June

State Could be Required to Pitch in Up to $1 Billion for Road Home BailoutAs Louisiana’s $29.6 billion budget plan moves to the Senate without a dime for the state’s beleaguered homeowner rebuilding program, pressure continues to mount for Gov. Kathleen Blanco to direct at least some state money toward an impending Road Home deficit now pegged at as much as $5 billion by the state’s auditor. June 1, 2007
Appraisers Battle Use of Digitized SubstitutesA federal class action suit is focusing fresh attention on an issue that’s important to homeowners nationwide: Who - or what - tells you how much your property is worth? Is it a live human being? A digitized substitute? Does it really matter? A group of professional appraisers is suing a major mortgage technology firm, charging that it systematically takes their appraisal report information, warehouses it, and then markets it to lenders and developers of electronic substitutes for traditional appraisals. June 1, 2007
Disaster Recovery Center To Open In SalinaA Disaster Recovery Center will open at 1 p.m. Friday, June 1, in Salina, Saline County. The Salina Disaster Recovery Center located at 145 S. Broadway will be open until 7 p.m. the first day. After Friday, operating hours will be 9 a.m. to 7 p.m. seven days a week until further notice. Representatives from the Federal Emergency Management Agency (FEMA) will be in the Disaster Recovery Center to answer questions about registering for disaster assistance and hazard mitigation measures. Representatives of the U.S. Small Business Administration (SBA) will be there to help with the disaster loan applications process. Homeowners, renters and business owners in 17 Kansas counties designated for Individual Assistance are eligible for federal and state disaster aid to help Kansans recover from the tornadoes, severe storms and flooding of May 4-18. June 1, 2007
Barry Pushes Housing MeasuresD.C. Council member Marion Barry is pushing an ambitious legislative package to address the city’s lack of affordable housing, including a controversial rent-control bill that would protect low-income residents from losing their homes. Barry (D-Ward 8), chairman of the Housing and Urban Affairs Committee, is sponsoring five measures, which will be discussed at a public hearing Monday. June 1, 2007
Hurricane Model Will not be Used in LouisianaA controversial hurricane model that dramatically increases storm damage projections — and insurance rates — won’t be used in Louisiana after Florida refused to consider certifying it. “It will not be used going forward in my decision-making process and in my actuarial staff’s evaluations of rate filings,” Insurance Commissioner Jim Donelon said. “I would be surprised, in light of Florida’s action, if any company would continue to try to use it.” June 1, 2007
VT: Affordable Housing Plan in Manchester Moves ForwardA permit has been granted for the first affordable housing project to allow residents to own their homes since the town adopted an affordable housing plan in 1989. The project, a 20-unit development proposed by Manchester residents Joshua and Linda Wien, will include 12 units of affordable housing and eight units at market value. The Manchester Development Review Board voted to approve the project on May 23. June 1, 2007
‘A War for Space’ : Panels Mull Harlem DevelopmentThere’s not one but two conferences in Harlem this weekend that focus on displacement of longtime residents and call for building community alliances against gentrification. The First Convention of Tenants in Harlem, organized by the Mirabal Sisters Cultural and Community Center Inc., along with Assemblyman Keith Wright and other groups, will kick off with a discussion about Columbia University’s $7 billion, 17-acre West Harlem expansion and then have workshops on accessing government housing agencies, rent increases and lease issues. June 1, 2007
Fairfax (VA) Pushes Affordable Housing: County Commits $23 Million in ‘08Fairfax County’s push to provide more affordable housing in one of the nation’s wealthiest jurisdictions includes a commitment to spend nearly $23 million in the coming fiscal year and complete 2,200 units over the next four years. June 1, 2007
Help for Affordable Housing: Coalition Aims to save 75,000 Low-Cost Rentals by 2020This is one of the most comprehensive efforts to save low-cost rental housing nationally, its backers and outsiders say. The group, called the Preservation Compact, is a project of the Urban Land Institute and financed with $15 million from the MacArthur Foundation. Cook County has been losing low-cost rental housing since 1990, according to a DePaul University report commissioned by Compact. June 1, 2007
HUD KICKS OFF NATIONAL HOMEOWNERSHIP MONTHU.S. Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson will kick off National Homeownership Month at the National Press Club in Washington, DC, on June 4. Secretary Jackson will be the guest speaker at the Press Club’s Newsmaker Luncheon to discuss the importance of educating consumers about the homebuying process, helping those who are in trouble, and how legislation to modernize HUD’s Federal Housing Administration (FHA) could provide a safe, fair and affordable alternative to exotic subprime mortgages. June 4, 2007
State details $700M in Rescue Money for Road HomeGov. Kathleen Blanco has identified more than $715 million that the state could steer toward the impending Road Home deficit, and only a slice of it comes from the unallocated tax boon that lawmakers have been haggling over since they came into session last month. June 4, 2007
Real Estate Glossary: Closing CostsA catchall term for a number of transaction costs that home buyers and sellers have to pay at settlement, including taxes, recording fees, commissions, appraisals, legal fees, credit reports, homeowners insurance, pro-rated interest, points, surveys, inspections, title searches and title insurance. June 4, 2007
Reprisals on AppraisalsA federal class-action lawsuit is focusing attention on an issue that’s important to homeowners nationwide: Who — or what — tells you how much your property is worth? June 4, 2007
CA: Jackson seeks $675G for affordable housingWith only $160,000 sitting in its affordable-housing trust fund, the town is considering borrowing more than $600,000 to fund the Solar Avenue affordable-housing project, the township administrator said. A public hearing on a $675,000 bond ordinance is scheduled for June 12. The trust fund contains affordable-housing fees paid by builders. When asked why the balance is not higher in a town experiencing a building boom, administrator William Santos said some of the money has been used to rehabilitate homes for low- and moderate-income residents. June 4, 2007
SC: Two-year Feud between Landowner and Bluffton Might be Nearing an EndGarfield Moss’ relationship with the town of Bluffton has been a rocky one, fraught with disagreements over how to develop land in old town and accusations of racism. At each step of the process, Moss has been at odds with town leaders over what he can build on what is perhaps the largest undeveloped property owned by an individual in the historic district. June 4, 2007
