Four wheels good, two legs bad?

Arrol Gellner writes today on Inman News about America's fascination with their cars and the lack of city planning that could do something about it...

We Americans are a puzzling bunch. We travel to Italy, France or Spain and come back smitten with the charmingly walk-able streets, close-knit houses, and humanly scaled public spaces we find there. Yet we seldom stop to wonder why our own built environment is so utterly lacking in those traits.

It's no mystery: In spite of rising population and dwindling resources, America remains saddled with long outdated planning ideals that are the furthest thing from the European examples we admire so much.

America is a vast nation, and perhaps in consequence, our planners and engineers have historically been trained to think big. This tendency has produced some magnificent civil engineering projects such as railways, dams and bridges. Yet it hasn't been nearly so successful at the scale of human habitation.

Thanks to the megalomania of our traffic engineers, for example, American cities are among the least pedestrian-friendly in the world. Each year, larger and larger swaths of urban and suburban land are paved over with ubiquitous six-lane thoroughfares bristling with redundant arrays of traffic signals. Aside from creating barren, monotonous and alienating cityscapes, such roads are also daunting barriers to people on foot, no matter how many kinds of whiz-bang pedestrian signals we install. Rather than drawing our cities together, our roads tear them apart, providing one more incentive for Americans to drive instead of walk.

I guess we have some semblance of 'planning' in San Francisco... The planning department waits for the Supervisors to come up with something, then they all fight over it with the mayor for a while, and it appears now that eventually there will be nowhere to park your car... So dammit, get out and walk!

Mayor vetoes C-3 parking legislation, but offers amendment [SFHomeBlog]

Don't Mess with Potrero Hill

File this one under "what not to do when advertising real estate", I guess...

The Potrero Hill blog takes a local real estate company to task for some misrepresentations of the neighborhood in a recent mailer,

I appreciate Hill & Co. promoting the hood, but c’mon guys let’s get some facts straight. The Neighborhood House and Community Garden aren’t exactly businesses, and the locals call the Potrero Hill Neighborhood House ‘the NABE’.

I’m wondering if the residents of Bernal Heights got a similar mailer, as the original Four Star Video store is located there (and no, I don’t refer to it as Dr. Video).

Word of advice to Hill & Co: If you’re going to try to pretend you know Potrero Hill, at least do some fact checking with the locals.

Potrerowhere? [Curbed SF]

Don't Mess With Bernal... [SFHomeBlog]

Glen Park's Overdue Library (updated)

From CurbedSF,

And even though we probably will never go there, we got all steamed and also wanted to know "what the hell is going on with the library-turned-condos-turned-supermarket that they’ve been building at the corner of Diamond and Bosworth for, like, the last six years (since the last one burned down)? The structure is complete, and it looks like they are doing finishing work on it now, but so far all we see is a sign to support the local library. WTF?"

We know you really want a supermarket (you guys should talk to Noe Valley), but that's the site of the new Glen Park branch library. It's supposed to be finished and open at the end of 2006, and get ready for some cool public art because that's all been comissioned.

3/31 Update from Curbed:

Construction's supposed to be completed April 1. Since that's tomorrow, that completion date appears unlikely but based on the project's history, our hats are totally off to the developers who managed to get it this far.

Some debate about the location of the market in the complex- Canyon Market rather than Bi-Rite, since Bi-Rite pulled out of the deal when the developer changed in 2003. We think it will occupy the big ground floor with the library upstairs. Then again maybe not. One tipster said the market's requirement for a full-scale kitchen and ventilation slowed the project down, but considering that the original grocery burned down in 1998, that seems to be an exaggeration. Canyon Market is the project of Jane and Richard Tarlov, formerly of Oakville Grocery, and they're scheduled to open August 1.

Glen Park Community Plan [SF Planning Dept.]

New Construction - Glen Park Branch [SF Public Library]

SFHomeBlog featured on Realtyblogging.com

Realtyblogging.com featured this very site today...

Matt's blog is a great example of how you really don't need a bunch of fancy graphics and web knowledge to have a great blog. SFHomeblog uses a stock, free template from blogger.com. Matt took the extra step of FTP to his personal website, and has added a few key links, but that's it. SFHomeblog's popularity is due only to Matt's great writing, a goal every blogger should aspire to.

Thanks guys!

And someday I may even spend the time to bring in some bells and whistles, but for now, you see it for what I had hoped it would be... Good info, no fluff...

Bad to worse: Teachers vote to strike

From SFGate today,

San Francisco public school teachers overwhelmingly approved a walkout Wednesday night in the first strike vote taken by the group in 27 years.

The United Educators of San Francisco -- which represents 6,000 teachers and aides working in the San Francisco Unified School District -- voted 2,203 to 317 to strike.

The union has been working without a contract since July 2004. The teachers and aides last had a pay raise in the 2002-03 academic year.

Interim Superintendent Gwen Chan said she was surprised the strike vote passed by such a large margin.

"I'm disappointed that the vote indicates that the teachers are prepared to strike," she said. "We have really looked at our books and tried to come up with more, but it's very challenging. We'll have to make big sacrifices if the board decides to offer more."

The union is asking for a 10 percent raise, much of it in retroactive pay, plus a onetime, 1 percent bonus for every member. The district is offering a 7.5 percent raise, with almost half of it not coming until June 2007.

Myong Leigh, the district's chief of policy and planning, said the money differential between the two proposals is $27 million over the life of the new contract, which would expire June 30, 2007. Kelly said Wednesday he didn't agree with that number but couldn't provide the union's calculation.

The union also is fighting for several new health and safety provisions, including rodent extermination, a first aid kit in every classroom, and a working phone line in every classroom.

