Cable companies cannot have exclusive rights to provide service in apartment buildings that they wire, a federal appeals court ruled Tuesday.
The decision from the Court of Appeals in Washington upholds a Federal Communications Commission ruling that banned the exclusive agreements as anticompetitive.
The deals involved a provider exchanging a valuable service like wiring a multiunit building for cable in exchange for the exclusive right to provide service to all the residents.
The commission said cable operators could no longer enter into such deals and existing ones could not be enforced.
The National Cable & Telecommunications Association and a pair of affiliated real estate groups sued, saying the FCC did not justify the change in policy, consider the retroactive effects or have the authority to regulate the deals. But the appeals court sided with the FCC and said it acted well within the bounds of the law.
A spokesman for the cable association had no immediate comment on the ruling.
Source: AP
Thursday, May 28, 2009
Friday, May 22, 2009
Concern, scrutiny on Capitol Hill over Chinese drywall
Senators and federal regulators joined hands Thursday in efforts to resolve health and structural problems linked to the use of Chinese drywall in thousands of new homes.
“We’ve got to get to the bottom of this because our people are potentially in danger,” said Sen. Bill Nelson, D-Fla., whose state has 35,000 to 50,000 potentially affected homes.
“We are all homeowners and we understand the urgency of the issue,” concurred Lori Saltzman, the division director of the Office of Health Services for the Consumer Product Safety Commission, the agency that’s heading the drywall investigation.
Members of the Subcommittee on Consumer Protection, Product Safety and Insurance said they’d seek $2 million in emergency help mainly to make the research go faster. Saltzman said her agency and others would move quickly without waiting for the money.
The urgent cooperation follows complaints from residents in 16 states – principally Florida and Louisiana, where substantial rebuilding has occurred in the aftermath of severe hurricanes – of a “rotten egg” smell, corroding metals and ailments such as persistent coughs and itchy eyes. Residents and Consumer Product Safety Commission investigators think that these problems are linked to drywall produced in China.
Most of the affected homes were built in 2006 and 2007 after hurricanes resulted in U.S. drywall supplies being exhausted. Builders turned to China, buying enough drywall to cover the state of Rhode Island, according to Sen. Jay Rockefeller, D-W.Va., the subcommittee’s chairman.
Environmental Protection Agency lab findings released Tuesday showed that the Chinese drywall contained sulfur compounds and other chemicals that aren’t in U.S.-made drywall. The next step, EPA officials said, is to see whether the compounds and the complaints are linked.
Saltzman said the research included testing domestic and Chinese drywall under climate conditions like those in the affected states. A strategy for identifying and measuring chemicals in the air under those conditions will be completed by June, she said.
In the meantime, her agency will set up a Web site as soon as possible at www.cpsc.gov/drywall to provide homeowners with updates and answer questions related to Chinese drywall.
The commission is also in talks with China to trace suspect drywall back to its manufacturers, Saltzman said.
Nelson said the solution was to ban the imports, continue testing and ultimately remove Chinese drywall.
Removal could cost $100,000 per home, said Randy Noel, the president of Reve Inc., a Louisiana homebuilder.
Witness Richard J. Kampf of Cape Coral, Fla., a retiree suffering from respiratory problems that he said began when he moved into a new $315,000 home built with Chinese drywall, was asked how much the house was worth now. He answered, “Zero.”
© 2009 McClatchy-Tribune Information Services, Grace Chung. Distributed by McClatchy-Tribune News Service.
“We’ve got to get to the bottom of this because our people are potentially in danger,” said Sen. Bill Nelson, D-Fla., whose state has 35,000 to 50,000 potentially affected homes.
“We are all homeowners and we understand the urgency of the issue,” concurred Lori Saltzman, the division director of the Office of Health Services for the Consumer Product Safety Commission, the agency that’s heading the drywall investigation.
Members of the Subcommittee on Consumer Protection, Product Safety and Insurance said they’d seek $2 million in emergency help mainly to make the research go faster. Saltzman said her agency and others would move quickly without waiting for the money.
The urgent cooperation follows complaints from residents in 16 states – principally Florida and Louisiana, where substantial rebuilding has occurred in the aftermath of severe hurricanes – of a “rotten egg” smell, corroding metals and ailments such as persistent coughs and itchy eyes. Residents and Consumer Product Safety Commission investigators think that these problems are linked to drywall produced in China.
Most of the affected homes were built in 2006 and 2007 after hurricanes resulted in U.S. drywall supplies being exhausted. Builders turned to China, buying enough drywall to cover the state of Rhode Island, according to Sen. Jay Rockefeller, D-W.Va., the subcommittee’s chairman.
