Housing Programs Are So Strapped For Cash That Millions Of Families Canât Even Get On Wait Lists12/18/2016 Federal programs provide homes for about 5 million families nationwide, but that's only a fraction of the people who are trying to receive assistance, according to a report released Thursday.
For the report, researchers at Public and Affordable Housing Research Corporation looked at a study about homelessness among public housing applicants published in 2014 by the U.S. Department of Housing gin ethelsen and Urban Development. PAHRC research manager Keely Stater zeroed in on a startling figure: In 2012, 2.76 million families were on waiting lists for housing choice vouchers, a federal program that covers a portion of recipients' rents in privately owned affordable housing. But close to half of local housing agencies, struggling with shrinking resources and a finite number of vouchers, had closed their waiting lists when the data was collected, meaning families that wanted to apply for affordable housing couldn't. Stater wanted to determine how many families were actually trying to get assistance, whether waiting on an official list or off it. ![]() In their analysis of the HUD data, researchers used statistical models to estimate that 9.5 million households would be on waiting lists for housing vouchers if there were no caps -- more than three times the official total. Their estimates only include those they predict would apply if waiting lists were open; there are more eligible families who don't seek housing assistance and were not included. The revised, larger figure underscores the need for an expansion of affordable housing programs, Stater said. In some states, there are more than four families waiting for each available housing voucher. ![]() Credit: Public and Affordable Housing Research Corporation The map shows how many families are waiting for housing vouchers compared to the number available by state. See the breakdown by county here. It's clear how far the programs fall short when you look at what happens when agencies reopen their closed waiting lists. When the Detroit Housing Commission -- which serves several Michigan counties -- opened its waiting list last year, 40,000 people applied. DHC added 7,000 applicants to the waiting list, chosen by lottery, leaving another 33,000 out of luck. Chicago opened its waiting lists in 2014 for the first time in over four years. More than 280,000 people registered and only 96,000 were added. Once a family makes it onto a list, there's no guarantee that they'll get assistance anytime soon. Waiting list size and turnover vary, but in some places, applicants who make it on the list end up stuck for years. ![]() Credit: Public and Affordable Housing Research Corporation The map shows the number of years families wait for housing vouchers by state. See the breakdown by county here. In 2013, The New York Times talked to Maria Almonte, one of over 200,000 people on the New York City Housing Authority's waiting list for public housing. She applied in 2009. "Every time I call, they don't say anything," Almonte told the paper. "They say, 'You're on the waiting list, you're on the waiting list.' Sometimes I feel such anxiety because of the uncertainty." New York City has one of the most robust sets of housing assistance programs, but also has some of the highest need. According to PAHRC's estimates, there are more than five families seeking vouchers for each one available in New York County. Families who haven't yet succeeded in getting housing assistance cope in a variety of ways, Stater said. Some spend more of their income on rent than they can afford, others might share space with other tenants or stay with relatives and some people are homeless. "There's a lot more people waiting than we previously thought. ... It's pretty astounding to me," she said. "This is a great way to demonstrate that we need more resources for housing across the nation." http://www.huffingtonpost.com/entry/affordable-housing-waiting-lists_us_56d9c5b5e4b0ffe6f8e9321f
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The bar for luxury residential real estate in Hong Kong, already one of the most expensive areas in the world, has been raised.
