Morton Plant Mease to expand Bardmoor Center

Morton Plant Mease to expand Bardmoor Center
LARGO – To meet the growing health care needs of communities within central Pinellas County, Morton Plant Mease Health Care will expand its Bardmoor Outpatient and Surgery Center.

Approximately 2,500 people enter the center every day for their health care and wellness needs. Construction is under way on a new three-story, 75,000-square-foot medical office building. An air-conditioned corridor will connect the new structure to the current Bardmoor building, which covers more than 120,000 square feet. The new space will provide expanded cardiology services, an expanded sleep disorders center, additional specialty and primary care physician offices and community education and meeting space.

In addition to the new medical office building, the project includes the redesign and renovation of approximately 20,000 square feet of current office space within Bardmoor that will bring new physicians to the campus for primary and specialty care. The cost for renovation and new construction is projected to be approximately $13 million. Construction of the new office building is expected to be complete by fall, 2007. Renovation of the current building is expected to continue into 2008.

The center, at 8787 Bryan Dairy Road, opened in 1998 providing services for radiology, laboratory, surgery and endoscopy, rehabilitation, and centers for hernia, sleep disorders and massage therapy.

Largo : Hearings set for proposed crematorium

Hearings set for proposed crematorium
By DAVE SHELTON

LARGO – The city planning board will meet Sept. 7 to consider whether a crematorium should be built in the Serenity Gardens Memorial Park on Wilcox Road.

When the park’s owners notified the city of its proposal last year, hundreds signed petitions asking the city to reject the plan. They contend emissions and traffic will endanger their health and reduce area property values.

With consultant’s reports in hand that indicate the proposal meets all federal, state and local codes, the city’s Community Development Director Mike Staffopoulos has approved the plans submitted by Moss-Feaster Funeral Homes. But, noting the opposition, he has turned the issue over to the city planners with final consideration expected by the city commission at its Sept. 19 meeting.

The proposal was first submitted to the city more than 14 months ago. Moss-Feaster has planned to raise a building on vacant land adjacent to its cemetery and mausoleum. A new building containing three crematorium ovens for reducing bodies to ashes was planned, with a new parking lot and driveway opening on Wilcox Road.

Opposition was immediate and loud. Opponents marched on Indian Rocks Road with placards and circulated petitions. A legal fund was established to take the issue to court if needed.

Since a crematorium has been established as permissible within a cemetery, city approval would lie solely with Staffopoulos. If he approved the plans, which he has, the opponents could appeal to the city planning board and commission.

Staffopoulos, noting the public outcry, automatically referred his decision to the planning board.

Residents claim that, while federal tests have shown no hazardous materials are emitted by crematoriums, there are no reports on the long-term affects of the known emissions of elements such as mercury from tooth fillings.

The residents have also complained that the crematorium would have to be used to capacity to be financially successful and that this would increase the levels of emissions and traffic on the residential Wilcox Road.

All of this, they contend, would reduce their property values according to area real estate experts.

Largo : City to save recycling

City to save recycling
By DAVE SHELTON

LARGO – City Commissioners reached into the trash bin last week, pulled out its recycling program and figured out how to recycle the program that was scheduled to be dumped at the landfill.

Earlier this year, city staff reported the number of people sorting their trash had dropped so low it was becoming too expensive to keep the program going. City Manager Steve Stanton tossed the program out when formulating a new city budget for the next two years.

Public works numbers showed only 25 percent of city residents were using the blue recycling containers and sorting glass and paper.

But, then word got out.

Letters to the Editor and scores of e-mails from constituents almost unanimously, and loudly, opposed plans to dump their favorite environmental effort.

“Is there anyone here who wants us to wipe this out?” asked Mayor Pat Gerard during the commission’s Aug. 24 workshop meeting. She was greeted, at first, by silence.

The commissioners then voted unanimously to restore some $250,000 a-year to the city budget to retain the program and to encourage more residents to recycle. This would include hiring a recycling coordinator to oversee the program and increase participation.

The coordinator would cost the city nearly $60,000 a year.

Commissioner Harriet Crozier said she was recently impressed by a recycling program she saw in action during a visit to Phoenix, Ariz.

Commissioner Gay Gentry said she felt Largo actually abandoned its recycling efforts several years ago when, during a budget crisis, the recycling coordinator position was abandoned. She said she believed that the 25 percent of residents now using recycling are a hard-core base but that another 50 percent of residents just need to be convinced of the importance of recycling.

Stanton said that, with a restructured city marketing department during the next two years, a coordinator can build a marketing program that would make recycling more popular.

In other budget action, it appears commissioners are prepared to give themselves a raise this year. Facing criticism over tax increases the past several years the commission had rejected any pay increase for its members. Commissioners are paid $12,000 a-year and the mayor $18,000.

The city also provides them with expense accounts, health benefits and retirement funds.

Crozier broached the subject during the Aug. 24 meeting. Commissioner Mary Gray Black said she has vowed “not to vote to increase our salary while I am in office.”

“I came on the commission knowing what the stipend was so I really feel that I do not want any increase,” said Black.

Commissioner Andy Guyette, noting elected officials in other cities are paid more than in Largo, suggested a 4 percent pay increase for commissioners, similar to that being given to other city employees.

Gerard said some commissioners don’t need the money but others might.

“People ask you to donate (to their causes) all the time,” she said. She explained that the elected officials are barraged by requests for their attendance at special events “some that are pretty expensive” and to contribute to charities.

A consensus appeared to support a 4 percent raise for the commissioners.

There was less support for a proposed increase in legal fees next year, based on litigation expected by City Attorney Alan Zimmet.

“I thought we were resolving some of our conflicts,” commented Gerard.

“Most of the disputes weren’t initiated by us,” explained Stanton. “We’re anticipating some action about our sewer (connection outside of city limits) policies and last year’s annexation of the Evatone Corporation. There’s still potential litigation with the school district over our stormwater fees.”

Guyette said he didn’t want to increase the budget for legal fees by $150,000 just yet. He was concerned the commission then wouldn’t be aware of what it had spent until after the city was committed to even more money later in the year.

“I’m looking for us to use more diplomacy in resolving these issues,” Gerard said. “I think we can take a different tack than we have in recent years – less confrontational-and I think we can save some legal fees in that way.”

It was decided to cut the administration’s $150,000 increase to just $100,000.

Gulf Beaches Library schedules programs

Gulf Beaches Library schedules programs
MADEIRA BEACH – Gulf Beaches Public Library has scheduled the following September programs:

Computer Classes

• Introduction to the Internet – Thursday, Sept. 7, 11:30 a.m.

• Introduction to E-mail – Thursday, Sept. 14, 11:30 a.m.

Adult Programs

• Film Movement presentation of “Morlang” – Tuesday, Sept. 5, 5:30 p.m.

• “Technical Stocks Analysis for Beginners” – Tuesdays, Sept. 12 and 26, 1 p.m.

• Travel film of the month: “China (Central China)” – Wednesday, Sept. 13, 2 p.m.

• Digital Camera Courses – Fridays, Sept. 15 to Oct. 20, 1 p.m.

• Book Discussion Group discusses “The Reading Group” by Elizabeth Noble – Tuesday, Sept. 19, 10:30 a.m.

• Swing Traders Investment Group – Wednesday, Sept. 20, 1 p.m.

• Investors Discussion Group – Thursdays at 2:30 p.m.

Children’s Program

• Preschool Storytime – Wednesdays at 10:30 a.m.

The library is closed on Monday, Sept. 4, in observance of Labor Day. The library is at 200 Municipal Drive. Call 391-2828, ext. 202.

Town to educate citizens on charter amendment fight

Town to educate citizens on charter amendment fight
Town attorney makes himself available for public speaking engagements to talk about the proposed amendments to the county charter

By BOB MACPHERSON

INDIAN SHORES – The best defense is a good offense. Those words underpinned the battlefield strategy of Alexander the Great, Napoleon, Patton and other great military strategists of history.

Indian Shores Mayor Jim Lawrence doesn’t pretend to be in that same illustrious company but he supports the same strategy when it comes to protecting the rights of his community and those of his neighbor cities and towns.

“Our best defense is a good offense,” Lawrence said, referring to the need to vigorously combat Pinellas County’s effort to make changes to the county charter that he and others feel are detrimental to towns and cities.

Such is the concern that 21 of 24 municipalities in Pinellas County jointly filed a lawsuit on Aug. 24 to have the proposed amendments removed from the November election referendum ballot.

Indian Shores’ Town Attorney Jim Yacavone said the community needs to educate its citizens on the issue.

“We need to drag out the voters. Sixty percent of voters in the county live in municipalities,” he said.

Yacavone said he would be happy to brief civic clubs and other organizations pro bono on the issues which he has gone on record as describing as “something municipalities must wake up to and get involved. In my 30 years of legal experience the recommendations of the charter review commission are one of the most blatant grabs for power I have experienced in government.”

Lawrence said the town will use its newsletter, Yacavone’s briefings and other means to educate Indian Shores’ citizens on the issues.

The recommendations of the Charter Review Commission will be placed on the November election referendum ballot.

Sky bridges a no, no

In other action, the council unanimously passed the first reading of an ordinance to prohibit the construction of pedestrian and vehicle overpasses over rights of way within the town. The town maintains that such structures would interfere with evacuation efforts and the response of emergency vehicles and personnel in event of hurricanes and other major storms. Moreover, council felt that air bridges would be aesthetically bad and adversely affect nearby property values.

The prohibitive ordinance will go into effect after its second reading which is expected in September. Town council in July turned down an application for a site plan review of an air bridge spanning Gulf Boulevard. The bridge would have connected two condos, one on each side of the boulevard. Council subsequently established a moratorium on such structures until a formal prohibitive ordinance could be developed.

Madeira Beach to cash in on $2M sewer system

Madeira Beach to cash in on $2M sewer system
Raise the glasses: Crystal Island residents celebrate full bridge opening

By WAYNE AYERS

MADEIRA BEACH – The Board of Commissioners has voted to sell its sanitary sewer system to Pinellas County for a little more than $2 million. The commission unanimously passed a resolution approving an interlocal agreement that established the terms of the sale at its Aug. 22 regular meeting.

As part of the arrangement, the county will spend nearly $3 million to upgrade the system and bring it up to code, Vice Mayor Art Thomas said. The improvements include laying 15 miles of new pipe, repairing force spans and replacing existing pump stations, he said. Replacement of more than 300 manhole covers is also part of the project, Thomas said.

The sewer system sale has been in the works for the past 10 months, said Steven Carroll, director of finance for Pinellas County Utilities. The county has been doing an assessment of the system and working with city staff on the terms of the sale, he said.

Carroll said that the sale of the city-owned system reflects a growing trend within Pinellas County. The county owns the sewer system in Belleair Beach, Belleair and North Redington Beach, and is in discussions with St. Pete Beach and Indian Rocks Beach to buy their facilities, Carroll said.

Thomas said that it was important for the city to sell the sewer system while it is still in good condition. He cited North Redington Beach as a community that allowed its sewer system to deteriorate to the point that it was practically worthless.

“They had to sell it for $10,” he said.

The sale represents a “real win situation for both the city and the county,” Thomas said. Madeira Beach gets $2 million for the system and another $3 million in improvements, while the county gains economies of scale that will help keep water rates low, Thomas said.

The city will get another nearly half million when the 132nd Avenue Lift Station is replaced, Thomas said. Developer Sam Lewis has agreed to do that as part of the Madeira Bay development, according to City Manager Jill Silverboard.

Commissioner Martha Boos said the city needs to put aside the money gained from the sale “and spend it on something exceedingly worthwhile for the community.”

The sale is subject to approval by the Pinellas County Commission and is scheduled to go before that body on Sept. 19.

Crystal Island Bridge opens

A celebratory mood accompanied the news that the Crystal Island Bridge was opened to two-way traffic on Aug. 22. The event was described as a “soft opening” by City Manager Silverboard, who said that a number of completion activities still need to be done over the next few weeks. She mentioned the laying of sod, landscaping and plant material placement as items yet to be accomplished.

Mayor Charles Parker questioned the road surface on the bridge.

“It looks half finished. There is nothing but hard concrete to drive over,” he said. Boos said she had heard complaints about the paving. “Someone called me and said ‘It looks horrible,’” she related.

Silverboard said that she was unsure as to whether the road surface was temporary or the final product. She said that asphalt cannot be laid on the bridge surface.

One resident who lives adjacent to the bridge asked that fishing not be permitted on the structure. Rob Earls of Crystal Island Drive said that fish cleaning would destroy the “gorgeous” paint job. The commission promised to address the fishing issue at a future workshop meeting.

Still, the commissioners and audience members appeared highly pleased with Silverboard’s announcement that “the stop lights are gone from the road.”

“It’s nice to have a bridge, even if it cost $1.7 million,” Parker added.

As U.S. housing costs rise, young adults get more creative with living arrangements

CHICAGO (AP) -- Aug. 15, 2006 -- Some are buying homes with friends or siblings. Others barter for rent -- or live in buildings where residents share occasional meals, childcare and sometimes a car.



In particularly pricey areas, such as New York City, still others are living in "dorms for adults."



Housing costs that can dwarf a starting salary are prodding young adults in many parts of the country to get increasingly creative about their living arrangements -- well beyond the moving-back-with-the-folks scenario.



They do it to save money, share resources and, when possible, to build equity. Along the way, many also see it as a chance to build community in the impersonal, big city.



"We live in a world, nowadays, where you're encouraged to isolate yourself," says Brian Gleichauf, a 30-year-old high school teacher who grew up in suburban Chicago. "You live in your own little home and you have your quarter-acre of grass to mow and everybody owns their own lawn mower and everyone has their own cars.



"It seems like an incredible waste to me."



Among other options, he and wife Jenny, a 27-year-old pastor, are looking into Prairie Onion Cohousing, a small group of Chicagoans who are considering converting a vintage apartment building near Lake Michigan into multigenerational, environmentally friendly housing. Building on an idea that originated in Denmark, residents would buy or rent their own units, but share common areas and whatever resources and duties they agree upon.



Creating community is a driving force in their case. But for some, sharing resources -- and a mortgage -- is a simple matter of economics, especially as interest rates have risen since spring.



"I quickly, quickly realized I wasn't going to get anywhere on my budget," says Jennifer Quint, a 25-year-old public relations professional. After her apartment building went condo, she bought a three-bedroom house in Apopka, Florida, with brother Jason, a 27-year-old accountant. They plan to rent the third room to a friend to help with expenses -- with hopes of selling in five years to buy their own places.



Of course, such arrangements represent a small fraction of all housing deals.



"My sense is that it's a growing trend, but it's still a pretty small number," says Paul Bishop, manager of real estate research for the National Association of Realtors.

More often, experts say, young adults are stretching themselves to buy property with little or no down payment and using interest-only loans. Those financing options became increasingly popular during the recent housing boom, but also carry risks such as a heavier debt load and an eventual day of reckoning.



Tougher to track are the cheaper housing deals made among friends or family or set up online, where bartering on such sites as Craigslist and TradeAway is in vogue.



After making an online posting, 26-year-old Christopher Stone is considering an offer of a two-bedroom house in Andover, Massachusetts, in exchange for providing 15 hours of childcare a week for the family that owns the house. He is then looking to rent the second bedroom to someone who could provide some care for his own young children.



In another case, Ian McIntyre says he and friends have flitted around the world since college, staying in touch by cell phone, MySpace and e-mail to set up mutually convenient housing situations. Now in Boulder, Colorado, he has landed back with a platonic girlfriend he has lived with on and off for the past five years.



"We agree that we probably will live together until one of us gets hitched. The convenience is huge, the companionship is huge and the financial rewards don't suck either," says McIntyre, who is 25.



Companionship -- or that need for community -- is key for many.



It is one reason Karen Falcon, an apartment building owner in New York, decided to try the "dorms for adults" approach by renting rooms instead of entire apartments.



Charging $725 (euro570) to $825 (euro649) per room in a four- or five-bedroom apartment -- cheap by New York standards -- Falcon goes with her gut when placing tenants with other strangers.



"Some people are kind of short or snappy. I don't rent to those people," she says. "You can hear in a person's voice if they're respectful, considerate, kind of sweet."



In three years, she says she has only had a problem with one tenant.



Still, these creative housing arrangements are not always perfect, as the Quint siblings in Florida have found.



After they bought the house in June, they quibbled over who would get the master bedroom and bath. Jennifer eventually won, but only after she agreed to take the smaller of the two common living areas as her own.



They also sometimes fight over noise from the TV. "And my brother doesn't seem to understand when the trash goes out," she says, laughing.



But she is not sorry they bought the house together.



"It's been quite an experience," Quint says. "We get along better when we're not living together -- but so far, we've done really well."



On the Net: Prairie Onion Cohousing: http://www.prairieonioncohousing.org/

NAR joins forces with Mexican real estate group

WASHINGTON -- Aug. 15, 2006 -- The National Association of Realtors® (NAR) has formed a joint venture with the Mexican real estate association, Association Mexicana de Profesionales Immobiliarios, with the goal of creating more uniform real estate business standards between the United States and Mexico.



The agreement, which is NAR’s first-ever international joint venture, will result in all members of the Mexican association becoming dues-paying international members of NAR, allowing them to use the Realtor® logo, registration mark, and limited international membership benefits.



All members of the Association Mexicana de Profesionales Immobiliarios, or AMPI, agree to abide by a Code of Ethics compatible with NAR’s. Only AMPI members will be allowed to use the Realtor logo and trademark in Mexico.



"This exciting new joint venture will result in more open, transparent, and standardized professional practices across the North American Free Trade Agreement marketplace," says NAR President Thomas M. Stevens. "The Realtor brand will now be implemented in a standard manner across the United States, Canada, and Mexico." He credits NAR President-elect Pat Vredevoogd Combs’ in setting up the new venture.



More than 40 percent of Americans living abroad are in these markets.



"Immigration, the growing international second home market, and international trade all translate into billions of dollars in real estate opportunities in our markets," Stevens adds.



Course will launch in November



As part of the new venture, a four-hour course called "Doing Business in Mexico" will be launched at the NAR annual conference in New Orleans in November. The course will later be made available to state and local real estate associations; an online version is planned for 2007.



For the first time in history, large numbers of Mexicans are becoming homeowners. Mexico’s economic stability has laid the foundation for a growing market for mortgage-based securities. Mexico is also the No. 1 foreign destination for retirees from the United States, with over 1 million Americans living there.



Main attractions for second homebuyers in Mexico include proximity to the seaside and mountains, reasonable costs of resort properties and lifestyle considerations. Foreigners can own property in Mexico through bank trusts in beachfront and border regions, and title insurance is available.



"This joint venture reflects AMPI’s desire to be more closely linked to the NAR organization, its standards and practices, and also will open up opportunities for members on both sides of the border to do more business together," says Galo Blanco, AMPI’s 2006 president.



AMPI, the Mexican national professional organization of real estate brokers and agents in both commercial and residential real estate, was established in 1956 and presently has 2,500 members who represent companies located in all regions of Mexico.



Representatives of both organizations should formally ratify the new agreement at a joint conference Oct. 4-7, 2006, in Mexico City. All AMPI members will become international Realtor members in early 2007.



© 2006 FLORIDA ASSOCIATION OF REALTORS

Citizens: Insurer focusing on PR effort

TALLAHASSEE, Fla. -- Aug. 15, 2006 -- Citizens Property Insurance Corp. is hoping to set the record straight.



Board members of Florida's insurer of last resort voted Monday to move forward with a public information effort to educate the public about its financial status and the types of properties it insures.



Jay Odom, a member of Citizens' board of governors, said the initiative was needed to counteract misconceptions about the quasi-state agency, such as the notion that the company only insures expensive property in coastal areas.



"There is an immense amount of misinformation and misperception about Citizens," Odom said during the meeting held by teleconference. "I think we need to have a message directly from Citizens itself just stating some of the conditions that we're in."



Among the information Odom suggested to be included in potential newspaper advertisements was:



• Citizens currently insures more than 1.2 million property owners in the state, making it Florida's largest residential property insurer.



• Citizens insures more than 180,000 mobile homes in the state, and that number increases by 10,000 each month. "We're virtually the only mobile home insurer in the state," Odom said.



• Fifty percent of Citizens' single-family home portfolio is residences with an insured value of $150,000 or less.



The company also insures more than 150,000 homes in Pasco, Pinellas, Hernando and Hillsborough counties because sinkhole litigation has driven away many private insurers.



• Citizens currently has the resources to pay $10 billion in claims and is writing about $4.5 billion in annual premiums.



Such information, Odom said, would help put the public's mind at ease.



"That way the people that do have Citizens will have some direct knowledge that we're financially sound -- what we do, what we cover," Odom said. "That we are obligated to provide homeowners insurance to anyone in the state of Florida that owns property. I think it's gotten to the point where a lot of people think that all Citizens does is high-risk hurricane insurance."



However, Citizens board member Richard DeChene questioned the wisdom of advertising Citizens' $4.5 billion in annual premiums in newspapers.



"Our purpose here is to tell the policyholders of Citizens that we're able to manage the insurance program for them," DeChene said. "Here's one thing that I would be very, very concerned about, and that is putting in the newspaper that Citizens is getting $4.5 billion a year -- that we have all this money. I've just got to ask one question: How would you ever expect us to get to rate adequacy when you're telling people we have all this money?"



But Citizens Board Chairman Bruce Douglas pointed out that much of that premium money would go to pay debt service on a recent $3 billion bond sale that is helping the insurance company be able to pay claims.



DeChene suggested the financial information relayed to the public be limited to Citizens having a successful bond sale and enough capital to cover a significant number of claims.



"I think when you get into more than that, I just don't know how the press or anybody else -- the legislators -- how they would take it or how they would feel," DeChene said. "And I only say that because we're still facing an uphill battle to obtain rate adequacy."



Citizens President Bob Ricker disagreed.



"I think telling the amount that we have is very important because that is a very large, credible number," Ricker said. "I think that is an issue that we face in the perception with people."



Copyright © 2006 The Bradenton Herald, Fla., Brian Neill. Distributed by McClatchy-Tribune Business News.

USAA asks to raise homeowner, condo insurance rates by 40 percent

FORT LAUDERDALE, Fla. (AP) -- Aug. 15, 2006 -- USAA Casualty, which primarily insures military personnel and their families, has asked the state to increase its homeowner and condominium premiums by an average of 40 percent.



The company made the request Friday to the state Office of Insurance Regulation (OIR). USAA insures more than 280,000 people in Florida, according to the OIR.



USAA and two of Florida's five largest insurers -- State Farm Florida Insurance Co. and Nationwide Insurance Co. of Florida -- have previously asked to raise premiums because of reinsurance. Reinsurance is insurance coverage for insurance companies, to help pay claims after a catastrophe.



State regulators approved State Farm's rate hike last month. USAA received an average 8 percent rate increase earlier this year.



''Reinsurance plays into the equation, but (the new increase is) also looking at anticipated future losses and rising construction costs,'' said USAA spokeswoman Lynne McChristian.



Reinsurance prices skyrocketed and coverage availability shrank after Hurricane Katrina last year, and the market is unlikely to improve soon, said Bob Lotane, a spokesman for Insurance Commissioner Kevin McCarty.



''That being said, a couple of years of good weather will probably make things a lot brighter,'' Lotane said.



Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Florida's existing home median price up, sales ease in 2Q 2006

ORLANDO, Fla. -- Aug. 15, 2006 -- In second quarter 2006, Florida's housing sector followed the national trend, showing signs of a market adjusting to a better balance between buyers and sellers. Statewide sales of single-family existing homes totaled 53,161 during the three-month period, a decrease of 27 percent compared to 72,870 homes sold during the same time a year ago, according to the Florida Association of Realtors® (FAR).



"Sales of existing single-family homes in Florida behaved like much of the U.S. in the 2006 second quarter, with the declining strength of the domestic economy continuing to act like a stiff wind in the face of the existing real estate market," says Dr. David Scott, executive director of the Dr. Phillips Institute for the Study of American Business Activity and professor of finance at the University of Central Florida (UCF).



The statewide existing-home median sales price rose 9 percent to reach $254,800 in the second quarter; a year ago, it was $234,500. In 2001, the second-quarter statewide median sales price was $127,400, which is an increase of about 100 percent over the five-year period. The median is a typical market price where half the homes sold for more, half for less.



