"The End of the Road"
Washington Post (12/15/98) P. B1; Wee, Eric L.

The homeowners association of Colonies of Madrillon, a townhouse community near Tysons Corner, Va., has voted for a new rule prohibiting children from recreational activity in the streets. Violators could face a $25 fine, and supporters of the ban say its purpose is to prevent injuries and to protect the association from a lawsuit. They say that children often block the community's roads when playing in the streets, preventing residents from getting home. The rule only covers playing that blocks traffic, according to board member Edward Howe. But some community residents say the new rule is discriminating against families with children and indicates that these families aren't welcome. Parents say the problem isn't as big as it appears because the children are always supervised. Aside from circulating a petition and debating the issue at board meetings, opponents are trying to reach an agreement with the association that would avoid any lawsuits. This type of rule is becoming more common in many communities across the country trying to protect themselves from lawsuits, according to the Community Associations Institute.

"U.S. Representative J.C. Watts, Jr. Joins Fannie Mae..."
Business Wire (12/14/98)

Fannie Mae recently introduced its new HouseOklahoma program, which will provide $4 billion over five years in affordable and rental housing financing for low-to moderate-income families, rural and Native American residents, and other underserved residents of Oklahoma. U.S. Representative J.C. Watts, Jr. (R-OK), along with officials from Fannie Mae and the Mortgage Bankers Association, helped introduce the program. Fannie Mae officials worked with lenders, real estate experts, and community groups in developing the program, which will work to address affordable housing needs for borrowers in every area of the state. Watts assures, "HouseOklahoma will have a profound effect on thousands of hard-working families and housing partners in some of our state's most underserved areas." Aside from financing, the program also includes homebuyer education and counseling. The most important areas the program will address include expanding rural lending, Native American lending, and senior citizen lending. To meet these needs, Fannie Mae has established relationships with local housing authorities and community groups. Homebuyers can also access homebuying and financing information through Fannie Mae's HomePath.com Web site.

"Computer Underwriting Gooses the Loan Process"
Cleveland Plain Dealer (12/13/98) P. 1-F; Chatman, Angela D.

A growing number of mortgage lenders are using automated underwriting systems in the loan approval process. This approach allows lenders to input borrower data into the system and receive a recommendation for loan approval or further review in minutes. Aside from reducing the time and costs involved in mortgage approval, the purpose of automated underwriting is to make the system more efficient and allow more families to be approved for mortgages. Supporters say that automated underwriting systems, such as Fannie Mae's Desktop Underwriter, streamline the process, reduce costs and paperwork, and make the process more objective. About 60 percent of prime lenders use automated underwriting, and the number of loans processed through automated underwriting is growing rapidly. As a result, more applications from borrowers are being accepted. Debt-to-income ratio of borrowers isn't as important as it once was, but credit scoring, home values, and the ability to repay the loan are increasingly important. Borrowers with poorer credit histories may be referred to an underwriter, who can look at other factors and still recommend the borrower. But some fair lending advocates say the system may actually hurt low- to moderate-income borrowers by weighing their credit histories too much.

"Checklist for Getting Home Ready for Winter"
Baltimore Sun (12/13/98) P. 2M; Menzie, Karol V.; Nodine, Ron

Preparing the home for the winter is the subject of the latest Home Work column in the Baltimore Sun. Karol V. Menzie, a feature writer for the newspaper, and Ron Nodine, owner of Baltimore design-build remodeling firm American Renovator Inc., write that now is the time to caulk gaps that are found around windows and doors. Homeowners should also consider heat-shrink film insulation kits for their old, single-pane windows to stop drafts, as well as weather-stripping on doors. The insulation above the ceiling should be checked. Insulation should be 9 inches thick to insulate the heating space in the house. In addition, now is the time for homeowners who think their heating system needs servicing to have it checked by a professional. Homeowners should also close the inside valve to their outside faucet and open the outside valve; clean out the gutters; put a coat of primer on exposed exterior wood; and use the appropriate sealer or caulk on cracks in driveways, sidewalks, and foundation walls.