The Peak, at 1,811 feet above sea level, is the highest point on Hong Kong Island and has symbolized prominence and wealth since the 19th century. Formally known as Victoria Peak, it towers above the heart of the city and has spectacular, 360-degree views of all of the surrounding islands. To live there signifies a status level for which captains of industry from around the world are willing to pay top dollar. Last month, The Peak exceeded its own lavish reputation, with local headlines claiming it is the site of the most expensive residential piece of land in the world. The government land auction of 12 Mount Kellett Road fetched $231 million from Sun Hung Kai Properties -- 134 percent of the opening bid and a projected $5,417 per square foot. And that's for just the land. Why the historic high price? It's a simple supply-and-demand equation. Property here, the most sought-after low-density neighborhood in Hong Kong, comes available so infrequently that some of the world's richest line up to buy. At The Peak, "less than 50 properties will be available in the next two years," according to Buggle Lau, the chief analyst at Midland Holdings, a real estate brokerage company selected by Forbes as one of the best small Asian companies in 2006. Luxury throughout the world is difficult to compare, but there are interesting ways to track residential riches, according to Liam Bailey, head of residential research at the global property agency Knight Frank. Bailey is based in London, which happens to be the most expensive city per square foot in the high-end market ($3,051 on average and $5,800 at the very top, for those keeping track). By square foot unit price, Monaco is No. 2, with a high-end average of $2,673. Hong Kong is No. 3 at $2,008 and New York, the highest-ranking U.S. city, is No. 5 at $1,796. High-end real estate is also tracked by how many square feet you can buy for $1 million. In London, $1 million gets you 328 square feet. In Monaco, it's 374. In Hong Kong, it's 498 and in New York, it's 557. Perspective on The Peak Changes Through the Years In Hong Kong, nearly 7 million people live on about 425 square miles of space. With the city's land reserve policy in place, land is a limited and valuable commodity. In site simple terms, the government in Hong Kong controls land availability. Land is listed for sale, and interested applicants submit bids to the government. The right price triggers the government to release the land and auction it off to the highest bidder. It doesn't happen often. Before the Mount Kellett property, the last government auction for land at The Peak was seven years ago. I can still remember The Peak from my childhood. A happy playground, it provided our family a chance to escapes the hustle and bustle of the city. Twenty-some years later, I've moved back to Hong Kong and The Peak still strikes its same peaceful purpose -- it is just as green, with views as stunning as ever. Time, however, has changed my perspective. Now I notice the flashy sports cars cruising down private roads to houses and infinity pools hidden behind security gates and cameras. I'm ready to explore the grown-up playground. Visiting One of The Peak's Poshest Addresses "Should I take my shoes off?" I ask, knowing this is common practice when entering people's homes in Asia. "Yes, thanks," says the real estate agent, a tinge apologetic. My bare toes are about to grace the floors of 15 Plantation Road, a triplex on The Peak. Though the price of this ground was a mere half that of the plot at Mount Kellett, I am still thankful I just gave myself a pedicure. At $12.6 million for just 4,455 square feet -- this was luxury, Hong Kong-style. Inside the triplex, the harbor greets us through wide windows on every level -- stealing the limelight from the elegance within. I force myself to pay attention to the detail of the sleek modern kitchen (designed by an architect flown in from Italy), to count the bedrooms (four) and bathrooms (four) and notice the hot tub. "Is that a hot tub?" I whisper to the real estate agent. Distracted again by the view, I point out the window down toward the Mediterranean-style swimming pool. I'm whispering because it's that really-expensive-museum-like-quiet inside. The hot tub is in the perfect location, perched high in the corner to offer the optimum angle to view the harbor. "Hong Kong luxury is a bit different from North America," says Lau. "It's relatively small compared to the states. But in terms of location, you enjoy the breathtaking sea view." He's referring to the panoramic view of Victoria harbor. The harbor is famous itself as a major center for imports, exports and transportation from Kowloon to Hong Kong Island, and also for its sensational surrounding skyline. As prices have climbed, the luxury bar has been raised. People in Hong Kong are developing a taste for the finer things in life. New properties are going up with amenities such as private pools, saunas, movie theaters, clubhouses and tennis courts. "We didn't have these things 10 years ago," says Xavier Wong, Hong Kong head of research at Knight Frank, which lists three of the four most expensive homes in all of Asia. All three are at The Peak, according to Forbes.com. Top End Luxury Skyrockets, Other Real Estate Struggles While the top-end luxury real estate market in Hong Kong is smashing all-time records, the rest of the market is still rebounding from the Asian financial crisis in 1997 and the effects of the SARS outbreak in 2003. The gap between the two markets is widening. "The needs and demands of Hong Kong people are upgrading," says Wong. Developers, such as 12 Mount Kellett's Sun Hung Kai, are responding by raising the levels of luxury. Their latest 22-house property on the market, known as Severn 8, includes a swimming pool, spa, gym and resident clubhouse. It recently sold for over $4,600 per square foot. The only residence more expensive in all of Hong Kong is a single mansion in Shek O, valued at about $6,000 per square foot. Where is Shek O located? It's a beach town at the southern tip of Hong Kong Island -- scenic but, unlike The Peak, far from convenient to the rest of the city. Leases Longer Than Life There are no restrictions