Live on the Red Line - Real Estate

Home Affordable Foreclosure Alternatives Program (HAFA)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA), part of the  Home Affordable Modification Program (HAMP).

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies only to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

Learn more about HAFA

Government Forms and Guidelines (PDF)

NAR HAFA Program FAQ  (PDF)

“First Look Initiative” Gives Homebuyers a Competitive Edge on Foreclosed Properties

Fannie Mae has introduced a program that now gives homeowners a leg up when bidding on foreclosed properties in its portfolio.

In the past year, there’s been stiff competition on the lower end of the DC housing market, mainly fueled by bank-owned properties. These homes are often located in desirable neighborhoods but are either shells or need work to become livable. They are usually priced aggressively to sell fast. As such, the homes garner a lot of interest from investors, and it’s not unusual for these listings to receive several contracts within the first few days of being listed. In the bidding wars that ensue, traditional home purchase contracts with finance and appraisal contingencies lose out to all-cash, no-contingency contracts from investors. Often, a bank will go with cash buyers even at a significantly lower purchase price because the chances of the contract falling through are far less and the required closing period is shorter. This trend has been the cause of major frustration among homebuyers.

Fannie Mae’s new “First Look” initiative is one of several that help provide some balance to the homebuying process. As part of the Neighborhood Stabilization Program (NSP), the initiative is targeted at owner-occupants and buyers using public funds.“First Look provides owner-occupants and public entities that are committed to the community get an early opportunity to purchase one of Fannie Mae’s Real Estate Owned properties,” says Terry Edwards, Executive Vice President for Credit Portfolio Management at Fannie Mae. “As a result, we believe First Look will help us make progress toward stabilizing neighborhoods and building stronger communities in this difficult market.”

The First Look initiative only allows offers from owner-occupants and buyers using public funds to be considered for the first 15 days that a Fannie Mae-owned home is listed. In investor-saturated markets such as DC, this greatly reduces the competition when bidding for a home, giving homebuyers a better chance at getting their offer accepted. Buyers must act fast though, because after the initial 15 days of being listed, offers from investors may be considered.

In addition to the First Look initiative, buyers using NSP funds may also qualify for several other benefits, including deposit waiver, ability to renegotiate the sales contract after an NSP-required appraisal, and extra time (up to 45 days) for closing. A list of Fannie Mae-owned properties for sale in the DC area can be found here.

by Tim Brown

http://dc.urbanturf.com/articles/blog/fannie_maes_first_look_initiative_gives_homebuyers_a_competitive_edge/1630

D.C., Roadside Development settle on O Street Market funding

The District has reached an agreement with Roadside Development LLC on financing for redevelopment of the O Street Market.

The agreement provides $35 million in tax increment financing for the $260 million, 1 million-square-foot overhaul of the 127-year-old D.C. public market into a mixed-use development.

In tax increment financing, or TIF, the city issues bond to fund initial construction costs, and the bonds are repaid through taxes generated by the project.

D.C.-based Roadside Development plans to break ground next fall on the two-block site, which currently consists of a 28-year-old Giant Food grocery store, a surface parking lot and the brick shell of the historic market.

Renamed CityMarket at O, the development incorporates the historic market into new features such as more than 600 residential units -- both condominiums and apartments, including housing for senior citizens -- a 200-room hotel, 563 parking spaces and 87,000 square feet of retail, including a Giant store twice the size of the existing one.

The development plan also reopens Eighth Street NW.

"The O Street Market was once a great commercial center in the Shaw community, and this project will breathe new life into this historic site," said Mayor Adrian Fenty, who announced the agreement Friday. "We've agreed to provide a financing package that will not only make this project feasible, but one that will bring real community benefits for Shaw residents and the city at large."

The package is pending approval from the D.C. Council.

The project is expected to create 400 construction jobs and almost 400 permanent jobs. As a part of the agreement, more than half of those jobs must first be offered to D.C. residents.

Roadside became the owner of O Street Market in 2000 and offered a proposal for a retail project and parking structure. However, the redevelopment was put on hold after a snowstorm in 2003 collapsed the roof.

D.C. wants developer for pair of properties in Southwest

The District is seeking a development partner to redevelop a pair of city-controlled properties at Fourth and E streets SW, including the current Fire Engine Co. 13 property.

"There is a real opportunity to leverage these assets to cover the cost of a new fire station at no cost to taxpayers," said Neil Albert, D.C.'s deputy mayor for planning and economic development.

It would also put the properties back on the District tax rolls to create spaces for new business, he said.

