$125 Million Trump Estate Tops List of Country's Most Expensive Homes for Sale

After this morning's post about the $30M+ unit in the St. Regis, I thought it would be nice to compare some other properties around the country. Most notable is Donald Trump's $125M listing in Palm Beach, Florida.

From RIS Media, "A Palm Beach, Florida home priced at $125 million and owned by Donald Trump tops the list of the 1,000 most expensive homes currently on the market in the U.S., according to the just-released Unique Homes magazine's special issue, Ultimate Homes, 2006."

"Trump purchased the waterfront estate, -- Maison de l'Amitie -- at auction and put Apprentice Kendra Todd to work redoing the home, which is listed for $55 million above the U.S. sale price record set in 2005 with the sale of Ron Perleman's home, also in Palm Beach. "

"New York leads the list with the most properties in the top 1000 -- 333. California follows with a total of 183 properties, and Florida is a close third with 174. Thirty eight states have properties that made the list. Arizona is represented with 47 homes. The Valley of the Sun saw a price increase of almost 55.2% from the periods of September 2004 to September 2005."

As of today, the San Francisco MLS shows 86 single family homes priced over $1M.

Greenspan tees up last rate rise

From the BBC, "Federal Reserve chairman Alan Greenspan will preside over his last rate meeting on Tuesday before retiring after almost 19 years at the central bank's helm."

"Analysts expect interest rates to rise by a quarter of a percentage point to 4.5%, the 14th increase in a row."

"Set for a quiet farewell, the former jazz musician is leaving behind an economy that has a number of shadows hanging over it, including a large US trade deficit and a government budget deficit that may hit $400bn (£227bn) this fiscal year."

"After leaving the Fed, Mr Greenspan, who likes to mull over problems in the bath, plans to open a consultancy and may write a book."

Work to begin on city's priciest penthouse

From the San Francisco Business Times, "Plans to build San Francisco's largest and priciest penthouse are under way."

"Victor MacFarlane, an urban developer with projects nationwide, has hired a team to combine the three penthouses he purchased last month at the new St. Regis condo/hotel tower for an estimated $30 million. The properties, now in shell condition, will be transformed into a single residence for his family measuring as large as 20,000 square feet. That could cost $20 million or more in additional construction, according to market estimates."

"[The construction firm in charge of the project] said construction is expected to begin within the next few months with the MacFarlane family moving in about a year from now. Although he declined to speculate what the project will cost -- he said drawings have not even been finalized -- initial market reports place it in the $1,000 per square foot, or in the $20 million range."

After 15 years, the game is over for driving range

From today's Chronicle, "The last ball will fly off the tee Tuesday at San Francisco's only lighted driving range. After that, the Mission Bay Golf Center will once again be what it was 15 years ago -- an empty lot awaiting development."

"The driving range opened in the early 1990s on six formerly junk-strewn acres next to Interstate 280. At the time, the neighborhood was nothing more than a collection of warehouses and railroad tracks. But then came the Giants ballpark and the Mission Bay development, and now the area is hot. So the driving range's landlord, Mission Bay developer ProLogis, has ordered the property cleared to make way for scores of new offices and condos."

"Over the years, some 3 million buckets of balls were chipped, swatted or pounded down the driving range, Scott says. Regulars included several newsies, including TV anchor Pete Wilson, who a few years back made a habit of showing up between his 6 p.m. and late-night broadcasts. [Operator Jack] Scott also ran a free junior golf program for kids in the Western Addition, and provided free sessions for San Francisco's high school golf teams. Nonetheless, everything must go -- from the double-deck tee structure to the poles, nets, pathways, irrigation system, grass and 800 truckloads of dirt."

"And while time is running out for the faithful golfers at Mission Bay, Scott is hoping to drive another long shot -- he's approached the San Francisco Port about moving his driving range to the southern waterfront."

If you own your home

From Sunday's Chronicle Real Estate section, "If you own your home, you are happier and more satisfied with your life, your children are better educated and less likely to get into trouble, your daughters are less likely to become pregnant as teenagers, you vote more often and are more active in your community, you are more likely to recycle and less likely to get mugged. -- From "The Social Consequences of Home Ownership," a 2003 study by Robert Dietz

"Even after controlling for such variables as level of income, education, race, etc., studies conclude that homeowners, as a group, are physically and mentally healthier."

"In the summary of his 2003 study, "The Social Consequences of Home Ownership," Robert Dietz, professor of economics at Ohio State University, concluded that there are four major areas of social benefits to homeowners with respect to their families and communities: education of children, political activity, personal happiness and enhanced property values."

"The Bay Area -- and San Francisco in particular -- is something of an anomaly," said Michael Pottepan, professor of economics at San Francisco State University. "Many people who are renters here have many of the same attributes as homeowners." That said, "It certainly strikes me as entirely plausible that if you can get people to become homeowners, you're gonna get better social outcomes," Pottepan said.

Feinstein's $16.5 million view in Pacific Heights

From today's Chronicle, "Sen. Dianne Feinstein and her mega-millionaire husband, Richard Blum, are pulling up stakes on their quiet Presidio Terrace home and moving uptown to a Pacific Heights mansion -- with views to die for. The $16.5 million mansion -- which sits at the foot of Vallejo Street, between the Presidio and some of the city's most hoity-toity addresses -- offers a sweeping view of the bay."

