Building Homes, Strengthening Communities
The Draft Environmental Impact Report (DEIR) for the State Route 4 Crosstown Freeway Ramp Extension Project is now available for review. A public hearing is set for Thursday, February 18th and comments on the DEIR will be accepted through Monday, March 22nd. Find the pdf version here.
The Northern California premiere of the Believing In A Place Called Home event was held on Saturday, January 23, 2010 here at Visionary Home Builders. The classroom was filled to capacity and the home tour was enjoyed by all. Four homes in various neighborhoods in Stockton were on tour and all are ready to be sold. Each person who attended the event received a certificate worth up to 4% of the home purchase price to be used towards closing costs. For example, if the home purchase price is $100,000, the certificate is worth $4000 which can be used towards closings costs. The certificate can be combined with other down payment assistance programs if the homebuyer is qualified. The next opportunity to take advantage of this free event will be on Saturday, February 27, 2010 in Modesto. A continental breakfast and lunch will be served. Stay tuned for registration information.
Photos from the BIAPCH in Stockton on January 23, 2010.
At the seminar attendees will learn:
The program and curriculum, developed by HomeSteps, a Unit of FreddieMac, with sponsorship from Wells Fargo, Visionary Home Builders and Realty World, starts off with a morning of education taught by the education staff of Visionary Home Builders, followed by a bus tour. The bus tour will include a walk-through of up to five HomeSteps, a Unit of FreddieMac, REO properties that meet the requirements of an FHA loan.
Founded in 1983, Visionary Home Builders (VHB) is a nonprofit housing development company and housing counseling agency based in Stockton, California. It is the leading agency of its kind in the San Joaquin Valley, having developed more than 1,000 units of rental housing and has renovated/built more than 500 single-family homes. Visionary Home Builders has brought more than $250 million dollars in grants and private dollars to develop affordable housing in the valley. VHB is a HUD approved Housing Counseling Agency.
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HomeSteps, a Unit of FreddieMac, Offers Free
Home Buying Seminar for Potential Homebuyers
A free home-buying seminar, Believing In A Place Called Home, designed especially for potential home-buyers, will be held on Saturday, January 23rd, 2010 at Visionary Home Builders of California, 315 N. San Joaquin Street, Stockton. The workshop is being held from 8:30am to 2:00pm followed by a bus tour of available properties from 2:00pm to 4:00pm. A continental breakfast and lunch will be served. Seating is limited to 25 people and reservations must be made by January 18, 2010 at www.wellsfargo.com/register or by calling 209-466-6811.
Attendees will learn:
The program and curriculum, developed by HomeSteps, a Unit of FreddieMac, with sponsorship from Wells Fargo, Visionary Home Builders and Realty World, starts off with a morning of education taught by the education staff of Visionary Home Builders, followed by a bus tour. The bus tour will include a walk-through of five HomeSteps, a Unit of FreddieMac, REO properties that meet the requirements of an FHA loan. This program has been successfully operating in Southern California. This Stockton event represents the unveiling of this program in Northern California and plans are in place to continue to offer this opportunity to local homebuyers.
Founded in 1983, Visionary Home Builders (VHB) is a nonprofit housing development company and housing counseling agency based in Stockton, California. It is the leading agency of its kind in the San Joaquin Valley, having developed more than 1,000 units of rental housing and has renovated/built more than 500 single-family homes. Visionary Home Builders has brought more than $250 million dollars in grants and private dollars to develop affordable housing in the valley. VHB is a HUD approved Housing Counseling Agency.
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(Stockton) Stockton businesswoman and developer, Carol J. Ornelas served as a panelist at the 2009 NeighborhoodWorks America Conference “Rising to the Challenge: Stabilizing Communities in the Wake of Foreclosure” held in Washington DC on December 9, 2009. Ornelas, CEO of Visionary Home Builders in Stockton, served with other housing experts speaking on the subject: “Getting Down to Brass Tacks: Case Studies in Property Acquisition/Disposition.” Property acquisition-disposition is a key strategy for Neighborhood Stabilization Program grantees, and one of the most challenging. Panelists presented ideas to build long-term sustainability to communities, given local and regional market conditions.
