Eminent Domain In The Name Of Affordable Housing? #489

Eminent Domain In The Name Of Affordable Housing? #489


Happy Valentine’s Day. It’s Aaron Norris with the Norris Group. It is February 14th, in case you didn’t remember that, and did you hear about Los Angeles about to do eminent domain on a property owner all in the name of affordable housing? That and much more as we cover the biggest headlines in real estate. Don’t miss the radio show and podcast this week. We’ve got Aaron Mazzrillo back. We talk a little bit more about marketing and what kinds of platforms he likes to use. The term wholesaler is a little bit of a dirty word, and we talk about what makes a good one these days, which areas in Riverside are an opportunity zone and what he thinks about ADUs and lots of other things on the second show with Aaron Mazzrillo. Don’t miss it. The fourth quarter saw an 8.8 increase in new home sales, the biggest increase in over two years. Home prices increased 7 percent last month as housing supply decreased by 7 percent, and mortgage rates increased slightly with 30-year rates now at 3.47% and 15-year rates at, oh, there’s that 2 again, 2.97. In honor of Valentine’s Day, I won’t bore you with a whole bunch of cheesy headlines on Valentine’s Day stories in real estate, but I do want to read some because there’s some really adorable ones. We’ve got Six Ways to Lavish Some Love on Home Sweet Home. Welcome Home, Honey. How to Feng Shui Your Decor for Love. Valentine’s Day special: the Best Cities for Singles to Buy a Home and Find a Mate. Single on Valentine’s Day? Eight Items That’ll Make Staying Home, I like this one, Eight Items That’ll Make Staying Home Alone Suck Less. And then finally and my most favorite, Romancing the Home: 14 Love Nests for Valentine’s Day. All right. Which housing markets come to your mind when you think about tech expansion? Of course, it’s markets like Seattle, Austin, San Jose. You know. Well, Zillow analyzed market conditions in 42 other large metro areas nationwide, focusing on five factors that could suggest a market ripe for tech growth. And we talked about this a little bit in Turmoil, like how do you identify those other markets? Well, they looked at affordability, market hotness, demographics and labor dynamics, tech availability and livability. Well, surprise. And I certainly think this is a fantastic name. The market that offers the best of these five qualities are in the so-called Silicon Prairie. That’s right. Oklahoma City and Kansas City, the one in Kansas. Apartment Therapy has 10 things that are coming back from your grandmother’s kitchen, and maybe you should think about putting these in your rehabs, or not. Number one: shelf liners, especially those with crazy floral designs. Number two: cafe curtains, 50 diner style. Number three: tiny flowers. Like, everywhere. Backsplashes, wallpaper, you name it. Number four: mint green, followed closely by avocado green. And number five: matching Tupperware. OK. Put those in the cabinets? I don’t know. Especially if they’re green. You can tie into the previous number four. Number six: breakfast nooks. Although I’m not really sure those ever fully went away. Number seven: tiered storage baskets like IKEA has. Oddly enough, I designed one many years ago for Wal-Mart for the Bratz dolls. They were called the hot hanging baskets. You’re welcome. Number eight: decorative plates. Pioneer Women, anyone. Check out Wal-Mart. Number nine: Checkered floors. And number ten: laminate countertops. And I’m really hoping you’re not putting those in your
rehabs. Don’t do that. So here’s the headline story and one that is a little bit concerning. This week, the L.A. City Councilmember Gil Cedillo introduced a motion asking the city to study its options for seizing the Hillside Villa Apartments, a privately owned 124 unit apartment building, all in the name of affordable housing. And how especially time, considering that Secretary Ben Carson has been touring Southern California on his tour, specifically aimed at affordable housing. Well-played, council member. Oh well. So this property is currently under the affordability covenant that requires its owner to rent out a number of its units at below-market rates. Well, that covenant is set to expire, meaning rents on some fifty-nine of those units will increase to market rate, which means a lot of them are probably going to go up by around $1,000. So Cedillo has accused Tom Boltz, the owner of the building, of reneging on an agreement not to raise rents, so Cedillo believes that the city should eminent domain the building, and in short, the rents do not go up. So you need to read the article that we linked in the story. We always post those on our blog. It’s some really interesting arguments. One of the biggest concerns I have is when working for the affordable housing concept is if the government decides it wants to get involved, puts these agreements in place with people because they’re willing to build this affordable housing, and then you renege 30 years later when there’s a different council member in place, nobody’s going to want to work with the government because they’re not going to trust you because 30 years later, you change your mind and whatever. This is the lack of planning at the city level. Housing takes decades. You have to have strong planning going in, and it’s got to be good strategy just going forward. So I don’t like this kind of stuff. I would love to know what you have to think. And it’s OK if you decide to send – if you’re in the area, you need to get involved and you need to send some e-mails on what you think to the council members doing this kind of stuff. Let me know what you think. If you’re on YouTube, please leave your comments below the video, and don’t forget to like and subscribe to the channel. Hit that bell if you’d like to receive notifications when we have new videos come online. If you’re on Facebook or any other social media platform, please like and make sure to like the Norris Group page so you can find our content online whenever we produce it. Leave your comments below the video. Give us some love. And don’t forget to share. If we missed the story, also feel free to leave a link in the description below. We’d love to see you out and about. March 3rd, we’re going to be doing Six Things to Succeed in 2020 with O.C. FIBI. March 11th: Bruce is gonna be up in Sacramento doing that same chat with NorcalREIA. And three days later, we are going to be up there doing our all-day seminar called Keep, Sell, and Create. This session is specifically focused on strategies in the current market to create value when it’s hard to find value. So investors looking at opportunity zones, ADUs, those are chapters that we have in our portal, but we’re going to update them and build a lot of local flavor them. So I’ll be talking to the city, looking at maybe some extra rebates and some interesting opportunities up there specific to the area. So if you’re in Northern California, I’d love to see you. Check your email because we sent out a video on Turmoil, Chapter 16. We cover Florida versus California, and Bruce has discovered an all-new chart that kept him up all night on Tuesday. So when we recorded the chapter on Wednesday, he’s even more excited about Florida because this one key metric is what California had 30 years ago that helped us double in size and why we’re missing it in California and the metric that has Florida really right for progress in the years ahead. So don’t miss that. It’s completely free. We’re sending it out, and hopefully you enjoy it. And it leads into our Florida Bootcamp coming up March 19th and 20th. If you fall into five categories of a real estate investor that I cover in the video, we would love to work with you. Check it out this weekend if you’ve got some time since it’s a holiday weekend. April 1st, we’ll be doing Six Things to Succeed in 2020 with IVAR. But all of our events coming up for the first half of this year is on our Web site at thenorrisgroup.com under the Events tab for hard money loans, including accessory dwelling units, Fix and Flip, Buy and Hold, and New Construction. Check out the Hard Money tab. We invest – we do loans, of course, in Florida and California. And for passive investing with trust deeds, notes, and mortgages, hit that Invest tab. With that, Happy Valentine’s Day. Have a fantastic weekend, and we’ll see you next week.


One thought on “Eminent Domain In The Name Of Affordable Housing? #489

Leave a Reply

Your email address will not be published. Required fields are marked *