THE LANDLORD DAILY ARCHIVES

An Exclusive Presentation of Landlord.com

FEBRUARY 2000 ARCHIVES 

02-29-00, Tuesday

PERKSATWORK SELECTED

RE/MAX has decided to provide each of its 46,000 agents and 20,000 support staff with perksatwork.com portals.  Perksatwork.com will enhance RE/MAX’s Mainstreet extranet site.  It provides discounts, on line products, etc.  

iPIX TO PARTNER WITH CB

Many Coldwell Banker companies nationwide are partnering with iPIX.  iPIX will provide Virtual Tours™ to enhance Coldwell Banker’s marketing efforts.

NEW CANDLEWOOD IN VEGAS

Candlewood Suites has opened a new 277 room hotel in Las Vegas.  The new facility eschews the usual Vegas ambiance – no casino, big crowds, shows – instead offering guests roomy suites, convenient parking, and amenities obviously aimed at the business traveler.  

MILLS MAKES DEAL WITH SAKS

The Mills Corporation and Saks have made a deal to open five new Saks OFF FIFTH in new malls to be developed by Mills.  The first store will open at Arundel Mills, near Baltimore, slated for completion in November of this year.  

BIDCOM NAMES NEW PREZ

Bidcom announced the appointment of Doug Sabella as president and CEO.  Daryl Magana, former president and founder, will remain on the board of directors.  PRNewswire describes Bidcom’s business thus:  “Bidcom, Inc., [is] the building and real estate industry's leading e-business services provider, helps companies manage risk, drive down costs, and complete building projects on time.”  

YAHOO! TO TEAM WITH NEWS CORP.?

Yahoo!’s long standing commitment to independence may be coming to an end, reports the San Francisco Chronicle.  Concerned that the AOL-Time Warner merger may have the effect of locking it out of some cable markets, Yahoo! is engaged in talks with News Corp., Rupert Murdoch’s media conglomerate.

LEANING TOWER STABLE

Scientists and engineers charged with saving the Leaning Tower of Pisa from collapse have announced preliminary success.  For the first time in 800 years, the tower has stopped increasing its tilt and has been stable for the last three months.  This is the culmination of a decade of work.  Now efforts will be concentrated on removal of about 18 inches of the tower’s tilt, and reopening the landmark to the public.  

PUSH FOR NET TAXES CONTINUES

Imperator Clintonius Maximus has announced that he is not against imposition of sales taxes on Internet transactions.  Of course, sales taxes are already imposed on Internet transactions by states that have them, it is just that out of state Internet companies are not obligated to be the states’ uncompensated tax collectors.  For the first time in history the realities of distance and time have been conquered by technology, that is, it is possible to buy something from a firm in New York and have it delivered in Oregon next day.  This means that states cannot rely on remoteness to put a curb on out of state purchases.  This also means that the states cannot impose sales taxes and rely on the tyranny of geography to insulate them from states with more enlightened tax policies.  In reality, we have become a nationwide market.  Local sales taxes, beyond the limits of what is required to pay for police, fire, streets, and other facilities and services needed to support local businesses, are no longer viable, as they will simply drive business away.  Other taxing vehicles will have to be found to substitute, if a substitute is really needed. But taxes are not the only threat Internet freedom faces.  See our article on H.R. 354 and then follow the link to send your own Congressman and Senators an e-mail with your thoughts. 

NEW KOSOVO SUCCESS

The brilliant NATO mission to bring peace and democracy to Kosovo has scored yet another success.  Now, the US has refused to commit American troops to northern Mitrovica, where friction between Serbs and Albanians has increased in recent days.  The speculation is that the administration is concerned that the US troops, viewed as enemies by both sides, would suffer casualties, which would be embarrassing during an election year.  As a result, NATO’s and Kfor’s plans have been compromised, and more European troops may be called upon. 

THIS DATE IN HISTORY

In 1960, the first Playboy club, famous for waitresses very nearly clad in bunny outfits, opened in Chicago.

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02-28-00, Monday

CONSUMER FRAUD JUDGMENT

PR Newswire reports that a Philadelphia Court of Common Pleas jury has found against Robin Montgomery Realty to the tune of $2.6 million for consumer fraud.  The case was a class action brought on behalf of over 1500 low income residents of Philadelphia and surrounding areas.  RMR was accused of running a credit repair scam starting in 1994 in which they charged a nonrefundable flat fee of $600 regardless of results.  In the vast majority of the cases the results were alleged to be of no value to the consumers. Licensing proceedings have also been initiated against RMR as it files its appeal.

DOW CORRECTING

The DJIA is correcting or responding to Alan Greenspan’s latest threats and statements.  It closed last week at 9862.12, and the Nasdaq followed suit closing down at 4590.50.

HOME SALES DOWN

January’s index of existing home sales made the largest drop since 1995, falling to an annual rate of 4.59 million units.  This was the lowest annual rate since November, 1997, which was 4.39 million units.  Higher mortgage rates are generally thought to be to blame.

SHARES REDEEMED

Equity Residential Properties Trust announced that it will redeem its Series J Cumulative Convertible Shares of Beneficial Interest on March 3.  They will be redeemed at the rate of 0.6136 of a common share of Equity Residential for each share of series J.  

MRI EXPANDS IN ASIA

Management Reports International will be expanding their Asian operations by launching their MRI for Windows product in the Philippines on March 3.  MRI for Windows is a suite of applications that allow the user to manage his business. 

ON LINE REAL ESTATE ASSOCIATION

Last week we ran a brief item about the announcement of the On Line Real Estate Association.  Today, Realty Times runs a very skeptical column about the new organization that bears reading.  

DIALLO VERDICT

No, we will not comment on the propriety of the jury’s verdict in the unfortunate Diallo Case.  One item, however, not reported by the major news media deserves exposure.  The misconception of Diallo being shot by a fusillade of police bullets while on his back has been allowed to survive.  Here the President of the International Wound Ballistics Association explains why this is not so.  

ALBRIGHT NEXT PREZ?

While listening to the news on the radio yesterday I heard the announcement that Madeleine Albright was being promoted as a candidate for the next President.  Coming, as it did, while I was in mid sip of my screwdriver, I nearly choked to death, but then the announcer clarified that she was being considered as the next President of the Czech Republic.  I can live with that.  

HUD FRAUD

HUD Secretary Andrew Cuomo, who has been busily handing out political lollipops for favored politicians running for office, must be feeling the noose tighten.  HUD has been under investigation for years for alleged multi-billion dollar fraud in selling foreclosed subsidized properties.  Now it develops that over $5 billion in bids on this housing is missing, gone.  Cuomo claims that someone else took them.  Don’t they keep copies?  Contractors who have sued HUD for this fraud are hopping mad.  So should taxpayers be. For our final comment on the matter, see today’s Notable Quotable.  

THIS DATE IN HISTORY

February 28, 1916, the US makes a protectorate of Haiti, the first for the US.

February 27, 1827, New Orleans puts on the first Mardi Gras celebration.

February 26, 1815, Napoleon Bonaparte leaves Elba with 1200 of his men and begins the 100 Days, which will end in the Battle of Waterloo.

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02-25-00, Friday

OLYMPUS HOSPITALITY ACQUISITION

The Olympus Hospitality Group has acquired the portfolio of Chalet Susse.  Chalet Susse owns 27 hotels and has franchise arrangements in 7 more in Connecticut, Maine, Massachusetts, Maryland, New Hampshire, New York, Rhode Island, and Vermont.  This makes up a total of 4000 rooms.

FAF DIVIDEND

First American Financial Corporation has announced its quarterly dividend.  The dividend, payable on April 14 to shareholders of record as of March 31, will amount to $.06 per share of common stock. 

NEW BROADBAND AGREEMENT

OnSite Access, Inc. and The John Akridge Companies have announced an agreement whereby OnSite Access will provide broadband services to five commercial office buildings managed by Akridge in Washington D.C.  This agreement will give OnSite Access access to 900,000 square feet of office space.  

PINNACLES HOLDINGS PURCHASE

Pinnacle Holdings, a provider of wireless communications site rental space, has acquired 233 towers in 22 separate transactions for $100.5 million.  The largest number, 197, were acquired from Microcell Management, Inc.  

