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March 31, 2009

hud appraiser, hud appraisal

Regulatory Barriers Clearinghouse
Breakthroughs Newsletter
March 2009
This year's second edition of Breakthroughs has just been
posted on the Regulatory Barriers Clearinghouse (RBC)
website. In this issue, you'll read about legislation adopted
by Texas to mitigate gentrification, reuse of historic mill
sites in Massachusetts, and a workforce housing project in
Montgomery County, Maryland.
Check out the March issue of Breakthroughs to see how...
o The Homestead Preservation Act adopted by Texas can help
communities mitigate negative effects of gentrification;
o Communities in Massachusetts are redeveloping historic mill
sites for residential and mixed-use purposes; and
o A workforce housing program in Montgomery County,
Maryland is increasing affordable housing options for county
Again, you can read or download the current issue
at www.huduser.org/rbc/newsletter/vol8iss2_1.html. If you have
similar stories that you think would help others, we'd like to
know about them. Call us at 1-800-245-2691, option 4, or send
us an email at rbcsubmit@huduser.org. Who knows, we may
even highlight your community's efforts in a future issue of

This message was forwarded to you by the Regulatory
Barriers Clearinghouse eList (rbc@huduser.org) because
you had expressed an interest in affordable housing and
regulatory reform. If you do not wish to receive these
occasional messages, send an email from your account to
 rbc@huduser.org with the word "unsubscribe" in the

hud appraiser, hud appraisal

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This edition of e-notes points you to Architectural Lighting’s

Dear Readers,

This edition of e-notes points you to Architectural Lighting’s March issue, which examines daylighting strategies from a lofty perspective—that of the high-rise office tower. This uniquely American building typology has defined the skylines of New York, Chicago, and other notable cities. But its evolution as a building type has not been determined solely by architectural influences. Economics, zoning regulations, cultural expectations, and, yes, light, have played major roles in shaping skyscrapers over time. The three projects discussed in this issue—the New York Times’ headquarters, the Hearst Tower, and One Bryant Park—exemplify a new generation of tall buildings, the product of emerging design trends, architectural and lighting technologies, attitudes toward sustainability, and complexities of building, lighting and energy codes. Each building responds to a particular set of project criteria and represents a diverse set of solutions, but taken as a group, the lessons they offer are universal.

Keeping with the sustainable theme, the March issue also examines how the LEED process affects lighting, the benefits of physical modeling daylight analysis, and how load shedding can contribute to energy efficient building approaches.

There is also a new blog post from Jim Benya discussing his attendance at the Strategies in Lighting Conference in late February. And I also invite you to take a look at the comment exchange from his Feb. 13, 2009, post: “At Long Last - the Model Lighting Ordinance (MLO).” The public review comment period for the MLO closes on April 10, 2009. The MLO along with comment review forms and instructions can be downloaded from the International Dark Sky Association’s dedicated web page.

I’d also like to take this opportunity to let readers know about this year’s A|L Light & Architecture Design Awards. The deadlines for project submissions are May 13 (regular entry) and May 18 (late). Click here for an overview of the program and information about online registration:

So read on—excellence in lighting design awaits you.

Elizabeth Donoff

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March 30, 2009

Internet Crime

2008 IC3 Annual Report graphic
Internet Crime
Complaints and Losses on the Rise
More than $264 million was reported lost last year in complaints to the FBI about online scams and fraud schemes. Story



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Lessons Americans can learn from the housing and urban
development experiences of Asian nations is the theme of
the symposium in the most recent issue of Cityscape. The
symposium, guest-edited by Alven Lam, focuses on
development successes and failures related to housing in
Singapore; land takings in the United States, China, and
Vietnam; and volunteerism and community involvement in
third world housing. Links to the individual articles of
the symposium are:
o Reinventing Highrise Housing in Singapore, Belinda Yuen
o Land Takings in the Private Interest: Comparisons of
 Urban Land Development Controversies in the United
 States, China, and Vietnam, Annette M. Kim
o Enabling the Voluntary Sector in Third World Housing,
 Sukumar Ganapati
Refereed papers include articles by Philip J. Cook on
 Crime Control in the City; by Jordan Dentz, Isabelina
Nahmens, and Michael Mullens on Applying Lean Production
 in Factory Homebuilding; and by Sumit Agarwal and
Souphala Chomsisengphet on the Role of Personal
 Bankruptcy Exemptions Laws on Mortgage Availability.
Other contributions to this issue include a policy brief
by John Comeau that describes recent changes to
 Conforming Loan Limits; A Note on Data Preparation
 Procedures for a Nationwide Analysis of Urban Form and
 Settlement Patterns by Robert N. Renner, Selma Lewis,
John I. Carruthers, and Gerrit-Jan Knaap; an exploration
by Mike Blanford on Insulating Concrete Forms as an
alternative to foundation and above- grade walls; and a
discussion by Alastair McFarlane, Edward Szymanoski, and
Kurt Usowski on The Impact of the HOPE for Homeowners
 Program Rule.
A link to the complete issue of Cityscape is available
at www.huduser.org/periodicals/cityscpe/vol11num1/index.html.
Past issues are also available for downloading, free of
charge, at www.huduser.org/periodicals/cityscape.html.
Printed copies are available for a nominal charge by
calling HUD USER at 800-245-2691, option 1.
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April 23-24, 2009
Millennium Biltmore Hotel - Los Angeles




John C. Murphy > Partner
Program Co-Chair and Speaker

"Ethics - Where are the Boundaries?
From Conflicts of Interest to Aggressive Advocacy"

Douglas J. Evertz > Partner

"Challenges to the Take - Strategies From the Trenches"



Since the Supreme Court’s ruling in Kelo, eminent domain professionals who previously practiced in relative anonymity have found themselves thrust into the limelight of legislation and public opinion.

With an advanced approach to important topics like the future of eminent domain practice and big projects, public utility rights of way, valuation of billboards, income and property tax implications, trial tactics, appeals, and ethical considerations, our experienced faculty will lead you into the next age of eminent domain.

This Conference brings you not only expert speakers, but also continuing education credit and invaluable networking opportunities. You’ll gain practical insights, tools and strategies to help you deal with the complex issues you face throughout the year.

Educational and in-depth, this is the must-attend event for anyone involved in or impacted by eminent domain issues in California.

Whether you are a private practitioner, government employee, developer, planner, appraiser, environmental representative or real estate broker, this is one Conference you can’t afford to miss!

Click here for complete conference details.



CLE is offering recipients of this e-mail a $100 discount (in addition to any other discounts). Code: DLJM.


Call 800.873.7130.


Millennium Biltmore Hotel
506 South Grand Avenue
Los Angeles, CA 90071

For reservations, contact Community World Travel - 888.724.0500 - www.cletravelinfo.com.


Copyright © 2009 Luce Forward. All rights reserved.
Request Removal From Mailing List
Terms of Use

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March 28, 2009

the 1004MC:

February 03, 2009

First Impressions of the 1004MC: Part 5 - "Closing Thoughts"

Having completed several "1004MC Workshops", read numerous forum posts and talked to many appraisers, one thing is clear, confusion reigns! Most do not see the merits of the 1004MC. They see the problems, including opposing opinions, various interpretations, and few immediate solutions given the limitations of their MLS data services.

Benefit_timeAt question is not the concept, but rather the execution. While many believe this to be a step in the right direction of mandating a standard for measuring trends, the format is a "time-consuming problem" versus a "problem solving solution". The unintended consequences over-shadow any potential benefit.

The 1004MC is not about medians, totals, percentages, and ratios, no more than it is about the neighborhood. The form is about "the collateral" and "the trends related to the collateral". While market conditions and neighborhood trends are important, the trends of properties similar to the subject are critical.

Lenders are not making a loan to the market area or the neighborhood; they are making a loan on the subject property, the collateral. As goes the trend for properties similar to the subject, as goes the value of the collateral securing their loan.

Highs and lows

The 1004MC gets an "A" for effort and the focus on the subject verses the neighborhood, "C" for layout and "F" for format and function. I understand the need to "standardize trend analysis", however, the format is such that the numbers may mislead more than "make transparent".

It does get a high mark for two factors, first for attempting to replace opinion with statistical fact, limiting subjectivity and secondly, it requires the analysis to focus on "competitive to the subject from the buyer's perspective", removing the influence of lesser or better properties in the neighborhood that do not compete with the subject.

Click here to continue reading . . .

This has always been a problem with the Neighborhood Section of the URAR, "all ships do not rise and fall with the tide ...equally", and therefore neighborhood trends may or may not represent trends for the subject property. This is especially true in heterogeneous areas.

The low grades come from a variety of issues (many identified in prior parts of this series) and a few that I will revisit here.

  • Trends are only valuable when placed in perspective as to the events (employment, credit, migration, consumer confidence, etc.) that influenced the trend. Without tying the catalyst to the data, there is no basis for what caused the trend or its future direction. Who cares about what happened last year, if it will not be repeated this year? The 1004MC does not address current "market forces" that may influence the trend.
  • "Overall trends" would seem to imply that the "selected trend" requires comparison of the results from the "prior 7-12 months column" to the "current to 3 months column". The market may be stabilizing (as indicated by a combination of similar results in two consecutive periods and improving employment, migration, and credit conditions); however, the indicated "overall trend" will be declining on the 1004MC.
  • The influence of "seasonality" is a required observation, but the 1004MC does not seem to consider that most markets (let alone resort or college towns) are seasonal in nature, with the housing market more active during the spring and summer (March - August) and fewer sales in the fall and winter (September - February), generally attributed to buyers with "school-age children". Higher or lower sales numbers will be posted in some periods, not as a result of positive or negative shifts, but rather family needs. 

