“This was originally contemplated as something you could draw money from over a long period of time, as a way of supplementing your income or providing income when you had not others. Now a lot of people are looking to reverse mortgages as a quick fix,” said David Certner of AARP.

About 9.5 percent of the 775,000 reverse mortgages outstanding are delinquent, far higher than the rate on regular mortgage loans. While lenders are pushing them aggressively, fewer are being made today, due to the drop in home values. Advocates say they can be a valuable tool, if used correctly, and that there are ample safeguards.

(Read More: Rising Mortgage Rates Amid Fed Fears)

“The reverse mortgage, unlike any other financial service in the United States, requires every single borrower, prospective borrower to go before an independent third party reverse mortgage counselor at a HUD-approved, HUD-funded counseling agency prior to even making an application for the loan,” claimed Bell. “So where somebody is coming off title would be in a discussion.”

The Consumer Financial Protection Bureau is now looking at new rules to protect consumers, which could include stricter supervision of lenders and more transparency for borrowers.

“It’s a balancing issue, you want to make sure that people have access to credit or the help they need or even those who may need a reverse mortgage, but you also want to make sure that one, people not getting reverse mortgage when it’s not the right product for them and two that when they are getting the product they are getting the best one that’s available for them,” explained Certner.

Those changes could go a long way to help seniors benefit from the loans, but they would likely be too late for Robert Bennett.

“I guess I could make it somewhere else, but I would walk away empty.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100788816

“This was originally contemplated as something you could draw money from over a long period of time, as a way of supplementing your income or providing income when you had not others. Now a lot of people are looking to reverse mortgages as a quick fix,” said David Certner of AARP.

About 9.5 percent of the 775,000 reverse mortgages outstanding are delinquent, far higher than the rate on regular mortgage loans. While lenders are pushing them aggressively, fewer are being made today, due to the drop in home values. Advocates say they can be a valuable tool, if used correctly, and that there are ample safeguards.

(Read More: Rising Mortgage Rates Amid Fed Fears)

“The reverse mortgage, unlike any other financial service in the United States, requires every single borrower, prospective borrower to go before an independent third party reverse mortgage counselor at a HUD-approved, HUD-funded counseling agency prior to even making an application for the loan,” claimed Bell. “So where somebody is coming off title would be in a discussion.”

The Consumer Financial Protection Bureau is now looking at new rules to protect consumers, which could include stricter supervision of lenders and more transparency for borrowers.

“It’s a balancing issue, you want to make sure that people have access to credit or the help they need or even those who may need a reverse mortgage, but you also want to make sure that one, people not getting reverse mortgage when it’s not the right product for them and two that when they are getting the product they are getting the best one that’s available for them,” explained Certner.

Those changes could go a long way to help seniors benefit from the loans, but they would likely be too late for Robert Bennett.

“I guess I could make it somewhere else, but I would walk away empty.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100788816

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The state Assembly and Senate passed the usual flurry of bills on May 31, the last day for initial-house approval, with some unusual drama that temporarily sidelined a medical-marijuana bill by Assemblymember Tom Ammiano.

By the time it was all over, several other Ammiano bills passed, a measure by Assemblymember Phil Ting to ease the way for a Warriors arena on the waterfront won approval, and state Sen. Mark Leno got most of his major legislation through.

The pot bill, AB 473, would have established a state regulatory framework for medical cannabis, something that most advocates and providers support. Still, because the subject is marijuana, it was no easy sell — and at first, a lot of members, both Republicans and Democrats, expressed concern that the measure might restrict the ability of local government to ban or limit dispensaries.

Ammiano, in presenting the bill, made it clear that it had no impact on local control, and that was enough to get 38 votes. Typically, when a bill is that close to passage, the chair asks the sponsor if he or she wants to “hold the call” — that is, freeze the vote for a few minutes so supporters can make sure all of their allies are actually on the floor and voting and to try, if necessary, to round up a couple of wobblers.

In this case, though, Speaker Pro Tem Nora Campos, of San Jose, simply gaveled the vote to a close while Ammiano was scrambling to get her to hold it. “That’s very unusual, not good behavior,” one Sacramento insider told me.

Ammiano was more respectful toward Campos, simply calling it a “procedural mistake.” He told us he would be looking for other ways to move the bill. “The door is never fully closed up here,” he said.

However that turns out, the veteran Assemblymember, now in his final term, won a resounding victory with the passage of his Domestic Workers Bill of Rights, AB 241. The bill would give domestic workers some of the same labor rights as other employees, including the right to overtime pay and breaks. “These workers, who are mostly women, keep our households running smoothly, care for our children, and enable people with disabilities to live at home and remain engaged in our communities,” Ammiano said. “Why shouldn’t they have overtime protections like the average barista or gas station attendant?”

An Ammiano bill restricting the ability of prosecutors to use condom possession as evidence in prostitution cases also cleared, as did a bill tightening safety rules on firearms.

Ting’s bill, AB 1273, would allow the state Legislature, not the Bay Conservation and Development Commission, to make a key finding on whether the new area is appropriate for the shoreline. Mayor Ed Lee and the Warriors strongly backed the measure, clearly believing it would make the path to development easier. Ammiano voted against it — showing that the San Francisco delegation is by no means unanimous on this issue.

Leno had a string of significant victories. A bill called the Disclose Act, which would mandate that all campaign ads reveal, in large, readable type, who is actually paying for them, cleared with the precise two-thirds majority needed — and it was a straight party-line vote. Every single Republican was in opposition. “They know that if their ads say “paid for by Chevron and PGE, the won’t work as well,” Leno told us.