NEW CREDIT LAW FOR CALIFORNIA

New legislation has been introduced in California to require disclosure of credit scores to borrowers and to educate them how the scores were derived.  As with most laws, it also contains a mixture of other provisions.  Realty Times reports that the law is supported by NAR.  This law may impose requirements on California landlords who use credit reporting agencies to evaluate applicants.  We will be supplying an article on the subject as soon as we have had an opportunity to review the proposed law.

MORE TROOPS FOR KOSOVO

NATO intervention in Kosovo has been so successful at restoring civil government and suppressing friction between Serbs and Albanians, NATO is now calling for reinforcement of the already 37,000 troops stationed there.  Recent events in Mitrovica are probably at the bottom of it, and the whole situation is to be discussed at a meeting called for the purpose today in Brussels.  

IT’S BACK

The Y2K bug is back, only this time without the disaster mongers, still red-faced from the failure of all their predictions for January 1.  Analysts point out that you only get a leap year in a century end year once every 400 years.  It is believed that there may be some difficulty with privately generated computer programs developed during the late ‘70s and early ‘80s on February 29.  Overall, there is no fear of the end of the world this time.  

MAN BITES DOG, SORT OF

In Leicester, England, a man was struck by a bus, suffering substantial physical damage that prevented his working for over 3 months.  One would expect the pedestrian to sue the bus company to recover, which the man fully intended to do, submitting a tally of his losses to the bus company.  Imagine his surprise when he received a bill for about $850 for damage to the bus’s headlight and windshield. 

WTO RULES US TAX BREAK ILLEGAL

A World Trade Organization appellate panel has ruled that a Clinton Administration tax break targeted to foreign sales corporations is an illegal subsidy, prohibited by trade agreements with the WTO nations.  Apparently, Americans are going to be forced to reduce taxes generally, fairly, and for the benefit of all, not just for a few multi-national corporations.  What a concept.  

THIS DATE IN HISTORY

In 1913 the Sixteenth Amendment to the Constitution of the US was adopted bringing us all income taxes and the omnipotent IRS we all know and love.

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02-24-00, Thursday

TRI-NATIONAL NAMES LENDER

Tri-National Development Corp. has named Morgan Stanley Dean Witter as the preferred mortgage lender for its Youngtown Gardens development.  Youngtown Gardens is a 126 unit assisted living development in San Diego.

TWOMEY SELECTED

The St. Joe Company has announced the appointment of a new president.  Kevin Twomey will assume his new duties, which include responsibility for the day to day operations of the company, and retain his current post of chief financial officer.  

NEW ASSOCIATION FORMED

A number of on-line providers of real estate services have banded together to form the On Line Real Estate Association, they announced at Real Estate Connect 2000.  The idea is to provide a professional association to help improve the quality of real estate services on-line.  Founding members include Microsoft, Intuit's Quicken Loans, HomeGain, ImproveNet, Inman News Features, John L. Scott Real Estate.  

GAY FINANCIAL TEAMS WITH CENDANT

The Gay Financial Network, a leading on-line provider of financial news and information to homosexuals and lesbians, is forming a strategic relationship with Cendant, Business Wire reports.  The result will be gfnmortgage.com, a co-branded site using Cendant’s InstaMortgage.com, Cendant Mortgage's consumer-focused online mortgage brand.  

HOMESTORE LEADS

Homestore.com, Inc., may now actually be a company that is “leading” at something, and not just one whose PR flaks use the adjective because they cannot think of any other and cannot tolerate unmodified nouns.  Homestore’s network of sites providing on-line real estate and home goods and services attracted over 2.5 million unique visitors in January, and they collectively spent 66 million minutes visiting.  That makes Homestore by far the most visited and stickiest of its kind.

FOOD STAMP RULES RELAXED

Imperator Clintonius Maximus announced a change in the food stamp eligibility rules.  Under the old rule, if a family owned a motor vehicle worth more than $4650, then it was ineligible.  This may have been realistic when the rule was enacted 20 years ago, but not in today’s auto market.  In a breathtakingly rare display of good sense and apparent lack of self-interest, he announced that the total value of the car would no longer be a disqualification.  Instead, a limit would be placed on the amount of equity in the vehicle.  If you want people to work, you have to allow them a way to get there, he reasoned.  Remarkable.  

THIS DATE IN HISTORY

In 1821, Mexico wins its independence from Spain.

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02-23-00, Wednesday

FREE SITES FOR AGENTS

RealEstate.com has announced a new service.  Real estate agents can call a toll free number and be provided a free web site with national exposure.  The site is personalized with the agent’s picture, and provides on line services designed to enhance the agent’s ability to carry out transactions and engage in customer service.  

INTERACTIVEVISIT.COM FACELIFT

InterActiveVisit.com has made a major change in the services it provides and received a major influx of funds from Marcus & Millichap to carry forward their new ideas.  The company will change its name to BeCentric.com and its new technology will enable brokers, suppliers, homeowners, and buyers to set up and maintain Internet connections. 

ST JOE BUYING STOCK

St. Joe Company has announced that its board of directors has authorized a $150 million stock repurchase program.  The company just completed a stock repurchase program that netted 6.5 million shares.  There are still 85 million shares outstanding.

SUBURBAN LODGES RESULTS

Suburban Lodges of America, Inc., has announced its results for the year and quarter ended December 31, 1999.  Total revenues for the fourth quarter increased 27% over the previous years $13 million.  Total revenues for the year increased 42% to over $65 million.

HOMESPACE UPGRADE

HomeSpace, Inc., has announced that it will now provide home price information on its web site.  This new information will be offered through a strategic alliance with Domania.com and its Home Price Check.  The service is predicted to come on line in April.

MCCAIN THE WINNER

In Arizona and Michigan Sen. John McCain trounced Gov. George Bush and so beefed up his campaign for – what?  Arizona was pretty much a gimme.  In Michigan, more than half of the voters in the Republican primary were not Republicans.  These early cross over primaries are an embarrassment to the good government types (goo-goos) who proposed the idea.  The Democrats, who have a lead pipe cinch nominee in Gore are participating in the selection of the Republican nominee.  Of course, what goes around comes around, and this will not be the last election cycle.  We will see how delighted everybody when the respective positions are reversed.  There is something to be said for caucuses and plain old-fashioned smoke filled rooms.  Anyway, McCain wins with 30% of the Republican vote.  Where does he go from here with the remaining primaries mostly closed?

NEW PEACE PLAN ON THE WAY

The New York Post is reporting that the Mid-East peace deal that looked dead last week may now be agreed to in principal.  Under the terms of the agreement, Syria gets all of the Golan Heights and $15 billion from you.  Actually, Imperator Clintonius Maximus is giving it to them but you will pay for it. 

THIS DATE IN HISTORY

In 1836, the Mexican Army begins the siege of the Alamo.

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02-22-00, Tuesday

NEW RE CLOSING SITE

Realty Plus Online Inc. is announcing the launch of their new web site, CloseYourDeal.com as of this Friday. It is not quite the paperless real estate transaction, but claims to be the closest to it so far.  Realty Plus Online Inc., is based in Sacramento, but the current plan is to partner with entities serving other areas to make the new service generally available.

ATLANTA LED

Atlanta led the nation with 48,071 new residential building permits in 1999, followed by Phoenix and Chicago.  The gradual increase has slowed growth in housing starts, however, as total new permits dropped below their 1998 levels in the fourth quarter of 1999.

HOUSING COSTS UP

Shelter, fuels and utilities, and household furnishings conspired to drive housing costs up .3% in January, higher than the CPI, and a total of 2.7% for the 12 month period ending January, 2000.  The fuels and utilities index was up .5%, according to the Department of Labor, Bureau of Labor Statistics. 

NEW LUXURY HIGH RISE

Madison Capital Group LLC has arranged $9.2 million in financing for the acquisition of the land and some pre-development work for a West Palm Beach, Florida, project being initiated by American Land Housing Group.  The finished product is to be a 273 unit mixed use development in the downtown area.

NEW LEAD PAINT RULING

The Federal District Court for the Northern District of New York has ruled in  Sweet v. Sheehan (Case No. 97-CV-1666, Nov. 5, 1999), has ruled that lead paint disclosures should have begun in October of 1995, when Congress passed the mandatory disclosure law, and not September, 1996, the more liberal date decided upon by HUD and EPA.  This means that landlords and realty professionals who failed to disclose during that one year period might be liable for damages due to the non-disclosure during that one year period.  We will provide a full copy of the decision if it becomes available.  NAR is asking to be permitted to file an amicus curiae brief if the matter is appealed, as it undoubtedly will be.

