Palm Beach County woman says her dream house has made her ill.

Palm Beach County woman says her dream house has made her ill.
By Nancy L. Othón.
South Florida Sun-Sentinel Posted July 31 2006

WEST LAKE WORTH -- After months of headaches, nausea and occasional seizures, Andrea Amaral abandoned her custom-built dream home, blaming the mold that grew in it for her medical problems.The tastefully designed home in the Savannah Estates neighborhood on U.S. 441 had no catastrophic water damage. No flooding, no hurricane damage.
But about a year after moving in, the family discovered mold growing on some air conditioning vents, a smoke detector in Amaral's bedroom, ducts and in the attic.Now the Amarals are battling the builder, Town & Country Homes Florida, a K. Hovnanian Co., in an attempt to break free of the home."The builder knows there is this mold in my house, he knows there are these toxins, he knows that the mold in the house matches the mold in my blood, but he won't do a damn thing," said Amaral, 47. "All I want him to do is buy my house. Let me and my family move on so I can get a clean house."The Amarals first alerted the builder to their mold problem in January, meeting personally with officials and sending e-mails requesting help.Tim Kelly, president of the local Town & County division in Boynton Beach, said the company is investigating."Research is still being conducted by a third-party consultant who is an expert in that field," Kelly said. "Just because a claim is made doesn't mean it's substantiated or it's a builder responsibility."According to the Amarals, Town & Country previously offered to clean the house, but declined to pay the roughly $20,000 the Amarals spent on lodging, environmental testing and living expenses."I don't know how it would be possible to make this house livable for my wife," Steve Amaral said.Andrea Amaral and her family lived in a Hampton Inn for nine weeks until she left for the Bahamas for several weeks this summer for some doctor-recommended ocean air.She and her daughters are now staying at her mother's, while Steve Amaral, unaffected by the mold, stayed home.The Amarals moved into the $416,000 home in June 2004.Less than eight months later, Amaral began to get sick.She also experienced seizures, long after a prior seizure problem she experienced after a 2002 car crash had been stabilized.Steve Amaral is confident the house was improperly insulated, leading to the mold build-up, while Town & Country officials say the culprit is likely the air conditioning unit, he said."It appears the Amarals have a significant problem in their home," said the Amaral's attorney Stephen Cohen."Testing shows that, and Ms. Amaral has certainly proven to be ill as a result of the exposure."One of Andrea Amaral's doctors said Amaral's mold allergy testing is so high, it suggests she is suffering from what doctors term "non-specific building related illness."Symptoms can be as minor as a runny nose. Andrea Amaral's symptoms are much more complex, said Dr. Harold Robbins, an expert in occupational and environmental medicine based in Deerfield Beach.

Sky-high premiums igniting a revolt by consumers.

HOMEOWNERS INSURANCE
Sky-high premiums igniting a revolt by consumers
Homeowners in Florida are banding together in an effort to fight rising windstorm insurance premiums that threaten to drive some from their homes.
BY MONICA HATCHER.
Under fluorescent lights and through a microphone that kept shorting out, Joe Fontana cleared his throat and addressed his small audience.
''The insurance companies are going berserk,'' he said. ``There's no limit to what they will charge homeowners. We have to find a way to counteract this or the people in this city are going to be killed.''
Then Fontana led the 38-building-strong Miami Beach Condominium and Homeowners Alliance in devising a plan to try to stop the runaway cost of windstorm insurance.
Consumers like Fontana, fed up with double- and triple-digit insurance rate increases, are beginning to band together. Decades-old home and condo associations, newly formed grass-roots organizations and accidental neighborhood juntas are cropping up around the state to press for solutions to Florida's escalating insurance crisis.
From the Keys to the Panhandle, the groups are raising money, firing off e-mails, holding meetings, sponsoring petition drives and hiring lobbyists and lawyers to make their case in Tallahassee. Many are starting to see a benefit of wielding a collective fist.
At its meeting Thursday night at the Mimosa condominiums on Collins Avenue, the Miami Beach Alliance explored the idea of self-insuring. But instead it decided to use its political clout.
Noting that it is election season, the group will urge its members, representing about 8,000 home and condo owners, to write and call their elected officials about easing the windstorm burden.
Other groups have embarked on more ambitious endeavors.
STANDING FIRM
Born from a backyard get-together in Key West, a consumer activist group known as FIRM -- Fair Insurance Rates in Monroe -- has raised as much as $50,000 in its effort to fight Citizens Property Insurance premiums in the Keys, inspired by one woman's crusade to have her own insurance rates reduced.
Cindy Derocher was outraged when her property insurance bill rose from $5,000 to $12,000. Instead of paying right away, she applied for mitigation credits and whittled it to $9,600.
''That's what started us doing research,'' Teri Johnston, FIRM's president, said. ``We found out that Citizens was charging us $20.91 per $1,000 of principal coverage. That's in comparison to coastal areas on the Panhandle that were paying $4 per $1,000.''
FIRM, founded in February, boasts 4,000 members. The group chartered an airplane to ferry members to the state's Capitol to meet with lawmakers and invited state Insurance Commissioner Kevin McCarty and U.S. Rep. Ileana Ros-Lehtinen, R-Miami, to Key West.
SMALL VICTORY
Its efforts have paid off -- at least temporarily. In May, McCarty issued an order freezing rates in Monroe County for Citizens, the state-run insurance pool that by law must charge the highest rates in the state.
''When we first started this organization, many people said to us that you can't fight government and you can't fight big business and you can't fight the insurance lobby. We have proved that is not true,'' Johnston said. ``When you get a group of concerned, educated citizens together, you can.''
Many around the state are taking that message to heart.
The 5-month-old Homeowners Against Citizens Florida, a nonprofit out of Pasco County, has seen its ranks swell to 7,000 members statewide. The group says it has collected twice as many signatures on a petition calling for a special legislative session to address the crisis.
Similarly, the year-old two-million-strong Coalition of Community Association of Florida, an umbrella group of homeowners associations, is drafting insurance legislation that it says would make it harder for insurers to randomly drop policies and plans to lobby for it next session.
Make no mistake, motivating homeowners hasn't been easy, said Jan Bergemann, president of Cyber Citizens for Justice, a statewide organization that does most of its activism through the Internet.
''Americans are not very easy to rally together. They would rather watch American Idol than look after their insurance premiums, but it's an emergency and people are coming out,'' Bergemann said.

Ocala: section 8 Housing Investments.

Income Property in Ocala.
Ocala: Section 8 Housing is in huge demand. Currently,there is a waiting list for Section 8 rentals. Section 8 rental rates will be raised in the next 60 days.
Marion County has experienced a substantial increase in population during the last 3 years. The need for rental properties has expanded as many potential homeowners have been closed out due to credit restraints and the presence of relocators searching for affordable housing.


It is our opinion that investing in duplex housing between $100,000-$150,000 is a great way to maximize your profits with very little out of pocket investment. Normally, a non-conforming loan requires a 5-10% deposit.
In most cases we can have the seller assist with all or part of our closing costs, thereby offsetting any additional expenses.
Rents for Section 8 housing runs as follows;
Studio Apts = $495.00 per month
1 Bedroom = $510.00 per month
2 Bedroom= $599.00 per month
3 Bedroom= $786.00 per month
4 Bedroom = $810.00 per month
Below is a Duplex property near Marion Oaks. This is a 2bed,2ba unit just recently remodeled.Both units are rented for $560.00 per month.
The duplex is currently listed for $140,000. Our goal is to invest in undervalued property and immediately have them rented out for our clients at a rate that will a return on your investment.
Under the section 8 housing laws, all rents are paid by the State of Florida, which means that the checks are sent on the 1st of every month.
This type of investment property isn`t for everyone, but for those seeking additional monthly income, this could very well be low risk.

Scott Daniels @954-275-0200.
Email: http://by115fd.bay115.hotmail.msn.com/cgi-bin/compose?mailto=1&msg=85F50B7E-DA6D-4892-AA9C-BDEA4DB9C932&start=0&len=11115&src=&type=x&to=realestatefla1@hotmail.com&cc=&bcc=&subject=&body=&curmbox=00000000-0000-0000-0000-000000000001&a=1c2672eeefe8449e5457503a33bbb84f1fdb26bd54c33182c315a3fd138b3cd1
Visit our web site @ www.ocalabesthomes.com

Developer may push for thousands of extra units in 5,000-acre Palm Beach County tract.
By Andy Reid South Florida Sun-Sentinel.
Posted July 27 2006

The switch from citrus to subdivisions could gain steam in western Palm Beach County as G.L. Homes gears up to develop the 5,000-acre Indian Trail Groves.In the first step toward changing guidelines to allow thousands of new homes, G.L. Homes has scheduled a meeting next month with regional planning officials.
G.L. Homes previously proposed building 4,000 homes on the rural property, but recent county projections have the number potentially ballooning to more than 12,000.The builder had once agreed to follow a county development plan for western agricultural land, but state regulators last year rejected that plan.Also, county commissioners might have opened the door to more western development by giving initial approval in May to 10,000 homes on Callery-Judge Grove, 4,000 acres east of Indian Trail Groves.The Callery-Judge Grove proposal calls for about three times as many homes as the county's development plan allows.County officials are negotiating with state regulators to try to salvage their plan, but G.L. Homes cannot afford to wait any longer, company Vice President Larry Portnoy said Wednesday.With the county's plan at a "stalemate," he said G.L. Homes will not commit to limiting the development to 4,000 homes on the property west of the Acreage and south of the J.W. Corbett Wildlife Management Area."We own a very, very expensive piece of property and we are going nowhere very slowly," Portnoy said.Western residents have argued their roads cannot handle traffic that would come from replacing citrus groves with thousands of homes.They also object to cookie-cutter subdivisions moving into an area where most homes sit on an acre or more and horseback riders share the roads with commuters."Callery-Judge just opened the door for everyone else," Loxahatchee resident Nancy Gribble said. "I guarantee [G.L. Homes] is going to come back with some mammoth number of homes."G.L. Homes will not disclose the number of homes proposed until company representatives meet with the Treasure Coast Regional Planning Council on Aug. 21, Portnoy said.He said the proposal calls for a mix of houses and "multi-family" homes, which can include townhouses, condominiums and apartments. Shops, restaurants and other commercial development also are expected."We are really still fine-tuning things now," Portnoy said. "It will be a wide variety."G.L. Homes has suggested building a new road, called Western Way, to accommodate traffic to and from the development. The road would stretch north of Southern Boulevard along the L-8 canal to neighborhoods planned on Indian Trail Groves.Once G.L. Homes submits its proposal, it faces reviews by state and local regulators before it goes before the County Commission.A county plan a decade in the making was supposed to guide development of Indian Trail Groves and land between Wellington and Palm Beach Gardens. The "Sector Plan" called for 27,500 homes -- 8,000 more than once envisioned -- on 53,000 acres west of West Palm Beach.State regulators rejected the plan because of concerns that it did not do enough to address development's potential strain on roads and the environment. The county has yet to approve a new version."Hopefully we can come up with a settlement faster than [Indian Trail Groves] can submit something," said Barbara Alterman, executive director of planning, zoning and building.

