Winter/Spring 2005-2006

UNPA ANNUAL REPORT – 2005
Click here for information on UNPA’s 2005 Annual Report




THE HOUSING BUBBLE IS NOT ABOUT TO BURST HERE!
By: Joanne Stewart, Executive Director, UNPA

This neighborhood is fortunate to be considered one of the most desirable places in the City to live because of its location close to University Hill establishments and Downtown, its quality of public and private schools, unique architecture and history, cultural diversity, and abundance of green space. As a result, the demand for quality housing stock continues to rise.

As a bit of history … in 1990, a group of concerned residents began developing a strategy to proactively market the neighborhood as a "great place to live", one they hoped would also ebb the tide of investor ownership versus owner occupancy (an impact identified as directly attributable to having S.U. as a neighbor). A breakthrough occurred in 1993 when S.U. and the City of Syracuse entered into an agreement (Ordinance #553) requiring S.U. to pay a fee of $250,000 annually to fund services addressing students’ impact on neighborhoods southeast of the campus. Increasing each year, with the Consumer Price Index, the fee in 2005-06 was $329,750, bringing S.U. total contribution to more than $3 million. As a result, the University Neighborhood Service Agreement Advisory Council (UNSAAC) was born, and with it, the University Neighborhood Preservation Association. That same year, UNPA became incorporated as a 501 (c) (3) non-profit organization responsible for administering a portion of the funds generated by the fee.

If success can be measured then UNPA is successful. With those funds, UNPA has assisted over 500 homebuyers with $2 million dollars in grants or deferred loans in total since 1993; and over 200 homebuyers with $500,000 in grants and loans since 2001 alone. Of those assisted:

− Over 90% are first time homebuyers.
− Over 30% are 13210 residents who previously rented or owned, returned and opted to buy and settle in the neighborhood.
− Nearly 50% are employed by Crouse Hospital, Upstate Medical University, SUNY College of Environmental Science & Forestry, Veterans Administration Medical Center, or Syracuse University.
− Over 90% work in the City of Syracuse.
− Nearly 45% purchased formerly rental, foreclosed or estate houses.
− Over 30% are low to low-moderate income recipients who (together with funding from UNPA and other subsidized homeownership mortgage and rehabilitation assistance programs) were able to achieve the dream of home ownership.

About five years ago, UNPA began participating as an investment and development partner with Empire Housing & Development and Home Headquarters, both non-profit residential development agencies. Independently, these teams have identified, purchased, rehabilitated, marketed, and sold (to owner occupants) a number of formerly distressed single and multi-unit properties within the UNPA target area. These properties are located on the 200 Block of Clark Street, 100 Block of Fellows Avenue, 700 Block of Sumner Avenue, 100 Block of Concord, and 900 Block of Euclid Avenue. Most recently, rehabilitations have been completed on a long time rental property located on the 900 Block of Lancaster and a formerly dilapidated c.1870 Victorian-style house located on the 100 Block of Concord Place. Both properties are for sale. Soon to become projects for Home Headquarters are properties located on the 700 Block of South Beech Street and 100 Block of Fellows Avenue.

To learn more about UNPA and its programs, please visit www.unpa.net. While there, be sure to check out the “News & Events” and “Buying a Home? Own a Home” sections to learn about other grant, loan and tax incentive programs available to home owners and buyers of all income levels.

NATIONAL DO NOT CALL REGISTRY IS OPEN FOR BUSINESS …
The Federal Trade Commission, Federal Communications Commission and the states are enforcing the National Do Not Call Registry. The Federal government created the registry to make it easier and more efficient for you to stop getting telemarketing calls you do not want. Placing your number on the registry will stop most, but not all, telemarketing calls. If you are a consumer interested in signing up for the registry, visit www.donotcall.gov or call (888) 283-1222. Registration is free.

