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San Francisco Eyeing Blueprint for More Housing
The San Francisco Planning Department has submitted a proposal to spur housing construction by allowing higher-density buildings in the Mission District, South of Market and transit corridors as well as apartments above stores and parking lots. In addition, builders would not always have to provide parking spaces for units built near public transit; and in-law apartments would be legalized. However, new development must complement existing homes and neighborhoods. To ease the concerns of residents opposed to higher densities, Adam Kruggel of the San Francisco Organizing Project suggests the city should offer more affordable units and spend more on public transit. The city is building just 1,130 housing units each year, though 2,717 are needed. (www.sfgate.com)
San Francisco Chronicle (05/01/03) P. A19; Adams, Gerald D.
Construction Builds Momentum
The U.S. Commerce Department's Census Bureau estimates that construction completed during March of this year reached a seasonally adjusted annual rate of $868.5 billion That total is about 1% below the revised February estimate of $877.4 billion but nearly 1.6% ahead of year-earlier figures. Census officials add that spending on new housing construction was up slightly to a seasonally adjusted annual rate of $328.5 billion in March, while nonresidential construction dipped a notch to a rate of $161.5 billion. (www.inman.com)
Inman News Features Online (05/01/03)
Earth-Friendly, Energy Efficient Home Program Starts
Nebraska's energy office is working in conjunction with the state home builders group to promote energy-efficient and environmentally friendly dwellings. Under the Nebraska Certified Green Building program, state residents can have homes built by a certified green builder using such elements as recycled products and energy-efficient components. The approach reportedly results in up to $86 per month in savings on utility costs. (www.ap.org)
Associated Press (04/29/03)
In Regulation, Shades of Green
In Massachusetts, developers say the Endangered Species Act which forces builders to modify their plans if salamanders, dragonflies or spotted turtles inhabit a property targeted for development and the accompanying Wetlands Protection Act can delay their projects for years and add tens of thousands of dollars in consultant and specialist fees to the cost. In response, Governor Mitt Romney hopes to streamline the process for developers either by eliminating the Department of Environmental Protection's part in wetlands appeals or by shortening the appeals process. Meanwhile, former state environmental secretary John DeVillars wants to establish a wetlands bank to focus preservation on larger areas, rather than smaller habitats. Despite builders' criticisms, Natural Heritage and Endangered Species program manager Henry Woolsey says compromises can be made although efforts to protect both development and wildlife are costly. Projects in Sturbridge, Hopkinton, Concord and Groton already have been scrapped or shrunk by the regulations. According to Choate, Hall & Stewart attorney Hamilton H. Hackney, the state was supposed to have issued a map detailing various habitats and informing developers of potential problems; however, such a map would likely spark lawsuits from property owners concerned about land-use controls. As a result, each property currently is evaluated separately, and the developer must perform an analysis and inventory if endangered species are found. (www.boston.com/globe)
Boston Globe Online (04/29/03) P. B1; Flint, Anthony
Study Hails the Value of Shade Trees
Research by Montclair State University and NASA's Goddard Institute for Space Studies reveals the cooling effects of shade trees particularly in "urban heat islands," or crowded cities where buildings and roads absorb heat. Not only do trees counter that effect, the study concludes, but they also can improve the quality of life for residents. According to Montclair geography professor William Solecki, "It was always the neighborhoods in the urban core, where there was block after block of rowhouses with black tar roofs and no tree coverage, where we recorded the highest temperatures." This finding was more true in newer suburbs than in older but similarly dense communities that are more likely to have trees. Oaks, maples and other shade trees can slash the temperature of a city block by five degrees, according to the research. Meanwhile, Lawrence Berkeley National Laboratory data shows that a single full-grown tree could shave $20 off home owners' yearly air-conditioning bills. As a result of the Montclair/NASA study, New Jersey's Department of Environmental Protection wants the Board of Public Utilities to spend $36 million to plant 100,000 trees in Camden, Newark, Trenton, Elizabeth and Patterson. However, the Philadelphia-based Energy Coordinating Agency Inc. argues that a better solution is to install white polymer and calcium carbonate roofs on rowhouses to reflect the sun. (www.philly.com)
