Thursday, August 26, 2010

Thursday calmer at East Point housing office

East Point housing officials began accepting Section 8 applications 90 minutes early Thursday morning after crowds of people showed up to turn in the forms.

A day after a crowd of 30,000 mobbed the housing authority offices to pick up the forms, a small crowd of less than a dozen people began lining up around 5 a.m. The group was dispersed by East Point police about an hour later. But shortly after 7 a.m., officials allowed people to line up on the sidewalk adjacent to the building. There were about 50 people in line at 7:30, when officials brought out boxes and began to accept the applications. That process had been scheduled to begin at 9 a.m. Applications will be accepted until 5:30 p.m.

Police used cones to set up a special lane on Norman Berry Drive where people could drop off their forms without getting out of their cars. Housing authority workers in lime green shirts were collecting the applications in cardboard boxes; police officers were then directing them back into traffic. At 8:30 a.m. the process was running smoothly.

"It's more of a traffic concern today," East Point Police Chief Leander Robinson told the AJC.

Kim Lemish, executive director of the East Point Housing Authority, said, "Today we are accommodating the crowd." She said she spoke Wednesday with the Atlanta field office of the federal Department of Housing and Urban Development and "they expressed their concern about what happened yesterday" and were working on ideas to facilitate the process.

She acknowledged that some of the people who turn in applications will wait years to get housing under the program. She said they will be put on a list but that the process is not necessarily a first-come-first-serve basis. Other criteria, such as financial need, family size, employment status, age and disability, could move some people up on the list.

Lemish said 13,000 applications were distributed Wednesday and that everyone who showed up before the 1 p.m. deadline received one.

Applicants came from all over the metro area and some came from other states. Since the program is a federal program, applications are not limited to East Point residents, Lemish said.

The current process is being conducted because, while all housing units are filled, the waiting list is depleted and the current group of applicants will be put on a new waiting list. There are a total of 655 housing spots available -- 200 public housing units and 455 vouchers for rent assistance in private housing. East Point currently has five housing developments, but three of them will be closed or sold.

Lemish said it will likely be six months before any vacancies arise and that people could spend up to 10 years on the waiting list.

Applicants have until Aug. 30 to turn in their application. Leming said that in the future the process will be done electronically and that people without computer access can come to the housing authority office to use the computer.

While Thursday's process went much smoother, there were some confusing moments early on.

Marissa White arrived at the Housing Authority office about 6:25 a.m. Thursday and walked up to the front door to wait to turn in her application.

Within minutes, an East Point police officer drove by and told White she could not wait outside the office.

“They want us to mail it in, but most folks aren’t going to mail theirs in, thinking they will get lost in the mail,” she said. “And they said first come, first served, so I’m going to be there first,” she said.

White said she lined up at Tri-Cities Plaza just after midnight Wednesday morning to get her application.

“It was so disorganized,” White said. She said authorities had set up barricades to keep the lines orderly, “but those folks knocked them down in 30 minutes.”

“It was crazy,” she said. “It was a sight to see.”

An estimated 30,000 people suffered through hours in the hot sun, angry flare-ups in the crowd, and lots of frustration and confusion for a chance to receive a government-subsidized apartment.

The massive event sometimes descended into a chaotic mob scene filled with anger and impatience. Some 62 people needed medical attention and 20 of them were transported to a hospital, authorities said. A baby went into a seizure in the heat and was stabilized at a hospital. People were removed on stretchers and when a throng of people who had been waiting hours in a line was told to move to another line, people started pushing, shoving and cursing, witnesses said.

Still, officials of East Point declared the day a success. Nobody was arrested and nobody was seriously injured, they said.

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NJ Tenants Not Privy to Blight Notifications

NEWARK-The Supreme Court recently came out with a ruling on Iron Mountain Information Management Inc. v. The City of Newark, which impacts whether or not commercial tenants are entitled to notice of a proposed blight designation under the provisions of New Jerseys’ Local Redevelopment Housing law. The issue before the New Jersey Supreme Court was whether a long-term commercial tenant, with a limited right of first refusal, is entitled to the same notice as the property owner when the property is subject to a potential blight designation.