Home prices drop from ’05Decline is first for Lee County in 7 years.

Home prices drop from ’05Decline is first for Lee County in 7 years.
By Tim Engstromtengstrom@news-press.com/
Originally posted on July 26, 2006
BY THE NUMBERS/ EXISTING-HOME SALES.
These statistics compare June’s figures to those in June 2005SINGLE-FAMILY HOMES: LEE COUNTY• MEDIAN PRICE: $268,000, down 5 percent• SALES: 891, down 31 percentCOLLIER COUNTY• MEDIAN PRICE: $451,500, down 8 percent• SALES: 274, down48 percentCHARLOTTE COUNTY• MEDIAN PRICE: $222,300, up 3 percent• SALES: 323, down34 percentCONDOMINIUMS:LEE COUNTY• MEDIAN PRICE: $250,000, down 7 percent• SALES: 150, down66 percentCOLLIER COUNTY• MEDIAN PRICE: $508,100, up 1 percent• SALES: 57, down 48 percentCHARLOTTE COUNTY• MEDIAN PRICE: $350,000, up 90 percent• SALES: 3, down 97 percentSOURCE: Florida Association of Realtors


The median sales price of an existing home in Lee County fell 5 percent in June, the first year-over-year decline countywide in seven years.A home sold with the help of a Realtor had a median price of $268,000, down from $281,000 in June 2005, according to data released Tuesday by the Florida Association of Realtors.The decline, coupled with a drop in building permits for new construction of 26 percent over June 2005, is further evidence of the slowing housing market. Earlier this month, Bonita Springs-based WCI Communities Inc. confirmed it would lay off workers because of the declining market.“The market is changing a lot from what it was just a few months ago,” said Pedro Diaz, a real estate agent with Century 21 Birchwood Realty. “It’s a better time to be looking to buy a house because there are more houses up for sale and they are being listed longer.”Home sales slowed 31 percent in Lee with a total of 891, down from 1,297 in June 2005.
Condominium sales plunged 66 percent to 150 sales in Lee, with an average sales price of $250,000, down 7 percent.Statewide, existing home sales decreased 29 percent, although home prices climbed 3 percent, to $257,800. Nationally, existing home sales dropped 1.3 percent in June to a seasonally adjusted annual rate of 6.62 million units. The median price was $231,000, up 0.9 percent from June 2005, the smallest year-over-year price gain since May 1995. The big worry is that declining sales could send shockwaves through the economy, much as the bursting of the stock market bubble in 2000 contributed to the 2001 recession.Economists expect the decline in the economy to contribute to a slowdown in growth but not to an outright recession.The last countywide decline in Lee was recorded in June 1999 when the median price fell 1 percent to $105,200. Declines were noted in December 2000 and April 2002, but those months lacked data from Bonita Springs and Cape Coral, respectively.“That was a little surprising, but I’ve noticed a little weakening in the past few weeks,” said real estate agent Brett Ellis, of RE/MAX Realty Group.However, Ellis said sales numbers may once again begin to climb as sellers lower their prices to attract buyers.“They are getting down to where the buyers are, so I wouldn’t be surprised to see those numbers level out or pick up in next few months,” said Ellis, noting that interest rate increases have slowed. “Buyer power has increased for consumers, and we haven’t seen that for a few years.”Former Lee County resident Joanne Sassaman, 66, just closed on the sale of her Colonial Country Club home this week. She listed the home for sale in January, and it has been under contract since April.“Every other home I’ve sold has sold in seven to 10 days, so this was a little frightening,” Sassaman said from her new home in Bethlehem, Pa. “We ended up knocking about $100,000 off of the original listing price.”The home sold for about $325,000, more than 50 percent higher than she paid two years ago.“I was happy with that,” she said. Dagoberto Giron, 32, of east Fort Myers, finds himself on both sides of the market. He hopes to sell his home on Luckett Road and move to a larger home elsewhere.“Everything is kind of low compared to what prices had been,” Giron said. “I think I will be able to sell my home and get a better deal.”Giron just began shopping Tuesday, but he liked what he had seen so far.“If I see what I like, I’m ready to sign a contract right now,” he said.Nationally, analysts said the growing level of unsold homes will further depress prices in coming months and add to the slowdown in sales.“With interest rates still rising and job growth slowing, the slowdown in sales will continue,” predicted Patrick Newport, an economist at Global Insight, an economic consulting firm.He expects existing home sales to decline by 8 percent this year and 9 percent in 2007.David Lereah, chief economist for the National Association of Realtors, said he thinks the decline in housing sales is beginning to level out.Sales of new and existing homes set records for five consecutive years, but rising mortgage rates that have risen to the highest levels in four years have dampened the sales boom this year. Freddie Mac reported that 30-year mortgages hit 6.80 percent last week, the highest rate since late May 2002.Lereah said price weakness will continue as sellers start cutting their asking prices in the face of weaker demand and rising inventories.He said housing continues to be a “tale of two markets” with previously hot areas experiencing declines and more modestly priced areas showing a boom.

S. Florida homes under repair since Wilma fall prey to burglars.

S. Florida homes under repair since Wilma fall prey to burglars.
By Jennifer Gollan South Florida Sun-Sentinel.
Posted July 24 2006

First, Hurricane Wilma ripped off their roofs, then crooks plundered their refrigerators, kitchen faucets and anything else they could cart away.Thieves in May stole the Frigidaire stove from Richard Wachs' condominium at Sunrise Lakes Phase III, under repair since the Oct. 24 hurricane clobbered South Florida.


"Unfortunately the [construction] workers, when they leave the apartments, they don't lock the doors or shut the windows," Wachs, 85, said in a telephone interview from his temporary apartment in Plantation. "They made no effort to protect the items that were in there."Wachs is among a growing number of hurricane victims who evacuated their homes only to have their belongings pilfered. In the sprawling Sunrise Lakes complex, an ungated seniors-only community, 52 thefts were reported between January and May, up from 33 in those five months last year.Although police don't specifically track hurricane-related crime, several agencies report either an increase since Wilma or blame the storm for a growing proportion of thefts. Despite stepped up patrols in some areas, it is not clear who is responsible.With winds of more than 100 mph, Hurricane Wilma and the string of weaker storms that followed booted hundreds of Sunrise Lakes residents from their homes. Many of the displaced still languish in temporary apartments, paying both rent and condo maintenance fees as repairs stretch into the ninth month."Immediately after the hurricane, crime analyses showed there was an increase in crime in the area," said Sunrise police spokesman Lt. Robert Voss.Fort Lauderdale police say Wilma accounts for a growing proportion of thefts in their city, though the numbers are steady at about 400 for the first five months of both 2005 and 2006."We've had some unfortunate cases where opportunists will take advantage of a broken window that hadn't been repaired or a door that maybe was not as secure prior to Hurricane Wilma," Fort Lauderdale Detective Katherine Collins said.In Margate, the number of theft reports jumped 19 percent, to 100, for January through May this year, up from 81 in 2005, police Detective Chip Kolenda said. In Deerfield Beach, Oakland Park, Tamarac, Weston and other cities patrolled by the Broward Sheriff's Office, residential theft rose 3.2 percent, to 1,113, for the first five months of the year, up from 1,077 the previous year.In Tamarac, Myles Sockin returned to his Southgate Gardens condo in April to find his furniture in pieces and his JVC stereo and two 13-inch televisions stolen. Roofers are repairing seven Southgate buildings comprising 108 condominiums that were evacuated after Wilma."I opened my door, and my apartment looked like Hiroshima," said Sockin, 51, who has stayed with friends since his ceiling collapsed. "We've been victimized by the hurricane, and here we are being victimized by burglars again."Terence McElroy, a spokesman for the state's Department of Agriculture and Consumer Services, said victims of theft might file claims with their insurance companies, report them to the police or sue the companies responsible for the homes' security.Timothy Woods, a vice president at Woods Restoration Services LLC, the Newington, Conn.-based company in charge of replacing water-damaged roofs and walls at Sunrise Lakes Phase III, said his construction supervisors sign an agreement making them personally responsible for locking apartments at the end of each day. No workers have been fired for leaving doors unlocked, he said. And none has been arrested on suspicion of theft."Could people be going there and finding a door open?'' Woods asked. "It's possible, but we are trying to limit access to only the people that need to be in there."Not so, said Richard Fleming, 64, who lost the kitchen faucet from his condemned Phase III apartment."They leave the doors open so workers can come and go," said Fleming, a metal finisher who, with his wife, Gloria, has lived in a rented apartment in Sunrise since November. "People come in and work on the building and see something they want and take it."Sunrise Lakes Phase III was hard hit by Wilma, with 31 of 93 buildings at least partly condemned.Given the comparatively greater extent of repairs needed at Phase III, Woods said, his company hired a private security firm to patrol the property with two undercover guards."It is a wide site, it is very expansive, which is making it a little difficult," Woods added. "But we think we are doing a pretty good job."Sunrise police responded to last November's increase in crime by intermittently assigning two to four extra officers to aid the lone officer who patrols Sunrise Lakes, Voss said. They also "conducted numerous sweeps out there to verify that the workers there belonged there," he said.Arrest figures for thefts were not immediately available, and Voss declined to comment on possible suspects because he said it would jeopardize ongoing investigations.

