FLANDERS CORP COMING TO COLUMBIA COUNTY

The news that the Flanders Corporation will move into Columbia County is a welcome sign that the changing dynamics in New York State are starting to reap benefits.

The Flanders Corporation has picked our region to expand its growing air filter manufacturing business which is based out of North Carolina. The Company will be creating 180 jobs and investing approximately $7 million in the former Kaz plant. The collaboration between state, county and local officials helped make this a reality and I was pleased to be a part of this economic development team.

As challenging as this past budget process was, my Republican Senate Colleagues and I remained steadfast in our commitment to deliver an on time budget that contained no new tax increases. A signal that New York can be competitive in attracting and maintaining businesses and jobs.

I am hopeful the Flanders Corporation is the first of more businesses who will see the region full of potential to establish or expand a business.

Posted by State Senator Steve Saland

SENIOR LIVING FACILITIES SEE A BOOM IN THE USA

Seven years ago, real-estate developer Greg Smith purchased a failed nursing home in Danbury, Conn., with an eye toward converting it into residential condominiums.


When a friend suggested instead a senior housing strategy known as assisted living Mr. Smith initially wasn't enthused. "I didn't even know what assisted living was," Mr. Smith says.

Now he knows. His company Maplewood Communities LLC has developed and is operating three assisted-living communities including the one in Danbury and has three others under development. Moreover, Maplewood also just cut a deal with Aviv REIT Inc., one of the country's largest landlords of skilled nursing facilities, under which Aviv will provide capital for future growth, initially $60 million.

"We're talking about getting 15 to 25 communities under our belt," Mr. Smith says.

Assisted-living housing is growing into a bigger business in the New York region. While development is slow of most commercial property types—like office buildings and retail centers—a number of developers are moving ahead with plans to provide facilities that occupy a middle ground between standard apartment buildings and nursing homes.

Assisted-living tenants typically are elderly people who are generally healthy and can take care of themselves, but the facilities provide services like nurses, aides, dining and memory care. Average rents at Maplewood are $4,700 to $4,900 per month.

The New York metro area has the second lowest number of available assisted-living units in the country with 2.6 units for every 100 households with seniors aged 75 years and older, according to the National Investment Center for the Seniors Housing & Care Industry. The number of units has grown only 3% in the last five years in the region compared to 7.4% nationally, according to the center.

But the region's population is aging. People 75 years and older constitute nearly 20% of all households in the metro area, compared to 14.7% in the U.S. overall, according to the National Investment Center.

"We see that demand [is growing] as baby boomers start to climb" in age, says Mr. Smith. "The amount of [new] supply over the last 10 years has been virtually nonexistent."

The strategy so far has paid off for Maplewood. For example, it spent $11.5 million to buy the Danbury property and convert into an assisted-living facility equipped with a manmade waterfall in the dinning area. Today, it's roughly 90% occupied, has an annual income of $1.5 million. Mr. Smith estimates its worth at $18 million.

Altogether, Maplewood has invested about $35 million for its three existing properties. For the properties under development, it has invested about $45 million with a total of 225 units. Mr. Smith estimates that "conservatively" they're worth $55 million.

Other regional operators also are expanding. Benchmark Senior Living, which is Connecticut's largest owner of assisted living with 15 facilities, is expanding into northern New Jersey and suburban New York as well as New England, according to Thomas Grape, Benchmark's chief executive. He declined to elaborate citing competitive concerns.

The regional activity reflects a national trend. The biggest real-estate mergers so far this year involved national health- care landlords seeking to expand their senior housing exposure including Ventas's $5.8 billion acquisition of Nationwide Health Properties in February several months after it acquired Atria Senior Living, one the biggest regional operators in the New York region. In addition, Health Care REIT recently enters a partnership with Benchmark Senior Living involving 34 assisted living facilities in New England.

Jeff Theiler, an analyst at Green Street Advisors, says there are nearly 2 million assisted living units in the U.S. and on average, the number has increased 5% every year for the past 25 years. "Because of that resiliency, there has been a big …interest in the property type among the health care REITs," Mr. Theiler says.

To be sure, assisted living isn't without its pitfalls. Although rents have risen in recent years, the growth hasn't been robust. During the recession, many seniors or their children couldn't sell their homes or didn't have viable employment to pay for assisted-living accommodations, which are relatively expensive.

Mr. Smith started in commercial real estate by developing and acquiring office and hotel buildings more than 10 years ago. But, after he purchased his first assisted living facility in Danbury he decided to focus on this sector. He even recruited family members to live in the Danbury facility, including his great aunt and grandmother who died last year. "They fell in love with it. My grandmother was the matriarch of the community," Mr. Smith said.