Police Clash With Protesters At Affordable Housing RallyIt was supposed to be a rally to draw attention to safe, affordable housing for abused women in Toronto, but the initially peaceful stand took a nasty turn when police descended on anti-poverty protestors occupying an abandoned building at 4 Howard St in the Bloor and Sherbourne area. June 4, 2007
HUD Boss Wants Rules to Slow Subprime MessPresident Bush’s housing chief urged Congress on Monday to quickly enact legislation that he said could help stave off future distress for homeowners with high-risk mortgages without spending government money. Mortgage delinquencies and foreclosures have been surging, especially for people with tarnished credit or low incomes who took out high-priced home loans, known as subprime mortgages, during the housing boom that has turned into a slump. June 5, 2007
A Road That Led To National HarborThe $2 billion National Harbor project, a conglomeration of offices, retail stores, residences, and hotels with convention space, is the brainchild of Fairfax developer Milton V. Peterson, who has labored more than a decade to make it happen. Three years ago, when county officials began pressuring him to find local African American partners to ground the project further in Prince George’s County, the answer came to him — literally — one Saturday morning. June 5, 2007
HUD Appoints Public Housing Expert to Head Virgin Islands Housing AuthorityU.S. Housing and Urban Development Assistant Secretary Orlando Cabrera has appointed J. David Reeves, a HUD public housing expert, to lead the Virgin Islands Housing Authority (VIHA). Reeves replaces Michael Hollis as the Executive Administrator who led the agency for the past 16 months. June 5, 2007
FEMA Actions to Minimize Formaldehyde in Travel TrailersOf the 120,000 travel trailers and mobile homes in the gulf, 140 formaldehyde complaints have been received as of 5/23/2007. The agency sent inspectors into the field and switched out new units for trailers that were already ventilated, based on 30 years of housing industry experience that formaldehyde levels in housing decrease significantly with time and ventilation. FEMA distributed information to trailer occupants across the country explaining how persons sensitive to formaldehyde may be affected by its presence and laid out actions that should be taken to reduce exposure in the trailers. June 5, 2007
‘Flip This House’ Star Accused of Fraud and Faking Work on ShowOn an episode of A&E’s popular reality series Flip This House, Atlanta businessman Sam Leccima sits in front of a run-down house and calls buying and selling real estate his passion. Now authorities and legal filings claim that Leccima’s true passion was a series of scams that included faking the home renovations shown on the cable TV show and claiming to have sold houses he never owned. June 5, 2007
Demand Down, but Rents UpCommercial vacancy rates climbed in the Washington area for the fifth straight quarter, but rents rose slightly and industry experts remained upbeat. Overall, the Washington office market, which includes the District, suburban Maryland and Northern Virginia, recorded a vacancy rate of 10.1 percent in the first quarter, compared with 9.6 percent in the previous quarter and 8.9 percent in the first quarter of 2006, according to CoStar Group, a Bethesda-based research firm. June 5, 2007
Criteria Keep Affordable Housing EmptyAffordable housing is sitting vacant in Nevada County because the criteria required by city housing assistance programs and the funding for county programs is limiting the number of qualified families. Grass Valley leaders readily concede the city’s affordable housing program isn’t working, and at least one developer says until the program is improved, he won’t construct his single-family home project off of Bennett Street. June 5, 2007
Housing Deals Blasted; Mayor Defends AgencyHousing activists and some Miami leaders harshly criticized the city’s housing agency Monday, saying breakdowns and questionable deals are undermining one of the city’s most important lifelines to the poor. Reacting to a Miami Herald investigation Sunday revealing failures in the Department of Community Development, some called for an overhaul of the housing office while one requested a criminal investigation into a loan program that doled out millions to developers who failed to deliver the projects they promised — and in some cases never returned the money. June 5, 2007
OH: Disabled Man Fights Eviction at UA DormThe head of an Akron social service agency said she will file fair housing complaints today on behalf of a student with cerebral palsy who is to be evicted from a residence hall at the University of Akron. Rose Juriga, executive director of the Tri-County Independent Living Center in Akron, said she will file complaints with the Ohio Civil Rights Commission and U.S. Department of Housing and Urban Development over the unfair treatment she believes Bill Parsons, 33, of Cleveland, is receiving. June 5, 2007
Group Wants to Halt Allegheny County Sheriff SalesAn activist community group asked acting Sheriff William Mullen on Monday to halt the monthly public sales of foreclosed properties for at least six months. The Association of Community Organizations for Reform Now held a rally at the Allegheny County Courthouse to raise awareness about the high number of mortgage foreclosures in the county — 2,725 so far this year. June 5, 2007
Ranks of Ohio Mortgage Loan Officers ThinningThe number of loan officers licensed to do business in Ohio has fallen by nearly 18 percent since more stringent licensing requirements went into effect on Jan. 1. Ohio has seen an even steeper 21.9 percent decline in the number of licensed office locations operated by mortgage brokers since the first of the year, with 1,749 main and branch offices remaining as of June 4. June 5, 2007
Documentary Shows Plight of Americans Burdened by DebtIn recent years, documentary filmmakers have taken on the fast-food industry, the Bush administration and even shone a light on the competitive world of spelling bees. Now, “Maxed Out,” a film on DVD hitting store shelves this month, takes a look at Americans’ debt problems — and how much of the blame for them lies with the nation’s lending industry. June 5, 2007
Subprime Fiasco Exposes Manipulation by BrokeragesBloomberg study finds that since the beginning of 2006, more than 50 U.S. mortgage companies have put themselves up for sale, closed or declared bankruptcy. June 5, 2007
HUD Announces $100,000 Settlement of Fair Lending Complaint Against First Indiana Bank, N.A.The U.S. Department of Housing and Urban Development announced today that it has negotiated a $100,000 settlement with First Indiana Bank, N.A. (First Indiana), to resolve allegations of discrimination in mortgage lending. The agreement resolves a complaint filed in March 2007 by the National Community Reinvestment Coalition (NCRC) alleging that First Indiana discriminated on the bases of national origin and race by refusing to make loans on row houses or for less than $100,000 on any property. NCRC contended that the bank’s lending practices discriminated against Hispanics and African Americans because row houses valued under $100,000 are more heavily concentrated in African-American and Hispanic neighborhoods. June 6, 2007