Insurance rates 'a crisis' for Florida businesses
As businesses confront mounting problems in finding or affording windstorm insurance, civic leaders are grappling for workable solutions.
BY GREGG FIELDS AND BEATRICE E. GARCIA
bgarcia@MiamiHerald.com
NURI VALLBONA / MIAMI HERALD STAFF
PRICED OUT?: Michael Lefkowitz, owner of the Dunkin Donuts at 5130 Biscayne Blvd., has faced escalating insurance prices that have made it difficult to run a business.
Insurance Commissioner Kevin McCarty on National Catastrophe Fund proposal (.pdf)
On the Web For hurricane mitigation information visit the Federal Alliance For Safe Homes
On the Web News on insurers in state receivership
On the Web Office of Insurance Regulation
On the Web Florida Insurance Guaranty Association (FIGA)
On the Web Citizen activist group Fair Insurance Rates in Monroe
On the Web Florida Association of Insurance Agents
On the Web Florida Market Assistance Program
On the Web National Association of Insurance Commissioners
On the Web Florida Department of Financial Services
On the Web Grassroots group Homeowners against Citizens Florida, Inc.
On the Web Citizen activist group Cyber Citizens for Justice, Inc.
July 17, 2006 Businesses in a jam on windstorm coverage
July 3, 2006 Standing up to insurance catastrophes
May 24, 2006 Check your coverage carefully
April 16, 2006 The crisis at hand: covering Fla. homes
March 2, 2006 Wilma's victims cope with claims adjusters
Nov. 20, 2005 Ouch! Cost squeeze tightens
May 25, 2005 High costs leave many homes underinsured
Today Coverage resumed for coastal builders
Today Some local businesses' insurance stories
Today Politicians weigh in on the insurance crisis
Today Tell the state about your business' insurance problems
The massive collapse of the hurricane insurance market for Florida businesses has morphed from an economic headache just weeks ago into a clear and growing threat to the region's economic vitality, experts say.
Among the troubling signs:
• Some sales of commercial property are grinding to a halt.
• Business borrowers are bordering on default with their bankers.
• Companies are developing plans to create their new jobs elsewhere or move out altogether rather than pay the high cost of operating here.
Ultimately, business leaders say, the lack of affordable windstorm insurance could do something no hurricane ever has done to South Florida: produce permanent, crippling economic damage.
''It is a crisis situation,'' said Frank Nero, head of the Beacon Council, Miami-Dade's tax-funded economic development agency. ``This is not just a case of companies making less money. It's not being able to stay here, or expand here, or move here. And that ultimately translates to fewer job opportunities.''
It isn't just a headache for business owners -- much of their higher costs are likely to ripple into consumers' pockets.
For instance, Michael Lefkowitz, who owns three Dunkin' Donuts shops in South Florida, had to raise prices when electricity costs soared earlier this year. Now his insurance is going up 60 percent, leaving him with two unappetizing prospects: raise prices again and risk alienating customers or absorb expenses that weren't built into his budget.
''I'll have to see what the market will bear,'' Lefkowitz said of price hikes. ``I may turn away customers who don't want to pay 15 to 20 percent more for a cup of coffee or a doughnut.''
Lefkowitz says the pain is going to get worse, because his landlords are also passing along higher insurance costs.
That represents the next phase of the situation, said William Holly, president of Holly Real Estate in Miami. The increases hitting building owners ''won't be felt by tenants until next year because pass-throughs are typically calculated at the beginning of the new year,'' Holly said.
Unlike homeowners, who can turn to the state-run Citizens Property Insurance, businesses have no Tallahassee-backed windstorm insurer.
Alarmed civic leaders are banding together to beseech Tallahassee and even Washington for relief. The Broward Alliance, for example, is polling its members on their specific problems in order to form a battle plan.
''Is it access? Is it cost?'' said Jim Tarlton, the Broward Alliance executive director.
Actually, at the moment it's both -- and more. Some insurers are leaving the state, others are hoisting premiums and some are pushing deductibles to levels that could themselves prove devastating if a business gets damaged.
And many business owners worry time is short, the efforts are fledgling -- as the most active period of the hurricane season looms.
Secure Wrap founder Radames Villalon is an example. The Miami firm, which provides baggage-wrapping services at airports, saw windstorm deductibles rise from $61,000 last year to a whopping $1.5 million this year.
''I already told them, I'm not going to take this policy,'' Villalon said.
LENDERS' DEMAND
But that, in turn, could put him into hot water with his bank, which requires adequate insurance on his mortgage and line of credit.
''I called the bank and told them they have to do something,'' Villalon said. But he is growing weary of dealing with it, and notes there's no compelling reason why he must remain in an increasingly costly South Florida.
''I can do my business from anywhere,'' he said.
So can Ted Platon, owner of EuroKitchen in West Miami-Dade. His insurance rose five-fold, but his bank threatened to close his line of credit if he didn't buy it.
Because his prices are locked in by long-term contracts -- EuroKitchen outfits the kitchens in luxury high-rise condos nationally -- he can't pass on the higher costs.
So he will expand staff at existing operations in Las Vegas, New York and Washington, D.C. ''Those are jobs I won't be adding in South Florida,'' Platon said.
Others say commercial real estate -- one of the key components of the South Florida economy -- is being undercut by a lack of insurance.
Recently, Ernesto Casal, a principal in Miami's Capital Commercial Group, had a $6 million warehouse deal fall through over insurance. The buyers' windstorm premiums had been expected to be about $50,000. They came in between $150,000 and $200,000.
''Insurance has always been a last-minute thing that came at the end of the equation,'' Casal said. ``It wasn't something that we truly worried about.''
To be sure, businesses had their windstorm problems going into this season.
For example, the DeSoto Ocean View Inn in Hollywood suffered $70,000 in damage last year. There was a $10,000 deductible, and the insurer paid only $27,000. So the hotel was in the hole for $43,000 altogether.
''Our rates go up, but is our coverage really better?'' asked Steve Welsch, the manager.
Earlier this year, ''insurance costs skyrocketed beyond logic,'' said Alan Ojeda, a developer preparing to start construction on what would be the biggest Miami office tower in two decades.
For some builders, it means assuming more risk themselves.
Related Group, the biggest condo developer in the country, took out just $75 million in coverage on its new ICON Brickell complex, a billion-dollar project, reasoning that it will only come out of the ground by the time hurricane season ends. Lender HSBC agreed.
But next year the developer plans to seek full coverage. It hopes insurers have returned to the market. ''We can't afford a busy hurricane season,'' said Matt Allen, Related's chief financial officer.
A GLIMPSE OF HOPE
Developers and builders got a small break Friday when Citizens, the state-run insurance pool, decided to continue writing builders' risk insurance, which covers ongoing construction projects. The potential lack of coverage had caused panic among some builders and developers.
Meanwhile, some property owners are ''going bare,'' or simply dropping coverage. Bobbi Zoberg, who owns three strip shopping centers, took this approach after the windstorm tab more than quadrupled. Since she owns these properties outright, she doesn't have to accommodate bankers, and her tenants couldn't afford it if she passed the increases along.
''I can't put all my tenants out of business,'' Zoberg said.
BANKS IN THE MIDDLE
Caught in the eye of the hurricane insurance crisis is the banking industry. They require business clients to carry adequate insurance.
But many customers say they can't obtain it. Although banks have the right to buy insurance in the client's name, many banks can't find it either.
''Some of our clients are getting 1,000 percent increases,'' said TotalBank President Bill Heffernan. ``The full impact hasn't been felt yet because a lot of policies don't expire until after hurricane season.''
Institutions are struggling for alternatives. Great Florida Bank, for instance, is assessing whether borrowers can self-insure against some damage, or carry less insurance if they keep a higher escrow on deposit.
It's a time-consuming effort, ''but it's how you build loyalty,'' said Mehdi Ghomeshi, Great Florida's president.
The Florida Bankers Association is heading to Washington next week to lobby Congress for some type of action, possibly a national catastrophe fund. But ''there are no easy answers to this,'' acknowledges Alex Sanchez, chief executive of the industry group.
Locally, the Greater Miami Chamber of Commerce has formed a windstorm task force it hopes will become a statewide movement.
''We are looking at what we can do with other chambers in Florida, and look at other states,'' said Barry Johnson, the chamber's president. ``It's clearly an issue whose time has come.''
Business owners as well as insurance brokers, real estate professionals and bankers are frustrated about the lack of near-term solutions from regulators and legislators.
''The insurance department has dropped the ball on this crisis. By the time they finish talking, we could have been hit by a hurricane,'' says Carlos Allen, vice president of Pan American Assurance, a Miami insurance agency.
Kristy Campbell, spokeswoman for Gov. Jeb Bush's office, said Wednesday that ''the governor has no plans to call a special session regarding insurance.'' Bush created the Property and Casualty Reform Committee in June, Campbell said, to improve competition and create incentives for insurers to remain in the market. The committee's first report is due Nov. 15.
Can Florida wait that long? Ricky Arriola, president of Inktel Direct, is concerned. Arriola heads the Miami chamber's insurance task force.
''At some point, does it become cost prohibitive to stay in Florida?'' he asked rhetorically. ``Then you have employers leaving. You could have real problems.''

Davie puts the brakes on new Wal-Mart.