He also won approval for a bill that would ease the way for people wrongfully imprisoned for crimes they didn’t commit to receive the modest $100 a day payment the state theoretically owes them. There are 132 people cleared of crimes and released from prison, but the process of applying for the payment is currently so onerous that only 11 have actually gotten a penny. “We victimized these people, and we shouldn’t make them prove their innocence twice,” Leno said.

Bills to better monitor price manipulation by oil companies and to expand the trauma recovery program pioneered by San Francisco General Hospital also cleared the Senate floor.

But Leno had a disappointing loss, too: A bill that would have helped tenants collect on security deposits that landlords wrongfully withheld died with only 12 vote — a sign of how powerful the real-estate industry remains in Sacramento.

Article source: http://www.sfbg.com/politics/2013/06/03/some-wins-some-losses-sacto

It may seem impossible in one of the least-affordable real estate markets in the country. Except for city charter schools.

For the past 10 years, the alternative public schools have paid a relative pittance to rent space from the school district.

At 95 cents per square foot annually, the district was nearly $2 below Oakland’s charter school rental rate, $5 shy of Los Angeles and nearly $8 less than Berkeley, which has only one charter school that rents space.

To rent on the retail market would cost a school around 15 times what San Francisco Unified charges charters.

San Francisco district officials, who hadn’t raised charter school rent in five years, realized this year that they could charge more under state law and decided to triple the rent to $2.79, phasing in the increase over two years.

Eight charter schools will be hit with the increase, generating an additional $500,000 a year for the district. But charter schools and their advocates say any rent increase will have an impact on what happens in the classroom.

“For example, a school with a 20,000-square-foot facility would incur an increase of $34,400 per year for facilities expenses,” said Hilary Harmssen, the Bay Area regional director for the state charter association. “California Charter Schools Association schools would likely need to divert funds that are currently invested in the classroom for teachers, books and other learning materials.”

Rent parameters

Districts are allowed to charge charter schools what they spend per square foot to maintain buildings and grounds, costs that include security, maintenance, trash removal, gardening and custodial services.

In 2011, the district surveyed other Bay Area districts and found the wide discrepancy. Most charged between $2 and $4 per square foot, said district spokeswoman Gentle Blythe.

“This decision was reached after carefully reviewing similar practices in other districts, many of which we learned charge higher rates based on a different methodology than SFUSD had previously been using,” Blythe said.

San Francisco school board members said they were surprised to learn the district, for years, has been charging charters far less than other cities, where land isn’t worth nearly as much.

Charter schools have until May 1 to let the districts know whether they will stay or go.

District officials, however, were largely unsympathetic to the impacts on the city’s charter schools.

Fiscal responsibility

“Our budget has been slashed every year,” said school board member Jill Wynns. “There’s a lot of political pressure to just be nice to (charter schools). There’s nice and there’s bordering on fiscally irresponsible.”

At Gateway Public Schools, which has operated a charter high school in the city for 15 years and a middle school, officials were trying to figure out how to cover a $100,000 rent increase each of the next two school years.

“On the one hand I understand (the district’s) perspective,” said Sharon Olken, the executive director of the schools, which serve about 600 students. “They have a financial responsibility just as we do.”

And it was a bit of a wake-up call when Olken went looking for space in the retail world and found that commercial space costs $1.25 per square foot – per month.

“It was a sobering statistic,” she said. At the same time, “no one expects their rent to triple in two years. We budget an increase each year to account for inflation. That’s obviously not 200 percent.”

The increase over two years is the equivalent of about three teachers, Olken said.

“What I said to the district is from our perspective what we assumed was a fixed cost tripled,” she said. “Regardless what it started at, we are talking about real dollars that affect every student in our school.”

Jill Tucker is a San Francisco Chronicle staff writer. E-mail: jtucker@sfchronicle.com

Article source: http://www.sfgate.com/bayarea/article/S-F-district-raises-charter-school-rent-4283891.php

Compared to second-quarter data from 2010, rents rose 8.6 percent in San Francisco and 9.3 percent in San Mateo County, for monthly averages of $2,400 and $1,800 respectively.

The trend can be pegged to a dwindling rental supply and increasing demand from new workers with high-paying jobs, according to RealFacts owner Sarah Bridge.

“Talent is coming into the area. It’s not that there are so many jobs, but the ones out there are paying well,” Bridge said, adding that although the new tech boom is similar to the dot-com bubble of 2000, it is bringing workers with a more experiential, less materialistic mindset. “They’re not big into being tied down to a big piece of real estate.”

According to the real estate data aggregator Zillow.com, 480 homes were sold in San Francisco in May, down 22 percent in a year-over-year comparison. Meanwhile, RealFacts data show supply running out in San Francisco and San Mateo County, both with a 96 percent occupancy rate, up 6 percent and 1 percent, respectively.

The factors are helping San Francisco maintain its status as one of the most expensive big-city rental markets in the country, which has advocates for current tenants taking notice.

“It’s making it a landlord’s market,” said Ted Gullicksen, executive director of the San Francisco Tenants Union. “We could see more evictions, more tenant buyouts.”

Gullicksen said although The City’s rent-control standards keep some costs in check for renters, state law prevents the controls from being applied to units themselves. Like in 2000, Gullicksen said, he fears without cheaper options, residents could be pushed to the outskirts of the Bay Area.

“I think we’re headed back in that direction,” he said.

Of the 43 markets examined by RealFacts, 41 posted rent increases, with the biggest gains seen in the Bay Area. San Jose, the unofficial capital of Silicon Valley, experienced the largest increase at 6.6 percent, up from $1,650 to $1,759 per month.

dschreiber@sfexaminer.com

Average rent per unit type

Average rent increase

Source: RealFacts

Article source: http://www.sfexaminer.com/local/peninsula/2011/07/influx-workers-drives-rental-rates-san-francisco-and-san-mateo-county