"So why the big move? "We've never had a view, and this was an opportunity to get one,'' Feinstein said Friday. "We also have an expanding family -- five grandchildren and soon to be a sixth -- and we needed some more space.'' Their new, 9,500-square-foot mansion -- once owned by the former wife of "Star Wars" creator George Lucas and featured as the 1995 San Francisco Decorator's Showcase -- offers much more than just picture-postcard vistas."

"One big curiosity is the garden just off the front entrance that is actually part of the Lyon Street steps, a favorite of joggers, walkers and camera clickers. At night, the 332 steps are also a popular hangout for teenagers to sneak a drink or two."

Senior Housing Conversion Begins on Haight Street

After years of preparation and negotiation, look for a groundbreaking ceremony in early-February at 1250 Haight Street (@ Central, across from Buena Vista Park) on 40 units of senior housing at the former Third Church of Christ Scientist.

From a December 18th article in the Examiner, "James Buckley, president of Citizens Housing Corp., which is building the project, said seniors will pay 30 percent of their incomes up to $40,000 a year. Jewish Family and Children Services will provide limited services."

The Haight Ashbury Neighborhood Council also has an article in their January newsletter with more details.

The building should be ready for occupancy in March 2007.

Up to 25,000 SF residents pay more than half of their income in rent

From today's Examiner, "Roughly 25,000 low-income households in San Francisco pay more than half of their income in rent, potentially putting them at risk of becoming homeless, a city official said Thursday."

"Matt Franklin of the Mayor’s Office of Housing gave a presentation to the Planning Commission on housing trends and affordable housing programs, which several commissioners had requested as they consider multiple pieces of proposed legislation that could have far-reaching implications for the housing market."

"Franklin said The City’s 24,000 affordable, or non-market-rate, housing units are mostly rental apartments targeted to the working poor, and half are for families. But despite progress, Franklin said, there’s much more to do."

"Franklin said his office’s priorities are housing for the homeless, rental apartments for the working poor and homeownership opportunities. A small percentage of affordable housing — only 7 percent — is for homeowners, though some has been created in Mission Bay and the Western Addition, he said."

"Several commissioners asked Franklin for guidance on upcoming issues. For example, the commission is grappling with proposed legislation that would require developers to include more affordable housing in their projects and make that housing available to residents with lower incomes."

"Franklin said after the meeting that an important component is zoning for higher densities where appropriate. He said density helps nonprofit and for-profit developers produce more units, which drives down price"

Historical home to be destroyed

After months of battling with neighbors, the owner of the house at 450 Frederick (between Stanyan and Shrader) has negotiated with neighbors to create a situation suitable to both parties.

From today's Chronicle, "Neighbors and preservationists hoped the owner would preserve the home at 450 Frederick St., and they fought his plans to demolish it and replace it with a three-unit building that they felt was architecturally incompatible with the historic homes surrounding it."

"The owner, Alexander Gutkin, agreed Thursday to reduce his project to two units and redesigned it to make it fit in with the block. “I was left with no choice,” Gutkin said."

"[A preservationist architect] said recently demolished historic homes, as well as this one, might have been saved if they were on a city survey, making them eligible for landmark status. The Landmarks Preservation Advisory Board and city staff are working on plans for surveys in various neighborhoods, some of which might be funded by a $2.5 million settlement from the developer building the San Francisco Westfield Centre at 5th and Market streets, which involved demolishing portions of the old Emporium building."

McGoldrick: Ban evictions during school year

From today's Examiner, "Evictions for families with children would be prohibited during the school year under a law currently being crafted by Supervisor Jake McGoldrick, an effort he says will make San Francisco more family-friendly."

"The law would not protect those families that stopped paying rent, according to McGoldrick, who is currently working with the City Attorney’s Office to draft legislation. Instead, the law would provide children and their families with “special protections” from eviction from landlords who want to exercise their owner move-in option or get out of the rental business through the state Ellis Act."

"Although San Francisco has suffered a 40-year decline in its percentage of children — from 24 percent in 1960 to less than 15 percent in 2000 — Mayor Gavin Newsom and other city leaders have spent this last year drawing attention to the problem and calling for solutions. McGoldrick said his legislation would address one of the core reasons why families are leaving San Francisco."

"San Francisco attorney Andrew Zacks, who handles Ellis Act evictions and other landlord-related cases, said if McGoldrick succeeded in getting the Board of Supervisors and Mayor Gavin Newsom to approve of his legislation that “likely me and clients of mine will have it taken to court and have it invalidated by a judge.”"

"Although McGoldrick’s law would delay evictions, not prevent them, Zacks said it would likely run afoul of state law if it attempted to alter the rights given to landlords under the Ellis Act. He suggested that City leaders should focus their effort on creating more family housing rather than creating “not legal” eviction controls."

To pay or not to pay off your mortgage

Despite the doom and gloom that many are spewing in San Francisco, there are still very many people out there who have the option and the financial wherewithall to pay off their mortgages. Is that a good idea?

From this weekend's USA Today, "If debt makes you anxious, you may be wondering: Should I try to pay off my mortgage — or not? Well, it depends — on your financial circumstances, your time to retirement and your emotions."

"If your mortgage rate is low, say 6% or less, you likely can earn more from other investments. If you could invest in a tax-deferred account such as an IRA or 401(k), the pretax rate of return would be equal to or greater than the post-tax cost of the mortgage"

"The younger you are, the more time you have to make money on other investments. There's no reason why people in their 20s or 30s or even 40s should pay off their mortgage if they're not planning to retire before 65. If you have more than 10 years before retirement, there's time to make money in other investments and build up your savings, says Phillip Cook, a financial planner at Cook and Associates in Torrance, Calif."