CHINA THREATENS INVASION

Red China has threatened invasion, among other things, if Taiwan does not begin negotiating to return to mainland Chinese control.  Taiwan broke from China in 1949, and Red China has always taken the position the island will eventually return to Red China’s control, as has Macao and Hong Kong.  Now, however, the opposition party candidate is threatening to win the upcoming March elections in Taiwan, with the avowed policy of independence.  Analysts in Red China interpret the threat of invasion to apply only if Taiwan declares independence. 

NEW VIOLENCE IN KOSOVO

Not only are Albanians in Kosovo increasingly skirmishing with NATO troops, as we reported last week, but now, Albanians and Serbs are attempting to fight each other again, forcing the troops to get between them.  The latest incident occurred at a bridge in Mitrovica, where about 20,000 in total were itching to fight.  

THIS DATE IN HISTORY

February 22, 1832, George Washington was born.

February 21, 1631, Michael Romanov was elected the new Russian Tsar.

February 20, 1902, Ansel Adams, master photographer and noted conservationist, was born.

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02-21-00, Presidents’ Day Observed

PRESIDENTS’ DAY OBSERVED

We are observing President’s Day today and our next regular issue of the Daily will come tomorrow.  This does not mean there are not a few things to contemplate between buying discount sheets and pillowcases and shopping the car sellers for the best deals.  Follow us through the Holiday Edition of the Daily.

GUNS IN SLUMS

After 60 years as the nation’s largest slumlord, the Federal Government has figured out what the problem was all along.  The gun manufacturers have been forcing low income public housing residents to buy guns and then accidentally and intentionally shoot their fellow low housing residents with them.  None of the residents have any free will in this process, and the mere fact that the projects are the perfect Petri dish in which to culture criminals is irrelevant.  Read Chris Weinkopf’s comments here.  

TAX YOUR INTERNET - NOT

It is natural to think of the founding of the United States on President’s Day.  It is depressing to do so.  Our country grew out of outrage over a lousy 1 or 2 per cent tax on tea.  Now, Americans have become so docile that they cannot imagine any legitimate enterprise or activity that is not taxed.  Indeed, the current notion is that an enterprise must be taxed in order to be legitimate.  The Washington Post has an article today in which this attitude literally drips from every word.  It is a collection of views, pro and con taxation. “If it moves, tax it,” is not our attitude.  If you favor a free Internet and an honest, straightforward, and visible mode of taxation – so that people can see what they are paying – you also can protest.  See our article on HR 354 and you will also see that taxation is not the only issue we need to deal with. That article contains a link to a service which will allow you to e-mail your thoughts to your representative.

PRESIDENTS’ DAY

When I was young and dinosaurs roamed the Earth, Lincoln’s and Washington’s birthdays were observed separately.  Many rue the decision to combine the two into one Presidents’ Day.  Should we?  Consolidating the two holidays into one makes us think of the two men together, and to see the very great differences between them.  George Washington was the consummate ruler, Abraham Lincoln was, perhaps, our greatest leader.  While neither man was perfect, each was superb in his role.  Some thought about their roles may illuminate what we really want in our Presidents.

WASHINGTON’S DAY

Washington was the first under the then new Constitution, and must have been very cognizant of the fact that everything he did was a precedent.  To read his inaugurals and some of his papers is to realize that he saw himself as the ruler, i.e., one who makes a decision between alternatives when necessary and executes his office according to its description (the Constitution), and stays out of the way the rest of the time.  This was not to say that he was not also a very great leader.  It is regrettable that we can no longer ask the small band that followed him through the ordeal at Valley Forge why they did so.  He even impressed his enemies.  One old and illustrious British regiment, that was old and illustrious when the Revolution began, refused to inscribe any battle honors on its regimental colors.  Their explanation was that they could take no credit for fighting their brothers.

LINCOLN’S DAY

Lincoln was the first to face the real possibility of the disintegration of the Union, not only into two, but possibly into many pieces.  It was also quite likely that both Britain and France would have tried to lop off big chunks of the disintegrating nation.  Lincoln, of necessity, became our greatest leader, stretching his power as necessary to keep the nation together.  Roger Taney, then Chief Justice of the United States, never had a good day after Lincoln’s inaugural, as the President simply ignored the habeas corpus writs and sundry orders designed to remind Lincoln he could not do what he did.  But at the same time, his writings and statements show the cool neutrality of a wise ruler as well.  It is sad he did not finish his second term.

HONOR THEM BOTH

Each kind of President is necessary, but not interchangeable.  A leader is a meddler when we are doing fine on our own.  A ruler is not enough when we are in crisis and need direction.  Despots manufacture crises to justify their power.  Cowards ignore crises to avoid plotting courses toward unknown places.  This is an election year.  Give it some thought and choose wisely.  As P. J. O’Rourke has pointed out:

“You know. if government were a product, selling it would be illegal. Government is a health hazard. Governments have killed many more people than cigarettes or unbuckled seat belts ever have.”

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LANDLORD DAILY

02-18-00, Friday

STUNNED, SHOCKED, AND AMAZED

The Counsel of Tree and Landscape Appraisers has announced the findings of a survey they conducted.  This survey showed that homes with mature trees are, on average, worth about 2% more than those without.  The survey sample consisted of some single-family homes in Baton Rouge.

ARVIDA BUYS ASSETS

Arvida Realty Services has announced that it has bought certain assets of Angstrom Corporation Realtors, a major real estate firm in Jupiter, Florida.  Arvida is a unit of the St. Joe Company.  

KOGER EQUITY NEWS

Koger Equity has announced the appointment of Thomas Crocker as CEO.  He was also elected to the Board of Directors.  Robert Onisko has been appointed CFO.  The company also announced it currently plans to buy up to 2,650,000 shares of its own stock.  The board approved a quarterly dividend of 35 cents per share payable on May 4 to holders as of March 31, 2000.

MARCUS & MILLICHAP SALES

Marcus & Millichap Real Estate Investment Brokerage Company has announced record sales for 1999.  Sales for the year were $5.2 billion. 

KOSOVO PROLONGING

General Wesley Clark, NATO Supreme Commander, has told Congress that NATO troops in Kosovo will probably have to remain until Milosevic, President of Serbia, is removed and tried for war crimes, and democracy is introduced into Yugoslavia.  He refused to suggest a time frame.  Since Milosevic has just been re-elected, the time frame will undoubtedly be lengthy. 

GREENSPAN HINT

Federal Reserve Chairman Alan Greenspan has hinted that there will be another interest rate increase, possibly several more, in order to slow economic growth. Many factors, such as weak overseas economies, that have helped keep inflation in check, are changing, and restraints on interest rates may have to replace them, Greenspan explained.

CHURCH AID CURBED

The 100 year old United Methodist Church in Portland, Oregon, has been serving meals for the poor and homeless for the past 16 years.  Its services and meals are well attended.  Now, a Portland official has ordered the Church to stop.  Public safety reasons?  Maybe the building is not up to code?  Could it be that the meals do not comply with health laws?  No, the neighbors complained.  This is unbelievable – but, maybe not.  In the eyes of most compassionate Americans today, charity begins with the state and private parties have no place in it.  THIS DATE IN HISTORY

In 1885, “The Adventures of Huckleberry Finn,” by Mark Twain, was published in the US.

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02-17-00, Thursday

NAHB OPINES ON LABOR SHORTAGE

The National Association of Home Builders has testified before the House Ways and Means Committee in favor of removing the earnings penalty on retired workers receiving social security. NAHB believes that this would ease the severe labor shortage a booming economy has given us, and they are surely right.  However, we think $30 per barrel crude oil prices will soon do even more.  The release of crude oil from reserves may ameliorate this price increase, but only temporarily.  The bigger question is what has been done for the last year that the Administration has known that the OPEC cartel was going to pull this stunt.  Since it has traditionally been a very weak cartel, it would seem that some sort of direct economic action against the “Oh Peckers” might be more effective.

