Day Eleven Of The Minnesota State Fair

Sunday, Aug. 31 • Foundation Day In Carousel Park.

Stevie Ray’s Comedy Troupe has been making audiences laugh for nearly 20 years. Watch as they create instant comedy based on audience suggestions. Stevie Ray’s Comedy Troupe performs today at 11a.m, 12:40, 2:20 and 4 p.m. Atahualpa will bring Andean folk music, dance rhythms and contemporary songs to the stage at 11:40 a.m., 1:20, 3 and 4:40 p.m.

Today only: Kathryn Strand Koutsky and Linda Koutsky will be at the J.V. Bailey House throughout the day signing copies of their book, Minnesota State Fair: An Illustrated History. Photo courtesy Minnesota State Fair

Day Ten Of The Minnesota State Fair

Saturday, Aug. 30 • FFA Day

In Carousel Park: From 10 a.m. to 2 p.m. Cub Foods hosts activities and events including live music throughout the day, face painting, appearances by MN Twins mascot TC and samplings of cupcakes and pork tenderloin on-a-stick.

Day Nine Of The Minnesota State Fair

Friday, Aug. 29 • MPR Day

Today’s Deals: Early Bird Specials are offered until 1 p.m. on Mighty Midway and Kidway rides, games and concessions.

In Carousel Park: Join Minnesota Public Radio for a day of state politics, choral music and a family dance party. Local politicians will join host Gary Eichten for his 11 a.m. show. Later in the day, Classical MPR will present a concert by VocalEssence and 89.3 The Current will host a children’s dance party.

Day Eight Of the Minnesota State Fair

Thursday, Aug. 28 • Seniors Day.

Seniors (65 & over) admitted for $5. Early Bird Specials are offered until 1 p.m. on Mighty Midway and Kidway rides, games and concessions.

In Carousel Park: “The State’s Largest Senior Stretch & Stroll” kicks off with registration at 9:30 a.m. and a program at 10 a.m. Co-sponsors UCare and Volunteers of America, with support from the Alzheimer’s Association and Minnesota Good Age, are teaming up to teach seniors how to stretch their muscles and mind while adding steps to their day. The first 1,000 participants receive free door prizes, including pedometer, stretch band and t-shirt. Photo courtesy Minnesota State Fair

Day Seven Of The Minnesota State Fair

Wednesday, Aug. 27 • Hop On Transit Day

Today’s Deals: State Fair Express Bus service is $3 round-trip. Express or regular route bus riders may request a coupon for $2 off a regular-priced admission ticket purchased at the gate. (This offer is not valid for guests using pre-fair discount admission tickets or free Park & Ride services.) All-day discounts are offered on Mighty Midway and Kidway rides, games
and concessions.

In Carousel Park: It’s country, community and karaoke in Carousel Park. Join the K102 Wakeup Crew as they broadcast live from 6 to 10 a.m. Fans will have the chance to win a pair of tickets and meet & greet passes to see Toby Keith at the Grandstand. Later in the day, Clear Channel kicks off its “Many Faces, One Community” celebration with performances by different diverse groups. This will be followed by karaoke in the afternoon where certain participants songs could be played on the air.

Day Six Of The Minnesota State Fair

Tuesday, Aug. 26 • $8 at the Gate Day.

Everyone (5 & over) admitted for $8. As always, children (under 5) are free. Early Bird Specials are offered until 1 p.m. on Mighty Midway and Kidway rides, games and concessions.

In Carousel Park: Minnesota cooks create award-winning fare as the Minnesota Cooks Program kicks off its 6th year at the Minnesota State Fair. Meals will be prepared with locally and sustainably grown ingredients. Participating chefs include Nick Schneider from Café Brenda, Alex Roberts of Restaurant Alma, JP Samuelson from jP American Bistro and more. A kickoff breakfast show will begin at 8:30 a.m. followed by seven informative shows throughout the day.

Day Five Of The Minnsota State Fair

Monday, Aug. 25 • Seniors, Kids & MN State Patrol Day.

Reduced admission–Seniors (65 & over) and Kids (5–12) $5. All day discounts are offered on Mighty Midway and Kidway rides, games and concessions.

