Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real,americast.usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Mon, Aug 24 1992 Date: Mon, 24 Aug 92 04:10:13 EDT Message-ID: 08-24 0000 DECISIONLINE: Real Estate USA TODAY Update Aug. 24, 1992 Source: USA TODAY:Gannett National Information Network REGULATION UPS HOUSING COSTS: A study by the Urban Land Institute indicates that regulatory practices are increasing housing development costs. Development restrictions and increased fees have raised the cost of new housing by 20% of the median sales price of new homes in Sacramento, Calif., and 13% in Orlando, Fla., while there has been no cost increase in Nashville, Tenn., an unrestricted environment. LENDING RULES ARE CHANGED: Freddie Mac and Fannie Mae have altered their rules on borrowers' credit history and job stability, as well as the types and location of properties they allow. Officials at Freddie Mac said Sunday the changes would facilitate loans to inner-city borrowers often overlooked by lenders. They hope to discourage bias in lending rules that favor middle-class homebuyers. SURVEY CITES CHANGES: Developers will seek debt financing from nontraditional sources according to the 1992 National Real Estate Opinion Survey. Of those surveyed, 13% said they receive some financing from foreign banks and 25% said they would by 1995 and those seeking finance from pension funds will increase from 19% to 42% by the mid-nineties. FREDDIE MAC NEEDS AGENTS: Freddie Mac is looking for agents to help it move $129 million in foreclosed multifamily properties. Competition for listings is often intense, officials said Sunday. Freddie Mac uses experienced, local agents who specialize in multifamily properties to sell all its foreclosed properties with five or more units. Brokerage fees vary from city to city. BANKRUPTCY TO ALTER POLICY: The recent bankruptcy filing of Commonwealth Mortgage Co. will echo throughout the mortgage industry, sources said last week. Observers believe the bankruptcy may prompt closer scrutiny of arrangements in which mortgages are sold with recourse. The bankruptcy may also cause warehouse banks to take a more critical look at the mortgage companies with whom they do business. ITT READIES FOR ANDREW: ITT Hartford Insurance Group is mobilizing resources and increasing its claim staff in southern Florida to serve policyholders whose property may be damaged by Hurricane Andrew. The company said Sunday that it has sent more than 100 emergency claim representatives to the state, and plans are being made to open emergency claim offices in areas hardest hit by the storm. JAPANESE JOINT VENTURE SET UP: Japanese banks are expected to set up a joint-venture company to purchase bad real estate assets by the end of this year, Bloomberg Business News reports. Finance Ministry officials will start discussing the details with the banks next week. The Bank of Japan and Finance Ministry may set up a company to assess the value of real estate assets to be sold by the bank joint venture firm. HOUSING LOAN APPROVED: The Community Redevelopment Agency has approved a $3.2 million loan by the Central American Refugee Center in Los Angeles. The loan will be used to develop a mixed-use social service center and low-income housing complex in riot-torn Pico Union. Pending city council approval, CRA funds approved Thursday will be used to acquire and rehabilitate the Alvarado Building in Pico Union. FIRES CAUSE CALL FOR MANAGEMENT: Officials from the California Forestry Association called for implementation of healthy forest management programs Sunday, including the removal of dead, dying and diseased trees. Wildfires continue to rage in Shasta, Trinity and Calaveras counties and elsewhere throughout the state. Years of drought, disease and other factors have led to unhealthy forest conditions. HCA ANNOUNCES SALE OF HOSPITAL: Hospital Corporation of America announced Sunday that a Texas subsidiary of HCA has agreed to sell Gulf Coast Hospital in Baytown, Texas, to a subsidiary of Champion Healthcare Corporation of Houston. The transaction is subject to various conditions including receipt of necessary regulatory approvals. At the time of completion, HCA expectis to receive proceeds of about $15 million. SIZELER REPORTS RESULTS: Sizeler Property Investors, Inc. announced Sunday results for the three months ended June 30. The company reported funds from operations increased to $1,278,000 for the three months ended June 30, compared to $1,037,000 for the three months ended June 30, 1991. Sizeler is an equity real estate investment trust which invests in shopping center and apartment properties in the south. CAMPEAU MUST RETURN PROPERTY: Developer Robert Campeau this week will return to Camdev 10 paintings, two cars and telephone equipment worth $1.1 million. Late last week an Ontario court told Campeau to return the assets, which the real-estate company he founded plans to sell. Campeau was removed from his company in August 1990 when debt troubles began to surface; he had earlier bought several department-store chains. Real Estate Editor: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. 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