Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Wed, May 13 1992 Date: Wed, 13 May 92 05:40:09 EDT Message-ID: 05-13 0000 DECISIONLINE: Real Estate USA TODAY Update May 13, 1992 Source: USA TODAY:Gannett National Information Network FOCUS IS ON NEIGHBORHOODS: President Bush's formal response to the riots in Los Angeles, his "action plan" for cities, consists largely of proposals made in his 1993 budget. Among the proposals: Plans to "weed" violent criminals and drug dealers from bad neighborhoods; expand choices for low-income housing residents; and encourage employment and investment in blighted neighborhoods through the use of tax breaks. (For more, see special Policy package below.) LOSS-ON-SALE COSTS INCREASE: The cost per employee for loss-on-sale programs continues to increase as transferees are forced to sell homes in depressed markets, according to Runzheimer Reports on Relocation. Since 1987, the average loss on sale per employees has risen to $18,069 from $7,750, with 34% of respondents averaging $15,000 or more per employee. NORTHEAST, TEXAS TOUGH MARKETS: Loss-on-sale programs were begun in the 1940s to guarantee a minimum sale price to employees forced to sell their homes when their companies relocated them. The Northeast records high equity loss on home sales, as well as oil-patch states such as Texas and Oklahoma. The West Coast also is cited as a difficult resale market by respondents to a survey by Runzheimer Reports. STATE WANTS TO SELL LAND: The state of Wyoming is hoping to sell 60,000 acres now under lease in the northeastern part of the state because they are infested with the noxious weed called leafy spurge. At issue: The expense of controlling the weed. But that means it will be cheaper for ranchers to lease the land, a problem for the state. M.D.C. REPORTS OPERATING INCOME: M.D.C. Holdings home builder and mortgage banking company has reported operating income totaling $2 million during the quarter ended March 31, compared to an operating loss of $6.4 million during the first quarter 1991. Orders for new homes totaled 905 units, a 66% increase over 545 for the first quarter 1991. The company closed 420 homes, up 24% from first quarter 1991. OPEN HOUSE SCHEDULED: There will be an open house for a two-story four-bedroom Dutch Colonial home at 14625 North Abington in Detroit Wednesday, The home was renovated by the NBD Community Development Corporation and the Grandmont:Rosedale Community Development Corporation in an effort to secure the stability of one of Detroit's neighborhoods. Contact M. Renee Ahee of NBD at 313-225-2596. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 8.75% Tuesday, unchanged from Monday and down from 8.84% the week before. They were at 9.47% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.02%, unchanged from Monday but down from 6.10% the week before. A year ago they were at 7.23%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.25% Tuesday, unchanged from Monday but down from 4.34% the week before. A year ago they were at 6.13%. For the 11th District ARM index, rates were at 6.511%, unchanged from Monday and unchanged also from the week before. A year ago they were at 7.654%. T-BONDS DECLINE: Treasury security rates for the 30-year bonds showed a decline Tuesday, listing at 7.86%. That's down 0.03 from rates of 7.89% Monday and down 0.14 from rates of 8.00% the week before. A year ago T-bonds were at 8.33%. SPECIAL PACKAGE ON POLICY: RESPONSE LOOKS AT NEIGHBORHOODS: President Bush's formal response to the riots in Los Angeles consists largely of proposals from his 1993 budget and includes plans aimed at neighborhood residents and prospective homeowners. One would "weed" violent criminals, drug dealers and gang leaders from troubled neighborhoods and "seed" them with social services and community-based policing. BOOST HOME OWNERSHIP: A housing initiative policy is to expand choices for low-income families living in public housing by enabling them to buy their own homes. The proposal calls for increased funding for HOPE grants to help 36,000 families purchase and manage public housing units and start 65,000 more on the road to ownership. The price tag: $1 billion, up from $136 million appropriated last year. INVEST IN NEIGHBORHOODS: Another policy encourages employment and investment in blighted neighborhoods through tax breaks, with the plan being to create 10 enterprise zones in 1993 and 50 over the next four years. Few urban planners view the zones as a panacea. Barbara Puls of the National Conference of State Legislatures says they're "not exactly cutting-edge economic development." (End of package.) Real Estate Editor: Beth Mann. (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. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM