Alex Veiga, AP Real Estate Writer
USA Today

LOS ANGELES — More than 1 million U.S. households could lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans, according to RealtyTrac, a foreclosure tracking service.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, RealtyTrac says.

“That would be unprecedented,” said Rick Sharga, a senior vice president at RealtyTrac.

Historically, lenders have taken over about 100,000 homes a year, Sharga said.

The surge in home repossessions reflects the dynamic of a foreclosure crisis that has shown signs of leveling off in recent months, but remains a crippling drag on the housing market.

The pace of new properties entering foreclosure slowed as banks let delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. But at the same time, lenders have stepped up repossessions to clear out the backlog of distressed inventory on their books.

The number of households facing foreclosure in the first half of the year climbed 8% vs. the period last year, but dropped 5% from the last six months of 2009, according to RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions.

In all, about 1.7 million homeowners received a foreclosure-related warning between January and June. That translates to one in 78 U.S. homes.

Foreclosure notices declined in April, May and June, but Sharga cautions not to read too much into that.

“The banks are really sort of controlling or managing the dial on how fast these things get processed so they can ultimately manage the inventory of distressed assets on the market,” he said.

On average, it takes about 15 months for a home loan to go from being 30 days late to the property being foreclosed and sold, according to Lender Processing Services, which tracks mortgages.

Assuming the U.S. economy doesn’t worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties they have on their books now.

And a new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn’t improve fast enough to lift home sales.

The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.

Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties.

“The downward pressure from foreclosures will persist and prices will be very weak well into 2012,” said Celia Chen, senior director of Moody’s Economy.com.

She projects home prices will fall as much as 6% the next 12 months from where they were in the first quarter.

Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures this year. Initially, lax lending standards were the culprit. Now, homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures.

There are more than 7.3 million home loans in some stage of delinquency, according to Lender Processing Services.

Lenders are offering to help some homeowners modify their loans. But many borrowers can’t qualify or they are falling back into default. The Obama administration’s $75 billion foreclosure prevention effort has made only a small dent in the problem.

More than a third of the 1.2 million borrowers who have enrolled in the government’s mortgage modification program have dropped out. That compares with about 27% who have received permanent loan modifications and are making payments on time.

Among states, Nevada posted the highest foreclosure rate in the first half of the year. One in 17 households there received a foreclosure notice. However, foreclosures there are down 6% from a year earlier.

Arizona, Florida, California and Utah were next among states with the highest foreclosure rates. Rounding out the top 10 were Georgia, Michigan, Idaho, Illinois and Colorado.

Copyright 2010 The Associated Press. All rights reserved

 

Some neighbours don’t like plan

Sam Cooper
Province

Does a dilapidated warehouse with gaping holes in the roof really have “heritage” value?

That’s just one of the questions being asked by some business owners riled by a development plan that would trade heritage preservation for an exceptionally tall condo tower in Vancouver’s southeast False Creek.

The rezoning proposal by Bastion Development involves rehabilitation and official heritage designation for the Opsal Steel building — “a prime example of early-1900s construction,” according to the developer — in exchange for bonus density and height in two proposed residential towers flanking the red, barn-like structure.

The plan for a 12-storey tower at 15 East 2nd Avenue and a 24-storey tower at 97 East 2nd Avenue goes to a public hearing next Tuesday at city hall.

Michael Naylor, senior re-zoning planner, said some business owners in the area have complained about the height of the 24-storey tower, which exceeds the area’s 15-storey limit.

A staff report calls the response “significant” — since previous rezoning applications in the area have generated no interest from neighbours.

Tom Shiffman, landlord of a property directly across 2nd Avenue from Opsal Steel, said he doesn’t know “how something that is practically ready to fall down retains heritage status,” adding that the rehabilitation plan for the rickety 1918 structure is “a bit laughable.”

“They’re talking about disassembling the building and using the lumber to make a new building,” he said.