Philadelphia Inquirer (04/28/03) P. B1; Gurney, Kaitlin
Top Funds Still Carry Torch For Home Builders
Centex and Ryland Group are among the home builders whose stocks are being scooped up by the country's top-performing funds. In fact, three funds including CGM Realty Fund and Hotchkis & Wiley Small Cap Value Fund recently purchased $27 million of Centex stock. The company is favored because of its diversified portfolio, which includes home building, investment real estate, financial services, and construction services and products divisions. Though the technology and healthcare sectors are being pushed to the forefront, IBD's Building-Residential /Commercial Group ranks 71st out of 197 industries. (www.investors.com)
Investor's Business Daily (05/02/03) P. A10; Huynh, Julie
'Green Roofs': Gardens Go to New Heights
An increasing number of home owners in Seattle and the Northeast in general are embracing green roofs, which minimize storm-water runoff, create better insulation and reduce the urban heat effect. Roof gardens range from full lawns to trees and herbs. Despite the benefits, many home owners balk at the costs involved. Indeed, green roofs cost as much as $25 per square foot, versus $5 per square foot for a traditional roof. These roofs feature drainage layers to clean storm water, three to four inches of lightweight soil and a variety of drought-resistant plants. (seattletimes.nwsource.com)
Seattle Times (04/26/03) P. A1; Bach, Ashley
Casual Insurance Inquiry Can Be Costly
The Comprehensive Loss Underwriting Exchange (CLUE), the insurance industry's electronic risk-prediction database, features five years of claims and property-damage information on home owners and their properties. Any negative marks on the report, including poor credit scores or even a call to an insurance agent regarding deductibles, can make it more difficult for home owners to sell their property because buyers will be unable to obtain coverage or will be forced to pay exorbitant premiums. In response, the National Association of Realtorsฎ has established a task force, which will meet next month to suggest reforms. In the meantime, consumers are urged to obtain copies of the CLUE report before buying or selling a home and be aware that any inquiry could negatively impact the risk score on the residence. (www.orlandosentinel.com)
Orlando Sentinel (04/27/03) P. J2; Harney, Kenneth R.
Lairs of Luxury
Luxury home buyers continue to spend hundreds of thousands of dollars on the most sophisticated options and upgrades, even as the high-end market overall has slowed. According to industry insiders, many spend 20% of the base price on these extras; and they have more to choose from than ever before. Popular upgrades include higher basement ceilings, waterfalls, in-shower stereos, walk-in refrigerators, master-bedroom fridges, cappuccino centers, heating coils in the floors, heated driveways that melt ice and snow, putting greens, chandeliers, mahogany handrails, stone tiles, molding and exotic or "reclaimed" wood floors. Long Island Builders Institute Chairman Cliff Fetner says affluent buyers usually get everything they want upfront because many extras are cumbersome to install later on. To avoid delays, subdivision builders keep upgrades to a minimum; but ultra-luxury buyers, whose homes take two or more years to complete, are given free reign to choose the most unique accessories. (www.newsday.com)
New York Newsday (05/02/03) P. C6; Catalano, Joe
New Concepts in Real Estate Industry
Technological innovation is driving the growth of a new breed of residential property brokerage firms that are designed to satisfy newly emerging consumer needs. Realty companies offering "one-stop shopping," meaning that they cover all facets of the customer's home buying and selling needs including relocation services have been around for years, for example; but they are becoming more commonplace in today's competitive environment. Not only do these entities promote aggressively to fend off competition from new sources specifically banks but, as sales associates demand an increasingly larger cut of transaction fees, they also provide a source of revenue to brokerages above the sales commission. Also rising in popularity, meanwhile, are "buyer brokerages," which help bring down liability risks by dedicating agents exclusively on behalf of home buyers, thus avoiding any conflict of interest. Additionally, many realty businesses are offering fee-based services for a competitive edge; while others still are experimenting with a compensation system that pays sales agents a salary instead of keeping them on as independent contractors. Finally, Web-based brokerages, or virtual real estate companies, continue to try to capture a niche of the market, although they have not garnered much attention to date given consumers' preference for dealing with a flesh-and-blood professional when making such a big-ticket purchase. (www.copleynews.com)
Copley News Service (04/28/03) Woodard, James M.