The 1004MC - Things to consider

"It's not over until it's over" and I for one do not think, "the fat lady has sung yet" on this one. You can expect amendments to the form or instructions. In the meantime (and until we hear a voice in the rafters), there are several factors to consider.

  • The 1004MC compliments the trends in the URAR Neighborhood section. It does not replace them. The trends for "competitive to the subject", are "a basis" (point of beginning) for the URAR to compare and contrast the subject to the neighborhood. 
  • The focus of the 1004MC is to "document the trend", not doing the math. Do not read too much into DOM vs. CDOM, original list date vs. current list date, original price vs. current price, etc. Stay consistent and the trends will likely be the same.  
  • The phrase "overall trend" implies beginning to end and does not seem to allow for a shift over to consecutive periods. How many months, quarters, periods determine a "shift in the trend" in your market? If "overall" is the only consideration, it could take up to three periods of improving activity before you can report a shift in the trend. Would this be accurate or misleading?
  • USPAP requires you to observe and to communicate to the client in a way that is "not misleading" and that is "credible". While the 1004MC documents "statistics and observations", do not let it replace "good appraisal practices". Trends are, "reflected in the numbers", however the numbers "are influenced" by economic factors (employment, credit, migration, consumer confidence) not considered in the 1004MC.  
  • Revisit the differences between market areas and neighborhoods, homogeneous and heterogeneous, because those differences affect the statistics. Consider how buyers define the neighborhood and competitive to the subject. Go beyond :street boundaries" to reflect on the many factors that shape a neighborhood, such as school zones, economics and physical characteristics of the housing.
  • Virtually all markets are seasonal. Chart 5 to 6 years of "monthly sales data" in your market to observe and document seasonality and be prepared to explain it.
  • The 1004MC is an "underwriting tool" completed by the appraiser, not an appraisal form. USPAP requires you to know the difference and supplement your report to make it meaningful and to avoid being misleading. Sometimes, you will not have enough data to complete the 1004MC.

You will need to develop and addendum to this "addendum" and a "clarification of your scope of work" to communicate what you considered and how you addressed the elements of the 1004MC, including any explanations on the limitations of the data, etc.

"Just the facts ma'am"

Mark Twain said it best, "gather the facts first and distort them as you like". The absence of clear directions for the 1004MC and standards for measuring various elements of the form and its parent, the URAR, remain the primary impediment to producing something credible, the underlying purpose of any appraisal.

The statistics reported in the 1004MC may work well in "balanced market conditions", however, the "reality of realty" is such that the market is rarely in balance/ Real estate is highly dependent on the influence of market forces, especially employment, migration, credit availability and consumer confidence, none of which are factored into the "overall trends".

What you determine as "the neighborhood" will set the stage for the "trends". When the numbers are subject to "selective interpretation" (based on how you define the neighborhood and competitive to the subject), the results can be a function of GIGO - "garbage in, garbage out".

Take the time to segment the data. "If it wouldn't be on your market grid", is it competitive to the subject and should it be in your statistics on the 1004MC?

Author's Note: This is the final installment in the series "First Impressions of the 1004MC", but not likely my final words on the new form. I expect changes and I will have more thoughts and feedback as I present workshops for a la mode, Inc. in 25 cities over the next two months.

For anyone interested, I will be creating a 1004MC Group on The Appraiser's Water Cooler, where we can post questions, raise issues and share ideas. If you are interested in attending one of the 1004MC Workshops, e-mail Kaitlin.Dove@alamode.com or Adam@alamode.com for cities and dates.

AUTHOR:  Patrick Egger is a Certified General Appraiser located in Las Vegas, NV. He teaches continuing education classes on the housing market, appraisal issues for real estate agents and appraisers. He can be reached at lvreqa@cox.net  Look for the new Outside The Boxes category for a collection of Patrick's articles on Appraisal Scoop!

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Curtis D. Harris, BS, CGREA, REB
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State Certified General Appraiser
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Ross Acheson, Acheson Appraisal, Those that can’t do: TEACH!

Ross Acheson, Acheson Appraisal, Those that can’t do: TEACH!
Originally Posted by George Hatch
From an email I got today from Ross Acheson:
We have asked Mr. Robert Murphy, who is in charge of the new 1004MC for FNMA, for some answers. Here they are:

1. How much data is enough for creating statistics?

That will vary with each assignment. You can expand your search area to include more data if that data is representative of your subject’s area. Otherwise either state that there is not enough data or use what you have.
I guess the appraiser should use what he has even if too small to be statistically significant since we all know that the underwriters are not going to accept a statement that there is not enough data to use. Thank you Fannie for the nice non-answer that is of absolutely no help to anyone.

2. Should we use CDOM (Cumulative DOM) or DOM? And for listing price…should it be the original or current price?

Be consistent. Use DOM with current listing price or CDOM with original list price. Note: We believe that DOM with current listing price is preferable.
It is a shame that many MLS systems make it virtually impossible to track DOM based on the current listing price. Additionally, in some markets, many of the real estate brokers change the listing price to equal the contract price once a contract is ratified, which would make the DOM for many of these properties zero using Fannie’s expressed preference…of course, like many other things, Fannie did not think things completely through before they made this statement.

3. When will the FNMA webinar be available on your web-site?

Probably by 3/16/2009
If the webinar is of the same quality as the 1004MC form, it will be of no help to anyone.

4. Why is the List/Price ratio upside down?

We are correcting that in a new version that will be available on our web-site by 3/10/2009.
Nice job proof reading the form before you initially released it.

5. What if there is range pricing (eg. $400,000 - $450,000)?

Use the lower end of the range.
On what basis should the appraiser pick the lower end of the range? Why is this any better than picking the middle or the upper end of the range? Would not a hard rule requiring the appraiser to always pick the low end of the range (no matter the circumstances) lead to misleading analysis?

Once again, Fannie demonstrates total cluelessness.

It is apparently much easier to draft and require the use of a form that is useless in most cases and will be misleading in many cases than to require lenders to use competent appraisers who write good reports which contain a properly done market analysis.

Ross Acheson, Acheson Appraisal, Those that can’t do: TEACH!

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March 27, 2009


The 32-year-old decedent was visiting his sister who lived in an affordable housing apartment unit located in West Palm Beach when he was shot and killed. The defendants in the case were the owner and management company for Saddlebrook Apartments where the shooting occurred. The plaintiff alleged that the defendants were on notice that the apartments were located in a high crime area ...
- from The Florida Jury Verdict Review and Analysis (142826) Palm Beach County
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March 26, 2009

Dear AIR Member:
In an effort to continue delivering meaningful products and services to our members, the AIR will soon release the much anticipated AIR Commercial Real Estate Forms User’s Manual. This manual was co-written by Rick Riemer, the AIR’s forms attorney and the person most responsible for writing, revising and modifying the AIR forms during the past 15 years, and John Pagliassotti, who sits on the forms committee with Mr. Riemer and has been in the commercial real estate industry for 25 years as a broker, asset manager and owner.
The User’s Manual was created as a reference tool to help our forms users interpret and understand the forms.  Every real estate professional who uses the AIR forms is going to want this book on their desk.  Think of this manual as the print version of the Contract Forms Review seminar.  The manual, however, goes into much more detail than does the seminar.
The manual includes all of the leases and related addenda and every paragraph in each of the forms is broken down and explained in layman’s terms complete with highlights, notes and practice tips for landlords, tenants, brokers, property managers and attorneys.
The manual will help you provide your clients with a much higher level of service when it comes to using and interpreting the AIR forms.  Take a look at the example in the enclosed flyer (below and attached).  Were you aware that there is actually a strategy to filling in the Agreed Use portion of the lease?  I can assure you, your clients will find this information to be critical.  Once you have a copy of the AIR Commercial Real Estate Forms User’s Manual in your library you will be equipped to answer your clients’ questions about the AIR forms with confidence and give them excellent advice by utilizing the information provided in the manual.
The manual also contains a Glossary of Defined terms. All of the defined terms from the leases and addenda are listed in the glossary along with their definitions and the paragraph where they first appear in the forms. For instance, when you find the word “Option” in the lease, you will no longer have to search through the lease to find its definition…all you’ll have to do is turn to the glossary.
The manual will go to print on April 7th and be ready for shipping on April 22nd.  We are currently taking “pre-print” orders at a discounted rate.  If you order now you can enjoy the “pre-print” price of only $99 ($119 for non-members).  Once the manual is printed, the cost for members will be $139 ($149 for non-members).  Either way, it is a low price to pay for what may be the greatest resource in your professional library.
To order your copy of the AIR Commercial Real Estate Forms User’s Manual, please click on the following link Forms Manual Order Form and fax your order to (213) 687-8616 or email to airformsmanual@airea.com.
Thank you,