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Article written by A.D. PRUITT, Wall Street Journal

Picture of Maplewood Community by Anton Troianovski/The Wall Street Journal

http://online.wsj.com/article/SB10001424052748703864204576311443059330956.html#printMode

CLEAR CAPITAL: HOME PRICES HAVE OFFICIALLY DOUBLE-DIPPED



The national home price index from Clear Capital has officially entered double-dip territory.

The company says data through the end of April has pushed its reading of national home prices 0.7 percent below the prior low recorded in March 2009, as markets have become saturated with bank-owned properties.

Clear Capital’s report shows prices have fallen 11.5 percent over the previous nine-month period. A rate of decline this rapid has not been seen since 2008.

All the major metropolitan statistical areas tracked in Clear Capital’s report showed quarter-over-quarter price declines. The company says it’s a “sign of the continued volatility and fragility of home prices.”

At the regional level, home prices in the West, Northeast, and South regions have all crossed into double dip territory to record their lowest prices since the downturn began.

Clear Capital says the fact that the Midwest is the only region yet to double dip is largely a reflection of magnified gains it experienced during the last two years of tax credit activity.

Dr. Alex Villacorta, director of research and analytics at Clear Capital, says he continues to see evidence of an increase in the proportion of distressed sales taking hold in markets nationwide.

“With more than one-third of national home sales being REO, market prices are being weighed down as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales,” Villacorta said.

“In light of the compounding effects of winter’s seasonal slowdown and increased distressed sale activity, the market now faces the true test of whether prices can rebound in the historically active spring season,” according to Villacorta.

While spring typically brings with it a resurgence in home sales – and home prices follow – Clear Capital warns that markets have entered uncharted territory since this spring homebuying season will be the first since 2008 without any tax credit incentive.

“A note of caution to those looking for a strong end to 2011: The last time no incentives were in place and distressed inventories were this high, home prices fell sharply,” Clear Capital said in its report.

The company’s home price report last month noted the subtle but rather ominous trend that distressed sales activity in the West, as a percentage of total sales, had climbed after a prolonged 18-month period of general improvements, and in turn, home prices in the western part of the country hit the double-dip mark in March.

Nationally, Clear Capital says a similar trend has formed with REO saturation climbing to a current level of 34.5 percent after it declined to near 20 percent in mid-2010. Strikingly similar, the company says, 2008 saw REO saturation grow from near 20 percent early in the year to 32 percent by the end of 2008.

Looking at home price trends during these same two periods ties together similarities, Clear Capital explained, with a 15.6 percent price decline for the 2008 timeframe compared to the 11.5 percent decline for the mid-2010 through April 2011 period.

“This comparison leads to concern over home price declines through the rest of 2011,” Clear Capital said in its report, noting that the trends of 2008 were quickly reversed with the introduction of stimulus measures.

“[T]he housing market still faces many challenges that will only be solved through increased buying activity or a reduction in the distressed segment ― neither of which is assured in 2011,” according to Clear Capital.


Written by Carrie Bay - http://www.dsnews.com/

1810 COLONIAL AND GRIST MILL ON 8 PLUS ACRES IN GHENT, NEW YORK - $595,000



Circa 1810 Center Hall Colonial with 5 Bedrooms and 3 Baths, with early addition. Period charm with modern amenities. 8.32 surveyed acres along Kline Kill Creek. Early (1800's) 3 story Grist Mill (Brookside Flour and Feed Mill) with many artifacts still remaining. 1,100 sq. ft. shop/garage plus a 6,000 sq. ft. commercial building with elec., water, & heat, currently rented to marine repair facility. (all out buildings have electric). Wonderful property for both residential or commercial uses. Come take a look. Additional 16.73 acres available.

For additional information, click on the following link:

www.GristMillForSale.com 

FIRST-TIME HOME BUYERS PREPARE FOR BEST BUYER'S MARKET IN RECENT HISTORY

RISMEDIA, March 18, 2011—While affordable housing prices, ample inventories, and historically low interest rates signal ‘buyer’s market’ for investors or move-up buyers in many U.S. markets, inexperienced first-time buyers may not know if the time is right to make a move into real estate.

“It’s not about timing the market. It’s about time in the market,” says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. “Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people. Today’s housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities.”

To help first-time buyers know if they’re ready to look for the home of their dreams as we head into this year’s home-buying season, the experts at Move have created a ‘reality checklist’ designed to help them decide if the time is right.