FEMA Trains 700 Responders On Homeland Security Equipment At New Orleans ConferenceLast week, more than 700 emergency responders from 47 states and Puerto Rico traveled to New Orleans to receive training on equipment their departments will receive through the Department of Homeland Security (DHS) Federal Emergency Management Agencys Fiscal Year 2006 Commercial Equipment Direct Assistance Program (CEDAP). This included representatives from 19 departments who recieved accelerated training and equipment delivery because they were located in areas at high risk for hurricanes, tornados, or wildfires. June 6, 2007
Many Investors Feel Like Running Away from HomesFor-sale signs are sitting ignored in some cities. Interest rates on exotic loans are doubling. Insurance premiums and property taxes are skyrocketing. Wannabe real estate tycoons stuck with properties they can’t sell have been turned into landlords, forced to fix toilets and take tenant calls in the middle of the night. Many are “under water” — owing more on the mortgage than they could get by selling. June 6, 2007
Editorial: Affordable Housing gets More ComplexTucked into the news about the renovation of six Burlington buildings into affordable apartments were two bits of information that should concern anyone who wants to see housing in the city that remains within the reach of average Vermonters. The first is the recognition that more of household income — as much as 50 percent — is needed for even “affordable housing.” The second is the $4.4 million price tag for the project. June 6, 2007
Canada: Affordable Housing Shortage a CrisisJust how bad is this rental housing crisis? Real bad. How bad is this “affordable housing” crisis? Even worse. Going into 2006, says city housing director Jay Freeman, Edmonton had about 11,000 housing “units” that were, one way or another, subsidized or considered affordable housing. Of course they were 100% occupied by eligible low-income folks. The number of new affordable housing units built in 2006? About 200, says Freeman. June 6, 2007
Maryland: Affordable Dwellings Go to a Fortunate FewAs Howard County officials prepare to choose buyers for two heavily discounted new garage townhouses today, Patricia Tolson still is trying to get used to her good fortune. Tolson’s name was chosen at random from among 28 qualified applicants for the right to pay $200,000 for a 42 percent share of a large, renovated home on Columbia’s Pamplona Road — the same street where she grew up and where she and her 14-year old son, Anthony, have been living with her parents. June 6, 2007
Australia: Affordable Housing Bill PassesThe State Government says the supply of affordable housing in South Australia will increase with the passing of legislation by state parliament today. June 6, 2007
New Jersey: Urban Mayors Offer Housing PlanUrban mayors say the state must deliver more dollars for housing before they can support Assembly Speaker Joseph Roberts’ plan to scrap a program that allows suburban towns to pays cities and older suburbs to take on their affordable housing obligations. One suggestion the mayors will make today in Trenton: dedicate a portion of the state real estate transfer fee to finance affordable housing in the cities and suburbs. They also want a new commission to determine the state’s actual need for more low- and moderate- income housing. June 6, 2007
National Community Reinvestment Coalition & Lehman Brothers …The National Community Reinvestment Coalition, the nation’s leading trade association of community organizations committed to fair lending and healthy and sustainable communities, and Lehman Brothers today announced a three year commitment by Lehman Brothers, the global investment bank, to celebrate and sustain homeownership for all Americans. June 6, 2007
Realtors Lower Forecast for Home SalesA real estate industry trade group said Wednesday it expects sales of existing homes to drop 4.6 percent this year to 6.2 million. Two months ago, the group had predicted a 2.2 percent decline for the year. Sales of new homes are forecast to drop 18.2 percent to 860,000 compared with an earlier estimate of a 14.2 percent decline, the National Association of Realtors said in a statement. June 7, 2007
“New Desire” Public Housing to Open by JulyToday, the “New Desire” — or Abundance Square, as developers christened it — has transformed into a cluster of colorful, new shotguns and other single family homes, managed by a private company. The historic neighborhood, nearly obliterated by Hurricane Katrina, plans to re-open about 100 homes by July, the first in a planned total of 500 homes. June 7, 2007
HUD Secretary, N.O. Mayor to Open New Homes in Ninth WardU.S. Housing and Urban Development Secretary Alphonso Jackson joined Mayor Ray Nagin today to announce the rebirth of public housing in the city’s Ninth Ward, which endured the worst of Hurricane Katrina nearly two years ago. Jackson and Nagin made the announcement at the New Desire public housing community, where they opened the first of more than 500 new public housing, mixed-income rental housing and homeownership units that will be constructed at the site. June 7, 2007
HUD: Concept Home Represents the New American Dream during National Homeownership Month“With the PATH Concept Home, HUD has created a blueprint for the future of the American Dream by using innovative housing technologies that support our goals of sustainability, efficiency and flexibility in an affordable home,” said HUD Assistant Secretary Darlene F. Williams. “June is National Homeownership Month and we are excited to showcase a home that is affordable to purchase, maintain and renovate as families and their needs change over time.” June 7, 2007
President Declares Major Disaster For NebraskaThe 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 Nebraska to supplement state and local recovery efforts in the area struck by severe storms, flooding, and tornadoes during the period of May 4-19, 2007. June 7, 2007
Reviving a Birthplace of Civil RightsJ. W. Robinson, 80, remembers when the Sweet Auburn neighborhood in Atlanta was a mecca for aspiring African-American professionals like himself. Just out of college in the early 1950s, Mr. Robinson, a fledgling architect, used to frequent the stylish establishments along the 1.5-mile-long stretch of Auburn Avenue — among them the Royal Peacock, a nightclub that featured Ray Charles and well-known jazz performers of the day. June 7, 2007
D.C.: Fenty’s Relocation Plan Angers Some Temple Courts ResidentsMayor Adrian M. Fenty plans to empty the troubled Temple Courts housing complex and relocate the 211 families that live there, a decision that angers some residents, who see the action as a retreat from the city’s promise to rebuild the area without displacing tenants. June 7, 2007
Baltimore: West Side Remake GainsBaltimore’s spending board approved a land swap yesterday that will allow developers to move ahead with plans to revitalize a blighted swath of the west side with new apartments, shops and offices. The approval paves the way for the long-stalled superblock area in Baltimore’s old retail district to be developed by two teams - one led by a New York developer and the other a partnership between the Harry and Jeanette Weinberg Foundation and the Cordish Co. But the city still needs to obtain a key parcel now owned by a retailer who has vowed to hang on. June 7, 2007
