwealth that the federal government is ready for this year’s hurricane season and stressed the importance of preparing for disaster at every level. Speaking at the Second Seminar on Disaster Relief, Bernardi joined representatives from the Federal Emergency Management Agency (FEMA), Small Business Administration (SBA), and the U.S. Department of Agriculture (USDA) to discuss how federal partnerships can support local communities with disaster planning and long-term recovery. May 24, 2007
FEMA Invests in Mitigation Efforts in West VirginiaAn ounce of prevention is worth a pound of cure. Following this adage, West Virginia Division of Homeland Security and Emergency Management and the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) are working together on actions to reduce future flood damages. This effort is part of FEMA’s Hazard Mitigation Grant Program (HMGP) which provides federal grants to states, local governments and Indian tribes for long-term hazard mitigation projects after a major disaster declaration. May 24, 2007
Kent Island Project is Denied Key Permit: State board decision shows new sway of environmentalistsAmid warnings that Maryland’s development laws and regulations are not strong enough to protect the Chesapeake Bay, the state Board of Public Works denied yesterday a key wetlands permit for a proposed 1,350-home waterfront community on Kent Island. In the most substantial evidence yet of the growing influence of environmentalists in Annapolis, the board voted 2-1 to deny the developer permission to disturb a small patch of wetlands for the proposed 562-acre Four Seasons project. May 24, 2007
Statement by HUD Secretary Alphonso Jackson on his participation in the U.S. - China strategic economic dialogue“The U.S.-China Strategic Economic Dialogue taking place in Washington over the past two days has been very constructive. Discussing the mutual benefits of the growing connectivity between the economies of our two countries is an important topic. One statistic in the financial marketplace bares this out most of all: In 2002, the total Chinese investment in U.S. agency mortgage-backed securities was just over $100 million. By June 2006, this number had grown to over $107 billion — a nearly 1,000-fold increase in less than 5 years. May 24, 2007
Maryland: Housing Lotteries Set for JuneAfter 18 months of waiting, Howard County housing officials are ready to award 26 homes at sharply discounted prices to prequalified buyers at three lottery drawings next month. All but one of the units will be new homes included in the county’s Moderate Income Housing Unit program, which requires builders of mixed-use projects to include 10 percent at lower prices. May 24, 2007
IN: Federal Housing Case SettledUnder a settlement unveiled Wednesday, former Lake County Economic Development Director Richard Hucker will receive $282,000 to settle claims that he was fired for not opposing an affordable housing project in Lake Station. Federal investigators spent seven years investigating and litigating the 1998 firings of Hucker and former Deputy Director Charles McInturf, whose estate will receive $67,000 in the settlement because McInturf did not live to see the end of the case. May 24, 2007
Baby Boomers Turning to Reverse Mortgages to Fund Their Golden YearsThe baby boom generation is trying to make sure that its golden years are not only about wheelchairs, medical scooters, lift chairs, and walkers. At least that appears to be what a recent report by the U.S. Department of Housing and Urban Development shows. Unlike their more thrifty parents, Boomers are turning toward reverse mortgages to stay in their primary residences. Reverse mortgages are home loans that provide people 62 years or older with the ability to turn their home equity into cash without having to move. These government regulated “Home Equity Conversion Mortgages” offer many options including lump sum, monthly cash payments, and an available credit line. May 24, 2007
Ocean City to Pay Salem City to Provide Affordable HousingThe city of Salem has agreed to shoulder some of Ocean City’s affordable-housing obligation.But don’t ask the mayor of the Delaware River town to cheer the deal. Salem Mayor Earl Gage said Ocean City and other rich island towns should provide all of their affordable housing within their own borders instead of paying poorer towns such as his. May 24, 2007
Couple Denied Parking Space Receives $7,000Following a finding of discrimination by a condominium manager, a couple involved in a dispute over their need for a wheelchair-accessible parking space have received $7,000 in compensatory damages in a settlement with the Menehune Shores Condominium. “When it comes to fair housing laws and condominiums, information on the rights of the disabled can often seem muddled and confusing,” Bob Bourbeau said in a statement released by the Legal Aid Society. “We had no idea just exactly what our rights were.” May 24, 2007