Tim Hayes
Executive Director

Coming in Spring 2009
“AIR Commercial Real Estate Forms:
A User’s Manual
Volume I - Lease Forms and Addenda©
A Step by Step Guide to Understanding and Using the AIR Lease Forms
and Addenda, Complete with Extensive “Practice Tips”, “Notes” and
“Highlights” for Each Paragraph of Every AIR Lease Form and Addenda.
·        Written by those who write, review, update and provide training for all the AIR Forms.
·        Each and Every paragraph from all 8 lease forms, 3 sublease forms and 15 lease addenda is broken down with either: “Notes” explaining the concepts of the more complex paragraphs; “Highlights” summarizing the lengthier paragraphs or “Practice Tips” providing helpful and practical tips for landlords, tenants and brokers.
·        Providing both a legal and transactional perspective.
·        A critical tool and resource for all commercial real estate professionals.
·        If you use the AIR Forms or represent clients who do, this manual is a must.
Order now and save!
Member Pre-Publication Price $99.00* (regularly$139.00)
Non Member Pre-Publication Price $119.00* (regularly $149.00)
Pre-Publication Price is effective now until April 7, 2009.
Plus applicable sales tax and shipping & handling.
Fax Order to (213) 687-8616 or email to airformsmanual@airea.com
Sample (taken from AIR’s Standard Industrial/Commercial Single Tenant Lease-Net):
1.7        Agreed Use: <Agreed Use                                                 > 
(See also Paragraph 6)
The purpose for which the Lessee intends to use the Premises is filled in here. The descriptions can vary from very generic, (i.e. general warehouse) to extremely specific (e.g. the warehousing, repair, assembly and distribution of automotive parts). The Lessor is NOT warranting that the Agreed Use is, in fact, a use for which the Premises can be legally used.  The Lessor is only saying that such a use, if otherwise legal, is okay with him.  A potential Lessee retains the responsibility of determining whether or not its intended use is legal.  See also Paragraph 2.3.
Practice Tips:
These descriptions can have an impact on the Lessee’s ability to sublet the Premises. In the event a description is very specific, the Lessor can make the argument that only a subtenant with the same exact use will be approved for a sublease, despite the provisions of Paragraph 6.  Typically Lessees attempt to be as generic as possible and Lessors as specific as possible. That being said, in the event that there is a unique feature to the Lessee’s use, then it should be included as a part of the description.
A PRER LLC., publication, published with the approval of the AIR Commercial Real Estate Association.
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March 24, 2009

Dear Subscriber,

The March 2009 edition of National Outlook has been posted at HousingEconomics.com. You may access this item by clicking here.


Richard Curren, Editor

HousingEconomics.com - News and Alerts


NAHB · 1201 15th Street, NW · Washington, D.C. 20005-2800
202-266-8476 · 800-368-5242 (x8476) · Fax: 202-266-8512 · editor@nahb.com

To ensure delivery of 'Housing Economics News and Alerts', please add 'editor@nahb.com'
to your email address book. If you are still having problems receiving our newsletter, see our whitelisting page for more details: http://www.commpartners.com/website/white-listing.htm

If you would like to unsubscribe from this e-mail, please click here

1201 15th Street NW, Washington, DC 20005-2800

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Site Selection magazine

Site Selection
March 2009

Complimentary (12 Issue Digital Subscription)
Complimentary (Single Issue)
Site Selection magazine is an internationally circulated business publication covering corporate real estate and economic development. Published six times a year by Conway Data Inc., the magazine reaches more than 43,000 qualified subscribers with timely news, information and analysis on significant industrial facility expansion activity and site location trends worldwide. Subscribers are high-level corporate executives with decision-making responsibility for business locations.


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2009 CCLR Trainings

2009 CCLR Trainings

Experience is the best teacher. For nearly a decade, CCLR has been assembling the most experienced redevelopment professionals in California for our faculty. Our trainings are carefully prepared with case studies drawn from our own professional experience. Focused on real-world realities of redevelopment, our trainings are designed to provide you with the tools, techniques, and resources required to bring projects in on-time and on-budget.

Los Angeles
Wednesday, May 6th

8:00am - 4:00pm
Center for Healthy Communities
The California Endowment
1000 North Alameda Street 
Map >>

Register for Los Angeles
This workshop is designed to meet the needs of project managers involved in redeveloping vacant, blighted or environmentally impacted properties. By limiting class size, trainings are ideal for those interested in direct counsel from the workshop speakers. This workshop program is our most popular and sells out quickly, so please register online early!
    Curriculum Includes:
  • Regulatory and Legal Framework
  • Phase I Environmental Site Assessment
  • Phase II Environmental Site Assessment & Cleanup
  • Environmental Insurance
  • Financial Resources
  • Establishing a Redevelopment Team
  • Case Study

Tuition: $100 Non Profit, $200 Government, $350 Private
CCLR is committed to helping community-based organizations by providing scholarships to reduce the cost of the workshop. Please call to inquire about our Wells Fargo Scholarship program.

CCLR's workshops are approved for 6 MCLE and 6 Planning credits!

To register, and for more information about curriculum, please visit our website www.cclr.org/brownfields_101.htm or call 415.398.1080 x104.

Generously sponsored by:
Bank of the West
Union Bank of California

appraiser appraisal
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March 20, 2009

BOMA BEEP Webinars

BOMA International and Buildings Magazine are pleased to present


BEEP Seminar 4:

No– and Low–Cost Operational Adjustments to Improve Energy Performance

Thursday, April 8, 2009
2:00 – 4:00 p.m. ET

  • Identify no– and low–cost operational adjustments
  • Quantify the financial returns of operations and maintenance measures
  • Identify how and when to use metering and data loggers
  • Describe how to make the most of your energy management and building automation systems
  • Explain why and when to commission existing buildings


Joe Havey

Craig Sheehy is President of Envision Realty Services, LLC, one of the largest LEED Consulting companies in the nation with 38 buildings and over 13 million square feet of office space under contract in 2008. Craig was responsible for the implementation of Thomas Properties Group $500,000,000 national Green Building Fund and has begun a new environmental project, Greening Your Building Toward the Bottom Line. Craig's first building, the Joe Serna Jr. – Cal/EPA Headquarters Building in Sacramento, CA, was recognized as one of the most energy efficient high-rises in the U.S. through Energy Star and was awarded the Platinum Certification through the U.S. Green Building Council´s LEED–EB program.

Register for Webinars Here

Registration Fees

Members:          $125
Non-Members:  $175

What is BEEP?

BEEP is an innovative six–course program designed to teach commercial real estate professionals how to reduce energy consumption and costs with proven no–and low–cost strategies and resources for optimizing equipment, people and practices.

The BOMA Energy Efficiency Program (BEEP) program is brought to you by the BOMA Foundation in partnership with the EPA's ENERGY STAR® Program.

© Copyright 2009 BOMA International

Unsubscribe from receiving email, or change your email preferences.

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California Debt and Investment Advisory Commission (CDIAC)

California Debt and Investment Advisory Commission (CDIAC)



There's still room in our upcoming spring classes. Register soon!



April 30 - May 1, 2009

Crowne Plaza Redondo Beach and Marina, Redondo Beach, California

Cost: $250

Seminar Topics Include:

  • Determining Debt Capacity
  • Debt Management Policy and Plan of Finance
  • Structuring the Financing
  • Understanding the Role of Credit Ratings
  • The Legal Documents
  • Marketing and Pricing an Issue
  • Investing Bond Proceeds
  • Issuer Roles and Responsibilities Before the Closing


May 14-15, 2009

Sheraton Mission Valley San Diego, San Diego, California

Cost: $250

Seminar Topics Include:

  • Bond Documents: Critical to Managing Debt Service
  • Issuer Roles and Responsibilities
  • The Roles and Responsibilities of the Trustee
  • Continuing Disclosure Reporting/Compliance Monitoring
  • Tax Certificate Arbitrage Calculations and Rebate
  • Refunding an Issue
  • Managing Ongoing Responsibilities for Variable-Rate Financings and Interest Rate Swaps

To view agendas for CDIAC's 2009 classes or to register, visit our website at the following link:

CDIAC 2009 Seminars


If you have any questions, please email CDIAC Education or contact the Commission at (916) 653-3269. If you would like to be added to additional mailing lists, need to update your subscriber information or would like to be removed from this mailing list, please select the appropriate tab in the header above.

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California Debt and Investment Advisory Commission (CDIAC)

California Debt and Investment Advisory Commission (CDIAC)




Fall 2009 Seminars




September 14, 2009

La Costa Resort & Spa, Carlsbad, California

Please see The Bond Buyer’s website for registration information at www.bondbuyer.com/conferences.html.


Now open for registration:



September 24, 2009

Ziggurat Building, West Sacramento, California


October 1-2, 2009

Concord Hilton, Concord, California


October 8-9, 2009

Oakland Marriott, Oakland, California


October 22-23, 2009

Wyndham San Jose, San Jose, California

For more information about our fall seminars or to register, visit our website at the following link:

CDIAC 2009 Seminars


If you have any questions, please email CDIAC Education or contact the Commission at (916) 653-3269. If you would like to be added to additional mailing lists, need to update your subscriber information or would like to be removed from this mailing list, please select the appropriate tab in the header above.

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March 16, 2009

Department of Consumer Affairs license lookup web page.

Welcome to the Department of Consumer Affairs license lookup web page. You may use this page to look up a company or individual who has a license issued by the Department of Consumer Affairs for the professions listed.

To find a company or individual, select a license type from the list below. Then you may enter certain information to narrow down the search, such as a name, city or county.




