U r b a n T r e k k e r

10 Questions to Ask the Condo Board

Here are the questions you should ask before you buy. You or your agent might want to contact the condo board or management company.

Via NAR. (Click on document for larger image).

1. What percentage of units is owner-occupied? What percentage is tenant-occupied?
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place?
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation?
5. What does and doesn't assessment cover -- common are maintenance (CAM), rec facilities, trash, snow removal?
6. What special assessments have been mandated in the past five years?
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuite, reserves can be depleted quickly.
9. Is the developer reputable?
10. Are multiple associations involved in the property?

You can actually find the answers to some of these questions in a condo document upon ratification of a sales contract. In a new construction or conversion, you have 10 days to review the document. However, on a resale of an existing house -- you only have 72 hours (or 3 days) to review the document. If for some reasons, you don't like what you see in the doc, you can void the contract before the 72 hours lapses. No question ask.

The number 1 question -- is very important to the lender. The ratio of owner occupied vs. tenant occupied will determined whether the lender can financed your purchase. The lower the ratio of owner occupied vs. tenant, the more marketable the property is. The lender will need the numbers from the management company.

Rosslyn Central Place

A new proposal for Rosslyn neighborhood in Arlington, Rosslyn Central Place, a new skyline tower is heading its way for County approval. We're talking about a redevelopment project slated for the center of Rosslyn. The Central Place, is a proposed development for a million square foot mixed-use development with its observation deck... overlooking DC, of course. The two-level observation deck expected to draw some 400,000 visitors annually.

Central Plaza Observation Deck

The first proposal was nixed. Hat tip to Beyond DC for the heads up.

Baring further changes, the region’s new tallest skyscraper will be a 388′ tall office building, but sitting at a relatively high elevation, it will appear to be 470′ feet above the Potomac River – nearly 100 feet higher than any other building in Rosslyn. Except, that is, its residential twin, which will be 342′ tall, or 424′ above water level. The buildings will be clad in reflective blue glass and have a unique curvilinear design. The taller building will include a public observation deck on the 29th floor, near the top of the building. Finally, the plan includes a new “central square” for Rosslyn, situated between the two new skyscrapers and directly across North Moore Street from the entrance to Rosslyn Metro.

Central Place Plaza

The "Central Place" block is bounded by Moore and Lynn Street between 19th Street North and Wilson Boulevard in Rosslyn. The redevelopment of Rosslyn will include the block where McDonald's, Tom Sarris' Orleans Restaurant and two small buildings. These buildings will be replaced by a central park theme sort like a town square. The park would be located directly across the street from Rosslyn Metro station and surrounded by street level retail shops.

Earthlink Gets City of Alexandria

Good move for the City. Yesterday, City council agrees to a proposal for Earthlink to build and operate citywide wireless network. Earthlink would build, maintain the network at it's own expense! No taxpayers money or city money involves. To recoup its investments, Earthlink would sell their wireless access to homes and businesses. The goodies for Alexandria is -- access in public places would be FREE. Yes, free.

Although other cities have experimented with wireless hotspots and limited coverage areas, Alexandria will be one of relatively few jurisdictions with complete wireless coverage. Among the localities that do have citywide networks, many involve taxpayer funding, unpredictable advertising revenue, or limited community benefits. Alexandria’s innovative network model, in which the public receives significant benefits without any government funding, is believed to be the first of its kind in Virginia and the Washington, D.C. region, and among the first in the nation.

The good thing is the contract is not exclusive. That means other providers can come in and offer the same service to the City.

Source: City of Alexandria

What is A Loft?

There are different interpretations for the meaning of loft. In one development, a loft might actually get you a room on the second floor of an open plan. Then at another development, you'll get the room with exposed ductwork. Which is which, then?

For the area, we don't have a governing body that regulates loft, loft thing per se.  Interestingly, New York City is probably one of the few municipalities in the nation that have a Loft Board.

Image: a NY City loft [CoolTown]

Here is the definition of loft, through Wikipedia.

The term loft mainly refers to two different types of rooms:

1. An upper room or story in a building, directly under the roof, used either for storage (as in most private houses), for a specific purpose, e.g. an "organ loft" in a church, or to sleep in (sleeping loft). In this sense it is roughly synonymous with attic, the major difference being that an attic typically constitutes an entire floor of the building, while a loft covers only a few rooms, leaving one or more sides open to the lower floor.
2. A large adaptable open space in a factory, warehouse or other commercial space, or a type of residence that results from the conversion of such a room. Such spaces generally contain very high ceilings, large windows, and concrete floors and ceilings.