Get your financial house in order

Before you decide to buy a home, it’s essential to make sure your credit is in good shape and repair any damage previously done. Know your credit score: thirty-five percent (35%) of successful buyers recently reported they didn’t know their credit score when they went house shopping, according to a national survey fielded for MortgageMatch.com. Having enough money set aside for a down payment is a key component to making sure you are ready to purchase a home. Also, it’s important to not put all of your money in the down payment as other fees or unexpected expenses often arise after closing.

Don’t fall in love with a house you can’t buy

Find out how much you can afford: establishing your purchase power upfront, including how much money will be required for a down payment and closing costs, is a must for first-time buyers. Look for special loans available from FHA and government sponsored loans for first-time home buyers that reduce the amount of money required to get into a home.

Learn the lingo

Since first-time buyers are new to the market and will finance a significant portion of their purchase, it’s important to get familiar with the processes and terminology associated with home-buying. Here are a few key terms from MortgageMatch.com to add to your vocabulary:

Bait rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit. Rates are based on: credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location and the day you lock your rate, etc. The loan isn’t locked until the application is accepted. By then, it may be too late to find a better rate from another lender.

Basis point: A term used in the mortgage industry which simply means 1/100th of 1%.

Closing costs: The fees required to process and close your loan. They’re a cash obligation running from 3-5% of the purchase price. Motivated sellers might pay a portion of these costs.

FHA: Federal Housing Administration, the Federal Government Agency that oversees the U.S. Housing market. FHA Loans are loans insured by the Dept. of Housing and Urban Development.

FRM and ARM: A Fixed-Rate Mortgage Loan (FRM) is a loan where your interest rate stays the same for the life of the loan. ARMs are Adjustable-Rate Mortgages with variable interest rates that fluctuate based on an agreed-upon index.

GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan.

TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan.

Lis pendens: An official notice that there is a pending lawsuit over real estate.

Per Diem interest: Interest you pay per day, from the day you close to the last day of the month.

Underwriting/underwriting fees: Underwriting is a process the lender performs to qualify a borrower for a loan and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money.

Warranty deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property.

Mortgage Knowledge

While national rates on 30-year-fixed-rates mortgages have risen slightly this year, they are still at historic lows not seen since 1980, according to Freddie Mac. “Buyers who prepare themselves financially before they start looking for a home will have a better chance of succeeding,” says Sue Stewart, senior vice president for Move, Inc. “If you want to land the best mortgage that fits your needs, start early, educate yourself on your financial situation, get your documentation together and find a lender you trust.”

Find a REALTOR® and go shopping

For those ready to buy, REALTOR.com® has the tools and tips to help you find a REALTOR® and, ultimately, the right home. Finding a licensed real estate professional in your area will make the process smoother and easier to understand. Once you find an agent, share your realistic budget and what you’re looking for in a home. Stay in constant contact with your agent and look for homes whenever you have a spare moment.

First-time home buyer resources

For more tips designed to help the first-time buyer navigate the home buying process, the experts at Move have provided an abundance of helpful information that’s just one click away:

-Reality checklist – Are you sure you’re ready to buy? Here’s how to know.

-How-to Guide: Buying Your First Home – Everything you need to know about buying a home

-Get Prequalified Now – Get prequalified for a mortgage before you begin shopping

-Realtor.com Blogs– Connect with REALTORS® to help you navigate the market

-MortgageMatch.com News – Answers questions about finances and mortgages

-Move.com Home Finance – Equips first-time buyers with tools, guides, advice, and more

If now isn’t the right time, prepare for your future purchase

If now isn’t the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It’s also important to refrain from making any new large purchases or applying for new credit.

For more information, visit www.move.com [2] and www.Realtor.com [3].

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com [4].

Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email rrein@rismedia.com [5].
Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Obama Administration Lays Out Plan for Winding Down Fannie and Freddie

The Treasury Department released the Obama administration’s plan Friday for reforming the nation’s housing finance system and winding down Fannie Mae and Freddie Mac.

Officials say the reform measures will shrink the government’s footprint in the mortgage market, fix “fundamental flaws” in the system, increase transparency for investors, and improve underwriting and mortgage servicing standards.

On a conference call with the media, Treasury Secretary Timothy Geithner stressed that “realistically, this is going to take five to seven years” for full reform to be implemented.

HUD Secretary Shaun Donovan added, however, that there are short term steps that don’t require legislation, which can and need to be taken immediately to return private capital to the market.

“We are going to start the process of reform now, but we are going to do it responsibly and carefully so that we support the recovery and the process of repair of the housing market,” Geithner said.

The first item on the administration’s laundry list of reform measures is phasing out the nation’s two largest mortgage companies. With the financial crisis, private capital retreated from the housing market, leaving the government to guarantee more than nine out of every 10 new mortgages. Both Geithner and Donovan underscored the fact that the plan for winding down Fannie and Freddie is centered on returning private capital to the market.

