Saturday, December 15, 2007

Senate Approves Measure to Make Housing More Affordable

WASHINGTON - December 14, 2007 - U.S. Senator Jeff Bingaman today said he is pleased the Senate has passed a bill that will make it possible for more New Mexicans to own homes.

The legislation expands the range of mortgage amounts eligible for Federal Housing Administration (FHA) backing. It also accounts for marketplace differences in housing prices making more people in expensive areas eligible for FHA loans and simplifies requirements for FHA loans for condos and manufactured houses. The bill also creates a pre-purchase counseling program and expands post-purchase counseling for homeowners who are having trouble making their mortgage payments.
The FHA Modernization Act of 2007 also reduces the down payment requirements and makes more people eligible for FHA loans in the hope that they won’t have to resort to subprime and other loans.

“Simply put, this legislation will make it possible for more New Mexicans to obtain federally-backed loans, rather than resorting to very risky loans so many Americans have taken out in recent years,” Bingaman said. “It will give homeowners some peace of mind.”

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source: realestaterama.com

Proposals Due Jan. 4 for Commercial Corridor Revitalization Program

Local Initiatives Support Corporation (LISC) is currently soliciting proposals for participation in the Commercial Corridor Revitalization Program (PCCR) from community development corporations (CDCs) and other nonprofit, neighborhood-based organizations that have demonstrated the interest and capacity to take a leadership role in the redevelopment of a specific neighborhood commercial corridor.

PCCR’s strategy is to work closely with local CDCs to strengthen their neighborhood markets by providing easily accessible tools and resources that aid in the development and implementation of comprehensive revitalization plans.

LISC will provide operating support grants of between $5,000 and $50,000 to organizations chosen through the RFP process. The grant’s purpose is to provide flexible dollars to support full-time commercial corridor practitioners, support staff and associated expenses related to corridor management and activities. The staff person must work exclusively on the commercial corridor program.

The term of the grant is for one year, beginning January 2008. Upon completion of the initial grant terms, programs that demonstrate timely reporting and that have met and/or exceeded performance measures will be invited to apply for multi-year funding.

The deadline for submission is January 4, 2008 at 1:00 PM. Proposals should include the completed Application Form and relevant documentation. Final selection and notification of the participant will take place by the end of January 2008.


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source: realestaterama.com

Bill Will Require Low-Cost Housing - Philadelphia Inquirer

Developers will be required to build affordable housing as part of every major residential project or contribute money toward that end under legislation City Council passed yesterday.

A divided Council approved Councilman Darrell L. Clarke’s inclusionary housing bill by a 12-5 vote, reflecting concerns raised by developers.

The bill is a first for Philadelphia, and it gained the support of the Philadelphia Campaign for Housing Justice, a coalition of housing advocates.

“The passage of the bill is a huge win for low- and moderate-income families struggling with the cost of housing across the city,” said Mary Ellis, a leader of the Association of Community Organizations for Reform Now.

Although the law cannot go into effect until Council passes companion legislation offering incentives to builders who must bear the financial burden of the program, developers condemned the requirement as a potential death knell for residential construction.

Developer John Westrum said the uncertainty of what those incentives would be - and how they would affect profitability - could prevent developers from obtaining the financing they need.

“Its passing will have a profound, adverse effect on any developer trying to start any new project over 20 units,” Westrum said. “Because the lending institution and lenders don’t know what the outcome will be.”

Under the legislation, the housing must target families making up to $90,000 a year, or 125 percent of the area’s median income. Clarke’s revised bill sets aside half of all units for sale or rent to families earning up to 80 percent of the median income. Developers unable to build such units must make payments to the city Housing Trust Fund. Half of that fund targets families making 30 percent or less of the median income.

In its final scheduled meeting of 2007 and of the four-year election cycle, Council also approved:

A bill making it a crime, punishable by up to 90 days in jail and a $1,900 fine, to display symbols of hate - defined as a noose, swastika or burning cross - in a workplace or public space.

Zoning required for a new Youth Study Center - the city’s juvenile detention center - in West Philadelphia.

One of two pieces of legislation required for the Fox Chase Cancer Center to begin an $800 million expansion over the next 25 years that includes building on a portion of Burholme Park.

A system to regulate the city’s tow-truck industry through a service-rotation list.

A requirement that stores program their cash registers to require a birth date to prevent the sale of spray paint and etching acid to minors, a move that Clarke requested.

A requirement that landlords provide carbon-monoxide detectors in rental units.

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source: realestaterama.com

The Hampshire Generational Fund Sells 80,000-Square-Foot Office Building in Rochelle Park, N.J.

Rochelle Park, N.J. - December 13, 2007 - The Hampshire Companies, a full service, private real estate investment fund manager with equity in assets valued at over $1.5 billion, recently announced the disposition of an 80,000-square-foot office building located at 216 Route 17 North in Rochelle Park, N.J. The sale was made to RTE17 Investment, LLC on behalf of The Hampshire Generational Fund, one of the firm’s private equity real estate investment funds tailored to high net worth investors.

The building is currently leased to the Bergen County Board of Social Services, who have occupied the building since 1989. Route 17 is one of the most desirable commercial and retail roads in Bergen County.

“We were able to maximize on market demands due to the credit worthiness of our tenant and the location of the building,” said Norman A. Feinstein, Executive Managing Director of The Hampshire Companies. “This transaction is evidence of our ability to read the marketplace and make sound decisions on our investors’ behalf.”

The Hampshire Generational Fund, LLC, is a commingled, discretionary real estate investment fund. The goal of the Fund is to deliver superior, above-market returns to its investors through the acquisition and operation of industrial, retail, and office products as well as an investor in other real estate funds.

About The Hampshire Companies
The Hampshire Companies is a full-service, private real estate investment fund manager based in Morristown, New Jersey. The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments in order to consistently outperform the market.

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Senate mortgage reform bill out

Dec. 14, 2007 - A Senate counterpart to the House-passed H.R. 3915 was introduced late Wednesday by Senate Majority Leader Harry Reid, D-Nev., on behalf of Senate Banking Chairman Chris Dodd, D-Conn., and a dozen more panel members.

The bill, S.2452, would revise the Truth in Lending Act to include a definition of “high cost” mortgage—governed by added disclosures under the Home Ownership and Equity Protection Act—in a manner similar to H.R. 3915, introduced by Rep. Barney Frank, D-Mass., and cleared by the House Nov. 15.

S.2452 includes consumer protections against yield-spread premiums, bars steering prime borrowers to more costly subprime loans, creates a fiduciary duty for mortgage brokers on behalf of borrowers and requires good faith and fair dealing by all lenders.

The measure, unlike H.R. 3915, also includes limited liability for holders of a mortgage made in violation of law, whether the violation was by the original lender or later by an investment trust. The borrower would be able to go directly to the mortgage holder to seek rescission and modification of loan terms.

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source: realestaterama.com