SF Teachers Vote To Authorize Strike [NBC11.com]

San Francisco Strike? [Intercepts]

SF Teachers and Paraprofessionals Strike Vote set for March 29 [UESF]

The rent was $2 a month, gave quake refugees a roof

The Chronicle today has an article about a new centennial earthquake display on Market Street, featuring a restored Earthquake Shack...

The newest building on Market Street may also be the most humble.

Its walls are 1-inch-thick redwood boards. Those walls enclose 140 square feet of space -- less than one-third the size of a premier room at the sleek Four Seasons Hotel next door. The steeply pitched shingle roof is held aloft by a thin skeleton of rafters.

The shack arrived Sunday after a journey that began in 1906, when it was among the 5,610 constructed for earthquake refugees. Now, tucked inside a big white tent, the small shack has hit the big time -- but only for a month.

The tiny green structure will be open to the public during April as part of a larger earthquake display organized by the city's Department of Building Inspection. It sits on Yerba Buena Lane between two infinitely larger structures, the Four Seasons and Marriott hotels, having arrived at dawn Sunday on a flatbed truck after spending the last year behind the San Francisco Zoo's African Savannah.

The charge was $2 per month per shack; for $12 to $25 the shack could be moved to private property as families resettled their land. By the summer of 1908, the refugee camps were history and shacks were scattered across the landscape.

Shack facts

The 5,610 shacks built in San Francisco the year after the 1906 earthquake came in four models ranging from 140 square feet to 375 square feet.

The average construction cost was $135 - that's $2,770.68 in 2006 dollars.

They had no toilets, kitchens or insulation, although stoves could be installed at the refugee camp.

After the city closed refugee camps late in 1907, most shacks began a second life as starter homes or building blocks. For instance, three shacks were combined at 1227 24th Ave. in the Sunset District to form a small home that is now a city landmark. An additional shack sits at the rear of the lot.

One newly restored shack can be visited by the public between 10 a.m. and 6 p.m. from Monday to April 29 at Yerba Buena Lane, on the 700 block of Market Street. It is the centerpiece of an exhibit on earthquake-savvy construction methods organized by the San Francisco Department of Building Inspection.

San Francisco Rising: 1906 Earthquake and Fire Commemoration [SFGov]

Zillow starts email update service

From Zillow's blog,

According to the U.S. Census, three-quarters of Americans own real estate, compared to only one-quarter who own stocks. It’s so simple to track changes to a stock’s value, but it’s been nearly impossible to easily figure out the changing value of your largest asset – your home.

Starting today, Zillow is making this easier via monthly e-mail updates which allow you to track Zestimates and recent comparable sales for up to 25 different homes at a time. Home owners can track their largest investment, sellers can be made aware of changes that could affect the selling price, and buyers can keep tabs on their favorite homes.

The Zillow Home Report email, delivered every 30 days, includes the following:

Current Zestimate on any home

30-day Zestimate change – by dollar and percentage

Updated comparable home sales

Ability to track up to 25 individual homes in one email

Guess they must have heard about Real Estate ABC's beta launch and decided to post some news of their own...

Competition for Zillow? [SFHomeBlog]
New Home Valuation Site Launches [SFHomeBlog]

Social services available on new 211 hot line

From today's Chronicle,

Odds are you've already called 411, 511 or 911.

Now a new three-digit phone number is coming to San Francisco: 211.

Starting today, callers in the city who dial 211 will automatically be routed to a social service hot line, offering assistance finding everything from drug treatment to job training.

In the Bay Area, the 211 service won't initially work with cell phones and some company switchboards, which need to be reprogrammed to recognize the new three-digit number.

3-digit numbers

Here's a look at how three-digit codes (also known as N11 numbers) are generally used around the country. Not all of them are used in every city.

211: Community social services

311: Nonemergency police call and city services

411: Directory assistance

511: Traffic and transit information

611: Repair service

711: Telecom relay services (hearing/speech impaired)

811: Phone company customer service

911: Emergencies

Competition for Zillow?

Thanks to TechCrunch for this one...

By now, everyone who cares about real estate has seen Zillow. There's a new service starting soon that aims to challenge their new-found dominance in the online home values market, called Real Estate ABC.

Three month old Zillow, which gives people an indication of home values in specific locations based on publicly available comparables, will be having some competiton in the near future.

The new site is called Real Estate ABC (which is owned Internet Brands).

The Zillow competitor is in beta on a hidden URL: www1.realestateabc.com/home-values/. I have no idea if they’ll leave it up, but as of right now it’s live.

The name isn’t as cool and the design isn’t a fluid as Zillow, but it may be better in some ways. For instance, Real Estate ABC allows users to adjust property values for a particular property with an Ajax slider. Adjustable property factors include Interior, Exterior, Lot Size, View, Privacy/Noise and Local Market Conditions.

Users can also refine property values by adding or removing comparables directly on the results page. In fact, Real Estate ABC gives significant detail on comparables, including distance from a specific address. Real Estate ABC also provides a mashup with Google maps, although they do not use satellite images like Zillow.

Zillow is perhaps one of the most popular recent mashup to launch. If anything, Real Estate ABC shows that if a mashup site is going to try to make a go at creating a real business, they need to build in proprietary features that are not easily duplicated before the competition arrives.

I ran my house through this service, which unlike Zillow actually runs on Apple's Safari browser (Zillow only runs on IE or Firefox), and it came up with the same initial starting number. Then I clicked on the 'Adjust Value' tab and positioned sliders that change the value of the home (by comparing it to the other houses in the neighborhood). In the end, it came up a bit lower than Zillow, but IHMO it came up with a more real-world price.