Environmental Protection Agency lab findings released Tuesday showed that the Chinese drywall contained sulfur compounds and other chemicals that aren’t in U.S.-made drywall. The next step, EPA officials said, is to see whether the compounds and the complaints are linked.
Saltzman said the research included testing domestic and Chinese drywall under climate conditions like those in the affected states. A strategy for identifying and measuring chemicals in the air under those conditions will be completed by June, she said.
In the meantime, her agency will set up a Web site as soon as possible at www.cpsc.gov/drywall to provide homeowners with updates and answer questions related to Chinese drywall.
The commission is also in talks with China to trace suspect drywall back to its manufacturers, Saltzman said.
Nelson said the solution was to ban the imports, continue testing and ultimately remove Chinese drywall.
Removal could cost $100,000 per home, said Randy Noel, the president of Reve Inc., a Louisiana homebuilder.
Witness Richard J. Kampf of Cape Coral, Fla., a retiree suffering from respiratory problems that he said began when he moved into a new $315,000 home built with Chinese drywall, was asked how much the house was worth now. He answered, “Zero.”
© 2009 McClatchy-Tribune Information Services, Grace Chung. Distributed by McClatchy-Tribune News Service.
HUD issues sanctions against 120 FHA lenders
The U.S. Department of Housing and Urban Development’s (HUD) Mortgagee Review Board announced actions against more than 120 lenders for violating FHA requirements. Violations include a failure to conduct sufficient quality control, failure to continue to meet FHA recertification requirements and falsifying loan documents.
The Helping Families Save Their Homes Act signed yesterday by President Obama grants FHA more oversight authority and provides additional enforcement tools to police lenders who employ false or misleading marketing tactics. In addition, the fiscal year 2010 budget proposal seeks additional investments in FHA to curb fraud and abuse, including enhanced investments in technology, staffing and training to enable FHA to cope with the rising volume of mortgage business, detect fraud, and monitor lenders and appraisers.
“We expect, and more importantly American homebuyers deserve, that when they deal with an FHA-approved lender, they’re dealing with a lender they can trust,” says HUD Secretary Shaun Donovan.
The Board may issue letters of reprimand, suspend FHA lending approval, put a lender on probation, withdraw FHA approval, or charge civil money penalties. Among the actions announced today, 102 lenders had their FHA approval withdrawn, five lenders agreed to make indemnification payments to FHA totaling more than $500,000, and 24 lenders were accessed fines or administrative costs totaling more than $1.2 million.
HUD’s actions result from standard compliance reviews of FHA-approved lenders. HUD’s four Home Ownership Centers conduct a majority of the reviews. Serious violations are referred to the Mortgagee Review Board, with board actions reported quarterly in the Federal Register.
Florida lenders receiving a sanction include:
• Epic Funding Group, Inc., Brandon: Civil penalty of $3,500 and six months probation
• Mission Mortgage Corp., Miramar: Civil penalty of $12,000 and withdrawal of FHA/HUD approval for five years
• Mortgage Investors Corp., St. Petersburg: Agreed to waive insurance benefits or indemnify HUD for losses from 22 HUD/FHA-insured mortgages for a period of five years from the endorsement date
• WCS Lending LLC, Boca Raton: Civil penalty of $3,500 and six months probation
• Amerimortgage Bankers LLC, Miami: HUD/FHA approval withdrawn for one year
• Collins Financial Group Inc., Lake City: HUD/FHA approval withdrawn for one year
• Financial Funding Services Inc., Coral Gables: HUD/FHA approval withdrawn for one year
• Gibraltar Mortgage LLC, Jacksonville: HUD/FHA approval withdrawn for one year
• IFG Mortgage LLC, Coral Gables: HUD/FHA approval withdrawn for one year
• S and L Capital Group, Sarasota: HUD/FHA approval withdrawn for one year
• STS Capital Holding Inc., Tampa: HUD/FHA approval withdrawn for one year
• The Loan Office Inc., Fort Lauderdale: HUD/FHA approval withdrawn for one year
• Eastern Financial Home Loans Corp., Hialeah: HUD/FHA approval withdrawn for one year
For more information, including HUD’s reason for the each sanction, the notice in the Federal Register may be downloaded (PDF format) at: (http://edocket.access.gpo.gov/2009/pdf/E9-9731.pdf)
© 2009 FLORIDA ASSOCIATION OF REALTORS®
The Helping Families Save Their Homes Act signed yesterday by President Obama grants FHA more oversight authority and provides additional enforcement tools to police lenders who employ false or misleading marketing tactics. In addition, the fiscal year 2010 budget proposal seeks additional investments in FHA to curb fraud and abuse, including enhanced investments in technology, staffing and training to enable FHA to cope with the rising volume of mortgage business, detect fraud, and monitor lenders and appraisers.