Ornelas is an advocate for providing quality “affordable housing” for families within the tri-county area (San Joaquin, Sacramento and Stanislaus). For the past 20 years, she has been the Chief Executive Officer for Visionary Home Builders of California, formerly ACLC, Inc.; a non-profit residential development company headquartered in Stockton, Ca. She serves with distinction as one of a few female housing developers in the Central Valley.
A licensed general contractor and an expert in her field of development, Ornelas is highly recognized as a leader within the community. Her strength is in building and creating partnerships with citizens of the community, and collaborating with local city, state officials and other agencies to provide quality “affordable housing” for the communities she serves. Under her direct leadership, Visionary Home Builders has built and rehabilitated over 1000 units of rental housing and more than 500 residential homes for first time homebuyers within the San Joaquin Valley.
Currently her organization has received funds to implement the Neighborhood Stabilization Program for the City of Stockton and the County of San Joaquin. Stockton has received national attention and has been considered “ground zero” of foreclosures. Her organization has assisted over 1,500 families through the foreclosure or loan modification process. Visionary Home Builders has brought more than $250 million dollars in grants and private dollars to develop affordable housing in the valley. VHB is a HUD approved Housing Counseling Agency. For more information contact Carol J. Ornelas at 209-466-6811 or visit the website at www.visionaryhomebuilders.org.
NeighborhoodWorks, the conference organizer, is a national non-profit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts. Together with national and local partners, NeighborWorks creates new opportunities for residents while improving communities. The NeigborhoodWorks American Conference is designed to focus on comprehensive, sustainable policy and planning actions. Sessions highlight innovative financing, property acquisition and development strategies aimed at helping organizations and communities improve and advance neighborhood stabilization, with a long-term goal of vibrant sustainability. (For further information www/nw.org)
(Stockton, CA) Visionary Home Builders is offering Homebuyer Education Classes at their Homeownership Center every Saturday. The one-day class reviews all aspects of home purchase, including understanding credit scores and good faith estimates, budget analysis, housing payment affordability, and how to develop your home buying team.
The Homebuyer Education Class satisfies the Housing and Urban Development (HUD) requirement for those interested in considering a home through the Neighborhood Stabilization Program. Visionary Home Builders is a HUD Approved “Housing Counseling Agency”.
A Class Registration Form is available at Visionary Home Builders’ Homeownership Center located in downtown Stockton at 315 N. San Joaquin Street, or can be downloaded – www.visionaryhomebuilders.org. Pre-registration is mandatory. Classes are held from 8:30am to 5:30pm each Saturday and are offered in both Spanish and English.
The staff of Visionary Home Builders is also available to teach the Homebuyer Education Class to employees at businesses in Stockton, Manteca and Tracy.
For further information about classes, please contact Joan Jacobs at 209-466-6811 or visit the website at www.visionaryhomebuilders.org.
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(Stockton-San Joaquin County) A press conference is scheduled to celebrate the grand opening of Villa Monterey, the first “green” multi-unit apartment community in San Joaquin County renovated by Visionary Home Builders of California. Located across from Weberstown Park East, the festivities will be held on Wednesday, May 6, 2009 from 11:30 to 1:00. Official comments will be made at 11:45 followed by self-guided tours and lunch on the patio. Villa Monterey is located at 4707 Kentfield Road, Stockton CA 95207.
In addition to celebrating the completion of Villa Monterey – which is a catalyst for change in the revitalization of the Kentfield Neighborhood – it is also to emphasize the ‘green’ efforts and success of Visionary Home Builders of California through collaboration of, the City of Stockton, the California Energy Commission, Sun Power Corporation, Davis Energy Group, the Grupe Company and Union Bank of California. “Working to rebuild Villa Monterey, we have realized that it is possible to be environmentally conscious, and in the process save energy, clean the air and cut utility cost which will benefit the tenants in this community. It is important in all areas of development – from inner-city projects to high-end structures to do all we can do to save our environment. Together we have accomplished a wonderful new facility for the Kentfield neighborhood.”