New Home Valuation Site Launches [SFHomeBlog]

Fed Boosts Key Interest Rate (updated with analysis)

From SFGate,

The Federal Reserve on Tuesday boosted a key interest rate to the highest level in five years as new Chairman Ben Bernanke followed the Alan Greenspan inflation-fighting formula.

The action, the 15th consecutive quarter-point move, left the federal funds rate at 4.75 percent, its highest level since April 2001.

Fed officials, who were holding their first interest rate meeting under Bernanke, left the door open for further rate increases although private economists believe only one or two more rate hikes are likely.

But more important than the expected rate hike were Bernanke's comments...

In its statement, the Fed sounded at an upbeat note about the current business climate, saying "economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more sustainable pace."

The statement retained language used last time that "some further policy firming may be needed." That language is seen by financial markets as signal that further rate hikes could occur.

UPDATE: Monica DiPerna from Guarantee Mortgage sums up today's Fed meeting and the associated rate changes...

We have had re-pricing all day long...the lenders really were affected by Bernanke basically not discussing any chance of ending rate hikes...so today the 30 year fixed ended at 6.625-6.75% for most lenders. A 5 year fixed is now approximately 6.00-6.25%.

The increase sent stocks, which were trading modestly higher before the announcement, into the red. Bond prices tumbled, pushing the yield on the 10-year Treasury up to 4.78 percent. Bond prices and yields move in the opposite direction.The Fed also said that inflation expectations remain contained but added that recent increases in the price of oil and other commodities "have the potential to add to inflation pressures.

Bernanke really showed his true colors today...he appeared more hawkish than during his hearings...very interesting..it could be that the last couple of months there has been more inflationary news out...

But we should always remember, that the best product when the 30 year fixed was at 8.5% over 5 years ago was the Adjustable Rate Mortgages...these products will become more popular if the 30 year fixed hits 7.75%...Right now though, many people are calling to lock their loans in on a 30 year interest only or extend their adjustable for 5-10 years...The people with adjustables should really consider locking their loans in before the fixed period of their loan turns adjustable...

Specifics for a $600,000 mortgage (this week vs. last week):

30 year fixed at 6.625 payment $3,820 v.s. 6.5 with a payment of $3,771 last week

5 Year fixed at 6.125 payment $3,627 vs. 5.875% with a payment of $3,531 last week

The Federal Reserve... Not just for adults anymore! [SFHomeBlog]

Further steps to charge toll for driving in core of downtown area

From today's Chronicle,

Congestion charging -- imposing a toll on drivers in a city's downtown core -- is about take on a bureaucratic life of its own in San Francisco.

In a sign that the musing of one Board of Supervisors member is on course to become reality for Bay Area motorists, the San Francisco County Transportation Authority soon will receive $1.04 million from the Federal Highway Administration -- and add $260,000 in local funding -- to study how to implement a program similar to London's 3-year-old system of charging a flat fee to drive downtown during business hours.

That's $1.3 million to figure out how to collect millions from drivers willing to pay the freight to give a financial boost to public transit systems and perhaps curb traffic congestion.

And that's how, not if.

London operates its congestion charge from 7 a.m. to 6:30 p.m. Monday through Friday. Traffic signs alert drivers when they are about to enter a zone, where a system of 203 cameras tracks vehicles. Motorists must pay the $14 congestion charge before or on the day of travel and can pay by telephone, on the Web, at designated stores, by mail and even by text message.

The London program has generated more than half the San Francisco Municipal Transportation Agency's proposed 2006-2007 budget in its first three years of operation, O'Hara said. But it was also expensive to implement, using about £200 million in government funding.

A system in San Francisco could use a camera network like London's or a tag-and-beacon system, much like FasTrak, that would automatically pay the charge...

Charge to drive in downtown S.F. seems more viable [SFHomeBlog]

The N-Judah Chronicles

After a soft-roll-out, the N-Judah Chronicles officially launched today... Thanks to Craig for the tip...

So what will you find here at the N-Judah Chronicles? Everything that makes living in San Francisco at once wonderful, and a pain in the ass, all at the same time.

Among the subjects you'll find: the Great SF Tradition of trading stories about the Muni's Follies, and the occasional chatter about Muni Policy (but not too much - we try to keep the mood light).

There are also articles discussing local history and reports from the shenanigans of our fellow citizens on Muni. And what blog is complete without snarky comments on the decline and fall of Western Civilization?

Later this month you'll start to see postings giving you a guide to nightlife along the N-Judah line and suggested places to go out on the weekend that are fun, affordable, and accessible by mass transit. It's not so much that I hate cars - I just hate having one in the city.

the N-Judah Chronicles [craigblog]

Wealthy Developer Tries to Stop Rebuilding of Trinity Plaza

From today's BeyondChron,

There is nothing unusual in San Francisco about neighbors protesting a proposed development project. But when the neighbor is a wealthy condo developer, whose company is building a controversial 24 story condo tower with five floors of parking, one would think they would think twice before trying to stop an adjacent project with 34% affordable units that is almost universally seen as a boon to the Mid-Market neighborhood.

But Alexis Wong and her AGI Capital Group, who have an approved project at 1160 Mission, clearly have a different vision for the Mid-Market area than do the backers of the rental housing project slated for the adjacent Trinity Plaza. It’s a choice between a neighborhood dominated by upscale condos and parking garages or one centered by 1900 new rental units and pedestrian-friendly retail spaces---and the Planning Commission will soon decide.

The AGI Capital Group has filed five pages of challenges to the draft Environmental Impact Report (“EIR”) prepared by the City for the 1900 unit rebuild of the Trinity Plaza Apartments. The primary goal of the challenges is to create a smaller project, one that would necessarily have far fewer affordable housing units than currently projected for the site.

Huh? Why would anyone who is building housing in that neighborhood NOT want there to be more new development?