This environment is likely to endure across the remaining months of 2006 owing to several factors, Scott says, including the declining rate of growth in the real gross domestic product (GPD); a tepid increase in the number of jobs being created over the past three months; rising conventional mortgage rates; and a rising inventory of homes for sale. He notes that the rising costs of gasoline and energy are starting to strain many household budgets while wages are just barely keeping up with the recent price inflation of about 3.6 percent a year.



Looking to Florida's existing condominium market, sales of existing condos also decreased during the quarter, with a total of 16,522 condos sold statewide compared to 24,599 in second quarter 2005 for a 33 percent decline, according to FAR. The statewide median sales price for condos rose 1 percent to $219,100 for the three-month period; a year ago, it was $217,900.



The latest economy outlook from the National Association of Realtors® (NAR) notes that the housing market is in the process of stabilizing with little change in overall sales volume expected over the balance of the year. Analysts report that the level of activity remains high historically -- 2006 is expected to be the third best year for existing home sales. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 6.60 percent in first quarter 2006; last year, it was 6.24 percent.



Among the state’s larger markets, the Orlando metropolitan statistical area (MSA) reported 8,189 existing homes sold for the quarter, a decrease of 23 percent compared to the 10,585 homes sold a year ago. The market’s existing-home median sales price increased 18 percent to $265,500; a year ago, it was $224,500. A total of 1,456 existing condos sold in the market over the three-month period, up 24 percent from a year ago, while the existing-condo median price rose 1 percent to $163,500.



The GainesvilleMSA, one of the smaller markets in the state, reported that 992 homes changed hands in the second quarter, down 24 percent compared to 1,297 homes sold a year ago. Over the same period, the market’s existing-home median home price rose 21 percent to $214,300; a year ago, it was $176,400. A total of 426 existing condos sold in the market during the second quarter, up 37 percent from a year ago, while the existing-condo median price rose 16 percent to $146,600.



"The student population is a strong stabilizing factor for our condo market, and with prices rising, condos are a good product for many first-time buyers," says Deborah Minck, president of the Gainesville-Alachua County Association of Realtors and broker-vice president of Tioga Realty Inc. in Gainesville. "Conditions now are more balanced for buyers and sellers, and the key is working with someone who knows the local housing market. That's why it is so important for buyers and sellers to work with a Realtor -- someone who knows the ins and outs of the local real estate market and can help them with all of the complex details involved in buying or selling a home."



© 2006 FLORIDA ASSOCIATION OF REALTORS

FLORIDA: FREE HURRICANE INSPECTIONS & REPAIRS

Want a free hurricane home inspection? Want the state to pay half the
cost of any recommended repair to prepare your home for the next
storm? As of today, inspection applications are available at
http://www.mysafefloridahome.com, a Web site operated by the Florida
Comprehensive Hurricane Damage Mitigation Program. If you have an
inspection and hurricane upgrades are recommended, the state will pay
up to $5,000 in matching funds to qualified Florida homeowners; and
low-income homeowners will be eligible for $5,000 grants with no
match required. There are rules: The program applies only to Floridians
who own a single-family, site-built home with an insured value less than
$500,000; or owners in a residential building of up to four units
providing all unit owners agree to participate. Mobile homes,
manufactured homes, second homes, rental properties, apartments and
businesses are not eligible. Interested homeowners should apply as soon
as possible -- the program's funding, part of the state budget, has a limit.
For immediate assistance, visit the Web site or call toll-free:
(800) 342-2762 in Florida or out-of-state (850) 413-3089.

FAR: A GOOD IDEA

A group of Florida lawmakers wants to discuss the top issues facing
Floridians, and an elite group of citizens meets with them today in
Orlando for the 100 Ideas Policy Summit. FAR President Mike Dooley,
Public Policy Chair Patty Fitzgerald, Public Policy Vice-Chair Frank
Gregiore and other FAR members will speak for Realtors who must
help citizens struggling to find affordable property insurance and pay
rising property taxes. Other topics to be discussed include the
environment, business regulation, health care, economic development
and transportation. Confirmed keynote speakers include Gov. Jeb Bush,
former U.S. House Speaker Newt Gingrich, former Vice-Presidential
Candidate Jack Kemp and Florida House Speaker Allan Bense, along
with about 30 experts. To date, more than 150 meetings -- called
Idearaisers -- have been held throughout the state and almost 1,300
ideas have been gathered through local events and the group's Web site.
To find out more, go to: http://www.100ideas.org

Broward County: Straw vote urged on property tax issue

FORT LAUDERDALE, Fla. -- Aug. 10, 2006 -- It's a question with a predictable answer for homeowners eager to move: Are you afraid that buying a new home would boost your property tax bill?



Broward voters may be able to weigh in with their responses this fall -- but their vote would only be a straw poll of their opinions, not a binding referendum.



Broward County Commissioner Jim Scott wants to ask voters whether they support the concept of "portability" in property taxes. The idea is to allow homeowners to take the taxable value of their old home and transfer it to their new home, even though the new home might cost more.



"People are really prisoners in their homes, and property taxes are too high. This is going to help," said Scott, who will ask commissioners next week to put the straw ballot question to Broward voters this fall.



Proponents of portability say it would help address inequities that have developed out of the 1992 Save Our Homes amendment.



3 percent cap



The amendment caps at 3 percent the annual growth in taxable value of homes owned by state residents, regardless of the market. People who stay in their homes see limited growth in their property taxes, but new buyers must pay taxes on the full value of their homes. That often results in wild variations in tax bills within a single neighborhood of similar homes.



Portability would require a state constitutional change, which means that lawmakers would have to ask voters statewide whether they want to approve the change. If they did, then individual counties could decide whether they want to allow it.



Problem studied



Efforts to put such an amendment on the November ballot stalled this spring in the Legislature. The governor appointed a Property Tax Reform Committee, which will study property tax inequities and issue recommendations next year.



Supporters of portability believe that if voters in a big, urban county such as Broward like the idea in November, it would signal to the governor and state lawmakers that it could pass statewide.



"Watch us vote, just watch us vote," said Broward County Property Appraiser Lori Parrish, who lobbied for the portability constitutional amendment in Tallahassee, and who helped persuade Scott to support the concept.



Another big issue



The question is unlikely to be the only weighty tax issue facing Broward voters in November. County commissioners are scheduled to sign off on a ballot question that asks voters whether they want to tax themselves another penny to pay for transportation upgrades and better bus service.



They're also considering asking voters to approve issuing at least $500 million in bonds to pay for a new courthouse complex.



Both proposed questions must be approved in the next two weeks to give Broward Supervisor of Elections time to put the issues on ballots.

National survey finds closing costs exceed average of $3,000

NEW YORK (AP) -- Aug. 10, 2006 -- Closing costs - the money consumers pay to cover title searches, application fees and other expenses when buying a home -- average more than $3,000 nationwide, according to a survey being released today.



The study by Bankrate.com looked at the closing costs charged by lenders in major cities in all 50 states and the District of Columbia. The closing costs included origination fees charged by lenders such as application fees and document processing fees as well as title search and appraisal costs that are paid to third parties.



The average nationwide was $3,024, the study found.



"These fees are not insubstantial, so consumers should shop around when they're in the market for a mortgage," said Greg McBride, senior financial analyst with Bankrate.com.



The cities with the highest closing costs were Buffalo, N.Y., $3,887; Houston, $3,578; Honolulu, $3,407; Cleveland, $3,354; and Miami, $3,349, Bankrate.com said.

Those with the lowest were St. Louis, $2,713; Detroit, $2,714; Concord, N.H., $2,734; Billings, Mont., $2,737; and Cheyenne, Wyo., $2,772, it said.



Bankrate.com, an online financial service based in North Palm Beach, Fla., asked home buyers if the closing costs they paid when they actually signed for their home mortgages were close to the so-called good faith estimate of closing costs they got from their lenders in advance.



Some 60 percent said the estimate was right on the mark. But 13 percent said they paid a higher amount than the estimate, while 8 percent said they paid less. The rest said they didn't know or didn't respond to the question.



McBride said the survey of closing costs didn't cover government fees and other prepaid items that are essentially passed through by the lender for payment by the borrower.



These fees vary significantly by location, and McBride warned that "lenders do a notoriously poor job of estimating what those fees are."



As a result, consumers should probably expect that closing costs will be above rather than below the good faith estimate, he said.



McBride said one way to hold down closing costs for things like title insurance was to ask the lender to recommend companies that offer cheaper policies. And, he said, consumers should watch out for "junk fees" - inflated costs for things like document preparation - that can boost their overall closing costs.

Housing market hitting a rough patch

WASHINGTON (AP) -- Aug. 10, 2006 -- The "For Sale" signs are staying out longer. House prices are easing as sellers try to lure in buyers.



The big question now: Will the nation's five-year housing boom turn into a devastating bust that could derail the overall economy?



"We recognize the risk ... and we are watching it very carefully," Federal Reserve Chairman Ben Bernanke told Congress recently.



The Fed's interest rate increases, which have helped push mortgage rates to the highest levels in more than four years, are putting a damper on housing.



The central bank acknowledged that fact Tuesday when it decided against raising a key short-term rate for an 18th time.



Instead, the Fed's policymakers said they believed the "gradual cooling of the housing market" would help slow the economy and allow inflation pressures to moderate.



The Fed's cease-fire on rate hikes came after various reports showed the housing boom is definitely over.



Sales of new homes and existing homes have been falling. And although the median prices are still increasing, the gains have been the smallest in years.



A record level of unsold homes is expected to exert even greater pressure on prices in coming months.



The concern is that the already sizable inventory glut could worsen as millions of Americans with adjustable rate mortgages, taken out when interest rates were at four-decade lows, suddenly find they can't meet new higher monthly payments.



"So far, the correction in housing has been orderly, but there is a significant risk that this orderly correction could become more chaotic," said Mark Zandi, chief economist at Moody's Economy.com.



"The housing market has been driven by euphoric optimism about future house price growth. That could quickly change to dark pessimism and we could see sales and prices fall much more than expected," Zandi said.



The areas considered at greatest risk for falling prices are the once-booming regions of California and Florida, parts of the Mountain West and the Northeast.



Richard Dekaser, chief economist at National City Corp., has done a study with Global Insight that identified 71 metropolitan areas, representing 39 percent of the single-family home market, as extremely overvalued. Of the top 25 cities on that list, 14 are in California and seven in Florida.



David Lereah, chief economist for the National Association of Realtors, predicts that the sales slowdown is about to bottom-out. He said stubborn homeowners are starting to realize they will need to lower their asking prices to attract buyers.



"We are going from a seller's market to a buyer's market," he said. "It looks like the worst is behind us and sales are starting to level off."



But that process will leave housing sales well below the boom levels of the last few years. Sellers will have to say goodbye to double-digit price gains and some formerly red-hot areas may have to cope with outright price declines.



That could leave sellers and their real estate agents longing for the old days.



"I have seen a number of housing cycles but nothing to compare with the past five years. That was the most robust real estate market that I have experienced, without question," said Miami real estate agent Maurice Veissi, who has been selling homes for 35 years.



Many economists are stopping short of predicting a wholesale bust in the housing market.



"There is no evidence that prices are going to collapse," former Fed Chairman Alan Greenspan said earlier this year.



Still, even a moderate slowdown could have a big impact since housing has been one of the economy's standout performers over the past five years. Low mortgage rates allowed millions of homeowners to refinance and use the savings to go on a shopping spree.



The rising value of homes also boosted consumer spending because it encouraged Americans to spend more. A housing slowdown could have the reverse effect, and consumers already are starting to tighten their belts.



Overall, economic growth slowed to 2.5 percent in the April-June quarter, less than half the 5.6 percent growth rate of the first three months of the year. A fall in residential construction was one of the major contributors to the slowdown.

Foreclosures: Down, but not much longer

WASHIINGTON -- Aug. 10, 2006 -- Those easy mortgage chickens are coming home to roost.



This fall the adjustable-rate mortgages [ARMs] that millions of Americans took out during the recent housing boom will be reset, and many homeowners will see their monthly mortgage payments shoot up by as much as 20 percent. According to the Mortgage Bankers Association, of all mortgages financed in 2005, 36 percent were ARMs -- the highest ever.



This is a matter of concern because ARMs are typically initially made at a lower rate and then increase after a fixed period of time, usually 1, 3, 5, 7, or 10 years, after which the rate will more closely reflect current rates. As interest rates increase, mortgage payments increase. Between $400 billion and $500 billion in ARMs are due to be reset by the end of 2006. The following year will be even more dramatic, when more than $1.5 trillion will be reset.



For many Americans, this is scary news, if hardly unexpected. Everyone who took out an ARM or another equally appealing low-rate mortgage over the past few years to buy a house, at times beyond their means, knew that someday their payments could balloon. Those home buyers may have thought they would be able to flip their houses quickly and avoid the rise in their mortgage payments. But now, many of them are finding themselves stuck in a house they may soon no longer be able to afford, and, as the real estate market peters out, there's little they can do about it.



Indianapolis' dubious honor

The result is that these homes, instead of being a springboard to greater wealth, suddenly become an anchor. Unable to pay their mortgage, and hit by the double whammy of higher gas prices and higher credit-card rates, many Americans in nearly every income bracket may be forced into foreclosure.



According to a new study by RealtyTrac, which publishes the nation's largest database of pre-foreclosure and foreclosure properties, the situation is not all that bad -- yet. In their survey of foreclosure rates in the 100 largest metropolitan statistical areas [MSAs] in the U.S., the second quarter of 2006 actually saw fewer foreclosures than in the first quarter. While Indianapolis, Atlanta, and Dallas saw the nation's three highest metropolitan foreclosure rates, other areas, such as Chicago and Portland, Ore., saw a 60 percent and 188 percent decline, respectively, from the first quarter.



Indianapolis found itself at the head of the list. Even though its foreclosure rate wasn't as high in the second quarter as in the first, it still performed worse than any other metro area in the country, with nearly 0.987 percent of all its homes in foreclosure, or one foreclosure for every 101 households.



Worse predicted

The next worst performer was Atlanta, with 0.904 percent of all homes in foreclosure, or one home in every 111 households. The reason that Indianapolis and Atlanta have such high rates is due more at this point in time to local market conditions than to ARMs. Indianapolis, for example, has a weak job market and a weak real estate market. On average, homes there take twice as long to sell, and then often for a fraction of the market value.



Atlanta, on the other hand, has suffered because of both an exceptionally high number of bad mortgages that were being written as well as the fact that many of the industries there are retrenching, which leads to job loss or salary reductions.



"I think the findings of this report are a message that people should take a deep breath and stop hyperventilating," says Rick Sharga, RealtyTrac's vice-president of marketing. "The feared tsunami of foreclosures isn't taking effect yet."



But Sharga also predicts that the third and fourth quarters are going to be much worse. "Year-to-date, we have seen a 39 percent increase in foreclosures over last year," he says. "I'd be very surprised to see the rate drop below that especially with the 3/1 and 5/1 ARMs resetting in the fall."



Unprecedented situation

A 3/1 ARM has a fixed interest rate for the first three years, and thereafter adjusts each year. A 5/1 ARM is fixed for the first five years and then resets. A major concern is that the number of ARMs issued at subprime rates to borrowers with lower credit ratings is not known. "We know that ARMs default at a higher rate than fixed, and subprimes default at higher rates than primes," says Sharga. "Never have so many ARMs reset at the same time. There is no precedent for it."



Many industry observes are concerned that the default rate could reach dangerous economic proportions. Government-sponsored enterprises [GSEs], such as Fannie Mae (FNM) and Freddie Mac (FRE), as well as lenders such as Countrywide Financial (CFC) and Wells Fargo (WFC), are all looking at foreclosure prevention strategies, according to Sharga. "The GSEs and lenders are developing novel solutions on workout programs to prevent people from going into foreclosure," he says. "Because if the number of foreclosures is too great, it drives down the market and they find themselves stuck with a lot of depreciating property on their hands. It is much more in their interest to educate homeowners on what their options are and come up with ways to help them keep their homes."



While many Americans will almost certainly find themselves in foreclosure, for others this could represent an opportunity that had been denied them in recent years, as prices climbed around the country. It's important to note that foreclosure laws are not federal, and so each state, as well as the District of Columbia, is different. In New York, homeowners have 455 days between the time they're delinquent on their loans and the time a lender can foreclose. In Texas, this pre-foreclosure period is 27 days, the shortest in the U.S.

Fees for do-not-call registry access to increase

WASHINGTON -- Aug. 10, 2006 -- Effective Sept. 1, 2006, the Federal Trade Commission (FTC) will increase fees for access to the federal Do-Not-Call Registry.


For individual area codes in excess of the five free codes, the fee will jump from $56 to $62. For access to the entire registry that accesses all national area codes, the fee will increase from $15,400 to $17,050.



The National Association of Realtors® (NAR) voiced its opposition to the fee increase in a May 2006 comment letter. The FTC quoted heavily from the NAR letter in its rule-making. Nevertheless, the FTC chose to retain its system because it's less costly to administer than a system that accounts for the size of a business in determining eligibility for free or reduced cost access to the registry, as some had proposed. The FTC will once again review its policy next year.



The final rule issued by the FTC can be viewed online at: http://www.ftc.gov/os/2006/07/P034305TSRFeesFinalRuleFRNotice.pdf

State buys the ranch -- and the range

Phillippe Diedrich for The New York Times


SOUTHWEST FLORIDA -- Aug. 2, 2006 -- The house at 8000 State Road 31 -- and the 73,471 acres that surround it -- is now state property.

And all it took was about $351.5 million.

Completing the largest conservation purchase in state history, Gov. Jeb Bush Monday presided over a ceremonial deed transfer of Babcock Ranch at the state Capitol building.

"We have completed a truly historic purchase for Florida," Bush said. "By placing Babcock Ranch in public ownership, we are preserving a piece of our heritage for future generations."

"This is just an awesome day," said Division of State Lands Director Eva Armstrong, who choked back tears before accepting the deed from developer Syd Kitson.

The state paid $310 million, and Lee County kicked in $41.5 million, to acquire nearly 74,000 of the ranch's 91,000 acres.

Kitson & Partners will retain 17,000 acres to build a new town of 19,500 homes -- including 17,870 homes on 13,521 acres in Charlotte County.

That element of the pact drew fire from some environmental groups and prompted an 11th-hour challenge by the Sierra Club that nearly derailed the deal last month.

However, the opportunity to conserve nearly 74,000 acres of mostly pristine brush and swamp was hailed by most.

"This is just terrific," said Audubon of Florida Vice President Eric Draper. "Babcock Ranch is probably the most important -- certainly the largest -- investment Florida has ever made in protecting environmental lands."

The ranch has been operated by the Babcock family for nearly 100 years since it was founded by Fred Babcock, the former mayor of Pittsburgh, Pa.

Kitson said the same concern for the environment that fostered the deal will be reflected in his proposed new city.

"Just as I was committed to preserving over 80 percent of the ranch, I am equally committed to making the new Babcock Ranch community a model for environmental planning and stewardship," he said.

With sale formalities resolved, Kitson's proposal moves into the preliminary stages of the nuts-and-bolts approval process.

Kitson plans to submit a Development of Regional Impact proposal to the Southwest Florida Regional Planning Council soon.

Charlotte County Community Development Director Mike Konefal said there will be "a general conversation" about the DRI application on Aug. 9 before the council in Fort Myers.

Typically, he said, a DRI review takes about nine months to a year to secure "detailed approval."

Lee County Community Development Director Mary Gibbs said Kitson is expected to file a comprehensive plan amendment with her planners soon.

The DRI review will address concerns raised by both counties about how Kitson's city will affect regional roads.

Lee County planners say while most of the project's homes are in Charlotte County, its orientation will be toward Fort Myers, eight miles away.

Therefore, while Charlotte County will reap much of tax revenues from the project, Lee County wants to ensure it isn't stuck with paying an inordinate share of an estimated $500 million in road improvements the city will engender.

Gibbs said "everything is so preliminary," it is difficult to fix a price tag on how much regional road improvements will cost.

More important right now, she said, is creating a formula that will determine who pays for what.

"My understanding of the traffic situation is they haven't agreed on the methodology as yet," Gibbs said.

Konefal was uncertain if Sierra Club's withdrawn challenge of the Charlotte County comprehensive plan amendment is technically resolved.

On June 16, Sierra Club challenged the comp plan amendment filed with the state's Department of Community Affairs to establish a Babcock Ranch zoning overlay district.

The group withdrew its appeal on July 20 before an administrative judge was to hold hearings beginning July 24.

However, Konefal said, the challenge is still on the books and may need to be "opened" before it can be dismissed.

"How do you close that appeal?" he asked. "I am not that familiar with the hearing examiners' process. There is probably some formality."

Sierra Club dropped its challenge after securing concessions from Kitson & Partners. They include:

• Kitson must shift residential development above Curry Lake to the south to expand the wildlife corridor by 2,000 acres.

• Kitson may never seek additional density, or transfer units off, the project.

• Commercial development along State Road 31 and Lee County Road 78 must have 250-foot setbacks.

The Associated Press contributed to this story.

NAR: Pending Homes Sales Index rises

WASHINGTON -- Aug. 2, 2006 -- Pending home sales, a leading indicator for the housing sector, have risen for the last two months, according to the National Association of Realtors (NAR).

The Pending Home Sales Index, based on contracts signed in June, increased 0.4 percent to a reading of 113.9 from an upwardly revised level of 113.5 in May, but is 9.6 percent below June 2005.

The index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.

An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.

David Lereah, NAR’s chief economist, says the small rise in the index is good news, indicating that the trend is stabilizing. “Once again, we have various housing indicators moving in different directions, which itself is an indicator of a market in transition,” he says. “The housing market is striving for balance -- a process that will take several months. A quieting in the movement of indicators should restore confidence to home buyers who’ve been on the sidelines, waiting for the right time to get into the market, and now is the best time we’ve seen since the 1990s in terms of housing choices and flexible terms.”

Regionally, the PHSI in the South rose 2.5 percent in June to 130.7 but was 4.8 percent below June 2005. The index in the Midwest increased 1.9 percent to 103.3 in June but was 11.9 percent below a year ago. The index in the West was unchanged, holding at 110.1 in June, and was 14.2 percent lower than June 2005. In the Northeast, the index dropped 6.3 percent in June to 99.4 and was 11.6 percent below a year ago.

Senate approves more offshore drilling

WASHINGTON -- Aug. 2, 2006 -- The Senate voted Tuesday to open 8.3 million acres of federal waters in the central Gulf of Mexico to oil and gas drilling, setting up a confrontation with the House, which wants even more drilling in waters now off-limits.

Supporters said the measure would be a major step toward producing more domestic energy and forcing down natural gas prices that have soared in recent years.

The Senate approved the measure by a vote of 71-25. It now must be reconciled with much broader drilling legislation passed by the House in June. Those negotiations are likely to begin in September.

"This bill will substantially reduce our reliance on foreign oil and gas. ... It brings more American energy to American consumers," declared Majority Leader Bill Frist, R-Tenn.

Likewise, Sen. Pete Domenici, R-N.M., called the legislation "welcome news for the people of the United States" - for homeowners facing high heating bills as well as for manufacturers and chemical companies that have seen natural gas costs soar.

Some critics of the legislation noted that it will be years before any oil or gas will be taken from the 8.3 million acres and that the legislation falls short of addressing many of the country's energy problems.

At best "this will supply a small amount of gas years from now," said Sen. Mark Dayton, D-Minn., who decried the inability to broaden the legislation beyond drilling in the Gulf of Mexico.

Still, the bill attracted wide, bipartisan support as lawmakers sought to show the flag on energy as they prepared to leave for the month-long summer recess. The House is already gone.

Some senators noted that natural gas prices jumped by 11 percent this week amid concern about supplies because of the intense summer heat. The price was at more than $8 per thousand cubic feet on the spot market, compared to under $6 a few weeks ago.

Despite the solid Senate vote, the bill's prospect of clearing Congress remains uncertain.

The House-passed bill would allow energy companies access to waters far beyond the central Gulf and lift the quarter-century-old drilling moratorium on Outer Continental Shelf waters on both the Pacific and Atlantic coasts, while allowing states to decide whether to continue the drilling bans.

House leaders are eager to negotiate a compromise, once the Senate acts.

Senate Democrats and GOP moderates say such a broad bill would threaten areas that have long opposed energy development, from New England to California and the Pacific Northwest. Senate leaders say it would spark a filibuster and probably kill any offshore drilling legislation this year.

The 8.3 million acres affected by the Senate measure is believed to contain 1.2 billion barrels of oil and nearly 6 trillion cubic feet of natural gas, enough to heat 6 million homes for 15 years.

