Regional Urban Development Institute serves up lower-cost-housing dilemma over breakfast meeting

Derrick Penner
Sun

Homelessness and housing affordability in Greater Vancouver have become hot enough topics to pull for-profit developers and non-profit housing societies together to at least talk about solving the region’s problems.

The Urban Development Institute’s Pacific region invited non-profit groups and municipal politicians to a breakfast meeting Tuesday to keep a discussion going that all parties hope will result in cooperation to build housing.

“Everybody understands the crisis now,” David Negrin, UDI Pacific’s president said in an interview. “Now it’s time for everybody to move forward.”

Negrin said the UDI became more involved in the low-cost housing issue last fall in part because it had become such a big issue among members.

However, members were also concerned that discussion was starting to turn toward new development charges on residential development to finance social housing.

Negrin added the UDI believes there are better ways of encouraging developers to get involved in building more affordable rental or social housing than hitting them with new fees, which just increase the cost of market housing.

Allowing developers to build more condos on a piece of property than zoning allows, as long as they include apartments with lower rents — so-called density bonusing — is one option, Negrin said.

Reducing costly building requirements, such as parking spaces, would be another way of allowing developers to build cheaper rental units .

The UDI also has ideas for a formula that would get its members into public-private partnerships to build social housing.

Negrin added that Vancouver developer Robert MacDonald is already working on a project that will use density bonusing. And Concord Pacific, where Negrin is senior vice-president, is also talking with the City of Vancouver about the same measure.

“The next step is to meet with municipalities … to try and take the red tape out of development,” and start working with the non-profit sector to create partnerships to build lower cost housing, he said.

Alice Sundberg, executive director of the B.C. Non-Profit Housing Association, said it has been gratifying to see the UDI reach to the non-profit sector to begin the discussion.

“You see [UDI members] popping up all over the place talking about affordable housing, and not in the old ways, but in new ways that are about collaboration and partnership,. It’s really uplifting.”

Sundberg said a goal for Tuesday’s meeting was for non-profit entities to make informal connections with the development community.

However, she said the two parties have also discussed organizing an event that would focus on “rolling up our sleeves and getting people to work out what kind of opportunities are out there, and how can we make a deal happen.”

© The Vancouver Sun 2007

Gregory Thomas
Sun

Markets moved lower on both sides of the border Tuesday as growing evidence of a slowdown in U.S. housing shook consumer confidence.

Data from January shows housing prices dropped 0.2 per cent year over year in the 20 largest U.S. markets. It was the first time prices have fallen year over year since January 2001, when the S&P/Case-Shiller housing index was first published.

U.S. consumer confidence dropped to 107.2 this month from 111.2 in February on concerns over rising mortgage foreclosures and the February sell off in the stock market.

Earnings dropped 73 per cent at Lennar, the biggest U.S. homebuilder, while the U.S. justice department, the FBI, and the internal revenue service launched a probe into the lending activities of Beazer Homes, the ninth-largest U.S. homebuilder.

The Dow Jones Industrial average fell 71.78 points, or 0.6 per cent, to 12,397.29. The S&P 500 slipped 8.89, or 0.6 per cent, to 1428.61.

The Nasdaq composite shed 18.20, or 0.7 per cent, to 2437.43.

News of faltering U.S. construction hurt metal prices. In New York, the May copper contract fell 8.10 cents, or 2.6 per cent, to $3.0575 a pound, its biggest drop in a month. April gold slipped 0.2 per cent to $662.50 an ounce.

The S&P/TSX materials group declined 1.2 per cent. Alcan ended 71 cents lower at $61.34. Vancouver-based Teck Cominco finished down 82 cents at $82.41. Goldcorp gave back 52 cents to $28.74.

The S&P/TSX composite index dropped 84.12 points, or 0.6 per cent to 13,218.76.

The S&P/TSX venture composite bucked the trend, climbing 6.80 or 0.2 per cent to 3168.23.

The May crude contract ended higher by two cents at $62.93 US. Prices surged in electronic after-hours trading on speculation relating to the status of the 15 British military personnel being held in Iran.

Five trades completed between $68 US and $68.09 US a barrel.

Crude moved lower later in the after-hours session, to $64.46 US.

This morning in Singapore, crude traded at $63.87 US.

The U.S. dollar lost ground to the euro and the yen.

The Canadian dollar gained 0.31 US cents to 86.40 US, following a third-place finish Monday for the Parti Quebecois in the Quebec provincial election, the separatist party’s worst showing in 36 years.

Gregory Thomas is an investment adviser and Certified Financial Planner. His market commentary is broadcast on all-news radio News1130. Views expressed are the author’s alone, and not necessarily those of his employer, BMO Nesbitt Burns Inc., member CIPF. Tel 604-631-2693.