On March 21, land use attorney G. Scott Emblidge wrote a letter to the Planning Department on AGI’s behalf raising a host of concerns about the Trinity Project.

AGI’s chief concerns are the EIR’s alleged failure to analyze a smaller project, its lack of analysis of a possible mixed-used project, and its alleged failure to recognize that the Trinity rebuild would “adversely impact” the neighborhood’s character.

Uhhh... Yeah... That's the WHOLE POINT! It's the non-housing character of the neighborhood that BOTH parties are trying to change. And I won't call that adverse...

Does anyone else out there have a problem with the Trinity Plaza development? Is anyone else crazy enough to piss-off Angelo Sangiacomo?

Ritz-Carlton Lite [Curbed SF]

San Bruno Avenue Profile

Many San Francisco residents probably couldn't point out San Bruno Avenue on a map... But Francisco Da Costa has a great article on his site about the great locally-owned businesses that still thrive in the Portola District.

Businesses on San Bruno Avenue have always played an important role in the history of San Francisco. When the 1906 earthquake struck San Francisco nothing much happened on San Bruno Avenue. Large areas down town and in the Mission District were devastated by the earthquake and more by the ensuing fire.

Businesses on San Bruno Avenue took upon themselves to help the folks all over the City - especially when it came to supplies of food stuff. San Bruno and the surrounding area called Portola at that time produced a lot of healthy greens and there were cow pastures, goats, and lot of chicken farms. Simple folks but with a big heart.

I have had the pleasure over the years to sit and talk with the old timers many of them have since passed away but they told their stories and explained a lot of stuff that have not been recorded in history books.

Read the full article with photos here...

The Federal Reserve... Not just for adults anymore!

SFGate has a piece today on a new Federal Reserve web site geared towards the younger generation,

The Federal Reserve on Monday launched a Web page geared just for youngsters from 11 years of age to 14.

A cartoon of a smart-looking eagle — with really big talons — is tour guide of sorts for the site, , which offers a dose of Fed history. And since school kids are accustomed to tests, there's even a 10-question quiz:

When was the Federal Reserve Board created and by whom? What is a primary responsibility of the Federal Open Market Committee? Where is the Fed's Board of Governors located?

The kid's page is part of the Fed's effort to bolster financial literacy among young people.

SFGate wrote this as if all adults actually understand what the Fed does...

Nothing like simplistic descriptions to help enlighten us all!

And this comes JUST IN TIME for Bernanke's speech tomorrow...

There's even a QUIZ for those who really miss being in school, too.

Federal Reserve Kid's Page

Federal Reserve Bank of San Francisco

Residential sale: Stonestown and the Villas Parkmerced

Another from today's SF Business Times,

San Francisco's blistering residential real estate market led to two immense transactions in 2005, including one of the largest apartment deals ever on the West Coast.

The Villas Parkmerced sale, at around $700 million, is a San Francisco record for an apartment complex. The other important deal was the sale of Stonestown Apartments. While considerably smaller, at around $156 million, it is significant because it could lead to a major expansion of San Francisco State University.

The Business Times Real Estate Deal of the Year contest judges voted for the two neighboring projects to share the top award.

At 3,221 units on 115 acres near Lake Merced, The Villas Parkmerced has been a residential landmark in San Francisco for more than a half century, built in the years after World War II for returning veterans.

It sold for $324 million in 1999 when Leona Helmsley unloaded it to Carmel Properties. Carmel invested considerably to upgrade the property and at the height of the market found investors willing to pay a premium. Over a dozen bidders, some from overseas, took a run at it, but a partnership of New York's Stellar Management and Rockpoint Group was victorious. Stellar is a major holder of New York apartment buildings and is making its first foray into California. The project is subject to the city's rent-control program and can't be converted to condominiums.

The Stonestown deal was driven by SFSU's need for more on-campus housing and significantly grows its campus to 134 acres from 106, a coup for the smallest campus in the state's 23-university system.

Chicago firm nabs pair of S.F. sites for 40-story tower

From today's SF Business Times,

Chicago-based Fifield Cos. has snapped up two key parcels on the top of Rincon Hill and has hired international celebrity architect Richard Keating to design a 40-story luxury condo tower there.

Fifield finalized the land acquisition earlier this month from Theodore Brown and the Archdiocese of San Francisco, which had entitlements to build a 25-story building at 375 Fremont St. and a 28-story tower at 385-399 Fremont St., according to Tim O'Brien, the company's senior vice president.

The new 435-unit project, the application for which was filed March 20, represents a validation of sorts for San Francisco's Rincon Hill plan, which calls for tall svelte buildings pointing skyward. It's also a victory for San Francisco Planning Director Dean Macris, who had criticized the Theodore Brown and Archdiocese designs as excessively dense and light-blotting and had unsuccessfully lobbied for a single, slender tower.

"They were too close together and too clunky," said Macris. "The Fifield design is a wonderful response to the site, it's a beautiful proposal."

The best quote in the article, however, is the response to comments that there are already too many projects in the pipeline, possibly leading to a market saturation...

Despite the more than 30,000 residential units in the pipeline in San Francisco, with 5,000 or 6,000 slated to be completed annually over the year six years, O'Brien said he is not worried about an oversaturated condo market. He said the expense and political obstacles of building in San Francisco will kill off many of the developments. The 20-block Rincon Hill planning area is slated to have 3,675 new housing units, a 1.5-acre community park and $30 million in community enhancements.

I wonder how the other Rincon/SoBe planners/developers feel about that comment?

We all know that Supervisor Daly is torn between creating new housing and milking developers for his own political agenda, but how will the 'Supes react if some of these projects end up mired in Planning hell? Will they find a way to help them get built?