Shiffman said he supports redevelopment of the site, but argues that a 24-storey tower on 2nd Avenue will open the way for “a big wall of towers on one side and the little industrial ghetto they want to maintain with no views on the other side.”

Preet Marwaha of nearby Organic Lives restaurant said he doesn’t have a problem with a 24-storey tower as long as Opsal Steel is dismantled, because his clients hate looking at it.

“The building is not much of a landmark. At the end of the day, it’s an eyesore,” Marwaha said.

The developer did not respond to an interview request by deadline.

Kelly Sinoski
Sun

While some municipalities like West Vancouver are buying back waterfront for public recreation, Fort Langley residents are fighting to save the community’s last strip of riverfront.

Residents in the Fraser Valley heritage town have come out en masse — packing three nights of public hearings — to oppose a revamped rezoning by ParkLane Homes to build a pair of four-storey condo and townhouse blocks on the river as part of the final phase of the Bedford Landing development.

They argue the 77-unit development is not what the developer promised, and will create “an urban wall” on the river, with little place for the public to play.

“Our thought is we have such a beautiful resource, this riverfront, left and it’s a shame to squander it,” said resident Connie Blundy, who lives in a house on the Bedford Landing development. “Everyone would like there to be a plan for tasteful development recognizing that the fort is a national heritage site.”

Residents say they aren’t opposed to development on the site but are frustrated with council’s decisions to allow ParkLane to change the game plan as it goes along.

The developer had originally proposed to build a 75-unit boutique hotel near Glover Road with a Granville Islandstyle market that would have allowed more public access on the riverfront. It has since revised the project to include adult-only apartments, saying the hotel isn’t feasible.

But Blundy wonders, if council approves the latest rezoning, what will be next. Residents already feel betrayed, she said, after council allowed the developer to increase the size of its first apartment complex at Bedford Landing from three storeys to four. “Those of us [living in Bedford] are somewhat displeased by the look of this four-storey apartment building,” she said.

Residents have made some headway with their fight. Langley Township this week delayed its vote on giving the proposal a third reading, which would have rubber-stamped the project, and instead sent it back to staff to work with the developer on possible alternatives.

Deana Grinnell, ParkLane’s director for land development, said council’s decision will give ParkLane another opportunity to analyze the community’s concerns and see if there are ways to address them.

She noted the development includes a “fair chunk of public realm” — with parkland already designated — but acknowledged the public may not have the same view as the developer as to accessibility.

Council isn’t expected to hear back from staff until September.

“When there’s a delay it’s always a concern but at the same time a reiteration like this results in a better plan,” Grinnell said. “At times this does happen … we’ll see how we can strengthen [the plan].”

Mayor Rick Green said the contentious issue has brought to his attention the need to reconsider reactivating the township’s waterfront development planning process, in conjunction with a review of the area’s Official Community Plan.

While he wouldn’t discuss the ParkLane rezoning as it’s still before council, he said he understands residents’ concerns. “It’s probably one of the most important properties left available in Langley Township, mainly because it’s waterfront,” he said.

Langley Township Coun. Kim Richter agreed. She noted only about 10 per cent of all rezoning applications are contentious, but those are the ones that need extra scrutiny. “There needs to be more consultation with the community over what’s happening with the waterfront,” she said.

“One of the concerns the public raised is if this particular rezoning goes through it’s going to block off a large portion of the waterfront. “

Cheryl MacIntosh of the Fort Langley Canoe Club said her club has no issue with the development as far as their boats go since the developer has improved the boat launch area.

But she worries some future residents might take issue with the noise of local regattas and club meets.

As well, she said, having the backside of an apartment building backing on to the water and the Fort to Fort trail won’t be very inviting to tourists or visitors walking along the water.

“It’s a beautiful waterfront and let’s try to keep it as accessible for everyone we can,” she said, but added: “It is private property.”

Fort Langley‘s battle underscores a continuing struggle in Metro Vancouver as the region grapples with balancing growth and development with public amenities.

