Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.

Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.

Friday, May 6, 2005

At 21:00 UTC yesterday, the polls closed in the United Kingdom general election. With only a handful of seats left to declare, Labour reached the 324 seats necessary to form a majority in the House of Commons, with the result in Corby at 03:28 UTC.

The Conservative Party remains the Opposition party, with the Liberal Democrats being the third largest party in the House of Commons.

Both the Labour victory and the reduced majority were widely predicted by opinion polls before the election. The BBC/ITV exit poll predicted Tony Blair a majority of 66 seats, which continued to be forecast as the final result as declarations were made. Some early results in the north-east indicated a bigger swing away from Labour than the opinion polls had been suggesting, but later results confirmed the survey.

Overall, there has been no clear swing in votes between the parties. Many seats have seen large swings, but in many different directions, with perhaps the national swing of 5% from Conservative to Liberal Democrat being the most dramatic with many much larger local swings.

The new Labour government has been elected with the lowest proportion of the popular vote ever – just 35.2%. However, the Tories only gained 32.3% barely more than the last election in 2001. The biggest winners in terms of popular vote were the Liberal Democrats led by Charles Kennedy, who secured 22.1% of the vote. With 645 of 646 seats declared so far, this has given the Liberal Democrats another 11 seats in Parliament, but the Conservatives have gained another 33 seats. Labour have lost 47.

As a result, Tony Blair is forecast to be governing with a majority of 66 in the new Parliament. However, on some major issues such as university fees and anti-terror laws, many Labour MPs have voted against their leadership. With a greatly reduced majority, Tony Blair may be forced to water down many more controversial policies in order to guarantee their passage through the House of Commons. Speaking on BBC News, commentator David Dimbleby pointed out the uncertainty of such possibilities, and noted that a majority of 66 was larger than the 43 seat majority won by Margaret Thatcher in the United Kingdom general election, 1979.

One surprise vote was the election of ex-Labour member George Galloway in Bethnal Green & Bow, in East London. The area has a very high number of Muslims in it, and Galloway moved from his home in Scotland in order to gain their anti-war support. He ousted Britain’s only second female black MP, Oona King, in the process.

Robert Kilroy-Silk, the ex-talkshow host who was sacked from the BBC after writing racist newspaper articles, only came fourth in his election in Erewash in the East Midlands. His party, Veritas, which fielded 65 candidates across the country, stood for withdrawing from the European Union and blocking immigration.

Turnout in the general election is 60%, up 2% on 2001.

Monday, June 30, 2008

After auctioning off his entire life on eBay for A$399,300 (€244 912.148) Ian Usher says he is “a little bit disappointed” at the final selling price.

The 44-year-old British immigrant living in Perth, Australia, put all of his worldly belongings up for sale on the popular auction website, including his three-bedroom house and all its contents, his car, motorcycle, jetski, skydiving gear, and his job at a rug store, for which he offered a two week trial period. He even offered introductions to his friends living in Perth.

Usher made the decision to sell his life after his five-year marriage suddenly ended. On his website, alife4sale.com, he explains that “despite my life being busy and fulfilled, I still miss my wife so much. Everything in my home is a reminder of the wonderful past we shared. So, after a year in this house I decided that it is time to sell it and move on.”

During the 7 day auction, which ended on Sunday, there were several bogus bids which brought the sale price as high as A$2.2 million, but the final price ended up at A$399,300, which was around A$100,000 less than Usher had hoped for. “I’m a little bit disappointed, but I’m still excited. It’s still enough to move forward and do what I said I was going to do, which is move on to the next part of my life,” Usher said. “It was as much about moving on as it was about selling it for as much as I could get.”

According to Reuters, the winning bidder, whose username is “mslmcc”, also lives in Australia, and has a 100 percent feedback rating. Usher says he hasn’t yet been able to figure out who the buyer is, because of the TV crews lined up in front of his home. “I’m trying to find some time to get on the computer and check it out … I haven’t looked (up) anything about them yet,” he said.

Usher now plans to go off in search of a new life. His initial plan, as he describes on his website, was to just walk out his front door with just his wallet and a passport and board a train, with no idea of where to go. He has since launched 100goals100weeks.com, which will document his attempt to complete 100 of his life goals in a span of 100 weeks. Some of these goals include getting a pilot’s license, climbing the Eiffel Tower, learning to play the didgeridoo, and shaking hands with billionaire Richard Branson.

“I was pretty aimless when I started this, and I had a vague notion of adventure, but I’ve come up with a much more solid plan, which is still very adventurous,” Usher says. He invites anyone who is interested to join him on his adventures.

Friday, March 2, 2007

Sirius CEO Mel Karmazin appeared before a newly formed Antitrust Task Force, a sub-committee of the House Judiciary Committee, on Wednesday last week in Washington, D.C. to defend the proposed U.S. merger between XM and Sirius satellite radio services.