The bill would create a "zone of protection" for Florida that would stretch 125 to 300 miles from the state's beaches at various points. It also would funnel tens of millions of additional dollars to the four other Gulf coast states as their share of future oil and gas revenues.

One part of the area, known as Lease Area 181, had been scheduled for lease by the Interior Department in the 1990s, but was placed off-limits by the Bush administration in 2001 at the request of Florida Gov. Jeb Bush. The remaining 6.3 million acres south of Lease Area 181 has been under a congressional drilling moratorium for years.

Another Republican governor, California's Arnold Schwarzenegger said, "We must keep today's Senate action from opening the door to ... more oil drilling and exploration off our beautiful coast. I have repeatedly expressed my opposition to this and any other measure that would weaken the national oil and gas leasing moratorium that has been protecting the California coast for the last 25 years."

Broad opposition to the Senate bill began to melt last week when Sen. Bill Nelson, D-Fla., who had threatened to filibuster any offshore drilling legislation, said he would go along if the Senate promised not to accept the House measure.

The issue has attracted intense lobbying from environmentalists arguing that drilling in areas now off-limits would threaten coastal beaches and marine life if a spill should occur.

Businesses - from chemical companies and manufacturers to utilities and farmers - have pushed lawmakers hard to open more waters to drilling as a way to expand natural gas supplies and perhaps lower prices.

The bill calls for the Department of the Interior to open bids for developing Lease Area 181 within a year and follow with lease sales in the rest of the area - which is farther off shore in waters more than 10,000 feet deep - as soon as practical.

Energy companies for years have coveted Lease Area 181 because the gas and oil it holds is close to existing pipelines and other infrastructure. It lies about 100 miles off the Louisiana coast.

Under the bill, Louisiana, Texas, Alabama and Mississippi would get 37.5 percent of the royalty revenue the federal government collects from the oil and gas that is pumped off their shores. They now get less than 2 percent.

That is expected to be as much as $1.2 billion a year within 10 years with Louisiana likely to get about half of that.

"There's no policy justification for diverting these revenues," Sen. Jeff Bingaman, D-N.M., said. He said while the revenue sharing will increase gradually, between 2016 and 2055 the states could get as much as $30 billion. After that their share could be $12.5 billion a year.

Sen. Mary Landrieu, D-La., said these states have been shortchanged and that it's only fair that their share be increased. "We will use the money to restore a great coastline ... restore the great wetlands" off the Louisiana coast and improve storm protection, she said.

Cendant's real estate interests now under Realogy

PARSIPPANY, N.J. -- Aug. 2, 2006 -- Cendant Corp. is no longer affiliated with real estate. The company broke away its real estate operations into a new company, Realogy, with the spinoff official this past Monday. Realogy is now the corporate franchisor for Century 21, Coldwell Banker, Coldwell Banker Commercial, ERA, Sotheby's International Realty, NRT Inc., Cartus and Title Resource Group.

Realogy stock had been traded on a "when-issued" basis since July 19, but began active trading on Monday. Realogy's single-letter ticker symbol "H" was chosen to represent "homes," with the one-letter symbol symbolic of Wall Street's belief in the company's corporate strength. In 2005, Realogy posted revenue of $7.1 billion and net income of $627 million. The company's stock is part of the S&P 500 Index.

Realogy Vice Chairman and President Richard A. Smith, Chairman & CEO Henry R. Silverman and other company executives rang the bell at the New York Stock Exchange this morning.

Realogy is a coined word resulting from the fusion of "real estate" and "logy," meaning "the study of" real estate. It's pronounced "REEL-uh-jee."

Regulators to fast-track insurance pool

TALLAHASSEE, Fla. -- Aug. 2, 2006 -- Gov. Jeb Bush and the Florida Cabinet on Tuesday voted to let state regulators fast-track a plan to create a state-run insurance pool to provide emergency property insurance for thousands of businesses throughout the state that have lost their insurance in the midst of hurricane season.

The move will allow the state to re-activate the state-run commercial insurance pool, known as a joint underwriting association or JUA, to offer companies stop-gap insurance as a last resort to Florida businesses. The coverage would be financed by insurance premiums and bonds.

The governor and Cabinet also want a task force convened by the governor to explore legislation that would make insurance more affordable by making it easier for private carriers to buy reinsurance -- insurance for insurance companies -- from the state rather than the more expensive private market.

The governor has agreed to call a special session of the Legislature if an agreement can be reached on short-term solutions that strengthen the private insurance market.

"I'm more than happy to look at any idea," Bush told the Cabinet, noting that even a plan pushed by the Democrats should be on the table. "I don't think this is the time to be pre-judging ideas."

An informal Internet-based poll of Florida businesses conducted by the Office of Insurance Regulation found that 42 percent of the 1,900 businesses that responded had their property insurance either canceled or non-renewed by their insurer in the past six months.

While most were able to secure new coverage, 49 percent said they had to pay much higher rates or accept less coverage, or both, and 17 percent could not find coverage at any price.

Some businesses told state officials they are considering relocating their businesses to other states because of Florida's insurance difficulties.

Bush said he wants to pull out all the stops to find a workable solution fast to avoid the economic problems that would result if thousands of Florida businesses would have to shut down because they can't find insurance coverage.

The JUA was created to deal with an insurance crisis in the mid-1980s, but was deactivated. The law allowing it, however, is still on the books and state regulators told Bush and the Cabinet on Tuesday that it may take at least a month before the rules can be written to make it operational again.

Insurance companies offered mixed reactions to the idea, warning that the stop-gap solution should not serve as substitute for finding ways to reinvigorate the private market.

"We consider a commercial JUA to be a temporary, short-term fix for the current availability problems in the commercial property market," said Cecil Pearce, the American Insurance Association's vice president for the southeast region.

Bush told Cabinet colleagues he hopes a task force he has assembled will come up with recommendations that will lay the groundwork for the Legislature.

"If we have enough consensus that these ideas will have a positive impact, we need to call a special session and add to the stuff we've already done," Bush said.

Among the ideas that Bush and Cabinet members said the state should focus on: providing more financial incentives for homeowners and businesses to harden their homes against wind damage; leveraging federal rebuilding money to pay for hardening homes and businesses; and increasing the amount of state matching money loaned to small insurance companies that want to write policies but don't have the required capital to operate.

"I think what's happening is we're getting to the breaking point on homeowners insurance, as far as cost goes," said Tom Gallagher, the state chief financial officer. He wants lawmakers to make it easier for insurance companies to tap into the state's reinsurance fund, known as the Hurricane Catastrophe Fund.

Bush warned, however, that the creation of another state-run JUA for commercial property has the potential to bring the state deeper into the primary insurance business, exposing the state to more risk if a storm should hit.

New Home For 2005

The National Association of Home Builders Economics Group
compiled U.S. Census Bureau statistics on single-family houses built
in 2005 and found that the average size was 2,434 square feet, while
the average price was $297,000. Other new home 2005 facts: Eighty-
nine percent have central air conditioning; 96 percent have at least two
bathrooms while 28 percent have three or more; 88 percent have at least
three bedrooms while 39 percent have four or more; 50 percent have a
fireplace; 84 percent have a garage for at least two cars; 34 percent have
vinyl siding; 53 percent have a porch; 46 percent have a patio;
27 percent have a deck; and 55 percent have two stories or more.

Burning the mortgage is getting tougher

BOSTON -- Aug. 1, 2006 -- About 25 percent of Americans age 65 or older have yet to pay off their home loans, compared with 11 percent in 1983, according to a Boston College analysis of Federal Reserve Board data.

Half of the people in the 55- to 64-year-old bracket owed money on their homes in 2004, up from 37 percent in 1989.

At a time of life when previous generations usually had paid off the mortgage, many Americans are just scraping together a downpayment. In a strong housing market, this kind of optimism may be justified, but if home values plunge or interest rates soar, older homeowners could be in trouble.

"As long as you can still find a job at an older age, as long as the housing market remains strong, it's not a terrible thing," said Zhu Xiao Di, a senior research analyst at Harvard University's Joint Center for Housing Studies. "But if bad things happen, it could be a problem."

Source: The Los Angeles Verdana,Arial, Jonathan Peterson (07/27/06)

Five ways to play the housing slump

ORLANDO, Fla. -- Aug. 1, 2006 -- If you didn't buy a house while prices in Las Vegas zoomed 46 percent in 2004 and 15 percent last year, maybe you felt like a sucker. But given that the Standard & Poor's Homebuilding Index has skidded nearly 38 percent so far this year, you probably feel lucky if you don't own real estate stocks. But are you brave enough to bet against conventional wisdom and buy real estate stocks now?

Even if you are, bear in mind that it's hard to find five stock picks in real estate now. And forget about finding short-term slam dunks for investors. Yet there are a handful of ways to approach real estate's uptick -- whenever it happens. We reached out to an economist, a top industry exec, and two S&P stock analysts to generate five ideas to help you think about investing in housing. You can't expect to get rich courtesy of any of these, but they might help you feel lucky down the road.

1. Be long term.

Mark Zandi, chief economist for Moody's (MCO) Economy.com, predicts existing home sales will fall this year, next year, and again in 2008. Same for housing starts. He figures home prices will rise 4 percent (national average) this year (compared with 13 percent in 2005), and 1 percent in 2007 and again in 2008.

Those are the three big levers driving the housing market, and none of them look strong. After the 1990-91 recession, it took housing until about 1995 to get truly healthy again. The recovery probably won't be as tough this time, Zandi says, because the job outlook is much better. It helps that the real estate correction isn't coming at the same time as big defense cuts and a general recession, as in the early 1990s. But housing is likely to wallow for a while. "The downturn we're in the middle of has at least a year to run, perhaps two," he says.

2. Watch the Cendant deal.

The conglomerate Cendant (CD) is splitting into four companies, three of which start trading publicly. (The fourth, which owns some of Cendant's travel businesses, is being sold to a private-equity outfit.) The one that matters here is Realogy, which is by far the nation's biggest real estate agency and franchisor, owning the Century 21, ERA, and Coldwell Banker brands. Its relationships reach 25 percent of U.S. existing home sales that use a broker, a share so big that its New York Stock Exchange ticker symbol will be H, as in housing.

The interesting thing about Realogy is it can serve as a proxy or neo-index for the housing market. If you think housing's decline will be manageable followed by an eventual resumption of a long-term secular trend, Realogy is a good place to be.

However, the business is not super now. Chief Operating Officer Richard Smith says earnings before taxes and noncash charges will be $925 million to $1.045 billion this year, down from $1.17 billion last year, on about $7 billion of revenue. He says the company hopes to beat the industry's performance by focusing on high-margin franchising businesses that usually gain share in recessions. (That is, when times get tough, regional agencies that had resisted paying 8 percent of their revenue for a franchise affiliation give up and align with the national brands.) But, warns Smith, "you have to understand there will be macro issues, and you have to deal with it."

3. Think geography -- and value.

Look for companies with more exposure to markets that have not had big runups in housing prices and less exposure to markets where prices have skyrocketed and will most likely come down. In other words, more Texas and less Florida.

One reason S&P is so bearish on homebuilders is that almost all the big ones are heavily exposed to Florida. Analyst William Mack rates only Dallas-based Centex (CTX) a buy (4 STARS), because it has less debt than most of its peers and gets at least some of its revenue from a construction-services business that does nonresidential work.

Mack has a strong sell (1 STAR) recommendations on Meritage Homes (MTH), MDC Holdings (MDC), Levitt (LEV), and Beazer Homes (BZH). He has sell rankings (2 STARS) on Hovnanian Enterprises (HOV), Ryland Group (RYL), and Pulte Homes (PHM).

If you're looking for a bargain, builders have actually become cheap, with most trading below their book value and a handful even hanging below their tangible book value. That's one reason homebuilders have caught the eye of value mavens at Legg Mason Value Trust (LMVTX), which owns Ryland, Beazer, Pulte, and Centex. But those positions have been in place for months, Mack says, so don't take it as a sign of a quick turnaround. "If they liked the valuations then, they've got to love them now," he quips.

4. Don't chase performance.

One of the real estate plays that has done better than most is real estate investment trusts (REITs) tied to apartment buildings. REITs offer steady income since they pay out at least 90 percent of their taxable income as dividends. Plus, deteriorating affordability for home buyers will boost occupancy of apartments.

The problem is, apartment REITs have gotten very expensive -- and, on average, offer less than a 4 percent dividend yield. "It's tough to say, 'Buy them as a contrarian move,' " says S&P REIT analyst Royal Shepard. Apartment REITs that he follows are trading at 21 times funds from operations -- a cash-flow multiple higher than many Internet stocks, without nearly as much long-term growth potential.

Shepard has sell opinions on seven of the 11 REITs he follows. If you want stability, performance, and some income, a better bet is a mortgage operation such as IndyMac Bancorp (NDE) or Countrywide Financial (CFC). IndyMac yields 4.1 percent, it's up for the year, and it's gained a reputation as a particularly tech-savvy, cost-conscious operator.

5. Big brands gain share in real estate recessions.

This is especially true in home building, where access to capital and ability to hold on during tough times play such a large role. But it's also true for brokers. You can probably buy the leaders a year from now and get them at least as cheaply as you can at present. But the housing recession isn't a depression, and there will be a big, vital industry left standing when the storm passes.

Smith argues that house prices have risen nearly 5 percent a year through the decades, once you factor out the surges and the busts. And people move about every seven years. So the best thing to do is watch for the companies that are built to withstand the downturn and grab more market share while sales shrink. They're the ones that are likeliest to zoom when the economy puts some wind back in their sales -- whenever that is.

Government regulation blamed for cost of housing

PHILADELPHIA -- Aug. 1, 2006 -- Misguided local governments are largely to blame for high land and production costs that continue to push the cost of housing beyond the means of many American families, according to housing experts at a symposium sponsored by Wells Fargo Home Mortgage.

"At the local level, land-use regulations often make it difficult for builders to develop affordable housing. Large minimum-lot sizes, restrictions on land available for residential development, impact fees that place the marginal cost of infrastructure and public services on new-home buyers, and approval processes that add risk and delays all play a hand in rising house prices," concluded the Joint Center for Housing Studies at Harvard University in its "State of the Nation's Housing 2006" report.

The symposium pointed out that although many land-use rules address important concerns such as environmental protection and public health, "the stricter the development regulations, the more intense the affordability problems in that community."

Source: Philadelphia Inquirer, Alan J. Heavens (07/30/2006)

Homeowner association managers get disaster training

SOUTH FLORIDA -- Aug. 1, 2006 -- Well before Hurricane Wilma’s first rain drops fell in South Florida last October, Kathryn Danella, general manager of the community association for Boca Pointe, a development of 4,044 residences, had shifted into disaster mode.

And thanks to her training as a certified manager of community associations (CMCA), her recovery program in the 1,000-acre community of 7,600 residents, located just outside the city of Boca Raton, was underway as soon as the last drops fell.

The CMCA program is the only national certification designed for managers of homeowner and condominium associations, according to the National Board of Certification for Community Association Managers (NBC-CAM), which administers the CMCA certification. According to the Community Associations Institute, there are more than 286,000 such communities, home to one in five Americans or approximately 57 million people.

The Community Associations Institute created the NBC-CAM in 1995. Since then, 6,000 managers have been trained.

According to CMCA, CMCA specialists help reassure potential homebuyers that a community is well run, has adequate reserves and will continue to enhance the value of a property. They can also help real estate practitioners acquire relevant documentation and information regarding budgets, insurance, assessments and reserves when a residence is sold.

“Our requirements for earning and maintaining the CMCA were designed to provide homeowners with a port in the storm -- a certified professional ready, trained and able to handle almost any situation -- from emergency conditions such as floods or fires to community management of finances and contracting,” says Judi Phares, NBC-CAM’s chair.

Last year, disasters touched 48 states in some way, according to the Federal Emergency Management Agency (FEMA). In a recent survey conducted by NBC-CAM, 94 percent of those certified said they were better equipped to handle natural disasters than they had been prior to the training.

Establishing on-going relationships with vendors ahead of time helps communities recover rapidly, says Danella. At Boca Pointe, she says, these relationships meant they were able to begin clearing roadways immediately after the storm.

Another essential function for association managers facing a disaster is to be a communication hub for absentee residents and families of residents who remain on site. This means, says Danella, developing a Web site and having access to communications that can be maintained during power outages.

NBC-CAM also offers a brochure, “Community Matters,” designed to inform consumers about living in a community association

Source: Realtor Magazine Online, Camilla McLaughlin

© 2006 FLORIDA ASSOCIATION OF REALTORS

Time to apply for guaranteed group health insurance

TALLAHASSEE, Fla. -- Aug. 1, 2006 -- It's once again August, the one month out of the year when you can apply for guaranteed group health insurance in Florida even if your business has only one paid employee. During the entire month, participating health insurers offering group coverage must accept new applicants.

While the program does not generally provide any savings on health care options, it can help self-employed people who have been turned down elsewhere because they have pre-existing conditions. In addition, self-employed Floridians already covered under a group insurance plan can switch to a different carrier during August.

Companies that write coverage for individuals year-round must offer only “basic” or “standard” plans, and could deny coverage based on a pre-existing or chronic health problem. Guaranteed-issue during August means insurers and HMOs must offer coverage without regard to health status. New policies accepted in August become effective Oct. 1, 2006.

If you want group health insurance coverage, be prepared to provide documentation verifying that you're self-employed or a sole proprietor, including tax forms, license information and business receipts.

More information:
• A list of insurance companies offering small group health coverage, along with contact phone numbers, is posted on the Florida Department of Financial Services' (FDFS) Web site at http://www.fldfs.com/Consumers/small_group_market_carriers.htm.
• For an overview of small group health insurance regulations in Florida, visit the FDFS site at: http://www.fldfs.com/companies/lh_fr/is_LHFR_Small_Emp_Benefit_Plan.htm.
• For questions about health insurance in Florida, call the toll-free FDFS consumer helpline at 800-342-2762.
• Georgetown University offers a consumer guide on group health insurance in Florida at: http://www.healthinsuranceinfo.net/fl02.html

© 2006 FLORIDA ASSOCIATION OF REALTORS®

Eco-friendly house filled with innovative ideas

MENLO PARK, Calif. -- July 31, 2006 -- On most construction jobs, Clarum Homes project manager Sean Misskelley is sweating the details as new houses come together.

With the Sunset Celebration Idea House, however, Misskelley is simultaneously thinking about how to deconstruct the 2,400-square-foot contemporary that has gone up on a steel-pier foundation in a parking lot at the magazine's Menlo Park, Calif., headquarters.

Sometime this summer, the house will be taken apart and moved in two huge chunks to its permanent address a couple of miles away. It will be reassembled atop a new foundation and 2,000-square-foot basement.

But while Misskelley continues to ponder the various perils of that aspect of the project, he and the rest of the team have had their hands full putting the finishing touches on one of the most innovative Idea Houses to date.

Resistant to fire
The innovation starts with a lot of stuff visitors won't immediately be aware of. The outside walls and the two sloping roofs have been built using structural insulated panels, pre-cut units that were panels, pre-cut units that were assembled on site. The panels speed up construction and create a space that is super-energy-efficient and more resistant to earthquake, fire and insect damage. A house like the Idea House would cost about $225 per square foot to build.

Step inside and the house hugs you with warm light, welcoming the outside in at every turn.

Architect Henry Siegel used his own award-winning Sonoma County, Calif., weekend retreat as the inspiration for the Idea House. Its centerpiece -- literally -- is a pass-through covered breezeway that at the same time separates and unifies the house's two living areas.

On one side of the breezeway -- also called the "dog trot" -- is the living room, dining area, kitchen, half bath and a clever reading nook. On the other side are the guest room/office, a kids' bedroom and the master suite, each with its own bathroom and access to private courtyard space.

Interior designer Chad De Witt has infused the home with textures and colors that are sophisticated and stylish while maintaining their green credentials.

De Witt, a sixth-generation Californian who studied architecture and design at California College of the Arts, likes to mix vintage pieces with contemporary. In the living/dining room, for example, a Scandinavian teak sideboard from the '50s looks right at home next to the hip, accordion-like X-Pand Table in white oak. The sleek gray-green crushed quartz kitchen countertops are accented with a backsplash of Heath Ceramics sculptural tiles whose modern design dates back to Edith Heath in the 1950s.

"There are no new ideas. Just old ideas refreshed," says De Witt, who collects old Sunset decorating books. "You flip through the pages of these books and you see timeless design. A lot of the feel of what you see in the Idea House is classic California vernacular design."

More materials
Today's designers, of course, have a vastly expanded palette of materials from which to choose. In the kids' bath, bright blue rubber floor tiles are used as a backsplash that's as fun as it is easy to wipe clean. Bathroom countertops and shower surrounds are clad in a new material made of 60 percent scrap aluminum set in resin. Shower panels and cabinet insets are made of a translucent resin that is lighter in weight -- and safer -- than glass. Some versions have pieces of textile embedded in the resin.

One of the most distinctive finishes in the Idea House is on the fireplace, where the warm, honey-colored concrete has been mixed with rice hulls. Designers used the imprint of eucalyptus leaves to add visual interest.

De Witt and the design team have mixed their materials with abandon, and yet it all seems to work together harmoniously.

The hearth and reading nook areas are framed in white oak, which provides a startling contrast to the wide-plank hickory flooring dressed up with a dark stain. The kitchen cabinets are smooth maple with metal "fabric" inserts. In the guest room/office, ultra-contemporary aluminum and white oak modular cabinets march up the walls, while a platform bed and side table made of bamboo anchor the center.

In the master bath, reclaimed teak counters look rich and earthy. And the enormous barn doors that slide on a metal track to close off the bedroom wing are made of reclaimed Douglas fir.

Grass cloth
Fade-resistant fabrics that usually see duty outdoors have been brought inside to be hung by clips on simple stainless steel rods. The fabrics also have been stitched into covers for large cushions in the reading nook. The master bedroom walls are covered in a grass cloth that has been hand-blocked with images of a gingko leaf, a nod to the Arts and Crafts designers of the early part of the last century. The motif is repeated in the drapery panels on the French doors.

Outside, most of what looks like wood isn't. The nearly 2,000 square feet of decking -- and the railings, and the post-toppers -- are made of a composite material with a made-you-look-twice wood grain. On a raised garden bed, Sunset senior home writer Peter O. Whiteley has used precast concrete to create a stacked-wall look. The "wrought iron" fencing is made of a polymer material. And even the grass isn't grass.

"The synthetic lawn grows perfectly on asphalt," says Whiteley of the parking-lot installation.

And it will be easy to roll up once the public has trooped through and the Idea House is loaded in pieces to be trucked to its permanent home.

Copyright © 2006 Miami Herald, Holly Hayes. All rights reserved.

HUD backs comprehensive review of Miami-Dade housing agency

WASHINGTON -- July 31, 2006 -- The U.S. Department of Housing and Urban Development (HUD) issued a release saying that it backs Miami-Dade County efforts to conduct a complete review of the troubled Miami-Dade Housing Agency. Commission Chairman Joe Martinez announced the creation of a special taskforce to study the problem.

"We encourage local initiatives when problems like this emerge," says HUD Assistant Secretary Orlando Cabrera, who heads up the Office of Public and Indian Housing. "We look forward to partnering with Chairman Martinez and the Affordable Housing Ad Hoc Committee to uncover any wrongdoing and recover lost funding so that residents of Miami-Dade's public housing are not adversely affected."

A recent series of articles in The Miami-Herald highlighted allegations of mismanagement of public funds by the Miami-Dade Housing Agency (MDHA). The questionable funding focuses on a $35 million HOPE VI grant MDHA received from HUD in 1999. In January, HUD notified MDHA that the foot-dragging on this project had gone too far and that recapture of the remaining funds would be the next step. In light of the latest developments, HUD says it will step up its oversight by sending in a team of forensic analysts to ensure HUD funding was properly spent.

"Chairman Martinez is committed to improve the transparency and integrity of the process in order to better serve its citizens," said Cabrera. "HUD stands with him in this commitment."

HUD's Office of Public and Indian Housing (PIH) manages and administers a range of programs, including the two largest federal rental assistance programs -- public housing and the Housing Choice Voucher Program, formerly known as Section 8. Combined, the programs serve more than 3.2 million low-income families in the U.S.

PIH monitors the operations of the nation's approximately 3,400 public housing authorities and manages the Office of Native American Programs, which is responsible for the implementation and administration of all HUD programs specific to Native American housing and economic development.