West Vancouver, for instance, continues to acquire land for a proposed Ambleside waterfront plan to provide more public use and the “creation of a vibrant and active waterfront.”

It has already initiated a number of projects to boost public access this summer, including an extension of the seawalk from John Lawson Park to 15th and the demolition of one of two publicly owned houses on the waterfront. According to the city’s website it now owns more waterfront land than it ever has.

Meanwhile, Wendy Dadalt, of Metro Vancouver parks, said the regional district is also working with municipalities to acquire waterfront land to provide public trails and green-ways through the different communities.

© Copyright (c) The Vancouver Sun

Superb indoor-outdoor living

Province

THE FACTS

Jewel II

WHAT: 98 homes (95 condos and three town homes)

WHERE: Central Park, Burnaby DEVELOPER: Boffo Developments Ltd.

SIZE: 750 sq. ft. -1,855 sq. ft.

PRICES: from $398,800 for one bedroom and den; $498,800 for two bedroom; $618,800 for three bedroom

OPEN: Sales centre -6130 Wilson Avenue

HOURS: noon -5 p.m., Sat –ThursJewel, the luxury tower from Boffo Developments in Burnaby, enjoys a location that might be considered just about ideal for many city-dwellers. There’s an expansive park directly to the west and one of the biggest shopping districts in Greater Vancouver to the east.

Central Park is the 220-acre wooded playground that’s next door. The shopping district is the Metrotown retail hub, just two blocks away.

Jewel II, which will be Boffo’s sister tower to the Jewel’s luxury residences, will be similarly positioned: also close to the Patterson SkyTrain station, the Crystal Mall, and the other commercial hot spots on Kingsway.

Karen West and Ivan Tsao, members of the Jewel II sales and marketing team, are proud to show off the main attraction of both Jewel developments — the view from the penthouse suite. To some extent, the view will be similar for homeowners in lower floors, they say.

Central Park, the pretty suburban sister to Vancouver’s Stanley Park, is popular among athletes who run and bike its trails, and families and large social and community groups often seen staging large picnics and events near its large playground, green space and lakes.

Tsao notes the size of the balconies, designed to take advantage of the urban/forest location.

The smallest balcony in the Jewel towers measures 150 square feet, more than double the size of the average apartment balcony, Tsao says.

“We wanted the integration of indoor and outdoor living,” he says.

There are natural gas hookups for barbecues and heat lamps.

And while the outdoors is a major draw for this development, Boffo has incorporated some high-end finishing touches in the interiors.

Kitchens, which overlook dining and living areas in condominiums and town houses, are complete with Miele appliances and Subzero freezers. They come with standard microwaves and appliances, and built-in wine coolers. Counters are topped with granite and floors with porcelain tile.

Nine-foot ceilings top large windows, over-height interior doors, and hardwood floors. Jewel’s amenities include a spa with hot tub and steam room, a fitness studio, and an entertainment lounge with a kitchen and outdoor patio.

 © Copyright (c) The Province

Highrises are Singapore family’s fifth development in the Garden City in more than 25 years

Suzannah Millette
Sun

EMERALD

Project location: Richmond

Project size: 227 apartments and townhouses, 2 towers

Residence size: 1-bed apartment, 527 sq. ft. -653 sq. ft. -4-bed+ townhouse, 1,935 sq. ft. -1,983 sq. ft.

Prices: from $293,000

Sales centre address: 7180 No. 3 Road

Hours: noon -5 p.m. Sat -Thu

Telephone: 604-244-8333

E-mail: [email protected]

Web: emeraldrichmond. com

Developer: Bennett Group

Architect: Iredale Group Architecture

Interior design: Portico Design Group

Tentative occupancy: Late 2012

—

The Emerald new-home project is a memorable expression of attachment to Richmond by international money.

“We have been in love with Richmond from our very first project here in 1984,” says Liu Shek Yuen of The Bennett Group.

The Bennett Group is owned by the Lius, a Singapore family, with developments completed or underway in London, New York, Seattle, Singapore and Hong Kong.