Davie puts the brakes on new Wal-Mart
BY NIKKI WALLER
nwaller@MiamiHerald.com
Weary but joyful, Davie residents celebrated as they left Town Hall about 2 a.m. Thursday, minutes after the Town Council voted down plans for a Wal-Mart Supercenter at the corner of University and Orange drives.
But the residents' attorney and industry observers caution that the fight is far from over.
'They'll be back,' said Nu Wexler, spokesman for Wal-Mart Watch, a group that tracks the retailer's activity worldwide. ``These fights are absolutely brutal.''
The battle over the Davie Wal-Mart is one of several recent fights over the big-box retailers. Last year, Miramar leaders voted down plans for a Supercenter on Flamingo Road, and a few years ago, resident outrage blocked another Davie Wal-Mart proposal for Shotgun Road.
At University and Orange, the retailer proposed a 24-hour Supercenter for a 36-acre parcel of commercial land that, under the terms of a 1989 legal settlement, is subject to looser development rules, such as smaller buffers and scant landscaping requirements.
After Wal-Mart completed its nearly three-hour presentation to the council, Tucker Gibbs, an attorney hired by nearby homeowner's associations, argued that the 1989 settlement was invalid and inappropriately drawn-up in the first place.
Gibbs also discussed the cost of added police patrols for the store, and Mark Alvarez, an expert witness for the residents' side, said the Supercenter would harm the town's plans for redevelopment along Davie Road.

How much condominium will $250,000 buy?

What you can buy for $250,000.
By Pat Middlekauffspecial.
News-press.
Originally posted on July 16, 2006
How much condominium will $250,000 buy?Agents say there's plenty of inventory at $250,000 now compared to this time last year.Today's buyer can choose from new units as well as resales — and even some waterfront properties at this price point.
Cape Coral
Scanning the Multiple Listing Service, Century 21 Sunbelt Realty's Lenora Marshall found 21 condos available between $248,000 and $252,000. They range in size from 994 to 1,536 square feet, and were built between 1979 and the present.
"Fourteen of these are on the water," Marshall said, "and 12 actually have Gulf access ... one (even) has a garage.""The big news here," she added, "is that now there are all kinds of opportunities for buyers."
"Unfortunately, for that price you can't get both new and Gulf access, but you can get either one or the other."For example, there's a two-bedroom, two-bath 1984 unit in Country Club Place looking out on the 200-foot-wide Rubicon Canal with Gulf access. There's a common boat dock included for $249,900.A new unit in Van Loon Commons with 1,503 square feet and loads of amenities is available at $249,900.
Another in Baruna Bay on Southwest 47th Terrace also has Gulf access. This two-story 1987 complex with 65 units has dockage on a first come, first served basis.And Marshall has a 1999 two-bedroom, two-bath on Chiquita Boulevard. It's close to Cape Harbour, but this is not waterfront.
For the buyer wanting a master-planned community, The Bonita Bay Group's first with a Cape Coral address — Sandoval — opened in January 2005. Phase I, with 565 carriage homes, villas and single-family homes, has passed the 75 percent-sold mark, according to Kitty Green, regional vice president of The Bonita Bay Group.Pulte Homes, a preferred home builder in Sandoval, offers carriage homes priced from the mid-$200,000s.
Fort Myers
In Whiskey Creek, one of the oldest planned communities in Lee County, the popular Village Green built in the 1970s and '80s has condos for about $250,000.According to MLS data supplied by Bob Oxnard of Century 21 Sunbelt Realty No. 1 Inc., there are 14 active listings of these duplex villas, with eight either pending or sold within the last three months. Average square footage is around 1,500 and these units have either one or two garages.
"This kind of low-density won't be built again," Oxnard said.In the heart of downtown Fort Myers, Century 21 AAIM real estate agent J J Cochrane pointed to the historic and restored Earnhardt Building where a two-bedroom, two-bath unit with 15-foot ceilings and original wood floors is listed at $254,900 and sold for $238,000. A similar unit of 950 square feet is listed at $260,000.
Just east of downtown, close to the new high-rise luxury condo project The Oasis, Cochrane turned up what may be a real sleeper.River Garden, a small older complex of 48 units, sits right along the Caloosahatchee River with two of the buildings directly on the waterfront. With units available for $239,900 and under, Cochrane feels these are undervalued. "There is no place to go but up for this complex," she said. "It's a bargain today."There's also nearby Palm Beach Landings, nestled between the new developments of Alta Mar and The Oasis. Here there are units for $250,000 with partial river views, a marina and lots of amenities.
"In these areas of Fort Myers," Cochrane said, "the river is king, and proximity to the water is a driving force in sales price. The good news is that there are choices."Just recently, agents Linda Yeager and Tina Giufre of Coldwell Banker Residential Real Estate co-listed an investor-owned two-bedroom, two-bath unit — never lived in — in the Lennar community of Riverwalk, near College Parkway in south Fort Myers.
Four units in this complex sold in May, with three in the $250s and one over $275,000. With developer units going in the $260s, Yeager and Giufre expect this unit will appeal to buyers at $249,900.
North Fort Myers
In Bay Harbor, a riverfront condo along North Key Drive in North Fort Myers just west of U.S. 41, broker-owner Cindy Roberts of Realty World Roberts offers a first-floor unit with single detached garage and extra storage at $249,900.At the tip of North Key Drive is Schooner Bay, where a two- bedroom, two-bath unit is in MLS at $249,000. Both of these complexes were built in the 1970s and are minutes from downtown Fort Myers.In the planned community of Moody River Estates south of Hancock Bridge Parkway, new carriage homes are being advertised in the mid-$250s.
Naples
Naples broker associate Keith Marvelle, with John R. Wood Realtors, turned up a variety of listings.
"There are some good choices and good variety for people looking to buy now, where in 2005 there weren't," he said.There's a unit in the Blue Heron off Davis Boulevard for $254,500, one in Woodmere Lake Club near Rattlesnake Hammock Road for $249,900 and one in the Abbey at Berkshire in Berkshire Village, again off Davis, at $249,900. The oldest of these, all two-bedroom, two-bath units, was built in the 1980s.
Estero
Joe Pavich, broker-owner of Realty World-Florida, has lived in Estero for almost 20 years.
For someone wanting to live in Estero, Pavich said he would take a buyer with $250,000 to Breckenridge, "... historically the best entry-level condo since the early 1990s."A three-bedroom, two-bath 1,326-square-foot unit there is in MLS at $250,000.Bella Terra, where units were sold by lottery last year, now has a big inventory owned by motivated investors, Pavich said. A two-bedroom, two-bath 1,170-square-foot unit, for example, is in MLS at $249,000, while the builder, Lennar, shows units on its Web site from around $270,000. This community is east of Interstate 75.
Bonita Springs
Looking further south, Pavich likes the Tides at Pelican Landing, in front of Walden Center off U.S. 41. A two-bedroom, two-bath unit with 1,093 square feet is available for $249,000 with a water view.
Pavich also pointed to The Gardens of Bonita, a rental conversion on Matheson Avenue. There's a two-bedroom, two-bath listed at $249,900.Another conversion, The Sanctuary at Imperial River next to the bridge at U.S. 41, has a desirable end unit available at $249,000.
"The good news is, one year ago there was nothing for $250,000," Pavich said.

Fort Lauderdale landlords say property tax increase means higher rent.

Fort Lauderdale landlords say property tax increase means higher rent.
By Brittany Wallman South Florida Sun-Sentinel Posted July 19 2006

FORT LAUDERDALE -- Renters don't pay property taxes, but some of them may feel the pain of the city's proposed budget increase.Some landlords say they'll raise rents to pass on a 13 percent property tax increase commissioners tentatively agreed to Tuesday night. The increase gets final votes Sept. 6 and 19 at public hearings.


The proposed tax rate of $5.23 for every $1,000 of taxable value passed easily, with little discussion. The money would help fund a $503.5 million proposed total budget, one that reflects a much sounder financial house than existed three years ago. Taxes would dip slightly for homesteaded owners, but would rise for others.Mayor Jim Naugle voted against the proposed tax rate, saying it's too high. Commissioner Carlton Moore deliberately missed the vote, walking out of the room and later explaining he opposes it.A little more than half of Fort Lauderdale's property owners use their properties as a primary residence, and thus are protected from dramatic tax increases year to year, under the state Save Our Homes constitutional amendment.The proposed tax increase would affect the other half of the city's property owners, those with commercial buildings, snowbirds who only live here part-time, and landlords with rental apartments or homes.Rental property owners have seen their property tax bills rise year after year in Fort Lauderdale, and some landlords said they're pushing rents as high as they can to recoup the double whammy of taxes and higher insurance bills."Affordable housing in Broward County? These city people, they don't have a clue, and they don't care, I think," landlord Sidney Pike said.Rental apartments are becoming scarcer, a recent housing study showed, and rents are rising steadily."I feel for my tenants," said landlord John Atkinson. He said he tries to avoid drastic rent increases but added he'd have to pass his costs on to tenants. Atkinson said one tenant is a single mom working as a nurse's assistant. His last rent increase of $35, to $695, was not easy for her.He has not told her yet that rent will be rising again.Florida law creates a special status for a person's "homestead," keeping their taxable values from increasing more than 3 percent in a year. Because of that, some people living in homes that would sell for $500,000 may be paying taxes on only a fourth of the value.Landlords have no such protection.Pike, a retired yachtsman, said two waiters from Las Olas-area restaurants, a postal employee and a limo driver are living in his rentals. He said he's agonized over the rent increases he'll have to pass on."I can't tell you want it's done to my state of mind. It put me into a deep depression. "

Miami condo project up for sale.