GROUP TO FIX UP HOUSES NEAR SU …
By Tim Knauss, The Post Standard, Real Estate Notebook, August 28, 2005

Home HeadQuarters (www.homehq.org) and the University Neighborhood Preservation Association (www.unpa.net) recently started shopping for 10 run-down houses to buy in the neighborhood just east of Syracuse University. They plan to fix the houses up and sell them to new owners at subsidized prices. Citizens Bank is donating about $65,000 to the cause, which will be used to subsidize the cost of the renovated houses for buyers, said Kerry Quaglia, executive director of Home HeadQuarters. The average subsidy is expected to be about $6,500, he said. This project follows the pattern of purchase-and-rehab programs HomeHeadquarters has undertaken in other parts of the city. One key difference, though, is that homebuyers in the University area will not have to qualify based on income, because the subsidies come from private bank money, not government program money. That’s appropriate, Quaglia said, because houses in the University neighborhood tend to cost more than what low-income buyers could afford. "Some of the properties can cost $80,000 to $90,000, and then they need some work. You’re not going to get a low-income family to qualify for a mortgage to buy one of those," he said. UNPA will help locate houses for the program, and will market the opportunity to prospective home buyers. The program will focus on UNPA’s target neighborhood, which extends roughly from Comstock Avenue east to Cumberland Avenue, and from East Genesee Street south to East Colvin Street.

THANKS TO CITY SCHOOLS …
From The Post Standard, Letter to the Editor, Roseann Beamish, August 26, 2005

As the new school year approaches, I would like to take this opportunity to thank the teachers and administrators of the Syracuse City School District for a job well done. My daughter graduated from Corcoran High School in June and I am now sending her off to college extremely prepared to face any challenge. For 13 years, she was nurtured and educated by dedicated, caring and talented people. She made friends with a diverse group of children, and I believe that has helped her learn important lessons about the true nature of people. I hear so many negative comments about the city schools, but there are so many great things going on in all the school buildings in the city that are never brought to light. They’re teaching our kids and doing a great job. That really isn’t noteworthy; it’s just what they do.

DISTRICT IMPROVES WEB SITE …
From The Post Standard, Neighbors City, Schools, August 25, 2005

The Syracuse City School District’s website is improved and ready to use. The site is easier to navigate, contains more information and is easier for district staff to contribute to and maintain. Visit the revamped product at www.syracusecityschools.com. It includes links to individual school web sites, a district calendar, school board meeting dates and minutes, demographic information about the district, staff directory, Parent Partnership Network information, and links to the state school report cards.

REVERSING A TREND, PEOPLE HOME TO CNY …
By Rick Moriarity, The Post Standard, November 26, 2005

Don’t get him wrong, Alex Abdo had nothing against the weather in Tampa, Fla. He just like the Central New York landscape better. This is where he grew up, and it’s where his family and most of his friends live. So, Abdo, a lawyer, left a job in Tampa where he had worked for a little more than a year, and moved back to Syracuse three weeks ago. With the help of the Metropolitan Development Association’s "Come Home to Syracuse" program (www.comehometosyracuse.com), he found a job within days. "It seems like the area is moving in the right direction," said Abdo, 27. "I’m really happy I’m back, and the firm I’m working with is great." His return is part of a trend for the Syracuse area: more people choosing it as a place to live and work. Catalyx Inc. recently released statistics showing that a key measure of the region’s ability to attract and retain young professionals improved 32% between 2000 and 2004. An improved job picture and housing prices rising at a healthy clip are indicators of the region’s growing economy.

PMI COULD BECOME DEDUCTIBLE …
Kenneth Harney, Syndicated Columnist for Nation’s Housing

Prospective home buyers struggling to scrape together a down payment could get a little help from a tax deduction under consideration in Congress. The tax break would allow homeowners to deduct the cost of private mortgage insurance (PMI) which is charged by banks and lenders when the home buyer cannot amass a down payment covering 20% of the purchase price. Homeowners can already claim a tax deduction on mortgage interest paid during the year. Advocates say the PMI tax benefit could help younger home buyers and lower income families afford a house. For the first time homebuyers, getting that initial down payment is usually the single highest hurdle. The Mortgage Insurance Companies of America said more than 12 million people who pay PMI could be helped.