FEMA Trailers Called Health Hazards: Formaldehyde found in new housing unitsWhen consumers smell that crisp, fresh-from-the-factory scent that emanates from new carpets, new car interiors and new towels, they are smelling a compound called formaldehyde that is commonly used as a finisher in manufactured products. Formaldehyde is also found in plywood and other materials used in the construction of travel trailers, and some Louisiana residents living in such temporary housing complain that the chemical is making them sick or, at the very least, uncomfortable. May 29, 2007
Neighborhood Finds Real Estate Loans too Good to be TrueA study by the Mortgage Asset Research Institute Inc. of 100 stated loan applications last year found almost 60% exaggerated incomes by at least half. A study by BasePoint Analytics found that 70% of mortgage defaults were linked to “a significant misrepresentation on the original loan application.” Mortgage fraud is most visible in the spectacular cases that draw prosecutorial muscle, involving fake buyers, property flipping, vast amounts of money. But that overlooks smaller-scale foul play now costing many subprime borrowers their homes, experts say. May 29, 2007
Fighting Off ForeclosureMs. Caughman’s experience illustrates what most foreclosure figures do not make clear: some homeowners in New York City are finding it hard to keep up with mortgage payments. Most of them are never included in the totals because — like Ms. Caughman, who plans to sell her house — they have more options available to keep them from becoming a statistic. In contrast to most homeowners in trouble around the country, owners in New York City are helped by a strong real estate market and other protections that so far have kept them from sliding into foreclosure. May 29, 2007
D.C. Renters Balk at Condo ConversionTenants at the Norwood and other buildings in Washington have pushed back recently against the Tenacity Group, a developer that specializes in converting apartment buildings to condominiums in the district and Maryland. Tenants rights’ groups accuse the company of chipping away at an already diminished supply of affordable rentals by using aggressive tactics on uninformed residents. The city’s Office of the Tenant Advocate is looking into the claims. Norwood tenant Randy Green said that by pushing a condo conversion, Tenacity was simply helping absolve the landlord of responsibility for long-festering maintenance problems. May 29, 2007
The Mortgage Professor: Shortsighted About the Subprime DisasterThe end to house-price appreciation has caused turmoil in the subprime mortgage market, as I discussed last week. The rise in delinquencies, defaults and foreclosures has been concentrated among appreciation-dependent mortgages — those that work for borrowers only if their property values increase. A large proportion, but not all, of such mortgages are subprime, meaning they were made to borrowers with imperfect credit or insufficient cash for standard mortgages. May 29, 2007
Baltimore: A Place to Call Theirs AloneSingle women are buying homes in Baltimore at nearly twice U.S. average. Across Baltimore, single women - old and young, black and white - are buying houses, many for the first time, at rates far exceeding the national average. According to a 2006 survey conducted by the National Association of Realtors, 40 percent of city homebuyers last year were single females, nearly twice the national average and the Baltimore County rate. May 29, 2007
Site to Become Haven for Women, KidsCatholic Charities of Baltimore plans to spend $3 million starting this summer to convert the Our Daily Bread dining facility at 411 Cathedral St. and two adjacent rowhouses at 17 and 19 W. Franklin St. to a permanent home for My Sister’s Place, a day shelter and resource for homeless women and children. May 29, 2007
Wall Street Fuels Hamptons Real Estate MarketForget window shopping the photos of million-dollar manses in the real estate shops on Southampton’s Main Street. If you really want to know how the housing market in the Hamptons is faring as summer beckons, Steven Gaines suggests an unusual yardstick. He says the best barometer of how people in the Hamptons are doing is the price of the lobster salad at the local gourmet shop in nearby Sagaponack. Right now, it’s selling for $100 a pound. May 29, 2007
Housing Authority to Collect State Dollars: 1st stable government aid in group’s historyThe Web site for the Indiana Housing and Community Development Authority proclaims proudly that the group is a “quasi-autonomous, financially self-sufficient statewide government agency that operates without state tax revenues.” Until now. Thanks to legislative moves in the recently ended session, the authority will go from receiving little to no state support to millions of dollars every year. May 29, 2007