Image: a DC loft (Dewita)

There you go, it turns out that there are two meanings for lofts. Some more "lofts definition," according to CoolTown Studios. There are [A]rtist lofts, Demi Lofts, New Construction Lofts (Loft Lite)." How about this, hard loft vs. soft loft?

"Unit interiors of “hard lofts” typically have high ceilings and commercial windows and are either minimally finished, limited to architectural elements such as columns and fin walls, or unfinished, with no interior partitions except those for bathrooms.

Unit interiors of “soft lofts” may or may not have high ceilings and are fully finished, with the interiors partitioned into separate rooms."

Confused yet? Don't worry. Whatever you think is a loft -- it could be a loft or look like loft.

For the DC metro region, we get two different types of lofts. Conversion lofts and new construction lofts. For condominiums, a builder might offer a combination of lofts and classic condos. Lofts would be either build for the first and second floors. And the regular condo style (no exposed ductwork, the regular ceiling heights) above the lofts, to name a few developments like Park of Courthouse, Elan, Residences at Station Square, Carlyle Square, Shirlington Village (recently completed) and Park Crest Lofts. At other developments, loft is the only choice you have, like the Lofts in Columbia Heights.

Image: Northern Virginia lofts (Dewita)

Can you tell the difference now?

If you are into lofts, there are more choices available in the District than across the river, in Northern Virginia, simply because there are more older warehouses or industrial buildings built in the District. As always, there are new construction lofts and resale.

PN Hoffman Friendship Hts. Affordable Housing

In light of Thanksgiving spirit, good news for qualified buyers. I received email from PN Hoffman about their joint program with Greater Washington Urban League to set aside condo units for affordable housing. Granted that only 5 units is available at Chase Point Condominium, intersection of Military Ave. NW and Western Ave. NW, which is across from Friendship Height's metro. Via email.

"PN Hoffman is making available 5 condominium units at its Chase Point development (located at 4301 Military Road NW) to qualified low income purchasers.  See the attached fact sheet for details about these residences.  The selection and approval of purchasers for these units will be administered by the Greater Washington Urban League and its affiliated community-based organizations.  These residences will be ready for occupancy in late February 2007."

This program is administered by the Greater Washington Urban League. There is income restrictions. Furthermore, buyers will receive assistance from the District of Columbia Housing and Community Development Home Purchase Assistance Program. Typical assistance would be in the form of down payment and closing cost assistance.

Condos at Chase Point, priced from the $800's and up. However, the five condos are priced in the upper-$180's. The fair market value for the affordable condos -- are in the $600's range. If you're qualified, hurry up. The deadline for submission of your application is December 8, 2006. More info, here.

Market Tracker: Development Update

Here's a summary of development news from across the Washington DC Metro region.

* Prince William Might Ban Housing Construction [Washington Post].
"Prince William County will consider a radical proposal to get the governor and legislature to do something about Northern Virginia's traffic-choked highways: Stop building houses for a year. Supervisor W.S. Covington III (R-Brentsville), who has been on the board for three years, introduced a resolution this week to freeze housing construction for 12 months. Next month supervisors will discuss his proposal, which has prompted lively reaction from his colleagues, the building industry and Gov. Timothy M. Kaine (D), who said during his campaign that development should be linked to transportation improvements."

* Scaling Southeast's Washington Heights [Washington Post]
"Moments after she signed the papers to purchase a condominium in Southeast Washington, Denise Kuenzel thanked the man who rehabbed the brick building and made it possible for her to own her first home. Then, after he left the room, she broke into tears."

* Crosstrail Proposal Moving Through Board of Supervisors [Loudoun Times-Mirror]
"Nearly 50 people spoke at last week's Loudoun County Board of Supervisors public hearing on Crosstrail, a proposed development just south of Leesburg, between the Dulles Greenway and Leesburg Executive Airport. Fairfax-based Peterson Cos. is proposing the mixed-use center, which would include a movie theater and restaurants and 1,200 residential units."

* New Plan for Power Line Tracks Route 66 [Rappahannock News]
"Dominion Virginia Power presented its case Friday to the Times Community Newspapers editorial board for building a 40-mile, 500,000-volt power line through Loudoun, Fauquier and Prince William counties. Dominion will finalize maps of specific routes that are being considered for the power line before it holds public workshops, starting Nov. 28 in Middleburg. According to the revised study area, it appears the most likely path tracks Route 66 from Allegheny Power's Meadowbrook substation south of Winchester to Dominion's substation east of U.S. 15 in Aldie. Dominion has not confirmed this."