Individual Licenses Licensed Firms Out-of-State Licensees
Visit the agency's website: http://www.dca.ca.gov/cba/



Visit the agency's website: http://www.acupuncture.ca.gov/


Visit the agency's website: http://www.cab.ca.gov/


Visit the agency's website: http://www.dca.ca.gov/csac/


Auto Repair Dealers Smog Check Station
Brake And Lamp Adjusters Smog Technicians
Brake Station
Lamp Station

Visit the agency's website: http://www.bar.ca.gov/


Individual Licenses Licensed Establishments

Visit the agency's website: http://www.barbercosmo.ca.gov/


Licensees and Registrants

Visit the agency's website: http://www.bbs.ca.gov/


Apprentice Embalmer Cemetery Salesperson Embalmer
Cemetery Broker Certificate Of Authority - Cemetery Funeral Director
Cemetery Broker Additional Cremated Remains Disposer Funeral Establishment
Cemetery Broker Branch Crematory
Cemetery Manager Crematory Manager

Visit the agency's website: http://www.cfb.ca.gov/


Chiropractors Corporation Referral Service

Visit the agency's website: http://www.chiro.ca.gov/


By Home Improvement Salesperson Name By Home Improvement Salesperson Registration By contractor's business name By contractor's license number By personnel name
Visit the agency's website: http://www.cslb.ca.gov/


Certified Shorthand Reporter

Visit the agency's website: http://www.courtreportersboard.ca.gov/


Additional Office Fictitious Name Oral Conscious Sedation Certification
Conscious Sedation Permit General Anesthesia Registered Provider
Dental License Mobile Dental Clinic Special Permit
Facial Cosmetic Surgery OMS Permit

Visit the agency's website: http://www.dbc.ca.gov/


Registered Dental Assistants and Hygienists

Visit the agency's website: http://www.comda.ca.gov/


Service Contract Sellers and Administrators
Service and Repair Dealers

Visit the agency's website: http://www.bear.ca.gov/


Professional Engineers and Professional Land Surveyors

Visit the agency's website: http://www.pels.ca.gov/


Professional Geologists and Geophysicists

Visit the agency's website: http://www.geology.ca.gov/


Hearing Aid Dispenser

Visit the agency's website: http://www.dca.ca.gov/hearingaid/


Home Furnishings Licensees

Visit the agency's website: http://www.bhfti.ca.gov/


Landscape Architect
Visit the agency's website: http://www.latc.ca.gov/


Fictitious Name Permit Medical Doctor and Special Faculty Permit
Visit the agency's website: http://www.mbc.ca.gov/



Visit the agency's website: http://www.mbc.ca.gov/allied/midwives.html


Visit the agency's website: http://www.naturopathic.ca.gov/


Occupational Therapists, Occupational Therapy Assistants

Visit the agency's website: http://www.bot.ca.gov/



Visit the agency's website: http://www.optometry.ca.gov/


Osteopathic Physicians

Visit the agency's website: http://www.ombc.ca.gov/


Clinic Permit Licensed Sterile Compounding Veterinary Food-Animal Drug Retailer
Designated Representative (Exemptees) Nonresident Sterile Compounding Wholesalers
Drug Room Pharmacies
Hypodermic Needle and Syringe Pharmacy Technician
Intern Pharmacist Registered Pharmacist

Visit the agency's website: http://www.pharmacy.ca.gov/


Physical Therapists and Physical Therapist Assistants

Visit the agency's website: http://www.ptb.ca.gov/


Physician Assistants

Visit the agency's website: http://www.pac.ca.gov/


Doctor of Podiatric Medicine Fictitious Name Permits

Visit the agency's website: http://www.bpm.ca.gov/


Professional Fiduciary

Visit the agency's website: http://www.fiduciary.ca.gov/


Psychiatric Technician

Visit the agency's website: http://www.bvnpt.ca.gov/


Psychologist (incl. Reg. Psych. and Psychological Asst.)

Visit the agency's website: http://www.psychboard.ca.gov/


Out of State Dispenser Registered Dispensing Optician
Registered Contact Lens Dispenser Registered Spectacle Lens Dispenser

Visit the agency's website: http://www.mbc.ca.gov/allied/rdo_program.html


Registered Nurses and Continuing Education Providers

Visit the agency's website: http://www.rn.ca.gov/


Respiratory Care Practitioner

Visit the agency's website: http://www.rcb.ca.gov/


Alarm Company Firearm Training Facility Proprietary Private Security Officer
Alarm Company Employee Firearm Training Instructor Repossessor Agency
Alarm Company Qualified Manager Locksmith Company Repossessor Agency - Employee
Baton Training Facility Locksmith Company - Employee Repossessor Agency - Qualified Manager
Baton Training Instructor Private Investigator Security Guard
Firearm Permit Private Patrol Operator

Visit the agency's website: http://www.bsis.ca.gov/


Licensees Providers

Visit the agency's website: http://www.slpab.ca.gov/


Visit the agency's website: http://www.guidedogboard.ca.gov/


Business Employees

Visit the agency's website: http://www.pestboard.ca.gov/


Veterinarians/Veterinary Hospitals

Visit the agency's website: http://www.vmb.ca.gov/


Registered Veterinary Technicians

Visit the agency's website: http://www.vmb.ca.gov/


Licensed Vocational Nurse

Visit the agency's website: http://www.bvnpt.ca.gov/

If you would like to notify us of technical difficulties while using this web site, please forward them to the webmaster@dca.ca.gov .

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The Morality of Acquiring Commercial Real Estate

16 Mar

The Morality of Acquiring Commercial Real Estate

The latest in the line of businesses seeking government handouts is the commercial real estate industry (see following WSJ article “Knock on ‘Opportunity’: Sharp Losses”). Where should the government’s demarcation line be for underwriting the bad loans, mortgages and losses permeating the commercial real estate industry? How does it differentiate between who to help and who not to help?

The answer lies within the morality of the action. With very few exceptions, all commercial property bought and financed within the range of a current 5% capitalization rate was either a greedy and/or foolish transaction. These investors, like the management team at General Motors, created a bad business model whose continuing existence should not be supported. One of the strongest investment tenets in existence is “Don’t throw good money after a bad investment.” The marketplace will make all the appropriate adjustments.

Following are articles authored by NetGain that relate to the morality of acquiring commercial real estate:

19 Feb 2007: Is 5% a Safe Cap Rate?

13 Jan 2009: Minimizing Income Property Investment Risk in 2009

02 Dec 2008: Hara-Kiri for the Income Property Investor

09 Jul 2008: Income Property and Buying Right in a Downturn

25 Jun 2008: A Real Estate Investor Plan for a Serious Economic Downturn

Read the WSJ Article: Knock on ‘Opportunity’: Sharp Losses

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Ellie Mae's New HVCC-appraisal, appraiser

 Ellie Mae's New HVCC-appraiser, appraisal

Ellie Mae's New HVCC-Compliant Appraisal Services Provide Fast and Easy Way to Achieve Compliance With New Guidelines

New Home Valuation Code of Conduct regulations in effect on May 1, 2009, require mortgage professionals to change the way they do business with appraisers

PLEASANTON, CA—March 13, 2009—Ellie Mae, the leading provider of loan processing software for mortgage bankers, brokers and other third party originators, announces its HVCC-Compliant Appraisal Services, a new program designed to help banker, lender and broker clients to fully comply with the Home Valuation Code of Conduct (HVCC) that goes into effect on May 1, 2009.

"The Home Valuation Code of Conduct's guidelines will require mortgage professionals to change the way they do business with appraisers," says Ellie Mae's senior vice president, Richard Roof. "After May 1, originators who fail to comply with the HVCC may be faced with penalties, the inability to sell loans, or in the case of brokers, will be unable to submit their loan applications to the wholesale lender of their choice."

Ellie Mae's HVCC-Compliant Appraisal Services will leverage technology enhancements, partnerships with appraisal management companies (AMCs), and direct connection via the ePASS Network to facilitate HVCC-compliant ordering and delivery of appraisals for Ellie Mae's banker, broker and lender clients, who together originate 50 percent of the nation's third-party origination loan volume, and 25 percent of the nation's mortgages each year. With the HVCC-related enhancements to the Encompass Mortgage Management Solution, companies gain the ability to control which staff members can electronically order appraisals, create rules based on property location and loan type, and create and manage their own appraisal panels. Users will also be able to connect directly with top appraisal management companies that are integrated to the ePASS Network.  Ellie Mae is working with correspondent and wholesale lenders to incorporate solutions that enhance appraisal portability and simplify lender re-certifications. 

The Home Valuation Code of Conduct was established by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency (formerly OFHEO). In short, the HVCC sets forth a series of guidelines that govern appraisal-related activity among mortgage companies for loans that are sold to Fannie Mae and Freddie Mac, in an effort to reduce the risks associated with the appraisal process.  Most of the HVCC's stipulations are focused around ensuring objectivity in ordering real estate appraisals by brokers and correspondent lenders. Fannie Mae and Freddie Mac will not accept loans on or after May 1, 2009 that do not adhere to the Home Valuation Code of Conduct.