PUBLIC HOUSING TENANT DRUG USE RULING

The US Ninth Circuit Court of Appeals has ruled that tenants of public housing units can be evicted for violation of HUD drug policies for violations by their cotenants and guests even if the tenants themselves are unaware of the drug violations or powerless to stop them.  There are two issues to be considered here.  First, is there a constitutional issue involved in causing the forfeiture of an estate for something of which the holder of the estate is unaware, or which may not even have occurred on the premises?  This will probably provoke an appeal.  Second, this case involved public housing projects; will its holding be applied to Section 8 housing?  We will post the full decision as soon as we can get hold of it.

HOUSING STARTS UP

Despite the rise in mortgage rates, housing starts were up 1.7% from December’s upward adjusted rate, reports NAHB.  Multi-family housing accounted for much of the increase.  The small impact of lending rates was explained by a general switch to ARMs and a countervailing spell of unseasonably good weather in most parts of the country.

CENTURY 21 FREE SOFTWARE

Century 21 Award of San Diego has started offering free software at their web site.  Right now they seem to be having some kinks so you may need to use the search feature to pull up their offerings.  Search for “software.”

GOMEZ RATES INTERNET MTGE PROVIDERS

Gomez Advisors reports their ratings of on-line firms and their services.  Their report on the on line mortgage providers is in, including many of the newest ones.  See the results at gomez.com.  

BUSH STUBS TOE

Gov. George W. Bush may have stubbed the only of his toes not yet stubbed pursuing the GOP Prez nomination.  The Dallas Morning News is reporting that last year, after his announcement for the Presidency in March, Bush may have spent substantial amounts from his gubernatorial campaign fund on his presidential drive.  

MILLER MYSTERY SOLVED?

Glenn Miller was killed when his small plane, carrying him to Paris to entertain Allied troops, was lost over the English Channel.  Since this happened in 1944, the conventional wisdom is that the plane went down in foul weather.  Now it appears that it may have been the victim of an accident when a British Lancaster bomber aborted its mission and jettisoned its bomb load.  

THIS DATE IN HISTORY

In 1801 the first seriously contested presidential election in the United States ended in a tie in the Electoral College.  Under the rules in effect at the time, the House of Representatives broke the tie in favor of Thomas Jefferson.  Aaron Burr, coming in second, became Vice-President.

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02-16-00, Wednesday

GOLF.COM RE CONTENT PROVIDERS

LuxGolfHomes.com has announced that it has been selected to be the real estate content provider for Golf.com, a popular golf web site.  LuxGolfHomes.com provides golf real estate information on the Internet.  

REALTY INCOME DECLARES DIVIDEND

Realty Income Corporation has announced that its Board of Directors has declared a dividend of $.18 per share for all shareholders of record as of March 1, 2000, payable March 15, 2000.  In addition, the Board declared dividends on the company’s class B and class C preferred payable March 31 to shareholders of record as of March 15, 2000.  The dividends are $0.5859 and $0.1979, respectively.

TEGRIS’ NEW VP

TEGRIS corporation has announced that David L. Tandy has been hired as their Senior Vice President of Business Development.  According to PRNewswire, TEGRIS is “a leading [always leading, of course] provider of business-class Internet solutions, hosted applications and information technology solutions to the residential real estate industry.”

ENGLE BUSINESS UP

Engle Homes, Inc., announced its results for the quarter ended January 31, 2000.  Net income rose to a record $5.5 million while total revenues were a record $167.2 million.  Quarter end backlog was $421.6 million. Engle Homes, Inc. designs, constructs, markets and sells single-family homes, townhomes, patio homes and condominiums in Florida; Denver, Colorado; Dallas, Texas; Raleigh, North Carolina; Atlanta, Georgia; Phoenix, Arizona; and Virginia.

CONGRESS TINKERING WITH REVERSE MORTGAGES

Rep. John LaFalce (D, NY) has introduced a bill to waive the insurance fee on reverse mortgages, provided the proceeds of the mortgage are used for long term health insurance.  The bill, euphemistically named The Affordable Long-Term Care Insurance Act, is designed to cause people to reverse mortgage their properties so as to place the money in a location politicians know, by virtue of their superior intelligence, knowledge, and foresight, would be better for them. Which of the enumerated powers of the Constitution authorizes the Federal government to get into this micro-management is not mentioned.

IT TAKES A VILLAGE

Hilarious Hillary! is still fighting the cheaps-gate scandal.  It now appears that after the story broke, first one of her aides, then Hillary! herself called Tricia Trupo, the waitress she stiffed at a small diner in Albion, New York, to apologize.  But alas, still no tip.  Now, hundreds of Americans have been sending in tips for Trupo to make it right. Why is this worthy of mention?  Anyone with any sense that there are people on Earth beside herself would have instantly packed an aide off to Albion with a nice crisp $50 bill and a note of apology.  Hillary!, on the other hand, seems completely disconnected.  This may not make her any different from other politicians, but it is still worthy of comment.

OJ VINDICATED

O.J. Simpson now says that the unfolding Los Angeles police scandal proves he was right all along. Everyone knows this is true.  O.J., keeping the promise made after his acquittal on murder charges, has been spending every moment seeking out the true killers.  Pooh-poohing police theories of the crime, he has been following his own hypothesis – that the murder was a Mafia hit committed by avid golfers with mob connections – by scouring all the golf courses in the US.

BELIEVE IN POLLS?

The most recent poll of California voters has shown Imperator Clintonius Maximus to have the highest approval ratings of either his first or second reign, and among the highest ever, for any President.  Do you believe this?  Did you notice that neither Bill Bradley nor Al Gore has asked our Maximum Leader to come out and campaign for them?  Might there be a reason for that?

THIS DATE IN HISTORY

In 1937 the US Patent Office issued the patent for nylon to Wallace Carothers, a research scientist for DuPont.

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02-15-00, Tuesday

BANDO MCGLOCKLIN NET INCREASE

Bando McGlocklin Capital Corporation has reported its fourth quarter and 1999 overall results.  Total revenues for the fourth quarter were $11,863,837, up over 19% from the same period last year.  Annual revenues for 1999 were $35,869,656, up over 12% from 1998.  Earnings per share were also up.

ezCLOSE LAUNCHES

A ground breaking service, allowing realty professionals and their clients to close home purchases on line, called ezClose.com, launches today. “ezClose is a fully licensed title and escrow company … backed by the support of a full-time team of experienced professional title and escrow officers,” they say at their site.

SOLIMAR’S NEW SERVICE

Solimar.net announced the launch of a new on-line property valuation service that they call CollateralTech. With the ability to vary how comparables are adjusted, CollateralTech claims to be able to allow appraisers to customize the tools provided on the site to the appraisers’ specific needs.

NAHB BACKS LEGISLATION

The National Association of Home Builders have announced their support of The American Homeownership and Economic Opportunity Act, which is designed to remove barriers to home ownership.  In essence, the legislation would require any regulatory agency to submit an impact statement if a new proposed regulation would have any impact on the cost of home ownership.  Excessive regulation has forced many people out of the housing market due to the increased costs and burdens associated with them, NAHB has perceived.  This all proves the adage that the poison and the antidote are made in the same kitchen.

EHOME SELECTS OPERATING SYSTEM

Ehome has decided to use Windows 2000 as its operating system, according to a stunning announcement carried by Business Wire.  

HISTORIC NEW MEDIUM

Imperator Clintonius Maximus participated in the first live Internet news conference, conducted by Wolf Blitzer of CNN.  Ironically, he dodged the “historic” first question, refusing to comment on the primaries.  The conference was televised by CNN, with the Maximum Leader and Blitzer sitting before laptops.  Simultaneously, the questions and answers were published on the Internet in a sort of “chat room” format.  Cyber-pranksters had a field day, thank Heaven, and some of the results were hilarious.  

THE KOSOVO SOLUTION

The centerpiece of the array of scintillating foreign policy accomplishments racked up by Imperator Clintonius Maximus is beginning to dull.  It appears that KFOR, that is not a radio station but the UN peace keeping effort in Kosovo, is engaging in more and more frequent and violent engagements with the resident Albanians there. Those not afflicted with amnesia will recall that these helpless, peace loving, and completely innocent and victimized Albanians were the very persons we were trying to help out by forcing out the odious Serbs.

SPRAWL DOES NOT CAUSE DECLINE

A new study by Anthony Downs, a fellow at the Brookings Institution, has concluded that urban sprawl does not link to the decline of the inner city.  Urban decline, he theorizes, owes more to housing codes and regulations that make it impossible to construct affordable housing, such as apartment buildings, in the typically low density restricted outer areas, among other things.  This makes a lot of sense, even if his proposed solutions, such as even more massive housing subsidies to transport the poor to outlying areas, may not.  