The added value of Villa Monterey is the emphasis to build a ‘green – zero net energy’ structure. VHB received funding from the California Energy Commission’s Public Interest Research Program (PIER) for Zero Energy New Homes (ZENH) the project is expected to receive the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) Silver certification for new construction. In addition to Energy Star Appliances and Solar Panels, some of the green benefits include: Apartment units exceed Title 24 standards by at least 20 percent; Solar and Energy Efficiency features result in 30 percent – 50 percent drop in expected kwh/year consumed; 30 percent – 50 percent drop in expected utility costs per year; and carbon dioxide reduction of 2,100 lbs/year/unit – equating to 2,600 vehicle miles per year. “Villa Monterey continues the momentum of transforming the housing industry by using high energy efficient building principles to save Californians money on their utility bills and reduce greenhouse gas emissions, ” said California Energy Commission Chairman Karen Douglas.
The rehabilitated complex is now home to a family resource center for the Community Partnership for Families of San Joaquin County. Villa Monterey has a Community Activity Center, office space for Stockton Police community policing, office space for after school tutoring and educational programs as well as a full computer lab. Encouraging healthy recreational activities, a beautiful outside courtyard is available to all residents.
For many years, the Kentfield Neighborhood has been burdened with disproportionate poverty and high crime rates, but that is changing. The Villa Monterey project will be a positive influence in the Kentfield Neighborhood, revitalizing a once blighted building into a beautiful, environmentally friendly complex. Organized in 2006, the Kentfield Action Team developed a plan. Resident involvement, engagement and extensive action on the part of the community, have resulted in a 20 percent decrease in crime in the neighborhood. “Community members deserve the most credit for the positive changes made in the Kentfield Neighborhood,” said Mayor Ann Johnston. “The Stockton Police Department and a neighborhood officer worked closely with the community to leverage federal, state, county and city resources, along with public and private entities, resulting in significant change in the neighborhood, including this beautiful new structure. The success of this collaboration is now creating a positive environment in a neighborhood that is ready for change.”
Who: Villa Monterey Multi-Unit Apartment Complex
Visionary Home Builders of California
What: The Grand Opening Celebration
When: Wednesday, May 6, 2009 – 11:30 am to 1:00pm
Where: Villa Monterey – 4707 Kentfield Road – Stockton CA 95207
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YOUR OWN HOME
Neighborhood Stabilization Program
MANTECA HOMEBUYERS WORKSHOPS
TWO DATES AVAILABLE
Potential homebuyers can choose from two dates for the Neighborhood Stabilization Homebuyers Workshop. They will be held on Wednesday, April 22 and Wednesday, April 29, 7pm, at the Manteca City Council Chambers, 1001 West Center Street, Manteca. Visionary Home Builders will lead both workshops for those interested in obtaining information on purchasing a home through ‘Your Own Home” Neighborhood Stabilization Program (NSP).
San Joaquin County has received approximately 9 million in allocated funds from the US Department of Housing and Urban Development as part of the Federal Stimulus Package. It will be used, in part, to purchase and repair vacant, foreclosed homes that will be available for purchase by eligible, low to moderate income, buyers.
Wednesday, April 22, 2009
or
Wednesday, April 29, 2009
7:00 – 8:00
Manteca City Council Chambers
1001 West Center Street
Manteca CA 95337
For information call: 209-466-6811 or www.visionaryhomebuilders.org
YOUR OWN HOME
Neighborhood Stabilization Program
SUBCONTRACTOR & REALTORS WORKSHOP
A meeting is being held Tuesday, April 28 -9:00am in Aspen Hall at University Park for California Licensed Subcontractors and Realtors to obtain specifications on the bidding process for jobs through the Neighborhood Stabilization Program (NSP). Meetings are being led by Visionary Home Builders of California.
The City of Stockton and San Joaquin County collectively have received 21 million in allocated funds from the US Department of Housing and Urban Development, for the purchase and repair of vacant, foreclosed homes that will in turn be sold to qualified buyers.