preventing foreigners from buying property in Hong Kong and there are also no advantages for the locals. To call one of these properties home, all you need is the money. "It's the free-est economy in the world." says Lau. But there is one small technicality per the government. When buying property in Hong Kong, you don't officially own the land -- you're renting it from the government. As of Hong Kong's return to China in 1997, newly granted leases generally last for 50 years. That might seem pretty long, but not compared to the early days, when leases were for terms of 75, 99 or 999 years. So Who Are All These High Rollers? "The buyers come from all over the world," says Lau, listing the likes of top executives, investment bankers with fat bonuses, and investment fund managers. There are more Chinese buyers than before. Stronger ties with the mainland -- in cities like Beijing, Shanghai, Guangzhou and Shenzhen -- and the success of businesses there have changed the faces of buyers over time. While many Chinese manufacturers and factory owners have businesses on the mainland and have bought second homes there for investments, most continue to keep their main residence in Hong Kong for the quality of life. "Hong Kong is still the financial center of China," says Lau. As for up-and-coming neighborhoods, for those of us who can't afford The Peak, Lau suggests West Kowloon, across the harbor from Hong Kong Island and where the old Kai Tak airport used to be. The former airport area is all reclamation land that didn't exist before 1997, and buildings no longer have height restrictions there. "It's very interesting," says Lau, "because for many Hong Kong people, they've never had the experience of looking at the view of Hong Kong Island from the Kowloon side from 30-story buildings." From the way the market is trending, it looks like that is not the only thing those of us in Hong Kong have to look forward to. http://abcnews.go.com/Business/FunMoney/story?id=2773844&page=1 By Asher Levine
| SAO PAULO SAO PAULO Brazil's once red-hot housing market has turned cold quickly, forcing many developers to slam the brakes on new construction, though one corner of the industry is so far riding out the nation's worsening economic slump. The Brazilian real estate market is witnessing a drastic reversal from four years ago, when an economic boom lifted millions into an expanded middle class and fueled a home-buying frenzy that pushed prices up by as much as 30 percent on an annual basis. At the time, developers like Cyrela Brazil Realty SA and Rossi Residencial SA, flush with cash from recent initial public offerings, launched into a building binge of middle- and high-income housing to meet what they expected would be continuously growing demand. "Now things are moving in the exact opposite direction," said Sao Paulo-based economist Eduardo Zylberstajn, who helps oversee the widely used FipeZap real estate price index. Economic decline, stubborn inflation, rising mortgage rates and mounting unemployment have dragged consumer confidence to the lowest level on record, scaring many Brazilians out of their plans to invest in real estate and sinking prices along the way. "It's a perfect storm," said Itau BBA analyst Enrico Trotta, who also pointed out scarcer mortgage funding and the high number of apartments collecting dust following the industry's overly optimistic expansion. STRONG DEMAND FOR LOW-INCOME HOUSING But not every homebuilder is suffering. Those with a focus on the low-income segment, such as MRV Engenharia SA and Gafisa SA's Tenda division, have been reporting strong sales even as Brazil wades into its worst recession in 25 years. "There is still gigantic pent-up demand in the low-income market," Trotta said, citing Brazil's housing deficit, broadly estimated at upwards of 4 million homes, and the financial support of a government housing subsidy program known as My House, My Life. Brazilian President Dilma Rousseff has pledged the program, budgeted at 13 billion reais ($3.73 billion) for this year alone, will be shielded from further rounds of government budget cuts, citing its broader economic benefits. MRV shares are flat this year, compared with Brazil's benchmark stock index, which has lost 2 percent, while Gafisa is up 14 percent. That contrasts with a 20 percent decline in Cyrela stock and a 76 percent fall in Rossi shares. Tenda plans to launch new projects valued at up to 2 billion reais by the end of 2016, executives told reporters on a conference call on Monday. Trotta warned, however, that stronger demand in the lower end of the market may dwindle should the government follow through with a proposed change to financing rules. Currently, the real estate industry benefits from a government-mandated, employer-financed workers' severance fund that can be used to finance home purchases, an especially tempting option because the fund's returns lag inflation. But under the proposed change, the government would raise the returns it pays on each worker's account, erasing the incentive to buy a home. The bill is expected to be voted on in coming weeks. LESS LUCRATIVE INVESTMENT As for the broader property market, most analysts do not see prices recovering over the short term, in part because of the rising opportunity cost of holding real estate as an investment. Brazil's central bank pushed interest rates to a nine-year http://sammcoappraisalgroup.weebly.com high last month, making the average rental yield of about 4.7 percent far less lucrative than the 9.2 percent return on a simple savings account. The savings account also comes without the risk of a drawn-out and costly eviction procedure should a tenant fail to pay rent. Already-reticent buyers have sensed their strengthened bargaining power, which they are using to demand discounts of up to 30 percent on some apartments "We have to explain the reality of the market to sellers nowadays," said independent Sao Paulo-based broker Milena Moreira. "Some just don't believe it." ($1 = 3.4813 Brazilian reais) (Editing by Christian Plumb and Matthew Lewis) http://www.reuters.com/article/us-brazil-homebuilders-crisis-idUSKCN0QF1P620150810 |
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