Hospitals Offer Doctors Housing: Loan assistance necessary to attract enough people, they sayCommunity Hospital of the Monterey Peninsula felt it needed to go the extra mile to bring in Terril Lowe as its vice president of nursing. With the high cost of housing on the Peninsula, a robust salary was not going to be enough. So the Community Hospital Foundation — which handles the hospital’s finances — offered Lowe a contract in which the hospital promised housing assistance. After working for the hospital for several years, Lowe found her 100-mile commute too much to bear, and invoked the housing clause in her contract. At that point, the foundation agreed to jointly invest with Lowe in a home closer to work. The move was viewed as a win-win for the foundation: a real estate investment that helped keep a high-level employee in a competitive nursing market. May 29, 2007
Road Home to Hit Dead EndFaced with a multibillion-dollar funding shortfall and an applicant pool that keeps growing by the hundreds every day, Louisiana’s Road Home program will stop accepting applications for homeowner relief grants on July 31. State officials said they will follow Tuesday’s decision to impose a definite application deadline with an intense media campaign to make sure homeowners know they just have two months left to apply. May 30, 2007
Archstone-Smith Agrees to $15.5B Private BuyoutArchstone-Smith (ASN), which owns apartments in the nation’s highest-rent districts, Tuesday said it agreed to a $15.5 billion buyout offer from private investors Tishman Speyer and Lehman Bros. If approved by shareholders, the deal would take another large real estate investment trust off the stock market and place it into the hands of private investors, including Tishman Speyer, which includes New York’s Rockefeller Center in its vast real estate portfolio. May 30, 2007
New Task Orders Being Awarded on Second Year of Contracts for Mobile Home and Travel Trailer Maintenance and DeactivationThe Department of Homeland Securitys Federal Emergency Management Agency (FEMA) announced today that progress in the Gulf Coast regions recovery has reduced the need for ongoing maintenance and support of temporary housing, and as a result, the agency is streamlining its contract support for the mission. A reduction in task orders for maintenance and deactivation of temporary housing will both save money, and still provide for continued support commensurate to the needs of the Gulf Coast states. May 30, 2007
Hawaii Real Estate — A Looong-Term InvestmentReal estate is often a long-term investment. But 10,000 years? Lo’ihi Development Co. will soon start offering oceanview lots speculators won’t even be able to stand on for many millennia. That’s because they’re currently submerged more than 3,000 feet below sea level — on an underwater volcano called Lo’ihi, located about 20 miles southeast of the Big Island. May 30, 2007
New Dehli, India: National Housing ConferenceThe Ministry of Housing and Urban Poverty Alleviation is organizing a two day National Conference on “Affordable Housing for All” jointly with Confederation of Indian Industry and Government of Maharashtra in Mumbai from 1st June, 2007. The Minister of State (Independent Charge), for Housing And Urban Poverty Alleviation Kumari Selja will address the inaugural session, the Chief Minister of Maharashtra, Shri Vilasrao Deshmukh will be the Chief Guest and the Minister of State for Finance, Shri Pawan Kumar Bansal will be the Guest of Honour also. May 30, 2007
Change on Bench Delays Watershed Land Access CaseTown efforts to have the state Department of Health decide access rules for New York City watershed property have been delayed by the censure of state Supreme Court Justice Cathryn Doyle, resulting in a new judge on the case. Town Supervisor Dennis Lucas on Monday said information about a change to state Supreme Court Justice Joseph Teresi was provided the day before a planned April 20 court session. May 30, 2007
NY: Lawmakers, Lenders Clash over Predatory LendingMembers of the Assembly yesterday challenged mortgage-industry officials on the nature of a recent “crisis” that could ultimately send more than 100,000 homes across the state into foreclosure. The Assembly held a hearing to look into sub-prime mortgages, which are offered to people whose credit is not strong enough to secure a traditional loan. A boom in the sub-prime market over the last several years has left millions of Americans unable to pay off their loans. May 30, 2007
Predatory Lending Violations Pushes Consumer to Seek Equal Justice Under The LawWhen Pierre Augustin of Lowell, Massachusetts, became a victim of predatory lending, he could not have foreseen that his timely legal objections and defenses to stop an illegal and fraudulent foreclosure action would be ignored by Chase Home Finance. May 30, 2007
Maryland: Land, Prices Affect HousingOf the many complex issues involved in converting downtown Columbia into an urban center, none has provoked greater passion than the need to provide housing for low- and moderate-income families. Unlike in some neighborhoods, one obstacle appears to have largely been overcome: public resistance. That is not surprising, because the spirit of the planned community has been economic and racial diversity. May 30, 2007