April 28, 2009
9:00am to 10:00am
Aspen Hall, University Park
Magnolia and Grant Streets
Stockton CA 95202
For information call: 209-466-6811 or www.visionaryhomebuilders.org
The housing crisis that we are currently in has had a far reaching and lasting effect in various components of the housing industry, economy and society in general. Arguably, the collapse of the housing industry has been a key component in triggering the recession we are currently in. The crisis has also had an impact on individuals in terms of their financial situation. The most disastrous effect of the crisis has been a spike in foreclosures which has left a glut of abandoned homes, which has further depressed housing values and consumer confidence. While the problem is evident, it has also raised a series of questions, prompting one to ask; “what can be done? What other issues have resulted from this? And “what other problems has this led to?” The purpose of this post is thus to examine and analyze these various inquiries and issues.
Often times the first thing in peoples’ minds that are facing this situation is finding a solution to the problem. While negotiating with a lender and seeking a modification is a viable solution to the problem many struggling homeowners are having problems reaching a favorable compromise their lender. This is because lenders are primarily looking out for their bottom line, so it thus follows that a lender will assist so long is it will cost them less than having the house foreclosed on. There is also the consideration that the borrower may possibly default on the loan again. On the borrowers part, the “compromise” may not seem so attractive particularly if the payment was reduced very little or if they happen to be very “upside down” on their house. Allowing the borrower to stay in the home and continue his/hers mortgage obligations is course the most favorable scenario to the borrower and lender, the trick is to make the situation appealing to both parties.
One other possible solution to this problem is refinancing into a lower interest rate. Refinancing can be a very powerful and effective long term solution to alleviating a struggling homeowners woes but it certainly is not meant for everyone, perhaps it is only meant for a small minority. The problem with refinancing is that most lenders require a certain amount of equity in the home, and due to tightening standards a superior credit score is also necessary. Equity or a lack of seems to be the greatest problem, as many individuals during the housing boom purchased homes with little or no down payment and often made interest only payments. This is compounded to the fact that home values have dropped significantly, together these two factors make it impossible to refinance. Typically for a refinance applicants need a credit score above 720 and equity of 20 percent, rendering the opportunity available only to a select few. A Few ways that distressed homeowners with little equity in their homes can refinance is either by obtaining mortgage insurance or refinancing through FHA which requires only a small down payment.
While there are some viable solutions for distressed homeowners many unscrupulous individuals are trying to exploit the situation by creating the perception that they are in fact part of the solution. With this I am referring to many of the so called “mortgage consultants” who for a substantial fee claim they can alleviate a distressed homeowners financial woes and allow them to remain in their home. While I have covered this topic previously, I am again focusing on it in order to raise awareness and highlight what a serious problem this is, not to mention the fact that it is illegal. The Los Angeles Daily News reports that in Los Angeles County these outfits and subsequent investigations have greatly proliferated in the last year. According to FBI statistics the number of mortgage fraud complaints have tripled from 21,000 in 2005 to 63,000 in 2008. Unfortunately, these statistics also indicate that the increase in complaints means that the outfits also grown to be more successful at defrauding vulnerable homeowners. What is also unfortunate is that many distressed homeowners mistakenly consider these outfits as viable solutions to their problems, mainly because these outfits target the homeowners’ ignorance, and anxieties. The one thing we can tell distressed homeowners is that these outfits are not a viable solution to their problems, in fact what they are doing is illegal and can further compromise their efforts to save their home.
Finally what many distressed homeowners are considering solution, albeit a disastrous solution is simply accepting the foreclosure and walking away. Walking away from a home is not only disastrous because you are losing your home and whatever you have invested into it, but it is also disastrous because of its long lasting impact. The lasting impact of foreclosure manifests itself on a person’s credit which according to many is akin to bankruptcy in terms of its severity. This can affect an individual’s ability future financial stability and well being by making it more difficult to secure certain jobs, obtain loans, or qualify for housing. A major reason why homeowners ultimately decide to walk away is simply because they are upside down on their loan. While there are often cases where the owner cannot make the payment and is upside down, there are also cases where the owner can indeed afford the monthly payment but none the less decides to walk because he/she is upside down.