“We expect, and more importantly American homebuyers deserve, that when they deal with an FHA-approved lender, they’re dealing with a lender they can trust,” says HUD Secretary Shaun Donovan.
The Board may issue letters of reprimand, suspend FHA lending approval, put a lender on probation, withdraw FHA approval, or charge civil money penalties. Among the actions announced today, 102 lenders had their FHA approval withdrawn, five lenders agreed to make indemnification payments to FHA totaling more than $500,000, and 24 lenders were accessed fines or administrative costs totaling more than $1.2 million.
HUD’s actions result from standard compliance reviews of FHA-approved lenders. HUD’s four Home Ownership Centers conduct a majority of the reviews. Serious violations are referred to the Mortgagee Review Board, with board actions reported quarterly in the Federal Register.
Florida lenders receiving a sanction include:
• Epic Funding Group, Inc., Brandon: Civil penalty of $3,500 and six months probation
• Mission Mortgage Corp., Miramar: Civil penalty of $12,000 and withdrawal of FHA/HUD approval for five years
• Mortgage Investors Corp., St. Petersburg: Agreed to waive insurance benefits or indemnify HUD for losses from 22 HUD/FHA-insured mortgages for a period of five years from the endorsement date
• WCS Lending LLC, Boca Raton: Civil penalty of $3,500 and six months probation
• Amerimortgage Bankers LLC, Miami: HUD/FHA approval withdrawn for one year
• Collins Financial Group Inc., Lake City: HUD/FHA approval withdrawn for one year
• Financial Funding Services Inc., Coral Gables: HUD/FHA approval withdrawn for one year
• Gibraltar Mortgage LLC, Jacksonville: HUD/FHA approval withdrawn for one year
• IFG Mortgage LLC, Coral Gables: HUD/FHA approval withdrawn for one year
• S and L Capital Group, Sarasota: HUD/FHA approval withdrawn for one year
• STS Capital Holding Inc., Tampa: HUD/FHA approval withdrawn for one year
• The Loan Office Inc., Fort Lauderdale: HUD/FHA approval withdrawn for one year
• Eastern Financial Home Loans Corp., Hialeah: HUD/FHA approval withdrawn for one year
For more information, including HUD’s reason for the each sanction, the notice in the Federal Register may be downloaded (PDF format) at: (http://edocket.access.gpo.gov/2009/pdf/E9-9731.pdf)
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, May 20, 2009
Court ruling could help condo associations go after investor-owners who don't pay fees
Miami judge's order sets key precedent
To beat the bad economy, many South Florida investor-owners of homes and condominiums are collecting rent from tenants but skipping out on their own association fees.
Doing so sets off a vicious financial cycle. Associations must slash services and raise fees for owners who do pay to make up lost revenue from investors not paying their fair share. But a recent South Florida court decision makes it far easier for community associations to get their hands on that money, particularly when it involves multiple deadbeat investors.
A Miami-Dade County judge in March ruled that associations can file a single "blanket" receivership order to go after multiple unit owners and their rent payments to cover past due fees. Associations are not only able to siphon rent payments to cover overdue fees, but in some cases up to a year's worth of payments in advance. And already associations are lining up to take advantage.
"It's the last option for associations in dire straits because of this problem," said Javier "Jay" Lopez, property manager of The Oaks at Miami Gardens, which won the first order to divert rent money from investors in foreclosure to the association.
Until now, receivership laws that rely on court-approved professionals to act as bill collectors were used on a one-unit-at-a-time basis. But they were rarely tapped by associations because they were costly to file -- upward of $2,500 in filing and attorney fees.
The Oaks' attorneys, however, argued the laws should also be used on a "blanket" basis, which means associations pay once to file a court motion that covers all units in a development currently in foreclosure and those that fall into trouble later.
"In this upside-down market, some investors are trying to recoup as much money as they can for as long as they can," said David Arnold, a founding partner with Association Law Group, which represents The Oaks and approximately 200 associations across Florida. "To do that, they stop paying their mortgage and maintenance fees while collecting rent. They bleed associations for as long as they can."
Of 61 units in The Oaks association, about half are in foreclosure and owned by rent-collecting investors. Some have not made a payment to the association in two years. Typically, they pocket about $1,200 a month from each tenant but fail to pay about $250 a month in association. In turn, the association has had to raise fees for those owners who do pay. The Oaks should have been collecting $11,000 in maintenance fees each month, but scraped by on about $3,000 per month.