© The Vancouver Sun 2007

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Boutique project is unique in the Kitsilano area

Sun

George Wong of Platinum Marketing Group and development manager Bud Eaton (right) at FIRST, the new condo project at First Avenue and Burrard Street in Kitsilano. Photograph by : Ian Lindsay, Vancouver Sun

The kitchens at FIRST are by Molteni with satin aluminum-edged detailing. The countertops are made from engineered stone. Photograph by : Ian Lindsay, Vancouver Sun

A closet-lined corridor that links bedroom to bathroom at FIRST, the new condo project in Kitsilano.

Bathrooms at FIRST are all equipped with Italian-Imported rectangular basins.

FIRST

Developer: Wedgewood and Marcon

Architect: Ray Letkeman Architects

Interior Design: Kodu Design

Presentation Centre: 1808 West First Ave., Vancouver

Telephone: (604) 732-1101

Web: firstonfirst.com

Price range: $399,000 to $915,000

Penthouse: $1 million to $1.6

million

Size of regular condos: 600 to 1,500 square feet.

Occupancy: Early 2009

FIRST is appropriately named because there hasn’t been anything like it for the past 15 years in the neighbourhood, says Platinum Marketing group spokesman George Wong.

The 45-unit condo, in Kitsilano, appeals to buyers wanting to be in a prime location and in a mid-rise, concrete tower.

The six-floor building, on the southwest corner of Burrard and First, is considered a “boutique” project because of its small size but spacious interiors, says Wong.

“It’s very unique because of the distinctive block and it’s very rare. Nothing of this nature is on the horizon for Kitsilano and nothing has been offered similar to this here for about 15 years.

“Many would agree this block has the most personality and style in Kitsilano. The trendy shops, row housing and the merchants are here. It’s a very distinctive style.”

Wong adds although FIRST has a gym and meeting room, with a flat screen TV, fireplace and kitchenette that opens onto a large terrace, the amenities are really to be found just outside buyers’ doors, with the beach and Vanier Park only two blocks away.

The homes are priced from $399,000 to $915,000 with six penthouses available, priced between $1 million and $1.6 million.

The size of the regular suites ranges from 600 to 1,500 square feet, and all of them have overheight ceilings of 8 feet 10 inches. The penthouse ceiling heights are 9 feet 4 inches.

The architect, Ray Letkeman, has designed plans that maximize space with all homes having an open concept kitchen/living area, ideal for entertaining.

The exterior of the building will be a combination of masonry, concrete and glass with large windows in each suite to take full advantage of the location. Directly on the corner of Burrard and First there are no high-rises in the vicinity to block the sun.

Kodu Design has created a sleek interior with high-end European finishes in a neutral backdrop, either teak or maple color scheme.

This was deliberately done for home buyers to put their own unique stamp on the interiors.

“It’s contemporary, urban style but yet it’s not cold. It has a very human touch,” says Wong.

Some of the features include hardwood flooring in the entry, kitchen, living, dining and storage/flex room. The bedrooms have 100 per cent wool looped carpet in a warm tone.

Each unit has an enclosed balcony with large-format, 12-by-24 inch slate tiles. Some of the suites have in-floor electric radiant heat on the outdoor patios.

The kitchens are Dada kitchens by Molteni, with satin aluminum edged detailing and come with either a taupe or white matte finish.

The countertops are a polished white engineered stone with matching 12″ backsplash. The sinks are under-mount with a distinctive ribbon faucet.

The bathrooms are all outfitted with a custom-Italian-imported rectangular basin with a polished chrome lever style ribbon faucet. Behind it is a full-height beveled mirror flush to the walls. The floors are a large 18-by-18 inch porcelain floor tile. The toilets are dual flush and water efficient.

The developers are Wedgewood and Marcon who Wong notes have been building homes in Vancouver for over 25 years and in that time have built over 6,500 condos.

Some of the features include hardwood flooring in the entry, kitchen, living, dining and storage/flex room.

The bedrooms have 100 per cent wool looped carpet in a warm tone.

Each unit has an enclosed balcony with large-format, 12-by-24 inch slate tiles. Some of the suites have in-floor electric radiant heat on the outdoor patios.

The kitchens are Dada kitchens by Molteni, with satin aluminum edged detailing and come with either a taupe or white matte finish.

The countertops are a polished white engineered stone with matching 12″ backsplash. The sinks are under-mount with a distinctive ribbon faucet.

The bathrooms are all outfitted with a custom-Italian-imported rectangular basin with a polished chrome lever style ribbon faucet. Behind it is a full-height bevelled mirror flush to the walls.

The floors are a large 18-by-18 inch porcelain floor tile.

The toilets are dual flush and water efficient.

The developers are Wedgewood and Marcon who Wong notes have been building homes in Vancouver for over 25 years and in that time have built over 6,500 condos.

© The Vancouver Sun 2007

Sandra Block
USA Today

A foreclosure sign outside a Miami home. The rate of foreclosures nationally hit a record last year.

