General

Erik asks, are you feeling financially squeezed?

Erik Flexner, who is committed to helping homeowners avoid foreclosure says that short sales are a terrific option for homeowners struggling with unaffordable mortgage payments.  In fact, lenders’ losses due to foreclosure are projected to increase at record rates in 2011, giving them more reason to pursue short sales.  Lenders are projected to incur losses as severe as 85% in foreclosure! Meaning, after deducting the expense of the foreclosure process on a $100,000 loan, they may only get back $15,000!”  Says Flexner “It’s common sense that lenders will be looking toward the short sale solution.  Even though they are accepting less than is owed on the property, they lose far less than in a foreclosure sale.  In fact, in the Playa/Marina areas, short sale transactions have increased by approximately 250%.”  Flexner adds “Oftentimes, the lender is seen as the villain in the situation.  I’ve found that the lenders want to avoid foreclosure just as much as homeowners.”  The free, downloadable report on Erik’s website www.westsideshortsalesolutions.com talks more about working with your lender and details all the foreclosure alternatives available to you.  Download the report and call me today to chat.  I can help you develop a plan to work with your lender and avoid foreclosure.  Erik Flexner (310) 754-8144,  www.westsideshortsalesolutions.com

What is a Mello-Roos District?

Ever wonder what the Mello-Roos assessment is about on your property tax bill? 

How is the tax calculated?  Mello-Roos taxes are typically based on development density, construction square footage, or flat acreage.  However, assessment methods may vary depending on local agency procedures.

How much will the Mello-Roos payment be?  The amount may vary from year to year, but may not exceed the maximum amount specified in the public report when the district was created.  The Resolution of Formation will specify how taxes are assessed in your community and will give you enough information so that you can estimate the maximum amount you will have to pay.

When do I pay these taxes?  Your Mello-Roos tax will typically be collected with your general property tax bill.

What happens if a tax payment is late?   Because the Mello-Roos tax is usually collected with your general property tax bill, the Facilities District that obtained the lien may withdraw the assessment from the tax roll and begin foreclosure proceedings.  Mello-Roos taxes are subject to the same penalties that apply to regular property taxes.

How are Mello-Roos taxes affected when the property is sold?  Since Mello-Roos tax is assessed against the land and is not based upon the value of the property, the tax rate stays the same and cannot exceed the original maximum amount stated in the Resolution of Formation.  As Mello-Roos is a lien against the property, delinquent accounts must first be paid before a sale can close.

Playa Vista Phase II Approved

Playa VistaApproval of the Village draws applause as well as praise and criticism of Councilman Rosendahl   Taken from Argonaut Newspaper, BY GARY WALKER,

Nearly six years after the second stage of development was first approved and after facing a jarring setback from a state appellate court with the recirculation of the environmental impact report, Playa Vista residents have cause for celebration.

The Los Angeles City Council approved the second phase of the planned community’s 111-acre mixed-use component March 26th by a 12-2 vote before a packed council chambers. The Village, which the council greenlighted in 2004, will feature 2,600 residential units, 175,000 square feet of office space and 150,000 square feet of retail space. A name-brand supermarket will serve as one of the linchpins of the shopping center, say Playa Vista officials, who are eager to begin the next phase of their vision of 21st century urban living.

Steve Soboroff, Playa Capital’s principal, said that he feels a sense of validation now that the project has been greenlighted.

“Our goals have always been to have good public policy in helping the community and the region,” Soboroff told The Argonaut days after the council vote. “It’s always been about making traffic work better, creating jobs, parks and housing.

 

 

 

“I’m delighted for the people who live (in Playa Vista) and for the people who live in the surrounding areas.”

Playa Vista resident Lily Liu Chan is also happy that the Village has been given the council’s stamp of approval.

“It seems like it’s been a long time in coming,” said Chan as she cradled her baby daughter Calliope and kept a watchful eye on her two-year-old son Benjamin in Concert Park.

The Village had been delayed due to a 2007 state Supreme Court decision that sent the project’s environmental impact report back to the council for a second review.