In Carousel Park: The Radio Disney Road Crew will be on hand with goodie bags for the first 4,000 kids who stop by Carousel Park. Radio Disney Party Patrol appears at 10 a.m., 1 and 4 p.m.

On West Dan Patch: MN State Patrol’s specially designed vehicles including the BATMobile, Patrol Helicopter, a 1932 Model A squad, tactical vehicle and other squads are on display.

Day Four Of The Minnesota State Fair

Sunday, Aug. 24 • International Bazaar Day .

In Carousel Park; KS95’s 4th Annual Variety Show featuring Greg & Melissa and Moon & Staci broadcasts live from 11 a.m.–2 p.m. Live entertainment will be provided by Casablanca Orchestra and Blue Ribbon Baker and “Tonight Show with Jay Leno” correspondent Marjorie Johnson will make a special guest appearance. At 1 p.m., KS95 key winners will try to start and win a G6 convertible.

Today Only: Today we celebrate the new and improved International Bazaar. Come and see the flavor of the old with the flash of the new. Sign up for prize drawings all day at the Festival of Nations Stage presented by the International Institute.

Day Three Of The Minnesota State Fair

Saturday, Aug. 23 • Motorcycle Safety Awareness & 4-H Day.

In Carousel Park: AM1500’s annual SuperTalk™ Saturday broadcasts live from 10 a.m.–noon with AM1500 All-Stars Joe Soucheray and Patrick Reusse. The 25th anniversary broadcast will feature the famous BabyWalk and AM1500 SuperTalk™ All-Stars Game Show. FM 107.1 will broadcast live from 3 to 5 p.m. All of the weekday talent will be out for a Gab-a-palooza. There will also be an FM 107.1 Host Swap. Fairgoers will have the opportunity to meet their favorite hosts.

On West Dan Patch: Motorcycle safety demonstrations and the St. Paul Harley Davidson fashion show featuring the latest in biker apparel.

Today Only: Hundreds of motorcycles rumble through the fairgrounds at 4 p.m. in the Bikers In Need Foundation parade. The 4-H Purple Ribbon Auction takes place at 6 p.m. in the Judging Arena.

Day Two Of The Minnesota State Fair

Friday, Aug. 22 • Governor’s Fire Prevention Day .

Early Bird Specials offered until 1 p.m. on Mighty Midway and Kidway rides, games and concessions.

In Carousel Park: Fire Explorer Challenge: youth firefighters compete in safety challenges. On West Dan Patch: The Hot Zone: fire trucks and safety equipment, mock extrications, sprinkler trailer, a safe escape house, exhibits and giveaways.

Day One Of The Minnesota State Fair

Thursday, Aug. 21 • Thrifty Thursday

Reduced admission–Adults (13 & over) $8; Kids (5–12) $5; Children (under 5) free. All-day discounts are offered on Mighty Midway and Kidway rides, games and concessions. Many merchandise and food vendors offer special Thrifty Thursday bargains.

In Carousel Park: AARP will celebrate its 50th Anniversary. Music representing five decades of service to the 50+ population will begin with Big John Dickerson and end with the White Sidewalls. A presentation will be made to AARP’s Legacy Award winner.

Spotlight On The Lowry Hill Neighborhood

The Lowry Hill neighborhood of Minneapolis is located west of Downtown, enclosed by Interstate 394 on the north, Interstate 94/Hennepin Avenue on the east, 22^nd Street on the south and Lake of the Isles Parkway, Logan Avenue and Morgan Avenue on the west.

Lowry Hill is named for Thomas Lowry, one of the original residents and developers of the area. Lowry was one of the early builders of the street car system as well as president of the Soo Line Railroad. The neighborhood hosts the Walker Art Center and Minneapolis Sculpture Garden. Source; City of Minneapolis and Wikipedia.

The Skinny On Short Sales

According to the Mortgage Bankers Association, every three months, 250,000 new families enter into foreclosure in America.

The recent decline in property values has created many challenges homeowners, but a “Short Sale” could be the key to a happy ending.

So, what is a short sale? Very simply put, a short sale is when the value of the mortgage is greater than the value of the property.