PRESIDENT BUSH PROPOSES ZERO DOWN PAYMENT …
Kenneth Harney, Syndicated Columnist for Nation’s Housing

What do you say to zero down on your first home purchase? And how about rolling your closing fees into the mortgage itself, giving you a home loan that costs you virtually nothing out of pocket upfront? That intriguing offer could become a standard, government-backed option for an estimated 150,000 or more first-time homebuyers if Congress approves a new "zero down" program to be proposed by President Bush. FHA officials say the zero down payment features adds an extra layer of risk of potential default to any loan, but the agency expects to manage that risk with slightly higher insurance premiums than charged on standard FHA program. Instead of the current 1.5% premium upfront on a 3% down FHA mortgage, zero down borrowers will pay 2.5%. But the premium will be rolled into the principal balance and financed over the life of the mortgage. The zero down payment option will also require a slightly higher monthly premium payment than the traditional 3% down program – effectively adding a one-quarter or 1% "bump" onto the loan rate during the first five years of the mortgage. The program will not be available for re-financings only applicants buying their first homes.

RETIREES LOOK FOR LIVELIER DIGS …
MANY SHUN SENIOR HOUSING FOR PLACES WITH YOUNGER MIX …
From Home & Real Estate, Rochester Democrat and Chronicle

Given the choice, most Americans prefer the idea of growing old in their own homes. But retirees who move, out of necessity or design, often shun housing that’s dedicated to seniors. Instead, older homeowners often move to rentals where people of all ages live. "A lot of people really do move out of their homes to rent in all-ages neighborhoods," said Robert Kramer, president of National Investment Center, a non-profit research group that analyzes the senior-housing industry for investors. "Between ages 55 and 90, you’re seeing almost a doubling in the percentage of those who are renting (in all-ages neighborhoods) versus owning." Cost is one reason senior-oriented housing is avoided. Whether it’s an active adult community, an assisted living center, or a continuing care community offering nursing home care, it’s likely to cost more than a small apartment in an all-ages area. But the choice is not always cost. Some retirees shun senior housing because it continues to connote a place where only the infirm live. "There’s the old perception of a nursing home, where you go to die, or at least the perception of ‘I don’t want to be around a lot of people who are infirm," Kramer said. "Baby boomers don’t want to think of it as retirement and they don’t want to think of themselves as seniors." Elinor Ginzler, manager for independent living and long-term care for AARP, says "The degree to which one feels engaged with others can have a huge impact on your mental and physical health." For those who plan on staying in their home, now is the time to prepare for frailty. "You need to plan for what could happen," said Barbara Krueger, founder of www.SeniorResource.com which offers tips on a variety of senior topics.

COR WORKS WITH HOUSING PARTNER AT CHERRY HILL …
By Mike Fish, The Post Standard, December 2005

A Manlius developer and a Syracuse nonprofit housing agency revealed plans to tear down the 30-year old Cherry Hill complex and build a $15 million townhouse project for low and moderate-income families. The new complex, called Maple Heights, will accommodate 50 families in 12 townhouses containing 50 units with one to five bedrooms in each unit. Housing Visions is a partner with COR Development Co. Maple Heights will be COR’s first venture in housing. Housing Visions has extensive experience with this type of housing. Maple Heights will be available only to low and moderate income families. For example, a family of four with an annual household income of $34,440 or lower will qualify. A family of eight at or below $45,480 will qualify. Because of federal housing tax credits, the monthly rent structure is going to be significantly below market rents. The Empire State Development Corporation has designated the partnership of COR and Housing Visions to build the new complex. They will spend more than $1 million to demolish Cherry Hill. Construction of the new complex is slated to start by the Fall of 2005 and be ready for occupancy by the Fall of 2007. Interested? Contact Housing Visions Unlimited Inc. at (315) 472-3820.