THIS DATE IN HISTORY

In 1898 the USS Maine sank after an explosion in Havana harbor, killing 268.  This triggered the war with Spain which launched the US into the international arena as a world power.  Also, in 1564, Galileo Galilei was born.

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02-14-00, Monday

DON’T TRY THIS AT HOME

Chicago landlord Roel Salinas was convicted of soliciting the murder for hire of Arnold Mireles, a housing activist who filed complaints against Salinas charging poor maintenance of Salinas’s properties.  Salinas had already been convicted of violating a local anti-slum ordinance in 1995, the first such.  Salinas’s accomplices were both convicted of first degree murder.  Salinas faces 20 to 40 years in prison.

MULTI HOUSING FORUMS

The National Multi Housing Council has scheduled a series of forums for May of this year. On May 1, a technology forum will deal with web applications and other topics.  On the same day, another will deal with the tight labor market and other human resource problems.  Both will take place at the Hilton Torrey Pines in La Jolla, CA.  On May 8, a developer’s forum on building codes will be held at the Latham Hotel in DC.

LIBERTY MANAGEMENT CHANGE

Liberty Property Trust has announced that Joseph P. Denny has given up his position as chief operating officer and assumed the duties of Vice Chairman.  Robert Fenza, currently Vice President for Operations will assume the COO post, and Willard G. Rouse III, Liberty's Chairman and Chief Executive Officer, will assume the office of President.

MERI STAR BUYS BUILDING

MeriStar Investment Partners announced that it has completed the acquisition of the Wyndham Milwaukee Center, a 221-room hotel.  The company has begun a nearly $4 million dollar renovation.

PINNACLE ON LINE

Pinnacle Title & Escrow, Inc., a Montgomery County, Maryland, real estate settlement firm, has announced the launch of its web site.  The site allows interested parties to request title orders on line and provides information on local real estate laws. disclosure requirements and forms, etc.  

NEW TIMESHARE MARKET?

Broderick Perkins speculates that time shares may become a sound investment as an organized resale market emerges on the Internet.  The killer obstruction to time shares being a viable investment vehicle was always the impracticality of selling the thing at any sort of profit once it was bought.  See his article in Realty Times.  

RUSSIA, N. KOREA PROTEST ABM

Everyone knows that the US has been, spasmodically, working on a missile defense system designed to blunt the sort of attack that might be mounted by a North Korea, Iraq, China, or other criminal enterprise masquerading, more or less successfully, as a civilized country.  In its latest incarnation, this missile defense system would be deployed in cooperation with Japan to safeguard allies in the Far East.  Although we have been assured by Democrats and the press that such a system is “unworkable,” the Russians – whose empire styled “The Soviet Union” collapsed in large part due to Ronald Reagan’s announced determination to build it – and North Korea – the most devoted communist regime outside of certain US university campuses – have urged a united front against the development of the “unworkable” defense weapon on the ground that it would cause “destabilization.”  The only sure method to pave the way for stability, says North Korea, whose latest claim to fame is the starvation of as many as 1 million of its citizens since 1998, is the removal of US troops stationed in South Korea. This looks attractive, bringing back the good old days of 1950.

DICAPRIO ENDORSES GORE

Leonardo DiCaprio, citing concerns about THE EARTH, endorses Al Gore for President in the Time Magazine issue hitting the newsstands today, according to Matt Drudge.  Drudge is the roundly disrespected but almost always right investigator and author of the Drudge Report.  According to Drudge, DiCaprio denounces himself for eating hamburger, which encourages the production of cattle, and cattle emit global warming gasses, such as methane.  Someone should inform DiCaprio that one of the largest single sources of methane on the planet is the termite.  Our suggestion to DiCaprio:  eat termites, which require no cultivation, instead of hamburger, thus reducing termite methane emissions.  In any event, the endorsement of a political philosopher and commentator of the stature of Leonardo must be a boost to the Gore campaign.

THIS DATE IN HISTORY

February 14, 1876, Alexander Graham Bell and Elisha Gray each apply for a patent on the telephone.

February 13, 1936, the Social Security Administration mails out the first benefit checks.

February 12, 1809, Abraham Lincoln, 16th President of the US, was born.  He shares this birthday with Charles Darwin, born on the same day, and Omar Bradley, one of America’s most respected soldiers, who was born in 1893.

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02-11-00, Friday

FREDDIE MAC FIXUP PROGRAM

Freddie Mac has announced a new program to fix up garden and midrise apartments for low to moderate income families.  Forward Commitment is available to owners and builders financing their properties at least in part through tax credits or tax exempt bonds.  

UNEMPLOYMENT CLAIMS UP

The Department of Labor reports that unemployment claims for the week ending February 5 rose to 301,000.  This is up from the previous week, which was at 274,000.  The four-week average, however, is still at its lowest level since 1973.

MORTGAGE RATES UP

Again from Freddie Mac, mortgage rates in general are up this week.  The average 30-year is at 8.36%, the highest since 1996.  Fifteen-years are at 7.96% and one year adjustables are at 6.73%, also up.

LENDER A FIDUCIARY?

While lenders are not typically classed as fiduciaries to their borrowers, there is now at least one exception.  Where, by the terms of a loan, the lender collects property taxes for deposit into escrow and ultimate payment to the taxing authority, then the lender has a fiduciary duty to make the payments timely, provided the borrower makes his payments on time.  

MCCAIN UNMASKED

So you thought that John McCain was a moderate.  You greeted him as the sort of middle of the road politician who would not do much boat rocking and represent what “mainstream” America is all about.  Well, the San Francisco Examiner & Chronicle has some revelations for you.  Indeed, they out McCain and hang him with the c-word – conservative. Omigosh, not that!

MCCAIN UNMASKED

So you thought that John McCain was a moderate.  You greeted him as the sort of middle of the road politician who would not do much boat rocking and represent what “mainstream” America is all about.  Well, the Washington Post has some revelations for you.  Indeed, they out McCain and hang him with the l-word – liberal. Omigosh, not that!

THIS DATE IN HISTORY

In 1907, William J. Levitt was born.  Levitt showed the way to mass produced planned housing to meet the post-WWII boom in housing demand with his Levittown concept.

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02-10-00, Thursday

GL&N EARNINGS UP

Griffin Land & Nurseries, Inc. has reported a fourth quarter increase in earnings.  For the period ended December 31, the company had earnings of $732,000 on net sales of over $16 million for a basic net income of $.15 as opposed to the same period in 1998 in which it posted a loss of over $100,000.

HOMESEEKERS TO ANNOUNCE QUARTERLY RESULTS

HomeSeekers.com will announce the financial results for their second quarter, ended December 31, 1999, on February 14.  HomeSeekers.com is a “leading” provider of technology solutions and services to the real estate industry.  

EXECUTIVEMANSIONS.COM DEAL

ExecutiveMansions.com, announced it has agreed in principal to purchase an unnamed Florida real estate company with over $80 million in annual home sales.  ExecutiveMansions.com was refreshingly described in its press release as an “expanding” rather than a “leading” on line real estate company. Since, according to the PR flaks, nearly all companies are “leading,” who the heck is following?  We look forward to uncovering a press release from a “following” Internet or real estate company soon.

TDRC GROUP GETS AN OFFICE

The TDRC Group, intellectual property consultants, has acquired the office formerly occupied by the Barrington Consulting Group, Inc., in Boston.  

RUSSIA AND CHINA NEW TIES

Military ties between Russia and Red China are moving into a new phase that has Western analysts worried.  While in the past the parties were to exchange Russian weapons for hard Chinese cash, the new trend is toward a sharing of technology and doctrine.  Aside from the obvious geopolitical impact, the new relationship bids fair to give the Chinese Communists a very large boost in the effectiveness of their weapons and the doctrine by which they are employed. 

FBI AFTER HACKERS

The three “denial of service” attacks on major Internet firms has spurred the FBI into action.  The head of the agency’s National Infrastructure Protection Center said that they would trace the connections back through the service providers to the hackers themselves.  These attacks are felonies, and the penalties are not trivial, five years imprisonment and a large fine for a first offense, and even heavier for subsequent offenses.  Both Janet Reno and her subordinates are calling for a new partnership with Internet companies to block such attacks.  