The Supreme Court Legalizes Racist DiscriminationOn June 7, 1892, 115 years ago today, Homer Adolph Plessy sat down in a first-class car on the East Louisiana Railroad in New Orleans. When the 29-year-old shoemaker presented his ticket to the conductor, he said, “I have to tell you that, according to Louisiana law, I am a colored man.” The surprised conductor did his duty and told the well-dressed, well-spoken, light-skinned gentleman to remove himself to the “colored car,” the sooty accommodation just behind the engine whose wooden benches were reserved for Negroes, drunks, and derelicts. When Plessy refused to budge, he set in motion a legal case that would reach the U.S. Supreme Court and reverberate for decades. June 8, 2007
Rates on 30-Year Mortgages JumpRates on 30-year mortgages rose for a fourth straight week, hitting the highest level in 10 months, as bond markets responded to strong employment growth. Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.53 percent this week. That was up sharply from 6.42 percent last week and represented the highest point for 30-year mortgages since they averaged 6.55 percent on Aug. 10. June 8, 2007
Housing Slowdown Smacks Realtors HardIn many markets across the country, the glamour of the go-go days — when investors bought homes sight-unseen and lenders didn’t require down payments — are gone. In those areas now, the job of an agent is one of chasing leads, marketing like hell and chauffeuring hesitant buyers to open house after open house. June 8, 2007
President Declares Major Disaster For OklahomaThe head of the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) announced that federal disaster aid has been made available for the state of Oklahoma to supplement state and local recovery efforts in the area struck by severe storms, tornadoes, and flooding during the period of May 4-11, 2007. June 8, 2007
East Jefferson Levee Fixes DelayedLegal delays in awarding new construction contracts mean that a last round of interim fixes to further strengthen East Jefferson’s levee system may not all finish by the Aug. 1 start of the hurricane season’s three most potentially dangerous months, federal engineers confirmed this week. June 8, 2007
One City’s Home Sellers Do Better on Their OwnIt sounds like the setup for a dull economist’s joke. Who gets the better deal: the cautious economist who sells his house through a real estate agent, or his risk-taking colleague who finds a buyer on his own? But the question — debated by two Northwestern University economists who chose different methods to sell their homes — and the research it helped prompt are serious. And the answer will be of interest to anyone who has paused to consider whether paying a real estate agent’s commission, typically 5 to 6 percent of the sale price, is worth it. June 8, 2007
City Council Panel OKs Affordable Homes BillA bill designed to increase Baltimore’s stock of affordable housing by requiring it to be mixed into certain market-rate projects comfortably passed a City Council committee last night. Supported by a politically powerful coalition of religious groups, urban advocacy organizations and unions, the inclusionary housing legislation will go to the City Council, where it is expected to come to a vote within the next few weeks. June 8, 2007
Zanesville, OH: State AG rep addresses ID theft, predatory lendingWhile the skill game issue was the top area of concern for county commissioners during discussions with a representative from Attorney General Marc Dann’s office Thursday, John Sauter also touched on predatory lending and identity theft. When Sauter, the AG’s liaison to commissioners, sheriffs and prosecutors, brought up predatory lending and the connection with foreclosures, Commissioner John Bates said he was “alarmed” at the number of foreclosures in Muskingum County over the past year, approximately 510. June 8, 2007
Columbus, OH: Attorney general alleges appraisal inflation in lawsuitsTen mortgage brokers, including one in Austintown, are facing lawsuits for violating the state’s new consumer protection law. But one broker says the complaint arose from an appraisal issue shortly after the new law took effect, at a time when the industry was still working to understand its implications. And he said he was working with the state to review his files and was confident no wrongdoing would be found. June 8, 2007
South Africa: Save our bacon, say Wolmer groupThey said that if the Metro Council were to ignore the request and decide to sell council housing to black buyers only, it would boil down “to blatant discrimination in contradiction to the tenants’ rights to equality, housing and humanity, entrenched in the South African constitution”. June 8, 2007
Baltimore: Controversy Engulfs ApartmentsResidents of Strathmore Tower, a condominium in Upper Park Heights, are challenging the board’s decision not to have a Shabbat elevator. Over Memorial Day weekend, residents sent a petition to the condo association board calling for a special meeting to discuss the issue. In addition, a letter was sent to the board explaining the importance of the Sabbath elevator and asking it to reconsider its decision. June 8, 2007
Federal Home Loan Bank of Chicago Awards $10.5 Million in Affordable Housing GrantsThe Federal Home Loan Bank of Chicago has awarded approximately $10.5 million to help finance more than 2,300 affordable housing units located primarily in Illinois and Wisconsin through its Affordable Housing Program (AHP) competitive grant process. The Bank plans to award a second round of grants later this year. June 8, 2007
OH: P&Z Split on Affordable Housing RegulationsIt remains unclear if the Westport Planning and Zoning Commission will support changes to its affordable housing regulations, and two commissioners got into a heated debate tonight on the proposal. The commission was split 3-3 in a straw vote with one member abstaining on an application from Woodland Group, which would be applied to the Indian Hill and Bradley Lane area. No official vote was taken, but the commission may make a decision at its next meeting. June 8, 2007
Subprime Storm Winds Will Keep BlowingHome foreclosures in Minneapolis doubled in 2006 and are on pace to double again this year. The number of vacant buildings is rising in working-class neighborhoods with high levels of subprime loans. Some families are simply walking away from once-secure homes. “People are upside down; they owe more than their house is worth,” says Glennis Ter Wisscha, deputy director of Neighborhood Housing Services of Minneapolis, who counsels borrowers. Homeowners “can make it at the (initial) teaser rate, but the adjusted rate is going to go up $400, $800, $1,000 a month.” June 19, 2007
HUD Secretary Jackson Joins President for Signing of Critical Indian Housing LawU.S. Housing and Urban Development Secretary Alphonso Jackson today applauded The Native American Home Ownership Opportunity Act of 2007, signed into law today by President Bush. This legislation reaffirms the Administration’s commitment to increasing minority homeownership by guaranteeing private mortgage loans made to eligible Natives American families, tribes, and tribal housing entities. June 19, 2007
