April 3rd, 2013 By Kevin McCallum
THE SANTA ROSA PRESS DEMOCRAT
City leaders rejected a developer’s plan to build 73 homes in the largest subdivision under construction in Santa Rosa, calling the proposal a “bait-and-switch” that would leave the city without the low-income housing it was promised. Meritage Homes of California wants to start building the second phase of 138 single-family homes approved for a former Christopherson Homes subdivision off Aston Avenue in the southeast section of the city. But because of the way the original subdivision was broken up in foreclosure, the current developer doesn’t own the piece of property that was set aside for the 24 units of affordable housing associated with the project. Instead, Meritage is proposing to restrict some of its smaller 1,400-square-foot homes for moderate-income families.
A family of four in Santa Rosa is considered moderate income if it makes 120 percent of the median income, or $99,100. But that didn’t sound very affordable to Councilman Jake Ours. “In this particular case, I think there’s a bit of a bait-and-switch going on,” Ours said. “We’re not getting affordable units, and until we can get that, I don’t’ think I’ll vote for this.”
City staff had come up with a compromise they hoped would make the best of a bad situation. The city had approved Christopherson Homes’ 162-unit Daunhauer Ranch subdivision at 1600 Aston Avenue in 2003. Because the project was more than 15 acres, the city required 24 of the units be built on-site as a low-income apartment complex. A separate entity, Alderbrook Properties, was established to develop the affordable units. But when home values plummeted, Christopherson Homes, once the largest homebuilder in the county, defaulted on the main portion of the property. In 2010, Meritage Homes bought the property where single-family homes were planned from Wells Fargo Bank, but it did not purchase the parcel approved for the affordable units. A previous council in 2012 signed off on a deal allowing nine of the 65 housing units in phase one to be set aside for moderate-income families. But this time the deal faced greater scrutiny.
“I feel like I’m getting backed into a corner and I don’t like it,” Councilman Gary Wysocky said. Council members expressed a preference for the original plan. But City Attorney Caroline Fowler pointed out that city staff was trying to find a way to keep a project that creates jobs and builds affordable homes moving forward. She also stressed that Meritage Homes didn’t own the property where the affordable units were planned. “We can’t force them to build low-income housing on a site that they don’t own,” Fowler said.
Keith Christopherson, former owner of the now-defunct Christopherson Homes, said he still hopes to build the affordable units, but needs some help. He said he hopes Meritage will help him finance the deal. But Wysocky said he doubted the separate apartment parcel would be developed anytime soon. “That’s going to stand alone for a long time, I fear,” he said.
Housing advocate David Grabill noted that the need for moderate-income housing has lessened since housing prices have tumbled, stressing that low-income housing is where the real unmet need is. “You’ve got to hold their feet to the fire,” Grabill said. Ultimately, the council instructed Meritage to sit down with Christopherson to see if the two groups could find a way to get the low-income units built. They requested an update in 30 days.
“I think we could easily pull it together in a month,” Christopherson said.
Wednesday, April 3, 2013
Thursday, December 13, 2012
Napa Resists Affordable Housing
An excellent and well researched ARTICLE from the North Bay Bohemian about the lack of affordable housing in Napa County and how Napa and other 'NIMBY' jurisdictions in the Bay Area are seeking to avoid their obligations under state and federal laws to address the housing needs of households of all income levels.
Monday, April 30, 2012
ACLU Jack Green Award
The Sonoma County ACLU gives the Jack Green as the Jack Green Award recipient for 2012. Green, a union organizer in Santa Rosa in the 1930's, was tarred and feathered and dumped at the Marin County line by vigilantes (including some police officers). He came back a couple days later and continued his organizing work. Our wonderful Congresswoman Lynn Woolsey put a little blurb about the award in the Congressional Record .
Tuesday, November 8, 2011
FAIR HOUSING MEANS FAIR LENDING!