The city doesn't have a site-specific use for the area, but the chosen developer must set aside at least 35 percent of any contracts to certified local, small or disadvantaged businesses and at least 51 percent of the new jobs created by the project must go to District residents.

The District plans to select one qualified team to develop the two sites. Both sites are adjacent to the Metropolitan Police Department's First District headquarters, where the District is planning to build a 240,000-square-foot Consolidated Forensic Laboratory.

The first 34,000-square-foot parcel, located along Sixth Street, is currently occupied by the two-story fire station. The second parcel consists of a 19,000-square-foot vacant lot. The fire station must be incorporated into the development program for either parcel, or it can be relocated within two to three blocks away.

Foulger-Pratt Contracting to build Silver Spring Transit Center

Montgomery County has selected Foulger-Pratt Contracting to construct the new Silver Spring Transit Center. The transit center will be a new three-story, 244,000-square-foot multilevel, pedestrian friendly complex supporting Metro and commuter rail lines, as well as local buses.

The new center will double the current number of bus bays with a 4,500-square-foot bus building. The plan also includes hiking and biking trail enhancements, and provisions to increase pedestrian and vehicle safety near the center. Designed by PB Americas Inc., the new Silver Spring Transit Center will be constructed adjacent to the existing Silver Spring Metro station, the hub of Silver Spring's revitalization activity.

The Silver Spring Metro station has the highest ridership in Maryland and is second only to Metro Center. "We are delighted to see this project moving forward," said Gary Stith, director of Silver Spring Regional Service Center. "The Transit Center is another important component in the redevelopment of Silver Spring's downtown and one more example of a great smart-growth, transit-oriented project."

Rockville-based Foulger-Pratt has developed more than 2 million of square feet in downtown Silver Spring, including transforming the area above the Silver Spring Metro station into a mix of residential, retail and office. "Foulger-Pratt has a long history of successfully partnering with Montgomery County to develop and construct great projects," said John Barron, president of Foulger-Pratt. "We are ecstatic with the award of the Silver Spring Transit Center project and pleased to be a part of the positive impact its completion will have on the community."

DC News on Development, Projects

In his second "State of the District" address, Mayor Adrian Fenty detailed his efforts to improve schools, the police force, transportation, human services, affordable housing and the economy.

"There has never been a better time to live or work in the District of Columbia," Fenty said Friday at the Washington Seniors Wellness Center on Alabama Avenue in Southeast. "The population is growing, and the economy is robust. We are in the midst of our city's 12th consecutive balanced budget, and our bond ratings have never been higher -- A-pluses at all three agencies."

Fenty touted the near completion of three economic development projects: the Washington Nationals stadium, DC USA by Grid Properties, Inc., and William C. Smith's Shops at Park Village, which brought a Giant Food grocery to Ward 8.

The mayor also pointed to progress planning other projects, including Poplar Point - "the largest public-private development project the District government has ever taken on" - the city's New Communities initiative, the site of the old convention center and the former McMillan Reservoir site. He also mentioned the planned return of the Radio One Inc. headquarters to the Broadcast Center One development in Shaw and NPR's move to Northeast.

"But economic development cannot be all about large-scale projects," Fenty said, pointing to $95 million in tax increment financing he has made available to applicants in specified commercial corridors.

Council members Vincent Gray, chairman, Carol Schwartz, R-at large, Mary Cheh, D-Ward 3 and Yvette Alexander, D-Ward 7, attended.

(Washington Business Journal - by Jonathan O'Connell Staff Reporter)

Developer puts STOP on project in Bethesda-Chevy Chase

One of the most well known developers in the area, Monument Realty, has decided to pull out of a planned development in downtown Bethesda.  The project would have included the purchase of 60 homes in the Sacks neighborhood, near the Bethesda Red Line metro stop.  Numerous factors led to the call off from this project, including the real estate market and lack of support from Montgomery County officials. 

Fenty putting money back into our community

Mayor Fenty is dedicated to the development of our neighborhoods!  It was recently announced that $95 million will be available to support neighborhood development in Washington, DC. Some of the major areas that will receive this money are the revitalized H St, NE area, the Georgia Avenue corridor and the Petworth community.

Read more about these funds on the link above.  Developers are encouraged to submit applications in order to compete for these available funds. Currently, there are numerous development projects happening in these areas.  This initiative should keep the engine rolling strong on these wonderful new revitalization projects in progress, and help to spring life to new projects, too!  If you need help with your development project, what ever phase you are in, email me any questions.  I will be happy to respond.