Class Action Alleges Home Equity TheftTwo Prince George’s families filed a class action lawsuit yesterday seeking to recover millions of dollars in home equity allegedly lost by hundreds of Maryland homeowners in a foreclosure-rescue scheme. The lawsuit, filed in Prince George’s County Circuit Court, claims to involve the single largest mortgage fraud in Maryland history and also seeks unspecified damages from six known and several unknown defendants. It indicates that criminal investigations are under way. June 19, 2007
New Homes Confront Old Burial GroundsDAC Enterprises, a small, mostly residential developer in Georgia, bought about 118 acres in Hall County, just south of the city of Lula, with the idea of selling lots to builders to put up single-family houses. The transaction, which was completed in 2004, seemed routine for the fast-growing exurb, 50 miles northeast of Atlanta. But it turned out that the developer was in for a surprise — one that he says cost him about $40,000. In one patch of the land, hiding beneath bushes and trees, was a cemetery — 22 graves dating to the mid-19th century, including one for Neverson Cook, a veteran of the War of 1812. Only two were marked with inscribed stones. June 19, 2007
NY: Homes for an ‘Overlooked Market’Along a once run-down street in the gritty south end of this city, a developer who says he is “on a mission” has broken ground on the Roosevelt at Franklin, a $14.5 million condominium development priced to attract middle-class buyers. The developer is Terrence Horton. He says the goal of his 13-year-old company, QFI, is to provide housing for those who earn too much to qualify for government-subsidized affordable housing but too little to buy one of the many luxury condominiums proliferating throughout southern Westchester these days. Among his potential customers are police officers, teachers and civil service workers. “They are a much-overlooked market,” Mr. Horton said. June 19, 2007
Real Estate Glossary: ‘Green’ BuildingA style of construction that takes into account the environmental impact of a project, in addition to budgetary and aesthetic considerations. It can be used for single-family and multifamily homes, as well as commercial buildings. June 19, 2007
Putting a Stop To a Credit RuseThe days may be numbered for dozens of Internet-based companies that promise to quickly boost FICO credit scores by 200 to 300 points. Fair Isaac, the developer of the widely used FICO score, plans to introduce key changes designed to derail schemes that transplant high-quality credit card histories to the files of people with low FICO scores. June 19, 2007
‘Funding’ a Living TrustQ: DEAR BOB: About two years ago, I set up a revocable living trust and included my checking, savings and stock brokerage accounts. I recently realized that the title to my condominium is not in my living trust. What must I do to place my condo into my living trust to avoid probate after I die? June 19, 2007
Home Builder Sentiment Index Hits Lowest Level in 16 YearsSentiment among U.S. home builders slid in June to the lowest level in more than 16 years as tighter lender practices and rising mortgage rates crimped sales, the National Association of Home Builders said Monday. The NAHB/Wells Fargo Housing Market index fell two points to 28 in June, the lowest since it hit 27 in February of 1991, the group said. June 19, 2007
New Hampshire: Nashua Still Waiting on HUD FundsGeorge Robinson is sitting on 41 assisted housing vouchers he’d love to give out. The vouchers enable the holders to get 70 percent of their combined rent and utilities paid with federal money, said Robinson, executive director of the Nashua Housing Authority. But to hand out the vouchers, he needs to first get the money from the U.S. Department of Housing and Urban Development. Congress approved the funds in February, but HUD has yet to disperse the money to local and state agencies, Robinson said. His agency is funded entirely by the federal money, he said. June 19, 2007
Housing Industry Still Looking for the BottomAs the housing market remains weak in many parts of the country, home builders are looking for a light at the end of the tunnel. The latest statistics on housing starts gave them only the faintest glimmer of hope. While there are some pockets of strength, it’s too soon to know when the industry will hit bottom, homebuilders and economists say. June 20, 2007
Kenya’s Middle-Class Home-Buying BoomOne recent Sunday, Paul Abeno, a mid-level computer sales executive, shuffled through aisles of brass cabinet pulls, colored tiles and tiny glass-encased models of three-bedroom homes landscaped with paper trees. He stared through the glass at Baobab Village. “Too late,” he said to himself, noting the sold-out sign. But there were other offerings at the third annual home expo here, and he wandered over to Acacia Court, Simba Villas and Green Park, three of the many new developments along the Kenyan capital’s edges. June 20, 2007
Housing Construction Down in MayConstruction of new homes fell in May as the nation’s homebuilders were battered by the crisis in subprime lending and rising mortgage rates. Housing, which is struggling through its biggest downturn in 16 years, is expected to continue to face troubles in the months ahead before starting to stage a sustained rebound in 2008. The Commerce Department reported Tuesday that construction of new homes and apartments dropped by 2.1 percent last month to a seasonally adjusted annual rate of 1.474 million units, 24.2 percent below the level of a year ago. The May decline was in line with expectations and reflected weakness in the South and West, which offset construction gains in the Northeast and Midwest. June 20, 2007
What’s Insured and What Isn’tA SURVEY by the National Association of Insurance Commissioners has found that many people believe their homeowners’ insurance covers losses that are not, in fact, covered. “We were a little surprised by the results,” said Sandy Praeger, Kansas’ insurance commissioner and the president-elect of the association. The survey found that 33 percent of the heads of household who have homeowners’ insurance incorrectly believe that damage from a flood would be covered by their policies. “We warn people every year that damage caused by flooding will only be covered if they have a separate flood insurance policy,” Ms. Praeger said. June 20, 2007
UB Seeks Luxury HousingHoping to enliven midtown Baltimore with new residences and shops while providing much needed parking for the University of Baltimore, the university and a private developer are proposing a $75 million luxury apartment project at West Mount Royal Avenue and West Oliver Street. The Fitzgerald would have approximately 280 market-rate units and 14,000 square feet of street-level retail and wrap around an 1,100-space garage that could be used by students, faculty and the public, said Toby Bozzuto, executive vice president of Bozzuto Development Co. June 20, 2007
