What's At Stake?
Reprint for National Association of Realtors Action Center
Pass the Emergency Economic Stimulus Act
A SUMMARY OF THE PROPOSED ECONOMIC STABILIZATION ACT WHAT’S AT STAKE FOR REALTORS
The House has defeated the Emergency Economic Stabilization Act (EESA) on a vote of 205 – 228. NAR supported the package. Media reports about it did not present the case for the many ways it would have supported the real estate industry.
The summary below presents all the bill’s provisions, condensed into some general subject headings. Many of these provisions are likely to survive in whatever legislation comes next.
Help Homeowners and Borrowers: The legislation responded to the criticisms that lenders have been slow and/or unwilling to work with homeowners and borrowers. It encouraged negotiation in short sales and consumer efforts to refinance or reconfigure existing mortgages:
When the Treasury (or other federal agency that holds mortgages) acquires troubled existing mortgages from financial institutions, agencies are required to work with lenders and mortgage servicers to find ways to avoid foreclosures.
All federal agencies are required to work with servicers to facilitate loan modifications that will consider the net present value of the mortgage.
Similar refinancing and foreclosure prevention requirements apply to mortgages involving owners of multi-family properties. Policy goal is to assure that tenants don’t lose their residence when an owner has problems with the mortgage.
Changes to existing mortgages can include (but are not limited to) revisions in principal, interest rate and period for repayment.
Get Money into the Financial System Quickly: The credit markets are nearly frozen. Lenders can’t lend because they are receiving no payments on existing loans. The legislation allowed the government to buy troubled loans and mortgage securities. The funds that the institutions received when the government purchased the existing portfolios were to be available to issue new mortgages with more carefully specified and monitored lending standards. Provisions include:
Create a Troubled Asset Relief Program (TARP) to purchase and guarantee the troubled assets from the financial institutions that hold mortgages and/or mortgage-backed securities.
A new Office of Financial Stability within the Treasury to operate TARP, with input from the Federal Reserve, Federal Deposit Insurance Corp (FDIC – the agency that works with failed and failing financial institutions to insure and protect consumers), the Comptroller of the Currency (bank regulator), Office of Thrift Supervision (regulator of former savings and loan companies) and the Secretary of Housing and Urban Development.
Timing for TARP purchases designed to assure that all the authorized $700 Billion is not released at one time.
First release of funds to purchase troubled assets will be $250 Billion. Second release of up to $100 Billion must be authorized by the President. Final $350 Billion can be issued only on Congressional approval. Congress given 15 days to act.
Follow, Protect and Watch Over the Money: Congress will keep a tight rein on TARP. Congress will have the assistance of numerous agencies charged with specific tasks and reporting responsibilities.
TARP Oversight Board at Treasury -- monthly activity reports to Congress.
Secretary of Treasury -- detailed reports to Congress for each $50 Billion in transactions as the transactions are completed.
Government Accountability Office (Congress’s auditor) -- financial reports about TARP activities every 60 days.
Judicial Review -- Federal courts may issue injunctions when there is a finding that the Secretary of the Treasury has acted in a manner that is arbitrary, capricious or outside the law.Create a new Inspector General (IG) for TARP. An IG might be viewed as the “cop on duty” who has authority to investigate TARP’s activities. IG will make quarterly reports to Congress.
Appoint a Congressional Oversight Panel – receive and process all these reports to keep Congress apprised of the state of financial markets, activities of the regulatory system and the use of TARP’s asset acquisition and disposition authority.
Federal Reserve -- provide reports to Congress on utilization of the lending authority created earlier this year. That authority was intended to assist ailing financial institutions.
Put Brakes on the Bad Guys: Congress wanted to curtail perceived “bad acts” of executives who made big bets and lost.
Assure that skilled asset managers who buy and sell TARP assets have no conflicts of interest with prior employers or firms.
No golden parachute or severance payments to executives of companies that sell assets to TARP. If a company that sells assets to TARP does make any post-employment payments (other than retirement compensation), the executive (not the company) must pay a 20% excise tax.
If a company sells assets to TARP, then no tax deductions for salary or other compensation will be allowed if a worker’s compensation package is more than $500,000.
All financial regulatory agencies are required to cooperate with the FBI in its investigations of fraud, misrepresentation or malfeasance in the selling or advertising of financial products.
Give the Taxpayers a Stake in the Profits: Historically, when the government has intervened to shore up a company’s or government’s financial dealings (such as the loan guarantees made to Chrysler and the aid given to New York City during a fiscal crisis), the long-term effect has been that the government has made money back on the deal. The legislation provided an “upside” benefit for taxpayers:
Any profits generated when the government subsequently sells TARP assets would be used to pay down the national debt.
The government will receive warrants in the companies that participate in TARP. The warrants are similar to stock, but do not grant any voting authority to the government. If the participating company pays dividends at some future time, the warrants would allow the government to receive the dividend. Similarly, if the government sells its stake in the company, the warrants would entitle the government to any appreciation.
Recoup What’s Still Owed: If, after five years from the date of enactment (the date the President signs a bill), the program has lost money, the sitting President will be required to present a plan to Congress for ways to recover the funds from the financial institutions that benefited from the TARP relief.
Tuesday, September 30, 2008
Monday, September 29, 2008
$700B Bailout Could Be Less When Assets Sold
The 700 Billion Dollar Bail Out
By Scott Martin
Premier Mortgage Group an Affiliated Company of Cherry Creek
As you have probably heard, the U.S. Treasury Department is working on a plan to allow the federal government to buy troubled assets (primarily bad mortgages) from private companies.
Although we don’t yet know all the details of the Treasury Department’s bailout plan, we do know that SOMETHING is being done, and that has brought some calm to the financial markets.
The mortgage backed securities markets have been in a vicious circle of “de-leveraging.” In other words, If a market participate wants to de-leverage their assets, they will begin to sell Mortgage Backed Securities (MBS – or Mortgage Bonds). If too many market players sell at the same time, it will drive down the price. This can sometimes create a panic with other MBS sellers. The more sellers that try to sell drives the price even lower. And the lower the price of the mortgage bond, the HIGHER the interest rate – which translates DIRECTLY to a higher rate for new mortgages.
The Treasury’s plan will break that circle and allow normalcy to return to the mortgage markets. That mean better and more stable interest rates, and more available liquidity. In fact, we’re already seeing a more stable and calm Wall Street.
The Cost;
The final cost can’t be determined for years. But first it’s important to note that the Feds may not spend all $700 billion. Some economist estimate that there may not be that much to be bought.
Some banks won’t want to sell, believing they can do better themselves. Some of the bad debt has already been written off.
ALSO, for every bad mortgage Uncle Sam buts, there is a house that comes with it. Sooner or later the they will SELL that house and recoup some of their costs.
Scott MartinPremier Mortgage Groupan Affiliated Company of Cherry Creek MortgageMortgage Broker License # MB 100019187direct line (303) 302-3901fax (303) 449-4455cell (303) 941-7287
By Scott Martin
Premier Mortgage Group an Affiliated Company of Cherry Creek
As you have probably heard, the U.S. Treasury Department is working on a plan to allow the federal government to buy troubled assets (primarily bad mortgages) from private companies.
Although we don’t yet know all the details of the Treasury Department’s bailout plan, we do know that SOMETHING is being done, and that has brought some calm to the financial markets.
The mortgage backed securities markets have been in a vicious circle of “de-leveraging.” In other words, If a market participate wants to de-leverage their assets, they will begin to sell Mortgage Backed Securities (MBS – or Mortgage Bonds). If too many market players sell at the same time, it will drive down the price. This can sometimes create a panic with other MBS sellers. The more sellers that try to sell drives the price even lower. And the lower the price of the mortgage bond, the HIGHER the interest rate – which translates DIRECTLY to a higher rate for new mortgages.