In 1968 Justice Stewart writing for a majority of the U.S. Supreme Court stated "IF CONGRESS WERE POWERLESS TO ASSURE THAT A DOLLAR IN THE HAND OF A BLACK MAN WILL PURCHASE THE SAME THING AS A DOLLAR IN THE HANDS OF A WHITE MAN ......THEN THE THIRTEENTH AMENDMENT [BANNING SLAVERY] MADE A PROMISE THE NATION CANNOT KEEP."
Jones v Alfred H. Mayer
Today that promise remains unfulfilled for many Americans because of the color of their skin, their race, ancestry, religion or mental or physical disability. The most important consumer purchase a person will make in their life time is buying a home. Under the Federal and California fair housing laws you have the right to be treated in an equal and impartial manner by a financial institution.
What is prohibited?
When applying for a loan, refinancing a mortgage or home equity loan no one can take the following actions for reasons of race, color, national origin, religion, sex, martial or family status or disability:
- deny a loan
- establish terms, conditions, or privileges different for the giving of a loan, for
example giving the loan only with a higher interest rate or downpayment
- charge different costs for services like making an application, doing an
appraisal, closing costs etc.
- be targeted for a loan that has fees, terms or rates that are excessively high
i.e predatory
What Should I look for?
If you experience one or more of the following you may have been discriminated against.
- Property Standards: Does the bank have standards for lending based on the maximum age or minimum property value?
- Minimum Loan Amounts: Does the bank have standards for lending based on a minimum loan amount?
- Subjective Lending Criteria: Does the bank have standards for lending based on the property being well maintained? Is the bank asking vague questions about the applicants character or insisting that the borrower have excellent credit?
- Different Terms for Loan: Does the bank have higher fees on smaller loans; require different downpayments or offer higher interest rates for loans in Hispanic or an African-American neighborhoods?
- Employment Stability: Does the bank have standards for lending based on the applicant being on the job for at least two years?
- Credit Record: Does the bank have standards for lending which excludes from the credit history regular payment of rent, utilities, doctors or the local grocer?
- Appraisal Practices: Does the bank have appraisers that make downward adjustments on the value of a home for "functional obsolescence" because it or the neighborhood is over a certain age?
- Private Mortgage Insurance: Does the bank have insurance companies that reject coverage based on some or all of the underwriting standards listed above?
The problem of predatory lending practices.
This is a problem that effects middle class families, as well as the working poor, but such practices are most especially targeted to lower income families and the elderly that don?t usually qualify for well regulated loans. Faced with a crisis like the purchase of a car, a major repair to their home, or a hospital bill, many people are forced to apply for a loan from a finance company or subprime lender.
Some of these lenders require the payment of high annual interest and points, pad closing costs, add recording fees, bogus broker fees and the like. The applicant must often buy credit life insurance, often for excessive amounts and roll all the premiums up-front to be financed as part of the loan.
The purpose of these terms is to make a lot of money. Also, it is to make sure that the person will not meet the terms of the loan. This forces the person into another round of refinancing so more fees and charges can be assessed until the home is foreclosed on and the borrower?s credit is completely ruined.
Find out your credit score.
The most important information to get a mortgage is your credit score. Score a 750 and your excellent credit history will likely make your dream home a reality. Rate a 525 or lower and your only hope will be a subprime lender or finance company. Until recently, this credit scoring system was a secret. However, now for a small fee, Fair, Issac & Company and Equifax Credit Information Services will provide you your score, information on how it was arrived at and things you can do to improve it. If you want to get your credit score go to their web site (www.myfico.com) or write Equifax Credit Information Services at P.O. Box 70241, Atlanta, Ga. 30324.
Where can you get help?
Often, the only way you can find out if your a victim of housing discrimination or predatory lending is to contact your local Fair Housing enforcement agency and request that they investigate a particular lender and their loan officers.