GARIBALDI INSTEAD OF GRANT?

There has, for a time, been a theory that Abraham Lincoln secretly planned to offer Giuseppe Garibaldi, the famed leader of the Risorgimento, supreme command of the Union Armies during the Civil War.  Garibaldi had been made a citizen of the United States.  An Italian scholar, Arrigo Petacco, claims to have come across a postcard, c.1862, in Garibaldi’s handwriting, asking King Victor Emmanuel II of Savoy for permission to go to America and serve.  See the London Times article and decide for yourself.  

THIS DATE IN HISTORY

In 1763 France ceded Canada to Great Britain with the Treaty of Paris, which ended the French and Indian War.

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02-09-00, Wednesday

HEATING OIL UP

Earlier predictions of huge heating oil price increases have come true.  Due largely to OPEC production cutbacks, heating oil prices in the Northeast have climbed to an average of $2.10 per gallon.  This is up from an average of $1 per gallon last year.  Washington is making noises about instituting some sort of a subsidy or assistance to heating oil users, which may be compassionate, but will certainly ensure prices remain exactly where they are.  Someone needs to be creative here.

NEW RENT CONTROL WRINKLE

San Francisco Mayor Willie Brown (affectionately known as “Da Mayor”) has floated a trial balloon.  He now suggests that rent control might be means tested, that is, if your tenant makes more than a certain amount per year, there is no rent control.  If less, then there is.  This is not entirely original with Da Mayor, New York having revised its rent control law to exempt units whose tenants make $175,000 a year or more.  Whether or not this idea makes sense is irrelevant.  San Francisco is such an unfathomable welter of special interests and political pressure groups that the Bill of Rights could not pass there if proposed today.

AIPREIT WINS SUIT

American Industrial Properties REIT has won a class action lawsuit arising out of its merger with four real estate limited partnerships in 1998.  See their web site.  

CARRAMERICA ANNOUNCES NEW BUILDING

CarrAmerica Realty Corporation has announced that it will construct a new 23-story office building at Sixth Street and Guadalupe in downtown Austin, Texas.  A spokesman for CarrAmerica announced that the building is expected to draw new business activity to the city’s already resurgent downtown. 

PROPERTY SOLD

American Community Properties Trust has sold 77 acres of commercial land to Freestate Electric, LLC, an affiliate of Columbia Electric Corp. for an electric plant.  The property is located in the Piney Reach Industrial Park located in St. Charles, a master planned community in Maryland.  

HUD TO BLOAT

Another thoughtful piece from Realty Times describes the big plans our Maximum Leader has for expansion of HUD.  Their budget authority is to increase by almost a quarter, with increases in all sorts of subsidies and other goodies.  

GORE SUPPORTERS SPEAK OUT

Even though Red China, of course, is officially neutral, of course, with regard to the upcoming presidential election, of course, the Los Angeles Times Service is reporting that the Chicoms fervently hope he will be elected our next president.  This comes as good news to Gore in his desperate bid for the White House and control of the Justice Department until more statutes of limitations expire.  If he can count on the Democrat party base in Red China and continuing financial support from the People’s Liberation Army, his chances of staving off revelation of the full extent of Washington venality and corruption are so much the better. 

APROPOS THAT

Sen. John McCain now charges that Dubya Bush accepted thousands of dollars in illegal campaign contributions from Hong Kong interests while running for Governor of Texas in 1994. The Justice Department investigated the matter and found no violations of law, according to the story, but that does not mean much.  This kind of thing needs to be investigated and brought to the full light of day whether done by a Democrat, Republican, Libertarian, or any other office seeker.

ARGUMENT ENDS IN CANNIBALISM

Reuters reports from Port Moresby that a dispute ended with one man killing his adversary, then eating certain choice body parts as others apparently looked on. I didn’t know they were having elections in New Guinea too.

THIS DATE IN HISTORY

In 1825, John Quincy Adams was elected President on a vote of Congress, after the Electoral College failed to award a majority of votes to any candidate, providing an acid test for our system of choosing chief executive.

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02-08-00, Tuesday

DEBT UP

The Federal Reserve Board reports that consumer credit, not counting mortgages, grew at an annualized rate of nearly 10% to $1.3 trillion in December of last year.  This was an increased growth of over $11 billion over November, where only about a $7 ½ billion increase was expected.  The growth is attributed to very strong Christmas sales.  A lot of people are going to be living on bread and water for the next few months as they try to pay those credit cards down a bit.

ON-LINE AUCTION SET

Prudential California Realty and Homebid.com are set to open their auction on Yahoo! on February 20.  The first round will involve a dozen homes, mostly in the San Francisco Bay Area.  The auction will take place on Yahoo!’s real estate site, E-Home Sale.  The homes that go up will be centered on California, Nevada, Hawaii, and Washington.  A similar site in the East, Y2Homes.com Inc., operating in Pennsylvania, has just launched.  

NEW “THREAT” TO NAR

Regular readers will have perused our earlier item on H.R. 354, and the op-ed column that followed it.  The gist is the NAR’s attempt to control the Internet so as to make it a handmaiden of traditional real estate sales.  No sooner have they got that ball rolling than a new threat to traditional ways of doing business has surfaced.  The new threat is a web site, idealab!, that puts potential buyers and sellers together in a web forum type format.  Their bright idea is to give potential buyers access to thousands of properties that will never appear in the multiple listing services or on traditional real estate web sites.  Prospective properties are listed with the consent of the owners, and potential buyers make on-line bids that are conveyed to the owners by e-mail.  If the owners are interested in following up, they can. When operational, the site will be known as MakeAnOffer.com.  What new law will we “need” now?

FNMA EXCEEDS EXPECTATIONS

The Federal National Mortgage Association (Fannie Mae) has exceeded most of its goals for 1999.  The association last year financed a total of $46 billion in loans.  Forty-six percent of the loans were to low or moderate income households, exceeding the 42% goal.  Multi-family financing made up $4 billion of the total, compared to a $1.29 billion target.

US PRODUCTIVITY UP

United States productivity was up a hefty 5% for the fourth quarter of last year, bringing the overall increase for 1999 to 2.9%.  Labor costs, on the other hand, for the last quarter were down 1%.  Economists are split on whether all of this has any relation to the surge in sales of bullwhips and cats-o-nine-tails for the same period.  

NEW SITE LAUNCH

The Humor Network today launched Hillaryjokes.com.  This is a site devoted to poking fun at the nation’s most prominent new New Yorker and Yankees Hockey fan.  Thank God for election years, we tend to run short of humor between them.  

THIS DATE IN HISTORY

William T. Sherman was born in 1820.  Sherman is often credited with being the first general to understand the modern concept of total war and the role of civilians in it.

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02-07-00, Monday

RENTALS.COM NEW SERVICE

Rentals.com is unveiling its new comprehensive on-line property management tools.  The idea is to permit property owners to open virtual offices to serve the needs of prospective and existing tenants on the net.  This concept, it is said, permits absentee owners to have 24-7 virtual offices (the site has not launched) on-line and available when they are not.  Their launch, commencing with the San Francisco Bay Area, will be next month.

eHOME LAUNCHES IN SACTO

The on line real estate brokerage firm, eHome, announced its launch in Sacramento, California.  Its staff there will service the Sacramento area including El Dorado and Placer Counties.  

ELDER TRUST OFFICER

The board of trustees of ElderTrust, a Pennsylvania based equity health care REIT, announced the appointment of John H. Haas as its Vice President and Chief Operating Officer.  Mr. Haas has been a consultant for the Trust since 1998.  

VLDC AQUIRES RAMSAY

VLDC Technologies has announced that it has completed the acquisition of Ramsay Mortgage Company.  VLDC is an on-line financial services company.  Ramsay was acquired by VLDC’s subsidiary, University Mortgage, Inc.