Ellie Mae's HVCC-Compliant Appraisal Services will be comprised of the following:

  • Encompass product enhancements that enable correspondent lenders to manage and administer their HVCC policies, manage their own appraisal panel, compliantly order appraisals from appraisal management companies integrated into Encompass, and access all appraisal related documents and information via the Encompass eFolder.
  • Partnerships with the industry's most widely approved appraisal management companies, as well as appraisal management companies that are successfully targeting the third party originator market.
  • A "black box" appraisal center that will enable "blind" HVCC-compliant appraisal ordering for wholesale lenders and their mortgage brokers, enhancing appraisal portability and simplifying lender re-certifications.
  • New automated valuation models and additional valuation services, available to all originators at the point of sale through the Encompass network, to help assure that loans are properly pre-qualified and targeted.

Several of the industry's most widely accepted and leading appraisal management companies have partnered with Ellie Mae to participate in the HVCC-Compliant Appraisal Services program, including First American eAppraiseIT, ServiceLink, Finiti, StreetLinks, and AppraiserLoft.  Three appraisal management companies that are also participating are also already integrated into the Encompass network: CBCInnovis, DartAppraisal.com and Nations Valuation Services.  Ellie Mae plans to continue adding appraisal management companies on a case-by-case basis. 

Roof adds, "Ellie Mae's HVCC-Compliant Appraisal Services alleviate the burden of compliance by providing mortgage professionals with the tools to quickly, easily and electronically procure appraisals according to Home Valuation Code of Conduct guidelines, at no additional cost to the mortgage banker, lender or broker."

About Ellie Mae, Inc.
Ellie Mae is an award-winning provider of software and services for the mortgage industry, offering comprehensive business solutions for mortgage bankers, mortgage brokers and lenders. The company's key offerings include the flagship Encompass® Mortgage Management Solution, Encompass CenterWise™ and Encompass Closer. More than 120,000 mortgage professionals use the Encompass Mortgage Management Solution, including two-thirds of the nation's top 300 brokers. Ellie Mae, recipient of the prestigious Inman Award as the most innovative company in the mortgage industry, is recognized for developing technology that links the many parties critical to the mortgage origination industry through its patented ePASS® Network. One quarter of the nation's almost $2 trillion in new mortgages originated every year pass through the ePASS platform, enabling mortgage companies to easily and securely conduct electronic business transactions with dozens of leading lenders and more than 2,000 settlement service providers. Ellie Mae is also the parent of Online Documents, the industry's leading provider of flexible, compliant electronic mortgage documents and related services for the mortgage industry. Ellie Mae was founded in 1998 and is based in Pleasanton, California. To learn more about Ellie Mae, visit www.EllieMae.com or call 877.355.4362.


© 2009 Ellie Mae, Inc. All rights reserved. Ellie Mae, Encompass, and ePASS (patent No. 7,444,302) are registered trademarks and Encompass CenterWise and Encompass Closer are trademarks of Ellie Mae, Inc. in the United States.

Rosalie Berg
Strategic Vantage Marketing & Public Relations
(305) 971-5352

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March 14, 2009

Nossaman E-Alerts

Nossaman E-Alerts

Print this page. Email this page to a friend.

Overly Broad Resolution of Necessity = Victory for Property Owner?

Authored By: David Graeler , Bradford B. Kuhn

Likely the worst case scenario a condemning agency can face is for it to pass a resolution of necessity, file a condemnation action, obtain prejudgment possession, build its improvement, and subsequently lose in court on a property owner's right to take challenge. The specter of the agency losing a vital public project by being ordered to surrender possession of property that it spent millions of dollars improving is enough to send shudders through even the most seasoned right-of-way professionals.

This is precisely what the City of Stockton (City) faced when the Court of Appeal in City of Stockton v. Marina Towers LLC, et al. (February 13, 2009, C054495) __ Cal.App.4th __, held that the project description in the resolution of necessity adopted by the City was so vague, uncertain and sweeping in scope that it failed to specify the "public use" for which the City sought acquisition of the property. That the City's resolution of necessity was stated so broadly was not surprising, as the City did not decide how it was going to use the property until after it decided to condemn it. According to the Court of Appeal, however, it wasn't just unsurprising, it was improper and qualified as a gross abuse of discretion, which defeated the City's right to take.

Now what? The property owner, Marina Towers LLC (Marina), argued that the City's action should be unconditionally dismissed, and the property, which had since been put to public use, should revert back to Marina. The City argued for a conditional dismissal, which would enable it to pass a new resolution of necessity while maintaining possession of the property. The Court of Appeal sided with the City given that an unconditional dismissal would cause a tremendous waste of taxpayer money and massive disruption in what had become a legitimate public use of the property. However, the City was ordered to pay Marina's litigation costs, including attorneys' fees.

Factual Background:

Marina's property in downtown Stockton was part of the City's revitalization plan, which called for the eventual development of private apartments on a portion of Marina's property. After preparing a draft environmental impact report, the City proceeded with a hearing on whether to adopt a resolution of necessity to condemn Marina's property. At the hearing on the resolution, Marina argued that there was no defined project that necessitated the taking of its property for a public use, and there was no identification of a specified public project that was the object of the proposed taking. Regardless, the City Council unanimously passed a resolution of necessity to acquire Marina's two parcels.

The City then filed a complaint in eminent domain less than a week after the resolution of necessity was adopted, and it also sought an order for prejudgment possession. Marina answered by raising a number of affirmative defenses including that the proposed project was not a public use. Marina also contended that the resolution of necessity was defective on its face because it failed to sufficiently identify the public use for which the property was to be condemned. Marina moved to stay the order for prejudgment possession, but the trial court denied the motion, finding that Marina had not established a probability of prevailing on its objections.

Three months after the resolution was passed, the City Council approved an EIR that called for a ball park and residential apartments on the property. The City subsequently decided to designate the west parcel of the property for public parking, and the east parcel for a ball park. By the time trial commenced on Marina's objections to the City's right to take, the projects had been built. The City moved for a nonsuit at the conclusion of Marina's opening statement at the trial over Marina's right to take. The trial court granted the City's motion. At the valuation phase of trial, the jury found that Marina was entitled to just under $2 million as compensation for City's acquisition of the property. Marina appealed.

Holding on the City's Right to Take:

On appeal, the Court noted that the City's resolution of necessity described the project as the "acquisition of additional land" in "conjunction with potential development." According to the Court of Appeal, the City's defined "project" was essentially the condemnation itself. In fact, the City conceded that it did not have any specific purpose in mind when it initiated its condemnation proceedings against Marina. The Court held that the City's broad statement of purpose failed to meet Code of Civil Procedure section 1245.230's requirement of a stated public use.

The Court of Appeal also held that a governing body's post-resolution conduct is not relevant to whether a resolution's project description complies with Code of Civil Procedure section 1245.230. Thus, the Court concluded that if a resolution of necessity does not contain an adequate project description, the agency cannot make the findings required by Code of Civil Procedure section 1240.030 (public interest and necessity require the project; the project is most compatible with the greatest public good and least private injury; and the property is necessary for the project). Without these findings, an agency has no right to condemn, and any complaint founded on such a defective resolution should be dismissed. The Court held that the City had no right to take the property.


Having ruled against the City on its right to take, the Court of Appeal had to select one of two potential remedies. Code of Civil Procedure section 1260.120 provides that a court may order either: (1) immediate dismissal of the proceeding as to that property; or (2) conditional dismissal of the proceeding as to that property unless such corrective and remedial action as the court may prescribe has been taken. The court also has discretion to order that the plaintiff pay the reasonable litigation expenses incurred by the property owner because of the condemning agency's missteps. (Code Civ. Proc., § 1260.120, subd. (c)(2).)

Marina sought an unconditional dismissal requiring the City to surrender possession of the property. The City, naturally, argued for a conditional dismissal so it could correct the problem. The Court of Appeal concluded that there is no dispute that the City put Marina's property to a public use, and an unconditional dismissal would result in Marina regaining possession of the property that had possibly increased in value by hundreds of thousands of dollars as a result of improvements Marina did not make. Because such a dismissal would involve enormous costs to the taxpayers and cause significant disruption to ongoing City-run operations, the Court found such a result inequitable and unnecessary. Thus, the Court ordered a conditional dismissal, affording the City an opportunity to adopt a new resolution of necessity for Marina's property that contained an adequate description of the proposed project. The court awarded Marina its reasonable litigation expenses in defending the action. However, it denied Marina's request for consequential damages under Code of Civil Procedure section 1268.620 because the section is only triggered if an action is dismissed or a final judgment entered.

Implication of Court's Ruling

Did the property owner, Marina, really win? While it prevailed on its challenge to the City's right to take and will recover litigation expenses, the City will most certainly adopt a new resolution of necessity with a proper project description. Thus, Marina will remain dispossessed of its property and will be required to proceed through another valuation trial to determine compensation. Marina has also undoubtedly been unable to access any funds paid for the property's possession or acquisition, as receipt of such funds would have constituted a waiver of its right-to-take challenge. (Code of Civ. Proc. §1255.260.) While an unconditional dismissal may in any event have resulted in another resolution by the City, Marina would arguably reap the benefits of the added value created by the City's improvements. However, a new eminent domain action would have a current date of value, which given a declining market, may eat up much of the value added by the improvements. And what if the City decided not to pursue a new resolution? Marina has effectively had its property held hostage during the condemnation process. Will Marina be able to recover its "consequential damages" under Code of Civil Procedure section 1268.620?

From the City's perspective, its project just got more expensive. It may now be responsible for several hundred thousand dollars in attorneys' and expert fees incurred by Marina, and the City has to go back through the entire resolution of necessity process. But clearly the City will gladly pay Marina's litigation expenses in order to avoid surrendering possession of the property.