NUISANCE PARTY ORDINANCE PASSED …
South East University Neighborhood Association (www.seuna.org)

On November 7, 2005, the Syracuse Common Council unanimously passed a new Nuisance Party Ordinance giving the city new tools to control parties that get out of control anywhere in the city. Under this ordinance, city police can immediately break up a party that meets the criteria of a "nuisance" party and hold the organizers of the party accountable. Both tenants and property owners may be cited under the new ordinance and fined up to $500 and/or imprisoned for up to 15 days. Getting this ordinance passed was a cooperative effort between SEUNA, Syracuse University, and the Syracuse Police Department. Credit for the work of actually drafting the ordinance goes to the Common Council’s Public Safety Committee chaired by Bill Ryan. Ryan says his committee worked with the Corporate Counsel to examine other Nuisance Party ordinances and court challenges to these ordinances in other municipalities, and then developed the current ordinance using this information.

SONYMA CHANGES ITS RULES
From Tim Knauss, Real Estate Notebook, May 2005

The good news: the State Of New York Mortgage Agency better known as SONYMA, has raised the maximum prices that first time homebuyers can pay for houses and still quality for low interest mortgages. The bad news: SONYMA has reduced the amount it will pay toward closing costs. Previously loan recipients could quality for closing cost assistance up to $5,000 or 5 percent of the mortgage. That was recently reduced to $3,000 or 3 percent of the mortgage. For more information go to www.nyhomes.org or call (800) 382-4663.

LENDERS SEEK OUT IMMIGRANTS
By Holden Lewis, Columnist for Real Estate Watch / Scripps Howard News Service

Immigrants are increasingly getting the message, "Welcome to America, now go buy a house." The federal government’s policy is to raise the homeownership rate, and the most efficient way to do that is to concentrate on minorities and immigrants. The white homeownership rate is almost 75 percent. A little less than half of black and Hispanic households own their home, and the Asian rate is a big higher than 50 percent.
For years, mortgage lenders have had programs for minorities, especially blacks, that involve relaxed credit standards and neighborhood outreach. Now those efforts are being tweaked and expanded for immigrants. There’s a good reason for that: Immigrants head more than one in three new households, according to the Harvard Joint Center for Housing Studies (www.jchs.harvard.edu). More than 1.2 million immigrants have arrived every year since 2000. Immigrants are where the housing growth is.

The nation’s largest mortgage lender, Countrywide (www.my.countrywide.com), markets aggressively to immigrants. "The major challenge when we’re dealing with multicultural markets is the educational aspects," says Rudolfo Saenz, Countrywide’s Executive Vice President of Multicultural Markets. Many immigrants do no know much about this country’s banking system. "They don’t really know what questions to ask, how to select the best product, what papers and questions will be part of the application."

Last year, Countrywide introduced its Optimum Loan program, under which borrower education is just one facet. Optimum combines disparate features of many loan products into one: allowing low or no down payment, supplementing the credit record with "non-traditional" credit, recognizing cash income and rent from housemates, and permitting the pooling of money for down payment and closing costs. Mortgages with low or no down payments are relatively common nowadays. Optimum’s three other features are relatively unusual.

Take the nontraditional. A lot of immigrants don’t have extensive credit histories in the U.S., both because they don’t have many car loans and credit cards, and because they just haven’t been in the country long enough to establish a track record. Countrywide and other companies (such as credit scoring Fair Isaac) are creating ways to augment meager credit histories with records of utility payments, rent and even money sent to families abroad. They are finding ways to confirm cash income from services such as child care and landscaping. Rent paid by long-term boarders is counted as income. Down payment money from multiple sources is allowed. This last item is important for immigrants with extended families.

YOU MIGHT BE OWED MONEY FOR REFINANCING
From Tim Knauss, Real Estate Notebook, April 2005

If you refinanced your mortgage since June 1996 (and who hasn’t) you should dig out your paperwork and see who issued the title insurance. It could be worth $75 or more to you. A $31.5 million settlement is pending in a class action lawsuit against eight companies that plaintiffs had accused of overcharging New York state residents for title insurance on refinanced mortgages. A final hearing will be held July 29 in State Supreme Court in Nassau County. If the court approves the deal, consumers will be eligible for refunds of at least $75, and up to $600 depending on circumstances.