The court ruled that the council violated the California Environmental Quality Act (CEQA) following its approval and certification of the EIR, which permitted construction for the development’s second phase.

“The (environmental impact report on the project) was deficient in its analysis of land use impacts, mitigation of impacts on historical archaeological resources, and wastewater impacts,” the court declared in its ruling.

City Councilman Bill Rosendahl joined his colleague Paul Koretz in casting his vote against the project. Rosendahl, who represents Playa Vista in the 11th Council District, cited a pledge he made as a council candidate in 2005 as his reason for voting no.

“I voted with my conscience,” Rosendahl told The Argonaut March 25th. “It’s the hardest decision that I’ve made in my political life.”

The councilman discussed the pledge March 11th after the promise was brought to his attention by the Argonaut following the Planning Commission’s recommendation to approve the Village March 9th. The pledge, which was also signed by then- mayoral candidate Antonio Villaraigosa, states that the candidates, upon their election, would not vote for Phase II under certain conditions, which included Phase I being completely built and fully occupied.

Tom Francis, director of the Santa Monica-based Ballona Wetlands Trust, believed the councilman would honor his pledge. In an interview last month, Francis expressed confidence that Rosendahl would not back away from the promise he made as a candidate for City Council five years ago.

“We know Bill to be a man of integrity,” Francis said after the council vote to approve Phase II. “In spite of intense pressure, he stuck to his pledge.”

Rosendahl said that the first stage of Playa Vista has thousands of residents but the commercial portion was “stumbling along” and had vacancies in the residential and commercial sections. The councilman, who convinced Playa Vista officials to rebury thousands of Native American ancestral remains in the first phase of the planned community’s development, said it was a matter of not breaking his promise to his constituents.

“All that we have in this life is our word, and our word is our bond,” he said.

Rosendahl pointed out that he negotiated with Soboroff to add 260 units of affordable housing and an agreement to accelerate the parks and supermarket for the Village.

For his part, Soboroff said he understood Rosendahl’s decision to vote against the project, which he learned the day of the vote.

“I was disappointed,” the developer admitted. “But I think that he felt that it was important to live up to his word.”

Chris Udall, a five-year homeowner at Playa Vista, was not as understanding.

“I think that (Rosendahl) represents the 11th District very well except for his constituents in Playa Vista,” Udall said. “I don’t believe that the pledge that he took five years ago is a legally binding agreement, and what he did by voting no is a signal that he doesn’t care about jobs, more taxes for the city and more revenues.”

Steve Donell, chair of the Neighborhood Council of Westchester-Playa, had mixed feelings about Rosendahl’s vote.

“I find (Rosendahl’s no vote) to be an example of a promise kept on the one hand, and inconsistency, lack of perspective and pure politics on the other,” Donell, who lives in Playa Vista, wrote in an e-mail response. “The councilman ran partially on a platform of opposing Playa Vista. He made that campaign promise and he has kept it.

“However, at the end of the day, our councilman did not vote based on the facts and the law; rather, he voted based on a campaign promise to oppose Playa Vista,” Donell continued. “What is very disappointing to me as a resident of Playa Vista as well as a constituent, is that he exercised his vote in a manner that simply did not address the issue, nor did it address the facts or the law. This is pure politics at its very worst.”

Kathy Knight joined Francis in her admiration for Rosendahl keeping his word.

“We are very glad that Councilman Rosendahl voted against the project and upheld his pledge,” said Knight, conservation chair of the Sierra Club’s Airport Marina Group.

Soboroff says that the opponents of the Village have not done anything with the wetlands west of Lincoln Boulevard that Playa Vista sold to the state several years ago, and have objected to how he has improved the land for its residents and tenants.

“They have not walked the walk,” he said. “It leads me to believe that they’re just in this for the sport of it.”

Soboroff said not having the shopping center for the residents would have interrupted the synergy of the two development phases and the completion of the planned community’s vision of having recreation and amenities within walking distance.

“It would be like having Thanksgiving dinner without the turkey,” Soboroff asserted.

Udall said he is happy that the Village can now go forward, but remains wary that some of the environmental organizations that filed lawsuits to halt Phase II might do so gain.