"That equation changes if you're close to paying off your loan. If you have less than 10 years left to pay on a 30-year mortgage, you're getting less and less of an income tax deduction. That's because you've paid most of the interest by now and are paying mostly principal. You don't get a deduction for principal payments. So the tax factor is worth weighing."

There are also four real-world scenarios with comparison calculations on whether it's worth paying the mortgage off or not.

Maxwell would expand inclusionary housing ordinance

From the San Francisco Sentinel, "San Francisco's inclusionary housing ordinance would be expanded under legislation introduced yesterday by Supervisor Sophie Maxwell."

"Number one, under current law there is no standard process by which developers market their affordable units. And there are questions as to whether or not everyone is getting a fair shot at these units."

"Currently developers who choose to meet their inclusionary housing obligations by building units off-site have the ability to place those units anywhere in the city. As a result we are seeing the economic segregation of our city with isolated market rate units in one neighborhood and isolated affordable units in another neighborhood. This ordinance would address that problem by requiring that all off-site units are located within one mile of the project."

"Number three, under current law developers may choose how to meet their inclusionary housing requirements including the units onsite, off-site or paying the fee as late as when they pull building permits. This creates uncertainty for the city and hinders our ability to plan for our affordable housing needs. This ordinance will address that issue by requiring that project sponsors disclose how they plan to meet their inclusionary housing obligations when they appear before the Planning Commission for project approval."

Now there's an idea... Organization without extortion... Daly could learn from Supervisor Maxwell.

Please, In Our Backyard

From the SF Weekly archives...

I will admit that I was AWOL at the beginning of January, so I missed Matt Smith's article on January 11th in the SF Weekly. This time he tackles the Potrero housing projects and raises a couple of interesting points and solutions.

"We learned from riotous France how ghettoization begets alienation, criminalization, and violence. We learned the same thing at home, as unsolved murders ballooned, with a high proportion of them in what is called public housing, but is really government-created ghettos. L'lle St-Denis near Paris, in other words, isn't fundamentally different than San Francisco's Potrero Terrace or Hunters View."

"Potrero Terrace and Potrero Annex are names given to public housing projects about a mile south of Mission Bay, in which 1940s and 1950s barracks-style concrete buildings are scattered on a dirt-and-grass-covered hillside. They serve a dual role as gang fortress and 635-unit public slum. According to Sangiacomo/Daly math, a new neighborhood made up of 2,000 apartments -- creating about half the population density that's now filling the more urbanized parts of Mission Bay -- would offer subsidized housing sufficient to provide homes for residents currently living at the Potrero projects."

"The Potrero slums happen to possess an amenity that would make this plan quite feasible -- a hillside with stunning bay views. If a builder were to redevelop that now-squalid place, and those views were sold as an amenity to condominium buyers, the resulting money would be sufficient to include in the development subsidized apartments for residents who already live there, albeit much nicer and safer apartments than their current homes."

Unfortunately, "here, NIMBY, anti-density, anti-gentrification battles can push back construction timelines by decades, add millions of dollars of financing costs to a project, and force developers to scale back plans into the deeply unprofitable zone. A molasses-slow bureaucracy stalls things further still, making San Francisco a place that all but the most tireless developers avoid."

"Not-in-my-backyard homeowners are bound to become even more nettlesome than the no-gentrification commission members. Mission Bay, a former rail yard and industrial wasteland where builders are now erecting 4,000 apartments, plus parks, stores, office buildings, and a university campus, had lain vacant for 18 years as landowners were forced to hold charettes with anti-development homeowners' associations such as the Potrero Boosters. This group's neighborhood is a mile to the south, bordering Potrero Terrace and Potrero Annex. Any new development, even a mile from their front door, the Boosters said, would create traffic, noise, and shadows, and block vistas."

"Changing this situation would require leadership. Housing Authority Executive Director Gregg Fortner has already shown some by shepherding the public housing revitalization plan as far as it's come. He needs our help."

Tenants Slam Newsom for Veto of Eviction Protection Legislation

Not that this comes as a surprise to anyone, but a group of tenant activists held a protest at City Hall following the Mayor's veto of one of the anti-eviction measures passed by the 'Supes.

From BeyondChron, "Responding to Mayor Gavin Newsom’s recent veto of a piece of legislation designed to slow evictions in San Francisco and his promise to veto another proposal aimed at achieving the same goal, over 50 tenants and housing activists gathered at City Hall yesterday to blast the Mayor’s decisions. A wide variety of tenants forced out of their homes by the Ellis Act spoke at the rally, providing human faces to the statistics that show the current wave of evictions sweeping across the city represents one of the worst in recent history."

"Tenant advocates also announced plans to push for a citywide moratorium on allowing buildings where evictions of seniors and disabled people occurred to be converted to condos. Should it fail to pass the Board of Supervisors, advocates announced their plans to take the moratorium to the ballot."

"Late last Friday, Newsom vetoed legislation passed by the Board of Supervisors requiring realtors to notify potential home buyers early on if any seniors or disabled tenants were evicted to empty the building for sale. Considered a common-sense measure by most, the veto represented more of a statement to landlords by Newsom that he remained on their side in the battle over evictions than a policy decision. Newsom also has promised to veto another measure recently passed by the Board forcing any attempted Ellis Act evictions to go before the Planning Commission for a hearing before gaining approval."