On May 19, 2010, the Supreme Court held that the legislature intended to limit the right to actual notice of blight designation to owners of record and those whose names are listed on the tax assessor's records, and Iron Mountain was not deprived of any due process protections afforded by the New Jersey or US Constitution. This raises some interesting points for commercial tenants in the state, says John S. Stolz, partner of Lowenstein Sandler’s real estate practice group.

But first, some background. In 2004, the Newark Municipal Council adopted a resolution authorizing the Planning Board to investigate whether a group of properties, including the building in which Iron Mountain is a tenant, qualified as blighted, Stolz relates. “Following the publication of a notice of hearing and service of the notice on the building owner, the Planning Board held a public hearing and concluded that the property met the applicable criteria for a blight designation,” he tells GlobeSt.com. “A resolution was adopted designating the blighted area and directing that a redevelopment plan be drafted. The Planning Board held another public hearing to consider the redevelopment plan and adopted resolutions approving the development plan and appointing the housing authority to serve as the redevelopment agency.”

Iron Mountain challenged both the initial blight designation and the subsequent approval of the redevelopment plan, arguing that its status as a long-term commercial tenant amounted to a protected property interest in the property that entitled it to the same notices that the LRHL affords to the property owner.

But the Supreme Court disagreed and sided with the Appellate Division's reasoning that the legislature intended, in the blight designation context, to limit the right to actual notice to owners of record and those whose names are listed on the tax assessor's records. “The Appellate Division also concluded that there were no due process violations because commercial tenants do not have an interest entitled to individualized recognition and protection at the earlier blight designation stage, the condemnation stage affords the tenant a comprehensive and complete forum for the vindication of its rights,” says Stolz, “and the administrative burdens of requiring individual notice at the earlier blight designation state are enormous.”

Consequently, commercial tenants are not entitled to notice of a potential blight designation pursuant to the LRHL and may have no rights or remedies until there is a condemnation proceeding. “Tenants are basically left in the dark,” Stolz tells GlobeSt.com, but he adds that they do have the option of getting onto the tax role or simply doing some legwork and looking into whether the property they are in has been designated as blighted.

http://www.globest.com/news/1724_1724/newjersey/301643-1.html?ET=globest:e23072:272158a:&st=email

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Sell Properties In A Weak Real Estate Market With Land Contracts

Land contracts, also known as a contract for deed, trust deed or installment sale agreement, are an option for real estate investors who want to obtain monthly cash flow from properties they are going to sell while still holding title to the property.

A land contract is an agreement between a buyer and a seller. Instead of selling a property outright, a real estate investor “contracts” the property to a buyer.

The seller provides financing for the buyer at a pre-arranged price. The buyer pays back the “loan” in installments. You can use land contracts to buy or sell properties.

Selling A Home Using Land Contracts

With a land contract, the seller holds the deed to a property until the buyer pays for the loan in full. A land contract doesn’t involve banks or traditional mortgage lenders. There are no credit requirements or rigid financing rules. For sellers with credit challenges, this alone can be worth it, because the price of the home may be less expensive than a traditional mortgage.

Land options also offer benefits for investors: The seller of a land contract can charge a higher sale price than if the property is sold with traditional bank financing. The seller doesn’t have to pay a down payment, so the real estate investor can command a higher purchase price and a higher interest rate for more profit.

Land contracts help investors sell properties in a weak market, particularly because land contract homes’ fees are lower.

Requirements For Land Contract Buyers

The title can only be transferred after payments are paid in full.

While the property is under contact, the buyer must make all payments. Although payments are set between the buyer and seller, they are typically set using a mortgage amortization schedule.

Legally, the seller is allowed to stay in the home as long as they are not in default. At the end of the contract, the buyer would typically make a balloon payment and then own the property outright.

If the buyer defaults, the seller can repossess the property. The buyer would lose payments and equity gained during the duration of the contract. By law, the seller would not be required to transfer the deed to the buyer.

Check the laws in your state. Land contracts vary by state. They are a popular tool in states such as Michigan, but some states do not have favorable land contract laws.

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