More information about HUD and its programs is available on the Internet at www.hud.gov and www.espanol.hud.gov.

© 2006 FLORIDA ASSOCIATION OF REALTORS®
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Local housing auction draws thousands, but few find bargains

FORT LAUDERDALE, Fla. -- July 31, 2006 -- Wanda Brown has been trying to buy a house for some time, but without success.

When she saw an advertisement for the Great South Florida Real Estate Auction on Saturday, the Plantation resident rushed over to the Broward County Convention Center to take her chances. She brought along a $2,500 registration and bidding fee and quickly set her sights on a three-bedroom, two-bath single family home in the Breezeswept Park Estates in Plantation.

A few others among the 2,000 who filled the Floridian ballroom also liked the property. The winning bid was $292,000.

"That's overpriced," said Brown, 48, a school board maintenance employee. "I know the houses in that area. It's a nice area, but it's no $300,000 house."

Many potential homebuyers, Realtors and speculators who attended the daylong auction of almost 100 properties shared Brown's feelings. Some were also taken aback by the "as-is" contract terms they received in their registration packages.

But to Ben Stern, whose Synergy Group real estate firm owned the properties, the turnout meant South Florida's housing market remains in a slump since sellers set prices high and buyers wait for those prices to be reduced. "It tells me that the market is ready for this," Stern said.

Residential home auctions are becoming popular with sellers nationwide, as properties are taking longer to sell than in previous years. Public auctions generated more than $14 billion in sales in 2005, according to the National Auctioneers Association. Such auctions accounted for 6 percent of all U.S. real estate sales in 2004 and are expected to grow to 30 percent by 2010.

Potential homebuyers hear the word auction and think "steals." Many are left disappointed.

"The prices are what you would pay at market prices," said Mary Parks, a Hallandale Beach speculator. "I expected better bargaining, and this is not. These aren't bargains."

The beginning bids, which some considered high, immediately forced the properties out of many attendees' budgets.

Laurel Walters, of Boynton Beach, was among those who got their $2,500 registration fee back after considering the other fees the winning bidders would have to pay; closing costs, a 10 percent premium added to the winning bid and other contingencies put the properties out of range immediately.

"Here, people got carried away," Walters, 35, said. "This is for somebody who can absorb a great amount of risk."

Stern said the lowest winning bid was $86,000 for a Lake Worth house. The highest bid was about $600,000, for a Tamarac house.

Merly Grigou and her mother, of Plantation, were among the purchasers. Upon obtaining financing within one month, they are set to walk away with a six-unit Fort Lauderdale apartment building on which they bid $522,000.

"Everybody's trying to buy a piece of property now, so why not?" Grigou, 24, said. "Some of the prices a little bit high. [But] this is a good start for anybody looking for something to invest in."

Copyright © 2006, South Florida Sun-Sentinel, Macollvie Jean-Francois, with research by Bill Lucey. Distributed by McClatchy-Tribune Business News.

Online commercial real estate convention achieves success

WASHINGTON -- July 31, 2006 -- More than 14,000 commercial real estate professionals nationwide took part in CommercialSource.com, billed by the National Association of Realtors (NAR) as the first-ever online convention tailored for the commercial real estate industry.

Sponsored by the Realtors Commercial Alliance, NAR's commercial arm, the online convention provided attendees with the fundamentals of a traditional trade show. Participants were able to sign up for education and networking opportunities while enjoying the convenience of the Internet.

CommercialSource.com participants networked with one another via message boards, browsed more than 50 virtual trade booths from exhibitors, and accessed speakers online. Attendees tuned in to the speaker presentations more than 18,000 times during the convention, and there were more than 80,000 visits to vendor booths.

“Our online commercial real estate convention was a ringing success and a great example of the kind of innovative and effective benefits that NAR strives to bring to all its members,” says NAR President Thomas M. Stevens. “The commercial real estate arena has been experiencing the positive impact of technology on many fronts, and as the industry continues to embrace technology, commercial real estate professionals are discovering that there are creative alternatives to the old-fashioned way of doing business.”

Convention attendees put their stamp of approval on the event with an 87 percent satisfaction rating, and 90 percent indicated they will recommend the convention to others.

The largest number (36 percent) of attendees came from the Southern region, followed by the West (32 percent), Northeast (16 percent), and Midwest (16 percent).

© 2006 FLORIDA ASSOCIATION OF REALTORS

Association Health Insurance Stumbles

WASHINGTON -- July 31, 2006 -- An initiative to allow associations such as the National Association of Realtors (NAR) to offer health coverage to members stumbled and fell yesterday in the U.S. Congress after being removed from a popular bill. NAR reports that the House leaders still seem willing to pass the health care initiative but now need to figure out how to do it.

The story has less to do with association health care programs than it does with the mechanics of politics and what it takes to turn a bill into law. A group of mainly moderate Republicans threatened to keep the House in session into August unless a bill to increase the minimum wage was brought to a vote. On Thursday, it seemed as if the health care initiative would be tacked onto that bill, almost guaranteeing it would be brought to a vote and possibly passing. But as discussions progressed, the health care drive was dropped in favor of a tax package that includes estate tax changes.

Thanks to the changes, however, the association health care plan is unattached and there's no obvious host bill on the horizon. For now, however, some members of Congress still seem to care about the health insurance issue and remain willing to talk about getting it passed.

"Sen. (Bill) Frist's (R-Tennessee) office has called us and others to a meeting either next week or the week after to continue working on passage this year," says Jerry Giovaniello, NAR senior vice president of government affairs. "The entire gambit does signal that the Hill is working to find an acceptable bill and vehicle."

Source: NAR

Discussion scheduled on rental issue dispute

REDINGTON BEACH – Ronald and Marilyn Riley went to Town Hall to seek advice. The Rileys wanted to build a single family house in a residential zoned district. They asked former Town Clerk Larry Bittner if the town allowed short term rentals of such property.Bittner allegedly told them it was the town’s policy to allow short term rentals. Bittner evidently was unaware that the town’s zoning ordinance did not allow short term rentals. The rule has been on the books for some time but, according to the town’s code enforcement officer Mark Davis, has been largely ignored. The Riley’s said they were misinformed and, therefore, should be allowed to go forward with their plans.Redington Beach Town Attorney Dominic Amadio attempted to clarify the problem in a June 30, 2005 letter to the commission. Amadio explained that the town should cite anyone in a single family residential district who rents for less than 181 days. But since the Rileys were misled, the town could provide relief because the alleged misinformation took place before Amadio’s clarifying letter. Consequently, the commission scheduled a special meeting for Aug. 9 to hear the Riley’s plea to be grandfathered in.Steven A. Williamson, an attorney for the Riley family said, “The Riley’s asked all the right questions. If staff doesn’t know the rules, you can’t expect the Riley’s to know. After the June 2005 letter nobody can complain but before that they are grandfathered in.”Williamson said he has a recorded conversation of Bittner telling the Rileys that short term rentals are OK.Amadio said that each case should be examined on a case by case basis to determine whether or not short term rentals could be allowed, although violators of the zoning ordinance should be cited unless they can prove that prior to Amadios’ letter the town told them that short term rentals were allowed. In such a case the use could be grandfathered in.Tax millage rateThe town’s financial consultant Linda Mahnke said that the current year’s millage rate of 2.2560 would be adequate provided the town lower what she described as the town’s “piggy bank” budget, a fund that would provide for a new town hall, seawall and other such projects.“Make your budget have a lower amount in the piggy bank budget and you will be OK,” she said. “The only question is how much you want in the piggy bank fund.”

TI board kills zoning change proposal

TREASURE ISLAND – Barring a drastic change, the former home of Gulf Golf will not become a CVS pharmacy or any other retail establishment.During the City Commission meeting on July 5, the commission was presented with a proposal to change the lower density resort zoning district to allow retail. The issue was tabled to the July 18 commission workshop.There, the request was killed.Roughly 30 residents arrived at the workshop ready to protest if the commission decided to go forward with the measure. To the residents’ surprise, the commission was solidly against the proposal.Mayor Mary Maloof, still recovering from back surgery as a result of an auto accident in Tampa earlier this month, was absent. The meeting and workshop was directed by Vice Mayor Ed Gayton.In short the proposal, requested by Capri Isle Hospitality Strategies, wanted the zoning for part of the area bordering the east side of Gulf Boulevard to change. Specifically, the area in question lies in the resort facilities medium land use district, referred to as RFM-30. Current zoning would allow the property to be developed as condominiums or hotels.Some mixed use is allowed, but not retail.Commissioner Richard Kraus read a statement he personally wrote, in which he vehemently opposed the zoning change.“It makes no sense,” Kraus began.His prose grew stronger. “What do strip malls do for ambiance? This (proposal) will change Treasure Island forever.”He later said he received “a stack” of e-mails and phone messages and admitted he was hard pressed to find anyone not connected with the proposal favoring it.“I see no reason to support this,” Kraus said as most of the 30 concerned citizens broke out into loud applause and cheers.The other commissioners then began to voice their displeasure over the proposal.Commissioner Phil Collins said he “spoke with more than 100 people, 60-some by e-mail” in which the vast majority were opposed to the proposal, but not all. In his survey, Collins noted 34 people were not just opposed but “adamantly opposed” to the rezoning.Collins went on to say he personally was “not opposed to a CVS” coming to Treasure Island, only the location. Like Kraus, Collins was concerned about the long-term effect the proposed zoning change could have on the city. “The floodgates would open, and it appears that will happen,” he said, if the rezoning took place. “I also agree (with Kraus). I am not interested in this. I will not vote for this. The bottom line is (passing the measure means) losing ambiance.” Gayton said that changing the zoning didn’t mean a CVS pharmacy would be located there, which was of concern to him.“It could be a CVS, it could be anything they want to put in there if the land use is changed,” Gayton said. “It could be a Big Lots. (The effects) would be up and down Gulf Boulevard.” “Once it’s voted upon, this commission has no control what goes in there,” he said. “Who knows what it would be?”Don Wolfrey, president of a local townhouse association near the proposed land use change, spoke before the board and explained how, if rezoned, the proposal would “negatively affect the quality of the neighborhood.”Kraus seemed to grow irritated the longer the issue was discussed. Soon after Wolfrey spoke, Kraus said, “There’s no reason to waste time on this. It’s dead.”Collins quickly replied, urging Gayton as if he were an exterminator, “Kill it now.”And so the commission did.

Legion seeks help for troops

MADEIRA BEACH – In support of troops serving overseas, the American Legion Auxiliary collects items to be boxed for mailing.Donations for boxes and postage are greatly appreciated and can be dropped off at the following locations:U.S. Army Recruiting office at the Seminole Mall, Joto’s Pizza, 131st Street and Park Boulevard, Madeira Beach Yacht Club, Seminole Gardens, Sea Towers, Bickley Park, London Bus, Tides Golf Club, Crabby Bills, Quality Storage, Joannaes Laundry, Dollar Store at Park and Seminole boulevards, St. Petersburg Police Department, Maximo Resource Center, Tangerine Resource Center, Skyway Resource Center, Holiday Isle Elks, Old Salts Post No. 273, Soroptimiso International of Holiday Isles, Friendship Restaurant, American Legion and VFW Posts 273, 7, 125, 4256, 9272, 10094 and 6827.

Good works and fun times fit the bill for Eagles aerie

LARGO – As the leftovers of an angry Tuesday evening downpour trickled to the ground outside, Jake Shirley parked himself next to his bottle of Guinness at the long table near the bar. The 77-year-old resident of Clearwater has been a regular for 10 years, partly because he enjoys an occasional drink, but mostly because this isn’t an ordinary bar.Shirley is a member of the Largo chapter of the Fraternal Order of Eagles at 13308 66th St. N., Aeries 4013. Beaming in the dim light, he explained what the organization means to him.“Two-thirds of what we do is charity,” he said. “We’ve paid people’s light bills; we’ve paid people’s rent.”Founded in 1898, the Eagles are a body of men and women dedicated to “People Helping People.” Members pride themselves on nonprofit charity work, and seven have served as U.S. presidents, including Theodore Roosevelt, John F. Kennedy and Ronald Reagan.The fraternity has more than 1 million members and 1,700 branches across the United States and Canada, and anyone is welcome to apply, but there is a small annual fee due upon acceptance.The Largo club received its charter in 1982 and now has about 300 members. Shirley considers all of them family, especially Fannie Underwood, 71, his sweetheart for 24 years.Underwood said the Eagles have numerous fundraisers for charities, and one of their current projects is Pennies for Puppies. An open jar on the bar collects loose change which will be used to help feed puppies before they begin their training to become seeing-eye dogs.“It’s wonderful,” she said of the group’s work. “It gives a good feeling.”Eddie DiSanto, 67, was president of the men’s Aeries for six years. Though he stepped down from his office this year, he and his wife, Paula DiSanto, 59, still remain actively involved in the chapter. Paula is a former secretary for the women’s Auxiliary.Sitting in their Largo home, the two shared stories of the children and families who have benefited from the Eagles’ work. From Christmas parties for underprivileged children to food donations to school supplies to shoe boxes for the soldiers in Iraq, Paula said “everything is donated and made by the club.”“There’s a lot of people around that want to donate and want to get involved,” her husband added, “but they just don’t know how.”The club regularly hosts social events and dinners to raise money, and all the proceeds from the bar go straight to charity after expenses, the couple said.One of Paula’s favorite places to assist is The Children’s Center at Sabal Palms, a privately-funded home that cares for disabled children. “It breaks your heart,” she said. “It really does just break your heart.”When the home needed a rocking chair, Paula said the Eagles purchased three from Cracker Barrel, and the restaurant even threw in a baby’s cradle. Paula said a little girl named Hannah has also stolen the member’s hearts. The child has battled a rare form of cancer since her toddler years, and the Eagles have done everything they can to help her and her father in the touching fight for her life.“We call her Hannah Banana,” Paula said, adding that the girl’s picture hangs in the clubhouse, and all of the members have taken a special liking to her.Although the Eagles are constantly raising money for charities and medical research, a pool table and about 10 dart boards in the room beside the bar give clear indication of the fun-filled evenings at the club house. “It’s not like you’re going to a normal local bar,” Paula said, adding that there is rarely any cursing, fighting or brawls, and there is even a room in the back for the children to play in.“It’s just – It’s just a nice place,” she said. Tina Milnes would agree.The 39-year-old wife and mother of two from St. Petersburg has bartended for the Eagles for the past three years. She said she enjoys the friendly people and the good hours; the club is open from 2 to 11 p.m. daily, giving her time to spend with her daughters.Milnes said about 80 percent of the members are over the age of 55, but she thinks that’s just because the younger crowd hasn’t heard about the Eagles.She hopes with more advertising that will change. “I’d like to see anywhere from 25- to 50-year-olds join clubs like this,” she said.And as far as Shirley and the rest are concerned, a new Eagle is just another addition to the family.

City’s cultural complex unity wins commission praise

LARGO – Two city departments working together are generating unique, new programs for city residents – at little or no cost.Once conceived to be part of a new, expanded Leisure Services department, the city library and the Largo Cultural Center have won praise for working together while maintaining their individual identities.The Largo Cultural Center will be 10-years-old in November. The Largo Public Library Aug. 1 will celebrate its first year in its $21 million building across the street from the cultural center.The city hired an architect to produce concepts for incorporating all of the activities of the downtown Largo Community Center with new art education programs in the former library adjacent to the cultural center.Leaders of each city institution received approval as the best in the area, according to Mayor Pat Gerard, but a new working relationship between the two city departments won all but standing applause from city commissioners. Joan Byrne, the city’s recreation, parks and arts director and library Director Casey McPhee received the praise.At the City Commission’s July 11 workshop meeting, the two department heads earned compliments after reporting on joint projects under way. The projects included a program on children reading books about Hansel and Gretel two weeks before a Largo Cultural Center presentation of Orlando Opera Company’s “Hansel and Gretel.”Other combined projects included library employees teaching colleagues in the park’s department how to read to children during summer camp programs. And, two “certified” balloon artists who work for Byrne will teach library employees how to twist balloons into figures.McPhee said her staff was excited at being able to link its resources to parks events such as summer camps and ecological studies. On the other hand, Byrne said, specialists in the parks department are enthusiastic over using library resources to bolster their programs.Dozens of computers in the library are now being used to expand the city community center’s computer education program, Byrne said.McPhee and Byrne said there are plans to resurrect the “Art Hop” that was very popular in the community and, especially with the City Commission.Byrne said it was expected that the event would move from one city venue to another during the course of an evening, ending up at the cultural center. It was suggested that the event include the library, possibly where the event could begin.“I’m very excited at what the two of you have done,” said Commissioner Harriet Crozier.“I can’t tell you how pleased I am,” added Commissioner Gay Gentry, a retired librarian.“You are creating a positive environment for Largo with the cultural center, library, the old library and the (Central) park in general,” said Commissioner Gigi Arentzen. “I love what we’re doing.”Gerard agreed, but cautioned the two departments to maintain focus on their own areas so as not to lose the edge that made them “the best library and best parks, recreation and arts department they can possibly be, possibly at least, in the county if not the whole region.”

Crime in Largo dips in 2005

LARGO – Police Chief Lester Aradi continues to attribute aggressive traffic enforcement with reducing the amount of crime in the city during 2005. At the same time, he noted a recent survey indicates residents want even more aggressive traffic patrols in the city.The state’s Department of Law Enforcement statistics, released last week, show there were 2,905 serious crimes reported during 2005 in Largo compared to 3,105 in 2004.Sex crimes dropped the most, down 28.2 percent, followed by nearly 25 percent drops in aggravated assaults and burglaries, according to the FDLE report.The only increase was marked in murders. During 2005 there were four reported compared to two the year before.The FDLE shows there were 3.8 crimes reported for every 100 residents of Largo, which reflects a downward trend since 4.3 per 100 in 2002.In February, Aradi predicted the reduced crime report, noting there would be an increase in the number of aggravated assaults with firearms. He said last week that the number of murders now, compared to 25 years ago, may be less because of improved emergency medicine so more assault victims survive.“Couple that with record numbers of our most violent criminals locked away behind bars today than ever before,” the chief reported to the city July 11. Also, he reported “advances in criminalistics such as AFIS (Automated Fingerprint Identification System) and DNA, and more cops on the streets.”Aradi is concerned with Internet pornography and videogame violence which he contends are responsible for rising crimes by, and against, children.A recent survey of city residents, he added, has shown most want more traffic law enforcement and a greater presence of patrol cars in their neighborhoods. He said he was surprised at this, in light of a two-fold increase in the number of traffic citations issued during the past two years in the city.“Seminole Boulevard from 7 a.m. to 9 a.m. is a race track south of post office,” wrote one resident.“Please do something about the cars with extremely loud stereos,” wrote another. “One goes down Eighth Avenue every night and our windows shake when the car stops for the light.”“I rarely see the Largo Police drive down our street,” said a respondent. “It would be comforting if we saw them at least once a day at varying times.”Aradi said that, of 10,000 questionnaires mailed, 1,329 were completed and returned. Of those returned, 93 percent said they felt Largo rated the police department good or excellent in effectiveness.“Overall, we have a great police force and I, for one, am proud of all of you,” said a respondent. “Thank you.”But, said another, “I am just amazed at the lack of courtesy of some Largo city employees, including police officers. I really feel that Largo police officers don’t have people as their priority.”According to the chief’s analysis, more people feel safe in their neighborhoods than in a similar survey taken in 2001 and 2004. In 2001, he said, 9.28 percent of respondents felt unsafe in their neighborhoods; 3 percent in 2004 and down to 2 percent this year.“I wish the police would drive through mobile home parks like they used to,” said a respondent.“In comparison with other cities I have lived in prior to Largo,” said another, “Largo is by far the safest I have lived in. I feel secure here and I plan to raise my children here.”

Chris Burke named top school officer

DAYTONA BEACH – Largo police Chief Lester Aradi sees some irony in the selection of Officer Chris Burke as the School Resource Officer of 2006 by the state attorney general.Burke nearly lost his job at Largo Middle School in a proposed cutback by the Pinellas County School Board. Until several weeks ago, the county had planned to replace all municipal police officers in county schools with sheriff’s deputies, said Aradi.The plan was halted, Aradi said, only after several police chiefs met with the school administrators and convinced them such a change was coming too close to the schedule school openings in two weeks.“It’s still a proposal they will be looking at for next year,” Aradi said.Burke, 41, was given the statewide award Monday by the attorney general’s office during the statewide convention of some 1,600 Florida school resource officers.“Officer Burke embodies the very best of what a school resource officer should be,” a statement by the attorney general’s office said. “His dedication to the children at his school led him to quickly recognize threats to student safety and develop solutions where none had existed before.”Burke’s nomination was endorsed by school Principal Fred Ulrich, three vice-principals and teacher’s representative Leslie Pohley.“Officer Burke has dramatically improved the overall safety at Largo Middle School,” they wrote in a letter in support of his nomination. “His friendly, calm and fair handling of situations has earned him a glowing reputation at our school.Aradi added that Burke “has extreme, true love for children. He takes their safety and well-being to heart.” He said Burke joined the police department in 1989 as a dispatcher. Through the years he was promoted to communications supervisor and eventually sworn-in as a police officer and worked on patrol duties.Several years ago he joined the juvenile division as an elementary school education officer. He has taught classes in elementary schools in the city with health, safety and law enforcement presentations.Early in the school year, Burke learned there was tension in the school between Puerto Rican and Mexican students, according to Ulrich. Burke quickly ascertained who the leaders were of each faction. He brought them together in a regular program on the school’s closed-circuit television station for all of their followers to see them shake hands.Burke then met with their parents and with other students and tensions were eased.Ulrich said students like and respect Burke, that he’s “unfailingly positive and kind, making sure everyone involved feels comfortable and valued.”Burke’s creativity has reduced driveway congestion with innovative traffic patterns and won him praise from bus drivers who now spend less time loading.“The children at Largo Middle School are safer thanks to his (Burke’s) tireless efforts,” the state attorney’s office wrote.Largo has four school resource officers including Burke: Two at Largo High School and one who travels among the elementary schools in the city addressing classes and producing special programs. One drives a colorfully painted Chrysler PT Cruiser police car the city bought with money confiscated from drug dealers, Aradi said.“The connection we have with the children of our community is the foundation for our future interactions as they become adults,” Aradi said. “If we can develop a relationship with children during their formative years, built on mutual respect, it will pay the city dividends down the road.”

Clearwater to lower millage rate

CLEARWATER – If a staff proposal is approved in September, Clearwater’s property tax millage rate will be lowered for the first time in a decade. A mill is $1 of tax for every $1,000 of taxable value.Clearwater residents currently pay 5.75 mills, but city staffers have proposed lowering that to 5.42 mills. Even with the decrease, the city expects to collect $7 million more than the $45 million it took in this year. That’s because redevelopment and soaring property values, especially on the waterfront, have raised the city’s tax base to $10.6 billion, almost double the $5.7 billion it was just four years ago.The millage reduction won’t be a huge windfall for homeowners, however. A $143,000 house with a $25,000 homestead exemption and a 3 percent increase in assessed value would save just $16.Another Katrina survivor wants his dog backIn the chaotic aftermath of Hurricane Katrina, the Humane Society of Pinellas brought 288 displaced animals to its Clearwater shelter and found new homes for many of them. But it turned out that not all of them had been abandoned by their owners.First, Steven and Dorreen Couture of St. Bernard Parish, La., accused the society of wrongfully allowing their St. Bernard, Master Tank, to be adopted by Pam Bondi of Tampa and wrongfully allowing their shepherd mix, Nila, to be adopted by Rhonda Rineker of Dunedin. When Bondi and Rineker refused to return the dogs, the Coutures sued them and the society.Now, a lawyer for Victor Marino of Chalmette, La., has filed a complaint with the Pinellas County Department of Justice and Consumer Services, accusing the society of wrongfully allowing Marino’s 4-year-old Jack Russell terrier, Max, to be adopted by Jeremy and Tiffany Mansfield of Clearwater. The agency says no laws were broken in the adoption, but it will examine the society’s financial records to make sure there were no improper fundraising tactics used in connection with the Katrina animals.Living in Clearwater has its perksClearwater citizens who want to learn more about their city are invited to sign up for the fifth annual Citizen’s Academy. The 10-week program will give participants an inside look at the workings of various city departments.Classes will meet from 6 to 8:30 p.m. every Tuesday from Sept. 26 to Nov. 28. The 20 participants, who will be chosen by a selection committee, must have their applications in by Aug. 11. Application forms can be obtained at www.myclearwater.com or by calling 562-4682.‘Leagles’ to help with homeworkThe Young Lawyers’ Division of the Clearwater Bar Association will kick off its “Legal Eagles Homework Help” program from 4 to 6 p.m. on Aug. 1 at the North Greenwood Library, 905 N. Martin Luther King Jr. Ave. Refreshments will be provided and each participant will receive a backpack filled with school supplies. Thereafter, free homework help in all grade 1-8 subjects will be available from 3 to 5 each Tuesday afternoon starting Aug. 15. For more information, call 462-6895 or 562-4834.Beautification award winners announcedThe Parkwood Estates Mobile Home Park was named Neighborhood of the Quarter and four Homes of the Quarter were honored at last week’s Clearwater City Council meeting. Brian Langille’s 1960s Sunset Lake Estates home, at 1678 Souvenir Drive, received an award for its lush landscaping and renovated exterior.The Lake Belleview home of Ivan Flow and Shane Dellinger, at 1540 S. Prospect Ave., was honored for its interior makeover, landscaping, outdoor art and pond.Nelda Grant’s 1976 Oak Forest home, at 2766 Quail Hollow Road W., was singled out for its outdoor improvements, including a deep-well sprinkler system, brick courtyard and landscaping that features more than 15 types of trees, shrubs and plants. The Cedar Heights home of John and Debbie Carollo was lauded for its new French doors, irrigation system, updated fencing and enclosed pool and patio.The Coconut Restaurant, 1280 South Missouri Ave., received the Summer 2006 Business Beautification Recognition Award. New owner Ake “Eddie” Punyahotra was praised for turning the decrepit former fast food restaurant into a Thai eatery with a renovated exterior, attractive signage and improved lighting.