Miami condo project up for sale
The developers of Midtown Miami, which aims to bring condominiums, shops and offices to a formerly neglected part of the city, are attempting to unload a majority stake in the project.
BY MATTHEW HAGGMAN
mhaggman@MiamiHerald.com
Midtown Miami, the massive mixed-use residential development planned for the former Buena Vista rail yard north of downtown Miami, is up for sale.
The asking price: $375 million.
Developer Joe Cayre said Monday he is selling up to 80 percent of the project for tax reasons but hopes to remain in control of it. Real estate broker Edie Laquer, who is selling the property, said they always planned to sell after construction started.
But market watchers immediately questioned whether this is another example of a residential developer trying to limit risk at a time when the housing market has cooled. While real estate sectors such as office, hotel and retail remain strong, residential developers ranging from home builder Lennar Homes to condominium builder Leviev Boymelgreen have recently shed property they don't plan to build on in the near term.
''This is another sign of where this market might be headed,'' said Jay Massirman, vice chairman with real estate brokerage CB Richard Ellis in Miami. ``It says to me that they're worried about the market . . . The challenge will be finding someone to take over their risk position and bet on the market.''
MIDTOWN CATALYST
City officials view Midtown Miami as a key part of the city's revitalization and an important catalyst in bringing people, development and investment into the Wynwood, Edgewater and Design District neighborhoods, among others.
Sitting on roughly half of a 56-acre former railroad yard just south of I-195, the project is to ultimately include more than 3,000 condo units, shops, offices and an entertainment center, said commercial real estate broker Vincent J. Pastore, who is selling the project with Laquer.
To date, one of 11 planned towers is topped off while two others are under construction.
The proposed sale would not include the Shops at Midtown Miami, which sits on the western half of the property. That project, being built by Cleveland-based Developers Diversified Realty, is under construction and slated to bring big-box retailers back to Miami's urban core.
For years, Miami shoppers have had to trek north to Aventura or south to Kendall for large retailers. Anchor tenants at the 645,000 square foot Shops at Midtown Miami are to include the likes of Target, Circuit City and Linens `N Things.
In 2002 Cayre bought the entire former railroad yard site for just $34.5 million, in a remarkable illustration of how much cheaper land was at the time. The chairman of New York-based Midtown Equities then sold half the property to Developers Diversified Realty for the Shops at Midtown, fetching roughly the same price he paid for the entire parcel.
Cayre then formed a development team including Miami Beach-based builder Michael Samuel to build the large mixed-use condo project on the eastern half of the triangular-shaped property.
COOLING RUMORS
In an interview Monday, Cayre dismissed the idea he is selling the property due to fears of a cooling housing market.
He said because he bought the land so cheaply, he can hold with little worry. But by selling raw land instead of finished condo units, he will not be taxed as heavily, he said.
''I almost make the same money building it after taxes then I do selling it now,'' said Cayre, who acknowledged it may be hard to find a buyer willing to buy 80 percent of the project without being granted full control. ``My CFO tells me we have to sell it now.''
Still, some observers remained unconvinced.
''I find it surprising that a developer who took it this far does not see it through, with a controlling interest, until the end,'' said real estate analyst Michael Cannon. ``Typically you don't cash out the general partner until it is all done. The real profits come at the end.''

Cape to stop utility work, revisit issue.

Cape to stop utility work, revisit issue
Originally posted on July 17, 2006
Amanda Inscore/news-press.comCape Coral residents wait for discussion about utilities work today at the Cape Coral City Council meeting in Cape Coral.
8:45 p.m.
Cape Coral City Council voted tonight to stop work in the Southwest 4 utility expansion area and revisit the resolutions on work there and residents' payments until members can discuss findings of an audit first released by The News-Press.“There are several unanswered questions that we need to review,” Councilman Jim Jeffers said. Council voted 8-0 to stop the work.Mayor Eric Feichthaler said before the vote that utility payments for residents — now $22,000 to more than $40,000 — could "go up or down" depending on how long it takes council to assess the contents of Mike Kessler's audit, which indicates possible overbilling on contracts and high profit margins among contractors."There is no way I would support anything higher," Councilman Tim Day said about the assessment amounts. After Feichthaler announced that there would be no public hearing tonight on the utility expansion, more than half of the 200 people that filled the room exited.The mayor said it's important to postpone discussion on the utility expansion because the council has only had a few hours to review the audit and that it will take some time to determine whether there were any mistakes or wrongdoings."This might take a few weeks, it might take a few months," Feichthaler said. "The audit from what I've seen has to be much more specific... It's shown very little."Feichthaler said that should a decision be made to terminate the expansion contract with MWH Contractors, there must be "60 days notice." He said, however, that at this time council was not considering such an action.One Cape couple expressed relief with tonight's decision."I'm still anxious but it's nice to know they're not starting it," said resident Sue Valenza. "My husband and I were ready to put the house up for sale."Her husband, Buck Valenza, said the postponement tells him council has seen "flaws in the audit.""We just moved here in October and are ready to move out," Sue Valenza said. "We're retired. It's an average community and no one has that kind of money. It's overwhelming. I mean we were expecting to pay something but not that much. That's just crazy."Council will discuss the utility expansion project at its meeting on Monday, Aug. 28. The public will have an opportunity to speak at that meeting. Council indicated that discussion could also continue to later meetings."The real key is to find a way to reduce costs for (Cape Coral residents)," Feichthaler said.However, the mayor said he didn't want to do anything to put residents' health at risk."This is the best quality system," he said.Cape resident Joe Lentini drew a few smiles from council after he asked them to personally pay for the expansion project since the "people of Cape Coral don't want it.""I don't want it," Lentini said. "I'm very happy with what I have. They're forcing me to take something I don't want. We don't want it. Don't force us to take it...Give us a chance, give us a break."
5:30 p.m.
By 5:20 p.m., 10 minutes before the Cape Coral City Council meeting was set to start, most of the seats in the council chambers were filled.Cathy Burton, a resident of the next area slated to receive city water, sewer and irrigation lines stood in front of the entrance to the chambers and collected more than 50 signatures for a petition calling for the council to rescind the massive utilities expansion project.One of the petition signers is Keith Stamp, who is trying to sell his southwest Cape Coral house rather than pay a $48,000 assessment for his 22,500-square-foot property."I just want to see the information," Stamp said. "They need to disclose the bids."Stamp said he understands that the city needs to extend water and sewer lines. He said he objects to how closed the process has been. He added that there has not been an adequate explanation from either the city or MWH Contractors about why the utilities assessments are so high — $22,000 for a standard two-lot property.Outside City Hall, television crews had their towers set up for live shots, and reporters buzzed about inside. Much of the discussion was about the utilities assessments, though not too many mentioned the Kessler International audit, which was posted on news-press.com this morning.
From this morning's updates
A big crowd is expected at the Cape Coral City Council meeting at 5:30 at City Hall.Opponents of the city’s Southwest 4 utilities program hope to pack today''s city council meeting to stop the project.News-press.com will be providing live, minute-by-minute online updates until the meeting concludes.“I expect we’re going to have several hundred people,” said Lloyd Duhon, who helped organize a petition drive over the weekend.The drive collected more than 200 signatures, but the exact total wasn’t known tonight, Duhon said.Several people downloaded the form, which was posted in a news-press.com forum on utilities. How many signatures they collected isn’t known, but they will bring them to the meeting, Duhon said.The project is controversial because of the bills - or assessments - that property owners received to pay for the cost of bringing water, sewer and irrigation service to their homes. The bills start at about $22,000 for a two-lot site and go up from there depending on the size of a person’s property.Tonight’s meeting is the first held by the council since June 12, when it went on summer break.A long meeting already was expected, said Mayor Eric Feichthaler.Utility matters will dominate the session, which begins at 5 p.m. in the council chamber at 1015 Cultural Park Blvd.The council is scheduled to vote on a proposed utility rate increase to help pay for a nearly $500 million expansion of the city’s utilities system. The program includes new and expanded water and sewer plants, wells to supply the water plant, wells to store water for use in the dry season and other improvements.The rate increase will increase the monthly water and sewer bills 7 percent a year for water and about 10 percent a year for sewer through 2010. The change, if approved, is effective Oct. 1 of each year.City Councilman Tim Day said he also wants to discuss whether less expensive options to gravity sewers are available.The city council in office in 1990 proposed using the system, which pretreated effluent and was considered less expensive and less disruptive to yards when it is installed.But residents protested. A group called Citizens for Gravity Sewers, led by activist Cornelius van der Linde, rallied 1,000 people for a public hearing at Cape Coral High School. The council decided to switch to gravity sewers.

Economists don't want rates raised.

Survey: Economists don't want rates raised
WASHINGTON -- July 17, 2006 -- A recent USA Today poll of 54 leading economists found that a majority -- 66 percent -- believe Federal Reserve policymakers will hike interest rates when they meet next on Aug. 8.

However, 61 percent of those surveyed do not believe an additional increase is shrewd, noting that they would not raise rates if they were the ones who had a say in the matter.

More than 50 percent of respondents added that the greater risk is if the central bank raises rates too high instead of keeping them too low.

National City chief economist Richard DeKaser, for one, insists that the Fed's interest-rate policy needs time to take full effect, adding, "We've got enough restraint coming from the Fed already to provide sufficient slowing in our economy to prevent inflationary pressures from getting out of hand."

Half the city's property owners would see a slight drop in real estate taxes -- and the other half a sharp increase .