The hearing, carried live on C-SPAN, was attended by representatives from various competing broadcast companies. The representatives challenged the merger deal, and some speakers were openly hostile to Karmazin and to satellite radio in general, while other speakers were more civil.

Several times during the debate, the discussion centered on the failed merger deal between the two satellite television networks DirecTV and Echostar. The comparison between this proposed radio merger and the failed television merger was settled to some extent with an understanding that nearly all television viewers now use either cable or satellite to view available programming. Televised programming content is now delivered mainly in the form of a subscription, rather than airwave transmissions.

Unlike television programming, most radio listeners use over the air receivers to listen to free programming content supported advertisers.

“We come to this hearing with an open mind, but we recognize that the companies have the obligation to convince the Congress, the regulators, and most importantly, the American People that this combination will improve the competitive playing field and benefit consumers,” said John Conyers, the sub-committee chairman. To determine the legality of this merger, Congress first needs to decide whether a combined XM and Sirius would be a monopoly, as the only satellite radio provider in the United States, or whether the new company will actually be in competition with other forms of radio-like entertainment, according to Conyers. The hearing focused on alternatives such as Internet radio, terrestrial radio, portable audio devices, and emerging services, such as cell phone services and WiMax.

Thursday, May 6, 2010

An NBC employee won US$266 million from the California Lottery’s Mega Millions drawing.

The winner, wishing to remain anonymous, will receive $165 million in total, after federal taxes, reports spokesperson for the lottery Cathy Doyle Johnston.

David Reese, a KNBC assistant manager, was informed by the winner around 2:30 local time Wednesday. Reese told the employees working the night shift to keep the name a secret until the winner wishes to step forward.

Reese said the winner worked for NBC as a freelancer for four years, and her husband was laid off two weeks ago.

L & L Hawaiian BBQ in Pico Rivera, California, sold the winning ticket with the numbers 9, 21, 31, 36, 43, and the “Mega Number” 8. Danny He, the owner of the BBQ, will receive $1 million from the lottery for selling the winning ticket.

According to lottery officials, there was a 1 in 175,711,536 chance in winning with all six numbers with 38 other states and the District of Colombia playing as well.

Wednesday, July 23, 2008

British bank Northern Rock has appointed the vice chairman of Barclays as its new chief executive. After 26 years at Barclays—the last two of which were as vice chairman—Gary Hoffman will replace Andy Kuipers. Kuipers, who has been with Northern Rock for 20 years, will be replaced at the beginning of October.

Last September, Northern Rock suffered the first run on a British bank in over 100 years, and was forced to become nationalised. Today, Hoffman stated he would return the bank to private ownership “as a thriving, stable business”. Some of his past roles include chairman of banking and chairman of Barclaycard. In his new role, he is expected to cut 2,000 of the 6,000 jobs provided by the company in an attempt to be able to pay back money owed to the Bank of England. He is to earn £700,000 per year, plus £400,000 in compensation from losses due to his moving. Including a bonus, he is expected to earn £1.5 million in his first year, making him Britain’s highest paid public servant. Among other tasks, he will be working to pay back the £25bn loan Northern Rock got from the Bank of England by 2010, and reducing its mortgage lending from £100bn to £50bn.

Northern Rock hit problems in September 2007. Issues in the mortgage market and public concern over the stability of the bank saw queues form with people keen to withdraw their funds following emergency support being provided by the Bank of England. With share prices plummeting as a result of issues in the United States sub-prime mortgage market, an unprecedented crisis struck one of the UK’s largest banks. By February 2008, the decision was taken to move the bank into public ownership and it was nationalised. Today’s appointment is the first step on a road to returning the bank to private ownership with significant measures required to cut the bank’s costs, repay loans from the Bank of England, and transform the institution into one which is attractive to the stock market.

Friday, March 10, 2006

Buffalo, New York —The Common Council of Buffalo voted on Tuesday to send the Elmwood Village Hotel proposal “to committee for further discussion”, after citing the need for more public involvement.

The Elmwood Village Hotel is a development proposal by the Savarino Construction Services Corporation, a project designed by the architect Karl Frizlen of The Frizlen Group. The hotel would be placed on the southeast corner of Elmwood and Forest Avenues in Buffalo.

To make way for the project, at least five buildings located at 1109 to 1121 Elmwood Ave would be demolished. At least two properties on Forest Avenue could also be demolished. The Elmwood properties, according to Eva Hassett, Vice President of Savarion Construction, are “under contract”, but it is unclear if Savarino Construction actually owns the Elmwood properties. Hans Mobius, a former mayorial candidate, is still believed to be the current owner the properties. Mobius also owns 607 Forest Avenue.

The properties 605 and 607 Forest Avenue could also be included in the proposal according to Hassett.