State regulations say that borrowers who refinance within 10 years of taking out an initial mortgage on the same property are entitled to a discounted rate for title insurance. The class action lawsuit alleges that the defendant companies did not make the discounts available, a claim that defendant deny.

You may be eligible for a refund if the title insurance on your refinanced mortgage was issued by one of these: American Pioneer Title Insurance Co., Chicago Title Insurance Co., Commonwealth Land Title Insurance Co., Fidelity National Title Insurance Co., First American Title Insurance Co., Lawyers Title Insurance Co., National Title Insurance Co., or Stewart Title Insurance Co.

Claims must be filed by October 27. To download a claims form and find more information, go to www.titleinsurancelitigation.com. You can also request a claim form by calling (866) 808-3589 or by writing to Coordinated Title Insurance Cases c/o The Garden City Group, Claims Administrator, PO Box 9000 #6220, Merrick NY 11566-9000.

CONSIDER GIVING A GIFT OF PROPERTY

Property donations to UNPA have benefits for everyone. As a nonprofit institution dedicated to the mission of promoting the University Neighborhood and increasing owner-occupancy, UNPA has a special interest in donations of property. A gift of real property can generate many benefits. By transferring property directly to UNPA, you, the donor: avoids potential capital gains tax that might occur from property sale, takes an income tax deduction for the full fair market value* of the property, and will eliminate property tax burdens and maintenance costs. Donated properties will be rehabilitated and sold to owner occupants to generate income for UNPA to help bridge the financial gap that often occurs between cost of property rehabilitation and sale of property. To discuss a potential donation, please contact Joanne Stewart, UNPA Executive Director at (315) 476-5228.

* Fair market value of appreciated real estate must be determined with a qualified appraiser. There are specific IRS requirements for such appraisals and for reporting gifts on your tax return. Please check with your own financial and legal advisors before taking any action on the above.

WARNING ABOUT A POTENTIAL FIRE HAZARD!

This is one of those messages that if you didn’t send it, rest assured someone you know will suffer for not reading it. The original message was written by a lady whose brother and his wife learned a hard lesson this past week. Their house burned down … nothing is left except ashes. They were sick when they found out the cause of the fire. The insurance investigator sifted through the ashes for several hours. He had the cause of the fire traced to the master bathroom. He asked what was plugged in the bathroom. She listed the normal things … curling iron, hair drier, etc. He kept saying to her, "No, this would be something that would disintegrate at high temperatures." Then she remembered she had a plug-in air freshener in the bathroom. The investigator said that was the cause of the fire. He said he has seen more home fires started with the plug-in type room fresheners than anything else. He said the plastic they are made from is a thin plastic. He also said that in every case, there was nothing left to prove that it even existed. When the investigator looked in the wall plug, the two prongs left from the plug-in were still there. The lady said the plug-in had a small night-light built in it. She said she had noticed that the light would dim and then finally go out. Shewould walk into the bathroom a few hours later, and the light would be on again. The investigator said that the unit was getting too hot, and would dim and go out rather than just blow the light bulb. Once it cooled down it would come on. That is a warning sign. The investigator said that personally he would not have any type of plug-in freshening device in his house because he has seen too many homes that have been burnt down due to them.

HEARD IT THROUGH THE GRAPEVINE
If you hear of a house coming up for sale, or if you hear of someone who wishes to live in, and buy a home in, the university neighborhood, by all means call UNPA at 476-5228. We will network with real estate agents and share information about what help is available from UNPA and other organizations.

UNPA’s goal is promotion of owner occupancy. At this time, most "mint condition" houses in our neighborhood are selling very well. The challenge now, as when UNPA was formed in 1990, is bring back into owner occupancy some of the houses that have been rental properties. We are particularly interested in hearing from rental property owners who are ready to sell a house in the area. There are several blocks in the area that will benefit from the return of two or three homes to owner occupancy. With that change, they can join may other blocks that have the balance of families and students that many of us appreciate about the neighborhood.

We look forward to hearing from you.