Local governments across Georgia are getting ready to jump into the house-flipping game —- financed with federal tax dollars.
Government officials and housing organizations in Georgia will have $153 million to spend under the Neighborhood Stabilization Program, part of the federal $700 billion bailout of the banking system. The aim is to buy, repair and sell or rent run-down homes and create affordable housing, while stabilizing neighborhoods distressed by foreclosures and abandoned properties.
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“This is such a golden opportunity if it is done right,” said Evelyn Nu’Man, director of the Bureau of Housing for the city of Atlanta. “They are calling this disaster recovery money. The housing market is in a disaster.”
The enthusiasm of some government housing officials is being tempered by elected officials, real estate professionals and others who say the NSP creates huge potential for corruption, ineffectiveness, waste and conflict.
Tuesday, November 11, 2008
Tuesday, September 30, 2008
Will AIG sell Atlantic Station to pay for its bailout?
The new chief executive of American International Group said the insurance giant will have a list next week of the assets it plans to sell to repay its $85 billion federal loan. Will Atlantic Station be in the mix?
AIG Global Real Estate, a subsidiary of AIG, is the majority owner of the unfinished mixed-use development in Midtown.
AIG Global Real Estate, a subsidiary of AIG, is the majority owner of the unfinished mixed-use development in Midtown.
Friday, September 5, 2008
Asian Real Estate Association Launches Atlanta Chapter
A national real estate trade association that seeks to promote home ownership among Asian-Americans launched its Greater Atlanta chapter at a gala Aug. 23.
The Asian Real Estate Association of America, or AREAA, educates housing-related professionals who serve Asian Pacific American communities around the country.
The organization was founded in 2003 and now has 12,000 members across 38 states. Its Atlanta chapter was created in May but was officially inaugurated at the gala.
AREAA seeks to help Asian homebuyers overcome the linguistic, cultural and knowledge barriers that cause lower Asian home ownership rates in the U.S. relative to other ethnic communities.
The Asian Real Estate Association of America, or AREAA, educates housing-related professionals who serve Asian Pacific American communities around the country.
The organization was founded in 2003 and now has 12,000 members across 38 states. Its Atlanta chapter was created in May but was officially inaugurated at the gala.
AREAA seeks to help Asian homebuyers overcome the linguistic, cultural and knowledge barriers that cause lower Asian home ownership rates in the U.S. relative to other ethnic communities.
Friday, July 4, 2008
Real estate market threatening Georgia banks
Nearly $1 out of every $5 on Georgia banks' loan books bankrolled homebuilders and real estate developers — by far the highest proportion in the state in at least 30 years, according to federal regulators' data.
Even during the savings-and-loan crisis of the 1980s and 1990s, when thousands of banks and thrifts across the nation failed, Georgia banks were far less exposed to these higher-risk loans. Today, the banks have double the concentration of those loans, according to federal data on banks.
Such loans are considered higher-risk than mortgages or conventional business loans because of the boom-and-bust nature of the real estate development business and the uncertain value of assets such as raw land and unfinished projects.
Even during the savings-and-loan crisis of the 1980s and 1990s, when thousands of banks and thrifts across the nation failed, Georgia banks were far less exposed to these higher-risk loans. Today, the banks have double the concentration of those loans, according to federal data on banks.
Such loans are considered higher-risk than mortgages or conventional business loans because of the boom-and-bust nature of the real estate development business and the uncertain value of assets such as raw land and unfinished projects.
Wednesday, June 11, 2008
Soft condo sales prompt shift to rentals
"Building condos right now is next to impossible; it really is," said Stephen Franco, a partner at Franco DeFoor Properties, an Atlanta real estate development company. "It's just financing. You can't get financing for condos."
High-end apartment complexes are in the works across the metro area, from trendy intown Atlanta neighborhoods to more suburban locales. Franco DeFoor is planning to build 250 to 300 upscale apartments on Memorial Drive in southeastern Atlanta's Reynoldstown neighborhood, not far from a cluster of condo complexes.
"The new darling child of multifamily residential is rental," Franco said.
High-end apartment complexes are in the works across the metro area, from trendy intown Atlanta neighborhoods to more suburban locales. Franco DeFoor is planning to build 250 to 300 upscale apartments on Memorial Drive in southeastern Atlanta's Reynoldstown neighborhood, not far from a cluster of condo complexes.
"The new darling child of multifamily residential is rental," Franco said.
Saturday, May 10, 2008
City officials looking at tax hike, layoffs and raising water rates
Mayor Shirley Franklin justified the fears of City Council members – and many taxpayers – this past Thursday when she laid out a budget proposal that calls for the sacking of 440 city employees; cuts in municipal services; increases in various fees and fines; and, the most dreaded element, a $40 million property-tax increase.
Actually, Franklin didn't so much propose citywide layoffs as announce them, since by law the mayor's office can make near-unilateral decisions regarding staff reductions. By the time you read this, most of the pink slips likely will have been handed out.
Actually, Franklin didn't so much propose citywide layoffs as announce them, since by law the mayor's office can make near-unilateral decisions regarding staff reductions. By the time you read this, most of the pink slips likely will have been handed out.
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