Condominiums at the Palms popular with first-time buyers

From today's San Francisco Business Times,

Rising interest rates may be dragging down the residential real estate market, but so far they do not seem to be affecting deluxe housing popping up in San Francisco.

By now, the sizzling sales at the St. Regis, the Beacon and the Ritz residential conversion at 690 Market St. have been widely reported. Now the 300-unit Palms at 555 Fourth St. is logging similarly dazzling numbers.

Mitch Laufer, communications director for Vanguard Properties, said they have sold out the first batch of 80 condos, the third and fourth floors along with part of the fifth. Half of the second installment of condos -- the rest of the fifth floor as well as the sixth, seventh, and eighth -- are also under contract. Laufer said he expects the building to sell out by June.

He said about 25 percent of buyers are empty-nesters and 50 percent are first-time home-buyers. The remaining 25 percent of buyers will use the units as pied-à-terres.

Some observations...

You'll likely have noticed that I only had 15 posts in the past week. That must be a new low for me. It wasn't 'cuz I didn't try... There's just very little housing news out there being published.

That said, there are things that I'm seeing that run contrary to what the media has been saying for so many months now, and perhaps they just don't want to admit that things are not quite as bad as they thought.

Open houses were absolutely slammed yesterday (March 26th), even at a listing for $3.5M

Mortgage interest rates were down for a second week in a row

Sales of existing homes were unexpectedly up in February

The Bay Area economy is doing just fine, with jobs increasing, rents going up and rental vacancies decreasing

I know the naysayers can dig around and find some negative news, too, but I'm just posing the question... Is it really that bad out there?

Tomorrow brings Fed Chair Ben Bernanke's first chance to change interest rates. There are opinions on both sides about how he'll react to recent market activities... If he raises rates, will that really have any effect? He has said that even if they do raise rates, they're likely only one or two increases away from leaving it alone for a while...

The New Skyline

SFCityScape has an editorial on the past, present, and future projects that will make up San Francisco's new skyline. An image of many of the buildings that comprise this skyline can be seen here.

...each of the condominium towers proposed by planners on Rincon Hill has been proposed by developers. And now that two developers who'd been pushing to have their previously proposed, squatter and too-close-together projects grandfathered in have sold to a developer proposing to build the single, taller and less-bulky tower preferred by the Planning Department, the neighborhood's future skyline has assumed its final form.

If all goes as planned, in a few years there will be nine towers between 350 and 550 feet tall in the district, five near the summit and four on the flats closer to the waterfront. Given their highly visible location between the Financial District and the base of the Bay Bridge, they will transform the city's skyline; the three towers already under construction set a high standard for design. But will San Franciscans without a special appreciation for highrise architecture be better off? We believe so.

But will only the wealthy be able to enjoy the neighborhood? Developers are contributing $34 million to programs for the poor elsewhere South-of-Market; thanks to San Francisco's affordable housing quotas, hundreds of non-luxury homes will be built; and we still believe that even high-end housing makes all homes cheaper by increasing total inventory. In fact, we believe the entire Bay Area will benefit as pressure to sprawl is reduced.

Rincon Hill towers get permits after OK for seismic safety [SFHomeBlog]
Applications for 27,000 units raise prospect of housing boom [SFHomeBlog]

Should they build those high-rises on stilts?

In yesterday's Chronicle, there was an interesting piece on how global warming could melt enough of the world's glaciers to raise ocean (and bay) levels by as much as 20 feet in the next 100 years.

Glaciers and ice sheets on opposite ends of the Earth are melting faster than previously thought and could cause sea levels around the world to rise as much as 13 to 20 feet by the end of the century, scientists are reporting today.

If the researchers' estimates are correct, a rise in ocean waters projected by the new studies not only would drown many of the low-lying inhabited atolls and islands that are already endangered by rising ocean waters, it also would threaten coastal cities and harbors on every continent.

Scientists have been warning for decades that greenhouse gases from autos and industry are warming the planet and raising the seas, but the studies appearing today in the journal Science are the first to suggest that sea levels could climb as high as 20 feet as a result of global warming.

And in San Francisco, that means that not only is the highly-regarded Marina District below that new 'shoreline', but so is most of SOMA, Mission Bay and the Central Waterfront. This image shows how far inland the water could go...

This is obviously one study's opinion of how bad it could get, but if the first three floors of a new high-rise are at risk of being underwater, you might want to look at floors four and above. Or just find another study that says it won't be quite so bad...

At the same time, you won't be able to park your SUV downtown anyhow, so you may as well do your part to save the ozone and sign up for CityCarShare, FlexCar, or ZipCar. In the end though, you might want to consider renting another form of transportation for your new water-front pad...

Home stagers in San Francisco busier than ever

From today's Examiner (their 'revamped' site still sucks, btw)...

As the housing market slows, more home sellers are turning to professional home staging for the help they need to get their property in shape for showing and selling, according to the San Francisco Association of Realtors, a trade group of more than 5,000 local members.

“It is becoming more common to stage homes and property as owners realize the value and benefit of the service,” said Matthew Borland, president of the association and managing partner of Zephyr Real Estate. “It’s a strategic move that helps compensate for flaws in the home and helps present the property at its very best."

“All properties should be staged, and it need not be expensive. Utilizing a client’s existing furnishings and presenting them in a clean, simple manner which optimizes the property is important. I often tell clients that the way you live in a home and the way you show a home are completely different,” Borland said.

Staging can include everything from painting and minor repairs, furniture and artwork to landscaping, cleaning and hauling; whatever it takes to set the stage and get a property looking good with mass market appeal.

The process can result in higher purchase offers with less time on the market.