Hmmm... 'Considered a common-sense measure by most'? Most of whom? Most radical tenant activists? Given my obvious bias to the issue, it may not come as a surprise that I don't know anyone who considered it anything other than a waste of tax dollars, as it would only go to the courts and be ruled unconstitutional.

Remember, I don't take evictions lightly. I certainly don't condone them. But I will point out Matt Smith's brilliant article in last week's SF Weekly as the root cause here. I've been talking about this for years, but I'm glad that someone outside of the real estate industry can put it on paper for everyone to see.

Besides, nobody outside of Daly's camp really thought that Gavin wouldn't veto these two measures (especially given the number of Supervisors that voted against it initially). They are both pieces of bad legislation and they don't have enough support to withstand criticism.

Energy costs, interest rates hurt December home sales

The California Association of Realtors (whose 2006 president is Vince Malta from San Francisco) released a report today on December home sales.

“Sales fell last month compared with December 2004’s record-setting pace, prompted by consumers’ concerns about rising interest rates,” said C.A.R. President Vince Malta. “The last few months of 2005 marked the first time since mid-2004 that the fixed-rate mortgage was above 6 percent on a sustained basis and the adjustable-rate mortgage was above 5 percent for three months in a row."

The positive news was that the median price of an existing home in California in December still increased 15.6 percent over a year ago.

"C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in December 2005 was 3.6 months, compared with 2 months (revised) for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate."

“We are experiencing a return to a more balanced market, in line with our expectations, although unsold inventory is still near historical lows, with a 3.6 month supply of homes for sale,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “Time on the market also is nearly unchanged at 44 days in December compared with 40 days for the same period last year."

The San Francisco Business Times also has an article covering this report (Thanks, Brett!)

Note to doomsday prophets: No bitching until appreciation drops out of the double-digits. Your stock market still can't touch a 15% average return.

New fee duns residents for railings, greenery

Both the Examiner and the Chronicle have articles today discussing the new fees that the city is charging to residents who improve or repair their sidewalks.

From the Chron, "In late 2004, James and Mellie Malcolmson received city permission to install a safety railing along the sidewalk in front of their Filbert Street home on one of San Francisco's steepest hills. James Malcolmson, 87, had suffered a stroke, his wife was recovering from knee surgery, and they needed the railing to walk up or down their block. Then, earlier this month, the Malcolmsons received something else from the city they hadn't expected -- a bill from the San Francisco Department of Public Works demanding payment of a $1,200 yearly fee for encroaching on the sidewalk."

"Supervisor Michela Alioto-Pier, whose district includes the neighborhoods where the Popes and Malcolmsons live, is well aware of the complaints. On Tuesday, she introduced legislation that would temporarily suspend the encroachment fees while their impact is analyzed more fully."

""We don't want to tax people for things that add a public benefit,'' said Marshall Foster, the mayor's director of city greening, who said it only makes sense to remove roadblocks for landscaping projects."

And from the Examiner, "“It seems I should be assessing The City for putting in the railing, not the other way around,” said Malcolmsen, who got the proper city permits to install the railing."

“Charging for taking over part of the public sidewalk for commercial purposes is totally appropriate, but charging someone hundreds of dollars a year because they want to make the street more beautiful with a tree or a planter box, or repair the sidewalk, just doesn’t make sense,” Alioto-Pier said.

1 in 8 transactions carries price of $1 million or more

From today's Chronicle, "A whopping 1 in 8 homes sold in the Bay Area last year went for $1 million or more as robust appreciation helped push more properties into what was once considered a luxury price zone."

"In the nine-county region, 16,981 houses and condos -- or 13.5 percent of total sales -- went for at least $1 million, up from 11,399, or 8.5 percent, in 2004. Only 2.6 percent of homes fetched as much in 1999."

"Nowhere was the rise in high-end homes more pronounced than in Solano County, typically one of the least-expensive sections of the Bay Area. In that county, which includes Vacaville, Vallejo and Fairfield, million-dollar home sales soared 154 percent in 2005. By comparison, sales rose 43.3 percent in San Francisco."

"In the state, 48,666 homes sold for $1 million or more last year, up 47 percent from 33,107 in 2004."

Treasure Island aims to attract new families

From today's Examiner, "Treasure Island may become The City’s most family-friendly neighborhood if visions for the former Naval base come to fruition."

"The developers and Jack Sylvan, The City’s project manager, said Monday that projections show when up to 5,500 homes are built, nearly 30 percent of all households will have kids — compared to San Francisco’s current 17 percent."

"“We want the kind of community that’s integrated and active,” Bethany Fischer of Treasure Island Community Development told the board. Fischer said projections show a K-8 school could be supported by the population — about 2,300 kids under 18 — though the island’s current school was closed down in December due to low enrollment and safety issues."

"After years of planning, the development of Treasure Island seems to have momentum, with the publication of the transportation plan a few weeks ago and a revised housing plan late last year that aims to create an environmentally sustainable development."

Unintended Evictions - Matt Smith gets it right

From the January 18th issue of the SF Weekly, Matt Smith makes the logical argument that rent control and Chris Daly's eviction protection measures have done nothing but increase evictions and run up housing prices.

"The law of unintended consequences is more than a popular turn of phrase. It's a fundament of economics describing a situation in which government policies reverberate into unplanned, inadvertent mayhem."

"History may have never seen a greater thicket of problems begat by the consequences of official solutions, however, than in San Francisco. One of these brambles is a 1979 rent-control law passed to protect the poor."