The Treasury’s plan will break that circle and allow normalcy to return to the mortgage markets. That mean better and more stable interest rates, and more available liquidity. In fact, we’re already seeing a more stable and calm Wall Street.
The Cost;
The final cost can’t be determined for years. But first it’s important to note that the Feds may not spend all $700 billion. Some economist estimate that there may not be that much to be bought.
Some banks won’t want to sell, believing they can do better themselves. Some of the bad debt has already been written off.
ALSO, for every bad mortgage Uncle Sam buts, there is a house that comes with it. Sooner or later the they will SELL that house and recoup some of their costs.
Scott MartinPremier Mortgage Groupan Affiliated Company of Cherry Creek MortgageMortgage Broker License # MB 100019187direct line (303) 302-3901fax (303) 449-4455cell (303) 941-7287
Wednesday, September 24, 2008
Is this the end?
Reprint:
Commentary: Bailouts will lead to rough economic ride
By Ron PaulSpecial to CNN
Editor's note: Ron Paul is a Republican congressman from Texas who ran for his party's nomination for president this year. He is a doctor who specializes in obstetrics/gynecology and says he has delivered more than 4,000 babies. He served in Congress in the late 1970s and early 1980s and was elected again to Congress in 1996. Rep. Paul serves on the House Financial Services Committee.
(CNN) -- Many Americans today are asking themselves how the economy got to be in such a bad spot.
For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.
Unfortunately, the government's preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.
Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.
Government-sponsored enterprises Fannie Mae and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government.Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.
These governmental measures, combined with the Federal Reserve's loose monetary policy, led to an unsustainable housing boom. The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.
When interest rates are lowered to below what the market rate would normally be, as the Federal Reserve has done numerous times throughout this decade, it becomes much cheaper to borrow money. Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable.
Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand.
In this case, this manifested itself in overbuilding in real estate. When builders realize they have overbuilt and have too many houses to sell, too many apartments to rent, or too much commercial real estate to lease, they seek to recoup as much of their money as possible, even if it means lowering prices drastically.
This lowering of prices brings the economy back into balance, equalizing supply and demand. This economic adjustment means, however that there are some winners -- in this case, those who can again find affordable housing without the need for creative mortgage products, and some losers -- builders and other sectors connected to real estate that suffer setbacks.
The government doesn't like this, however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.
I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay.
Additionally, the government's actions encourage moral hazard of the worst sort. Now that the precedent has been set, the likelihood of financial institutions to engage in riskier investment schemes is increased, because they now know that an investment position so overextended as to threaten the stability of the financial system will result in a government bailout and purchase of worthless, illiquid assets.
Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.
The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.
It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations that allowed the boom to form in the first place.
The government must divorce itself of the albatross of Fannie and Freddie, balance and drastically decrease the size of the federal budget, and reduce onerous regulations on banks and credit unions that lead to structural rigidity in the financial sector.
Until the big-government apologists realize the error of their ways, and until vocal free-market advocates act in a manner which buttresses their rhetoric, I am afraid we are headed for a rough ride.
The opinions expressed in this commentary are solely those of the writer.
Commentary: Bailouts will lead to rough economic ride
By Ron PaulSpecial to CNN
Editor's note: Ron Paul is a Republican congressman from Texas who ran for his party's nomination for president this year. He is a doctor who specializes in obstetrics/gynecology and says he has delivered more than 4,000 babies. He served in Congress in the late 1970s and early 1980s and was elected again to Congress in 1996. Rep. Paul serves on the House Financial Services Committee.
(CNN) -- Many Americans today are asking themselves how the economy got to be in such a bad spot.
For years they thought the economy was booming, growth was up, job numbers and productivity were increasing. Yet now we find ourselves in what is shaping up to be one of the most severe economic downturns since the Great Depression.
Unfortunately, the government's preferred solution to the crisis is the very thing that got us into this mess in the first place: government intervention.
Ever since the 1930s, the federal government has involved itself deeply in housing policy and developed numerous programs to encourage homebuilding and homeownership.
Government-sponsored enterprises Fannie Mae and Freddie Mac were able to obtain a monopoly position in the mortgage market, especially the mortgage-backed securities market, because of the advantages bestowed upon them by the federal government.Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.
These governmental measures, combined with the Federal Reserve's loose monetary policy, led to an unsustainable housing boom. The key measure by which the Fed caused this boom was through the manipulation of interest rates, and the open market operations that accompany this lowering.
When interest rates are lowered to below what the market rate would normally be, as the Federal Reserve has done numerous times throughout this decade, it becomes much cheaper to borrow money. Longer-term and more capital-intensive projects, projects that would be unprofitable at a high interest rate, suddenly become profitable.
Because the boom comes about from an increase in the supply of money and not from demand from consumers, the result is malinvestment, a misallocation of resources into sectors in which there is insufficient demand.
In this case, this manifested itself in overbuilding in real estate. When builders realize they have overbuilt and have too many houses to sell, too many apartments to rent, or too much commercial real estate to lease, they seek to recoup as much of their money as possible, even if it means lowering prices drastically.
This lowering of prices brings the economy back into balance, equalizing supply and demand. This economic adjustment means, however that there are some winners -- in this case, those who can again find affordable housing without the need for creative mortgage products, and some losers -- builders and other sectors connected to real estate that suffer setbacks.
The government doesn't like this, however, and undertakes measures to keep prices artificially inflated. This was why the Great Depression was as long and drawn out in this country as it was.
I am afraid that policymakers today have not learned the lesson that prices must adjust to economic reality. The bailout of Fannie and Freddie, the purchase of AIG, and the latest multi-hundred billion dollar Treasury scheme all have one thing in common: They seek to prevent the liquidation of bad debt and worthless assets at market prices, and instead try to prop up those markets and keep those assets trading at prices far in excess of what any buyer would be willing to pay.
Additionally, the government's actions encourage moral hazard of the worst sort. Now that the precedent has been set, the likelihood of financial institutions to engage in riskier investment schemes is increased, because they now know that an investment position so overextended as to threaten the stability of the financial system will result in a government bailout and purchase of worthless, illiquid assets.
Using trillions of dollars of taxpayer money to purchase illusory short-term security, the government is actually ensuring even greater instability in the financial system in the long term.
The solution to the problem is to end government meddling in the market. Government intervention leads to distortions in the market, and government reacts to each distortion by enacting new laws and regulations, which create their own distortions, and so on ad infinitum.
It is time this process is put to an end. But the government cannot just sit back idly and let the bust occur. It must actively roll back stifling laws and regulations that allowed the boom to form in the first place.
The government must divorce itself of the albatross of Fannie and Freddie, balance and drastically decrease the size of the federal budget, and reduce onerous regulations on banks and credit unions that lead to structural rigidity in the financial sector.
Until the big-government apologists realize the error of their ways, and until vocal free-market advocates act in a manner which buttresses their rhetoric, I am afraid we are headed for a rough ride.
The opinions expressed in this commentary are solely those of the writer.
Economist's Commentary: September 22, 2008
$700 Billion for What?
By Lawrence Yun, Chief Economist
A massive $700 billion bill will be fast-tracked through Congress this week to give the U.S. government the authority to buy bad mortgages off the books of Wall Street firms. People are calling it the 'mother of all bailouts' and the 'biggest bailout in the history of mankind.' I am inclined to view it as the biggest sovereign wealth fund investment to date.