Final preparations under way on Dimmitt Community Center

BELLEAIR – Though the building is not yet set to be completed until August, the Dimmitt Community Center is open for basketball, and the squeak of sneakers on hardwood is already a common sound in the 9,000-square-foot gymnasium.But John Yevich, the town’s recreation director, doesn’t want people to think the gymnasium can only be used for James Naismith’s favorite sport.“The gymnasium is for anything we want to do,” Yevich said. “I don’t want people to think it’s just a basketball court.”Yevich said he already has plans to use the room for dodge ball, indoor soccer, yoga and bridge tournaments.“I’d like to add programs, like beginner gymnastics. I’m talking to a karate instructor,” Yevich said. “If there’s an interest we would try anything. We could have an adult arts and crafts class if someone wanted to teach it.”The gymnasium is only part of the 14,000-square-foot facility. The game and conference room, kitchen and lobby area comprise another 5,000 square feet.When completed, the game room will be filled with pool and foosball tables, free arcade games and a set of items Yevich is particularly proud of.“Right there, we’re going to put up a plasma screen television,” Yevich said, and gestured to one of the game room corners. “Then we’re going to put couches around it, and add a surround sound system and an Xbox 360 (video gaming console.)”Yevich said he has a popcorn machine, a smoothie machine and hot dog cooker ready for the kitchen, which is adjacent to the game room, and has a serving window facing the center’s play fields and tennis courts, and an area set aside for a playground. The kitchen will sell drinks and snacks to game participants and spectators to raise funds for the center.Belleair residents will get free center memberships but have to pay program fees if they want to engage in any league play, or take any offered classes.Non-Belleair residents can use the center after paying an annual $65 membership fee, or if they only want to participate in a certain program, they can waive that fee and just pay a higher program fee.The town’s recreation center is now housed in the old game room and occasionally makes use of the City Hall auditorium. In the past, some center activities shut down other activities because of space restrictions, but, when finished, the new, larger facility will allow a greater number of activities and programs to run concurrently. The Haunted Halloween attraction shut the game room down for one-and-a-half-weeks last October, and Yevich said that similar situations are not likely to arise in the new building.Yevich said that he hopes the center will fully open its doors in August, with the formal grand opening slated for October.The grand opening party will be a fundraising casino night. The night also will honor the naming donor, Larry Dimmitt. “The Dimmitt family is out of state now, but will be back in October,” Yevich said, explaining the late grand opening date.Once fully operational, the Dimmitt Community Center will be open Monday through Saturday, 9 a.m. to 9 p.m. Yevich said the hours may expand on some days, particularly Friday.

Belleair Shore tax rate headed down

BELLEAIR SHORE – This town’s 60-some homeowners may pay the most in property taxes in Pinellas County, but they have the county’s lowest municipal tax rates, according to Mayor John Robertson.The Town Commission introduced a proposed 2007 budget July 19 that would be just $6,500 more than the town’s current budget, an 8 percent increase. But, Robertson explained, because of rising property values, the city can use a lower tax rate to collect enough money from property taxes to support the new budget.The proposed tax rate is less than 52 cents per $1,000 of assessed property value.Last year the rate was 72 cents per $1,000. That’s about a 30 percent reduction in the rate, but homeowners’ tax bills may still go up because of their higher assessments and increases in county and school taxes.Robertson said his $89,600 budget for next year is “based only on what our needs are.”The budget includes a proposed $1,000 increase in what the town pays Belleair Beach for police service. Robertson, however, said he plans to meet with the city’s police chief to discuss whether the police officers could also be used to enforce Belleair Shore ordinances.Town Attorney John Elias had been asked to report on how the town could regulate short-term rentals and Commissioner John E. Hayes Jr. suggested the city adopt an ordinance regulating lights that endanger sea turtles along the town’s mile-long beachfront. Both would need an enforcement mechanism not currently available.Elias said that the county has adopted a code on short-term rentals but that it includes no means of enforcement. He said the town would have to adopt an ordinance and set up a means of adjudicating alleged violations.The town could use its police to issue citations, he explained, and have the cases tried in either county court, through a local code enforcement board or “special master” judge.According to the attorney, the city ordinance could mirror the restrictions in the county code. He said this would restrict rentals to no less than 30 days and no more than three leases per year on any property. All rentals would have to be registered, in advance, he added.Belleair Shore may have only one or two homes among its 60-some property owners that are leased, Commissioner Ray Piscitelli noted.Hayes suggested that landlords currently might not pay the appropriate sales and tourist taxes. He said the city should adopt a policy that anyone caught violating the new code be reported to the county Tax Collector’s Office.The commission directed Elias to draw up the rental code and Robertson said he would meet with Belleair Beach police to determine if they could respond to alleged code violations in Belleair Shore and take rental registration forms. He said they already do so within their own city.Elias also was directed to draw up an ordinance that would limit home lighting that shines on the beach that could prevent turtles from coming and going from their nests.Hayes said there were 105 turtle nests this year in Pinellas County and only eight of them were washed away by high water from Hurricane Alberto last month.“I’m pleased to report that the hatch was good,” he said. “One nest (in Belleair Shore) had 117 eggs hatched and all of them made it to water. It seems our beach is a favorite to the sea turtles.”

Seven-story Narrows development project discussed

INDIAN ROCKS BEACH – Development issues soon may return to the forefront as ideas for a possible mixed use seven-story project take shape and enter the public arena.Menahem Roth, owner of a 2-acre parcel in the 300 block on the east side of Gulf Boulevard, has been talking to individual city commissioners and city staff about a possible mixed-use commercial and residential project. The 300 block of Gulf Boulevard is in The Narrows, as the business triangle is now called. Roth also owns the Walsingham Road property where the former GTE switching station building is located.Roth has provided the city with several conceptual renderings, most of which feature five stories over two-story parking garages. The city’s current code and comprehensive plan would not permit buildings of that height or density.Mayor Bill Ockunzzi said he has discussed project ideas “very conceptually” with Roth on several occasions over the past year or so. Ockunzzi said he told Roth that it would not be allowed under state law to increase the residential density in the coastal zone, but said he suggested to Roth that the density of his GTE building could be transferred to the proposed site because it wouldn’t result in a net increase in density for his total properties.Ockunzzi said he told Roth, “after you transfer the density off of the GTE building, it’s not worth anything anymore, and you can turn it over to the city.”Roth confirmed that he would donate the GTE building to the city in exchange for the density transfer. Ockunzzi said the GTE building would have to be renovated, but could be considered as a possible site for a new city hall, library or fire station.Commissioner Jim Palamara also mentioned a density transfer in a July 5 meeting with City Manager Al Grieshaber, according to Grieshaber’s file memo documenting the meeting. Palamara’s remarks support a concept for two buildings for the Gulf Boulevard site with “a lot of green space between the buildings.” According to the memo, Palamara told Grieshaber the buildings “would be compatible with the neighborhood and allow The Narrows to become a viable part of the community.” Roth also met recently with Vice Mayor R.B. Johnson, who is vehemently opposed to Roth’s proposals. For one thing, said Johnson, a seven-story project would be more than twice as high as permitted under current code. “All of the buildings on that side of Gulf Boulevard from Walsingham south are low-rise, and this project would tower over them,” Johnson said. “We don’t need a skyscraper ghetto in the middle of that district like they’re building on Clearwater Beach.”Nor does Johnson see any value in the city acquiring the GTE building as part of a density swap. “Why would we show this much favoritism to one developer, just to get the GTE building for which we’re not even sure we have a use?” said Johnson.Commissioner Jose Coppen says he has not met with Roth about this project specifically but heard about it over a year ago. He has seen the conceptual renderings at city hall and said they appear to be massive with excessive height. Coppen said he would reserve judgment until he sees the complete package that is brought to the commission.A seven-story project would require a supermajority vote, he said, and like Johnson, commented that it would be inconsistent with the current heights in the area. Ockunzzi recommended that Roth bring his ideas to a commission workshop to get input from the commission and the public on an acceptable project before submitting any formal plans. Roth said he is not interested in doing a project unless it fits in with the look of the city and has the support of the citizens.“We want something to happen in the triangle, and this is one of the key parcels,” said Ockunzzi. “We ought to get people talking about it, and see if we are reasonably close to the same page.”

Roads to be closed throughout Pinellas

PINELLAS COUNTY - Several roads will be closed around the county, beginning on Monday. Some will be closed temporarily for construction, and some in St. Petersburg are closing permanently.Motorist traveling through Pinellas Park Monday morning may want to avoid Belcher Road at 84th Avenue North. All northbound lanes will be closed for about 500 feet from Monday to Wednesday as workers make a permanent repair to the sanitary sewer manhole.Traffic flow will temporarily be redirected along Belcher Road to allow for one northbound lane and one southbound lane in this area during the repair. Barricades will be in place to guide the flow of traffic. Motorists are urged to use caution.For more information, call Pinellas County Utilities at 464-3896.FDOT announces lane closuresMiscellaneous lane and ramp closures are scheduled on I-375 between I-275 and 4th Street North in St. Petersburg between 8 a.m. and 8 p.m. Monday through Friday, July 31-Aug.4. Currently scheduled work includes the following:- Monday, July 31 - The ramp from westbound I-375 to southbound I-275 will be closed. The detour is to take the ramp to northbound I-275, exit at 22nd Avenue North. (Exit 24), turn left and go under the interstate and enter the ramp to southbound I-275.- Tuesday through Thursday, Aug. 1-3 - Two of three lanes closed on eastbound I-375 from I-275 to the Eighth and Ninth Street exit.- Friday, Aug. 4 - One lane closed on eastbound I-375 from I-275 to the Eighth and Ninth Street exit. In addition, the Eighth and Ninth Street exit will be closed. Traffic will be detoured to the 4th Avenue exit. For real-time traffic information in the Tampa Bay area, dial 511 or visit www.511tampabay.comPermanent road closuresConstruction of the new Wildwood Park Sports complex addition tentatively is scheduled to begin Aug. 1 and be completed by Oct. 31. Three St. Petersburg roadways will permanently close:- Irving Avenue South between Yale Street South and 26th Street South will be removed.- 10th Avenue South between Yale Street South and 26th Street South will be removed.- 26th Street South from 10th Avenue South to 11th Avenue South will be removed.Access to the Juvenile Justice Complex will be from Ninth Avenue South at 26th Street South before and after construction is completed. Pedestrian access to Jennie Hall Pool will not change. After project completion there will be a new 62-space parking lot adjacent to the east side of the pool bathhouse accessible from the south by 26th Street South or the east by 11th Avenue South.The completed project will include a lighted practice football field with a vinyl-coated fence, parking for 76 cars, drainage, two-lighted tennis courts, and landscaping. A second phase will include a restroom and concession building.For more information, call 893-7250.

Marina plans to move forward

CLEARWATER – After months of discussion and preliminary studies, the city is ready to move forward with plans to build a 129-slip marina on the downtown waterfront, at the eastern end of the Memorial Causeway Bridge. The City Council last week gave staffers the go-ahead to draft the necessary referendum in a form likely to be approved by the voters in November, and spend more than $150,000 to obtain the required permits.“The only decision we get to make is whether to take it to referendum,” Councilman John Doran explained. “Whether these boat slips happen or not is up to the voters of Clearwater.”“I’m excited about the whole project,” Mayor Frank Hibbard said of the marina, which is expected to spend $300,000 a year more on operating expenses and debt service than the $1.6 million a year it is projected to take in.“I wish it would cash-flow from the beginning, but I guess that’s a bit optimistic.”Kirby Marshall of Applied Technology Management, the project’s financial consultant, proposed charging transient boaters $1.85 per foot per day, and charging long-term renters $14 per foot per month. That’s considerably more than the $4.58 per foot per month the city currently charges at its Municipal Marina on Clearwater Beach, but well below the statewide average of $18 to $19 per foot per month.“There will be people who will almost be willing to bid on this to get their boat into this facility, Councilman Hoyt Hamilton said, adding that boat owners won’t have to cross the busy Memorial Causeway Bridge to reach their boats.Hibbard said the city would have to convince the voters that the marina will be an amenity that will benefit all Clearwater residents, and not just a subsidy to boat owners.Doug Matthews, the city’s communications director, said his department is geared up to do just that, with a series of public meetings. But Vice Mayor Carlen Petersen didn’t need convincing.“I don’t own a boat,” Petersen said. “But I would love to see a downtown marina.”Margie Simmons, the city’s finance director, said there are ways to narrow or eliminate the $300,000 annual gap between the marina’s income and expenses. Among them, she said, are raising slip rents, using Penny for Pinellas sales tax revenue for the restrooms and other on-shore facilities, and issuing the $11 million of bonds for 25 or 30 years instead of the proposed 20 years.“We’re going to be vigorously pursuing grants and other partnerships,” Simmons said. Eventually, Marshall and Simmons agreed, the marina will become self-supporting.“It’s really a no-brainer,” Marshall said. “There are more boats than there are slips.”Originally planned for 138 slips, the marina will be built to withstand a Category 2 hurricane, although that will require some “armoring” of the seawall with concrete rip-rap. It will have floating docks instead of fixed ones, and no davits or lifts. Wood, steel, aluminum and stainless steel were rejected in favor of concrete for the docks. Although concrete costs approximately 20 percent more than wood, it is expected to last 40 years.“The life-cycle costs of concrete docks are better,” David Gildersleeve of the Wade Trim engineering firm explained. “The initial costs might be a little higher, but that is made up over the life of the docks.”There was discussion of whether the marina should be limited to pleasure boats or also allow commercial boats. Hibbard said that commercial boats would be a good catalyst for invigorating the waterfront.“We don’t want charter fishing boats going out of this facility,” Hamilton replied. “We don’t want people filleting fish on the docks of this facility.” But he added that he has no objection to excursion boats docking there.“Even for nonfishing commercial vessels, there are upland storage requirements that you don’t want to see on the downtown vista,” Bill Morris, the city’s marine and aviation director told the council. He suggested that excursion boats be docked at the Municipal Marina but have a spot where passengers can be picked up and discharged at the downtown marina.The measure to draft the referendum ballot and finance the permitting process passed unanimously.

Early morning fire destroys one of city's oldest houses

CLEARWATER – Flames extensively damaged one of the city’s oldest houses early July 25 and sent one firefighter to the hospital.Fire Marshal Steve Strong said the house at 622 Belleview Blvd., near Hamlet Street, was fully engulfed when firefighters arrived shortly after 1:30 a.m. The firefighter, whom he wouldn’t identify, had taken a hose to the second story of the house when the floor beneath him collapsed, sending him crashing to the floor below.Rescuers helped the 36-year-old firefighter from the burning house and he was taken to Mease Dunedin Hospital for treatment. Strong said the firefighter was treated and released with minor burns and a broken rib.The old, two-story house had just been moved to the site, according to Strong and was unoccupied.The fire marshal said it appeared the fire started in an electrical junction box on a back wall. He said flames crept under the first floor through a crawlspace and rose into the house.“We believe the fire was going about 30 minutes before it was noticed and someone called 911,” said Strong. “The first firefighters on the scene entered the structure for their initial attack. Members of the crew went up the stairs to extinguish the fire from the interior. The first firefighter reached the top of the stairs and entered the second-floor bathroom. While crawling on his hands and knees, the firefighter fell through the floor.”Strong said his investigation showed that the floor under the firefighter had been weakened by flames.The fire was declared under control at 2 a.m. but the house was totally destroyed, said Strong, who estimated total damage at $200,000. Because of the fire’s proximity to Belleair Bluffs and Largo, units from those municipalities automatically responded in mutual aid to assist Clearwater, Strong said. In all, there were 16 or 17 firefighters at the scene, he said, with three fire engines, one utility truck, a rescue vehicle and ambulance.Strong said he couldn’t confirm the house’s historic significance.“I was told it was the second-oldest house in Clearwater but I couldn’t confirm that,” he said.The house was moved to the Belleview Boulevard address just in the past month, Strong said, from its original location on Fort Harrison Avenue and Lakeview Road. He said the house was being renovated and improved wiring was installed within the past two weeks.

At first a tennis rookie, Clearwater woman now serves

CLEARWATER – Julie Panton was just a regular citizen of Pinellas County, enjoying the Clearwater Beach lifestyle and enjoying good company.Being the people lover she is, Panton was always interested in meeting new people and friends. An acquaintance suggested she play tennis.But there was only one problem, Panton told her friend. She had never played tennis before. And having just turned 50, she was too old to learn a new trick.But her friend persisted and Panton relented.Little did Panton know her life would drastically change as a result. Now seven years later, Panton is one of the more respected members of the tennis community. She has turned an almost flippant suggestion into a cottage industry. She is a tennis official and is a tennis instructor and tutor to dozens of youngsters throughout Pinellas County.She also volunteers as much time as she has to encourage and promote the game of tennis. As a result, Panton was named by the Florida chapter of the United States Tennis Association as a Volunteer of the Month.In short, Panton is high on tennis life.“Yes, I love the game so much,” Panton said. “It’s just being around people and you learn more and you love what you do. You can never learn enough about tennis. It’s so much fun.”Panton is the head professional at the Willis S. Johns tennis center in St. Petersburg and is a youth coach at the St. Petersburg Tennis Center.She also took classes since taking up tennis in officiating and works several matches a year in addition to her tutoring and overall free public relations service for the sport.Panton became a tennis professional last year and as a result started her own business. She began an after-school program for youngsters and also offers classes for adults, even for adults who are much closer to retirement than the age to vote.“People always have fun around tennis and the people involved in tennis are so nice,” Panton said. “It’s always so much fun.“And you can never be too old to learn.”

Six-month building moratorium adopted for Marina District

CLEARWATER BEACH – In hopes of making the Beach by Design master plan for Clearwater Beach work the way its drafters envisioned when it was adopted in 2001, the City Council last week imposed a six-month moratorium on most new construction in the Marina Residential District. City planners will use the stand-down to revise BBD to attract large redevelopment projects to the 14-acre Marina District.“It’s the one area of the beach that has not experienced redevelopment, compared to other areas of the beach,” Gina Clayton, the city’s assistant planning director, told the council.In fact, only two of the 70 site plans for Clearwater Beach redevelopment that have been submitted since BBD was adopted have been in the district, which is bounded by Clearwater Harbor on the east, Poinsettia Avenue on the west, Pier 60 Drive on the south and the northern property line of Belle Harbor on the north. The only project currently pending in the district is a condominium duplex on East Shore Drive.Ideally, the city would like to see a single developer buy up the entire Marina District and present a coordinated plan for redeveloping it. Barring that, 5-acre redevelopment projects would be the second choice, and 2.5-acre projects would rank third.But the district’s hodgepodge of shallow, individually-owned lots makes large-scale redevelopment projects difficult to assemble. As an incentive, BBD waives certain height restrictions for large redevelopment projects.The city has an ulterior motive for wanting large redevelopment projects. BBD requires developments of 2.5 acres or more to give the city an easement for a public Bayside Boardwalk along the western shore of Clearwater Harbor, and the planning staff fears the boardwalk will never come to fruition unless BBD can be rewritten in a way that is more attractive to developers than the current version.“No consolidated development has occurred since the adoption of Beach by Design and there is great concern about the lost potential for redevelopment that incorporates major public amenities,” said a planning staff memo to the council. “A six-month moratorium is to be considered for the Marina Residential District so that amendments to Beach by Design can be prepared and adopted that will better balance development incentives at lower thresholds with provisions for public benefits and amenities.”The goals of the proposed amendments include developing greater flexibility with regard to the location of the various uses within the district and allowing overnight accommodations throughout the district. It is hoped that the amendments will preserve and ensure public access to the waterfront and provide redevelopment opportunities that are more in line with public expectations.“Normally we would be opposed to a moratorium because of property rights,” Clearwater Beach Association spokesman Jay Keyes told the council. “But in this case, we support it.”“I think this one, personally, is a no-brainer,” Mayor Frank Hibbard agreed. “I think it’s a win-win for everyone.”The moratorium, which will end on Jan. 30, 2007, passed 4-0, with Councilman John Doran recusing himself. It applies to all new construction less than 2.5 acres, although repairs and renovations are exempt.

Dueling views on home lending discrimination

WASHINGTON -- July 28, 2006 -- A consumer advocacy group, after analyzing loan information provided to the government, says there is clear evidence of discrimination against black and Hispanic borrowers.

A law firm that represents mortgage lenders, using much of the same data, says its study proves that there is no evidence of discrimination in lending.

The lawyers call the consumer advocates' views "skewed," while the advocates think the lawyers' findings are "limited."

The studies
A May report by the Center for Responsible Lending, based in part on information from the Home Mortgage Disclosure Act, said when it comes to most types of high-priced home loans, usually called subprime loans, black and Hispanic borrowers were more than 30 percent more likely to receive expensive subprime home loans than their white peers with similar finances.

CRL spokeswoman Sharon Reuss thinks a leading cause might be yield-spread premiums, which are monetary incentives paid to mortgage brokers who get increased rates on subprime loans.

"It could be that borrowers of color are relying on brokers who, because of yield-spread premiums, are delivering more expensive loans than what the borrowers qualify for," Reuss says. "Perhaps more expensive subprime lenders are marketing to African-American and Latino communities while these same communities are being insufficiently served by lower-cost lenders."

The day after the Center for Lending announced its findings, Traiger & Hinckley LLP, which represents lenders, ignited a controversy when it reported that the new 2005 loan information from the same law, the Home Mortgage Disclosure Act, shows that the 172 percent increase in the amount of high-priced loans, during 2004 to 2005, has more to do with borrowers becoming greater credit risks than with racial discrimination.

First, the firm claims, borrowers are taking out second mortgages on their homes, reducing value and increasing their chances of defaulting. And second, more borrowers are using a greater amount of their incomes to repay their mortgage debts, which makes the loans riskier.

It also reported that while the volume of high-priced loans increased, the average amounts that home buyers of different races and ethnicities received showed only small differences from 2004 to 2005, and that lenders had increased their services to minorities.

The firm says that a substantial effort is being made to serve minority home buyers.

"There are not only more loans to minorities but a greater proportion of lending to minorities. We shouldn't lose sight that lending to minorities has increased," says Warren Traiger, partner at Traiger & Hinckley LLP.

Both studies analyzed pricing information from the Home Mortgage Disclosure Act. This law requires most metropolitan mortgage lenders to gather information about their lending activities and submit the data to the government. Lenders are also instructed to provide information about prices that exceed certain thresholds. These are high-priced loans.

The methodology
Traiger & Hinckley, in its study, "Fair Lending Indications of the 2005 Home Mortgage Disclosure Act Data," looked at 2005 loan information from the Home Mortgage Disclosure Act, or HMDA, while the Center for Responsible Lending looked at the information from 2004.