The results have been devastating.
"At some points this association has been in arrears with every vendor and has been within a day or two of having the electricity and water shut off," Lopez said. "The garbage has been cut twice."
Since the blanket receivership order, Lopez said four investors in foreclosure have started paying.
These receivership laws are only being used to collect rent from tenants whose landlords have stopped paying maintenance fees while under foreclosure by the association. And the association itself does not go into receivership; individual owners do.
Arnold said the phenomenon was not as widespread as it is today when the real estate market was strong and investors were making big profits.
"Today this is applicable to nearly every association in Florida," Arnold said. "And the financial impact is tremendous on every association when just one or two unit owners are doing this."
Other associations are following The Oaks' legal lead. "We have 10 filings on the behalf of other associations in the hopper now," Arnold said.
That includes The Villas at Tuscany Condominium Association in Sunrise, which has 234 units. "About 24 are in foreclosure and another 30 are delinquent, and a majority of those are owned by investors who we know are collecting rent but not paying us and leaving us to struggle," said association secretary Kristen Torrado. "That's why we have to look at this receivership option."
Source: Daniel Vasquez at SunSentinel
To beat the bad economy, many South Florida investor-owners of homes and condominiums are collecting rent from tenants but skipping out on their own association fees.
Doing so sets off a vicious financial cycle. Associations must slash services and raise fees for owners who do pay to make up lost revenue from investors not paying their fair share. But a recent South Florida court decision makes it far easier for community associations to get their hands on that money, particularly when it involves multiple deadbeat investors.
A Miami-Dade County judge in March ruled that associations can file a single "blanket" receivership order to go after multiple unit owners and their rent payments to cover past due fees. Associations are not only able to siphon rent payments to cover overdue fees, but in some cases up to a year's worth of payments in advance. And already associations are lining up to take advantage.
"It's the last option for associations in dire straits because of this problem," said Javier "Jay" Lopez, property manager of The Oaks at Miami Gardens, which won the first order to divert rent money from investors in foreclosure to the association.
Until now, receivership laws that rely on court-approved professionals to act as bill collectors were used on a one-unit-at-a-time basis. But they were rarely tapped by associations because they were costly to file -- upward of $2,500 in filing and attorney fees.
The Oaks' attorneys, however, argued the laws should also be used on a "blanket" basis, which means associations pay once to file a court motion that covers all units in a development currently in foreclosure and those that fall into trouble later.
"In this upside-down market, some investors are trying to recoup as much money as they can for as long as they can," said David Arnold, a founding partner with Association Law Group, which represents The Oaks and approximately 200 associations across Florida. "To do that, they stop paying their mortgage and maintenance fees while collecting rent. They bleed associations for as long as they can."
Of 61 units in The Oaks association, about half are in foreclosure and owned by rent-collecting investors. Some have not made a payment to the association in two years. Typically, they pocket about $1,200 a month from each tenant but fail to pay about $250 a month in association. In turn, the association has had to raise fees for those owners who do pay. The Oaks should have been collecting $11,000 in maintenance fees each month, but scraped by on about $3,000 per month.
The results have been devastating.
"At some points this association has been in arrears with every vendor and has been within a day or two of having the electricity and water shut off," Lopez said. "The garbage has been cut twice."
Since the blanket receivership order, Lopez said four investors in foreclosure have started paying.
These receivership laws are only being used to collect rent from tenants whose landlords have stopped paying maintenance fees while under foreclosure by the association. And the association itself does not go into receivership; individual owners do.
Arnold said the phenomenon was not as widespread as it is today when the real estate market was strong and investors were making big profits.
"Today this is applicable to nearly every association in Florida," Arnold said. "And the financial impact is tremendous on every association when just one or two unit owners are doing this."
Other associations are following The Oaks' legal lead. "We have 10 filings on the behalf of other associations in the hopper now," Arnold said.
That includes The Villas at Tuscany Condominium Association in Sunrise, which has 234 units. "About 24 are in foreclosure and another 30 are delinquent, and a majority of those are owned by investors who we know are collecting rent but not paying us and leaving us to struggle," said association secretary Kristen Torrado. "That's why we have to look at this receivership option."
Source: Daniel Vasquez at SunSentinel
Tuesday, May 12, 2009
Florida’s existing home, condo sales rise in 1Q 2009
Sales of existing single-family homes in Florida rose 25 percent in first quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 31,412 existing homes sold statewide in 1Q 2009; during the same period the year before, a total of 25,071 existing homes sold. It marks the third consecutive quarter that Florida has reported higher existing home sales; sales levels in the third and fourth quarters of 2008 were higher than the corresponding three-month period of the previous year, according to FAR.