In the interest of full disclosure, I will disclose that Mr. Borland is my manager and I do work for Zephyr, although I did not have anything to do with this article being published...

First impressions play key role in real estate sale [SFHomeBlog]
Jon Carroll on Home Staging [SFHomeBlog]

Domestic partner property inheritance upheld

From today's SFGate,

Domestic partners, like married people, can inherit real estate from one another in California without being hit with big increases in their property taxes, a judge has ruled.

The March 17 decision by Sacramento County Superior Court Judge Jack Sapunor upheld the 2003 state Board of Equalization rules and a 2005 state law that gave registered domestic partners the same tax break as spouses under Proposition 13.

The ruling is important for same-sex couples, especially those who have owned property together for many years, Jon Davidson, legal director of the Lambda Legal Defense and Education Fund, said Friday.

Domestic partners include same-sex couples of any age and unmarried opposite-sex couples in which at least one partner is 62 or older.

This is all based around Proposition 13, which I discussed yesterday...

County assessors from Tehama and Madera counties joined Sutter County in challenging the tax break. Sutter County Counsel Ronald Erickson was unavailable for comment on the ruling. Prop. 13, a 1978 initiative, cut property taxes and limited annual increases in assessments to 2 percent, but provided that property would be reassessed at full value when it changed ownership. However, transfers to spouses at death or divorce were not classified as changes of ownership, meaning that they are still subject to the 2 percent limit. The same exemption applies to any transfer of the family home to a child or grandchild.

Prop 13: A Lamprey on the Necks of California Youth?

From Jordana Thigpen in today's San Francisco Sentinel,

My plan this week was to address the 10% raise which United Educators has requested.

Yet it is delusional to write about the problems that our public schools have in San Francisco, and in the State generally, without addressing Proposition 13. Yes, that Proposition 13 - the 27-year-old, $3.2 billion gorilla in the room, which no elected has the courage to address. Like most 27-year-olds, Prop 13 is about to experience its Saturn Return. Astrologically, this portends great change.

Are you sick and tired of being sick and tired? So are our public schools. Reforming Proposition 13 is the only way to save our State and get our educational system back on track.

Proposition 13 arose the way that most revolts do - from corruption. A series of scandals involving county assessors made the public lose faith in the process. The counties weren't assessing properties uniformly (partly because of incompetence; San Francisco actually had the worst performance record in the 1960s.) This, and resulting inequities between poor and wealthy school districts, ultimately led to the Serrano v. Priest series of Supreme Court decisions throughout the 1970s. Yet the public was evenly split in the months leading up to the June 1978 primary, uncertain as always surrounding tax reform.

But then Los Angeles County announced it intended to do huge assessment increases in the new fiscal year, and the public hobbled our schools forever by passing Prop 13. We can cut a bit of slack for the 1978 vote. California voters in the 1970s were suffering from the afterburn of the 1960s, as well as having to deal with hellish orange and ochre shag-carpeted aesthetics at every turn. Presumably, it took a toll.

But it's pretty sad that the public didn't heed the prescient warnings of the opposition at the time: that Prop 13 would, among other problems: (1) subsidize commercial property owners; (2) make home ownership prohibitively expensive and create a disincentive for transfer; (3) unsustainably lay the tax burden on the disproportionately smaller class of young working people; (4) effectively destroy home rule for municipalities; and (5) siphon the blood of the school districts.

This has been my personal feeling for years. There are plenty of people out there who can very well afford to be contributing more to the public school system than they currently are, but will not have to... All because of Prop. 13 and having owned their homes for many years.

But Ms. Thigpen's suggestion protects those who need it, "Prop 13 protects senior and disabled homeowners, whose homes are still assessed at the 1975-1976 rate. It is extremely important that this remain a feature of any reform. In fact, as Baby Boomers evolve, this feature of Prop 13 will become critical."

California Proposition 13 [Wikipedia]
Professional house flippers [SFHomeBlog]

Standard and Poor's to Launch New Real-Estate Product

For those that are just dyed-in-the-wool convinced that we're going to see the housing market come crashing down, this one's for you... From today's RealEstateJournal.com (WSJ)...

Investors who think the housing bubble is about to burst will soon be able to bet not only on when it will happen, but where.

Standard & Poor's, a unit of McGraw-Hill Cos., is rolling out 10 indexes that will track housing prices in various regions of the U.S., as well as a composite index. The indexes, which plan to launch in April, will serve as the basis for futures and options contracts that will trade on the Chicago Mercantile Exchange.

The contracts will allow investors to go long or short on a specific housing market -- that is, bet on it rising or falling in value.

Dubbed the S&P/Case-Shiller Metro Area Home Price Indices, the 10 cities comprise Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco and Washington, D.C.

The indexes will use calculation techniques developed by economics professors Karl Case and Robert Shiller (authors of Irrational Exuberance), such as repeat-sales calculations and a database comprised of home sales from a variety of sources, including lenders, multiple-listing services and public records. Data will be gathered continuously, and the indexes will be updated and published monthly, Standard & Poor's said.

You bet your house: Home price futures are coming [SFHomeBlog]
What Do Cheddar Cheese, Nonfat Dry Milk and Housing Have In Common? [Matrix]

Kabuki Theatre Sold to Sundance Cinemas

Lots of folks got to this one before me, but the news is still good: Sundance Cinemas has confirmed their purchase of the Kabuki Theatre in Japantown. SFist seems to have hit the streets with the news first:

With January's merger between AMC and Lowes theatres, the company they became, AMC Entertainment Inc, is required by U.S. Department of Justice and the attorneys general of California to sell the Kabuki and 1000 Van Ness theatres. While the Van Ness property remains available, today the long-rumored purchase of the Kabuki by Robert Redford's Sundance Cinemas was officially announced.