More specifically, the law firm focused on the high-priced loans from the HMDA, looking at 1.6 million mortgages from a list of the top 10 lenders, according to American Banker.

The Center for Responsible Lending looked at 50,000 mortgages in its study called "Unfair Lending: The Effect of Race and Ethnicity on the Price of Subprime Mortgages." In addition to using the HMDA data, the center filled in gaps of missing loan information by using another loan resource, the LoanPerformance subprime asset-backed securities database, which the study says accounts for 87 percent of the U.S. subprime loan originations in 2004. Using these two sources they were able to get the borrower, loan and property characteristics.

Researchers also utilized public information from the Federal Reserve, the Office of Federal Housing Enterprise Oversight and the Census Bureau.

The Center for Responsible Lending calls its study a "first of its kind," saying that by merging the two sources they were able to control the variables of credit scores, loan-to-value ratios and other underwriting factors. They used a statistical technique called "regression analysis" to isolate the impact of race and ethnicity on loan pricing from the effects of borrower risk and economic conditions.

The opponents duel
Traiger says he thinks the report from the Center for Responsible Lending is a useful study. "Well done, given inherent limitations. Normally you would take a sample of all HMDA lending. They weren't able to do that," he says.

He says the report is a little skewed because the researchers only looked at loans that security issuers deemed "subprime."

"It's not based on a random sample," he says. "The Fed went through the HMDA data and identified 200 lenders and instructed regulators to look to see if there was discrimination. The CRL study is moot because the federal regulators are on this issue."

Kevin Mukri, spokesman for the Office of Comptroller of the Currency, says these federal examinations are part of the annual process.

"Banks and lenders provide HMDA data," he says. "The data goes to the Federal Reserve. They sort the numbers and send the appropriate findings to the appropriate bank regulators. The Office for the Comptroller of the Currency, for instance, will conduct our own review of the aggregate numbers from HMDA. We look into what the numbers would indicate. We don't have a time limit for our review, but we'll do whatever's necessary."

Reuss says the Traiger & Hinckley study is very limited in scope and did not control any variables.

"Comparing apples to oranges. The Traiger & Hinckley and Center for Responsible Lending studies each asked different questions, and Center for Responsible Lending looked at more data, which allowed Center for Responsible Lending to control for credit risk factors to isolate the impact of race and ethnicity on the probability of being in the higher-rate pool," says Reuss.

"The Traiger & Hinckley study looked only at HMDA data from 10 large lenders, which did not permit them to control for traditional credit-risk price factors such as FICO scores and specific loan-to-value.

"The Center for Responsible Lending study used regression analysis to control for credit-risk characteristics, and also controlled for geography. Traiger & Hinckley did not control for any variables."

Traiger says consumer advocacy groups should "hold their fire, pending the results of the examinations undertaken by the banking regulators as a result of the Federal Reserve's review of the 2004 HMDA data.

"Only these examinations, which review the actual loan file, including a borrower's credit history and loan details, can definitively establish if discrimination took place," he says.

The purpose
The Center for Responsible Lending's study was intended to influence lenders and lawmakers. It called on them to create pricing standards, make lenders and brokers responsible for providing loans that are right for consumers, expanding HMDA's disclosure requirements, providing enough resources to fully enforce the fair lending laws and creating policy incentives that lead the market to better serve blacks and Hispanics.

Traiger says his firm regularly analyzes mortgage lending data for its clients and that the report was undertaken to make a contribution to the public debate about what the HMDA data means.

Federal Reserve's Beige Book says economy slowing

NEW YORK -- July 28, 2006 -- Overall economic growth is slowing, according to the Federal Reserve’s Survey of Current Economic Conditions, otherwise known as the Beige Book, which was released Wednesday.

The Beige Book noted a general slowdown in residential real estate with a couple of notable exceptions. These are the St. Louis and Dallas Districts. The book said:

"In the St. Louis District, the pace of home sales was largely unchanged or up slightly compared with a year earlier, although residential construction slowed there.”

The book also note: "Housing markets have remained resilient in the Dallas District, where despite signs of cooling, home demand remains strong and residential building activity has been robust."

Along with the dip in home demand, the Beige Book noted there has been a corresponding rise in demand for rental units. "New York reported that the market for apartment rentals has been tightening in Manhattan, and according to Atlanta slower condominium sales in Florida have prompted owners to convert some units to rental property."

The Beige Book saw increased demand for commercial real estate. "Demand for commercial space was strong in general, and the market tightened further in most Districts."

But the Beige Book noted some pockets of slowing activity, including Chicago and Kansas City. And there was mention of reports that high construction costs are delaying or causing the cancellation of some building projects in the Cleveland, Chicago and San Francisco Districts.

Mortgage rates post a slight decline

WASHINGTON -- July 28, 2006 -- Mortgage rates declined slightly this week as investors grew more hopeful that the Federal Reserve's long string of rate hikes is drawing to a close.

Freddie Mac, the mortgage company, reported Thursday that rates on 30-year, fixed-rate mortgages dipped to a nationwide average of 6.72 percent, down from 6.80 percent last week, which had been the highest level for rates in more than four years.

The lowest mortgage rates in four decades powered a boom in housing, which pushed homes sales to record levels for five consecutive years. But sales of both new and existing homes have slowed this year under the impact of rising interest rates.

The Commerce Department reported Thursday that sales of new homes fell by 3 percent in June, the biggest drop in four months, with the inventory of unsold homes hitting a record high.

Analysts attributed this week's drop in mortgage rates to testimony from Federal Reserve Chairman Ben Bernanke who told Congress last week that the Fed believed a slowing economy would help reduce inflation pressures. Those remarks were seen as a signal that the central bank's long string of rate hikes could be drawing to a close.

"Mortgage rates drifted lower this week on indications that economic growth is moderating, inflation remains under control and the Fed just may pause raising rates for awhile," said Frank Nothaft, chief economist at Freddie Mac.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 6.34 percent this week, down from 6.41 percent last week.

Rates on one-year adjustable rate mortgages dropped to 5.78 percent, compared with 5.80 percent last week.

Rates on five-year adjustable-rate mortgages slipped to 6.35 percent from 6.36 percent last week.

The mortgage rates do not include add-on fees known as points. The 5-year and 15-year mortgages carried a nationwide average fee of 0.4 point. The 30-year mortgage had a nationwide average fee of 0.3 point and the one-year ARM carried a fee of 0.7 point.

A year ago, 30-year mortgages averaged 5.77 percent, 15-year mortgages stood at 5.34 percent, one-year ARMs were at 4.46 percent and five-year ARMs averaged 5.27 percent.

Nelson says he supports Senate offshore drilling bill

TALLAHASSEE, Fla. (AP) -- July 28, 2006 -- U.S. Sen. Bill Nelson said Thursday that he will support a bill allowing offshore drilling closer to Florida's beaches after getting assurances no changes will be made in provisions still keeping the rigs 125 to 235 miles away.

The Florida Democrat, who has been an outspoken drilling opponent, said in a speech on the Senate floor that he had received promises from Senate Majority Leader Bill Frist, R-Tenn., and Minority Leader Harry Reid, D-Nev., that they would block any House-Senate compromise that would weaken those protections.

"Sen. Frist told me that he would do everything in his ability to keep it to the Senate version when the bill returns to the Senate," Nelson said. "Now that's a pretty good assurance for this senator to protect the interest of Florida."

It wasn't good enough, though, for some environmentalists who oppose both versions of the legislation. They support extending an existing drilling moratorium past its 2012 expiration date to protect beaches and coastal waters from spills and other drilling-related pollution.

"We are disappointed," Florida Public Interest Research Group director Mark Ferrulo said in a statement from his Tallahassee office. "The Senate's effort to give 8 million acres of Florida waters to the oil industry will do nothing to lower gas prices or address our nation's energy needs, but will pollute and despoil a pristine area of Florida's gulf."

The Senate bill, unlikely to come up for a vote before Monday, would prohibit drilling closer than 235 miles from Florida's west coast, a line designed to protect military testing and training in the Gulf of Mexico, and 125 miles from other shores. Those limits would be in effect through 2022 -- 10 years beyond the present moratorium.

The legislation would allow drilling in Lease Area 181 south of the Florida Panhandle, which is estimated to contain 1.3 billion barrels of oil and 5.8 trillion cubic feet of natural gas, enough to heat 6 million homes for 15 years.

The House bill would open even more offshore territory to drilling. It has a 50-mile no-drilling zone, but states could extend it to 100 miles or allow rigs as close as three miles from shore.

Nelson was afraid a joint conference committee would produce a compromise closer to the House version until he received the promises from Frist and Reid.

Frist sent him an e-mail Wednesday saying "I will not bring a bill back before the Senate that does not provide adequate protections to the State of Florida."

Reid wrote Nelson a letter promising to deliver the votes necessary to sustain a filibuster if the Senate bill is modified in conference committee.

Sen. Mel Martinez, R-Fla., negotiated the protections in the Senate bill and has said he, too, would oppose any attempts to weaken it.

"I would like to make it clear that this is not an opening for negotiation," Martinez said Wednesday on the Senate floor. "I am firmly committed to this deal. Anything else that subtracts from the protections for our state as laid out in this legislation is not enough for our state."

Even with Nelson's support, the bill may attract a filibuster from other coastal senators who are opposed to the idea of allowing drilling in areas where it now is prohibited. The moratorium covers 85 percent of the country's Outer Continental Shelf from New England to Alaska.

Higher fuel prices have persuaded many members of Congress to support opening those waters to drilling.

Opponents such as Ferrulo argue there's still not enough oil and gas off U.S. shores to have much affect on prices or reduce American dependence on foreign sources. They are pushing instead for conservation and alternative energy sources such as ethanol.

Bush considering state-run pool for business insurance coverage

TALLAHASSEE, Fla. (AP) -- July 28, 2006 -- Gov. Jeb Bush is considering a state-run reinsurance pool or joint underwriting pool to help businesses that can't get policies from private insurers, saying that if companies can't get coverage, it could lead to an economic downturn.

Bush said Thursday he envisions a program that would offer reinsurance to back up private insurance companies, rather than a program that would sell insurance directly to businesses. Reinsurance is coverage that insurers have to protect against their own losses from paying claims.

The Republican governor said he has asked Insurance Commissioner Kevin McCarty to bring a plan for a state business insurance pool to next week's meeting of the Cabinet, which would have to approve it.

His proposal came after Senate President Tom Lee and Chief Financial Officer Tom Gallagher suggested resurrecting such a pool, known as the Commercial Joint Underwriting Association. It used to exist in Florida before Hurricane Andrew in 1992, but was disbanded after a lawsuit.

The problems that many homeowners and businesses in Florida have in getting coverage for hurricane damage is well known, and state policymakers have tried to deal with that issue for years. Citizens Property Insurance Corp. is a similar pool that sells hurricane damage policies for those who can't get it in the private market.

But businesses in Florida have reported trouble getting any kind of coverage, so-called ''all perils'' insurance, and have seen policies canceled and rates increase. Insurance companies have been reluctant to offer policies because they've had a hard time getting reinsurance. Some companies can't get wind coverage either, and can't get Citizens coverage because of where they are.

Creating an insurance pool that would guarantee companies could at least find a policy would add some stability to the state's insurance market, Bush said. A joint underwriting association works by essentially pooling together several insurers to spread the risk -- jointly underwriting all the policies offered by the insurance companies.

The governor's idea is slightly different from Gallagher's. The Republican candidate for governor envisions a pool to underwrite the risk for business policies -- but with insurance companies continuing to sell and process claims.

''The JUA would provide basic coverage to Florida employers who employ thousands of hardworking citizens and serve as the backbone of our economy,'' Gallagher said in a letter to Bush.

Gallagher said Thursday that a joint underwriting pool should only be used when no other insurance is available and as seldom as possible.

Gallagher and Lee, who is seeking the Republican nomination for the CFO post that Gallagher currently holds, also made some suggestions in separate letters to Bush this week on how to help ease some of the difficulties Floridians have had in getting and affording hurricane coverage.

Gallagher is proposing having reinsurance more available by making it easier for companies to tap into the state's reinsurance fund, the Florida Hurricane Catastrophe Fund, or CAT fund. Currently companies can tap into it to back themselves up once their losses hit $5.2 billion. Gallagher is suggesting lowering the threshold to $3 billion, with the hope that would encourage more companies to write additional wind policies.

Lee is proposing expanding the amount of reinsurance coverage that companies could get from the CAT fund if the companies agree to take over coverage of homes that would otherwise have to be covered by Citizens. He also proposed using surpluses in the state's affordable housing trust fund to help pay to strengthen the homes of poor people in the hopes of lowering their insurance premiums.

On Thursday, Randy Johnson, Lee's Republican rival for the CFO nomination, rolled out a detailed and wide-ranging plan for trying to reduce homeowner's insurance rates and keep them from having claims denied.

Among Johnson's proposals are preventing home insurers from dropping policies within a month of hurricane season and requiring insurance companies to inspect all older homes to evaluate how strong they are and give discounts to those homeowners with hurricane-resistant features.

Johnson, a state representative from Celebration, also is proposing to repeal a state law that eliminated homeowners' ability to appeal decisions on whether damage was caused by wind or water.

Johnson would like to see a system similar to no-fault auto insurance, where a homeowner's wind insurer represents the policy holder before the federal flood program if some damage is caused by water, rather than leaving it to the homeowner to fight to get a claim covered.

A spokesman for the Democratic candidate in the CFO's race, Alex Sink, said she would try to strengthen the CAT fund and try to strengthen the powers of the insurance commissioner to act on behalf of consumers, although she hasn't released a plan yet with the specifics.

Sink also would try to form a regional catastrophe fund to create a backup pool with other hurricane and disaster-prone states to try to spread the reinsurance risk.

Meanwhile, Citizens President Bob Ricker said Thursday that the company has $5 billion in reserves to cover potential losses in the current hurricane season.

''We are in excellent shape financially to deal with losses this year,'' Ricker said.

The company had about $2 billion in cash and then the sale of about $3 billion in bonds gave it a cushion for paying claims. Another $5 billion is available from the CAT fund if needed, Ricker said.

Governor Bush appoints two to the Florida Real Estate Appraisal Board

Governor Bush appoints two to the Florida Real Estate Appraisal Board
TALLAHASSEE -- Feb. 23, 2006 -- Governor Jeb Bush announced the following appointments to the Florida Real Estate Appraisal Board (Senate confirmation required):

• Joni Herndon of Tampa, self employed, succeeding Douglas Brown, for a term beginning Feb. 16, 2006 and ending Oct. 31, 2009.
• Susan Dailey of Jacksonville, quality lending advisor with The Prieston Group, succeeding Mark McDonell, for a term beginning Feb. 16, 2006 and ending Oct. 31, 2009.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

Largo Florida Real Estate Cell : (727) 744-6821 or (727) 744-6822Our goal is to keep you informed on trends in the Tampa real estate marketplace using the latest technology and statistics while providing WORLD CLASS SERVICE, PERIOD.Regards,Mark And Sam Wells, Lic Florida Realtorshref="http://www.jobwellsdone.com/" href="http://www.markandsamwells.com/"

Legislature 2006: Let the games begin

Legislature 2006: Let the games begin

Florida Association of Realtors® (FAR) President Mike Dooley, a broker with Illustrated Properties in Hobe Sound, and President-Elect Nancy Riley, a broker with Coldwell Banker Residential Real Estate Inc. in St. Petersburg, will be in Tallahassee tomorrow for the opening of the 2006 legislative session.

Among the legislation FAR supports on behalf of its nearly 155,000 Florida Realtors, and millions of property owners and prospective homeowners, are bills to allocate all the funds generated by the William E. Sadowski Housing Act to workforce housing programs -- $939.5 million for this coming fiscal year -- and remove the cap on spending for next year.

FAR also supports legislation that, under certain circumstances, would allow owners of homesteaded property to carry a portion of the tax benefits they receive under the Save Our Homes amendment to a newly-purchased home. A complete list of FAR legislative initiatives will be available tomorrow on Planet Realtor. (http://planetrealtor.com).
© 2006 FLORIDA ASSOCIATION OF REALTORS®

Largo Florida Real Estate Cell : (727) 744-6821 or (727) 744-6822Our goal is to keep you informed on trends in the Tampa real estate marketplace using the latest technology and statistics while providing WORLD CLASS SERVICE, PERIOD.Regards,Mark And Sam Wells, Lic Florida Realtorshref="http://www.jobwellsdone.com/" href="http://www.markandsamwells.com/"

30-year mortgage rates fall for 2nd week

WASHINGTON -- March 3, 2006 -- Rates on 30-year mortgages edged down slightly this week, the second consecutive decline, according to a nationwide survey of rates.

Mortgage giant Freddie Mac reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.24 percent this week, down from 6.26 percent last week.

The 30-year mortgage declined for three straight weeks at the beginning of the year, then posted four straight increases, hitting a high for this year of 6.28 percent three weeks ago.

Analysts noted that all of the changes have been very small. They forecast that moves for the rest of the year were likely to be modest also as long as the Federal Reserve does not feel the need to push interest rates up more aggressively to fight inflation.

"Our forecast calls for rates on 30-year fixed-rate mortgages to increase about one-quarter of a percentage point by the end of the year," said Frank Nothaft, chief economist for Freddie Mac.

If that forecast proves accurate, it would mean 30-year rates would be at 6.5 percent by December. Other analysts think that rates could go as high as 7 percent by the end of this year.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, averaged 5.89 percent this week, unchanged from last week.

One-year adjustable rate mortgages edged up slightly to 5.34 percent from 5.32 percent last week.

Rates on five-year hybrid adjustable rate mortgages edged up to 5.97 percent this week, from 5.96 percent last week.

The mortgages rates do not include add-on fees known as points. The one-year adjustable rate mortgage had a nationwide average fee of 0.8 point last week. The other three mortgage categories carried nationwide average fees of 0.6 point.

A year ago, 30-year mortgages averaged 5.79 percent, 15-year mortgages stood at 5.33 percent, one-year adjustable-rate mortgages were at 4.14 percent and five-year hybrid adjustable rate mortgages averaged 5.17 percent.

On the Net: Freddie Mac: http://www.freddiemac.com

Largo Florida Real Estate Cell : (727) 744-6821 or (727) 744-6822Our goal is to keep you informed on trends in the Tampa real estate marketplace using the latest technology and statistics while providing WORLD CLASS SERVICE, PERIOD.Regards,Mark And Sam Wells, Lic Florida Realtorshref="http://www.jobwellsdone.com/" href="http://www.markandsamwells.com/"

UF: Florida consumer confidence down in February

UF: Florida consumer confidence down in February
GAINESVILLE, Fla. -- March 1, 2006 -- Florida’s consumer confidence fell eight points in February to 87, reflecting pessimism about higher gas prices and rising interest rates, University of Florida economists report.

The drop in confidence was broad-based, with declines in all five components of the index. The largest decrease was in expectations about U.S. economic conditions over the next five years, which plummeted 11 points to 79. Perceptions of U.S. economic conditions over the next year dropped eight points to 78. Perceptions of personal finances now compared with a year ago fell seven points to 81. Perceptions as to whether it is a good time to buy big-ticket items, such as cars and major appliances, also declined seven points to 102. Finally, expectations about personal finances a year from now dipped five points to 94.

“We had been expecting a decline in confidence for the past couple of months and it finally came in February,” says Chris McCarty, director of the survey research center at UF’s Bureau of Economic and Business Research. “Although there have been some positive aspects to the economy recently, there have been some things looming that negatively impact the consumer.”

The biggest factors are the increase in gas prices, which now appear to be here to stay for some time, and rising interest rates, McCarty says.

“Higher interest rates have already begun to affect housing sales, and perhaps more importantly for the consumer, opportunities for refinancing and home equity loans,” McCarty says. “Interest rates are now to a point where it does not pay for many consumers to refinance or extract equity. In addition, the increase in the value of homes has been slowing substantially in several Florida markets. This effectively removes what had been a major source of spending power for consumers.”

Little difference is apparent by age or income, a breakdown of the index reveals. For example, despite clear gains in the stock market during February, including a Dow index above 11,000, consumers earning more than $30,000 a year reported a seven-point decline in perceptions of personal finances. Some of the drop may stem from consumers starting to figure their 2005 taxes.

Because there was no last-minute fix by Congress, six times more households this year than last year may qualify to pay the Alternative Minimum Tax (AMT), which can mean a dramatically higher tax bill, McCarty says. Most people likely were unaware of that until they started tax preparation for 2005. As many as 15 percent of returns may qualify for the AMT this year, versus less than 3 percent last year.

“Moving forward we do not expect confidence to rise much over the next several months, if at all,” he says. “In all likelihood it will go lower as gas prices continue to rise and the effect of rising interest rates and the subsequent cooling of the housing market are fully realized.”

The research center conducts the Florida Consumer Attitude survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for February was conducted from 491 responses. The error rate is plus or minus 5 percent.

Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for the year. The value of the index is in comparing changes over time rather than looking at an isolated month.
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Florida's housing market shows price gains in January

Florida's housing market shows price gains in January
January existing-home sales ease, says NARORLANDO, Fla. -- Feb. 28, 2006 -- Coming off several years of blistering home sales at a record pace, Florida's housing sector followed the national trend in January and showed signs of some market adjustments, according to the Florida Association of Realtors® (FAR). Still, the statewide median sales price for existing single-family homes last month rose 21 percent to $248,600; a year ago, it was $205,100.

Housing industry analysts nationwide noted it may take a while for home price growth to cool, following a long period of short supply and sellers accustomed to exceptional price gains. In January 2001, the statewide median sales price for single-family homes was $115,800, which means a gain of about 114.6 percent over the five-year-period, according to FAR records.

Realtors from across the state report that more homes are available for sale, improving what had been tight inventories in many markets. Statewide, sales of single-family existing homes totaled 12,815 in January compared to 15,745 homes sold a year ago for a 19 percent decrease.

2006 FAR President Mike Dooley notes that the market is coming into better balance between buyers and sellers. "For years, many areas in Florida reported tight inventories of homes available for sale," he says. "Now that buyers are seeing more choices, it’s even more important for both buyers and sellers to seek advice from real estate professionals. With the expertise and services that Realtors bring to the table, they help to bridge any differences between buyers and sellers that may arise during the sales process and work to keep the transaction going smoothly for everyone involved."

In December 2005, the national median sales price for existing single-family homes was $209,300, up 10.8 percent from the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $548,430 in December; in Maryland, it was $311,914; in New York, it was $279,900; and in North Carolina, the statewide average resales price was $209,810.

Sales of existing condominiums in Florida also decreased last month, with a total of 4,456 condos sold statewide compared to 5,461 in January 2005 for an 18 percent decline, according to FAR. The statewide median sales price for condos rose 12 percent to $221,300 last month; a year ago, it was $197,300. NAR reported the national median existing condo price was $228,100 in December 2005.

This release marks the first time that FAR has reported monthly condo sales in the state's metropolitan statistical areas. In conjunction with the University of Florida Real Estate Research Center, FAR began compiling data on closed condo sales for comparison purposes in 2005.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.15 percent, up from the average rate of 5.71 percent in January 2005. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s larger markets, the Orlando Metropolitan Statistical Area (MSA) reported higher existing condo sales last month but slower sales of single-family homes. A total of 439 condos changed hands in January compared to 185 condos a year ago -- a dramatic increase of about 137 percent. The market's median sales price for condos rose 42 percent to $185,100; a year ago, it was $130,400.

Beverly Pindling, president of the Orlando Regional Realtor Association and broker- partner/sales training manager with Orlando Real Estate Professionals, says condos offer an affordable housing choice for many buyers, as well as a more maintenance-free lifestyle.

"The Orlando area offers exciting options for residents," she says. "There are job opportunities here, a new medical school is coming and, compared to many places in the north, the cost of living here is lower. Orlando is a convenient, comfortable place to work, shop, live and obtain an education."

Among the state’s smaller markets, Ocala reported higher sales of existing single-family homes in January, with a total of 428 homes sold compared to 378 homes a year ago for a 13 percent boost. The median sales price rose 39 percent to $166,200; a year ago, it was $119,600.

Wilbur Van Wyck, president of the Ocala/Marion County Association of Realtors and broker-owner of Coldwell Banker Riverland Realty in Dunnellon, says people are drawn to the area's scenic beauty, relaxed lifestyle and friendly community. "People are coming up from South Florida where traffic and living conditions are much more congested," he says. "This area is gorgeous and it's a great place for retirees to live."