FORT LAUDERDALE · Half the city's property owners would see a slight drop in real estate taxes -- and the other half a sharp increase -- under the city manager's proposed budget unveiled this week.City Manager George Gretsas proposes the city cash in again on major increases in property values by bringing in an extra $18 million in tax collections to help support an overall $503.5 million spending plan.
The 13 percent increase in expected property tax collections, to $133.4 million, would be borne by only half of the city's property owners: those who own seasonal homes, rental units, industrial space or commercial businesses and new properties on the tax roll.The rest of the property owners, 50.1 percent of them, are protected by Save Our Homes, a state constitutional amendment that limits tax increases on a person's primary residence. Those owners would see a slight reduction in taxes under the city's proposed budget.Gretsas said he's trying to maintain a "slow and steady" approach to taxing and spending in a city that only three years ago almost ran out of money."Drastic anything ends up creating instability," Gretsas said.He focused on "quality of life" issues like reducing crime, cleaning the beach and getting rid of nuisances such as loud motorcycle noise, aggressive panhandling and unsightly newspaper boxes. He is also seeking better services from public works, code enforcement, neighborhood services and the building department.Gretsas emphasized his budget's proposed 4 percent reduction in the tax rate, to $5.23 on every $1,000 of taxable value, because it would bring a little financial relief to permanent, homesteaded residents.But the city's property values increased some 19.5 percent this year. When that's factored in, the proposed tax rate amounts to an increase for almost half the property owners, who don't have homestead protection under Florida law.Spending would also increase.Looking only at the $308.9 million operating budget, or general fund, which pays for police, fire and other essential services, the spending is proposed at 15 percent more than last year's."It's too much," said Mayor Jim Naugle. "I'm going to be looking for ways to reduce spending."Commissioners will decide Tuesday whether to accept his draft spending plan for the budget year that starts Oct. 1. But their vote is only tentative. The public would have time to sound off on the ideas between now and the final votes, which take place at open hearings Sept. 6 and Sept. 19.The spending blueprint relies on the property tax increase, as well as slight increases to water/sewer rates and the storm water fee charged to residents.Gretsas said he was proud of the proposal, which builds on last year's 10.8 percent tax increase and under-spending in various departments, to create a pool of money in reserve for emergencies.Hurricane Wilma smacked Fort Lauderdale last year, leaving $60 million in damage. After the federal government paid its portion, the city was still out some $6 million to $8 million, he said.The budget maintains a reserve of more than $30 million and includes a lot of one-time expenses, he said, such as new equipment.With real estate predictions dire, the city's windfall of tax dollars could run dry in the future as double-digit increases in property values cease. Gretsas said this budget prepares for that, paying for equipment and catch-up maintenance that won't need to be in the next year's budget."There's going to be lean years ahead of us," he said, "if real estate predictors are correct."

Cheaper new homes on horizonTo keep prices down, developers are offering new ideas.
By Dick Hogan.
Originally posted on July 16, 2006.

Don Awrey, 62, patches his yard with sod Friday. Awrey has a piece of property next door and is planning on building a house. Some developers are building more affordable homes in Lehigh Acres as the market cools.
INEXPENSIVE BUILDERSHere are some of the developers who are asking rock-bottom prices to build minimal homes in Lehigh Acres:• Affordable Homes by AI: Expandable single-family homes, designed to add rooms easily, for as little as $159,000 — with $10,000 off that for police officers, firefighters, teachers and nurses.• Innovative Development Group: Twinned-out attached villas for as little as $150,000.• Troy Development: Single-family homes for as little as $160,000.• York Pre-engineered Residences: Modular homes assembled in three or more components, starting at $125,000 plus the price of the lot.
Increasing numbers of Southwest Florida builders are going to the low end of the new-home market — betting that their spartan offerings will hit a sweet spot in a post-boom economy.Experts say they may be in the right place at the right time.Land is cheap, subcontractors are hungry and there's a glut of the expensive homes that were being churned out during last year's go-go real estate market.
Plus, affordable housing has become a huge issue in Lee County with incomes of many working families failing to keep up with soaring real estate prices.The Horizon Council, an advisory group to the county Economic Development Office, has formed a task force to study the issue. Cape Coral officials may allow row houses so they can fit more homes on a piece of property. And Bonita Springs officials are looking at ways to reward developers for providing affordable housing as part of new projects.
Until recently, private builders have expressed little interest in building low-cost housing.Now some local developers are willing to accept smaller profit margins to offer homes well less than $200,000, and that's a new phenomenon, said John McIlwain, at the Washington-based nonprofit Urban Land Institute.
"It's a natural response to a cooling market," McIlwain said. "They're moving back to people who are buying houses to live in rather than to invest."If the trend becomes widespread, McIlwain said, it probably will be in housing markets such as Lee County's, where prices have fallen and inventories of more expensive houses has soared.
Even a few months ago, Lee Building Industry Association executive vice president Michael Reitmann said there was little or no interest as most builders were focused on houses costing $250,000 and more.That's changed in a softening market, he said.
The median price of an existing home sold with the help of a real estate agent was $286,500 in May, down 11 percent from the all-time high of $322,300 in December 2005, according to the Florida Association of Realtors.Even with the lower prices, a typical house still is out of reach for many.Seventy percent of working families in Lee County earn less than the average $52,927 because people in high-income jobs skew the number.
A family making the average income can afford only a house in the $122,000 range; builders say they have a financial incentive to go down the income scale."There is a slim margin there, but you know, when you're doing 50 to 100 houses, those margins start to add up," said Kendra Maroon, of Innovative Development Group. The firm is gearing up to offer twinned-out attached villas for as little as $150,000 in Englewood and Lehigh Acres.
It helps that builders are able to buy land more inexpensively than in last year's frenzied market, she said. In Lehigh Acres, for example, "they might not get the $50,000 they could last year, but they might just get $35,000."Fort Myers-based real estate broker Denny Grimes, of Denny Grimes & Co., said the builders putting up cheaper houses appear to be on the right track."The magic price point that I've seen has been builders getting under the $200,000 mark," Grimes said.
About 500 existing homes less than $200,000 are on the market in Lee County, he said, most of them pretty dilapidated. The total inventory of existing homes for sale is about 12,500, three times what it was a year ago.
"It'll be interesting to see if the market accepts a stripped-down version with no bumpers and no tires," Grimes said.
Cape Coral-based Bodo Kleber, of Affordable Homes by AI, is rolling out a line of "expandable homes," engineered in advance to have additional bedrooms, bathrooms or a garage added on to the minimal two-bedroom, one-bath model he sells for $159,000.He offers $10,000 off that price for essential workers such as teachers, police officers, nurses or firefighters."It took me about four months to talk to engineers, architects and the counties (Charlotte and Lee)," he said. "The whole idea was to be able to stay in the same house instead of having to move up to a larger house."
Having more builders offer inexpensive homes has created new choices for potential buyers.Retired professional hockey player Don Awrey hopes to sell his house in Lehigh Acres, build another one on a lot he owns next door, and perhaps "come out with some cash in hand."
Awrey, 62, is shopping for a builder and already has talked to Lehigh-based York Pre-Engineered Residences, which sells modular homes assembled in three or more components, starting at $125,000 plus the price of the lot.The dilemma, Awrey said, is that he's not sure what he'll get for his existing house because a glut of houses in Lehigh has sent prices down for the past few months."I understand how a lot of speculators are going to be left holding the bag," he said.
It's not just houses and land that are more reasonable, said Jim Morrissette, president of Troy Development in Fort Myers, which will sell houses for as little as $160,000 for a three-bedroom, two-bath house in Lehigh Acres and Charlotte County.There's no longer a shortage of subcontractors who do the nuts and bolts of building a house, he said.
"It's much easier to get your hands on the sub-trades now than it was even four months ago," Morrissette said. "They're more readily available" and willing to work for less.Orlando-based economist Hank Fishkind said private enterprise is unlikely to make much of a dent in the need for affordable housing even in a soft market."There have been some attempts, but I really don't see a substantial commitment," he said.
What's needed in the long run, he said, is government action to make cheaper houses more profitable by giving builders incentives and making rezoning easier.But government can do only so much to help and sometimes even has to do things that push prices up, said Wayne Daltry, Smart Growth director for Lee County.
For example, he said, as more people move into Lehigh, it will become necessary to put in central water and sewer systems rather than the wells and septic tanks that prevail now.Still, he said, Lee is trying to make it easier for developers to build work force housing. Permitting is being made more flexible, and sites for the housing are being figured out in advance "so developers aren't left spinning their wheels."

Downtown project by WCI up in air Developers to speak at council meeting Monday.

Downtown project by WCI up in air Developers to speak at council meeting Monday.
By Betty Parker .
Originally posted on July 15, 2006
IF YOU GO• What: Fort Myers City Council meeting, during which members will hear from WCI representatives about a development project in downtown Fort Myers• When: 4:30 p.m. Monday• Where: City Hall, 2200 Second StFriday's deadline for a response from WCI developers about a development project in downtown Fort Myers passed with no new information provided.Instead, the developers requested time to speak at Monday night's City Council meeting, said Don Paight, Fort Myers' director for downtown redevelopment."Their response was to say they'd like to be on the agenda for Monday night," Paight said, adding the company had that option.
Some council members said they expected more of a response Friday, but would wait.They also said they have little hope the company will stay with the project.
"My sense is that they're going to say 'Thanks but no thanks,'" said Councilman Randy Henderson. "I just hope they say the 'thanks' part."Councilman Warren Wright said he thought city staff gave "misdirection" on the project."If WCI wants to pull out, I really can't blame them" Wright said. "The staff put us in a bad light with a multimillion-dollar company."
Henderson also said there were issues about how the city's staff handled negotiations with the company.At a May meeting WCI officials said they had focused on legal and contractual project details — at city staff direction — instead of design changes council members wanted.
The developers said then they'd put about as much money and time in the project as they were willing to without a contract.City officials, meanwhile, said they wanted design changes before signing the contract.The project appeared stalled, but ended with an agreement that WCI would consider the council's desired changes, and bring back a decision on those details Friday.
Councilman Mike Flanders said earlier this week that if WCI did not have the suggested changes done by Friday, he was ready for negotiations to end."It's like we tried to get married, but we didn't quite make it to the altar," Flanders said. "Now let's all give each other a hug and get on down the road."
The project included a 200-plus room hotel, residential units and retail space on the river in downtown Fort Myers.If WCI does pull out, council members said they'll have to decide what happens next.Council members thought the firm that came in second to WCI when that company was chosen almost two years ago could be a good choice.
But Henderson and Flanders said it's uncertain whether that firm still would be interested.Starting over to solicit a new round of proposals for the city-owned property is another option, they said.

Louisiana company claims mineral rights to to 1,000 properties in Palm Beach County.

Louisiana company claims mineral rights to to 1,000 properties in Palm Beach County.
By Marc Freeman South Florida Sun-Sentinel Posted July 14 2006

Wellington -- Ed Muller thought the form letter with its seemingly outrageous claim looked like junk mail:Could a Louisiana company really hold rights to dig up minerals beneath the house he has owned here for 10 years? And would he have to pay at least $1,000 to remove this sudden "cloud" over his Greenview Shores home's title?