Several sovereign wealth funds - essentially a mutual fund run by a government for the government (or its taxpaying citizens) - have been investing in Wall Street firms and mortgage-related debts since late last year. Singapore, South Korea, United Arab Emirates, Saudi Arabia, and China were among the countries putting up a few billion dollars in the hopes of turning a big profit once the housing market recovers. Treasury Hank Paulson, a former CEO of the top U.S. investment bank Goldman Sachs and perhaps missing his old job, has now created a U.S. sovereign wealth fund that outstrips in size all other sovereign funds put together. Some may even view it simplistically as the Treasury Department going "all-in" in this $700 billion Texas Hold 'Em poker bet.
The principal goal of this new Treasury authorization is not to make money but to unclog the financial pipelines. Worries about capital inadequacy, further mortgage debt write-downs, and margin calls have hemorrhaged the movement of capital. The overnight borrowing rate has been skyrocketing, as any firm with excess cash was unwilling to lend that precious dough should it face the fate of Lehman Brothers. The very essence of capitalism - of allocating capital to its most productive use - was collapsing before our very eyes last week. The whole economy and Main Street civilians would have eventually suffered greatly from the mistakes of Wall Street.
The way to unclog the system is to buy certain mortgage backed securities off the books of financial firms. Because of illiquidity many mortgage securities, even those performing reasonably well, are being valued at pennies on the dollar if forced to sell. Let's say, for example, that you as a bank hold 100 mortgages and half of your clients are paying mortgages on time. At worst, these 100 mortgages would get at least 50 cents on the dollar. However, if you need to raise capital because of margin calls in the current panic, you would not get 50 cents but only few pennies on the dollar. These unrealistically low valuations are paralyzing the balance sheets of financial institutions and hindering the liquidity flow.
Treasury intervention will help restore the proper valuation of these illiquid assets. However, Treasury should not reward the mistakes of Wall Street by bailing out at an unreasonably high price and handing out "free money." Buying at a deeply discounted price could potentially lead to huge revenue benefits for Treasury on the behalf of taxpayers once the housing market and mortgage debt valuation recovers, but the financial firms may be unwilling to sell at unreasonably low prices. If this happens, we are back to square one. Subsequently, a delicate balance must be pursued with the goal of helping unclog the financial pipeline, but also protecting taxpayers' money.
Understandably, there will be anger and outcries from the Main Street public of this massive Wall Street 'bailout.' Politicians will feel the heat in this election year. But those same politicians have no choice: if the bill does not pass, the acute financial pain will quickly trickle down to Main Street.
The Main Street disgust of executive pay is also understandable. I will defend the '$700 billion bailout' to help stabilize the housing market and economy, but not the golden parachutes of fallen Wall Street executives. How is it that failed managers are able to get away with a fistful of dollars? The same can be said of Fannie Mae (FNMA) and Freddie Mac (FHLMC) executives. Many past managers of these government sponsored enterprises were paid a gigantic sum for running the very simple business of borrowing cheap and lending high. It was possible for Fannie and Freddie to borrow cheap on the backs of government (i.e. U.S. taxpayer) guarantees. Most of this borrowing cost advantage should have been passed onto consumers and not kept by Fannie/Freddie managers.
Hank Paulson has a tough task. He must permit capital to move around. That is the essence of capitalism. He must at the same time also protect taxpayer money. The return on the taxpayer gamble depends on two things: at what price the Treasury will buy bad mortgage debts off Wall Street books, and the future mortgage default rate. The default rate, in turn, will depend on the housing market recovery. Knowingly or not, the 75 million homeowners and 100 million taxpayers have now become the key stakeholders on the side of housing market recovery. In the end, if all goes better than anticipated, Mr. Paulson may perhaps get his own super hero figure made for returning a healthy rate of investment to taxpayers on this $700 billion gambit.
By Lawrence Yun, Chief Economist
A massive $700 billion bill will be fast-tracked through Congress this week to give the U.S. government the authority to buy bad mortgages off the books of Wall Street firms. People are calling it the 'mother of all bailouts' and the 'biggest bailout in the history of mankind.' I am inclined to view it as the biggest sovereign wealth fund investment to date.
Several sovereign wealth funds - essentially a mutual fund run by a government for the government (or its taxpaying citizens) - have been investing in Wall Street firms and mortgage-related debts since late last year. Singapore, South Korea, United Arab Emirates, Saudi Arabia, and China were among the countries putting up a few billion dollars in the hopes of turning a big profit once the housing market recovers. Treasury Hank Paulson, a former CEO of the top U.S. investment bank Goldman Sachs and perhaps missing his old job, has now created a U.S. sovereign wealth fund that outstrips in size all other sovereign funds put together. Some may even view it simplistically as the Treasury Department going "all-in" in this $700 billion Texas Hold 'Em poker bet.
The principal goal of this new Treasury authorization is not to make money but to unclog the financial pipelines. Worries about capital inadequacy, further mortgage debt write-downs, and margin calls have hemorrhaged the movement of capital. The overnight borrowing rate has been skyrocketing, as any firm with excess cash was unwilling to lend that precious dough should it face the fate of Lehman Brothers. The very essence of capitalism - of allocating capital to its most productive use - was collapsing before our very eyes last week. The whole economy and Main Street civilians would have eventually suffered greatly from the mistakes of Wall Street.
The way to unclog the system is to buy certain mortgage backed securities off the books of financial firms. Because of illiquidity many mortgage securities, even those performing reasonably well, are being valued at pennies on the dollar if forced to sell. Let's say, for example, that you as a bank hold 100 mortgages and half of your clients are paying mortgages on time. At worst, these 100 mortgages would get at least 50 cents on the dollar. However, if you need to raise capital because of margin calls in the current panic, you would not get 50 cents but only few pennies on the dollar. These unrealistically low valuations are paralyzing the balance sheets of financial institutions and hindering the liquidity flow.
Treasury intervention will help restore the proper valuation of these illiquid assets. However, Treasury should not reward the mistakes of Wall Street by bailing out at an unreasonably high price and handing out "free money." Buying at a deeply discounted price could potentially lead to huge revenue benefits for Treasury on the behalf of taxpayers once the housing market and mortgage debt valuation recovers, but the financial firms may be unwilling to sell at unreasonably low prices. If this happens, we are back to square one. Subsequently, a delicate balance must be pursued with the goal of helping unclog the financial pipeline, but also protecting taxpayers' money.
Understandably, there will be anger and outcries from the Main Street public of this massive Wall Street 'bailout.' Politicians will feel the heat in this election year. But those same politicians have no choice: if the bill does not pass, the acute financial pain will quickly trickle down to Main Street.
The Main Street disgust of executive pay is also understandable. I will defend the '$700 billion bailout' to help stabilize the housing market and economy, but not the golden parachutes of fallen Wall Street executives. How is it that failed managers are able to get away with a fistful of dollars? The same can be said of Fannie Mae (FNMA) and Freddie Mac (FHLMC) executives. Many past managers of these government sponsored enterprises were paid a gigantic sum for running the very simple business of borrowing cheap and lending high. It was possible for Fannie and Freddie to borrow cheap on the backs of government (i.e. U.S. taxpayer) guarantees. Most of this borrowing cost advantage should have been passed onto consumers and not kept by Fannie/Freddie managers.
Hank Paulson has a tough task. He must permit capital to move around. That is the essence of capitalism. He must at the same time also protect taxpayer money. The return on the taxpayer gamble depends on two things: at what price the Treasury will buy bad mortgage debts off Wall Street books, and the future mortgage default rate. The default rate, in turn, will depend on the housing market recovery. Knowingly or not, the 75 million homeowners and 100 million taxpayers have now become the key stakeholders on the side of housing market recovery. In the end, if all goes better than anticipated, Mr. Paulson may perhaps get his own super hero figure made for returning a healthy rate of investment to taxpayers on this $700 billion gambit.