“It’s good that it was approved, but there’s nothing to stop those who are against it from trying to stop it with litigation,” he noted.

Francis accused the councilmembers who voted in favor of the Village of not having the city’s or the residents’ best interests in mind.

“Those 12 councilmembers have catered to special interests for so long, they really don’t know any other way,” he accused.

Rosendahl realizes that he has angered Playa Vista residents, but was compelled to honor his promise to them.

“I received over 1,000 letters and e-mails saying, ‘honor your pledge,’” the councilman said. “It was a last minute decision that I made as I was driving downtown on the day of the vote.

“It was very tough, but I’m at peace with myself.”

Thomas Schulte had perhaps the strongest words for Rosendahl.

“I think that the councilman should grow (some courage),” said Schulte, a certified public accountant who has lived at Playa Vista for six years. “This was one of the most passive-aggressive moves that I have ever seen.”

Despite the litigation, the continued animosity and the delays in getting to this point, Soboroff is ready to begin putting the finishing touches on his dream of having a community where residents play, work and shop within blocks of where they live.

“It’s the completion of a long held vision,” he concluded. “This is the future of urban America.”

Will the April 30th expiration of the $8,000 homebuyer tax credit cause your property value to slump again?

Will the April 30th expiration of the $8,000 homebuyer tax credit cause your property value to slump again? Many of my buyers are scrambling to buy before the tax credit ends. Even my own brother is racing towards this goal.  So it is definitely spurring people to buy. To qualify, a buyer must be in escrow by April 30th. What will happen to your property value AFTER April 30th? Some say that the tax credit will be extended for a second time. Others say the economy has sufficiently recovered and it won’t. Even more say that the market will slump again after it is gone. Call Erik to chat about the timing of your sale, and the effects of the tax credit on your value.

Why You Should Hold Title To Your Home in a Living Trust

After months of dealing with the complex process of buying a new home – from selecting an agent, to viewing properties, to securing a loan, to negotiating a purchase price –homebuyers often think that once the ink is dry on the escrow papers, the deal is done. However, taking the extra step to determine how best to hold title to your home can potentially save thousands of dollars in fees and taxes, and prevent costly title defects that can hinder your ability to sell the property. Holding title to your home in a living trust – as opposed to “community property”- is the single best way to avoid these complications. The living trust is a self-settled revocable trust (you created it) that, when someone dies, causes their estate to avoid the public probate process. Like a will, a trust specifies who is to inherit your home and other assets when you die. Holding title to your home and your other assets in a trust ensures that your instructions on how to distribute them will be carried out after you die. Additionally, if a husband and wife hold title to a home as community property, instead of in their names as trustees of their living trust, and one of them dies, the surviving spouse is prevented from selling the residence as quickly as it would be if it were in a living trust. One of the other reasons for utilizing a living trust is to avoid the exorbitant statutory fees associated with the probate process. For example, on an estate of $1 million, fees will run about $46,000 ($23,000 payable to the attorney and $23,000 payable to the Executor), whereas the costs of administration of a living trust is generally much, much less. In addition to real estate, assets including liquid cash accounts, savings accounts, stock brokerage accounts and personal effects like jewelry, furniture and other personal items can also be transferred to the living trust. The consequences of your home being in the name of an individual or as “community property” between spouses or registered domestic partners, upon the death of you or your loved one, is a formal court proceeding known as probate (proving of the Will). If you had a living trust upon your death and your successor trustee can prove that you intended for your home to be in it, a quicker and easier judicial process known as the “Heggstad petition” may result in a court order transferring the assets to the successor trustees of your living trust. The probate process is generally a nine-month minimum period whereas the “Heggstad petition” process can usually obtain the needed court order in about six to eight weeks. Both the probate process and the “Heggstad petition” court order transfer the assets to the successor trustee of the living trust. When an attorney assists with the creation of the living trust, he generally prepares and assists with the recording of deeds with the appropriate county(ies) transferring title to the trustees of the trust. Often times though, certain assets do get transferred to the living trust, but somehow are transferred back into the individual name of the settlor(s) of the trust. This happens most often with the family residence as a result of a refinance. Some lending institutions want the borrower’s name on the deed before they will lend and as a result, ask that the property be deeded back to the settlor of the living trust before the loan can be completed. This is just fine, however, one should never allow for their real estate to be transferred out of the living trust without clear instructions that it is to be transferred back into the name of the living trust immediately after securing the loan.