HILLARY LAUNCHES

Co-President Hillary Clinton launched her campaign for Senate at a New York State College campus in Purchase, New York.  For the background music, to be played while the crowd milled around waiting for Hill to appear, some nitwit selected Billy Joel’s “Captain Jack,” the alternately explicit and suggestive lyrics of which celebrate drug abuse, drunkenness, and masturbation, among other things.  Click here for the full lyrics. Red faced aides terminated the concert, after which Hillary, having been introduced by a beaming Daniel Patrick Moynihan, gave a speech highlighting her empathy with parents’ concerns about their children’s exposure to prurient material from the entertainment industry.  Fine start, Hill.  The New York Times did not mention the gaffe, but did quote her as saying that she is a “new Democrat,” and that she does not believe “government is the source of all our problems or the solution to them.” Is this why she tried to nationalize an entire segment of our economy a few years back?  “Now I know, some people are asking why I'm doing this, here and now,” Hillary vouchsafed.  Indeed, this is a good question.  We now have a race between a Mayor with the skill to clean up what may have been one of the world’s largest cesspools, and a lawyer who could not even find her own billing records.

HAPPY NEW YEAR

The Chinese are celebrating the New Year, which, by their calendar, is 4298, the Year of the Dragon.  Thus far, neither Mainland China nor Taiwan are reporting any Y4.298K problems.

THIS DATE IN HISTORY

February 7, 1964, the Beatles hit the tarmac in New York on their first visit from Great Britain to the adulation of a huge crowd.

February 6, 1895, “Babe” (George Herman) Ruth, who arguably saved major league baseball after the Black Sox Scandal broke in 1920, was born.

February 5 1846, the Oregon Spectator, first newspaper on the West Coast, made its debut.

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02-06-00

MONEY’S BEST PLACES

Money magazine has compiled a list of the best places in the US to live.  San Francisco (!) comes out the winner, with Austin and New York close behind.  Money used 46 criteria to rate 300 major metropolitan areas in the US.

ELEVATOR INTERNET

Inman News Service reports that Captivate Network Inc. is installing flat panel screens on elevators in buildings owned by Equity Office Properties Trust in New York, Stamford, and Boston.  Captivate Network estimates the average elevator ride lasts 45 seconds, and they do not want us to waste it.  For this reason they will put the Internet on the screen, together with banner ads, to keep us occupied.

MORTGAGE RATES UP

Freddie Mac reports that mortgage rates have gone to their highest level in two years, as of the week ending today.  Fixed rate mortgages averaged 8.15%, up almost a point and a half over last year.  The rise is attributed to a fear that the Fed will increase interest rates – a sort of a self fulfilling prophecy.  Check out their Primary Mortgage Market Survey here.  

RESURGENT RUSSIA?

Sandy Berger delivered a major foreign policy address in which he warned that should Russia return to a “nationalist” stance it could again pose a major threat to the US.  The world will watch closely to see if Russia holds to the “constitutional, democratic process.”  This is all very occult.  Berger seems to imply that Russia cannot be nationalist, that is, look to its self interest, and be democratic at the same time, but that makes no sense.  Some pundits try to make sense of it all in this article from the Washington Post.  Nations have interests, which their governments are duty bound to protect.  Russian voters are as just as inclined to elect public officers who will preserve their interests as we are to elect public officers who will preserve ours.  One thing is certain, as Russians learn they will have to look to their own nation’s interests the US may not be able to afford a half-strength national defense.  The era of anemic defense spending may be over.

NEW ATTACK ON INTERNET LINKING

The issue is surfacing again, namely, are there limits on the freedom to link on the Internet?  This time, in a lawsuit filed in the Superior Court of California, County of Santa Clara, the California court that covers Silicon Valley, the DVD Copy Control Association is asserting that hundreds of defendants linked to sites offering freeware that enables the copying of DVDs to hard drives, thus violating trade secret laws.  Is liability limited to those who post the freeware, or does it extend to those who say, “Hey, look at this,” and link to it? 

THIS DATE IN HISTORY

In 1927, commercial transatlantic telephone service was inaugurated.  On the first day of service, 31 calls were placed at a cost of $75 for three minutes.

 

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OSHA BACKTRACKS

OSHA has retracted its opinion letter making employers responsible for providing compliant workplaces for telecommuting workers.  This opinion letter was replaced by a statement that OSHA has no intention of enforcing workplace rules in the home, and a press release by Secretary Herman calling for a “national dialogue.”  Before any freedom and privacy lovers pat themselves on the back they should consider two things.  First, the original opinion letter took the position that OSHA had the jurisdiction to require compliant work places in the home and to enforce that policy.  There was no law making involved.  When OSHA now says they will not do that, what they are really saying is that they will not make this intrusion on freedom and privacy for the moment.  Second, the furor is what caused the Dept. of Labor to back off, largely because it is an election year.  Next year will not be. 

IT'S OFFICIAL

HUD has actually increased the ceilings on FHA loans by over 5% effective January 1.  Limits on 2, 3, and 4 family units have been increased as well, and all the increased limits also apply to the (203)k rehabilitation program. 

REFIS DOWN

The refinancing boom is over.  According to the Mortgage Bankers Association of America, applications to refinance have dropped to one fifth of all loan applications as of the last week in December.

CLINTON TO REBUILD SCHOOLS

President Clinton has announced his plan to renovate thousands of substandard classrooms across the country.  He wants Congress to appropriate $1.3 billion for the purpose.  An even better idea might be to cut taxes by $1.3 billion, then let the localities that need to do so collect the money to fix their own classrooms.  Being closer to the problem, they might be more highly motivated to do a better, more efficient job, one would think.  But that would make us against “the children,” and we don’t want that. 

HACKERS SWITCH SIDES

L0pht Heavy Industries, an organization of hackers, has set up @Stake to provide security services to entities on the Internet.  @Stake has been well funded and will use the expertise and connections developed by its members to be a unique source for this service. 

THIS DATE IN HISTORY

In 1942, the Pacific Clipper, operated by Pan American Airways, arrived in New York, becoming the first commercial airliner to travel around the world.

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02-05-00

FLASH:  BULLETIN

02-04-00, Friday

AUTOMATIC DRAFTING SERVICE

National Bank Drafting Systems offers a drafting service for landlords.  A drafting service arranges to have an automatic electronic deposit for your rent transferred from your residents to your rent collection account.  No more lost checks, mail delays, or excuses.  Better than permitting direct tenant deposits to your account, you can stop the service when you want to, which is useful in landlord-tenant disputes.  

UNEMPLOYMENT REMAINS LOW

First time claims for unemployment remained at their lowest levels since 1973 for the week ending January 22.  Total claims were only 266,000, only slightly lower than the 26-year record low set the previous week.  The economy added about 387,000 non-farm jobs in January.

COUNTRYWIDE STATS

Countrywide Credit Industries, Inc., a leader in residential finance, announced January, 2000, statistics.  Actual fundings were at $3.3 billion for January, with $7.6 billion in process.  Their servicing portfolio was at $247 billion, up 17% from the previous year.  

US SEARCH.COM REVENUES

US SEARCH.com has reported its 1999 revenues.  Revenues for 1999 were over $19 million, up 111% over 1998, with $6million for the fourth quarter up even more over the same quarter the previous year.  The net loss for the fourth quarter was $6.3 million, up about the same amount from the same period the previous year.  The total losses for the year were almost $26.4 million.  The company is an Internet based provider of public records information. 

CAVALIER HOMES ANNOUNCEMENT

Cavalier Homes, Inc., which, individually and through its subsidiaries, produces, sells, finances, and insures manufactured homes, issued tentative estimates of its fourth quarter of 1999 performance.  Its losses from operations are expected to be from $0.10 to $0.13 per diluted share, with an additional one time charge of $1.6 million, bring its total to $0.19 to $0.23 per diluted share. 

NEW N. IRELAND PROBLEMS

Readers will recall the self rule agreement reached between Britain and Ireland for Northern Ireland and how it was made contingent on disarmament of the IRA.  The agreement, reached with the intervention of Imperator Clintonius Maximus now seems very near collapse.  The Northern Ireland secretary, Peter Mandelson, in an address to the House of Commons, stated that he was preparing to introduce emergency legislation to re-establish direct rule by Britain due to the failure of the IRA to disarm as agreed.  This would be sad with the end of the strife in sight.  

YOU SAID … WHAT?

An eleven year old pupil in Oakley, California, (near San Francisco) had his Pokemon cards confiscated by a schoolyard monitor while he was showing them off.  He reported to the office at the end of the day as directed to pick them up but, alas, they were lost.  He did not just shrug it off, however, but did what any red blooded American boy would do, he sued the school district for $5000.  His case is scheduled for hearing on February 29.