COMPATABLE DEVELOPMENT IN SINGLE-FAMILY NEIGHBORHOODS WORKSHOP
(Formerly Known as Pops & Scrapes or FAR Issue)
Neighborhood Workshops6:30 - 8:00 p.m.Sept. 15, 17, 22, and 23See Neighborhood Workshop page for more
"Public Affairs Dispatch" Boulder Association of Realtors
The city of Boulder invites you to participate in the community kick-off event for the Compatible Development in Single-Family Neighborhoods project. The intent of this workshop is to provide participants with a project overview, interact with the project team, and participate in small break-out group activities. Discussions will center on the defining characteristics of existing neighborhoods, current regulations that relate to single-family development, and redevelopment trends.
The city of Boulder is launching this effort to examine the impacts that surround what is often referred to as "pops and scrapes" redevelopment. This project may result in a variety of outcomes related to the regulation of single-family development and redevelopment. The city is interested in hearing all perspectives on this topic.
This community workshop will be followed by a series of smaller neighborhood workshops in mid-September. Community feedback will be used in identifying potential strategies.
Neighborhood Workshops6:30 - 8:00 p.m.Sept. 15, 17, 22, and 23See Neighborhood Workshop page for more
"Public Affairs Dispatch" Boulder Association of Realtors
The city of Boulder invites you to participate in the community kick-off event for the Compatible Development in Single-Family Neighborhoods project. The intent of this workshop is to provide participants with a project overview, interact with the project team, and participate in small break-out group activities. Discussions will center on the defining characteristics of existing neighborhoods, current regulations that relate to single-family development, and redevelopment trends.
The city of Boulder is launching this effort to examine the impacts that surround what is often referred to as "pops and scrapes" redevelopment. This project may result in a variety of outcomes related to the regulation of single-family development and redevelopment. The city is interested in hearing all perspectives on this topic.
This community workshop will be followed by a series of smaller neighborhood workshops in mid-September. Community feedback will be used in identifying potential strategies.
Monday, September 22, 2008
Rentals/Renters
Let us know if you or a friend would like to rent one of these properties or others or rent one of there own.
Louisville Homes for rent!
Louisville Homes for rent!262 Buchanan $1,450.00/ month. A four bedroom home on a quite circle close to Heritage Park and Fireside Elementary school! Very cute! extremely well kept, nice fenced yard, deck. Also has a living room, family room and unfinished basement area!
303-588-8999
954 Willow 
$ 1600.00
$ 1600.00This cute little 3 bedroom/ two car garage home in Louisville is at the top of the Mesa surrounded by very expensive homes. It has a huge back yard and a hot tub. Very close to Mesa Elementary School, Harper Lake and Cute playgrounds. Call us for a showing!
303-588-8999
Buyer Needs/ Active listings
Buyer Needs:
Buyer 1: We need a 2-3 condo loft within walking distance to Pearl Street Mall. Up to
1Million.
Public Comments: VERY VERY PRIVATE PRISTINE MOUNTAIN PROPERTY!!! BUILD YOUR DREAM HOME ON 9+ ACRES OF PRIVACY!!! COMPLETELY SURROUNDED BY FOREST SERVICE LAND SO THAT YOU FEEL LIKE YOU OWN 9000 ACRES!!! ONLY 30 MINUTES TO BOULDER.***ROCK OUTCROPPINGS, PONDEROSA PINES, DOUGLAS FIR & NATIVE GRASS MEADOWS ON A SLOPPING TERRAIN!!! UNRECORDED PHYSICAL ACCESS VIA OPEN FOREST SERVICE ROAD. IRES MLS#: 579160
Buyer 1: We need a 2-3 condo loft within walking distance to Pearl Street Mall. Up to
1Million.
Buyer 2: A live/work condo home ready to move into for an artist.
Listings:
647 Princeton Place: $395K INDIAN PEAKS GOLF COURSE HOME ON A CUL DE SAC AND BACKING UP TO GREENBELT*** UPDATES GALORE ON THIS BEAUTIFUL AND WELL DESIGNED OPEN FLOOR PLAN INCLUDING NEW GRANITE COUNTERS, DOUBLE SIDED FIREPLACE, REFINISHED WOOD FLOORS ON THE MAIN LEVELS, LARGE GREAT ROOM, GAS STOVE, OVERSIZED TWO CAR GARAGE, NEW SOD IN THE LARGE YARDS, NEW PAINT AND TILE THROUGHOUT!***
IRES MLS#: 580590
IRES MLS#: 580590
325 Kohl. 219K WELL-ESTABLISHED COMMUNITY; OPEN FLOORPLAN; 4 BDRMS W/ 3 BATHS; ONE OF LARGEST MODELS IN NEIGHBORHOOD; SHORT DISTANC
E TO EMERALD ELEMENTARY; LARGE, PRIVATE BACK YARD; ONE OF FEW WITH 2-CAR GARAGES IN NEIGHBORHOOD--- QUITE A GEM!
Public Comments: WELL-ESTABLISHED COMMUNITY; OPEN FLOORPLAN; 4 BDRMS W/ 3 BATHS; ONE OF LARGEST MODELS IN NEIGHBORHOOD; SHORT DISTANCE TO EMERALD ELEMENTARY; LARGE, PRIVATE BACK YARD; MINI- MAL FIX-UP; ONE OF FEW WITH 2-CAR GARAGES IN NEIGHBORHOOD--- QUITE A GEM! Ires MLS#580071
1360 Walnut $1,050,000 ***Twenty-Four by Twenty-Eight square feet is the size of this great room! Landmark Development with views of the Foothills and Downtown Boulder****Panoramic ceiling to floor store front windows, exposed brick, bamboo floors, stainless appl, balcony***Elegant Finish work in Industrial style loft***12.5 ft ceilings & exposed ducts***Zodiac Counters, Stainless Sinks & Seamless Entry Shower*** Elevator*** Go to work,
workout, go home, enjoy dinner and Live bands W/O a car!!! It is a lifestyle!!!
Public Comments: ***Twenty-Four by Twenty-Eight square feet is the size of t
his great room! Landmark Development with views of the Foothills and Downtown Boulder****Panoramic ceiling to floor store front windows, exposed brick, bamboo floors, stainless appl, balcony***
Public Comments: ***Twenty-Four by Twenty-Eight square feet is the size of t
his great room! Landmark Development with views of the Foothills and Downtown Boulder****Panoramic ceiling to floor store front windows, exposed brick, bamboo floors, stainless appl, balcony***Elegant Finish work in Industrial style loft***12.5 ft ceilings & exposed ducts***Zodiac Counters, Stainless Sinks & Seamless Entry Shower*** Elevator*** Go to work, workout, go home, enjoy dinner and Live bands W/O a car!!! It is a lifestyle!!!