Sales of existing condominiums statewide in the first quarter rose 19 percent compared to the same time the previous year. This marks the second three-month period for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 1Q 2009 also increased over 4Q 2008’s sales figure in both the existing home and existing condo markets, FAR records show. For 1Q 2009, statewide sales of existing homes rose 4.14 percent over the 4Q 2008 figure; existing condo sales statewide in 1Q 2009 increased 21.1 percent over the 4Q 2008 level.
“Many first-time homebuyers are entering the market now to take advantage of current low mortgage rates, plentiful housing inventory and affordable homeownership opportunities,” says 2009 FAR President Cynthia Shelton, CCIM (Certified Commercial Investment Member). “Typical homebuyers are realizing that now is the time to buy – they can find the Florida home of their dreams at a cost they can afford. Homeownership has always offered a wide range of benefits, including building financial security and increasing a sense of community, but the advantages offered in today’s market are unique.”
One such advantage is a dream come true for first-time homebuyers in Florida, she adds, thanks to a new program that the 2009 Florida Legislature approved through the adoption of the state’s general budget last week. Lawmakers passed a provision setting aside $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance. Beginning July 1, those who qualify for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund.
Shelton adds, “The beauty of this program is that the state will be paid back and, conceivably, more potential homebuyers could take advantage before the Dec. 1, 2009, expiration of the $8,000 federal first time homebuyer tax credit. While details of the program are still being worked out, we are all very excited about the incredible opportunity this offers for thousands of Florida families. It’s $8,000 more reasons to buy your first Florida home!”
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the first quarter compared to the same three-month-period a year earlier, while 12 MSAs showed gains in condo sales.
The statewide existing-home median sales price was $141,000 in the first quarter; a year earlier, it was $202,300 for a decrease of 30 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 10,143 units sold statewide for the quarter compared to 8,554 in 1Q 2008 for a 19 percent increase. The statewide existing-condo median sales price was $110,100 for the three-month period; in 1Q 2008, it was $177,000 for a decrease of 38 percent.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.06 percent in 1Q 2009; one year earlier, it averaged 5.88 percent.
© 2009 FLORIDA ASSOCIATION OF REALTORS
Sales of existing condominiums statewide in the first quarter rose 19 percent compared to the same time the previous year. This marks the second three-month period for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 1Q 2009 also increased over 4Q 2008’s sales figure in both the existing home and existing condo markets, FAR records show. For 1Q 2009, statewide sales of existing homes rose 4.14 percent over the 4Q 2008 figure; existing condo sales statewide in 1Q 2009 increased 21.1 percent over the 4Q 2008 level.
“Many first-time homebuyers are entering the market now to take advantage of current low mortgage rates, plentiful housing inventory and affordable homeownership opportunities,” says 2009 FAR President Cynthia Shelton, CCIM (Certified Commercial Investment Member). “Typical homebuyers are realizing that now is the time to buy – they can find the Florida home of their dreams at a cost they can afford. Homeownership has always offered a wide range of benefits, including building financial security and increasing a sense of community, but the advantages offered in today’s market are unique.”
One such advantage is a dream come true for first-time homebuyers in Florida, she adds, thanks to a new program that the 2009 Florida Legislature approved through the adoption of the state’s general budget last week. Lawmakers passed a provision setting aside $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance. Beginning July 1, those who qualify for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund.
Shelton adds, “The beauty of this program is that the state will be paid back and, conceivably, more potential homebuyers could take advantage before the Dec. 1, 2009, expiration of the $8,000 federal first time homebuyer tax credit. While details of the program are still being worked out, we are all very excited about the incredible opportunity this offers for thousands of Florida families. It’s $8,000 more reasons to buy your first Florida home!”
Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the first quarter compared to the same three-month-period a year earlier, while 12 MSAs showed gains in condo sales.
The statewide existing-home median sales price was $141,000 in the first quarter; a year earlier, it was $202,300 for a decrease of 30 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 10,143 units sold statewide for the quarter compared to 8,554 in 1Q 2008 for a 19 percent increase. The statewide existing-condo median sales price was $110,100 for the three-month period; in 1Q 2008, it was $177,000 for a decrease of 38 percent.
Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.06 percent in 1Q 2009; one year earlier, it averaged 5.88 percent.
© 2009 FLORIDA ASSOCIATION OF REALTORS
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