Expected to become "a state-of-the-art independent movie house", Sundance plans on beginning renovations to the theatre in early May, following the San Francisco Independent Film festival. This fall it'll reopen as the "Sundance Kabuki" (that has quite a nice ring to it, doesn't it?), with stadium seating in at least five of the eight auditoriums, larger screens, and booze sold in the mezzanine and balcony levels.

The Reuters piece we read stated that "the company plans on keeping the Japanese-influenced decor in the complex's largest theater", which we applaud. Hey, Redford, while you're at it, bring back the Kabuki disco ball!

Sundance Film fest ponders buying Kabuki [SFHomeBlog]
Sundance Buys Kabuki [Ess-Eff]
City, Japantown leaders welcome deal for multiplex [SFGate]
Sundance Cinemas buys San Francisco theater [Reuters]

New Housing Complex Offers Positive Change For The Tenderloin

From KCBS.com,

Some two hundred people in San Francisco's Tenderloin District -- including some who were formerly homeless -- are living in a new lower-income housing complex, which celebrated its grand opening yesterday.

There are sixty-seven occupied apartments in the new Curran House, located in the 100 block of Taylor Street. The nine-story complex includes studios and one, two and three bedroom units with one, one and a half or two bathrooms each.

Curran House residents include people with disabilities, and individuals and families with relatively wide income disparities.

Rents range from $750 for a studio, to $1,150 for a three bedroom unit. At least ten units have been reserved for the homeless.

Curran House includes ample green space. Residents and visitors enter the large lobby through a "decompression garden," and the lobby leads to a separate courtyard with space for children to play. There's also a rooftop garden, as well as a conference room and ample common areas on the ground level.

Affordable New residential: Curran House [SF Business Times]

Study ranks CA nearly last in the nation for percentage of homeownership

From today's Chronicle,

If the Bay Area were to have homeownership rates on par with the rest of the nation, 256,000 more households would need to own homes, according to a new study by a state building industry association that hopes to loosen existing land-use policies. But environmental groups say boosting residential production -- while a way to address some of the state's housing problems -- could cost Californians more in traffic, pollution and sprawl.

The study, titled "Homeownership in California," makes the case that the state's 57 percent homeownership rate -- the second lowest behind New York -- lags far behind the national average of nearly 70 percent because a patchwork of environmental policies and legal decisions has choked off new home building and thereby pushed home prices $300,000 above the national average.

Now, as a dwindling number of residents can afford even modest homes, the building industry contends the answer is to curtail the use of the quality act by environmental groups to halt development and to force cities to identify and plan for a 20-year supply of new housing.

[The Sierra Club] and others support the development of underutilized urban plots as well as so-called inclusionary housing ordinances. Such measures, which are already on the books in many cities including San Francisco, require builders to make a certain portion of any home development affordable to low- and moderate-income households.

Unfortunately, this seems to imply that relaxing environmental safeguards is the answer, but I think that increasing housing density is a more practical solution. Even in San Francisco where we have the highest density in the Bay Area, we could still do better in many ways, such as along the often-debated transit corridors.

This is yet another reminder how creating a housing moratorium is just ridiculous.

Is new condo development being shut down?

This week's Guardian covers what they're calling an indirect housing moratorium in the eastern neighborhoods...

No one's quite sure what to call it yet, but it has shaken San Francisco's housing debate to its very core, pitting developers against proponents of low-income housing and blue-collar jobs.

San Francisco planning officials acknowledged March 16 that no developer in eastern San Francisco can build another market-rate unit until the city answers a key question:

How does a million-dollar loft impact the person who cleans that loft — or works in a warehouse next door — and needs a place in the city too?

Here's the backstory: The San Francisco Planning Department determines on a project-by-project basis whether an environmental impact report is necessary. Several months ago planners decided that a 68-unit residential building at 2660 Harrison St. had a green light to move forward with no EIR.

When land-use attorney Sue Hestor and the Mission Anti-Displacement Coalition appealed that decision, the Board of Supervisors did something unusual: On Jan. 24 the board upheld Hestor's appeal, which in effect asked that an EIR for the project include an analysis of the "cumulative impact" of all market-rate housing, including 2660 Harrison, on the eastern neighborhoods of the city.

In other words, a 2660 Harrison EIR would have to include a look at the project's impact on available jobs in eastern San Francisco and on the future availability of low-income housing.

And under that precedent, every developer of every market-rate housing project would have to undergo the same expensive, time-consuming process.

Although I agree that the infrastructure is key to good neighborhood planning, this needs to be a priority so that construction on all levels of housing can continue. The best thing that could happen for home buyers in San Francisco is more inventory, but the flip-side of that is only going to drive prices further out of reach.

A deep breath for city planning [SFBG]

Updated list of vendors that sell prepaid parking meter cards

As someone whose job requires driving around town and often parking at meters, I must say that the new prepaid parking cards for parking meters are fantastic.

When they first launched, they were only sold in a few locations, but now there are multiple vendors around the city including some drug stores. MUNI's web site has a list by neighborhood.

It's nice to not have to worry about parking only to find that I am out of quarters...

Parking Meters Now Take Prepaid Cards [SFHomeBlog]

Existing Home Sales Post Unexpected Gains

From today's SFGate...

Sales of existing homes unexpectedly rose last month as a warmer than usual winter boosted demand in many parts of the country, but a slack demand in some areas produced what one analyst called a "tale of two cities."

The National Association of Realtors reported Thursday that that sales of existing single-family homes and condomiums rose by 5.2 percent in February to a seasonally adjusted annual rate of 6.91 million units.

The Realtors have been forecasting that sales of previously owned homes would fall by about 5 percent this year compared to last year's record pace. But Lereah said he may have to revise that forecast given the unexpected strength in February.