IRES MLS#: 561901
8900 Sugar Loaf Rd VERY VERY PRIVATE PRISTINE MOUNTAIN PROPERTY!!! BUILD YOUR DREAM HOME ON 9+ ACRES OF PRIVACY!!! COMPLETELY SURROUNDED BY FOREST SERVICE LAND SO THAT YOU FEEL LIKE YOU OWN 9000 ACRES!!! ONLY 30 MINUTES TO BOULDER.***ROCK OUTCROPPINGS, PONDEROSA PINES, DOUGLAS FIR & NATIVE GRASS MEADOWS ON A SLOPPING TERRAIN!!! UNRECORDED PHYSICAL ACCESS VIA OPEN FOREST SERVICE ROAD. IRES MLS#: 561901
Public Comments: VERY VERY PRIVATE PRISTINE MOUNTAIN PROPERTY!!! BUILD YOUR DREAM HOME ON 9+ ACRES OF PRIVACY!!! COMPLETELY SURROUNDED BY FOREST SERVICE LAND SO THAT YOU FEEL LIKE YOU OWN 9000 ACRES!!! ONLY 30 MINUTES TO BOULDER.***ROCK OUTCROPPINGS, PONDEROSA PINES, DOUGLAS FIR & NATIVE GRASS MEADOWS ON A SLOPPING TERRAIN!!! UNRECORDED PHYSICAL ACCESS VIA OPEN FOREST SERVICE ROAD. IRES MLS#: 579160
Thursday, September 18, 2008
Signs of A Stabilizing Market
(From an Article By John W. Schoen, Senior producer of MSNBC; Aug. 26, 2008)
Though home prices continued to fall in July, there are growing signs that the market may be stabilizing as lower prices lure some buyers off the sidelines. But a broad housing recovery faces stiff headwinds in the form of rising unemployment, tighter credit for borrowers and a huge inventory of unsold homes. The widely watched Standard & Poor's/Case-Shiller national home price index fell by a record 15.4 percent during the second quarter compared to the same period a year ago. Still, the report offered a glimmer of hope that the slide in home prices may be easing: The rate of price drops slowed from May to June, and regional price data showed that nine of the 20 cities tracked by the index posted slight month-to-month gains.
Though home prices continued to fall in July, there are growing signs that the market may be stabilizing as lower prices lure some buyers off the sidelines. But a broad housing recovery faces stiff headwinds in the form of rising unemployment, tighter credit for borrowers and a huge inventory of unsold homes. The widely watched Standard & Poor's/Case-Shiller national home price index fell by a record 15.4 percent during the second quarter compared to the same period a year ago. Still, the report offered a glimmer of hope that the slide in home prices may be easing: The rate of price drops slowed from May to June, and regional price data showed that nine of the 20 cities tracked by the index posted slight month-to-month gains.
The New 2008 Home Owner Laws & What They Mean For You
(From an Article Written by Jay Taylor about The Housing Rescue Bill, signed into law July 30, 2008)
Some highlights:
The law will extend a tax credit of up to $7,500 to first-time homebuyers. A first-time homebuyer is defined as someone who hasn't owned a home in three years. The tax credit is for 10 percent of the purchase price, up to $7,500, but phases out for higher-income homeowners. Homeowners are eligible for the tax credit if they bought after April 8 of this year and before July 1, 2009.
This is a tax credit, not a deduction. It reduces the homeowners' tax bill by up to $7,500 for the tax year in which the purchase was made. If you buy a house this year, you get the tax credit for the 2008 tax year -- the one with a filing deadline of April 15, 2009. If you buy a house next year by the end of June, you get the tax credit for the 2009 tax year. It's a one-time credit; you don't get to keep taking it year after year.
But the money has to be repaid over 15 years, starting two years after you buy the house. That makes the tax credit an interest-free loan. If you take the full $7,500 tax credit, your income tax bill will increase by $500 a year for 15 years. If you sell the house before then, you'll have to pay the remaining balance.
Under current law, you can deduct your property taxes from federal income tax -- but only if you itemize deductions on Schedule A. That leaves out people who don't have enough deductions to warrant filling out Schedule A. They have to take the standard deduction -- they can't deduct property taxes. For homeowners who pay property taxes, it increases the standard deduction by $500 for single filers and $1,000 for couples filing jointly.
There are maximum amounts for loans that the FHA will insure, and that Fannie Mae and Freddie Mac will guarantee. Those limits were raised temporarily this year. The new law raises limits permanently. For FHA-insured mortgages, the new limit will be 115 percent of the median home price in that area, up to $625,500. That provision will affect loan limits in higher-cost areas. In lower-cost areas, the current FHA limits won't decrease. For conforming mortgages -- those eligible to be bought by Fannie Mae and Freddie Mac -- the conforming limit will remain at least $417,000 for a single-family home. It can be higher than that. Starting next year, the new limit is either $417,000 or 115 percent of the area's median home price, whichever is higher -- up to $625,500. After that, the limits go up or down according to a price index. More regulations on reverse mortgagesA reverse mortgage is an advance against home equity. It's for homeowners age 62 or older, and the reverse mortgage doesn't have to be repaid until the borrowers die or move out. Borrowers are required to get counseling first, to learn the pros and cons of reverse mortgages. The law will result in strengthened qualifications for counselors. The law bars insurance salesmen from originating reverse mortgages and prohibits originators from requiring homeowners to buy annuities or insurance products. (There's one big exception: The FHA insures reverse mortgages, and borrowers will buy that coverage.)
Finally, the law limits origination fees on reverse mortgages. They can't exceed 2 percent of a reverse mortgage of up to $200,000. For a reverse mortgage amount above that, the limit is $4,000, plus 1 percent of the loan amount above $200,000. Origination fees can't exceed $6,000 in any case. In future years, this upper limit is indexed to inflation. It will establish an Office of Housing Counseling, which coordinate all federal housing counseling functions, as well as produce booklets that will be given to people applying for mortgages.
Some highlights:
The law will extend a tax credit of up to $7,500 to first-time homebuyers. A first-time homebuyer is defined as someone who hasn't owned a home in three years. The tax credit is for 10 percent of the purchase price, up to $7,500, but phases out for higher-income homeowners. Homeowners are eligible for the tax credit if they bought after April 8 of this year and before July 1, 2009.
This is a tax credit, not a deduction. It reduces the homeowners' tax bill by up to $7,500 for the tax year in which the purchase was made. If you buy a house this year, you get the tax credit for the 2008 tax year -- the one with a filing deadline of April 15, 2009. If you buy a house next year by the end of June, you get the tax credit for the 2009 tax year. It's a one-time credit; you don't get to keep taking it year after year.
But the money has to be repaid over 15 years, starting two years after you buy the house. That makes the tax credit an interest-free loan. If you take the full $7,500 tax credit, your income tax bill will increase by $500 a year for 15 years. If you sell the house before then, you'll have to pay the remaining balance.
Under current law, you can deduct your property taxes from federal income tax -- but only if you itemize deductions on Schedule A. That leaves out people who don't have enough deductions to warrant filling out Schedule A. They have to take the standard deduction -- they can't deduct property taxes. For homeowners who pay property taxes, it increases the standard deduction by $500 for single filers and $1,000 for couples filing jointly.
There are maximum amounts for loans that the FHA will insure, and that Fannie Mae and Freddie Mac will guarantee. Those limits were raised temporarily this year. The new law raises limits permanently. For FHA-insured mortgages, the new limit will be 115 percent of the median home price in that area, up to $625,500. That provision will affect loan limits in higher-cost areas. In lower-cost areas, the current FHA limits won't decrease. For conforming mortgages -- those eligible to be bought by Fannie Mae and Freddie Mac -- the conforming limit will remain at least $417,000 for a single-family home. It can be higher than that. Starting next year, the new limit is either $417,000 or 115 percent of the area's median home price, whichever is higher -- up to $625,500. After that, the limits go up or down according to a price index. More regulations on reverse mortgagesA reverse mortgage is an advance against home equity. It's for homeowners age 62 or older, and the reverse mortgage doesn't have to be repaid until the borrowers die or move out. Borrowers are required to get counseling first, to learn the pros and cons of reverse mortgages. The law will result in strengthened qualifications for counselors. The law bars insurance salesmen from originating reverse mortgages and prohibits originators from requiring homeowners to buy annuities or insurance products. (There's one big exception: The FHA insures reverse mortgages, and borrowers will buy that coverage.)