"During the ensuing years, scholars wrote libraries of descriptions of ways rent-control laws, San Francisco's included, help push apartments out of the reach of people who need them most. Laws such as S.F.'s cause landlords to take units off the market. They encourage people to squat in cheap units far larger than they need. They motivate people to live decades in the same apartments, and thus never free up space for new tenants. And they have spawned a pied-à-terre culture, in which many S.F. residents retain their in-town rent-controlled apartments while buying country homes, thus keeping cheap apartments from people who truly need them."

"Chris Daly last week made headlines for winning preliminary Board of Supervisors approval for two pieces of legislation falsely touted as "tenant protection measures." Daly's legislation does nothing to stop this jetsam of S.F. humanity being thrown onto the street. To make matters worse, Daly's bills have the theoretical potential to actually increase evictions."

"By reducing the possibility that owners can convert their tenancy-in-common units to condominiums, Daly may actually increase demand for a type of pseudo-condominium loan that allows owners to live in a tenancy-in-common agreement without being tied to their partners financially"

"If the loans become hot, more banks will offer them, the interest rates will drop, and speculators will begin seeing profit in ever-larger buildings, evicting tenants as they go. For tenants, this is not an attractive prospect. Unintended consequences rarely are."

I've been talking about these loans since last summer, but I'm happy that someone from the press is finally pointing out the obvious. 'Unintended consequences' is just what Daly's legacy will be...

It's a good thing our Mayor sees the reality of Daly's silliness and is vetoing both of those misguided measures.

Supervisor Daly says Newsom's veto favors his backers in real estate business

uhhh.... yeah... OF COURSE IT DOES! It also favors reasonable people who know the law, who know what's fair, and who know what is reasonable. This is another one that likely wouldn't have stood up in court, anyhow.

From today's Chronicle, "Newsom's veto, the third in his career as mayor, came late Friday and was timed apparently to draw as little publicity as possible. In a letter sent to the Board of Supervisors, Newsom said he was vetoing the legislation sponsored by Supervisor Chris Daly because it is "overly vague and difficult to enforce.""

"I think some folks were hoping that the mayor would not just walk the ideological landlord-Realtor line," Daly said. On a Web log written by Daly, the supervisor accused Newsom of "doing all his dirty work on Friday afternoons."

""Our objection to the legislation dealt principally with the inability of a seller to identify who might be a prospective buyer," said Jim Fabris of the San Francisco Association of Realtors. Fabris noted that under standard disclosure laws, sellers already must answer truthfully any questions about the eviction history of their properties or face legal liabilities. "Realtors support disclosure on all relevant facts," Fabris said."

More importantly, however, "Newsom's late-Friday veto is likely to be followed by another. An accompanying piece of legislation also sponsored by Daly would require hearings by the Planning Commission on all conversions of tenancies-in-common to condominiums. Supervisors are scheduled to make their final vote on that measure today, but Matthew Franklin, head of the mayor's Office of Housing, already has said Newsom will veto it."

Planning meeting for the Lower Divisadero Street corridor

If you live on or near Lower Divisadero Street (between Haight and Eddy Streets), you might want to attend a planning meeting to determine the future of the corridor.

From the NOPNA blog (North of Panhandle Neighborhood Association), "We are pleased to announce the first of a series of Community Meetings to discuss the Future of the Lower Divisadero Commercial District (approximately between Haight and Eddy)."

6:30 PM on Wednesday, February 8th
CPMC Davies Hospital Auditorium,
45 Castro Street (enter at Duboce) North Tower, B Level near the Cafeteria

Issues to be addressed include:
* Physical appearance and streetscape
* Support, development, and promotion of local serving businesses
* Parking and traffic management
* Cleanliness and safety
* Other activities to help Divisadero better serve its merchants,
nearby residents, and property owners

Recent fads no longer please home buyers

From the San Jose Mercury News, "Mark Nash, a Coldwell Banker broker and real estate author, has compiled a list of what's ``in'' and ``out'' for housing this year. The list is a result of input from Realtors from around the country who, in turn, have solicited feedback from home buyers and sellers as they visit resale and new homes."

This is an interesting list, and things that I have always believed to be 'out', including:

- builder-grade (i.e. Home Depot) light fixtures, doors, windows, etc.
- single-rod closets (buyers like closet organizers)
- dark rooms, small windows
- fake hardwood floors (such as Pergo)

Two large residential projects slated for Showplace Square

From today's San Francisco Business Times, "The chairman of Bay West Group, Bill Poland, which owns the San Francisco Design Center, is selling a stake in the development to finance his dream to build 775 apartments and condos in the Showplace Square neighborhood."

"The first is a 72,000-square-foot site bounded by Rhode Island Street, Alameda Street, Division Street and Henry Adams Street. Poland intends to build 215 condos, showroom space and parking."

"The second development would replace the Concourse Exhibition Center on Brannan Street between Seventh and Eighth streets, now used as an exhibition hall. Plans call for tearing down the building and erecting 560 units in its place -- most likely a combination of apartments and condos. The five-acre development could also include an extended-stay hotel."

"The properties are zoned light-use industrial -- a designation Poland has been working to change for nearly seven years."

"The publication of the draft environmental impact report -- the first major milestone in attempting to get a property re-zoned -- is slated for early February."