By region of the country, sales rose by 19.2 percent in the Northeast and were up 11.1 percent in the Midwest and 5.1 percent in the West in February. Only the South showed weakness last month with sales there dropping by 2.5 percent from the January pace.

As you all know, I'm not one to post national stories very often, but this one came as a surprise to almost everyone.

The market in San Francisco is quite strong right now, and I would attribute any slowness to media hype, and not to rising interest rates. There are some great opportunities out there for buyers, while at the same time there are a surprising number of properties selling with multiple offers and over-asking. In our Zephyr sales meeting yesterday, more than 50% of reported sales were over-asking...

This is definitely not 2005 all over again, and we may see things slow again as the traditionally heavier summer inventory comes onto the market, but as I keep saying, this is a very good, balanced market right now.

Housing crash experts WRONG again [Inman Blog]

Deciding when to switch to a fixed rate mortgage

Today's WSJ/Real Estate Journal.com has a food-for-thought article on some things to consider if you have an adjustable rate mortgage...

More than $2 trillion of adjustable-rate mortgages come up for interest-rate resets in 2006 and 2007, according to Moody's Economy.com. For homeowners who want to refinance to a fixed-rate loan, the timing couldn't be worse -- the average rate for 30-year fixed rate mortgages is at the highest level since 2003.

WHAT TO DO: If the rate on your ARM is about to move higher and you have no plans to move in the next five to seven years, locking in a fixed-rate mortgage may make sense. To find out how much more you'd pay refinancing to a fixed-rate loan, click here [Bankrate.com].

If you plan to move soon, don't bother refinancing -- it's likely you wouldn't recoup your closing costs. For borrowers with hybrid mortgages, which combine a fixed-rate and an adjustable-rate loan, the decision to refinance or wait until the fixed-rate period ends depends on whether it's likely rates will continue to rise, or whether we're nearing the end of the current round of rate increases, as some economists predict.

Just a couple of weeks ago I posted some calculations on how the 30-year fixed mortgage has changed between now and the historical low. That 'timing couldn't be worse' line above is a bit misleading. Yes, rates are higher, but if you do your homework you might find (as they point out above) that it might not make sense to refinance if you aren't going to be able to recoup your closing costs on that loan.

And for the record, the 30-year fixed opened DOWN nearly a 1/4 point this week.

Family Rent Subsidies?

Today's BeyondChron discusses the concept of family rent subsidization as a way to keep families in San Francisco,

For all of the political talk and media stories about families with children leaving San Francisco, no action has been taken to stem this trend. This could change tomorrow, as the Budget Committee of the Board of Supervisors considers a proposal by Supervisor Chris Daly to devote $5 million from the city’s current year surplus to help families pay the rent. The rent subsidy program would immediately help struggling families stay in San Francisco, and also allow families living in overcrowded units, shelters or in SRO’s to obtain suitable housing. The city’s political leadership appears strongly supportive of the rent subsidy plan, but with competing proposals for street repair, parks maintenance, and more police officers, the needs of San Francisco’s low-income families could once again get lost in the shuffle.

Let us stop for one moment and recognize that we already have in place what may be the world's largest non-governmental rent subsidy program. It's called RENT CONTROL.

Don't get me wrong, this rent subsidy might be a great idea, and I am 100% for finding logical (!) ways to keep families in San Francisco, but let's not forget that right now it's those 'EVIL' landlords that are subsidizing tens of thousands of families' rent each and every month. Somehow Daly and the article's author forgot to remind everyone of that.

What choices are there for homes that aren't selling?

In this 'balanced' market, there are inevitably going to be properties that are over-priced, or sellers whose expectations are out of line with buyer's wants and needs. Dian Hymer has a good article on Inman News today about some considerations if your house is languishing on the market...

What are your options if your home is less desirable in the current marketplace than you'd hoped it would be?

One option is reduce your price. Another is to hold out for a while, hoping that the market improves to meet your price. In most cases, however, the latter option is unlikely to yield results.

A third option, if there's no urgency to sell, is to rent the property for a time and sell at a later date. This might be worth considering. However, as with any scheme, there are pros and cons that should be evaluated carefully before making a decision.

On the positive side, a property that is, or will soon be, sitting empty will generate income. This income can help offset mortgage and property tax obligations and homeowner association dues for condo owners. Another plus is that you can buy time until the market improves.

On the other side, consider that the market in most places is still good. 2006 isn't expected to be as strong a year for homes sales as was 2005, which was the best year ever. However, David Lereah, chief economist for the National Association of Realtors, predicts that the 2006 home sales volume will be the third best ever.

As a seller, your best bet is to hire an agent who knows your neighborhood and who knows the agents who work your neighborhood with buyers. Then learn the comps and choose an asking price that makes sense in today's market. There are plenty of properties changing hands in San Francisco, despite what many media reports might lead you to believe. This balanced market can be great for sellers who do their homework, prepare their property well, and price it right the first time.

Capital gains rate rules change in '08

Here's an interesting clarification for those that might have misunderstood the capital gains tax changes coming in 2008, from Sunday's Chronicle...

"Someone I know told me that this billionaire he knew was going to sell everything in 2008 because there will be no tax on long-term capital gains. I went online and, sure enough, there was one sentence that said the same. If this is true, isn't it big news? Shouldn't many of us begin planning to sell our assets in '08? Wouldn't that mean that a lot of real estate, private companies and stocks would be sold that year?"

John's online "discovery" includes a morsel of truth in a mountain of misunderstanding.

The morsel: The federal long-term capital gains rate in 2008 will indeed be zero, but only for people in the two lowest tax brackets and only for a limited amount o