Regions

London–U.K. housing market fears caused the pound to decline against the euro after a two-day rise and raised new concerns about the overall economy, Bloomberg reported Wednesday.A private report released Wednesday that said U.K. economic growth had fallen to a three-year low in the quarter to May only increased speculation that the U.K. economy was weakening because of sinking home values.The pound’s strength against the dollar did not change drastically.Merrill Lynch & Co.–who said declining home prices could cause land value losses–downgraded homebuilders including Galliford Try Plc and Barratt Developments Plc.”The overall trend is for a further deterioration in the…

London–British banking officials said Tuesday that a new plan to deal with credit market chaos and restore lending market confidence was in the works, the New York Times said.Bank of England governor Mervyn King noted that “the crisis is not yet over” and said that the Bank of England was creating a new method of offering financing to banks. The plan will be released later this year.In a separate announcement, the British Bankers’ Association said it will alter the way it calculates the London interbank offered rate, which is one of the most common benchmarks to establish the cost of…

By Anuradha Kher, Online News EditorLivingston, N.J.–When the Internal Revenue Service (IRS) rolled out its new compliance manual for Low Income Tax Credit communities in January 2007, many in the industry perceived some changes in the manual as a potential problem for developers using SureDeposit programs.The IRS has now clarified that SureDeposit does in fact comply with IRS regulation section 1.42-11 for LIHTC units. Specifically, the IRS allows security deposit alternatives in the form of optional tenant-paid insurance policies in lieu of security deposits for LIHTC units without requiring premiums to be included in gross rents. “If the gross rent is…

By Anuradha Kher, Online News EditorMiddletown, Del.–Green Park Financial recently provided a $12.5 million refinance loan to Middletown Apartments, a 156-unit Class A apartment community, located in Middletown, Del.Green Park structured the loan with a 10-year term and 30-year amortization. The loan was underwritten to an 80 percent loan-to-cost with a 1.20x debt-service coverage ratio using a base-max loan structure with a letter of credit as additional collateral. The new Fannie Mae Delegated Underwriting and Servicing (DUS) guide allows for borrowers to close loans on properties in lease-up after one month of stabilized collections as opposed to the previous requirement…

By Anuradha Kher, Online News EditorNew York–Sky House, a 55-story, 139-unit luxury condominium tower located at 11 East 29th St. in Manhattan, is offering a 3,700-sq.-ft. duplex residence featuring a 300-sq.-ft., glass-enclosed winter garden on its 51st floor terrace. The winter garden duplex is part of what the developer is calling the property’s premier collection.The duplex features four bedrooms and a library, and is priced at $8.2 million. It has not yet been sold but there has been interest from buyers, according to the developer.“We are proud to unveil the exclusive homes that make up the premier collection of Sky…

By Anuradha Kher, Online News EditorWashington, D.C.– Rep. Ed Perlmutter (D-Colo.) today introduced the H.R. 6078, the Green Resources for Energy Efficient Neighborhoods Act of 2008.If passed, the legislation would raise the bar for environmental performance in affordable housing, authorizing new federal resources for green affordable development while providing incentive to the private sector to invest in green affordable homes for low-income people.Doris Koo (pictured), president and CEO of Enterprise Community Partners, testified before the House Financial Services Committee, at a hearing on this. “We commend Rep. Perlmutter for his leadership and vision in developing this bill, as well as…

In an attempt to cut back on U.S. greenhouse gas emissions, Senators John Warner (R-VA) and Joseph Lieberman (I-CT) introduced a bill to Congress that would reduce emissions in 2012 to 2005 levels and by 70 percent in 2050. The bill, known as either Warner-Lieberman or the Climate Security Act, would impose a cap-and-trade system. The Senate began debating the legislation last week, the first time since 2005 that a climate change bill has been discussed. MHN Associate Editor Erika Schnitzer talks to George Kehler (pictured) about the Warner-Lierberman bill, its impact on the multifamily industry and how the industry…

New York–New York-based ratings agency Moody’s downgraded six homebuilders on Monday, Forbes.com reports.Cash flow issues and low earning forecasts prompted Moody’s to lower ratings for Pulte Homes, Centex, Ryland Group, D.R. Horton, KB Home and Lennar.Pulte, Centex, Ryland Group, D.R. Horton and KB Home were cut from Ba1 to Ba2. Lennar fell from Ba1 to Ba3.

Washington, D.C.–The Federal Housing Administration announced $4.6 billion in losses Monday due to high home loan default rates, the New York Times reports.The F.H.A.’s seller-financed down payment mortgage plan–which has been hurt in recent years by rising foreclosure and delinquency rates–is partly to blame, according to commissioner Brian D. Montgomery.Weak traditional mortgage portfolio performance and poor economic conditions also contributed to the predicted deficit, which is the largest amount the F.H.A. will have lost since 2004.To make up for the costs, the agency withdrew $4.6 billion from its $21 billion capital reserve fund. The F.H.A. did not ask Congress for…

Chatham, Mass.–Federal Reserve chairman Ben Bernanke said Monday that–although inflation concern is increasing–the risk of a large economic downturn in the U.S. has decreased in the past month.Speaking at a Fed conference in Chatham, Mass., Bernanke said that the increased growth expectations were due to “the effects of the monetary and fiscal stimulus, a gradual ebbing of the drag from residential construction, further progress in the repair of financial and credit markets and still-solid demand from abroad,” the Financial Times said.However, Bernanke said that economic activity during the current quarter “is likely to be weak.””The ongoing contraction in the housing…