Poll: Real Estate Values Have Room to Rise
The existence of a housing "bubble" continues to be a point of contention, with some economists warning that residential property values are about to burst and others calling the chance of a major price collapse slim. U.S. consumers, meanwhile, continue to put a rosy face on the outlook for the home market, according to a poll taken as part of Gallup's annual Economy and Personal Finance Survey. More than 80% of the 1,018 telephone respondents agree that now is the time to purchase a residence. While only a fraction of the group believe that mortgage rates have reached bottom, most concur that the ultra-low trend cannot be sustained; nearly half 47% expect interest rates to rise within the next six months. (www.csmonitor.com)
Christian Science Monitor (04/28/03) P. 12
Remaking History
Although working with historic buildings involves unforeseen conditions and almost implied cost overruns, the marketability of such structures is worth the hassle for some developers, explains National Trust for Historic Preservation's community partners program director John Leith-Tetrault. Developers must first decide to preserve, adaptively reuse or radically revamp the building, and then they should communicate with the local landmarks' commission about the project in order to avoid future hassles and extra expenses. Developers who effectively present projects to the historic review board will often ask to return a building to its original condition on one side in exchange for revamping the building on another side, says Tishman Construction first vice president Jeffrey Dodd. Future tenants of renovated historic buildings will pay more for a creative space with historic value. (www.cpnonline.com)
Commercial Property News (04/03) Vol. 17, No. 8, P. 11; Murdock, James
Self-Sustaining Homes Could Mean the End of Utility Bills or Even the End of Utilities
Home builder Centex Homes incorporated a Sub-Zero refrigerator, iridescent black-glass photovoltaic panels, advanced water-heater design, digital utility meter and grid connectivity in the Los Olivos Pilot Zero Energy House in Livermore, CA. The house can generate up to 2.6 kilowatts by midday from its photovoltaic system, but can tap into the electricity grid during overcast days and at night. Builders used an insulated concrete foundation, cellulose-filled walls and double-panel glass for natural cooling, while a solar hot-water system and on-demand heater heats the house on cool days. The house also uses Davis Energy Group's Night Breeze, an experimental system equipped with sensors and a computer-controlled fan for heating, cooling and air circulation. Project manager Trece Herder credits all these factors, plus the orientation of the house and landscaping, with providing net-zero energy savings. Centex is participating in DOE's Net Zero Energy Homes program with other builders, such as John Wesley Miller, who is building 99 solar-powered homes that are 80% more efficient than conventional homes. Net-zero technology could lower photovoltaic costs and expand the market by encouraging home owners to install energy-efficient systems. Energy-efficiency upgrades increase the price tag of homes, but tax incentives available in some states help offset costs. (www.discover.com)
Discover (04/03) Vol. 24, No. 4; Frishberg, Manny
Financing a Vacation Home? Getting a Loan Is No Picnic
Second homes are eligible for mortgage interest tax deductions just like a primary residence, as long as the property is not a rental. Even so, lenders typically require bigger downpayments, near-perfect credit, higher incomes and a higher interest rate for vacation-property purchases. A larger "spendable" income is especially important since the borrower will need to pay two mortgages as well as double the utility costs, property tax and insurance payments, among other expenses. Lenders will look at the home's location to determine whether the purchase is for rental or vacation purposes, which is necessary because home owners tend to forego payments on their second homes if they find themselves in a financial crisis. According to the American Resort Development Association, there are 7.5 million vacation dwellings nationwide, with Florida, Hawaii, California, Colorado, North Carolina and Arizona among the most popular locales. (www.orlandosentinel.com)
Orlando Sentinel (04/27/03) P. J18; Deboth, Jim
AOL Makes Anti-Virus Software Easy — For a Fee
America Online (AOL) will provide its users with an anti-virus service from McAfee Security Consumer for $2.95 per month. Though McAfee offers the service itself for $34.95 per year, customers are asked each month whether they wish to update the feature for new viruses. AOL's service, meanwhile, automatically updates when users log on. Research reveals that 50% of online users lack anti-virus protection, and an additional 25% fail to perform updates. According to Jupiter Research analyst Michael Gartenberg, It takes anti-virus stuff from a more technology-aware audience to a more novice audience. (www.usatoday.com)
USA Today Online (04/29/03) Davidson, Paul
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