For people with a disability, the U.S. Department of Housing & Urban Development (HUD) also has made a telephone number free of charge for the hearing impaired (1-800-927-9275), also interpreters, tapes, Braille materials and assistance reading and completing the forms. HUD?s web site also has information about filing a complaint (www.hud.gov)
Jones v Alfred H. Mayer
Today that promise remains unfulfilled for many Americans because of the color of their skin, their race, ancestry, religion or mental or physical disability. The most important consumer purchase a person will make in their life time is buying a home. Under the Federal and California fair housing laws you have the right to be treated in an equal and impartial manner by a financial institution.
What is prohibited?
When applying for a loan, refinancing a mortgage or home equity loan no one can take the following actions for reasons of race, color, national origin, religion, sex, martial or family status or disability:
- deny a loan
- establish terms, conditions, or privileges different for the giving of a loan, for
example giving the loan only with a higher interest rate or downpayment
- charge different costs for services like making an application, doing an
appraisal, closing costs etc.
- be targeted for a loan that has fees, terms or rates that are excessively high
i.e predatory
What Should I look for?
If you experience one or more of the following you may have been discriminated against.
- Property Standards: Does the bank have standards for lending based on the maximum age or minimum property value?
- Minimum Loan Amounts: Does the bank have standards for lending based on a minimum loan amount?
- Subjective Lending Criteria: Does the bank have standards for lending based on the property being well maintained? Is the bank asking vague questions about the applicants character or insisting that the borrower have excellent credit?
- Different Terms for Loan: Does the bank have higher fees on smaller loans; require different downpayments or offer higher interest rates for loans in Hispanic or an African-American neighborhoods?
- Employment Stability: Does the bank have standards for lending based on the applicant being on the job for at least two years?
- Credit Record: Does the bank have standards for lending which excludes from the credit history regular payment of rent, utilities, doctors or the local grocer?
- Appraisal Practices: Does the bank have appraisers that make downward adjustments on the value of a home for "functional obsolescence" because it or the neighborhood is over a certain age?
- Private Mortgage Insurance: Does the bank have insurance companies that reject coverage based on some or all of the underwriting standards listed above?
The problem of predatory lending practices.
This is a problem that effects middle class families, as well as the working poor, but such practices are most especially targeted to lower income families and the elderly that don?t usually qualify for well regulated loans. Faced with a crisis like the purchase of a car, a major repair to their home, or a hospital bill, many people are forced to apply for a loan from a finance company or subprime lender.
Some of these lenders require the payment of high annual interest and points, pad closing costs, add recording fees, bogus broker fees and the like. The applicant must often buy credit life insurance, often for excessive amounts and roll all the premiums up-front to be financed as part of the loan.
The purpose of these terms is to make a lot of money. Also, it is to make sure that the person will not meet the terms of the loan. This forces the person into another round of refinancing so more fees and charges can be assessed until the home is foreclosed on and the borrower?s credit is completely ruined.
Find out your credit score.
The most important information to get a mortgage is your credit score. Score a 750 and your excellent credit history will likely make your dream home a reality. Rate a 525 or lower and your only hope will be a subprime lender or finance company. Until recently, this credit scoring system was a secret. However, now for a small fee, Fair, Issac & Company and Equifax Credit Information Services will provide you your score, information on how it was arrived at and things you can do to improve it. If you want to get your credit score go to their web site (www.myfico.com) or write Equifax Credit Information Services at P.O. Box 70241, Atlanta, Ga. 30324.
Where can you get help?
Often, the only way you can find out if your a victim of housing discrimination or predatory lending is to contact your local Fair Housing enforcement agency and request that they investigate a particular lender and their loan officers.
For people with a disability, the U.S. Department of Housing & Urban Development (HUD) also has made a telephone number free of charge for the hearing impaired (1-800-927-9275), also interpreters, tapes, Braille materials and assistance reading and completing the forms. HUD?s web site also has information about filing a complaint (www.hud.gov)
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