One issue that was not addressed by the Court of Appeal in City of Stockton is whether Marina would have an opportunity to challenge the validity of the City's new resolution of necessity. Due process would suggest that Marina must be given such an opportunity. Could Marina argue that the City's adoption of a new resolution of necessity is a foregone conclusion, and thus a hearing over the adoption of such a resolution is a sham? In Redevelopment Agency v. Norm's Slauson (1985) 173 Cal.App.3d 1121, 1127, the agency contracted with a private developer to build condominiums on the property to be condemned before holding a hearing to adopt its resolution of necessity. The appellate court held that the hearing was an empty formality because the condemnation was a foregone conclusion. (Ibid.) If contracting with a developer to build a project results in the condemnation being a foregone conclusion, then what happens when the City tries to condemn property for a project that it already built?

Perhaps the real winner and loser remain to be seen.

David Graeler is a Partner in the Eminent Domain Practice Group whose condemnation experience encompasses a wide array of matters including right to take challenges, direct and inverse condemnation actions, real estate valuation, and business goodwill. He can be reached at dgraeler@nossaman.com.

Brad Kuhn is a member of Nossaman's Eminent Domain and Valuation Practice Group and specializes in business and commercial litigation with an emphasis on eminent domain, inverse condemnation and other real estate disputes. He can be reached at bkuhn@nossaman.com.

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March 13, 2009

Scam Alert – No Fee Necessary for Value Reduction.

Scam Alert – No Fee Necessary for Value Reduction.

Various private companies are sending mailings to property owners offering their services to pursue a reduction in their property taxes. These companies may charge hundreds of dollars to file for a reduction in value on behalf of the property owner. Some companies are even imposing late fees if the application is received after an arbitrary deadline. Be aware that solicitations from private companies offering to pursue a reduction in property taxes must clearly indicate that they are NOT a government agency and that their services are NOT approved or endorsed by any government agency. Failure to provide such notice is a violation of California law. If you or someone you know receives an illegal solicitation, please contact the Los Angeles County Department of Consumer Affairs by phone at (800) 973-3370 or visit their website.

Property owners receiving legal solicitations from private companies that properly identify themselves as not being a governmental agency should be aware that their property may be included in a review the Assessor’s Office will be doing in 2009. Over 500,000 single family houses and condos that were purchased between July 2003 and June 2008 will be reviewed. In some areas, earlier purchases will be looked at. After April 1st, owners will be able to check this website to see if their home is part of the review.

There is no reason to pay for a review that will be done for free.

All 500,000 owners whose homes are reviewed will receive a letter by the end of June notifying them of the results. Owners who disagree with the results of the review or were not included in the review, may file an application through December 31. The Decline-In-Value form is simple to complete and readily available online or at one of the Assessor's District Offices. We will review the application and if a reduction is warranted, the taxable value will be reduced. Please note that there is no charge for a review. Owners are urged to wait until July to decide whether to file an application.

Please click here to see Public Service Announcement with Assessor Auerbach and County Supervisor Gloria Molina.

Please click here to see public service video, "Don’t Get Ripped Off."

See related news stories on KNBC Channel 4, KABC Channel 7, KCAL Channel 9 and Fox Channel 11.

Please click here to read Assessor's Op-Ed article in the Daily News.

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The forward-looking index for the commercial real estate sectors published by the National Association of Realtors® forecasts a sustained lack of credit and continued economic slump in the commercial real estate market this year. The slowing index means commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, is likely to weaken further over the next six to nine months. Read more, here.

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Commercial Real Estate

Commercial Real Estate
The recession continues to take a toll on the commercial real estate sector. In this series of Economists' Commentaries, Research details the latest developments in the Office and the Industrial sectors, with more to come in the Retail and Multifamily sectors.
Office Vacancies >
Office Investment >

Right Tools, Right Now
To help Realtors® meet their clients’ needs and succeed in today’s economic climate, the National Association of Realtors® is offering its roster of business-building resources to members for free or at significantly reduced costs through the association’s new “Right Tools, Right Now” initiative. Research is doing its part by offering many of its surveys, profiles, and other products free or at cost to members. This includes our popular Home Buyer and Seller Survey as well as our Member Profile, which are now available free to members. This is a can’t-miss opportunity to get the tools you need from Research.
Get Research Products >
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Breach of contract


$601,818 VERDICT - Breach of contract - Failure of developer contractor to complete drainage work on subdivision - Unfair business practices - Collapse of portion of roadway
View Details

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Baltimore Ensures NSP is NOT Destabilizing Their Market
The Neighborhood Stabilization Program requires that a foreclosure be purchased for 15 percent below market value. This requirement has caused concern among some that the discount requirement will result in a steeper decline in housing prices and further destabilization. Read more...

Appraisers Brace for Industry Change
"There are pretty lofty goals here, and if the HVCC is successful it will be good for the lending industry and good for America," Lederer said. "But if the government can't stop somebody like Bernie Madoff, how are they going to enforce this?" Read more...

Utah Legislature passes bill to regulate Appraisal Management Companies
The Utah Legislature recently passed a bill that would regulate Appraisal Management Companies. The measure requires AMC's to register with the Division of Real Estate of Commerce before they can legally operate within the state of Utah.  For more information¸ visit...
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March 12, 2009


Among the invaluable benefits of AIR membership is the Association’s constant vigilance on behalf of members as regards issues impacting the commercial real estate industry.  Not the least of these is the AIR’s monitoring of legislation that negatively impacts the industry.  AIRWaves is dedicated to passing information along to our readers when such matters surface.

Below is a commentary concerning SB 133 which has been developed with the kind cooperation of AIR Affiliate Member Michael C. Slinger, senior vice president of Chicago Title Company.  It’s  another example of the diverse resources of the AIR Members and Affiliates aimed at maximizing the success of the “AIR Family”.


At a crisis moment in our economy when government bailouts mount and jobs evaporate daily in our State, the California State Legislature may have aggravated the situation.  In the process, it is threatening even more jobs and could dramatically increase the cost of doing business, with particular damage to the real estate brokerage community. 

AIR member Michael C. Slinger, senior vice president in the Los Angeles regional office of Chicago Title Company, reports that SB 133 (Aanestad), which went into effect January 1, negatively impacts the brokerage community by prohibiting title companies from providing a host of traditional services to the real estate community free of charge.  This includes property profiles, copies of recorded documents, comps, and other day-to-day services. 

Additionally, Slinger said the bill forbids title companies from sponsoring real estate industry events (with particular impact on AIR), or entertaining real estate industry clients. “Numerous real estate groups rely on the title industry for sponsorships and services.  SB 133 effectively does away with that.

“This piece of legislation, as written, is a detriment to the People of California.  The negative affects will be far reaching.  I hope that we can all work together to correct this,” Slinger said.

Slinger and the AIR’s Board of Directors encourage our membership to e-mail, write or call your legislators urging them to amend or repeal SB 133.  In addition, the following government officials and legislators should be contacted to voice your objections to this piece of legislation.

Commissioner Steve Poizner
Department of Insurance
Sacramento Office
300 Capitol Mall, Suite 1700
Sacramento, CA  95814
Phone: 916-492-3500
Fax: 916-445-5280 (fax)

Sen. Sam Aanestad
Capitol Office
State Capitol, Room 2054
Sacramento, CA 95814
Phone: 916-651-4004
Fax: 916-445-7750

Senator Dave Cogdill
Capitol Office
State Capitol, Room 305
Sacramento, CA 95814
Phone: 916 651-4014
Fax: 916 327-3523

Senator Dave Cox
Capitol Office
State Capitol, Room 2068
Sacramento, CA 95814
Phone: 916 651-4001
Fax: 916 324-2680

Senator Pat Wiggins
Capitol Office
State Capitol, Room 4081
Sacramento, CA 95814
Phone: 916 651-4002
Fax: 916 323-6958

Assembly Member Cathleen Galgiani
Capitol Office
State Capitol
P.O. Box 942849
Sacramento, CA 94249-001
Phone: 916 319-2017
Fax: 916 319-2117

Commercial Appraiser
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March 11, 2009

AIR Commercial Real Estate Forms User’s Manual

Dear AIR Member:

In an effort to continue delivering meaningful products and services to our members, the AIR will soon release the much anticipated AIR Commercial Real Estate Forms User’s Manual. This manual was co-written by Rick Riemer, the AIR’s forms attorney and the person most responsible for writing, revising and modifying the AIR forms during the past 15 years, and John Pagliassotti, who sits on the forms committee with Mr. Riemer and has been in the commercial real estate industry for 25 years as a broker, asset manager and owner.

The User’s Manual was created as a reference tool to help our forms users interpret and understand the forms.  Every real estate professional who uses the AIR forms is going to want this book on their desk.  Think of this manual as the print version of the Contract Forms Review seminar.  The manual, however, goes into much more detail than does the seminar.

The manual includes all of the leases and related addenda and every paragraph in each of the forms is broken down and explained in layman’s terms complete with highlights, notes and practice tips for landlords, tenants, brokers, property managers and attorneys.

The manual will help you provide your clients with a much higher level of service when it comes to using and interpreting the AIR forms.  Take a look at the example in the enclosed flyer (below and attached).  Were you aware that there is actually a strategy to filling in the Agreed Use portion of the lease?  I can assure you, your clients will find this information to be critical.  Once you have a copy of the AIR Commercial Real Estate Forms User’s Manual in your library you will be equipped to answer your clients’ questions about the AIR forms with confidence and give them excellent advice by utilizing the information provided in the manual.