Liu Shek Yuen and his wife, Emily, discovered Richmond during a world tour three decades ago.

Their first development in Richmond, a townhouse development, was located on Bennett Road. Emerald is the company’s fifth Richmond development.

Richmond City Hall is a fan of the Lius, with the family’s decision to build a dozen affordable homes at the Emerald especially endearing — the family did not have to build the homes.

Brian Jackson, the city’s director of development, says the Emerald had passed the permitting process before the city introduced a social-housing requirement for all new residential developments. ” … but the Liu family still stepped up to the plate.”

The Bennett Group has also contributed to public art, city amenities and civic services like roads. As part of the new City Action Plan, these donations are now required by all developers who want to build in the Garden City.

Emerald architect Richard Iredale is a master of west coast architecture. His commissions include the Adventure Centre in Squamish, the restoration of Christ Church Cathedral Vancouver, and several projects with native bands.

So, is his very west coast vocabulary speaking to the Asian-Canadian community of Richmond?

“To some extent British Columbia is an Asian transplant as a culture, [firstly] because of the first nations who crossed over from Asia,” Iredale says.

“There is that reverence for nature in both cultures. It’s a cultural continuum from Asia to the West Coast. It’s a sense of respect and delight in natural materials.”

Like American architect Frank Lloyd Wright, Iredale is a fan of Chinese and Japanese architecture which, he says, “has a Wright feel. But then [Wright] borrowed heavily from Japanese architecture. There’s a very strong roof form and a sense of cascading roofs and successive planes. The wall elements tend to stop short of the roof. You see that in Nepal and India and China, and their buildings are inspired by the shape of a tree.”

All of these elements have been incorporated into the Emerald design.

“The towers themselves were designed with the idea of a tree with its branches that get thinner and thinner as you move upward.

“So they start very strong with these kind of pier elements interspersed with glass, and then as you move up the piers sort of stop and the glass gets wider and [it looks like] the thinning out of the branches until you get to the roof. The roof is like this canopy of foliage floating overtop of the trunks.”

The roof does look a bit like a tree, thanks in part to the wood soffits. The undersides of the roofs and larger balconies will be done in cedar. The exterior of the townhouses will be clad with cedar veneer.

“So again, you’ll get a sense of wood permeating the project.”

Iredale also used clay brick on the townhouses, a material he’s quick to point out is a traditional B.C. material. About the project, he says: “it’s West Coast.”

The head of marketing for the Emerald, Arthur Chow, says there could have been a third tower where the garden is ” … but (Iredale) said, ‘No, I want more open space.'”

Iredale thinks that decision means “this project will set a bit of a standard for quality of landscaping in Richmond.”

Liu thinks the grounds will contribute to property appreciation in the years ahead. “Property surrounding Central Park in Manhattan and Hyde Park in London are always in demand,” he says. “We wanted to create our own park within the Emerald.”

City planner Jackson says the developers ground-level intentions have impressed city hall. The manicured streetscape, complete with front porches, are especially welcome. “Richmond is developing a much more urban streetscape than in the past,” he says. “We want residential units at grade -at the street level.” Like Yaletown? “Yes. We’re creating an urban downtown.”

Much of the green space will hide two levels of parking. In the past, the city has allowed four and six-storey parking garages at ground level, an eyesore Iredale is proud to have buried: “It’s the best thing we’ve been able to do here.”

Jackson expects the Emerald parking will be the standard moving forward.

“We’re doing whatever we can to encourage it. The city is definitely moving away from parking garages. Hiding them is very expensive, so we’re working with developers to balance cost and esthetics.”

Emerald buyers are both international and local, Chow reports. “A lot of empty-nesters are selling their houses in Richmond or Vancouver — the westside — and they’re buying the townhouses,” he says. “It’s been a good mixture.”

With buyers coming from as far away as New York, Ottawa, Edmonton and Calgary and from around B.C. the Emerald development is a promise of sold-out towers before the first trees are planted.

© Copyright (c) The Vancouver Sun