© 2006 FLORIDA ASSOCIATION OF REALTORS

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NAR's Public Awareness Campaign's Code of Ethics TV spots out today

NAR's Public Awareness Campaign's Code of Ethics TV spots out today
ORLANDO, Fla. -- March 6, 2006 -- For nearly 100 years, Realtors® have subscribed to one of the oldest codes of ethics for trade groups in the country. The National Association of Realtors® (NAR) explains how its Realtor members’ adherence to that code serves and protects the public with today's debut of advertising spots called, "Someone You Can Trust."

These ads are new to this year's Public Awareness Campaign from NAR, now in its ninth season. The spots highlight the honesty and integrity Realtors bring to each and every transaction, and also specifically mention the quadrennial ethics training requirement every Realtor must complete.

In many ways, consumers today are just like those at the turn of the last century -- they deserve and demand honesty, integrity and commitment from the professionals who serve them. Today’s home buyers and sellers, however, confront real estate realities never envisioned 100 years ago, with disclosure requirements, environmental regulations, and an expanding universe of mortgage and financing options. More than ever, homebuyers and sellers need to know that their real estate professional is someone they can trust.

Your buyers and sellers can read more about the Code of Ethics by going to www.realtor.org/codeofethics.

This year, NAR will increase it commercials played in primetime TV, garnering the most primetime ever for the campaign. NAR commercials will air in such favorite shows as: 20/20, CSI Miami, Cold Case and Extreme Makeover, Home Edition.

In addition to increasing primetime in 2006, NAR will look to add sports as a major new category to its TV buy. Later this month, NAR will be a significant advertiser in the NCAA Basketball Tournament on CBS. Also, radio ads for NAR's 2006 campaign will air on ABC and CBS networks, ESPN Radio Major League Baseball, and on XM Satellite Radio's Public Radio Channel in award-winning journalist Bob Edwards' show.

NAR's Public Awareness Campaign TV and radio ads will be seen and heard for a full nine months, from February through October.

© 2006 FLORIDA ASSOCIATION OF REALTORS

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Sell yourself -- then the property

Sell yourself -- then the property
SILICON VALLEY, Calif. -- March 6, 2006 -- Here are five rules for building a successful sales business that were shared with luxury homebuilders by Carmine Gallo, a communications trainer based in Silicon Valley, Calif. His observations also may help real estate professionals be more successful.

• Brand yourself. We all represent a brand -- ourselves. How you talk, walk, and look reflects on that brand. Do you come across as trustworthy, confident and competent?

• Share your passion. Donald Trump said if you don't have passion, you don't have energy, and if you don't have energy, you have nothing.

• Stand tall. When communicating the message behind your brand, stand or sit tall, head up, and maintain strong eye contact 80 percent of the time. Have a warm, agreeable smile on your face.

• Dress the part. If your shoes are scuffed and your clothes are ill fitting, it tells your customer that you don’t pay attention to the details.

• Stay current. It makes you appear smart and that persuades people you deal with to have confidence in you.

Source: BusinessWeek Online, (03/02/06)

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Former Homestore exec pleads guilty

Former Homestore exec pleads guilty
WEST LAKE VILLAGE, Calif. -- March 6, 2006 -- Peter Tafeen, the former executive vice president of business development for Homestore Inc., which operates the official Web site of the National Association of Realtors (NAR), Realtor.com, pleaded guilty Friday to one count of securities fraud in connection with a scheme to inflate the company’s online advertising revenues. He faces a maximum prison sentence of 10 years.

The remaining defendant in the case, Stuart Wolff, who was Homestore’s chief executive officer, is scheduled to go to trial on March 28. Wolff has been charged with 19 counts, and, if convicted, faces a maximum possible sentence of 185 years in prison.

By fraudulently inflating Homestore's short-term revenues, Tafeen helped make it seem that Homestore stock exceeded analysts' expectations, thus boosting its value. He's the 10th former Homestore executive to plead guilty.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

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Counties get home-buying aid

Counties get home-buying aid: Home buyers in 13 Florida counties, including Broward and Miami-Dade, affected by last year's hurricanes could get some financial help
TALLAHASSEE, Fla. -- March 6, 2006 -- Eligibility rules for a statewide program providing financial assistance to Florida residents wanting to buy a home are being loosened to help those in Miami-Dade, Broward and 11 other counties affected by last year's hurricanes.

The Florida Housing Finance Corporation, which administers state and federal housing programs, said the program -- usually restricted to first-time home buyers -- will now allow any prospective home buyer to apply for 30-year, fixed-rate mortgages through the state's housing bond program.

It is making available $77 million statewide.

"We've had two seasons of four hurricanes per season, which is unprecedented in the history of the state," said Steve Auger, the corporation's executive director.

"That's creating a lot of extra challenges for homeowners looking for affordable housing."

The $77 million is being made available through the Single Family Mortgage Revenue Bond program.

The Gulf Opportunity Zone Act, approved by Congress following last year's hurricane season, relaxed some rules to qualify in those areas affected by the storms.

It is waiving the requirement that participants be first-time homebuyers and raising purchase price and income limits.

In Broward and Miami-Dade counties, the income ceiling for a one- or two-person household will be $63,060; the purchase price of a home can be no greater than $405,263.

The 13 Florida counties targeted by the act are Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Lucie.

Local housing finance authorities, such as the Miami-Dade Housing Finance Authority, also fund their own bond programs that are eligible for the same waivers under the act.

"This is fantastic news for Dade County because we do have a crisis in housing, and this will be one of the ways to alleviate it," said Miami Dade County Mayor Carlos Alvarez.
Copyright © 2006, The Miami Herald, by Casey Woods. Distributed by Knight Ridder/Tribune Business News.

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Surge in industrial sales defy boring image

NEW YORK -- Jan. 31, 2006 -- More commercial property investors are taking a liking to industrial real estate. The segment is dominated by warehouses and distribution facilities but also includes research and development (R&D) buildings and "flex" space that includes both offices and industrial uses.

Improving fundamentals in the sector have sent development and investment into the stratosphere in some markets. Investment activity has also been on the increase thanks to sale-leaseback deals in which firms sell their facilities and then lease them back from the acquiring company.

Real Capital Analytics reports that approximately $33 billion of industrial space changed hands in 2005. Over that same 12-month span, the average asking price for an industrial building increased 11 percent to $62 per square foot with space in downtown markets going for substantially more.

"There's no question that industrial real estate is very strong right now; it's a great market to be operating in," says First Industrial Realty Trust President and CEO Michael Brennan. His real estate investment trust (REIT) owns and manages more than 100 million sq. ft. of industrial properties nationwide, including $2.2 billion of assets his company acquired in just the past six months.

Source: Investor's Business Daily, Joe Gose (01/30/06)

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FAR offers $106,000 in scholarship awards

ORLANDO, Fla. -- Jan. 31, 2005 -- Mention money and most people listen. So spread the word to your buyers and sellers -- especially those with children who are high-school seniors this year -- that the Florida Association of Realtors®’ (FAR) is making more money available to the student winners of its 2005-2006 Scholarship/Essay Contest for High School Seniors. FAR has upped the ante to a total of $106,000 in scholarship funding this year. By entering the essay contest, a student could win up to $10,000 to help pay college costs.

And entering is easy. Students write a typed, double-spaced essay -- 500 words or less -- on the topic, “How Does a Realtor Professional Benefit the Community?” This topic allows students the freedom to write about the wide range of Realtor professionals who work in a variety of fields, including residential brokerage, commercial brokerage, industrial and office brokerage, farm and land brokerage, real estate appraising, property management, land development and real estate counseling, to name just a few of the general specialties. Or essays may address such points as the benefits of homeownership to society, or to families on a personal level, or how the selling of commercial real estate encourages economic growth.

This is the sixth year for FAR’s scholarship program, which benefits students from across the state. Here's how the prize money will be awarded: Students winning first place in each of the Association's 13 districts in the state each will receive a $5,000 award; and second-place winners each will each receive a $1,500 scholarship award. This year, for the first time, students also will be recognized for winning third in each district with a $500 scholarship award. The 13 top district-winning essays will go on to compete to win three $5,000 FAR scholarships on the statewide level, for a total of $106,000 in scholarship awards. All essays, along with an official Essay Cover Form, must be postmarked no later than March 17, 2006, and mailed to the Florida Association of Realtors, 7025 Augusta National Drive, P.O. Box 725025, Orlando, FL, 32872-5025.

Tell students to check with the high school guidance office to obtain an application kit and essay cover form for FAR’s 2005-2006 Scholarship/Essay Contest for High School Seniors. Or anyone -- students, Realtors, teachers and parents -- can go to the media section of FAR’s Media Center Web site, (http://media.living.net) to download the scholarship/essay contest application kit, official cover form and list of FAR District Vice Presidents.

FAR’s statewide scholarship awards program is open only to high school seniors who reside in the state of Florida and plan on continuing their education at a college, university, technical school or other institution of higher learning. Children of licensed real estate practitioners are not eligible for contest entry; nor are children whose parents are employed by any local Realtor board/association or by the Florida Association of Realtors.

© 2006 FLORIDA ASSOCIATION OF REALTORS

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Save money on taxes by hiring spouse

WASHINGTON -- Jan. 31, 2006 -- Self-employed practitioners may want to consider hiring a spouse or partner to help with their business, even on a minimal basis, for the tax advantage this structure can provide.

The U.S. Internal Revenue Service allows self-employed people to hire their spouse or partner for business assistance, pay the person a salary (which can be a nominal amount, as low as $250 per month), and then reimburse the employee for all family medical expenses, according to a recent report in a Greater Capitol Area Association of Realtors®’ member newsletter.

Under the plan, business owners can write off reimbursement paid to their spouse or partner as a business expense. Most families can save between $2,500 and $4,500 on their taxes this way, according to Linda de Marlor, president of Tax-Masters Inc.

Medical expenses include health care premiums, long-term care insurance, over-the-counter medicine, first-aid supplies, elective surgeries and dental expenses such as orthodontics, de Marlor notes.

Practitioners interested in taking advantage of this plan for 2006 must have it in place before Dec. 31.

Source: Realtor® Magazine Online, Michele Lerner, Jan. 30, 2006

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Governor Bush proposes economic incentives

TALLAHASSEE, Fla. -- Jan. 31, 2006 -- How shall the state grow? Gov. Jeb Bush announced his favored economic development incentives, part of his proposed FY 2006-2007 budget, yesterday. He has requested a total investment of $630 million.

“This significant state investment in Florida’s economy will create new jobs and foster growth of technology industries that yield high returns,” says Bush. “Hard-working Floridians have created a booming economy, and we must capitalize on Florida’s surplus of tax revenue by investing in once-in-a-lifetime opportunities that will grow our economy for the future.”

Bush's recommendation includes:

• $75 million in tax credits for the new Florida Capital Formation Program. The program will offer tax credits to attract early stage venture capital for start-up companies in Florida. Private investors and lending institutions use the tax credits as an incentive to raise capital for investment in emerging enterprises in Florida.

• $50 million to expand Florida’s Quick Action Closing Fund that allows the state to offer a cash incentive to companies considering Florida as the location for their business. The fund helps Florida compete with other states and nations to attract high-wage, professional jobs.

• $17 million to support business development and increase commercial space transportation.

• $200 million to create and fund the 21st Century Technology, Research and Scholarship Enhancement Act

• $100 million to create and expand Centers of Excellence, which allow state universities and their research partners to attract public and private dollars to support emerging research and development projects.

• $100 million to create the World Class Scholars Program, which attracts leading researchers to Florida universities. Funds may be used for incentives, including building labs, providing high-tech equipment or funding support staff.

• $55 million to secure Florida’s position as a leader in the Space and Aeronautics industry; $35 million to recruit the replacement for the Space Shuttle -- the Crew Exploration Vehicle; and $3 million in tax relief for the space and defense industry.

• $250 million to create the Florida Innovation Incentive Fund, designed to enable Florida to take advantage of unique opportunities that will yield a significant return for the taxpayer in the long-term.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

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Consumer confidence rises gain

NEW YORK -- Jan. 31, 2006 -- Things look good: Consumer confidence in the U.S. rose for the second month in a row, going up 2.5 points since December.

The Conference Board Consumer Confidence Index had also increased in December. The Index now stands at 106.3, up from 103.8 in December. The Present Situation Index rose to 128.4 from 120.7. The Expectations Index, which considers opinions about the economy six months in the future, declined to 91.5 from 92.6 last month.

"Consumer confidence is now at its highest level in more than three years (June 2002, 106.3)," says Lynn Franco, director of The Conference Board Consumer Research Center. "This month's increase was driven solely by consumers' assessment of current economic conditions, especially their more positive view of the job market. But while consumers rate current conditions more favorably than they have in more than four years (Aug. 2001, 144.5), the improvement has not translated into greater optimism about the near-term future. In fact, the gap between consumers' assessment of current conditions and their expectations remains wide."

Overall, consumers' assessment of present-day conditions was more favorable in January than in December. Consumers claiming conditions are "good" increased to 25.8 percent from 24.4 percent. Those claiming conditions are "bad," however, also increased to 16.0 percent from 14.9 percent. Labor market conditions continued to perk up. Consumers saying jobs are "plentiful" rose to 26.9 percent from 23.3 percent, while those claiming jobs are "hard to get" decreased to 20.3 percent from 22.5 percent.

Consumers' outlook for the next six months was somewhat more subdued in January than in December. Those expecting business conditions to worsen increased to 10.5 percent from 9.1 percent, while those expecting business conditions to improve declined to 17.7 percent from 18.4 percent.

The outlook for the labor market was mixed. Those expecting more jobs to become available in the coming months edged down to 13.6 percent from 14.4 percent in December, while those expecting fewer jobs declined to 15.5 percent from 17.7 percent. The proportion of consumers anticipating their incomes to increase in the months ahead eased to 19.8 percent from 21.3 percent last month.

The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS, a custom research company. The cutoff date for January's preliminary results was January 24.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

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Tips for selling a house that won't sell

MIAMI -- Jan. 24, 2006 -- Young buyers like a pretty house, so if a house won’t sell, Mark Nash, author of 1001 Tips for Buying and Selling a Home, urges home sellers to make these simple cosmetic updates.

• Expose hardwood floors and buff them until they shine. Nash, who sells homes in the Chicago area, says an increasing number of younger buyers dislike homes with wall-to-wall carpeting. ''It's amazing how often I hear from young clients who won't even look at a place unless it has hardwood floors,'' he says.

• Remove antiquated furnishings. Many young buyers have eclectic tastes. Get rid of matched sets of look-alike furniture from the ’70s and ’80s then rearrange what’s left to make the house feel more contemporary.

• Take down your old draperies and light fixtures, including old-style track lightings. Nash says outdated lighting and heavy, elaborate draperies (the kind with swags and valances) turn off young buyers.

• Remove wallpaper. Young buyers are unwilling to purchase any home that needs wallpaper removal—it’s just too daunting.

• Repaint your walls. Nash encourages home sellers to stick with neutrals or calm earth tones, like a light sage green. Using bold tones can be very tricky, he cautions. “I call these ‘commitment colors.’ Chances are good that your buyers won't like them as much as you do,'' he says.

Source: The Miami Herald, Ellen James Martin (01/22/06)

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Tax laws save on the dotted line

NORTH PALM BEACH, Fla. -- Jan. 24, 2006 -- The major new laws of 2005 were prompted by Mother Nature.

The violent hurricane season wreaked havoc on millions of coastal residents, motivating lawmakers to enact measures to help out the storm victims. In the process, they also added some storm-related breaks for the rest of the country's taxpayers.

The Internal Revenue Service also issued a couple of rulings that many taxpayers will welcome, such as increased mileage deduction rates and an easier way to put off the inevitable task of filing.

But other changes, most notably the new tax definition of a child, will cause some filers extra effort and potentially costly headaches.

There's also one welcome change that's due simply to the calendar. This year, April 15 falls on a Saturday, pushing the filing deadline to the next business day, Monday, April 17.

Now that you have all that spare time, let's put it to use by looking at 10 tax changes that could make a difference on your 2005 return and to your 2006 tax planning.

Tax help for hurricane victims

There are myriad hurricane-related new tax provisions to help the millions of 2005 storm victims. The changes include ways for people to cover their immediate living expenses, pay longer-term recovery costs and take advantage of other benefits on their tax returns.

The measures apply to specially designated areas: the Gulf Opportunity, or GO, Zone, the Rita GO Zone, the Wilma GO Zone and separate disaster areas for these three hurricanes, affecting residents in Alabama, Florida, Louisiana, Mississippi and Texas.

The various new laws and geographic eligibility standards mean that storm victims will have to do extra work to make sure they find and utilize tax benefits specific to their situations. The Internal Revenue Service has a Web page with details, but here are some of the major provisions and how they could help.

1. Easier access to retirement money

People who need to tap their retirement accounts to cover post-hurricane expenses can take out the money without paying the normal early distribution penalty. This option is available to victims of hurricanes Rita, Wilma and Katrina, says Mark Luscombe, a principal analyst with the tax-research, publishing and software firm CCH Inc., of Riverwoods, Ill.

Eligible taxpayers can withdraw up to $100,000 total from all of their retirement plans, annuities or IRAs. Accountholders still will have to pay taxes due on any distributions of tax-deferred money and earnings, but the 10-percent charge usually assessed when someone younger than 591⁄2 takes out retirement money is waived.

As for those taxes, Luscombe says the law offers taxpayers the option to recover them by repaying the early distributions into a qualified plan within three years. In this case, you would file an amended return when you repay the retirement money and get back the taxes you paid.

If you can't repay the money, you can spread any tax due over a three-year period instead of having to come up with all of it this year.

The effective date for such penalty-free distributions differs, depending on which hurricane necessitated the withdrawal of the funds, so check with the IRS or your personal tax adviser to make sure you qualify. But in all cases, hurricane victims have until the end of 2006 to take advantage of this distribution provision.

2. Larger casualty loss deduction

Many hurricane victims will rely on existing tax provisions that will allow them to deduct their losses. This tax break helps, but it also generally limits the deduction to the loss amount that is more than 10 percent of the taxpayer's adjusted gross income plus $100. Tax-law changes now eliminate those limits for taxpayers whose losses are attributable to hurricanes Katrina, Rita or Wilma. For them, the entire amount of unreimbursed personal property losses is fully deductible.

3. Education breaks for storm-affected students

Persons who attend college in the federally designated Gulf Opportunity Zone, which encompasses parts of Alabama, Louisiana and Mississippi, can now get double the standard Hope or Lifetime Learning credit amounts. This could provide up to $3,000 for the Hope Credit. The Lifetime benefit is expanded from 20 percent to 40 percent of eligible costs up to $10,000, meaning this credit could reach a maximum $4,000.

Even better, says Luscombe, this added credit amount is not restricted to specific storm dates. The increase applies to all qualified costs in 2005 and 2006.

"So someone at Tulane who hasn't been able to go back to school can use the larger credit to pay the tuition applied to the first part of the [2005 school] year," says Luscombe. "This is aimed at encouraging persons to go back to those [storm-affected] schools, so it applies through 2006 to give them incentive to go back."

In addition to providing tax considerations for individuals directly affected by the storms, several new laws also offer tax breaks for persons who came to the aid of hurricane victims.

4. Additional personal exemption

Most Hurricane Katrina evacuees initially went to public shelters, but many soon found themselves welcomed into private homes nationwide. If you made a place in your residence for someone who lost their home in the storm or subsequent flooding, you might be eligible for additional personal exemptions.

"Individuals who put up a displaced person at their residence for at least 60 consecutive days can get an added exemption of $500 per person," says Luscombe. You can claim exemptions for up to four persons, giving you a potential maximum benefit of $2,000.

Luscombe says the hurricane guest doesn't have to be a stranger.

"This can also apply to putting up a relative, as long as it's someone who's not a dependent of the taxpayer," he says. That means you couldn't claim it for your child who was living in New Orleans, while attending school there, and who returned home in the wake of Katrina. But a sister or brother, or aunt or other relative could count toward the exemption, says Luscombe.

This exemption is also available in 2006. However, you cannot claim more than $2,000 total for both years. So if you claim four displaced individuals on your 2005 return and they continue to live with you for several months this year, you cannot take the exemptions again on your 2006 return.

If you are confident you will meet the added exemption requirements in 2006 and they would be more worthwhile on that tax return instead of your 2005 one, you might consider waiting until next year to claim this benefit.

5. Enhanced donation and driving breaks

In response to the outpouring of hurricane-related charitable gifts, several tax-law changes in this area were enacted last year.

In most cases, you can't contribute more than 50 percent of your adjusted gross income in a tax year, meaning if your AGI is $30,000 you can only deduct gifts up to $15,000 on a return. You can carry forward any excess into future tax years.

This doesn't affect most of us, but wealthier donors sometimes run into this donation-deduction limit. These filers also find that their total deductions, charitable and all other categories, are reduced because of their higher incomes.

Katrina tax legislation removes both of these charitable-giving restrictions on gifts made between Aug. 28 and Dec. 31. The best part for donors able to give substantial amounts is that the limits aren't restricted to Katrina-connected donations. They are removed for any gift, regardless of the receiving organization's designated cause. So if you made substantial donations in the latter part of 2005, make sure you take the full deduction.

Another new law substantially increases the charitable mileage deduction, normally 14 cents a mile. If you used your vehicle in connection with Katrina relief services last year, you can deduct qualified miles driven between Aug. 25 and Aug. 31 at 29 cents a mile, and at 34 cents per mile for Katrina-related miles on Sept. 1 through Dec. 31. The higher-than-normal rate continues into 2006 at 32 cents per mile.

In both years, the increased deduction rates apply only to miles driven in connection with Hurricane Katrina relief services. Any other transportation for other charities must be calculated at only 14 cents per mile.

In addition to the charitable mileage changes, there are a couple of other auto-related tax laws that might be of note on your 2005 and 2006 returns.

6. Accounting for car contributions

Suspecting that automobile donors inflated the price of their gifts to charity, and thus overstated the associated tax deductions, Congress last year mandated tougher vehicle-donation rules.

Now when you give an auto (or boat or other motorized vehicle) to a charity, you can no longer automatically claim its fair market value as your deduction if that amount is more than $500. Instead, your deduction is limited to the actual amount the charity received when it sold the auto.

There are some exceptions that would allow you to claim the fair market amount. If, for instance, the charity uses the car, say, to deliver meals to homebound individuals, or sells it at a bargain price to a needy person, you then can claim the fair market value.

The key is to find out from the charity exactly what is planned for your donation. You'll also have to get written acknowledgement of your gift, with the price noted, and attach it to your tax return. In the past, you simply had to hold onto such receipts in case the IRS later questioned the gift.

7. Environmentally friendly auto tax breaks

The tax deduction for buying a clean-fuel car was supposed to drop to $500 last year. The law was changed, however, maintaining the deduction at the $2,000 level for 2005 returns. If you bought one of these vehicles, be sure to claim your deduction for it on the long Form 1040.

The news for environmentally conscious drivers gets even better for 2006.

Purchase a clean-fuel vehicle this year and you'll get a more-valuable tax credit, ranging from $250 to $3,400. The exact amount will be based on a complicated formula involving the vehicle's fuel economy and its total expected lifetime fuel savings. The IRS is working with auto manufacturers to certify specific autos, such as the popular hybrids, and calculate precise credit amounts.

One drawback of the credit is that its full value applies only to the first 60,000 eligible vehicles each automaker produces. That means credits for especially popular hybrid cars or trucks could be quickly gone. If you don't get one of the initial models, you'll receive a reduced credit.

8. Uniform definition of a child

There are several tax breaks that pertain to children. Taxpayers often found the different requirements to claim each break was confusing. So the IRS developed a uniform definition of a child for tax purposes.

In essence, says Luscombe, where the IRS found a broader definition of a child in any tax break, it applied it to all of the child-related benefits.

"While the standardization was generally supposed to be helpful, and it is more generous than it had been, they also changed some of the tests, and that could pose problems for some filers," says Luscombe.

The biggest hurdle is that what had been primarily a support test now is primarily a relationship test. This has led to some people who previously were able to claim child-related tax breaks losing those benefits.

"Take an unmarried couple that has a household that includes a child that is the biological child of only one of the adults," says Luscombe. "In addition, one of the adults is the sole wage earner for the household.

"Under the previous support test, the wage earner could claim head of household status. But now, using the relationship test, the exemption would apply to the biological parent in the house, who in this case has no earnings.

"And the other adult, who does have income, now loses the $3,200 exemption."