"These guys came out of the woodwork," Muller, a commercial real estate broker, said of the mailing from Southern States Land & Timber LLC. "It's almost like an extortion attempt."But a review of Palm Beach County court records verified the company's notice as authentic and far-reaching: There are mineral rights claims affecting 1,000 properties, covering thousands of acres in Wellington and other areas in the county.On June 27, Southern States declared its interest in "oil, gas, and mineral rights and deposits" on these lands, as well as the legal authority to "test for, explore and conduct whatever extractive activities are necessary."The company did not indicate when or whether that would take place. It only wants homeowners to be aware of the possibility that the company could show up to stake its claim."It's perhaps more intimidating or scary to the residents than it ought to be," said Harry J. Smith, executive vice president and general manager of the Franklin, La.-based business. He declined to reveal the company's plans, or whether it intends to extract minerals."We feel there are valuable rights and the value will change over time," he said. "We want to protect the asset, whatever it's worth."Homeowners who want to avoid any chance of excavation may seek a company waiver, Smith said.The price is about one-third of 1 percent of the property's value, or $440 for a one-acre or smaller lot, whatever amount is greater. For a $500,000 home, the cost is $1,500.Residents may opt to wait and obtain the waivers at the time they decide to sell their properties, so there's a guaranteed clear title for real estate deals, Smith said.The 104-year-old company long ago owned the land -- among 2-million acres of holdings in Florida -- but never relinquished mineral rights in some areas, he said. Southern States reaffirms its interests every 30 years, as required by Florida law.Linda Culbertson, spokeswoman for the Palm Beach County Clerk of the Courts, said Southern States' notices were properly filed according to state statutes, Chapter 712, a section titled Marketable Record Titles To Real Property.Homeowners wondering whether they are at risk for similar mineral rights claims can pay for a title search of their property. Such searches typically are required for real estate transactions.Southern States last filed its mineral rights notices in 1976, and will again in 2036, Smith said, acknowledging that homeowners were caught off guard. Along with Palm Beach County, notices were sent to owners of 2,000 properties in Martin County.Wellington resident Lew Blatte says the claim doesn't make any sense. He says his Sugar Pond home of 14 years is surely not on top of an untapped oil reserve or anything worthy of excavating."As far as I'm concerned there's nothing under anything out here except sand and water," said Blatte, publisher of Wellington The Magazine.But other homeowners are scurrying to figure out their legal options, wondering whether drilling is imminent and whether they should pay for a waiver from the company.Muller says his attorney discovered that Southern States granted a release of its mineral rights claim to his property in 1978, so it shouldn't be an issue for him today. He's seeking to have the notice removed from his property records, so it doesn't interfere with his ability to refinance his mortgage.Smith says he expects challenges, noting that in some cases, "it could be our records are wrong."Title searches conducted before real estate closings should reveal whether anyone has mineral or other rights to a property, said Larry E. Bray, a real estate attorney in Palm Springs. In most cases, a release of those interests is attached to the title and it doesn't become an issue.Also, homeowners usually purchase title insurance to protect them against all future claims."I don't think most [owners] have a worry," Bray said.If title companies failed to uncover Southern States' mineral rights, people may have purchased their homes without ever knowing about it, Smith said.To Cathie Blatte, who along with her husband Lew plans to stay in their home, it sounds questionable."It's totally ridiculous to hold this over us," she said. "It's like, `Come up with some money or you'll have a hard time when you try to sell.'"

Palm Beach County leaders push housing ideas to avoid losing workers .

Palm Beach County leaders push housing ideas to avoid losing workers .

By Andy Reid
South Florida Sun-Sentinel
Posted July 13 2006


A coalition of Palm Beach County business leaders on Wednesday called for creating 98,000 new affordable homes during the next 20 years to avoid losing workers to less expensive areas.

The Housing Leadership Council, started by the Economic Council of Palm Beach County, unveiled a housing study showing what most already knew -- homes here cost too much and salaries are too low for workers to afford them.



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The study identified a $209,071 gap between what a typical Palm Beach County household can afford to buy and the median price of a house here.

It lays out the need for creating more homes priced for households that make between $26,000 and $63,000 a year.

The council calls the study a necessary first step to help government officials and other decision makers come up with solutions.

The group has yet to endorse specific ways to produce affordably priced homes but has patterned itself after a similar organization in Broward County.

The Broward Housing Partnership this year called for: creating a local housing trust fund, offering no-interest loans, encouraging development of rental housing, streamlining the development approval process and using more local tax dollars for housing efforts.

This fall, the Housing Leadership Council plans to propose affordable housing solutions for Palm Beach County.

"Everything is on the table," said attorney Arthur Menor, who serves on the steering committee of the Housing Leadership Council.

The study shows some "guilt" can be assigned in the affordable housing problem, County Commissioner Warren Newell said.

Businesses should have been paying their employees higher salaries and builders should offer less expensive homes, he said.

"Industry should have been recognizing this years ago," said Newell, who said he was labeled a "communist" for calling for more affordable housing five years ago. "Now we are all going to have to deal with it."

Businesses cannot afford to raise salaries high enough to catch up with home prices, representatives of the Housing Leadership Council said.

"The business community is not going to solve this problem," said Rod Macon, chairman of the Economic Council. "Our hope is that this becomes a community-wide effort."

Palm Beach County's "incessant development pattern" produces new homes priced too far out of reach of most residents, according to the study prepared by Dr. Ned Murray, an urban planning professor at Florida International University.

Murray's study also finds that rising home values leave few affordable options in existing neighborhoods.

The median sales price -- the point at which half are higher and half are lower -- in Palm Beach County was $392,900 during the first quarter of 2006.

That would be too expensive for about 90 percent of current Palm Beach County households, according to Murray.

The median household income in the county was $52,825, according to U.S. Census figures adjusted for inflation. The median annual wage for all occupations in the county was $27,851, according to the study.

"You see significant affordability gaps," Murray said. "We have produced a housing supply that is a complete mismatch ... with working residents."

The study included a survey of the top 50 employers in Palm Beach County and a sampling of about 150 other businesses. About 58 percent of those employers indicated that housing prices impacted their ability to recruit new employees. Forty-four percent indicated housing costs impacted their ability to retain employees.

Thousands of commuters travel to Palm Beach County for work each day, but local businesses run the risk of losing those employees as more companies spring up offering them jobs closer to home, said Kelly Smallridge, president of the Palm Beach County Business Development Board.

That already has some Palm Beach County companies considering moving to St. Lucie County and other places where land and home prices are cheaper, said Smallridge, on the steering committee of the Housing Leadership Council.

"It is not just an employee retention issue. It is also an employer retention issue," Smallridge said.

Conditions indicate a slower hurricane season -- for now.

Conditions indicate a slower hurricane season -- for now.
By Ken Kaye South Florida Sun-Sentinel Posted July 12 2006

Compared with last year's frenzied July, this one should be a picnic.While it's no guarantee the entire hurricane season will be calm, this month might see one or two named storms, which would be normal, forecasters said.

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Last July saw five named storms, including three hurricanes, the most active on record. It helped make 2005 the busiest year on record, with 28 storms, including 15 hurricanes.What's different this year: Strong upper-level winds are inhibiting tropical systems from forming, said Jeff Masters, chief meteorologist for The Weather Underground, a weather-tracking Web site."A developing tropical storm is very fragile," he said. "The winds blow away all the heat and moisture that the storm needs to develop. Once a storm becomes a fully developed hurricane, it is less fragile."Another good sign this year for South Florida is that so far the Bermuda High, an area of high pressure in the Atlantic, does not extend as far west as it did last year. That means storms likely would be steered around its edge to the north of this region, Masters said.But he cautioned that conditions could change quickly."The pattern could easily shift to one less favorable for South Florida during the months of hurricane season that really count, August through October," he said. "But so far, this pattern has held for six weeks, and it is common for these type of patterns to go on for two to three months."Although no tropical threats were on the horizon on Tuesday, a tropical wave was expected to bring about an inch of rain to South Florida today, the National Weather Service in Miami said."It will mainly be heavy showers and thunderstorms," meteorologist Roberto Garcia said. "There could be some localized flooding."Thursday and Friday should see drier conditions, the weather service said.So far, this year, only Tropical Storm Alberto has emerged, hitting northwest Florida on June 13.In a normal year, July sees one named storm, and the month can go without any storms at all, as was the case from 1999 to 2001. The tropics usually don't heat up until mid-August.But by the middle of last July, the tropics were boiling.A minimal Hurricane Cindy struck south of New Orleans on July 6. Hurricane Dennis hit the Florida Panhandle as a Category 3 system on July 10. And Hurricane Emily was in the process of growing into the earliest Category 5 on record, striking northeast Mexico on July 20.In addition to stronger upper level winds, sea surface temperatures are about 2 degrees lower this year than they were last year, reducing the chance of a powerful hurricane in the Atlantic this month, said Phil Klotzbach, an associate of hurricane prognosticator William Gray at Colorado State University."Although we do not expect to see as many storms in the deep tropics as we saw last year, there is always the possibility that a storm could form in the Gulf of Mexico and do considerable damage," Klotzbach said.Klotzbach and Gray predict that 17 named storms, including nine hurricanes, will develop this season. That would be considerably more active than a normal season of 11 named storms, including six hurricanes.Even if this month remains quiet, they likely will hold to that forecast, Klotzbach said."We tend to look more at large-scale atmospheric and oceanic parameters," he said. "I will say, though, that if we do get a storm in the deep tropics this July, it will certainly give us more confidence at keeping our forecast where it is -- or increasing it."

Green Tee complex going condoNext to Fort Myers Country Club.

Green Tee complex going condoNext to Fort Myers Country Club, units have been rental since 1968.
By Dick Hogan Originally posted on June 29, 2006

Mike Andre, 13, tees off in front of the Green Tee Apartments Monday while playing a round of golf with some friends at the Fort Myers Country Club. The Green Tee Apartments were recently sold and are being converted into condominums.