"Rate Cuts for Storm Damage Proposed for Texas Coast Homes"
Houston Chronicle (12/12/98) P. 8C

The Texas Department of Insurance has proposed new discounts that could lower windstorm and hail damage insurance rates for some new coastal homes by 19 percent to 32 percent, and commissioner for property and casualty insurance Lyndon Anderson says that the discounts would offer coastal homeowners incentives to build safer houses. Homes in Texas' 14 coastal counties built using construction codes in effect since Sept. 1 would qualify, as would homes in some parts of Harris County. Additions and repairs to existing structures would not qualify for the reductions, but the discounts could be used to reduce rates on some homes that are retrofitted against wind-borne debris. The department says that some of the proposed discounts are required by law; a hearing on the reductions has been set for Jan. 21.

"Aventura to Get Retirement Community"
Miami Herald (12/12/98) P. 1C; Garcia, Beatrice E.

Aventura will soon have an upscale senior retirement community to go with its posh condo towers. Classic Residence plans to build two 27-story towers with 295 apartments for seniors in early 2000, at a site that overlooks the Turnberry Resort next door and the Aventura Mall across West Country Club Drive. Prospective home buyers will be able to find heated swimming pools, a fitness center and spa, activity rooms, a library, dining facilities, and an online computer center at the community, which will be part of the Classic Residence by Hyatt Chain. The $110 million project will also include 29 assisted living units, 16 Alzheimer's/memory support suites, and 60 skilled nursing suites. The Hyatt homes will have an entrance fee ranging from $204,500 to $666,300 based on apartment size, and monthly maintenance fees that range from $1,565 to $4,470. For couples, the fees will be higher.

"Be Wary When Lender Calls You"
Miami Herald (12/12/98) P. 2H; Garton-Good, Julie

Julie Garton-Good warns homeowners in her latest Miami Herald column about lenders that contact consumers directly. One of the scams that is taking place in the home equity lending business is loan flipping, which is when a lender offers a borrower a loan with lower interest rates. However, these lenders make up for the lower interest rate by adding extra points and fees to the loans. Often, lenders contact women over 55 years of age, offering them the chance to refinance their home loans at a lower interest rate. Garton-Good encourages consumers to check out any lender that contacts them directly, obtain a lawyer to look over all documents before they are signed, and make sure they understand all closing costs and fees.

"Builders Are Filling in the Blanks of Leftover Lots"
Washington Post (12/12/98) P. E1; Lelen, Kenneth

Sometimes home builders will try to fill in all the available space around a new development with additional new homes. These types of home sites are known as infill sites, and they are becoming more popular among home buyers and real estate developers in the Washington, D.C., metropolitan area. Typically in these new developments, there is enough remaining space for only a few additional homes. These homes are often located near established communities or popular retail and employment centers, and buyers are looking for easy access to their job or to entertainment centers. Demand for infill homes is driven by a strong economy, location, low mortgage rates, and moderate prices, according to Michael Rose, founder of local home builder Michael T. Rose Cos. Buyers include empty nesters looking for smaller homes that are easier to manage, or move-up buyers interested in a larger home. In Washington, an additional incentive is the high price of housing in the District. But the prices for infill houses can also be high, especially in popular areas such as Bethesda, Md. Builders can also face the problems of finding available infill lots and convincing current homeowners to sell their homes and move into an infill home.

"O'Conor Heads New NRT Unit"
Baltimore Sun (12/12/98) P. 12C; Nusgart, Robert

NRT Inc. has announced the creation of NRT Mid-Atlantic, a new unit that will include the company's latest acquisitions, the firms of Pardoe Real Estate and Pardoe & Graham. James P. O'Conor will head the new entity, which will serve some of the region's most affluent communities through its nine offices and 550 associates. O'Conor, who also serves president and CEO of NRT's O'Conor, Piper & Flynn ERA, comments, "What we've developed with NRT is a mid-Atlantic entity that is now embarking on this expansion in the total mid-Atlantic area," explained O'Conor. It is anticipated that NRT Mid-Atlantic may ultimately expand into the markets of Delaware and Philadelphia. Prior to NRT's purchase, residential real estate in the Greater Washington area was dominated by the independent brokerages of Long & Foster Real Estate Inc. and Weichart Realtors. NRT is a joint venture between Cendant Corp. and Apollo Management LP, and is the nation's largest real estate company.