Moving forward with new zoning controls

From today's Examiner, "The Planning Commission decided Thursday to introduce temporary zoning controls in the eastern neighborhoods sometime in February after at least one public hearing on Feb. 16."

"The rezoning is an effort to balance protection of industrial businesses and the need for more housing. The zoning proposal could be the basis for permanent rezoning to be adopted next year in the Mission, Showplace Square/Potrero Hill, Eastern SoMA and the Central Waterfront."

As always, if you want to have a say in how these neighborhoods are shaped in the future, now's the time to do it. Don't wait a year to complain about decisions that are being made now.

Schools are better than many think, parents are assured

From today's Chronicle, "The San Francisco public schools have a math problem: Students outperform those of all other large, urban districts in the state, but children are leaving -- in droves."

"To figure it all out, a group of middle-class parents in the city's Potrero Hill neighborhood last month asked about 140 families in an anonymous e-mail survey why they had moved away."

"In all, 70 percent of the respondents said housing prices caused them to leave the city. But more than half, 53 percent, blamed the schools."

"...[many parents] expressed frustration with San Francisco's school lottery system, which often bars children from attending their own neighborhood schools. School quality and the lottery system were two complaints that came up again and again in the parents' survey."

"As for school quality, the San Francisco Unified School District scored 745 on the last Academic Performance Index, with 800 considered excellent on the 200- to 1000-point scale. By contrast, Los Angeles scored 649, San Jose 737, and Berkeley -- where many families have fled to, according to the Potrero Hill survey -- 737."

"The message about San Francisco schools that a growing number of parents are trying to send is this: If you try them, you may like them."

Newsom vetoes condo conversion legislation

From today's Examiner, "Mayor Gavin Newsom weighed in on the simmering debate over condominium conversions in The City on Friday by vetoing a controversial piece of legislation that would have strengthened eviction-notification laws."

"The law, sponsored by Supervisor Chris Daly and intended as a check on the condo conversion boom, would require sellers to notify prospective buyers at real estate open houses whether someone had been evicted from the building and whether they were elderly, severely ill or handicapped."

"Newsom said he’s sensitive to the issue of tenant evictions but said Daly’s legislation was not a good solution. “I believe that disclosure should occur at an appropriate point in the sales process, when a buyer has demonstrated meaningful interest in the unit for sale, rather than as currently proposed, which I consider overly vague and difficult to enforce,” Newsom said."

"The legislation was originally passed with six votes — two short of the number needed for a veto override."

Now he just needs to veto that poor TIC legislation, and everything will be corrected...

Future of iconic building still uncertain

From today's Examiner, "The old Hugo Hotel on the corner of Sixth and Howard streets has sat vacant for more than 15 years, but has attracted plenty of attention. “Defenestration,” the installation art piece that features couches, beds and chairs hanging precipitously out of the windows of the building, has certainly turned heads."

"Olson Lee, a deputy director at the Redevelopment Agency, said the Board of Supervisors recently granted the agency the power of eminent domain in the area around Sixth Street between Market and Harrison streets. That means under certain circumstances the agency can condemn property and force its sale. Lee said this is always a last resort after extensive negotiations."

"Varsha Patel, whose family owns the building, said the Redevelopment Agency has never offered more than $2 million for the property, which she calls an “insulting offer.” Patel said she’s now negotiating with an interested buyer for more than $4 million."

She blamed The City for not “cleaning up Sixth Street.” “They can put the low-income people somewhere else … you can be homeless somewhere in Idaho.”

Hear that, Idaho?

Neighborhood pride gives Bernal Heights cachet in the real estate market

This week's Surreal Estate column has Carol Lloyd expounding the virtues of her neighborhood, Bernal Heights. "A few years ago when we bought our home in Bernal Heights, a hill of mostly little worker cottages, topped by an undeveloped park space with a giant radio antenna, I knew many things about the neighborhood. I knew I was within walking distance of two friends' houses, a cafe and a grocery store. That there was a library nearby and a lot of sleepy-eyed parents pushing strollers. I even knew that spring was marked by winds howling in from the Pacific. What I didn't know was that we'd joined a cult."

"Since the beginning of the boom starting in 1997, the average price per square foot of a two-bedroom family home in Bernal Heights has gone up far more -- from just over $200/sf to nearly $700/sf -- than similar houses in the nearby but swankier neighborhoods of Noe Valley and Potrero Hill."

"Once the price of homes here was slightly below the city average. Now they are above. So what changed? All of San Francisco -- like much of the globe -- has been visited by real estate mania, and Bernal is no different. Gentrification doesn't fully explain the phenomena here, because there are many other Bay Area neighborhoods that are similarly in transition. So why would Bernal -- which has virtually no new construction to pump up its numbers and lot sizes that typically prohibit any expansion -- exceed the average? I would wager it's that Bernal Heights cultivates something nearly as elusive and comforting as God's good graces: the promise of a "real community.""

"Indeed, Bernal Heights -- except for the limited public transit -- is something of an urban planner's dream. The relative walkability, high density and narrow streets and even the isolation from other neighborhoods force a sense of community in the middle of a metropolitan area. Even some people who don't live here identify as Bernal residents, suggesting that it's not just a place but a state of mind."

Lower Haight residents angered by rezoning plan

From today's Examiner, "A proposal to rezone a block in the Lower Haight that is home to a prominent medical marijuana club is prompting charges from some neighbors that Supervisor Ross Mirkarimi is attempting to skirt his own newly minted legislation, which bars pot dispensaries in residential areas."