FORD OFFERS UNIQUE BENEFIT

If you are an employee of Ford Motor Co., you will soon be receiving a unique fringe benefit.  The boss is going to provide you with a new personal computer, color printer, and unlimited access to the internet for as little as $5 per month.  Ford’s president admitted that the program would cost an estimated $300 million, but emphasized that this would be more than offset by making all the employees of Ford computer literate.  

THIS DATE IN HISTORY

In 1789, George Washington was chosen as first president of the United States under the new constitution, by a unanimous vote of the electors.

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02-03-00, Thursday

BANKRUPTCY REFORM

The Senate has passed its version of Bankruptcy reform containing three provisions of interest to the real estate industry.  First, residential tenants will no longer be able to stall evictions by filing a bankruptcy petition.  Second, all commercial properties, regardless of their value, will now only be subject to the automatic stay for a period of 90 days.  Third, the power of judges to extend the time for tenants of shopping centers to affirm or reject executory leases has been curbed.  See NAR’s press release in their press release section.  

SECTION 8 FRAUD

The San Jose Mercury News is reporting an ingenious scam employed by a Silicon Valley landlord.  This gentleman induced a couple of his relatives to apply for Section 8 subsidies for rental units he owned or managed.  Once their subsidy was approved, he moved them out and into other quarters, then rented the premises conventionally to new tenants.  Thus, he collected the Section 8 subsidy plus the regular rent from the unsuspecting tenants.  The scheme was not ingenious enough to keep him out of criminal courts, however.  He has pled guilty and is looking forward to up to three years in the slammer.  IMPORTANT LEGAL TIP:  don’t do this.

XPEDE TO OFFER MORTGAGES

Xpede, Inc., has announced that Finance America has selected Xpede as their web based mortgage source for both their retail and wholesale divisions.  Finance America is the first sub-prime lender to offer on-line pricing.  

BP-ARCO MERGER NIXED

The Federal Trade Commission has moved to block the pending BP Amoco-Arco merger, worth some $30 billion.  The FTC, characterizing the merger as strongly anti-competitive, voted 3-2 to seek a preliminary injunction and to block the merger.  

BOXER GETS ONE RIGHT

Proving the maxim that even a blind squirrel will find an acorn once in a while, Sen. Barbara Boxer (D, CA) is proposing a permanent ban on sales taxes on the Internet.  In this we support her wholeheartedly.  The San Francisco Chronicle and Jon Carroll do not, however.  For them, there is something wildly perverted about an untaxed activity.  As they point out, think what wonderful social programs, etc., would be paid for by all the taxes Internet businesses would pay.  As they do not point out, you, dear Internet customer, would actually be paying the taxes.  If state and local politicians need more money, let them make their case to the people and tax them directly, then risk re-election.  We need more honorable direct action and less cowardly indirection. 

MORE WINTER COMING

America’s weather forecaster, Punxsutawney Phil, came out of his burrow on Candlemas and saw his shadow.  This, as we all know, means there will be six more weeks of winter.  His long term forecasts are about as accurate as those of the National Weather Service, and he costs less.  

THIS DATE IN HISTORY

1927:  The Federal Radio Commission, whose mission was to regulate the air waves, was created by a bill signed into law by Calvin Coolidge

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02-02-00, Wednesday

MORTGAGE 101

Mortgage101.com’s slogan is “answers to your mortgage questions.”  This they apparently have, with 160 pages of information, mortgage calculators, and about anything else you can think of concerning mortgages.  

ADSTAR.COM-OWNERS.COM DEAL

Adstar.com, which is a major placement vehicle for on line classifieds, and Owners.com have entered into a new distribution agreement.  Owners.com is a leading self directed real estate market, and the new arrangement will permit the parties to offer sellers new ways to market their properties.  First, persons who list on Owners.com will also be able to run their classified ad in relevant local newspapers through a co-branded version of Advertise123.  Second, sellers listing on Advertise123.com will be able to place their ad on Owners.com as well.  

PHONE COMPANY PACKAGE

Bell Atlantic is continuing its strategy of aggressively marketing video, data, and voice service to multi-family complexes.  For example, when the new River Place I opens shortly, all 900 residents will be prewired for, and have the choice of, DSL high speed internet access, DirectTV satellite television services, along with Bell Atlantic’s telephone service products.

APPONLINE.COM NEW OPS CENTER

AppOnline.com has opened a new operations center in Aurora, Colorado.  AppOnline.com’s fast growth in the on line mortgage banker business necessitated the move.  

DO YOU ACCEPT PETS?

Most landlords do not, and that may be a good idea, but many excellent prospects own pets, and you may be turning them away needlessly.  Check this web site by the Humane Society of the US.  You may not change your mind but it is worth a look.  

REORGANIZE FEDERAL LAW ENFORCEMENT

The Commission on the Advancement of Federal Law Enforcement, formed in 1996, has returned with some recommendations that are not going down well with the Federal law enforcement bureaucracy.  First, they recommend the merging of the enforcement arms of the BATF and DEA with the FBI to achieve better coordination.  Attorney General Reno and Treasury Secretary Lawrence Summers respond that such a merger would be “detrimental” to Federal law enforcement efforts.  Three times the agencies, three times the bureaucrats.  Not generally mentioned is the commission’s finding that 40% of federal crimes have become federal crimes since 1970.  The commission warned that this federalization of crime would likely overwhelm federal resources. This sounds a lot like the Grace Commission.

AUSTRIAN AGREEMENT

The agreement between Joerg Haider’s Freedom Party and more mainstream conservatives that we discussed yesterday, has come to fruition.  The agreement will be presented to the Austrian President today and we will see what the EU does about it. 

THIS DATE IN HISTORY

In 1876 eight professional baseball teams form the National League of Baseball.  On the same day in 1900, six teams form the American League.

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02-01-00, Tuesday

SCHOOL RANKINGS

The quality of schools has always been a factor to homebuyers with children.  The State of California has unveiled a new web site that ranks the schools in the various districts of the State using a variety of criteria.  

CYBERLOAN EXPANDS

CyberLoan.com, already the largest commercial on line loan system, has added seven new lenders.  These include WMF Group, Ltd., and Imperial National Bank.  

NEW STRATEGIC ALLIANCE

Konover Property Trust, Inc., and NeoMedia Technologies, Inc., today announced their new strategic alliance.  The companies are planning to work together to apply NeoMedia’s PaperClick technology to Konover’s on line marketplace.    Konover was one of the first shopping center businesses to attempt to integrate web sales with traditional retail stores.

HOME PROPERTIES DIVIDEND

Home Properties has declared a $0.53 dividend for the quarter ending December 31, 1999.  Home Properties is a REIT that owns, operates, and rehabilitates properties in the Northeast, Midwest, and Mid-Atlantic market.  

INTERNET REALTY REGULATION

The regulation of realty professionals who use the Internet is a thorny problem.  The lack of geographic boundaries, in particular, raises a lot of issues about licensure, fees, and offerings.  See this thoughtful article on the issue in today’s Realty Times.  

CRASS NEW FACE FOR EU

The European Union sure looked like a good idea, and it has been functioning for decades (earlier as the EEC, then the EC) to help facilitate trade throughout Europe, to everyone’s benefit.  But as with all bureaucrats, once the Brussels Gang got a little more power, they decided to wield it.  A new government coalition is being formed in Austria between the Conservative Party and the Freedom Party, putatively reflecting the wishes of Austrian voters, carried out according to their constitution.  EU now says that if this government is not changed the other 14 members would move to “isolate” Austria.  The Austrians, to their credit, are not caving in. 

CLINTON PEACE NOMINATION

Imperator Clintonius Maximus has again been nominated for a Nobel Peace Prize.  Why?  

SUICIDE CHANNEL COMING TO CABLE

You do it yourselfers out there should be interested in this.  An Oregon Cable company will be airing a video offering step by step instructions to persons wishing to kill themselves.  This keys into the widespread enthusiasm generated by Oregon’s assisted suicide law.  The airing of the video is opposed by most, even those institutions that supported the unique Oregon law.  But a spokesman quoted by World Net Daily, perhaps with unintended humor, responded, “the ‘current political climate in the United States’ makes broadcasts of the video ‘necessary.’”  The current political climate depresses me from time to time as well, but I don’t think that is what was meant. 

THIS DATE IN HISTORY

1898:  The Travellers Insurance Company issued what is thought to be the first auto insurance policy to one Dr. Truman J. Martin of Buffalo, N.Y.