Up and Coming — Just Not HereWilliam Tisdale, president and CEO of the Metropolitan Milwaukee Fair Housing Council, says middle-class blacks in Milwaukee don’t feel they have real choices. “They’re doing all the things that people are telling them they need to do to be successful, and at the end of the rainbow, there’s no pot of gold. So they’re looking beyond the borders of urban areas that don’t offer those opportunities,” said Tisdale. May 30, 2007
30 years Later, City Renewal is Still a Promise UnfulfilledThree decades have been time enough to witness the deterioration of the public housing high-rises — and their subsequent demolition and rebirth as mixed-income rowhouse communities. It has been time enough to see the last gasp of the city’s Howard Street retail corridor — and its nascent revival as part of the west-side renaissance. It has been time enough to see the departure of one NFL team and the arrival of another — and the tearing down of a stadium and the building of two others. And it has been time enough to watch the collapse of the neighborhoods north of the Johns Hopkins medical complex — and the near-completion of the first buildings for a planned new community that will cover dozens of acres. May 31, 2007
Pulte Homes Cutting 1,900 JobsFacing a grim housing market, Pulte Homes Inc. said Tuesday that it is cutting about 16 percent of its work force, or about 1,900 jobs, as part of a restructuring. Pulte, one of the nation’s leading homebuilders, said the restructuring will save an estimated $200 million a year before taxes. May 31, 2007
Bus Evacuation Plan to Provide Way Home, but Details SketchyEven as they work to persuade residents without transportation to rely on government-sponsored buses and trains to evacuate during storms, local and state officials say they have yet to work out how they will get people back home, a point that could keep some residents hunkered down rather than risk being stranded hundreds of miles away. With hurricane season beginning Friday, a state transportation official said this week that a contract for the buses will include a provision for returning evacuees from Orleans and Jefferson parishes to four main staging areas. But the details of the contract, set to be awarded this week, remain uncertain. May 31, 2007
Whistleblower Suit Accuses Insurers of Overbilling Federal GovernmentA newly unsealed whistleblower lawsuit claims that at least eight major insurance companies in Louisiana and their adjusters are ripping off the federal government by over-billing the National Flood Insurance Program for Hurricane Katrina flood damage while stiffing homeowners on wind damage payments under their homeowners insurance policies. May 31, 2007
An ATM That’s Out of Money: As Housing Market Slips, Tide of Spending and Refinancing RetreatsFor a long time, Paul and Amy Woodhull’s house on Capitol Hill was a honey pot. Through multiple refinancings over nearly a decade, they pulled out money to fix it up, buy a car, pay down credit cards, buy three other properties and improve them, too. Now the pot is dry. The Woodhulls are feeling squeezed by bills, but with interest rates up and home prices down, they’re reluctant to touch their home equity again. They called their six children into a family meeting recently, and Amy laid down new rules: No more impulse purchases or frivolous shopping trips. “We’re going to have to save our pennies,” she declared. May 31, 2007
$5.2 Million To Help New Hampshire Recover From April Nor’eastern the one month that has passed since President Bush declared a major disaster for New Hampshire on April 27, more than $5.2 million in grants and low interest disaster loans have been approved to help New Hampshire residents recover, according to figures released today by the Federal Emergency Management Agency (FEMA) and New Hampshire Homeland Security and Emergency Management (HSEM). May 31, 2007
Optimistic Nagin Pledges City’s ReturnOffering unbridled optimism about a resilient New Orleans, Mayor Ray Nagin on Wednesday highlighted what he described as his administration’s myriad successes since Hurricane Katrina and lashed out at state and federal leaders, accusing them of failing to make good on promises to support the recovery. May 31, 2007
Housing Likely to Continue to FlailThe end of the real estate recession seems nowhere in sight, in light of a slew of bleak news Tuesday of falling sales and prices, a severe decline in construction and deep losses and layoffs at one of the nation’s largest builders. Sales of existing homes fell last month to their lowest point in five years, the National Association of Realtors says. The NAR says it expects more dismal figures for September as the housing market reels from the crisis in the mortgage industry.