The manual also contains a Glossary of Defined terms. All of the defined terms from the leases and addenda are listed in the glossary along with their definitions and the paragraph where they first appear in the forms. For instance, when you find the word “Option” in the lease, you will no longer have to search through the lease to find its definition…all you’ll have to do is turn to the glossary.

The manual will go to print during the first week of April and be ready for shipping on April 22nd.  We are currently taking “pre-print” orders at a discounted rate.  If you order now you can enjoy the “pre-print” price of only $99 ($119 for non-members).  Once the manual is printed, the cost for members will be $139 ($149 for non-members).  Either way, it is a low price to pay for what may be the greatest resource in your professional library.

To order your copy of the AIR Commercial Real Estate Forms User’s Manual, please call the AIR at 866-946-2472.


Tim Hayes

Executive Director

commercial appraiser, commercial appraisal

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Dear Subscriber:


As a subscriber to HousingEconomics.com, you get the added benefit of reading the latest edition of “Eye on the Economy” 90 minutes before anyone else.


The March 11 edition is available to you now:



And thank you for subscribing to HousingEconomics.com.




Richard Curren, Editor


NAHB HousingEconomics.com - News and Alerts


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March 08, 2009

The Appraisal Foundation and American Bankers Association Partner on National Telebriefing on March 26

The Appraisal Foundation and American Bankers Association Partner on National Telebriefing on March 26

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March 06, 2009

Appraisal Foundation



BOT Vacancies - Application Deadline of March 16

The Appraisal Foundation is searching for qualified candidates to serve on its Board of Trustees.  Completed applications for vacancies on the Board of Trustees must be received by March 16, 2009.  The search for qualified candidates for the AQB and ASB has begun.
There are four At-Large Trustee seats available as of December 31, 2009.   The Appraisal Foundation is interested in expanding the diversity of its Board by considering applications from business leaders with an interest in valuation or involved in various appraisal disciplines.

The Board of Trustees of The Appraisal Foundation is charged with funding the work of and appointing members to the AQB and ASB, as well as providing oversight of these two Boards.  The Board of Trustees meets twice a year, in the Spring and Fall. Trustees are reimbursed for travel expenses and are not compensated for their time.  The individuals selected for positions on the Board of Trustees will serve three-year terms commencing January 1, 2010. 
When requesting information on the applications via e-mail, please use the phrase "2009 AT-LARGE APPLICATION  INFORMATION" in the subject line, and please include your full name, mailing address and phone number.

ASB Issues 3rd Exposure Draft on Revisions to USPAP

The ASB has just released its 3rd Exposure Draft on revisions to become effective with the 2010-2011 edition of USPAP.  The comment deadline for the Exposure Draft is March 27, 2009.  Topics covered include: 


  • Definition of “Assignment"
  • Definition of “Signature"
  • Definition of “Jurisdictional Exception” and revisions to the JURISDICTIONAL EXCEPTION RULE
  • STANDARD 3, Appraisal Review, Development and Reporting  

TAF-AARO Investigator Training

The Appraisal Foundation and the Association of Appraiser Regulatory Officials (AARO) have formed a partnership to offer investigator training to state appraiser regulatory officials. 
The training sessions will be offered once per quarter in 2009.
The training sessions, which will accommodate up to 160 state regulators in 2009, will be offered at no cost to the states, as a result of a grant to The Appraisal Foundation from the Appraisal Subcommittee (ASC).  In addition, transportation to the sessions as well as lodging and meals will be reimbursed by the Foundation.  The goal of these sessions is to promote greater consistency in the evaluation and investigation of complaints received about appraisers nationwide.
The training session will be presented over a two and a half day period.  It will focus on the Uniform Standards of Professional Appraisal Practice (USPAP) from a state regulator perspective, as well as offer recommended investigative and interview techniques.  Greater uniformity in the reporting of investigator’s findings will also be a component of the sessions.
“This is a perfect example of how, when working together, we can address a key component of effective enforcement,” stated Dave Bunton, President of The Appraisal Foundation.  “We applaud AARO for developing the concept of the investigator training sessions and the Appraisal Subcommittee for providing the funding to make this worthwhile program possible.” 
“AARO is extremely pleased to participate in this important joint venture,” stated Neva Conway, 2009 President of AARO.  “This program will provide tools for state appraiser regulatory agencies to improve consistency in the investigation of appraiser complaints, as well an enhanced understanding of USPAP from a regulatory perspective.”
Registration for the sessions will be on a regional basis and each state can send up to three investigators to the sessions.  State appraiser regulatory boards should look for notification from The Appraisal Foundation when sessions are being offered in their regions.  The preliminary schedule is as follows:
Phoenix, Arizona - March 19-21, 2009 (class full, registration closed)
Dallas, Texas - June 4-6, 2009
Washington, DC - August 6-8, 2009

An additional offering will be scheduled for the Fall of 2009 in Chicago, Illinois, date to be announced. 
Any questions on this program can be directed to Adam Turek, (adam@appraisalfoundation.org).

University Graduate Review

The Appraiser Qualifications Board (AQB) of The Appraisal Foundation has announced the establishment of a review program for University Graduate Degrees in Real Estate. 
The AQB is responsible for setting the minimum education, experience and examination criteria for Real Property Appraisers in the United States.  Over the years, it has become evident that individuals obtaining graduate degrees in real estate from accredited institutions of higher learning have invested significant post-baccalaureate effort to become educated in core real estate and appraisal subject matter. 
As a result, the AQB will begin analyzing graduate degree programs in Real Estate to determine how the education completed to obtain a graduate degree can be applied to the qualifying education Required Core Curriculum in the Real Property Appraiser Qualification Criteria.  The AQB intends to perform these analyses on “current” graduate programs, publishing the results for state appraiser regulatory agencies to use when reviewing the educational qualifications of applicants that hold such degrees. 
This program will benefit both state appraiser regulatory agencies in their review of an applicant’s qualifications, as well graduate degree applicants looking to obtain a real property appraiser credential.  According to Gary Taylor, 2009 Chair of the AQB, “The AQB believes that this new program will assist those individuals who have made the substantial investment required to earn a graduate degree in real estate.  It will not only assist these individuals that choose to pursue a real property appraiser credential, but it will also facilitate bringing some of the best and brightest into the profession.”
Individuals holding a graduate degree from a properly accredited college or University that was obtained in the distant past may need to contact their state appraiser regulatory agency to inquire about having their particular degree program analyzed.

The Appraisal Foundation and American Bankers Association Partner on National Telebriefing on March 26

The Appraisal Foundation and the American Bankers Association have partnered for a national telephone briefing on property appraisals in distressed markets. The two-hour telebriefing will be held on March 26, 2009 from 2 p.m. to 4 p.m. EDT. The briefing will present relevant information and provide guidance and valuable insights to appraisers, bankers and other users of appraisal services.

Appraisal experts from a Uniform Standards of Professional Appraisal Practice (USPAP) perspective, as well as from a "best practice" perspective, will join a federal financial institution regulator to discuss industry concerns on appraising in distressed markets.

Points to be covered during the course of the telephone briefing will include:
  • Appraising in markets where most or all of the comparables are distressed sales.
  • Tips for lenders to ensure accurate appraisal orders, and to define adequate scope of work for engaging appraisal services in distressed markets.
  • Understanding the "decision tree" used by regulators to determine whether a loan should be adjusted downward.
  • Types and definitions of value used in appraisal assignments.
  • Effective communication between banks and appraisers on the methodology being used in appraisal assignments.
"We are pleased that this initial joint venture with the American Bankers Association is on such a timely and important issue," said David Bunton, president of The Appraisal Foundation. "Participants in this national telephone briefing will receive very useful guidance directly from nationally recognized industry experts."

"The current financial turbulence is changing the economic and regulatory landscape," said Warren K.K. Luke, chairman, president and CEO of Hawaii National Bank, Honolulu, the ABA moderator of the telephone briefing. "More than ever, lenders and appraisers must be able to properly apply rules and sound appraisal principles in tumultuous market environments. We will explore these topics in the upcoming event."
The cost of the program is $255 per registered site.  For more information or to register, visit: www.aba.com/teleweb/tb032609.

2009 Initiatives

The Appraisal Foundation is embarking on several new initiatives in 2009 including the establishment of task forces on consistent enforcement and best practices.  For details on all of the new initiatives, please visit the Foundation web site.

The next public meetings of the Foundation Boards are as follows:

ASB Public Meeting – April 3, 2009 – New Orleans, Louisiana
AQB Public Meeting -- May 1, 2009 -- Chicago, Illinois

Newsletter Links



The Appraisal Foundation is a non-profit educational organization founded to foster professionalism in appraising through the establishment and promotion of appraisal standards and appraiser qualifications.
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March 05, 2009

AIR Past President Jim Gillespie


Next Wednesday, March 11th, at 5:00 p.m. Pacific Time, AIR Past President Jim Gillespie will lead a free teleconference for all of us titled, "How to Make Big Money in a Difficult Commercial Market". If you find yourself wanting more ideas, strategies, and better focus on what you must do in this market to make more money, you'll definitely want to join us for this teleconference.




To learn more about this special free teleconference training sponsored by AIR, click on the following link:




Sign up today!  