The private sector must fill in the receding role of the government and “should be the primary source of mortgage credit and bear the burden for losses,” according to a Treasury statement.

The administration recommends ending what it called “unfair capital advantages that Fannie Mae and Freddie Mac previously enjoyed” by requiring them to price their guarantees as though they were held to the same capital standards as private lenders. Although the pace of increasing guarantee fees will depend largely on market conditions, the administration says it wants to bring Fannie and Freddie to a level playing field with the private market “over the next several years.”

The administration is also recommending Congress allow the temporary increase in conforming loan limits to reset as scheduled on October 1, 2011. The limits for GSE loans, as well as for the Federal Housing Administration (FHA), were raised to $729,000 to allow for greater market support. Unless Congress extends the temporary increase, the limit will revert back to $625,500 in the fall.

The report also advocates a 10 percent down payment requirement for any mortgage than Fannie Mae and Freddie Mac guarantee. The proposal suggests a “gradual increasing,” but does not set a target date for hitting the 10 percent mark.

In addition, the administration’s plan calls for scaling back Fannie Mae and Freddie Mac’s investment portfolio at an annual rate of no less than 10 percent per year.

“We believe that under our current Preferred Stock Purchase Agreements, there is sufficient funding to ensure the orderly and deliberate wind down of Fannie Mae and Freddie Mac,” the administration said in its report.

While much attention has been centered on what will become of Fannie and Freddie, the proposal covers many elements of the housing finance system beyond the GSEs, including FHA, which currently accounts for about a third of the mortgage market.

The report recommends increasing FHA’s annual mortgage insurance premium by 25 basis points – a change the administration wants to see go into effect in April.

Additionally, the plan will help provide targeted support to creditworthy but underserved families that want to own their own home, as well as affordable rental options.

In the report, officials note that “[a]ny responsible reform effort that addresses the flaws in the pre-crisis housing market will make credit less easily available than before the crisis.”

For months now, economists have been debating the government’s decades-long push to provide the American Dream of homeownership to every citizen and whether or not that modus operandi served to fuel the housing bubble and lax lending standards that put so many borrowers into unsustainable mortgages.

Donovan stressed that the government must ensure a “better balance of homeownership and renting.” He said the proposal includes measures that would expand FHA’s capacity to support financing of affordable rental and multifamily housing.

The administration is also throwing its weight behind several immediate and near-term reforms to correct problems in mortgage servicing and foreclosure processing. These include:
•Putting in place national standards for mortgage servicing;

•Reforming servicing compensation to ensure servicers have proper incentives to help borrowers avoid foreclosure;

•Requiring that mortgage documents disclose the presence of second liens and define the process for modifying a second lien; and

•Allowing primary mortgage holders to restrict additional debt secured by the same property.

Beyond the administration’s specific recommendations, the report also puts forward three longer-term reform choices, ranging from a government role that is limited to just the FHA, to an FDIC-type insurance guarantee for certain mortgage securities. We cover these three options in more detail in a separate article on DSNews.com.

The administration’s proposal has been delivered to Congress. Donovan says the options outlined in the report should “deepen debate and dialogue” among lawmakers as they decide the best route to take to move forward. A copy of the full 32-page report can be accessed here.

Article Written by Carrie Bay - DSNews.com

©2011 DS News. All Rights Reserved.

U.S. CENSUS: 11% OF HOMES IN USA ARE VACANT

Data continue to mount showing that the housing sector remains depressed. First came news from the Standard & Poor’s/Case-Shiller index that home prices fell 1.6 percent in the year through November.

\Now, the Census Department reports that vacant home totaled 18.4 million in the fourth quarter, meaning 11 percent of all housing units are vacant year-round, according to CNBC.

The country’s home ownership rate, after holding steady for months, dropped to 66.5 percent in the fourth quarter from 66.9 percent in the third quarter. That's the lowest level since 1998.

“Homeownership is falling at an alarming pace, despite the fact that home prices have fallen, affordability is much improved, and inventories of new and existing homes are still running quite high,” writes CNBC real estate columnist Diana Olick.

Much of the problem is that the nation is still recovering emotionally from the housing crash of the past four years, she says.

“Younger Americans have seen what home ownership has done to their friends and families, and many want no part of it. Credit has become very nearly elitist.”

Ace economist Nouriel Roubini says housing is in the midst of a double-dip recession. “Demand is falling, and supply is increasing because there is a shadow inventory of millions of not yet foreclosed homes. Therefore, prices are going to fall even further,” he tells Forbes video.

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Article written by Dan Weil - MoneyNews.com