"Projects May Add Little Value"
Washington Times--Home Guide (12/11/98) P. F22/1; Savage, Henry

PMC Mortgage Corp. President Henry Savage states that most of the improvements people make to their homes generally do not raise the value of the house on a dollar-for-dollar basis. Savage explains, "The value added to a property depends on the kind of improvement and a project's cost." He cites an example of a homeowner who lives in a neighborhood of $250,000 residences spending $30,000 on an elaborate landscaping project. While that person may have the best garden in the community, he/she would be hard-pressed to find a buyer willing to pay $280,000 for the home when it comes on the market. According to Savage, the home improvements most likely to add to a house's value are room additions, remodeled kitchens, and finished basements.

"Designing Home Offices"
Fine Homebuilding (11/98) No. 119; P. 92; Sewall, Jock M.

Home offices have dramatically changed today's business practices. There are many advantages to having a home office, such as a more flexible work schedule and lower costs, but a home office must be planned carefully to be successful. It must be practical to the needs of the home-based business owner, and it must be private and separate from the rest of the house. To meet these needs, the office can be either inside the house but in its own room, or in another building close to the house. Everything that is included in the office must be convenient, meaning that spacing is important. The best minimum size is about 6 feet by 6 feet, but it may need to be bigger when taking into account furniture, copiers and printers, and storage space. The size and spacing of shelves, drawers, counters, and desktops will also vary. Aside from these internal office requirements, the office must also be private. The best location may be a garage or an outside building. Other rooms in the house may be acceptable, but they can also be distracting. Additionally, the home office should have its own separate entrance so visitors don't have to go through the rest of the house. Because of parking requirements, the home office should only consist of two or three employees. Other needs that must be met include power sources for printers, fax machines, and other office equipment; and separate phone lines for telephones and fax machines. Finally, installing a security system may be helpful, especially if the office has a lot of expensive equipment.

"Does Apartment Market Have Renewed Lease on Life?"
Miami Herald (12/07/98) P. 13; DeLollis, Barbara

According to a recent Standard & Poor's (S&P) survey, the apartment industry is in danger of overbuilding in no less than 58 regional markets around the United States. In several of the markets, S&P researchers found that "the owners of apartment properties will find it difficult to maintain occupancy and rental rates for the next year." From January to July of this year, building permits and starts for single-family homes and multi-family housing units outpaced the rate during the same seventh-month period of 1997. That's according to Peter Kozel, research director for S&P's structured finance division. Among those markets approaching a state of overdevelopment is Miami, whose homeownership levels trail behind a number of other Florida cities.

"Saving Energy With Reflective Roofs"
Home Energy (12/98) Vol. 15, No. 6; P. 9; Konopacki, Steven; Parker, Danny

Results of 11 case studies of reflective roofing systems have demonstrated that heating and cooling costs are cheaper for homes with reflective roof surfaces than for houses with conventional roofs. Perhaps the most significant finding from the study, performed by the Florida Solar Energy Center, was that the presence of highly insulated ceilings in homes with attic ducts appeared to decrease savings. Houses with R-7, R-11, or no insulation at all saved more than twice as much as homes with R-19 or R-25 insulation. Much of the savings were driven by thermal interactions between the duct system and the attic space. Because the experiments were conducted in warmer climates, researchers sought to determine what impact reflective roofs would have in other regions. To find out, an improved version of the DOE-2.1E simulation program was created to better calculate attic thermal performance and the interactions of duct systems. The simulation model was successfully compared with measured data from the 11 Florida locations, which closely matched the monitored effects. Residential prototypes were then created for both new and existing construction in 14 different climates around the United States, allowing the model to determine the influence of reflective roofing on energy use in those 14 locations. The results were favorable in all regions except for northernmost areas and in cool, cloudy regions.