The Green Tee Apartments — a rental community since it was built in 1968 — is being converted to condominiums.Green Tee Group LLC, based in Fort Lauderdale, recently purchased the 123-unit complex on Maravilla Avenue in Fort Myers for $12.5 million from Green Tee Apartments LLC.At least one current resident said he may take the new owners up on their plans to sell the apartments, next to the Fort Myers Country Club.
"I'm seriously thinking about it," said Martin Kennelly, a retiree from Chicago who's lived at Green Tee nine years in his one-bedroom apartment. "It's convenient, and I have a view of the golf course. It's quiet."Julian Telias of Green Tee Group said he plans to remodel the entire complex and start selling them soon. "We hope to open the sales center in the next three months. We are going to make a lot of improvements in the landscaping, in the swimming pool area and in the units."
Prices will run between $100,000 and $200,000 for the one-, two- and three-bedroom apartments, he said.Bob Pekol, a real-estate agent with VIP Commercial-TCN Worldwide, was a part owner of the company that sold the complex.The idea was always to do a conversion, he said, so a lot of work has already been done on the roof, the pool and the air-conditioning system.
It's a unique location because of its proximity to the downtown business district as well as the golf course, Pekol said. "You're not going to find an apartment where you're looking over a golf course. There's demand for good quality condominiums near the downtown offices."Condo conversions are rare in downtown or nearby, but about a dozen high-rise condominiums on the Caloosahatchee River are in various stages of development. Furthest along, and closest to Green Tee, is Cameratta Properties' 32-story High Point — under construction on West First Street.
Don Paight, executive director of the Fort Myers Redevelopment Agency, said Green Tee's condo conversion will have both positive and negative effects on the city.On the one hand, he said, the conversion will provide a supply of relatively inexpensive dwellings for people who want to buy in that area.But, Paight said, losing those rental units will also hurt the city's housing market. "It's difficult for people who are renting and can't buy, and a lot of those are working people."
He noted that a few smaller developments in downtown have gone condo recently: the apartments in Patio de Leon and the Earnhardt Building, both originally intended as rentals.Gloria Berger, a retiree from Brooklyn in New York City who lived at Green Tee for 13 years before leaving April 30 because of disruptions from remodeling, said she liked it the way it was and that it's too bad the complex is being sold as condos.
"I had no intentions of moving," she said. "You had the scenery, it was nice. I really didn't want to go. But I can't afford to go condo."

South Florida owners are losing their homes; foreclosures rates rise nationally.

South Florida owners are losing their homes; foreclosures rates rise nationally.
By Robin Benedick and Andy Reid South Florida Sun-Sentinel.
Posted July 9 2006

The number of foreclosures is ballooning as strapped homeowners can no longer make their mortgage payments or quickly unload properties in a cooling housing market.Among those most at risk: owners who used creative financing to stretch their budgets in the 2000-2005 housing boom. Buyers who took out a five-year adjustable-rate mortgage in 2000 are seeing their house The new payments usually are much higher, and homeowners looking for a way out typically can no longer sell in a few days or weeks, as they could during the height of the market. Today, a large inventory, high prices and rising interest and insurance rates make selling difficult. Those who can't hang on often have their homes taken over by their lender."I'm seeing foreclosures in many areas where they just weren't prevalent before,'' said Rhonda Light, who operates Foreclosure Reporting Service, a Hollywood firm that annually tracks thousands of foreclosures in Broward and Palm Beach counties. "The foreclosures we're seeing now are all over the board and in all different price ranges.''Nationally, foreclosures were up 72 percent in the first quarter of this year compared with the same period last year, according to RealtyTrac, a California firm that monitors the market.The pace of foreclosures in South Florida seems to be accelerating. Almost a third of Florida's 29,636 foreclosures were in South Florida in the first quarter of 2006.In Broward, foreclosures were up in the first quarter over the end of last year by 57 percent. In Palm Beach, they jumped 69 percent, and in Miami-Dade, they were up 17 percent.Overall, South Florida had about 3,000 more foreclosures than at the end of 2005 -- a jump of 40 percent."We're seeing people who have overbought and their rates are going up now and they can't afford their houses,'' said Brad Geisen, president of foreclosure.com, an online foreclosure listing service based in Boca Raton.For some, refinancing mortgages can prevent foreclosure.That worked for Dalia Hartwig of Boynton Beach.Hartwig said she and her husband fell behind on mortgage payments after injuries left them unable to work. When disability payments finally kicked in, they were too far behind to catch up. So they refinanced their loan to avoid the home being auctioned at the courthouse. Now, they can sell the house, pay off their debt and search for a smaller, more affordable house."We got behind on a couple of payments. ... It just got worse instead of getting better," said Hartwig, 53. "Thank God we were able to refinance."Others aren't so fortunate.Molly and Yvette Sealey of Miramar surrendered ownership of their home last year with the hope of being able to buy it back.The mother and daughter had fallen $15,000 behind on their mortgage, and turned to investors to help them keep their 3 1/2-bedroom home of 20 years. They agreed to become tenants, receiving no credit for the equity in their house.Meanwhile, they struggle to pay the rent, which is $1,500 a month. That's $425 more than they paid on the mortgage when they owned the home."This has caused me to cry every day,'' said Molly, 74, a retired nurse. "I wish I had never gotten behind in my mortgage. That was my biggest mistake.''Some struggling homeowners have paid high fees to would-be rescuers, only to find they were scammed. Lawyers, financial counselors and government agencies report an explosion in such complaints as more homeowners find themselves unable to keep up with their payments."We've been warning people that this is coming,'' said Doug Duncan, senior vice president and chief economist at the Mortgage Bankers Association in Washington. He said more than half the loans on the books today are less than three years old, and the peak delinquency period for loans is when they are three to five years old.In Miami, economists and real estate experts fear a glut of new condos hitting the market could cause a wave of foreclosures if investors can't sell their units or make the monthly payments.Eventually, perhaps in two to five years, the tens of thousands of condos being built will sell, perhaps at lower prices, predicts economist Stan Geberer of Hank Fishkind & Associates in Orlando.Stanley Gordon is in the foreclosure business, trying to make money off the homes other people couldn't afford to keep.He shops for bargains at foreclosure auctions held twice a week at the Palm Beach County Courthouse in West Palm Beach. He said he buys about one home a month and either fixes it up for a quick resale or holds onto it as rental property. Investors have to pay the full cost of the home the day they bid on it and risk shouldering the cost of unforeseen repairs.Gordon said he can't help but wonder why the previous owners of the homes he buys did not sell the properties before losing them."That is too emotional to think about," Gordon said. "It is just business.

State offering $250 million to help homeowners prepare for hurricanes.

State offering $250 million to help homeowners prepare for hurricanes
By Michael Peltier The Stuart News Posted July 5 2006

TALLAHASSEE · Florida homeowners seeking to make their homes more hurricane proof soon will be allowed to tap into a $250 million pool of state money to assist their efforts.But the relief won't come overnight, and property owners must be willing to back up their requests with cold, hard cash.
State officials plan to begin processing applications in August for a matching grant program that could put up to $5,000 in state money into the hands of qualified homeowners in the next five months."It would be fair to say, given how the first phase works, our goal will be to have money in the hands of thousands of homeowners and contractors to begin making improvements before this hurricane season is over," said Tami Torres, spokeswoman for the Florida Department of Financial Services, which is overseeing the program.In May, Gov. Jeb Bush signed a bill that provides dollar-for-dollar matching grants of up to $5,000 in state funds for qualified property owners who want to strengthen their home's chances of surviving a storm. The program is part of a sweeping hurricane-assistance package that also provides aid to governments, mobile home owners and others."As I've traveled around the region, I see a lot of people don't even know this is going on," said Rep. Ralph Poppell, R-Vero Beach. "There have been some people calling us about it, but not as many as we would have hoped. That will probably change."The state is in the process of instituting the $250 million program. The law requires state officials to set up a process that will require inspectors to pass drug screening and criminal background checks.Approved inspectors also must have some type of hurricane training or experience, Torres said.The program is limited to owners of single-family homes worth $500,000 or less. The property must be a primary residence. Applications will be evaluated on a series of factors, including hurricane threat, what can be done to improve a structure's survivability and the cost-effectiveness of the improvements."We're not talking about mobile homes or condos," Torres said. "This is really a single structure program."Applicants must first undergo an inspection to determine what, if any, improvements can fortify their homes. The state money must be used for hurricane-proofing endeavors including shutter installation, roof improvements and other work described in the law.Torres said homeowners living in hurricane-prone areas of the state would be given priority."The statute was very clear that this is not an entitlement program or an income-based program," Torres said. "It is a program aimed at reducing hurricane damage in the state of Florida."

homeowners association and the board of directors has threatened to fine me because they say I am not following all of the rules.

Q: I live in a homeowners association and the board of directors has threatened to fine me because they say I am not following all of the rules. They also told me that if I do not pay the fine they will place a lien against my home. Are they able to do this? — If your homeowners association's governing documents so provide, the association can levy a fine against you for violations of the association's rules, and other provisions of the governing documents. You cannot be fined for a failure to pay assessments or other charges. The association can also suspend your right to use common areas and facilities.
A: In 2004, Chapter 720, Florida Statutes, which governs homeowners associations, was amended to provide that a fine cannot become a lien. However, the association can seek to collect a properly levied fine by filing a lawsuit. Such lawsuits are typically "small claims" lawsuits, and whoever wins the lawsuit is entitled to collect their reasonable attorneys fees and costs from the losing party.In anticipation of legal action to collect a fine, associations should be careful to properly follow statutory requirements, as well as any requirements contained in their governing documents, in order to properly levy a fine. Chapter 720, Florida Statutes, states that a fine may not be imposed without notice of at least 14 days to the person sought to be fined and an opportunity for a hearing before a committee of at least three members appointed by the board. The members of the fining committee cannot be officers, directors, or employees of the association, nor can they be the spouse, parent, child, brother, or sister of an officer, director, or employee. If the fining committee, by majority vote, does not approve of a proposed fine, the fine may not be imposed.The homeowners association's governing documents should also be consulted because sometimes there are additional requirements imposed by them to properly levy a fine.