It is said that 90% of homeowners do not understand the difference between a foreclosure and a short sale. A foreclosure is the process of the bank taking back ownership of a house due to the homeowner’s inability to pay their mortgage. The home is now an REO or bank-owned property, and the lender will sell it for the listed price.

A short sale, on the other hand, is sold by the homeowner before a foreclosure takes place. The listing price is determined by broker price opinions, recent comps in the area and the condition of the home. And ultimately, in a short sale, the lender agrees to accept less payment than what is actually owed to them.

By definition, any homeowner that is two months late on their mortgage payment and can also demonstrate the inability to pay their mortgage would be considered a short sale candidate. The homeowner is considered pre-foreclosure when the bank officially sends a notice of default or a notice that they’re taking legal action against the homeowner to collect the debt.

Contrary to what most folks believe, a short sale can still take place during the foreclosure process. There are only two reasons that a homeowner is not eligible for a short sale:

• The foreclosure has already taken place and the home is up for auction
• The homeowner files for bankruptcy

According to a recent Freddie Mac/Roper poll, more than six in 10 homeowners who are delinquent in their mortgage payments are not aware of services available to them that would help their situation. A short sale is a win-win. It’s a win for the bank because they can recapture as much of this non-performing loan as possible. It’s a win for the seller because they’re going to be forgiven for a large portion of the money they owe and are saving their credit. And it’s a win for buyers because they can obtain a property that is priced right.

What’s more, stopping a foreclosure before it happens is in fact helping the economy and the real estate market. According to experts, one foreclosure can result in as much as an additional $220,000 in reduced property value and home equity for nearby homes

Another reason a short sale is a better option than foreclosure is because it saves the seller’s credit from being damaged. A foreclosure can drop a homeowner’s credit score by 300 points or more. A short sale will affect a homeowner’s credit score by 80 to 100 points on the average. It reads on your credit report as a paid lien or paid judgment, and is much easier and quicker to repair than a bankruptcy or foreclosure. Written by Darryl Davis for RisMedia.

The Great Minnesota Get Together

The Minnesota State Fair, also known as the “Great Minnesota Get Together”, is just around the corner and this year they have a few surprises.

In honor of the 150^th birthday of the state of Minnesota, the fair folks have assembled a ‘big top’ tent just off Heritage Square where events ranging from panel discussions to sing alongs and interviews with notable Minnesotans will take place.

The birthday celebration will culminate with a special event on Labor Day, the last day of the 2008 fair. The Minnesota Sesquicentennial Commission will present Minnesota’s five Honorary State Capitals for the 150th Anniversary of Statehood.

Bemidji, Thief River Falls, Detroit Lakes, New Ulm and Winona will provide live music and showcase their unique regional character and culture.Exhibits and entertainment include a 150th birthday cake! This special event will be held in Carousel Park.

New to the 2008 fair will be a rebuilt and revamped International Bazaar. The previous reincarnation of the bizarre was the “Mexican Village”. The new Bazaar is still in its old location, just east of the Haunted Mansion.

Foodies might appreciate some of the new meals on a stick that are making their debut in 2008. They include a chocolate and bacon concoction, studded with sea salt. Of course the old favorites like Pronto Pups and Mini Donuts will be in attendance.

The grandstand shows (as always) take a decidedly country sound with artists like Dierks Bentley, Brad Paisley and Toby Keith making appearances. The perennial favorite The Prairie Home Companion also makes their yearly appearance at the grandstand as well.

Admission is $11.00 but discount tickets are available at various Cub Foods stores prior to the start of the fair. Plus, the fair board has requested that food vendors try to keep prices reasonable, despite the recent wholesale price increases in food and other supplies.

This years State Fair runs August 21^st to September 1^st 2008. Photo Courtesy MN State Fair

For Sale: Graceland West

A Palm Springs estate that Elvis Presley bought in 1970 and owned it until his death in 1977 has hit the market with an asking price of $17 million.

The home, in which the rock-and-roll king recorded eight songs for RCA, is being offered as either a single-family home or as a business opportunity. The current owners, Reno and Laura Fontana, bought the property in 2003. They have operated it as a tourist destination for the past year.