"The proposal to rezone the 600 block of Haight Street between Steiner and Pierce streets from a mix of residential and commercial clusters to a more intensive commercial zoning would allow the Vapor Room medical marijuana dispensary to remain at its present location."

"Neighbors said rezoning would increase traffic, litter and noise. It would also allow for bars and other businesses to be open later."

"Not all neighbors, however, are upset about the rezoning. Jean Marx, who owns the flower shop Zuzu’s Petals on the block, said it could be a boon to her business, which has been slow. “For me, it’s a good idea. More businesses on the block would mean more business for me,” Marx said. “It seems like newbie homeowners on the street want to push everyone around.”

If you're a 'newbie' or longtime homeowner and you care about the outcome of this (one way or another), best to make your voice heard now.

Developers protest limits on parking

From today's Chronicle, "Developers lined up at a City Hall hearing Thursday to protest a proposal by Supervisor Chris Daly that would limit parking spaces for any new residential buildings in downtown San Francisco."

"Real estate developers say Daly's measure would make Downtown residents compete for parking typically provided for workers who drive into the city. The proposed ordinance, critics say, also could reduce the value of residential development built without a high number of parking spaces or discourage investors from funding future projects in San Francisco."

"This month, Mayor Gavin Newsom said he opposes Daly's legislation because it threatens economic growth in San Francisco. The Board of Supervisors' Land Use Committee delayed a vote Thursday on whether to approve the parking measure to Feb. 1."

Three straight days of sensational journalism from Kelly Zito

She's at it again. Doom and gloom EVERYWHERE! Today's article focuses on the latest numbers from Dataquick, a real estate research firm. From today's Chron, "The Bay Area real estate market ended 2005 on a wobbly note, with the number of sales in December tumbling by the biggest margin in four years and home prices falling below November peaks."

Then she goes on to pick out everything negative she can find, and once again buries the reality of the market deep in the article.

Problem is, there's a nice big graphic with the article that shows a similar trend EVERY SINGLE YEAR in the fall. This is not the end of the world as we know it, this is normal. Hear that, Kelly? This is NORMAL!

Yes, the numbers have changed a bit here and a bit there, but prices are STILL RISING. For everyone's sake, it's a good thing that we have a little bit more inventory. That's the healthiest thing that could happen in San Francisco. But it doesn't mean 'bubble', and it doesn't even mean 'cooling'.

Now let's look at the POSITIVE items that she failed to highlight:

"This week, mortgage giant Freddie Mac reported the 30-year fixed rate dipped to 6.1 percent -- the sixth consecutive decline." Yes, that's right. Declining mortgage rates.

And the only person on the street in San Francisco that she interviewed had this to say, "Last week, Cheryl Lazar listed a three-bedroom condo in San Francisco's Cole Valley for $835,000. As of Thursday, she had shown the property to more than a dozen buyers and had two offers in hand for "significantly" above the asking price.:

Hmmm... End of the world? I don't think so...

Rental doors slowly closing on apartment hunters in Bay Area

Kelly Zito won't acknowledge how bad yesterday's article was, but still goes on to write in today's Chron about how apartment rentals are becoming more scarce and prices are rising.

How can you continue to preach doom and gloom, Kelly? The economy is humming along nicely, and now the rental market is turning back in landlord's favor... Please explain to me how (other than wanting to sell papers) that you can avoid acknowledging this?

"Amid a firming economy and brightening job picture, the average monthly asking rent for a one-bedroom apartment in the nine-county region was $1,169 in the fourth quarter of last year, up $14 from the previous quarter and up 3.2 percent over the same period last year, according to Novato's RealFacts, a rental research company."

"RealFacts' quarterly reports, which cover more than 1,200 buildings and 215,300 units in the nine-county region, are based on surveys of properties of 50 or more units. In San Francisco, much of the rental stock consists of smaller buildings of four or six units."

"Research by MetroRent, an online rental service that tracks smaller buildings San Francisco, showed a larger gain of 6 percent in rents for all types of apartments in the city between the fourth quarter of 2004 and 2005."

I'm not claiming that the home sales market in San Francisco is going to continue with 20%+ gains this year, but if you look at reality, 15% is still a pretty damn good bit of appreciation in what everyone is considering a 'down' market.

My point: quit reading bad media. Facts are facts, but don't ignore the common sense of the San Francisco market. Both buyers and sellers should do just fine in 2006.

More wishful doom 'n gloom from Kelly Zito

I really can't get over how perpetually negative Kelly Zito's articles in the Chron have been for the past few months. Today's article is another 'sky is going to fall... someday' rant.

"The three major cities in the Bay Area, as well as eight other of the nation's largest real estate markets, face a 50 percent or greater chance of home price declines in the next two years, according to a study by a mortgage insurer."

"The study, which relies on last year's third-quarter federal data on household incomes, home-price growth and employment conditions, did not predict the magnitude of any declines."

That's right, Kelly, bury the reality deep in the column. A DECLINE could include something like what you refer to in a later paragraph, "Some markets already have shown a substantial downshift. Las Vegas' average appreciation dropped from 36 percent in late 2004 to 13 percent in late 2005. During the same period, San Diego's appreciation slumped from 27 percent to 11 percent."

That's right everyone, RUN FOR THE HILLS!, that low-double-digit appreciation is enough to send folks jumping off the Golden Gate Bridge!

C'mon, Kelly. How about a little acknowledgement of reality. How long have you been preaching the apocolypse? How many times have you been wrong? Have you ever been right?

