22thoroughbred

Residential Real Estate: How Much More Pain?

All cities must provide affordable housing, usually when a developer gets a permit to build a 20 unit condo project 2-3 of those units MUST be priced as affordable housing to keep the ratio of affordable housing in that city in proportion. But now instead of having to build 2-3 new units and pricing that way, they can now buy 2-3 existing units that are in foreclosure and price as "affordable" I see what I wrote was unclear and made it sound as if the city had to buy the properties, I should have been more clear and said the cities are mandating the builder's buy the properties as a requirement to receiving the bldg. permit. Sorry for the lack of clarity

Residential Real Estate: How Much More Pain?

it's something that is already being done, it's not a new program, all they do now is use existing property rather than building new.

Residential Real Estate: How Much More Pain?

Something very interesting and possibly gamechanging has happened in the Inland Empire in So Cal and I thought i'de share. It is now a law nationwide that municipalities must build new houses and apts. to make up the ratio of low-income housing to regular priced homes, so nationwide eventhough there is a glut of empty homes. builders must continue to build new to satisfy the law. Well in the Tuesday LA Times, there is an article that in the Inland Empire they are now buying foreclosed homes to use as low-income housing, buying, fixing, selling. If this takes hold nationwide, that adds a very large buyer of foreclosed properties, municipalities. If cities can but foreclosures and resell them as low-income, that takes inventory off the market and stops building of add'l. properties. It is amazing it has taken this long for that common sense approach to materialize.