* Groundwork Begins for an Urban Future [Connection]
" After a dozen meetings and months of study, a group led by Planning Commissioner Walter Alcorn (at large) has decided how to manage development around Metro stations. "We've put together the policy plan that will help guide development into the future," said Alcorn, a Reston resident. The outcome is a proposed definition for transit-oriented development that will be incorporated into the county's Comprehensive Plan.

* Site Loss to Affect Downtown Development [Herndon Connection]
" Several changes made to requirements on development proposals in recent months have changed the proposals that could be presented to the Town of Herndon early next month as part of a joint downtown development project, according to town officials and developers."

* One Loudoun Heads for Work Session [Loudoun Connnection]
"The Board of Supervisors voted to send proposed development One Loudoun to a work session. The decision followed the public hearing Tuesday, Nov. 14, where 17 members of the public spoke on the proposal. Supervisors voted 8-0-1 to send the project to a Dec. 7 work session. Supervisor Bruce E. Tulloch (R-Potomac) was absent for the hearing.
McLean-based Miller and Smith Land Inc. has proposed the rezoning of approximately 358 acres at the southeast corner of Route 7 and Loudoun County Parkway. If approved, the proposal would allow for the development of 1,569 homes, including multi-family units, single-family townhouses, single-family homes and affordable dwelling units. The proposal also includes up to 4,439,200 square feet of office, commercial and retail."

* Tyson Coalition Isn't Giving Up Hope [Sun Gazette]
When the Federal Transit Administration on Nov. 20 approved the alignment of rail lines for Phase 1 of the Dulles Metrorail extension, project officials hailed the decision as a done deal. “This project cannot be built without federal funding and the risk of losing federal funding increases every day with escalation, changes in commodity prices, and increasing competition for scarce federal dollars,” said Matthew Tucker, director of the Virginia Department of Rail and Public Transportation, in a media statement. “After 45 years of planning, the time to put a shovel in the ground is now.”

* Shields Says Steep Property Asking Prices Delaying F.C.'s City Center [Falls Church News Press]
$10 Million per Acre Rates are Stalling Efforts
The City of Falls Church’s Acting City Manager Wyatt Shields conceded that asking prices are as high as $10 million an acre for commercial property in the downtown corridor of the City of Falls Church targeted for development as a new City Center.
In remarks to the monthly luncheon of the Greater Falls Church Chamber of Commerce, Shields that the high prices have effectively ground City Center plans to a halt for now, at least on the north side of the two blocks of W. Broad to the west of N. Washington.
“There is going to have to be a market check to bring down prices there,” he told the business audience in his first major public address since taking over as city manager over the summer. Currently, he said, the asking prices are “putting a damper on possibilities” and that, as a result, progress on the City Center will have to be “on a phased basis.”

* Landowner Await News on Intercounty Connector [DC Examiner]
" About 200 landowners along the proposed route for the intercounty connector could soon receive a notice in the mail telling them that state officials intend to acquire a part of their land to make way for the 18-mile highway. Maryland transportation officials have known for months which properties could be subject to "partial acquisitions." But they have not sent notices to nearly 200 landowners who may be forced to give up a slice of their property through eminent domain. The state has held off because the right of way for several sections of the highway has not been officially approved and could change, according to transportation officials."

* Old Convention Center Plans Finalized [DCist]
UPDATE: We've now gotten word from intrepid boy reporter Kriston Capps that the D.C. Council's Committee on Education, Libraries and Recreation voted to table Bill 16-734, in a motion brought by At-Large Councilmember Carol Schwartz, which carried 3 to 2 with Marion Barry, Schwartz and surprise vote Vincent Gray against Kathy Patterson and Phil Mendelson. What does this mean for the future of Williams' library plan? Hard to say. Tabling a bill is usually a pretty good way to kill it without technically doing so, but it's certainly conceivable that incoming Mayor Adrian Fenty, who has expressed his support for the new library in general terms, could resurrect his own version of the plan at a later time. For now it seems those in favor of preserving the Mies building can rest easy for a while longer, though allow us to be the first to chime in that the pressing issue at hand — the fact that this city desperately needs an improved main public library (not to mention all the will-they-ever-open-again branches still in limbo) — ought to be a top priority for the new mayor and council.