If you have a similar living arrangement and share custody with another parent or live with several adults who contribute to a child's upbringing, read the new definition carefully to make sure you and other taxpayers involved in the child's care take full and appropriate advantage of the new definition.

9. Increased IRA contribution amounts

Thanks to a tax-law change enacted years ago, contribution limits on retirement accounts have been steadily increasing. For 2005, you can put up to $4,000 into an IRA. Persons age 50 and older can contribute an added $500.

The $4,000 limit remains in 2006, but older filers this year can contribute an added $1,000.

10. Changes in the filing process

Finally, changes in ways to file your 1040 will make some computer-competent taxpayers happy, upset those who preferred a phone to a PC and delight the millions of procrastinators who don't want to think about taxes until they absolutely have to.

The IRS again is offering some taxpayers the opportunity to prepare and e-file their returns at no charge through the Free File Alliance. Nineteen software companies have made their services available at the IRS Web site, and taxpayers who make $50,000 or less should be able to find at least one company that will let them file for free.

The IRS has, however, done away with its TeleFile program that allowed taxpayers with less-complicated returns to file over the phone. These filers will now have to go back to pen and paper or try the Free File program, for which they are automatically eligible.

If you just can't get your taxes done, whether online or on paper, for free or by paying a professional, it's easier this year to delay the task. Now, instead of filing a request in April for a four-month extension and then another in August seeking two more months, the IRS says you just have to ask once.

Form 4868, used previously to make the first extension request, now will give you an automatic six-month delay. File it and you don't have to worry about your 1040 until Oct. 16.

One thing hasn't changed, though. Form 4868 will only get you more time to file your tax form. If you owe Uncle Sam money, you still have to come up with that amount or a close approximation of it by April 17 or face possible penalties and interest.

In addition to the changes wrought by these 10 laws, many pre-existing laws have had new dollar amounts added. See "Old tax laws remain, but effective amounts change."

© 2006 Bankrate.com

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SCHOOL IMPACT-FEES

The Home Builders Association of Metro Orlando's lawsuit against Osceola County challenged the way it calculated an increase in the school impact fee. In May 2004, the county had raised the fee 234 percent to $9,708 per single-family home from $2,828. However, in a win for Osceola County, Circuit Judge R. James Stroker upheld the basic methodology in a September ruling, though his final ruling in December orders the county to credit builders $2,100 per home for revenue tied to certificates of participation. The credit is equivalent to $10 million of the $45 million that has been held in escrow since the lawsuit was filed. Now that the case has been resolved, $35 million -- which is the difference between the old and new fees -- can be released from escrow and put toward school construction projects. Source: Orlando Sentinel (FL) (01/22/06) P. K1; Aradillas, Elaine© Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

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Latest strategy for selling condos in S. Florida -- 'human directionals'

SOUTH FLORIDA -- Feb. 1, 2006 -- Each weekend, they sit on bus benches, holding arrow-shaped signs on their laps. Or they stand, smiling and waving alongside busy roads, holding the signs that direct motorists to nearby businesses.

Sometimes called "human directionals," they are young, enthusiastic and a favorite advertising tool of condo converters.

"They bring us quite a bit of traffic. They catch peoples' eyes," said Teresa Alvarez, sales manager for St. Andrews, a 332-unit complex on Pembroke Road at Flamingo Road in Miramar.

"It's amazing how much traffic they generate," agreed Virginia Bosch, sales agent for the Sea Breeze, a 20-unit building at 1405 Miami Road in Fort Lauderdale.

Sometimes, companies use teenagers because more traditional methods of attracting customers, such as placing temporary signs in median strips on weekends, are illegal.

"We had flags and signs and thought we were complying with the code. But the city of Miramar said it was a violation so we took them down," Alvarez said.

Although various businesses use them, competition in the condo market is forcing converters to find new ways of getting the word out to potential buyers.

Finding enthusiastic, smiling people to hold the arrows isn't that difficult.

Bosch uses high school girls, all friends and relatives, to stand on the 17th Street Causeway and on Federal Highway in Fort Lauderdale.

"It's not like they're out there working for a stranger," said Ernesto Del Monte, president of BCD Developers in Miami Lakes, which is converting the Sea Breeze.

"They are more enthusiastic knowing they are helping out a relative. It's better than someone who just stands there. People come in just because of the girls."

People like cosmetics distributor Sheila Ryan.

"I saw the girls with the signs and had some time. So I checked out the units, loved what I saw, went to get a cup of coffee and came back and put my money down," she said.

The teens are out every weekend, from 11 a.m. to 6 p.m. carrying arrows, answering questions from motorists and smiling at everyone.

Nicky Goicouria, 18, has been a sign holder for two months.

Bosch, the sales agent, "is my godmother," Goicouria said. "I'm helping her out, and besides, it's good money." She declined to divulge how much.

Goicouria, who attends high school in Miami, listens to music while working but plugs her iPod into only one ear so she can quickly respond to motorists.

"When people ask questions, I don't have time to pause because the [traffic] light might change," she said. "Every once in a while a jerk throws a rude comment, but I just smile. There's no point getting mad."

To help sell St. Andrews, Alvarez depends on Eventz Extraordinaire, a California firm, to supply people to carry arrows.

The firm currently puts 75 arrow-holding people on the streets every weekend in the tri-county area for 15 clients, mostly condo converters but also residential developers and cell phone companies.

"It's a unique way of marketing," said Mitch Dutia, Eventz's Florida vice president. "By placing people in uniform -- blue shirts and khaki pants -- and having them carry 71/2-foot signs shaped like arrows, we're giving our clients a way to grab the attention of drive-by traffic."

The firm calls its arrow-carriers "human directionals" and uses mostly college students, who earn $10 to $12 an hour.

"We pay them well, especially compared to McDonald's," he said.
© Copyright 2006, South Florida Sun-Sentinel, Joe Kollin, Jan. 31, 2006. Distributed by Knight Ridder/Tribune Business News.

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Too many flips back investors into tax corner

NORTH PALM BEACH COUNTY, Fla. -- Feb. 1, 2006 -- Flipping real estate is a popular strategy these days, but beware — the Internal Revenue Service is watching.

If anyone completes several real estate transaction in a short time, the IRS might consider the property transactions a business rather than an investment strategy, warns Lonnie Davis, a certified public accountant with the Philadelphia office of CBIZ Accounting, Tax and Advisory Services.

If that happens, instead of paying lower capital gains taxes, investors face paying ordinary income taxes, including self-employment tax. And they’ll be unable to perform like-kind exchanges.

What’s the rule of thumb?

"It's a facts-and-circumstances test," says Davis. "There's no rule of thumb that says: Buy three houses, you'll get capital gains; buy five, and you're a dealer-trader. The IRS looks at whether the activity is really a business.”

Davis urges people who buy and sell real estate to ask themselves these questions to avoid running afoul of the IRS:

How many properties have you bought and sold?
How often have you bought and sold them?
In terms of income, is it your primary business?

The IRS is looking to identify dealers because they put more money in the government’s coffers. "There's going to be a wake-up call for tens of thousands of people," says Mark Zilbert, broker-owner of Zilbert Realty Group in Miami.

Source: Bankrate.com, Kay Bell (01/03/06)

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Gov. Bush proposes tax giveback in final year

TALLAHASSEE, Fla. (AP) -- Feb. 1, 2006 -- Every homeowner would get a $100 check in the mail and see their property tax rates go down under a proposal Tuesday by Gov. Jeb Bush, part of $1.5 billion in tax breaks he said would help homeowners and businesses reeling from hurricane costs.

Bush also is calling for holding the back-to-school sales tax holiday every year, along with an annual break from taxes on hurricane supplies.

If lawmakers agree, Bush would end his tenure as governor as it started, giving money back to taxpayers.

''The purpose of it is to tell homeowners, 'Thank you for your hard work, thank you for your resiliency,''' Bush said.

The idea to send every homeowner and mobile-home owner $100 was actually proposed earlier in the year by legislative Democrats, who have generally opposed most of the Republican governor's $14 billion in tax cuts during the past seven years. Democrats have argued over the years that Bush-backed tax breaks have benefited wealthier people more than the average taxpayer.

But Democrats, outnumbered greatly by Republicans in the Legislature, have more recently said that if there are going to be tax cuts, they ought to at least go to the broadest cross-section of Floridians, and Bush said he was pleased to have a tax cut proposal that's at least partly bipartisan.

Some Democrats don't think there should be tax cuts at all this year, and some argued at least part of the money could be better spent on education or health care.

Rep. Ron Greenstein, D-Coconut Creek, supports Bush's $100 rebate idea.

''If you're going to play tax relief it should be broad-based,'' Greenstein said. ''Are there needs that might not be funded because we're giving (a tax cut) to the everyday Joe? Probably.''

Greenstein said health care -- particularly help for people who can't get health insurance -- is an area where the state needs to spend more money.

The one-time $100 rebate will amount to $500 million from the state's coffers.

Bush also will ask lawmakers to cut another $570 million with a 9 percent reduction in the property tax that the state requires local school districts to impose, a cut Bush said would save the average homeowner another $55 a year.

Florida learned late last year that it has plenty of money it can give back. State economists in November estimated tax collections will grow by $3.2 billion more than previously expected during the rest of this budget year and the new one beginning July 1.

Much of that is because of more robust sales tax collections than expected -- thanks in part to the rebuilding that occurred after four hurricanes in 2004 and more repairs in the wake of hurricanes Dennis, Katrina and Wilma last year.

''Florida's families and businesses fund our government, something people in Tallahassee lose sight of,'' Bush said.

Florida has offered a break from the state's 6 percent sales tax at back-to-school times in several recent years, but lawmakers have to pass a new law each year to do it. Bush proposed making the tax break an automatic every-year affair, along with a recurring annual sales tax break on hurricane supplies, which lawmakers also gave Floridians last year.

That would have the added purpose of pushing Floridians to better prepare themselves and their homes for future storms, and maybe save lives.

''We have got to create a culture of preparedness in our state,'' Bush said.

Lori Broadhurst of Gulf Breeze, near Pensacola, joined the governor at his announcement, and said last year's hurricane sales tax pushed her to get ready for storms this year -- something she didn't do before 2004's Hurricane Ivan.

With supplies being 6 percent cheaper during the break last year, ''It really was an incentive for us to prepare,'' Broadhurst said.

Republicans in the Legislature had already proposed a plan to exempt all items up to $5,000 from the sales tax during a few days in the summer. House Speaker Allan Bense, R-Panama City, supports the governor's plan, but said the Legislature may end up considering a combination of the tax cut proposals.

Bush also proposed more than $350 million in cuts to taxes on businesses and investors, and the remaining portion of a tax on alcoholic drinks that opponents say is too difficult to collect.

Democrats have also supported other elements in the governor's tax relief plan, including the hurricane sales tax holiday, tax breaks for companies that invest in alternative fuels, such as biodiesel or ethanol, and some small business tax breaks.

Rep. Chris Smith, the leader of Democrats in the House, said he was glad the governor was embracing some more broad-based tax cuts, but couldn't support the plan until he knows what the rest of the governor's budget looks like -- including what won't be paid for.

''He's showing us the icing, but we want to know what's in the cake,'' said Smith, D-Fort Lauderdale.

The governor was scheduled to unveil all the details of his proposed budget on Wednesday. The Legislature will meet in March and April and can accept the governor's proposals, modify them or ignore them completely.

Democrats in the Senate may support some of the governor's tax break proposals. Senate Minority Leader Les Miller of Tampa said he and other Democrats might back the sales tax breaks but was critical of Bush's overall tax policy over the years.

''Just think what we could have done with the $14.2 billion,'' Miller said, citing the need to increase teacher pay and need-based college scholarships.

Sen. Rod Smith of Alachua, one of the Democrats seeking to replace Bush as governor, argued education should get the bulk of Florida's budget surplus this year. Specifically, Smith called for putting $2 billion into school construction, and $20 million to help teachers buy supplies. Smith also suggested spending more than $1 billion to offset property insurance costs that will hit Florida homeowners this year and to speed up the purchase of land for Everglades restoration.

Bush said that even with tax cuts, his budget will still include an increase in local school spending.

''We're not going to do it to the detriment of public education,'' Bush said, arguing that per-student spending has increased more than inflation every year he's been in office.

Copyright 2006 The Associated Press, by David Royse, Associated Press Writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Florida consumer confidence up

GAINESVILLE, Fla. -- Feb. 1, 2006 -- Florida’s consumer confidence rose four points in January to 95, its highest level in six months, reflecting optimism about record-high employment, an upswing in the stock market and a pre-holiday dip in gas prices, University of Florida (UF) economists report.

The increase in confidence was broad-based, with growth in all five components of the index. The largest gain was in perceptions of U.S. economic conditions over the next five years, which rose six points to 90. Expectations about personal finances a year from now rose five points to 100. Perceptions as to whether it is a good time to buy big-ticket items also increased five points to 110. Perceptions of U.S. economic conditions over the next year rose four points to 88. Finally, perceptions about personal finances now compared with a year ago inched up one point to 89.

“Consumers continue to be optimistic about the economy here in Florida,” says Chris McCarty, director of the survey research center at UF’s Bureau of Economic and Business Research. “The employment situation here in Florida is better than it has been in decades, at least in terms of people having jobs. The stock market had a pretty good run in January, too, ending near 11,000.” Plus, McCarty adds, high heating bills have not burdened residents because the state has had uncharacteristically warm weather this winter.

Gas prices were edging down in November and December, even though they have risen since then. Although gas prices are still slightly higher than they were at this time last year, McCarty says they have been offset by steady personal income growth.

“This all translates to higher consumer confidence, and during the holiday season resulted in a moderate increase in sales, mostly due to sales in November rather than December,” he says. “But moving forward, we expect a decline in consumer confidence as several factors come to bear on the consumer.”

Energy prices are expected to increase, at least through April, and although interest rates may not rise much higher, they are unlikely to decline for quite some time, he said.

“This has already put pressure on housing prices and sales in some key Florida markets,” he says. “Homeowners that were expecting quick turnover in their property will no doubt be forced to hold on to it longer. This will be particularly true for those that purchased high-priced condominiums in Florida’s coastal markets.”

The slowdown in housing will affect other areas of the economy, such as sales at furniture, appliance and home-improvement stores, McCarty says. He predicts that by the end of 2006, housing prices will slowly decline in some areas, affecting consumers’ ability to extract home equity and ultimately hurt spending.

The research center conducts the Florida Consumer Attitude survey monthly. Respondents are 18 or older and live in households telephoned randomly. The preliminary index for January was conducted from 436 responses. The error rate is plus or minus 5 percent. Consumer confidence is designed to help predict buying patterns by measuring the mood of consumers toward purchasing. Although other economic indicators also predict buying patterns, consumer confidence tends to be available sooner. The index is benchmarked to 1966, so a value of 100 represents the same level of confidence for that year. The value of the index is in comparing changes over time rather than looking at an isolated month.
© 2006 FLORIDA ASSOCIATION OF REALTORS®

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Federal surplus property now available to homeless

WASHINGTON -- Jan. 30, 2006 -- Local governments and community groups could soon be able to use federal surplus property to create permanent housing for the homeless and for those with mental and physical disabilities.

The housing will be made available under the McKinney-Vento Homeless Assistance Act, which allows the U.S. Department of Health and Human Services to turn over surplus property for emergency shelters, transitional housing, mental and medical health screening facilities, food banks, and job training programs. Previously, long-term housing wasn’t one of the approved uses, but that policy has been revised.

Applicants interested in using this federal surplus property identify how they intend to use the property based on the needs of their communities.

Organizations interested in applying should contact Division of Property Management, PSC Department of Health and Human Services, Room 5B-17, Parklawn Building, 5600 Fishers Lane, Rockville, MD 20857 or 301/443-2265.

The National Law Center on Homelessness and Poverty is available to assist in resolving any problems that may arise in the application and transfer processes. Reach the center at (202) 638-2535.

Source: REALTOR® Magazine Online

© 2006 FLORIDA ASSOCIATION OF REALTORS®

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New Fed chief faces immediate challenges

WASHINGTON -- Jan. 30, 2006 -- On Tuesday, Federal Reserve Chairman Alan Greenspan hands over the reins for steering the world's largest economy to his successor, Ben S. Bernanke.

Greenspan's final official act is expected to be presiding over a 14th consecutive quarter-point interest rate hike, bringing to 4.5 percent the benchmark federal-funds rate that banks charge each other for overnight loans, which directly affects consumer loans.

Bernanke's first big test will be determining when and how to break this streak of rate increases, which began in June 2004.

It's no small question, and the answer will have tremendous impact on all Americans.

Raise rates too high and housing prices could slump, credit card fees could surge and the cost of borrowing for college or a new car could become punishing.

Ease credit too soon and risk being seen by global financial markets as soft on inflation. Investors in stocks and bonds, traders in currencies and gold, and foreign governments that buy U.S. government debt could all lose confidence in Bernanke's monetary management. That could spark a crisis that spreads across the globe.

So what to do? Keep raising rates? Pause? Begin cutting?

"I think there's some pressure for the Fed to keep going over the near term," said William Dudley, chief U.S. economist for Goldman Sachs & Co. in New York.

That's a view shared by James Paulsen, chief investment strategist for Wells Capital Management, a division of Wells Fargo Bank. In a January report to investors, Paulsen noted "this tightening cycle began from the lowest interest rate in almost half a century" and reverses steep defensive rate cuts made to boost the U.S. economy after the Sept. 11, 2001, terror attacks panicked the markets and risked recession.

'Without a `depression panic,' short-term rates probably would have bottomed fairly close to where they are today," Paulsen wrote. 'Essentially, the Fed has just now returned interest rates back to recession lows and can now `begin' to tighten."

Many on Wall Street believe that Bernanke's Fed will continue raising rates. Futures markets, which project investor expectations, suggest a nearly 60 percent chance that Bernanke will keep tightening rates in March.

THE FED'S MISSION

The Fed's mission is to preserve price stability by warding off inflation, the rise in prices across the economy. Inflation is most threatening during periods of economic growth, like now. The Fed seeks to raise rates high enough to contain inflation but not so high that they'll choke the economy. The federal funds rate is the tool the Fed uses.

Historically, long-term lending rates, including mortgages, rise in tandem with the federal funds rate. But that relationship is topsy-turvy as the Bernanke era begins. Long-term rates haven't risen over the latest cycle of short-term rate hikes. Instead, they've remained low, and low mortgage rates fueled a four-year nationwide housing boom.

Greenspan, widely viewed as the greatest central banker of all time, declared the phenomenon of stagnant long-term rates amid rising short-term ones a "conundrum." Bernanke believes a "global savings glut" is the reason. Foreign investors and central banks in China, Japan and elsewhere are seeking a safe bet in long-term U.S. Treasuries, even though they pay relatively low returns.

Some think the uncertainty over the relationship between long and short rates is reason enough for a pause on March 28 when Bernanke presides over his first rate-setting meeting of the Fed's policy-making body, the Federal Open Markets Committee.

"I think there's a good chance that they don't tighten at his first meeting," said Richard Fedele, CEO of Summit Mortgage LLC in Boston. Housing is such a large part of the economy that Bernanke might want "to take a little time to see what the rate increases have done."

Bernanke must tread carefully, said Charles Calomiris, a financial expert at the Columbia University Graduate School of Business in New York.

If the Fed raises short-term rates high enough, it could push the economy to a tipping point. Investments bearing short-term rates would become more attractive than those paying long-term rates, which would force up the longer rates, including mortgages, and hurt the hot housing sector.

UNCONTROLLABLE

Much is beyond Bernanke's control, Calomiris noted, because foreign investment in U.S. Treasuries, especially from China and Japan, has had more impact on U.S. mortgage rates than have the Fed's short-term rate hikes.

"Can you think of a time ever when that was the case?" he asked.

China's central bank said in early January that it would diversify out of U.S. Treasuries this year, but it didn't say how much or when. It's an important question as the Bernanke era dawns.

Meanwhile, Wall Street and the financial media will surely pore over every statement from the Bernanke Fed, looking for any break with the past, indecision or dissent among Fed governors.

"The risk is that the alpha dog [Greenspan] is gone and the pack is going to start squabbling," said Kevin Hassett, a former Fed economist and scholar at the American Enterprise Institute, a conservative think tank.

Bernanke, he said, can secure his leadership role by clearly explaining his views on the economy and inflation risks when he delivers his first economic report card to Congress on Feb. 15.

The new chairman may have another unusual problem, following nearly 19 years of Greenspan, said Lawrence Lindsey, a Fed governor from 1991 to 1997. Greenspan, widely viewed as an economic sage, may no longer feel restrained about expressing his views in public.

"I don't think he's going to set out to create a conflict, but I do think that he will be unedited, and I think that increases the variance" with his successor's statements, Lindsey said.

Copyright ©2006 Miami Herald, Kevin G. Hall, Jan. 29, 2006. All Rights Reserved.


Largo Florida Real Estate Cell : (727) 744-6821 or (727) 744-6822 Our goal is to keep you informed on trends in the Tampa real estate marketplace using the latest technology and statistics while providing WORLD CLASS SERVICE, PERIOD. Regards, MarkAnd Sam Wells, Lic Florida Realtors href="http://www.jobwellsdone.com/" href=http://www.markandsamwells.com/ Tampa Bay Florida Real Estate & Vacation Rentals including Clearwater, Clearwater Beach, Sand Key, Belleair Beach, Belleair Shores, Indian Rocks Beach, Indian Shores, Madeira Beach, North Redington Beach, Redington Beach, Redington Shores, Treasure Island, Johns Pass, St. Pete Beach, Tierra Verde, Dunedin, Tarpon Springs, New Port Richey, Port Rickey, Crystal Beach, Hudson,Holiday, Spring Hill & the whole of Pinellas and Pasco County and the Greater Tampa Bay Florida metropolitan area.Tampa Bay Florida Real Estate communities of Clearwater, Clearwater Beach, Sand Key, Belleair Beach, Belleair Shores, Indian Rocks Beach, Indian Shores, Madeira Beach, North Redington Beach, Redington Beach, Redington Shores, Treasure Island, Johns Pass, St. Pete Beach, Tierra Verde, and the whole of Pinellas County and the Tampa Bay community including New Tampa and Apollo Beach. Presenting vacation rentals and residental, commercial and investment real estate needs.

Hotel-to-condo conversions reach new heights

SANTA MONICA, Calif. -- Jan. 18, 2006 -- Developers increasingly are converting hotels and other buildings into high-end condominiums.

A hospital in Philadelphia's Franklin Park neighborhood has been transformed into 130 condos. The MetroClub Condominiums boasts sound-proof units. The developer retained many of the building’s features, such as the drive-in entrance, spacious lobby, marble walls and elevator banks.

In Miami Beach, meanwhile, Christa Development is converting the historic Caribbean hotel into 35 condos priced in the $1 million range. The company also is adding an adjacent tower with 68 units. Residents will enjoy an oceanfront pool, a fitness center, and a wine vault, among other amenities.

Source: Unique Homes (01/01/06); Sapio, Erica

Largo Florida Real Estate Cell : (727) 744-6821 or (727) 744-6822 Our goal is to keep you informed on trends in the Tampa real estate marketplace using the latest technology and statistics while providing WORLD CLASS SERVICE, PERIOD.
Regards, MarkAnd Sam Wells, Lic Florida Realtors
href="http://www.jobwellsdone.com/" href=http://www.markandsamwells.com/
Tampa Bay Florida Real Estate & Vacation Rentals including Clearwater, Clearwater Beach, Sand Key, Belleair Beach, Belleair Shores, Indian Rocks Beach, Indian Shores, Madeira Beach, North Redington Beach, Redington Beach, Redington Shores, Treasure Island, Johns Pass, St. Pete Beach, Tierra Verde, Dunedin, Tarpon Springs, New Port Richey, Port Rickey, Crystal Beach, Hudson,Holiday, Spring Hill & the whole of Pinellas and Pasco County and the Greater Tampa Bay Florida metropolitan area.Tampa Bay Florida Real Estate communities of Clearwater, Clearwater Beach, Sand Key, Belleair Beach, Belleair Shores, Indian Rocks Beach, Indian Shores, Madeira Beach, North Redington Beach, Redington Beach, Redington Shores, Treasure Island, Johns Pass, St. Pete Beach, Tierra Verde, and the whole of Pinellas County and the Tampa Bay community including New Tampa and Apollo Beach. Presenting vacation rentals and residental, commercial and investment real estate needs.