This phenomenon is being primarily attributed to a recently adopted mindset by new homeowners who are now viewing a home primarily as an investment and themselves as investors. Unlike typical Wall Street type investors who seemingly have a more thorough understanding of markets and investing these pseudo “homeowner investors” fail to realize a few things. One is that eventually the market will rebound and they will eventually have the equity in their homes to achieve a favorable refinance or eventually sell and recoup their money. Second, is that unlike Wall Street where one can dump unproductive investments, take a loss and walk away, when dealing with real estate taking a similar course of action would come with severe consequences such as severely damaging a persons’ credit. Finally if an individual wishes to adopt the mindset of the homeowner investor, the individual must also accept the implied risks that come with investments. Generally walking away should only be seen as an emergency or last resort solution. A decision to walk away should only be made after all other options such as negotiating, refinancing or working with a HUD approved counselor have all been exhausted and rendered futile. For some who went in over their heads the decision to walk away can serve as a painful life lesson which will hopefully allow the individual to plan and rationalize more effectively the next time he/she wishes to buy a home.
As far as the real estate market and industry goes dismal is the word to describe it. David Crowe, chief economist for the National Association of Home Builders spoke at the International Builders Show in Las Vegas earlier this week and said that housing statistics and indicators will continue to drop in 2009 and that new home sales will drop another 14%. Although the market is expected to drop, Crowe stated that 2009 will likely be the “bottoming out” year for the housing industry, he expects the market to hit bottom around mid 2009 and begin a slight upswing by the end of the year. Contributing to the declining forecast in the housing market is also the nation’s dismal employment outlook. Economists at Freddie Mac expect unemployment to jump to from the current 7.2% to 8.7% by the end of the year. These same economists attribute a rise in defaults and foreclosure as a direct result of increased job losses, in fact they consider it to be the single most important factor.
What this dismal outlook also means is that there will be more desperate homeowners looking for help and scheming “industry professionals” looking to take advantage of an already dismal situation. In an earlier blog post I briefly touched on the loan modification organizations and how they may potentially be illegitimate and illegal. Apparently my analysis and predictions were true as there are now many of these organizations nationwide that have scammed desperate homeowners. Last year the Federal Trade Commission brought lawsuits against five companies that were representing over 20,000 consumers. In addition Angela Rosenau, deputy attorney general in California cited over 300 complaints against such organizations.
A recent article from the New York Times (1/15/2009) highlights the growing problem by documenting the case of Stockton resident Maria Martinez who was facing trouble with her mortgage last summer and was subsequently scammed by a so-called foreclosure consultant who did absolutely nothing but take her money. Today Maria continues to live in the foreclosed home and is simply waiting for the Sherriff to show up and evict her. Maria’s case while tragic is not unique, in fact the same article mentions that many times the defrauders are the same individuals who were aggressively hawking subprime loans and are now taking advantage of desperate homeowners’ who become frustrated or panic after dealing directly with lenders who are often indifferent to their situation. What is important to keep in mind is that in California “mortgage consultants” are prohibited from collecting payments until after they complete their service
Although the effects of the housing crisis are for the most part negative, one good thing that has arisen as a result of the crisis is greater and more affordable opportunities for first time buyers. Currently interest rates are at historic lows and home prices are also extremely low creating an opportunity for first time buyers to enter the market. The drop in prices is in part attributed to the glut of foreclosed and abandoned homes, which makes many buyers wonder how they should go about purchasing one of these homes. Two common scenarios in which these types of homes are purchased are either through short sales or REO purchases. While there are differences between the two they also share a key similarity as far as the purchasing process goes. In both cases one deals with the lender, while a short sale may seem like a straight forward means of purchasing directly from a homeowner it can actually become difficult if the primary and junior lean holders do not agree to the short sale, which would then require substantial negotiations. With REO bank owned properties one is dealing with a lender’s REO department, which in many cases is overwhelmed. In both cases one should expect to be patient however the rewards can be substantial because often times both types of properties are listed below market price, with short sales being slightly more expensive than REO’s.