If you’re lying awake at night, fretting about whether you’ll lose your house to foreclosure, you may not be the only insomniac on your block.

More than 2.1 million Americans with home loans missed at least one payment last year, according to the Mortgage Bankers Association. Even more troubling, the rate of new foreclosures hit a record.

The problem is likely to get worse. As adjustable-rate mortgages adjust to higher rates, many borrowers are finding they can’t afford their payments. And the collapse of the subprime market has made it harder for those with tarnished credit to refinance.

But be aware: Even if your mortgage has become an intolerable burden, letting the bank foreclose could lead to a lifetime of hurt. Losing your home is just the beginning. A foreclosure will wreck your credit report for years, making it impossible — or at least extremely expensive — to buy another home, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies. If the proceeds from the sale of your home don’t cover your loan, your lender might sue you to recover the unpaid balance.

Many borrowers who lose their homes to foreclosure haven’t tried to negotiate with their lenders. That’s unfortunate, because lenders are usually willing to work with borrowers to avoid foreclosure, says John Lamb, co-author of Solve Your Money Troubles. “With the number of foreclosures on the horizon, lenders are going to be more willing to work with people, because it doesn’t do anybody good to have a glut of foreclosed houses on the market.”

Ideally, you should call your lender before you miss your first payment, says Bob Walters, chief economist for Quicken Loans. If your payment is due on the first of the month, call before the 15th, which he says is usually when your lender will report the late payment to credit-reporting agencies. The longer you wait, the fewer options you’ll have. Once your loan is declared in default, typically after you’ve missed three or four payments, you’re “past the point of no return,” Walters says. At that point, most lenders won’t accept a partial payment of what you owe. Unless you can come up with the money to cover all your missed payments, plus any late fees, your lender will start foreclosure.

Avoiding default

If you’re suffering a temporary financial setback, your lender may offer programs that will help you get back on track. They include:

• Forbearance. This is an agreement that lets borrowers make a reduced payment, or none, for a specific period. You might have to make larger payments once the crisis has passed. To qualify, you might need to show that you’re expecting a bonus, a tax refund or other income that will let you catch up.

• Reinstatement. You agree to pay the full amount of your missed payments by a specific date. Reinstatement is sometimes combined with forbearance.

• Modification. Your lender agrees to change the terms of the loan to make payments more affordable. Your lender may agree to add missed payments to your loan balance or extend the term of your loan, reducing the size of your payments.

Before asking for forbearance or loan modification, be prepared to show that you are making a good-faith effort to pay your mortgage, says Jim Svinth, chief economist for LendingTree.com, a website that helps consumers shop for mortgages. If you can demonstrate that you’ve reduced other expenses, the lender will be more inclined to negotiate, he says.

Svinth warns, though, that your ability to negotiate will also depend on which institution owns your loan. If your bank still has your loan in its portfolio, it can modify the terms or offer forbearance. But many lenders sell loans into the secondary market, where they’re repackaged as mortgage-backed securities. In that case, Svinth says, the company that’s servicing your loan might be unable to change the terms.

Moving on

If you’re in a home you can’t afford, loan forbearance isn’t going to solve your problem. But even if you have to move, you can take steps to avoid foreclosure:

• Put your home up for sale. This may be the best choice, Walters says, if you’ve been in your home for several years and have built up some equity. If your local real estate market is strong, your lender may agree to forgo payments until the house is sold, says John Jones, a financial specialist at ComPsych, an employee-assistance program. The proceeds from the sale might cover your mortgage and selling costs.

• If you have no equity or your local real estate market is depressed, ask your lender to consider a “short sale.” In a short sale, the lender agrees to accept the proceeds from the sale of your home, even if they don’t cover the amount you owe.

• Ask your lender to accept a deed in lieu of foreclosure. If you can’t sell, your lender may agree to take the deed to your home and cancel your debt.

There’s one serious drawback to a short sale or a deed in lieu of foreclosure: You could find yourself stuck with a hefty tax bill. In most cases, debt forgiven by a lender is considered taxable income. Unless you have your debt eliminated in bankruptcy or can prove you’re insolvent, you’ll have to pay taxes on the canceled debt, says John Roth, senior analyst for tax publisher CCH. Many people don’t realize that canceled debt is taxable, Roth says, until they receive a Form 1099C from their lender; a copy goes to the IRS.

So why opt for a short sale or a title transfer instead of foreclosure? For one thing, foreclosure won’t get you off the hook, either. If the lender sells your foreclosed house for less than you owe, it might sue you for the balance. And if the lender writes off the remaining debt, you could still end up with a tax bill, Roth says.

Though a short sale or a title transfer will hurt your credit report, you might still be able to work with your lender to reduce the damage — which isn’t possible with a foreclosure, Lamb says.

“Foreclosure is really a bad thing to have to go through,” he says. “You have all this emotional baggage, as well as the financial consequences. It’s certainly better to have some control over the process.”