* Municipal Economic Development [Rebuilding Place in the Urban Space]
"Today's Post has an interesting article about PG County Executive Jack Johnson (the Post did not endorse him in the recent election) and "controversy" over his handling of the National Harbor development just south of DC. See "Pr. George's Harbor Deal Deepens Rift: Johnson Terms Ceded Too Much, Curry Says." This development is already causing serious competition with DC in terms of hotel-related conference business, since there will be a conference facility on site."

Flipper Nation

A fake online show. Is this for real or what...

What do you think?

Happy Thanksgiving!

Wishing you and your family a safe and wonderful Thanksgiving.

- Dewita

Calling RESPA Police

Forming strategic business relationships is a common practice in the business world. But, there is a law applicable to real estate industry about disclosing business relationship a company has. The law known as RESPA, a short name for Real Estate Settlement Procedures Act. One of the forms you sign when you buy your home, is this RESPA form. It is a law for the industry pro to disclose the financial relationships their company have with other companies, or subsidiaries. The housing industry is probably one of the highly regulated industries out there. In my opinion, the most regulated industry would be financial services.

When a builder provides you with incentives, it usually comes with strings attached. You may have to do business under-one-roof (or with affiliates). Meaning, you have to use their settlement company or, you might have to use one of their preferred lenders. That's part of the deal. According to Washington Post, HUD has become increasingly active in policing the building industry in case of disputes between consumers and builders.

Via Washington Post.

In one case outlined by HUD officials in an interview, a builder canceled a sales contract and seized an $11,845 good-faith deposit when a buyer refused to use the builder's affiliated mortgage company. Under RESPA, builders and others generally are prohibited from requiring the use of a specific lender or title company as a condition of a sale.
........

In a case involving incentives dangled by many builders to attract buyers in soft markets, a prospect was offered a "free" morning room addition to the new house. The builder said the addition was worth about $13,500. The only hitch was that the purchaser would need to use the builder's mortgage subsidiary. The builder assured the buyer that the rates, fees and terms offered by the subsidiary were "very competitive" with outside lenders and brokers, according to the complaint.

But when the buyer checked out the competition, he found the subsidiary's fees to be bloated -- a $5,400 "origination" charge, for example -- and far more costly than in the regular market. The buyer complained to investigators at HUD, arguing that the builder was engaged in an intentionally deceptive practice. After investigators hinted at legal action, the builder agreed to waive the $5,400 fee and threw in the $13,500 morning room, too, according to HUD.

The take home message is when you are buying a home: Be prepared. This is true specially when you're dealing directly with builders. Make sure that you compare the benefits with what's available out there and decide if it's worth it. Builders are in the business to make money. They're in it for the profit. For representation, hire a real estate agent to represent you, because guess what -- the sales rep, who helps you with the purchase works for the builder! So, if things go wrong... you have no representation.

And make sure that if you decided that you are going to hire the service of a real estate agent, you go in with the agent when previewing developments or talking to builders. A builder will honor your agent only... and only if you come in with them the first time around. And sign up the broker registration. Otherwise, if you go in alone, ended up signing a contract to purchase, then later on changes your mind to do it alone and would like to hire a Realtor in the middle of the deal. Sorry, at this time -- you're out of luck. Builder won't honor your request. Because the moment you signed the contract, it is pretty much a done deal. You are on your own.....

To learn more about RESPA, home buyers' rights, visit US Department of Housing and Urban Development site at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.

* Virginia Agency Representation [PDF]

D Street Jinx?

There are at least six homes owned by would be former GOP Congressmen & Congresswoman who lost their seats this election cycle, on the market. All of these homes are located on the 100 block D Street on Capitol Hill.

Via Washington Post.

Incoming Democrats: Alert! Do not, repeat, not, buy a home on the 100 block of D Street SE on Capitol Hill. It may be jinxed.

How else to explain how this solidly Republican enclave -- once home to as many as six GOP House members -- is no more? A few weeks ago, a "for sale" sign went up at the townhouse belonging to Porter Goss, a former House member from Florida who moved over to the CIA a couple of years ago. Then Rep. Mark Foley felt obliged to quit before the election and his district fell to the Democrats.

Becoming elected officials ain't easy. It is not for everyday folks. That's what happened every two years, if they can't keep their seats -- out you go. It hurts when you lose! The GOP House members who are going to pack up and leave soon includes, Rep. Mark Foley, former House member Porter Goss, Rep. Nancy L. Johnson, Rep E.Clay Shaw Jr., Rep. Chris Chocola, and Rep Jim Ryun. I will be interested to have a tour of these houses. That will be quite an experience to see the inside of these homes.