Indications of an emerging rebound of housing in the Playa/Marina condo market

Just read the article below and thought it definitely applies to anybody currently shopping or selling in the Playa Vista, Marina del Rey or Playa del Rey condo markets.

Condos in a failed Marina del Rey complex built during the height of the real estate boom were auctioned at a discount Sunday with buyers spending $20.5 million for 41 units in two competitive hours of bidding.

The complex, called Element, at 4141 Glencoe Ave. was built by John Laing Homes and intended to appeal to young, single buyers, according to a report in The Times in early 2008. At that time, the builder hoped to sell units at prices ranging from about $569,000 for a 1,055-square-foot unit to $1.5 million for a 1,594-square-foot penthouse.

Only nine units were sold and the property was taken over by a consortium of lenders including Bank of America, Bank of the West and City National Bank.

Sunday’s sales prices were 33% over the opening bids and a total of 525 bids were received in two hours, according to the court-appointed receiver, Taylor B. Grant of Newport Beach-based California Real Estate Receiverships. The average price was just over $500,000.

“We think the results tend to indicate an emerging rebound of housing in Southern California,” Grant said.

– Roger Vincent, Los Angeles Times Article

Latest News on the Village!

Playa Vista’s long-awaited village delayed for more than two years because of a court ruling will get another look this week from the Los Angeles City Planning Commission.

Developers hope the panel on Thursday will recommend that the City Council approve a new environmental analysis and package of land-use entitlements that could push the second phase of Playa Vista a step closer to completion.  But even then, it will likely face challenges from determined opponents.

The Village is planned for 111 acres within the master-planned development, bringing 2,600 new homes, 150,000 square feet of retailers, 175,000 square feet of office space and 40,000 square feet of community uses to an area described as “the heart” of the neighborhood.

Residents, many of whom are expected to be in the audience Thursday, are eager to see construction start. This is the exact same project that won Los Angeles City Council approval in 2004.

Almsot all of the analyses that are required are completed. Not only is Playa ready, but the community has been waiting forever for this approval.

Although roughly half of the roads have been paved and the infrastructure is in place, however, continuation on The Village was stopped in September 2007 when an appellate court ruled that its environmental impact report was flawed.

Previously, a Los Angeles Superior Court judge had said that the city and Playa Vista provided decision-makers with adequate information. But the appellate court, which combined two separate lawsuits on the matter, found the environmental report lacking in three areas.

The judges questioned the analysis of the project’s effects on the nearby Hyperion wastewater treatment plant, the treatment of human remains and artifacts dating back 3,500 years, and whether the city accurately described permitted land uses for the site.

On the last issue, the court said the EIR did not acknowledge that the retail complex would “dramatically increase the amount of development permissible” on the land. Therefore, Playa Vista has been required to seek various land-use amendments that will accommodate a higher-density project.

Playa Vista was counting on Caruso Affiliated to develop its village, which will be within walking distance of residences in its first phase, now home to more than 6,000 people. Caruso designed The Grove in Los Angeles and the nearby Waterside shopping center at Lincoln Boulevard and Fiji Way in Marina del Rey.

The agreement has expired by now but hoping he may reconsider.  The project’s revised environmental report has won endorsements from various community groups, including the neighborhood councils of Westchester-Playa del Rey and Del Rey and the LAX Coastal Area Chamber of Commerce, among others.

What: The Los Angeles City Planning Commission considers a revised environmental impact report and various land-use approvals for The Village at Playa Vista

Where: Los Angeles City Hall, 10th floor, 200 N. Spring St.

When: Meeting starts at 8:30 a.m. Thursday

Information: http://cityplanning.lacity.org/

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