HUD Awards $100 Million in Grants

WASHINGTON – For the first time ever, the U.S. Department of Housing and Urban Development (HUD) is awarding nearly $100 million in new grants to support more livable and sustainable communities across the country. HUD Secretary Shaun Donovan today announced that 45 regional areas will receive funding through a new initiative intended to build economic competitiveness by connecting housing with good jobs, quality schools and transportation.

In Texas, groups in Austin and Houston-Galveston are finalists for awards of $3.7 million.

HUD’s new Sustainable Communities Regional Planning Grant Program will support State, local, and tribal governments, as well as metropolitan planning organizations, in the development and execution of regional plans that integrate affordable housing with neighboring retail and business development. Many of the grants will leverage existing infrastructure and all reward local collaboration and innovation.

“Regions that embrace sustainable communities will have a built-in competitive edge in attracting jobs and private investment,” said Donovan. “Planning our communities smarter means parents will spend less time driving and more time with their children; more families will live in safe, stable communities near good schools and jobs; and more businesses will have access to the capital and talent they need to grow and prosper. In awarding these grants we were committed to using insight and innovation from our stakeholders and local partners to develop a ‘bottom-up’ approach to changing federal policy as opposed to ‘top-down.’ Rather than sticking to the old Washington playbook of dictating how communities can invest their grants, HUD’s application process encouraged creative, locally focused thinking.”

These grants are part of the Obama Administration’s Partnership for Sustainable Communities, which brings HUD, the U.S. Department of Transportation, and the U.S. Environmental Protection Agency together to ensure that the agencies’ policies, programs, and funding consider affordable housing, transportation, and environmental protection together. This interagency collaboration gets better results for communities and uses taxpayer money more efficiently. Coordinating federal investments in infrastructure, facilities, and services meets multiple economic, environmental, and community objectives with each dollar spent. The Partnership is helping communities across the country to create more housing choices, make transportation more efficient and reliable, reinforce existing investments, and support vibrant and healthy neighborhoods that attract businesses. At a time when every dollar the federal government invests in jumpstarting the economy is critical, the President’s plan ensures that all these agencies are coordinating efforts and targeting resources with precision. Reflecting this new collaboration, these grants were judged by a multidisciplinary review team, drawn from eight federal agencies and from partners in philanthropy.

HUD’s inaugural grants under this program will support metropolitan and multi-jurisdictional planning efforts that incorporate housing, land use, economic development, transportation and infrastructure. This holistic planning approach will benefit diverse areas across the U.S. including $25.6 million split evenly between regions with populations less than 500,000 and rural places (fewer than 200,000 people). HUD is reserving $2 million to help all of these areas build the needed capacity to execute their plans.

The grants are awarded through one of two categories. One category of grants will assist regional planning for sustainable development where such plans do not currently exist. A second category of funding will support the implementation of existing sustainability plans.

Shelley Poticha, the director of HUD’s new Office of Sustainable Housing and Communities said, “The response to this program is huge. We were inundated with applications from every state and two territories – from central cities to rural areas and tribal governments. This program was designed by people from local government, and incorporated local input at every stage.”

View a complete list of finalists here.

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Bank of American Stops Foreclosure Sales

Bank of America just announced it will stop the sales of foreclosure properties in all 50 states. If you are under contract to PURCHASE a foreclosed property, it would be prudent to seek legal counsel.

http://news.yahoo.com/s/ap/20101008/ap_on_bi_ge/us_foreclosure_mess

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TX Attorney General Demands Suspension of Foreclosoures

Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties” until these institutions have taken eight specific steps to rectify possible past errors in mortgage documents.

In this case, Texas Attorney General Abbott has noted possible violation by these banking institutions of the Texas Deceptive Trade Practices Act, the Texas Debt Collection Act, the Texas Penal Code, the Texas Property Code, the Texas Government Code, and the Texas Constitution.

How will the banks respond?

The Houston Chronicle reported on Oct. 6 that some banks will not honor the AG’s request. If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed as if no demand letter had been sent.

If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:

Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosures until the dispute has been resolved.

Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.

Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.

Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.

Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.

Commercial vs. residential properties: The demand letter makes no distinction between commercial and residential properties.

Read the Demand Letter and see a list of banks below:
Letter from the Attorney General
List of Banks

Source: Texas Association of Realtors

Lead Paint Rules Update

Lead is a toxic metal that was used for many years in products found in and around our homes. Lead also can be emitted into the air from motor vehicles and industrial sources, and lead can enter drinking water from plumbing materials. Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children six years old and under are most at risk

Recently, law was passed to require contractors who disturb lead-based paint in homes, child-care facilities and schools built before 1978 to be certified and follow specific work practices to prevent lead contamination. Although the law applies to 79 million houses, just 38 million of those are believed to have lead paint. That law took effect April 22, but in late June, the EPA said it would delay enforcement of the law until October because there weren't enough government-approved trainers needed to certify thousands of contractors. That enforcement deadline has now been extended to Dec. 30.

By early July, 320,000 contractors had been certified. There had been an "opt-out" clause that allowed consumers to permit contractors to bypass extra preparation, cleanup and record-keeping requirements in homes where there were no children under 6 years old or pregnant women, thus avoiding additional costs. That provision expired July 6, and the EPA had no plans to reinstate it. The National Association of Homebuilders and others filed suit to force the EPA to reinstate the opt-out rule.

The law states that a hazardous condition exists when lead-paint dust is present on a floor to the extent of 40 micrograms (one millionth of a gram) in a square-foot area. Another way of expressing it is if a square centimeter lead-based paint chip were ground into dust, it would (by EPA standards) contaminate 25 square feet of floor space. The feds require the "proper" containment and cleanup when six or more square feet of lead-based paint will be "disturbed" in a home.

The EPA suggests consumers ask to see certification before they sign a contract. Since December 2008, contractors have been required by law to supply a brochure to customers outlining the dangers and rules.

If your home was built prior to 1978, it could contain lead paint. There could be extra costs associated with a remodelling project for testing and remediation of lead paint, so please talk to your contractor about this before any paint is disturbed in your home.

For more information on Lead-Based Paint rules, please visit the EPA website.

Sources: RIS Media (c) 2010, The Philadelphia Inquirer.Distributed by McClatchy-Tribune Information Services, and the EPA.