You Found the Right Place — Trulia Alerts You at the Right TimeThe Web site Trulia.com allows you to set a “Trulia Alert” for any address in its national database, even if it is not listed for sale, and to receive an e-mail if that house goes on the market or if nearby properties are listed for sale or sold. Trulia is one of the brash upstarts in the online real estate world. The site launched in September 2005 and added Washington area properties in July. Last month, it was the 32nd-most-visited among 2,640 real estate sites, according to Hitwise.com, which compiles usage statistics. June 20, 2007
FEMA Announces Membership Of National Advisory CouncilFederal Emergency Management Agency (FEMA) Administrator David Paulison today announced the membership of the National Advisory Council. The council advises the Administrator of FEMA on all aspects of preparedness and emergency management in an effort to ensure close coordination with its partners across the country. “These experts in the field of emergency preparedness and response will bring new and unique perspective to the Department,” said Homeland Security Secretary Michael Chertoff. “We welcome their service and look forward to their valuable contributions and innovative ideas in emergency management.” June 20, 2007
HUD: More than 150 Communities and Organizations Sign on to Reduce Regulatory BarriersU.S. Housing and Urban Development Deputy Secretary Roy A. Bernardi today urged more than 100 state and local officials meeting in Louisville to cut excessive or unnecessary regulations that significantly increases the cost of housing for working families. During a conference on workforce housing, Bernardi issued HUD’s National Call to Action for Affordable Housing Through Regulatory Reform, an appeal designed to reduce or eliminate unnecessary regulations that price housing beyond the reach of millions of Americans. To date, The City of Bowling Green, Habitat for Humanity of Metro Louisville, and the Louisville Metropolitan Housing Coalition have all signed onto HUD’s “Call to Action.” June 21, 2007
Army Corps Maps Neighborhoods’ Flood Risks OnlineMany parts of New Orleans struck hardest by Hurricane Katrina remain vulnerable to flooding despite nearly two years of attempts to protect them, a study published Wednesday by the Army Corps of Engineers found. The assessment, laid out online in a series of neighborhood maps, is the first time the corps has identified in detail the areas that still face substantial danger from flooding. It shows a 100-year storm today would likely bury most of Gentilly and the Lower 9th Ward — two of the neighborhoods that suffered most after Katrina — under more than 8 feet of water. A 100-year-storm is one large enough that there is a 1% chance of it occurring in any year. June 21, 2007
Smith Unveils His BRAC ProposalBaltimore County Executive James T. Smith Jr. unveiled a plan yesterday that calls for steering new homes and businesses to sites along U.S. 40 in preparation for the expansion of regional military bases — and the influx of jobs and residents to come with it. The plan also recommends a look at expanding the Middle River MARC station and adding training programs to help middle and high school students to prepare to compete for jobs created by growth at Aberdeen Proving Ground and Fort Meade. June 21, 2007
Sale of Hospital Grounds Will Pave Way for HousingThe date was Feb. 27 — the last day 145 patients were housed at the dilapidated center before they moved to a gleaming, modern hospital down the road. Now, emptiness pervades the old complex, which sprawls over 100 acres of winding roads, towering willows and overgrown grass. Soon the hospital will be gone, most likely replaced by private residences in one of the largest development projects in Essex County in some time, said James Paganelli, executive director of the county improvement authority. June 21, 2007
Upon Closer Inspection …With the Right Person to Spot A Home’s Flaws, You May Avert a Disastrous DealPhillip Carls, a home inspector, shimmies up the aluminum ladder and scales the roof, checking gutters and shingles and craftsmanship. Beads of perspiration roll down his forehead, and his exposed legs are full of fresh scrapes. In no time, he’s inside the empty, newly built house in Bowie, flipping light switches, opening and shutting doors, peeking underneath a sunken tub with a mirror, examining the electrical wiring in the dishwasher, climbing into a 98-degree attic. June 21, 2007
FEMA Housing Deadline March 2009: Options Still AvailableNearly 30,000 Mississippi families have moved out of temporary travel trailers and mobile homes and on with their personal recovery. The deadline for temporary housing assistance from the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) is extended until March 2009 and help remains available for those who need it. June 21, 2007
Tale Of Two Mississippi Coast Cities, Two Visions For RenewalRecovery of Mississippi Gulf Coast towns and cities from Hurricane Katrina is a collage of realities and dreams, of traditions and new development, of private finance and federal assistance. Optimism about the future binds the communities; it’s the common denominator of the recovery story in this state. Renewal promises a very different Long Beach, an improved way of life for Ocean Springs. The future of each city will be shaped by the vision of its leaders. June 21, 2007
Ground Rent Suit is FiledA trustee for a ground rent owner has filed a lawsuit challenging the constitutionality of new laws intended to reform a system that had cost hundreds of people their homes. In the suit filed in Anne Arundel County Circuit Court, Charles Muskin seeks a temporary restraining order and preliminary injunction to block measures that end ejectment - the seizure of a property for nonpayment of ground rents - and require a registry of ground rents. June 26, 2007
In Tacoma, Recreating Public HousingWHEN Wendy and Michael Dinon decided to buy their first home, they focused on new construction near downtown Tacoma, Wash., where Mr. Dinon works as an index analyst for the Russell Investment Group. Last October, the couple, who have a 2 ½-year-old daughter, Milly, found what they were looking for: an affordable three-bedroom house in the Salishan neighborhood, two miles east of downtown. June 26, 2007
HUD: Jackson Appeals to Nation’s Mayors to Cut Red Tape Choking Workforce HousingAll across the country, unnecessary regulations are pricing housing out of reach of millions of working families, said U.S. Housing and Urban Development Secretary Alphonso Jackson in an address to the U.S. Conference of Mayors, where he called on America’s urban leaders to cut excessive or unnecessary regulations that can drive up housing costs by as much as 35 percent. Jackson issued HUD’s National Call to Action for Affordable Housing Through Regulatory Reform to encourage local communities to join more than 150 communities and organizations that have agreed to reexamine their regulations and, where necessary, reduce or eliminate barriers that effectively drive up the cost of housing beyond the reach of millions of Americans. June 26, 2007
D.C.: Fewer Low-Income Residents Are OwnersThe number of low-income families obtaining mortgages to buy houses in the District has plummeted the past decade as property values have soared and the city has attracted more affluent residents, according to a new study. Ten years ago, 17 percent of District home buyers were low-income, which the study, by the Urban Institute, defines as a family of four with an income of $45,000 or less in current dollars. In 2005, the most recent year for which data were available, that rate had slipped to just over 4 percent, the study found. June 26, 2007