Finally, the law limits origination fees on reverse mortgages. They can't exceed 2 percent of a reverse mortgage of up to $200,000. For a reverse mortgage amount above that, the limit is $4,000, plus 1 percent of the loan amount above $200,000. Origination fees can't exceed $6,000 in any case. In future years, this upper limit is indexed to inflation. It will establish an Office of Housing Counseling, which coordinate all federal housing counseling functions, as well as produce booklets that will be given to people applying for mortgages.
Home Staging Tips
(From an Article by Debra Gould, President of "Six Elements Inc.")
1. Consider the curb appeal.
Landscaping is nice, but not in everyone's budget. At minimum, lawns should be freshly mowed, leaves raked, or snow shoveled. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure garbage and recycling are tucked neatly away from the front of the house. Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference. Once the outside entrance is clean, decide if the paint really needs a touch up.
2. Get rid of clutter!
Pick one closet or area at a time so the task isn't as daunting. Look at every item with a very critical eye and ask yourself why you're keeping it. Remember that how you live in your home and how you sell your house are two entirely different things. You're going for a "show home" look! Forget about hanging onto items for a garage sale. Pick your favorite charity and donate it. You paid for these things long ago, why not just give them away to others who REALLY need them? You'll probably have to edit the same closets a number of times to really whittle them down to the "essentials". If rooms and closets still look cramped, rent a storage locker.
3. Turn excess inventory into cash.
If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement. Without a receipt you won't get cash, but you will have a store credit that you can use once you move. Less clutter and less stuff to pack, move and unpack again!
4. Watch where the eye goes.
There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to. Walk along each corridor and into every room and check where your eye is drawn (you can ask a real estate broker or family member). If the eye is drawn to the chipped white paint on the door frame, take some "white out" and fill it in. If it's those old nail holes in the wall, see if you can hang a picture to cover them. Glue any peeling wallpaper. If it's really horrible and you can't afford the time or money to fix it properly, hang pictures and strategically place baskets. You won't cover the problem entirely (which would be wrong anyway), but you will draw your audience's attention away from the problem and onto something more visually pleasing to focus on.
5. Find a fix-it person.
Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential buyers. No, it's not OK for door handles to fall off, even if you have learned to ignore it!
6. Clean, clean and clean again.
Most mortals can't live in a spotless environment all the time. This can be one of the more stressful aspects of having your home on the market— but it's worth the effort to sell your home for top dollar. You can hire a professional service to come in and deep clean everything; then take 20-30 minutes each day to maintain it. Don't neglect hallways. They lead potential buyers through your home and should be bright and clutter free. Remember you're trying to maximize the feeling of space in your home! Appliances should sparkle even if you're not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.
If you have a pedestal sink, don't forget the dust that collects on top of the plumbing where it attaches to the wall. If the whole sink is spotless and the taps aren't dripping, it will look new!
Dust shelves and vacuum or "Swiffer" the floors. Naturally, all beds should be made. At a recent open house for a home listed over $500,000 (and over 60 days on the market), they hadn't even bothered with these two simple steps! It made you wonder what bigger things had been neglected.
If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put buyers at ease— especially a first time buyer who may be worried about the responsibilities of owning a house.
7. Let in some air.
Open some windows for at least 10 minutes. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors.
8. Let in some light.
It might be mood lighting to you, but if you're trying to sell your home, keep it bright! Dimly lit rooms tend to look small and dingy— especially during the day.
If you have a particularly dark room, consider investing in a floor lamp that will bounce light off the ceiling. If your walls are so dark that they're sucking up all the light, consider repainting. You can even buy a small can of a lighter shade of your wall color, mix it with glaze and rub it onto the wall. It will reflect light and give the room a more open feeling. This approach saves much of the preparation and clean up involved in repainting.
9. Don't forget fresh flowers.
You don't need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution. Don't use plastic or obviously fake flowers, especially in an expensive home!
10. Carefully consider music.
Soft background music can help create a soothing environment and camouflage neighbor and traffic noise. But make sure the volume is very low. Blaring TVs are definitely a no-no, but you'd be surprised how many people leave them on for showings!
Step back and look at your home with the eye of a highly critical buyer. Be honest with yourself! Most buyers can't look past unattractive or disorganized rooms or figure out how their furniture might look in an empty room. Home staging creates the "dream home" environment for buyers so they don't have to use their own imagination and can immediately fall in love and say "this is home!"
1. Consider the curb appeal.
Landscaping is nice, but not in everyone's budget. At minimum, lawns should be freshly mowed, leaves raked, or snow shoveled. Consider a hanging or potted plant for the entrance. Sweep the porch, deck and all walk ways and ensure garbage and recycling are tucked neatly away from the front of the house. Scrub your front door, porch, outside railings and steps. This is cheaper than repainting and makes a world of difference. Once the outside entrance is clean, decide if the paint really needs a touch up.
2. Get rid of clutter!
Pick one closet or area at a time so the task isn't as daunting. Look at every item with a very critical eye and ask yourself why you're keeping it. Remember that how you live in your home and how you sell your house are two entirely different things. You're going for a "show home" look! Forget about hanging onto items for a garage sale. Pick your favorite charity and donate it. You paid for these things long ago, why not just give them away to others who REALLY need them? You'll probably have to edit the same closets a number of times to really whittle them down to the "essentials". If rooms and closets still look cramped, rent a storage locker.
3. Turn excess inventory into cash.
If you have a collection of items for projects you never got around to, return them. This also applies to the two-year supply of light bulbs, canned goods or paper products sitting in your basement. Without a receipt you won't get cash, but you will have a store credit that you can use once you move. Less clutter and less stuff to pack, move and unpack again!
4. Watch where the eye goes.
There are speedy and low cost solutions to many of the little problems that together make a home seem shabbier than it needs to. Walk along each corridor and into every room and check where your eye is drawn (you can ask a real estate broker or family member). If the eye is drawn to the chipped white paint on the door frame, take some "white out" and fill it in. If it's those old nail holes in the wall, see if you can hang a picture to cover them. Glue any peeling wallpaper. If it's really horrible and you can't afford the time or money to fix it properly, hang pictures and strategically place baskets. You won't cover the problem entirely (which would be wrong anyway), but you will draw your audience's attention away from the problem and onto something more visually pleasing to focus on.
5. Find a fix-it person.
Ensure cupboards open and shut and that no taps are dripping. Look in all rooms for things you never got around to fixing and decide which ones might be distracting to potential buyers. No, it's not OK for door handles to fall off, even if you have learned to ignore it!
6. Clean, clean and clean again.
Most mortals can't live in a spotless environment all the time. This can be one of the more stressful aspects of having your home on the market— but it's worth the effort to sell your home for top dollar. You can hire a professional service to come in and deep clean everything; then take 20-30 minutes each day to maintain it. Don't neglect hallways. They lead potential buyers through your home and should be bright and clutter free. Remember you're trying to maximize the feeling of space in your home! Appliances should sparkle even if you're not including them with the house. After all, you might throw them in later as a negotiating tool. Counter tops, taps, sinks and bathtubs should be shiny and free of water spots.
If you have a pedestal sink, don't forget the dust that collects on top of the plumbing where it attaches to the wall. If the whole sink is spotless and the taps aren't dripping, it will look new!