“We would use a Special Development Plan to rezone 1119-1121 Elmwood and 605 Forest to a C-2 zoning category,” stated Hassett. It is possible that Savarino Construction may try to obtain a variance for 605 Forest, which would allow them to enforce eminent domain, should the hotel be allowed to go forward.

The building at 607 Forest was also discussed to be rezoned, but it is unclear what the plans would be for that property. During the February 28 Common Council meeting, Hassett stated that the properties 605 and 607 were “now off the agenda”.

Pano Georgiadis, owner of Pano’s Restaurant at 1081 Elmwood, owns the property at 605 Forest and attended Tuesday’s Common Council meeting.

“Having a hotel is a bright idea. We all love the idea of a hotel, but the way that it is presented, is wishful thinking. This hotel does not fit. It’s like putting two gallons of water in a gallon jug, it does not fit. At the last meeting, the architect admitted that they are planning to put the undergound parking lot and the hotel, right at the property line. If I open my window, I will be able to touch the wall, that goes fifty feet high”, said Georgiadis.

“There is a problem having a seventy-two room hotel and fifty-five parking spaces. That means that all the other cars will spill all over the neighborhood. The footprint is simply too small. If you have a bigger [parking] lot, and a smaller hotel, I will welcome a hotel. I have a parking lot at my own business, and I am chasing people all day long. Remember, the city says it has ‘zero tolerance [for illegal parking]’. Try telling that to the guy from Albany who came to see his kids, that are going to Buffalo State, who would get tickets totaling over a hundred dollars”, added Georgiadis.

The city’s Planning Board is scheduled to meet on March 14, 2006 at 9:00 a.m. about the proposal. Although a discussion will take place, no vote is expected to be taken.

At the moment, none of the properties are zoned for a hotel. Savarino Construction plans on asking for a C2 zoning permit. If that does not work, they plan to implement a new zoning plan called a “special development plan” which would allow for only a hotel on the site. That zone would not be able to be changed.

“This [project] justifies Mobius’s refusal to invest in any maitenance^[sic] or improvements”, on the properties said Clarence Carnahan, a local resident. “Where were the Council persons over the years? Where were the city inspectors over the years, to make sure that he maintained and improved his properties? The government was supposed to be protecting, not being preditorial. I see a predatorial issue here when it comes to this hotel. Over the years: Why has the local government been disfunctional when it came to Mobius’s properties? Refusal to invest in improvements, doesn’t that sound like a slumlord? Maybe I am missing a point here, but what kind of messages does this send to other slumlords that havn’t^[sic] been jailed or fined? It’s [the hotel] trying to be pushed through.”

Carnahan also presented signs for residents and or business owners who are opposed to the hotel, that could be placed in windows or on stakes in the yard. Some of the signs said, ‘No tell hotel’, ‘Hans off, no hotel’, ‘It takes more than a hotel to make a village’. and ‘Keep Elmwood free, no hotel’. Carnahan plans on making more signs for a protest to be held on Saturday March 18, at 2:00 p.m. (EST) on Elmwood and Forest. Some signs were given to individuals after the meeting.

“First things first, Hans is the problem, and I don’t think it has been addressed. Let’s roll back the clock on this project. What can we do with Hans? There is such thing as eminent domain, which could be of greater interest to the community, to seize the property at its lowest assessed value”, said Nancy Pollina, co-owner of Don Apparel with Patty Morris at 1119 Elmwood. “There are so many ideas that have not been explored and we are about to give this parcel away, to a big developer.”

Mobius has not returned any calls by Wikinews regarding the situation.

A freelance journalist writing for Wikinews has obtained a letter, exclusively, addressed to one of the five business owners from Hans Mobius stating:

There is a proposal to develop my property which you are currently renting. Because of opposition to this development, it does not look like it will happen. I will let you know if there any changes.

Despite the letter, there have been no plans or decisions made to end the proposal.

To date, none of the business owners or residents of 1119-1121 Elmwood have received an eviction notice.

Business owners and residents gave an indication of what they would like to see happen at the corner; a project similar to one done locally last year. There, developers renovated two buildings on Auburn and Elmwood Avenues, merging the buildings into one thus allowing for more shop space. Among some of the shops to move in after the development were Cone Five Pottery, The Ruby Slipper, and Abraham’s Jewelers. Prior to the renovation work, the left building in the picture was boarded up for several years. Many of the concerned locals would like to see a similar development on Forest and Elmwood.

Rocco Termini, a developer in Buffalo, proposed a similar design at the February 28 community meeting

In an interview after the February 28 meeting, Termini stated, “I will be willing to take a look at this myself, or I would be more than happy to be partners with Sam, Sam Savarino”, who is President and Chief Executive Officer of Savarino Construction Services Corp.

So far Savarino Construction has no plans to team up with Termini.