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March 04, 2009

Green Roofs for Healthy Cities

Green Roofs for Healthy Cities believes that it is possible to transform the building industry into a powerful force for restorative, high-performance buildings and sustainability. We are working to ensure that green roofs and walls will play a leading role in this transformation!

We invite you to read the Living Architecture Monitor, our digital magazine, and to support our mission by becoming a member of Green Roofs for Healthy Cities.

On June 5, 2009, we will be launching the newest green building credential with our inaugural Green Roof Professional (GRP) exam. For more information about GRP accreditation, see the Accreditation FAQ.

Please consider joining us for this momentous occasion at Pushing The Envelope, our 7th Annual Greening Rooftops for Sustainable Communities Conference, Awards and Trade Show, in Atlanta, GA.

Professional training courses in support of the Green Roof Professional are now being offered in various cities (see www.greenroofs.org/education for dates and locations) and course manuals may now be purchased from our online Green Infrastructure Store. www.greeninfrastructurestore.com.

Thank you for you interest and support!

Living Architecture Monitor - Winter 2009

Green Roofs for Healthy Cities

appraiser, appraisal
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cvent.com - Reach the Response
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March 03, 2009

Tenants Should Test Landlords on Lease Terms

Source: http://www.metrocorpcounsel.com


Tenants Should Test Landlords on Lease Terms 

Commercial real estate market conditions are leading to a shift in negotiating power away from landlords and toward tenants. In the article "Space Considerations And Lease Negotiations In A Down Market," authors Mark Maltz and Brooke Richmond point out the opportunities for tenants in rich detail. Regarding free rent, the authors say, "Various free-rent models can be negotiated, such as a free-rent period at the beginning of the term, or mixed throughout the initial few years of the term (i.e., free rent for a portion of each of the first three years of the term). Free-rent periods are particularly useful for new businesses that do not have the capital to begin paying rent until the business is up and running." On build-outs, the article says, "Some landlords are even agreeing to perform the initial build-out up to a pre-negotiated cap or based on a plan attached to the lease." On lease term, the authors write, "In these unprecedented times, the exit strategy is often a key item driving the lease negotiations. Tenants may be able to get the right to terminate the lease early upon reasonable advance notice to the landlord (typically, 12 months)." And regarding assignment and subleasing, the article notes, "tenants should negotiate greater flexibility in the assignment and subletting section of the lease. The tenant should seek to limit the landlord's approval conditions and other possible impediments to the tenant's ability to shed space."

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Senate Bill 133

Dear AIR Member:



By now you have probably heard of Senate Bill 133 which was passed at the end of 2008 by the California legislature.  The motivation behind the bill was to create certification and licensing requirements for title insurance representatives.  However, in the process of writing the bill, language was included that puts severe restrictions on how title insurance representatives can interact with their clients.  Specifically SB 133 deems unlawful and prohibits title insurance representatives from conducting common business practices that include “expenditures for food, beverages and entertainment…”  It also forbids title companies to sponsor any events for professional trade organizations like the AIR, CCIM, and SIOR. 



Without sponsorship dollars from title companies, the AIR and, I would imagine other similar organizations, will have a very difficult time holding events such as The Annual Review & Forecast Meeting, AIR Contract Forms Reviews, or any other association events.  Through their financial assistance, title companies have certainly contributed to the success of the AIR and its members for many, many years.



Perhaps the intent of the SB 133 is well founded.  Perhaps there does need to be a licensing process in place for title insurance reps, but to restrict title companies from supporting the brokerage community via sponsorship and relationship-building practices (your title rep can no longer buy you as much as a cup of coffee!) serves absolutely no purpose and, in fact, damages the commercial real estate industry.



I urge you to take a few minutes and craft a brief letter and send it to the politicians listed below.  Let Sacramento know that there are aspects of Senate Bill 133 that need to be amended in order to continue to allow title insurance companies to assist the commercial real estate industry as it always has.



If you would like to read SB 133, please click here.








Timothy Hayes


Executive Director




Insurance Commissioner Steve Poizner - CommissionerPoizner@insurance.ca.gov



Senator Pat Wiggins - Senator.wiggins@senate.ca.gov



Senator Dave Cox - Senator.cox@senate.ca.gov



Senator Dave Cogdill - Senator.cogdill@senate.ca.gov



Senator Sam Aanestad - Senator.aanestad@senate.ca.gov



Assembly Member Cathleen Galgiani - Assemblymember.galgiani@assembly.ca.gov



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March 02, 2009


Dear AIR Member:



Just in case you haven’t already registered, the Southern California chapter of the NAIOP is having a networking event tomorrow evening, March 3rd starting at 5:30 PM at the beautiful Pacific Palms Resort in the City of Industry.  John Semcken, Vice President of Majestic Realty Company will be presenting a multi-media virtual tour of the plans to bring NFL Football back to Los Angeles!  If you are interested in attending, please register by clicking the registration link below.






All you football fans ... you won't want to miss this!




Kick-Off 2009






Are you Ready for Some Football?


Bringing the NFL Experience Back to LA




Tuesday, March 3, 2009






5:30-6:00 p.m.        Registration


6:00-7:00 p.m.        Program (begins PROMPTLY at 6:00 p.m.)


7:00-8:00 p.m.        Networking Reception










One Industry Hills Parkway


City of Industry, CA 91744



Click here for directions






·   $65 / Members


·   $95 / Non-Members


Advance registration deadline February 27th



Click here to download RSVP form


Click here to register online






Are You Ready for Some Football?  Bringing the NFL Experience Back to LA



With the NFL Super Bowl fresh in our minds, get a multi-media virtual tour of LA's NFL Stadium proposal, including an overview of the surrounding complimentary real estate development plan and an up-to-the-minute progress report on bringing an NFL team to Los Angeles. Learn how Majestic's team will use their successful Staples Center experience in this latest venture.









John Semcken


Vice President


Majestic Realty Co.









Becky Ezell


714.979.9131 x 223












This message may contain confidential or proprietary information intended only for the use of the 


addressee(s) named above or may contain information that is legally privileged. If you are 


not the intended addressee, or the person responsible for delivering it to the intended addressee, 


you are hereby notified that reading, disseminating, distributing or copying this message is strictly 


prohibited. If you have received this message by mistake, please immediately notify us by  


replying to the message and delete the original message and any copies immediately thereafter. 



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PRESSURE FROM LENDERS, Commercial Appraiser, Commercial Appraisal


Abuse of the appraisal process

Commercial Appraiser, Commercial Appraisal Published: Thursday, February 5, 2009 at 1:00 a.m.
Last Modified: Thursday, February 5, 2009 at 7:17 a.m. http://www.heraldtribune.com/article/20090205/COLUMNIST/902050334?Title=Abuse_of_the_appraisal_process

In over 22 years in the real estate and development business, I have never seen a worse time in the real-estate lending and appraisal industries.

Banks are abusing a federal requirement -- that lenders use "mark to market" accounting -- in order to squeeze commercial real estate developers, which is exacerbating the current real-estate valuation crisis.

Appraisers play a critical role in the "mark to market" accounting rules, which require banks to use market value when reporting the value of mortgage securities they own.

However, the inherently incestuous relationship that exists between lenders (who are the principal source of revenue to appraisers) and appraisers (who must please the lenders to continue to get business) undercuts any true independence in the process.

How independent can appraisers be if they recognize that their ability to survive in these tough economic times is contingent upon their ability to keep the lender, who hires them, happy?

An annually updated appraisal is required to support an existing mortgage on a commercial property in order to comply with lenders' "mark to market" accounting obligations. It is my belief that lenders have abused the appraisal process underlying the requirement in order to improperly squeeze their commercial borrowers.

Here's how the process works: Appraisers are selected by lenders. Appraisers then submit their draft appraisals to the lender, whose internal appraisal department reviews and finalizes the appraisal before presenting it to the borrower.

The borrower typically never sees the draft appraisal, and has no opportunity to provide input before being presented with the final appraisal.

The lender then uses this valuation to measure loan-to-value ratios. Lenders can thus improperly influence and dictate appraisal values, and then use those arbitrarily low values to demand additional loan payments or recapitalization of the loan from the borrower.

In my opinion, and that of many in the development and real estate industry, the de facto control that lenders have over the appraisal process has put commercial developers in a Catch-22.

At the peak of the real estate boom, lenders pushed appraisers to inappropriately inflate property values to justify large loans and the fees and revenues they generated for the banks. These same lenders are now forcing appraisers to artificially depress the values of the same assets, in order to coerce capital from borrowers forced to meet loan-to-value capital requirements.

Banks are taking these loan write-downs and then heading over the Troubled Asset Relief Program trough, provided by the federal government, for reimbursement of their "bad" loans. Then the lenders come back and squeeze the borrowers for additional capital.

Evidence of the conflict of interest inherent in lender-appraiser relationship abounds.

A settlement between New York Attorney General Andrew Cuomo and the Federal Housing Finance Agency resolved claims that Fannie Mae and Freddie Mac sought appraisal overvaluations and brought illicit pressures on appraisers to "hit the numbers" needed to close loans.

As part of the settlement agreement, the companies and federal regulators agreed to create a code of conduct to ensure that appraisals are accurate and insulated from pressure from lenders.

Lenders are abusing the mark to market accounting requirement by dictating to appraisers to determine a "liquidation" or "fire sale" value on many commercial real estate parcels in Florida and abroad.

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