Know Which ‘Junk Fees’ to TrashQ: I have a few questions about mortgage closing costs, “junk fees” in particular, such as document prep, origination, underwriting and processing fees. I will be closing on a home in a few weeks. I am getting my mortgage through a bank and have a credit score of more than 800. If I see those junk fees on the final papers, how can I successfully justify having them removed? June 26, 2007
Home Sales Hit Slowest Pace in 4 YearsWith buyers jittery and mortgages harder to get, sales of existing homes fell in May to a four-year low, and the median price dipped for the 10th straight month, the National Association of Realtors said Monday. There’s no relief in sight for sellers for at least a few months, because the inventory of homes for sale has swollen to an 8.9-month supply, the highest in 15 years. Homeowners will likely have to cut prices further to entice buyers. June 26, 2007
Mitigation Model House Demonstrates Better Building Techniquesuilding better, stronger and safer is the key line of attack Louisiana residents are advised to consider when rebuilding or mitigating their properties. With disaster resistance in mind, the Federal Emergency Management Agency (FEMA) developed a Mitigation Model House to showcase advanced building techniques. The Mitigation Model House plays an important role in educating the public about stronger, more storm-resistant structures needed in coastal areas. By exceeding state and local building codes, the model house demonstrates a “code plus” approach for home and business owners to decrease chances of major structural damage from wind or water. June 26, 2007
No Sign Yet That Housing Market has Hit BottomWith the pace of home sales and prices continuing to head lower in May, it’s too soon to say how much longer the worst housing recession since 1989-91 will last, according to economists and housing analysts. Nationwide, sales fell 0.3 percent in May while the median price dropped 2.1 percent from a year ago to $223,700 — the 10th consecutive month of year-over-year declines, according to the National Association of Realtors. Inventories of unsold homes are at their highest level in 15 years. June 26, 2007
Baltimore: World’s Grand Avenues Shape Visions of Pratt StreetWill Baltimore’s Pratt Street ever be the equivalent of Chicago’s Michigan Avenue or New York’s Fifth Avenue, or perhaps even the Avenue des Champs-Elysees in Paris? Or are they the wrong images to hold out? Those questions came up during a recent presentation by architects from Ayers Saint Gross and others hired this year to come up with ideas for strengthening 16 blocks of Pratt Street as a destination for tourists and residents. June 26, 2007
Questions Your Broker Can’t AnswerFighting discrimination in real estate is hardly new in New York City, but it has become a hot topic lately. The renewed focus was sparked mainly by a complaint filed last fall that brokers in the Brooklyn Heights office of the Corcoran Group had engaged in racial steering. Corcoran denies the charges, which are pending before the federal Department of Housing and Urban Development. In addition, a proposed city law that would require co-op boards to provide, in writing, their reasons for rejecting a potential buyer, also has board members and brokers reviewing precisely what constitutes discrimination. June 26, 2007
Home Builder Lennar Falls Short with Q2 LossOne of the nation’s leading home builders, Lennar (LEN) said Tuesday it fell to a second-quarter loss as it managed high inventories amid dropping real estate prices and warned that it would likely post a loss in the third quarter. “As we look to our third quarter and the remainder of 2007, we continue to see weak, and perhaps deteriorating, market conditions,” Lennar President and Chief Executive Stuart Miller said. June 27, 2007
D.C.: YWCA Tenants Complain of Bedbugs, MoldVera Arrington says she can’t enjoy a full night’s sleep because her bed is home to a colony of bedbugs. Antonia Manthus says her repeated pleadings to fix her broken air conditioner have been to no avail. At the historic Phyllis Wheatley YWCA in the District’s Shaw neighborhood, they and other residents complain of persistent problems with water service, mold, mildew and poor ventilation. June 27, 2007
Board Approves Smaller Increases in Stabilized RentRents for the one million rent-stabilized apartments in New York City can rise by up to 5.75 percent over the next two years, the city’s Rent Guidelines Board voted last night in a meeting that was marred by disruptions but was more orderly than last year’s gathering. The board voted 5 to 4 to allow increases of 5.75 percent on two-year leases and 3 percent on one-year leases. The rent board did not make a separate adjustment for tenants who pay their own heating bills, as they had the previous four years. June 27, 2007
New U.S. Home Sales Slide in Mayales of new homes fell in May for the fourth time in the past five months, providing further evidence of a continued slump in housing. The Commerce Department reported Tuesday that sales of new single-family homes dropped by 1.6 percent last month to a seasonally adjusted annual rate of 915,000 units. That followed a 12.5 percent surge in April sales, which was the biggest one-month jump in more than a decade. June 27, 2007
Midwest New-home Sales Rise 30.8% in May, Bucking National TrendSales of new homes in the Midwest rose a robust 30.8% in May, while sales in other parts of the nation shriveled, according to a Commerce Department report today. In May, 153,000 new homes were sold, up from 117,000 in April in the Midwest. But as compared to May 2006, new home sales dropped 14.5% in the Midwest. June 27, 2007
Metal Roofs for Cooler HouseQ: I need to replace my roof and I read your previous column that indicated metal roofs qualify for an energy tax credit. Are metal roofs worth the extra cost? How do they conserve energy? June 27, 2007
Village a Rare Opportunity for FamiliesFor 47 families, hope is where the Hart Village is taking shape. What once was a run-down chunk of land at the southwest corner of Hart Street and Owensmouth Avenue is morphing into a 47 unit complex of two- and three-bedroom apartments. It will open this summer. “It was really an under-utilized site and it was really a blight on the neighborhood,” said Robin Hughes, director of the Los Angeles Community Design Center, which is developing the project and will manage it. June 27, 2007
Cottage Living: Our Top 10 Cottage Communities for 2007Each year we look for neighborhoods we’d like to call home. Our 2007 favorites have charming cottages, a sense of community, and an eye on the future. June 27, 2007
From the Better Business Bureau: Homebuyers, Beware of Predatory LendersThe horror stories about victims of predatory lending are everywhere in the media these days. Abusive or “predatory” lenders target people who are “house rich, but cash poor,” that is, consumers who have built up a lot of value in their homes, but do not have much available cash. The types of loans offered usually have sky-high interest rates and fees. June 27, 2007