Dust shelves and vacuum or "Swiffer" the floors. Naturally, all beds should be made. At a recent open house for a home listed over $500,000 (and over 60 days on the market), they hadn't even bothered with these two simple steps! It made you wonder what bigger things had been neglected.
If all this attention to detail seems over the top, remember that a very clean home leaves the impression that the house is well cared for. This helps put buyers at ease— especially a first time buyer who may be worried about the responsibilities of owning a house.
7. Let in some air.
Open some windows for at least 10 minutes. There is nothing worse than walking into a stuffy house or one that smells of smoke and pet odors.
8. Let in some light.
It might be mood lighting to you, but if you're trying to sell your home, keep it bright! Dimly lit rooms tend to look small and dingy— especially during the day.
If you have a particularly dark room, consider investing in a floor lamp that will bounce light off the ceiling. If your walls are so dark that they're sucking up all the light, consider repainting. You can even buy a small can of a lighter shade of your wall color, mix it with glaze and rub it onto the wall. It will reflect light and give the room a more open feeling. This approach saves much of the preparation and clean up involved in repainting.
9. Don't forget fresh flowers.
You don't need to spend a fortune to have fresh flowers throughout your home. Even a daisy in a bud vase brightens a bathroom counter. Ask your florist which blooms last a week. You can also use potted flowering plants that are in season for a low-cost solution. Don't use plastic or obviously fake flowers, especially in an expensive home!
10. Carefully consider music.
Soft background music can help create a soothing environment and camouflage neighbor and traffic noise. But make sure the volume is very low. Blaring TVs are definitely a no-no, but you'd be surprised how many people leave them on for showings!
Step back and look at your home with the eye of a highly critical buyer. Be honest with yourself! Most buyers can't look past unattractive or disorganized rooms or figure out how their furniture might look in an empty room. Home staging creates the "dream home" environment for buyers so they don't have to use their own imagination and can immediately fall in love and say "this is home!"
Mortgage Delinquencies Decline in Colorado
(From an Article in the Denver Business Journal, Sept. 5, 2008)
Colorado ranked 41st in the nation in mortgage delinquencies in the second quarter, down from 39th in the first quarter, accord to data released Friday by the Mortgage Bankers Association.
Meanwhile, the percentage of Colorado loans on which foreclosure was started in the April-though-June quarter fell three basis points to 0.84 percent.
“The national foreclosure numbers continue to be driven by the hardest-hit states continuing to get much worse,” Jay Brinkmann, the MBA’s chief economist, said in a statement. “The increases in foreclosures in California and Florida overwhelmed improvements in states like Texas, Massachusetts and Maryland.” California and Florida accounted for 39 percent of all foreclosures started during the second quarter, and 73 percent of the increase in foreclosures between the first and second quarters. Only eight states had rates of foreclosure starts that were above the national average: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana and Ohio. The remaining 42 states plus the District of Columbia were below the national average.
“The other factor that continues to drive foreclosure rates is loan type,” Brinkmann said. “Subprime [adjustable-rate mortgage] loans accounted for 36 percent of all foreclosures started and prime ARMs, which include option ARMs, represented 23 percent.”
Colorado had 20 percent nonprime borrowers, compared with a national average of 19 percent.
Colorado ranked 41st in the nation in mortgage delinquencies in the second quarter, down from 39th in the first quarter, accord to data released Friday by the Mortgage Bankers Association.
Meanwhile, the percentage of Colorado loans on which foreclosure was started in the April-though-June quarter fell three basis points to 0.84 percent.
“The national foreclosure numbers continue to be driven by the hardest-hit states continuing to get much worse,” Jay Brinkmann, the MBA’s chief economist, said in a statement. “The increases in foreclosures in California and Florida overwhelmed improvements in states like Texas, Massachusetts and Maryland.” California and Florida accounted for 39 percent of all foreclosures started during the second quarter, and 73 percent of the increase in foreclosures between the first and second quarters. Only eight states had rates of foreclosure starts that were above the national average: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana and Ohio. The remaining 42 states plus the District of Columbia were below the national average.
“The other factor that continues to drive foreclosure rates is loan type,” Brinkmann said. “Subprime [adjustable-rate mortgage] loans accounted for 36 percent of all foreclosures started and prime ARMs, which include option ARMs, represented 23 percent.”
Colorado had 20 percent nonprime borrowers, compared with a national average of 19 percent.
Xcel Moving on SmartGridCity Project in Boulder
(From an Article in the Denver Business Journal, Aug. 21, 2008)
Xcel Energy Inc. said Thursday it’s installed 82 miles of fiber-optic cables and the first of 13,000 new electricity meters in Boulder as part of its $100 million SmartGridCity pilot project in Boulder.
The equipment can respond to a power outage by automatically isolating the incident and rerouting power so fewer customers are left in the dark. The trailer also has a web portal that allows customers to pre-set their furnace, air conditioning and lights to save energy. “SmartGridCity is a prime example of how in Colorado we are using new technologies to build the New Energy Economy,” Gov. Ritter said in a statement. “This project is a great example of a public and private partnership between the state, the city of Boulder, Xcel Energy and its partners.” Xcel said the utility and its SmartGridCity technology partners are making significant progress in Boulder. The first so-called “smart” meters have been installed, and are working with two-way communication between the customer and Xcel through the fiber-optic cables.
By the end of 2008, Xcel expects to have more than 13,000 homes with smart meters. By next summer, another 10,000 meters will be available for installation at the customer’s request.
In addition, Xcel said two substations in Boulder have been upgraded with smart technology, which can automatically detect, isolate, and restore electricity load when an outage occurs. This information allows Xcel to cut the impact of outages by predicting them, and thus preventing outages, and technology to reduce their duration.
Xcel Energy Inc. said Thursday it’s installed 82 miles of fiber-optic cables and the first of 13,000 new electricity meters in Boulder as part of its $100 million SmartGridCity pilot project in Boulder.
The equipment can respond to a power outage by automatically isolating the incident and rerouting power so fewer customers are left in the dark. The trailer also has a web portal that allows customers to pre-set their furnace, air conditioning and lights to save energy. “SmartGridCity is a prime example of how in Colorado we are using new technologies to build the New Energy Economy,” Gov. Ritter said in a statement. “This project is a great example of a public and private partnership between the state, the city of Boulder, Xcel Energy and its partners.” Xcel said the utility and its SmartGridCity technology partners are making significant progress in Boulder. The first so-called “smart” meters have been installed, and are working with two-way communication between the customer and Xcel through the fiber-optic cables.
By the end of 2008, Xcel expects to have more than 13,000 homes with smart meters. By next summer, another 10,000 meters will be available for installation at the customer’s request.
In addition, Xcel said two substations in Boulder have been upgraded with smart technology, which can automatically detect, isolate, and restore electricity load when an outage occurs. This information allows Xcel to cut the impact of outages by predicting them, and thus preventing outages, and technology to reduce their duration.
Denver Home Price Rise Tops 20-City List
(From an Article in the Denver Business Journal, Aug. 26, 2008)
Denver home prices show the strongest rebound of the 20 markets studied, according to the S&P Case-Shiller Home Price Indices. The report said home prices rose in June from a month earlier in nine cities. Denver had the biggest gain, at 1.5 percent, followed by Boston at 1.2 percent.
A separate report, by the Office of Federal Housing Enterprise Oversight, showed more positive news for the Denver market. Home prices in the Denver-Aurora area are up 0.38 percent in the past year. The report relies on home sales and refinancing of mortgages for its data. Home prices in Boulder were up 2.47 percent in value from a year ago, and 0.25 percent higher in the second quarter. For Colorado as a whole, prices rose by 1.82 percent in the past year and by 0.32 percent in the second quarter.