It's getting really old, and it's not fooling anyone anymore. Double-digit price appreciation is still appreciation. It's not the end of the world as you know it.

A New BART Station at Mission & 30th Street?

From San Francisco CITYSCAPE, "We are, of course, referring to the proposed BART station at 30th and Mission streets in the city, an idea that to our great surprise is still alive, if not quite well. We say "not well" because it's not in the official local or regional plans, so it would have to be funded largely by the feds..."

"...it's alive because the neighborhood wants it, and BART Director Tom Radulovich stands ready, still, to champion it. Neighbors apparently are willing to accept redevelopment around the station..."

San Francisco’s economic picture looking brighter

From today's Examiner, "After the long hangover of the dot-com bust, San Francisco’s economy is once again picking up momentum and should continue to grow through 2006."

"Propelled by a revitalized tech sector led by companies such as Google and growing markets in India and China, forecasts of the local economy based on reports by Newsom, Oakland Mayor Jerry Brown and economists were cautiously optimistic at the annual Mayors’ Economic Forecast held Friday."

"Newsom said since he took office two years ago the unemployment rate had declined from 7.1 percent to 4.8 percent, 37 companies had relocated to The City and hotel occupancy has climbed 14 percent."

"...the panic about a housing bubble is unwarranted, even though home sales dropped 14 percent in November. [An economist] believes there will be a soft landing in the housing market."

How to get rid of private mortgage insurance

From CBS Marketwatch today comes an article on how to get rid of private mortgage insurance. PMI is an antiquated way for people to purchase a home with a less than 20% downpayment. Now lenders do two mortgages to avoid this insurance, which is not tax-deductible.

"Q. There are a few things I do not understand about private mortgage insurance. The most important is, can the borrower initiate the elimination of PMI?"

"Answer: Yes, you have to initiate the process (at least until the loan's balance is paid down to 78% of the home's value at the time it was purchased). And yes, the lender has to approve, but only until an 80% loan-to-value ratio is reached. Then, the Homeowners Protection Act of 1998 kicks in, requiring lenders to automatically cancel coverage if you ask for it."

In the recent home market, if you purchased your home more than a year ago in San Francisco (and actually got stuck with PMI), then there's really no reason you should still be paying it. Call your bank/lender immediately and demand that they drop it.

"Under the law, the lender must cancel coverage at the borrower's request when the loan is paid down to 80% of the property's original value. But if you forget to ask, policies must be terminated automatically when the loan balance reaches 78% of the home's value at the time it was purchased."

What this doesn't account for is property appreciation. You may need to get a new appraisal to prove to the bank that your house has increased in value, thereby making your equity greater than 20% of the home's value.

Never hurts to look into it, right?

Fighting Premature Evictulation

SFist today covers the 'Supes passage of two pieces of legislation aimed at reducing evictions. The mayor, however, still has veto power...

"Yesterday, the Board of Supervisors passed two measures proposed by Chris Daly to fight the current wave of condo conversion evictions currently sweeping the city. Well, not all evictions, mainly "bad evictions," something we didn't realize existed in that we never really thought there was such thing as a "good eviction." Or at least to the person being evicted. Anyways, a "bad eviction" is classified as an eviction involving someone either disabled or elderly. As for anyone not disabled or old, screw 'em."

"The other measure called for a change in rules concerning public hearings for condo conversions. Currently the law stipulates that if the building in question has more than five apartments involved, a public hearing must be called. The new measure would call for the law to be changed to two. Opponents said the measure would make it more difficult and time consuming to covert a condo and have you been to one of those public hearings? It's a madhouse. Supporters said the measure would make it more difficult and time consuming to covert a condo and have you been to one of those public hearings? It's a madhouse."

The thing that the 'Supes tend to forget is that nothing proposed by Daly with regards to housing has ever survived the courts. Hopefully the Mayor will see clear to veto this silliness before he costs the taxpayers a ton of money while they have to defend bad legislation...

Few hurdles remain for permit to build Rincon Hill condos

The Chron today is reporting that the two Rincon Hill towers that were delayed in the permit process are ready to be approved and will likely go ahead as planned.

"San Francisco is on the verge of giving final permission for two high-rise apartment towers on Rincon Hill after construction permits had been held up as building inspectors sought assurances about how well the development would ride out a major earthquake..."

"...on Dec. 19, after seeking additional assurances from the engineering firm Kriozere hired for the One Rincon Hill project, [the chief building department engineer] advised a representative for the developer by e-mail that the final construction site permit would be issued once some final nonseismic related questions raised by the fire and planning departments were resolved."

"Julie Chase, a spokeswoman for the developer, said news stories about building inspector inquiries were unfairly creating an incorrect impression that the engineering behind One Rincon Hill -- which has been used elsewhere in the country and will be used by other developers in the city -- might not be suited to earthquake-prone San Francisco."

"Pioneers get the arrows," Chase said.

Remodel hell wreaking havoc on your marriage?

This week's Surreal Estate column in the Chron introduces us to a therapist that specializes in home remodeling mayhem. "...Rachel Cox, a marriage-and-family therapist based in Palo Alto, takes the potentially destructive power of home construction quite seriously. For the past two years, she has expanded her general practice to include a specialty in dealing with the strife that often erupts from remodeling. That's right: a shrink treating the sufferers of home expansion."

"Typically, Cox works with couples (and occasionally business partners) whose orderly worlds have been shattered not only by the wrecking ball