Court Demands Affordable-Housing RulesA state appeals court judge has given the Corzine administration until Dec. 31 — two months less than it asked for — to finalize a for mula for determining how much affordable housing suburban and rural towns must provide. The deadline is expected to spark a scramble to develop complex new rules for estimating how many houses and apartments are needed for low- and moderate-in come families, and for deciding the obligations of as many as 190 towns to provide them. June 27, 2007
Realtors(R) Call for Responsible Lending Policies With Increased Consumer ProtectionThe National Association of Realtors(R) testified today that abusive lending problems are national problems and require solutions that afford the homebuyer greater protection. NAR noted that irresponsible and abusive lending, and “problematic” loans, is disastrous not only to borrowers and their family but also to the community, and to the economic strength of those and surrounding communities. June 26, 2007
City Payout to Brooklyn Family Largest Ever in Lead PoisoningA Brooklyn family whose 19 children suffered lead poisoning while living in city-subsidized housing was awarded more than $12 million in what officials say is the largest lead-paint payoff in state history.“We’re at peace now,” said Rachelle Scott, whose two children, three siblings and 14 nieces and nephews were irreversibly harmed from eating lead paint between 1981 and 1994 in city-paid housing. “We’ve had enough aggravation. We have lots of closure.” June 28, 2007
HUD Celebrates 73rd Anniversary of FHAThe U.S. Department of Housing and Urban Development (HUD) celebrated the 73rd anniversary of its Federal Housing Administration (FHA) today at HUD Headquarters. HUD Deputy Secretary Roy Bernardi joined Assistant Secretary for Housing-FHA Commissioner Brian Montgomery to discuss FHA Modernization, the importance of providing housing counseling programs to prospective homebuyers, and the need for Congress to pass legislation to let FHA make the American Dream a reality for more families. June 28, 2007
Disaster Recovery Centers To Open In Holt And Andrew CountiesState and the U.S. Department of Homeland Securitys Federal Emergency Management Agency (FEMA) announce the opening of a Disaster Recovery Center (DRC) in Mound City for people affected by the severe storms and flooding that occurred May 5  18, 2007. June 28, 2007
Parishioners Lose Battle to Buy Church BuildingMaryland’s Court of Special Appeals has ended a lengthy effort by former parishioners of a Fells Point church to spare their old sanctuary from redevelopment and turn it into a Slavic heritage museum.Early last year, a grass-roots group - members of the closed St. Stanislaus Kostka Roman Catholic Church - sued the Franciscan friars who own the South Ann Street building. The group claimed that the friars reneged on a deal to sell the building to them, giving it instead to developers with plans to expand a nearby parochial school and build townhouses. June 28, 2007
State to Pay Top Dollar for LandState and local officials have agreed to pay $5 million to buy an Eastern Shore farm from a member of Gov. Martin O’Malley’s transition team - a price nearly $1 million higher than appraisals suggest the land is worth. The 270-acre property in Grasonville is part of a larger parcel owned by U.S. Land Alliance, a for-profit land-conservation company. David Sutherland, who served on O’Malley’s Transition Work Group on Environment and Natural Resources, is the company’s founder and president. June 28, 2007
Oregon: County Residents Max Out Housing Assistance as Rents RiseIn Washington County, 7,000 people are waiting for public housing or Section 8 voucher assistance. Those residents, about 99 percent of whom are scraping by on an income of $15,636 or less a year, will wait between four to six years for the assistance, said Susan Wilson, director of Washington County’s Department of Housing Services. June 28, 2007
Subprime Lenders Keep Churning Out Bad LoansThis week, the Center for Responsible Lending examined subprime loans included in recent mortgage-backed securities (subprime loans that are bundled together and sold as investments on Wall Street). They found these securities—consisting overwhelmingly of mortgages made in 2007—contained a high share of subprime loans with terms that have been key drivers in the current epidemic of foreclosures. In Congress, Senators Charles Schumer, Bob Casey and Sherrod Brown have introduced legislation with strong provisions would help rein in predatory and abusive lending in the subprime market. Mike Calhoun, President of CRL, was among those testifying at a Senate hearing held yesterday to air views on this legislation. For more details on the persistence of abusive subprime loans and solutions for cleaning up the subprime market, read his testimony. June 29, 2007
House Democrat Proposes Affordable Housing Trust FundLow income U.S. families will benefit from billions of dollars in fresh funds that will build and preserve affordable homes under a bill introduced Thursday, the legislation’s sponsor said. The bill establishes the National Affordable Housing Trust Fund, which would receive an infusion of funds from mortgage finance companies Fannie Mae FNM.N and Freddie Mac FRE.N as well as new revenue from an existing program for home loan insurance. June 29, 2007
KB Home Posts Q2 Loss Based on Major ChargeKB Home (KBH) said Thursday it swung to a loss in the fiscal second-quarter, as the home builder booked a major charge to write down inventory amid declining demand and lower prices for homes.KB reported a loss of $148.7 million, or $1.93 a share, for the period ended May 31. A year ago, the company posted net income of $205.4 million, or $2.45 a share. The latest period included a pretax charge of $308.2 million to reflect the decreased value of unsold homes on its books, and walking away from deposits on land it no longer wants to buy. June 29, 2007
Mortgage Rates Edge Down Slightly AgainRates on 30-year mortgages dipped slightly this week, the second decline after five weeks of increases.The mortgage company Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.67 percent this week, compared with 6.69 percent last week. Rates had hit an 11-month high of 6.74 percent two weeks ago. June 29, 2007
Cumberland Rides a Mini-boomHome prices in the Baltimore metro area? Up 5 percent. In the Washington area? Barely budging. In San Diego, Tampa, Las Vegas and several dozen other metros areas? Down, down, down. But in this corner of Appalachia - in this long-struggling, geographically isolated metro area - home prices have just shot up 17 percent. June 29, 2007
City’s Plans for Housing Flop in AlbanyThe bill looked like a shoo-in to pass. After nearly a year of painstaking analysis and tough negotiations, the Bloomberg administration, the City Council, housing advocates, lenders and real estate developers had hashed out a measure intended to revamp a popular tax-break program so it would generate more relatively affordable housing while restricting subsidies to luxury high-rises like Trump World Tower. It was all done with a minimum of grousing. June 29, 2007