Denver home prices show the strongest rebound of the 20 markets studied, according to the S&P Case-Shiller Home Price Indices. The report said home prices rose in June from a month earlier in nine cities. Denver had the biggest gain, at 1.5 percent, followed by Boston at 1.2 percent.
A separate report, by the Office of Federal Housing Enterprise Oversight, showed more positive news for the Denver market. Home prices in the Denver-Aurora area are up 0.38 percent in the past year. The report relies on home sales and refinancing of mortgages for its data. Home prices in Boulder were up 2.47 percent in value from a year ago, and 0.25 percent higher in the second quarter. For Colorado as a whole, prices rose by 1.82 percent in the past year and by 0.32 percent in the second quarter.
Passco Buys Land in Louisville
(From an Article in the Denver Business Journal, Sept. 3, 2008) A California company has purchased a 20-acre site within the Colorado Technology Center in Louisville for $3.8 million and plans to construct a series of office buildings there. The site includes two approved planned unit developments, or PUDs. Passco Companies Development LLC said it expects to break ground this fall on the first phase of development, an 84,000-square-foot building called One Technology Center. The company will have space available for lease from 20,000 to 84,000 square feet. Phase two will be Two Technology Center, a 104,000-square-foot building. The third phase will be two 40,000-square-foot multi-tenant office or flex properties.
Denver Water Considers Higher Rates
(From an Article in the Denver Business Journal, Sept. 2, 2008) Water’s board will decide Sept. 24 whether to raise water bills by $19 to $33 a year for residential customers, depending on if they live in the city or the suburbs. The agency needs to raise an extra $18.5 million in 2009 to cover rising costs for maintaining and improving its water system.
Other projects in 2009 include the replacement and rehabilitation of aging infrastructure, Hayman Fire watershed recovery work, potential enlargement of Gross Reservoir and expanding conservation education, rebates and incentive programs, the utility said.
Increasing water rates will close that gap, the utility said, since it doesn’t receive any tax dollars.
Under the current proposal for 2009, reviewed by the Denver Water board, Denver residential customers would see their bills increase by about $19.14 a year, on average. Suburban residential customers served by Denver Water would see an increase of $33.12 per year, on average. The effects of the proposed changes on customer bills would vary depending upon the amount of water the customer uses and whether the customer lives in Denver or is served by a suburban distributor under contract with Denver Water.
The utility is also looking at ways to revise its rate structure for 2010 designed to encourage water conservation. Public comment on the 2009 water rate increase and the 2010 rate structure is being taken.
Other projects in 2009 include the replacement and rehabilitation of aging infrastructure, Hayman Fire watershed recovery work, potential enlargement of Gross Reservoir and expanding conservation education, rebates and incentive programs, the utility said.
Increasing water rates will close that gap, the utility said, since it doesn’t receive any tax dollars.
Under the current proposal for 2009, reviewed by the Denver Water board, Denver residential customers would see their bills increase by about $19.14 a year, on average. Suburban residential customers served by Denver Water would see an increase of $33.12 per year, on average. The effects of the proposed changes on customer bills would vary depending upon the amount of water the customer uses and whether the customer lives in Denver or is served by a suburban distributor under contract with Denver Water.
The utility is also looking at ways to revise its rate structure for 2010 designed to encourage water conservation. Public comment on the 2009 water rate increase and the 2010 rate structure is being taken.
Forest City Breaks Ground on 184 acre Park
(From an Article in the Denver Business Journal, Sept. 3, 2008)
Developer Forest City Science + Technology Group broke ground on the 184-acre Colorado Science and Technology Park in Aurora Wednesday. The new park will house an incubator for emerging businesses, a hotel and conference center and a 175,000-foot-foot office building for University Physicians Inc. The Fitzsimons Federal Credit Union also will break ground on the site. During the groundbreaking, Aurora Mayor Ed Tauer unveiled a study that showed that development in the former Fitzsimons Army Medical Center — which includes the Anschutz Medical Campus, The Children’s Hospital and Research Center and a planned veterans hospital — will generate up to $4.5 billion in “annual economic impact” by 2013. Forest City Science + Technology Group is a division of Forest City Enterprises Inc. (NYSE: FCEA, FCEB), a real estate development company based in Cleveland, Ohio.
Developer Forest City Science + Technology Group broke ground on the 184-acre Colorado Science and Technology Park in Aurora Wednesday. The new park will house an incubator for emerging businesses, a hotel and conference center and a 175,000-foot-foot office building for University Physicians Inc. The Fitzsimons Federal Credit Union also will break ground on the site. During the groundbreaking, Aurora Mayor Ed Tauer unveiled a study that showed that development in the former Fitzsimons Army Medical Center — which includes the Anschutz Medical Campus, The Children’s Hospital and Research Center and a planned veterans hospital — will generate up to $4.5 billion in “annual economic impact” by 2013. Forest City Science + Technology Group is a division of Forest City Enterprises Inc. (NYSE: FCEA, FCEB), a real estate development company based in Cleveland, Ohio.
Ascendant, Cobalt Plan Spec Building
(From an Article in the Denver Business Journal, Sept. 4, 2008)
Ascendant Development and Cobalt Industrial REIT II will break ground this month on a 100,000-square-foot speculative light industrial building in the Denver Business Center. The building site is 6.10 acres. Privately held Ascendant Development is based in Denver. The company specializes in buying and developing business parks, plus build-to-suit and speculative office and industrial buildings in the Rocky Mountain Region.
Dallas-based Cobalt Capital Partners, a private equity firm that buys, manages and develops light industrial properties, manages Cobalt Industrial REIT II and its predecessor, Cobalt Industrial REIT I. Together, the REITs own more than 23 million square feet of space in 15 markets.
Ascendant Development and Cobalt Industrial REIT II will break ground this month on a 100,000-square-foot speculative light industrial building in the Denver Business Center. The building site is 6.10 acres. Privately held Ascendant Development is based in Denver. The company specializes in buying and developing business parks, plus build-to-suit and speculative office and industrial buildings in the Rocky Mountain Region.
Dallas-based Cobalt Capital Partners, a private equity firm that buys, manages and develops light industrial properties, manages Cobalt Industrial REIT II and its predecessor, Cobalt Industrial REIT I. Together, the REITs own more than 23 million square feet of space in 15 markets.
Metro State board backs energy-tax measure
(From an Article in the Denver Business Journal, Sept. 4, 2008) Trustees of Metropolitan State College of Denver have endorsed a ballot measure to collect more severance taxes from energy companies to fund scholarships and are opposing an initiative that would curtail affirmative-action programs. The college’s board of trustees voted unanimously to support Amendment 58, which would end a tax credit enjoyed by gas and oil companies that drill in Colorado.
The measure would raise more than $300 million in severance-tax revenue, about two-thirds of which would go into a college-scholarship fund for qualifying Colorado students. Proponents say energy companies don’t need a tax credit, which they don’t get in other states, and that the money could help thousands of Colorado students attend college who might not otherwise be able to go. Opponents say it could cause gas and oil companies to flee the state and result in higher energy prices for consumers.
The measure would raise more than $300 million in severance-tax revenue, about two-thirds of which would go into a college-scholarship fund for qualifying Colorado students. Proponents say energy companies don’t need a tax credit, which they don’t get in other states, and that the money could help thousands of Colorado students attend college who might not otherwise be able to go. Opponents say it could cause gas and oil companies to flee the state and result in higher energy prices for consumers.
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