After buying the house, the Fontanas began to receive requests to see the property from all over the world, Brooks said. About 1,000 people from all over the world have visited the property, known by locals as “Graceland West”. The Fontanas have remained in the house and live in a wing that is not part of the half-hour, $20 tour. The house, which has a capacity of about 150 people, is also available for corporate events at a cost starting at $20,000 per night.

Originally commissioned in 1946 for the family that owns the Jergen’s skin care line, the 5,000-square foot house was designed by architect Albert Frey. It is located on two acres of land in the San Jacinto Mountains. When he bought it in 1970, Elvis paid $85,000 for it, Brooks said. After Elvis death, Priscilla Presley sold it to American musician Frankie Valli. Courtesy the Wall Street Journal.

Buying Foreclosures: 101

Hoping to score a house on the cheap by buying a foreclosed property? There are good deals out there, but the process is complicated and risky. Here's what you need to know.

There are certainly plenty of foreclosed homes on the market. In the Twin Cities up to 25% of existing homes sold in the second quarter were foreclosures, according to Minneapolis Area Association of Realtors (MAAR).

There are three different stages of foreclosure, each of which presents different opportunities for buyers. The first step is to figure out which one makes the most sense for you.

Pre-foreclosure

A home goes into pre-foreclosure when a borrower has fallen behind on his payments, but the house has yet to be auctioned off. Buyers can find pre-foreclosures by poring over the delinquency notices that lenders file with county courthouses when a borrower misses a payment. These are typically filed 6 weeks prior to the sheriffs auction. Armed with prospects, buyers should go scouting. If they see homes they like, they should contact the owners to see if they want to sell.

Cold calling and making low-ball offers on people's homes can be difficult: Some owners are emotional, even angry. Many are trying to hold onto their houses and don't appreciate what they consider scavengers sniffing around.

Some owners are open to doing what's called a short sale, which is when a buyer pays less for a house than the mortgage that is owed on it. Lenders must agree to a short sale, and will then forgive the rest of the debt.

Often, banks are reluctant to do such deals, since it requires them to take a loss. It can take months and a lot of badgering before a deal goes through, and not every buyer is up for that kind of hassle. In buying any pre-foreclosure, experts advise buyers to not be turned off by dirty carpets or ugly paint jobs. That's where the best deals are.

Sheriffs' sales

In the next stage of foreclosure, homes in default are auctioned off on the county courthouse steps. These homes can be real bargains, but the process is a crap shoot.

Bidders can't inspect the property, so there's no telling how much work it needs. And there is also no telling what kind of liens there are against the home, due to unpaid taxes and so forth, which can also jack up the cost of these homes.

Even after a purchase, a deal can fall through if the current owner can come up with enough cash to repay the buyer the amount of the winning bid. In Minnesota, home owners have up to 6 months to redeem their property from the buyers. Despite the late night infomercials, it is extremely difficult to purchase a home at a sheriff’s sale in Minnesota. Often the primary lender will be bidding against you to cover their interest in the property, aking it unlikely that the average home buyer will pick up a home on the courthouse steps for just pennies on the dollar.

Post-foreclosure

After a lender takes back a house, the property goes back on the market as what's called an REO (real estate owned) property. These are treated like ordinary sales, listed with a broker. Typically, bargains are not as sharp.

Another way to buy an REO is through an REO auction. As bank portfolios of these properties have swollen, they've started to unload them en masse. Locally, REDC has auctioned over 200 homes in one weekend. Look for more of these auctions in the future as banks work to unload inventory before winter. But remember, inspect the property before hand, or risk losing your money (and more) in a money pit called ‘home’.

Always rely on a licensed real estate agent when attempting to purchase any home. They can advise you on price, condition and all the pitfalls associated with buying distressed properties. Courtesy CNN. Additional information by blog author.

I Need A Nap!

Napping isn’t just for your grandpa anymore. In fact, folks at fancy spas like to nap, too. Sleep-deprived Americans are increasingly turning to the power nap and afternoon siesta to restore alertness and enhance performance, studies show. And some spa patrons are shelling out big bucks just to snooze.

The Kohler Waters Spa in Burr Ridge, Ill. offers a 60-minute massage with a 15-minute restorative nap service for $150. The Kohler spa has performed more than 50 custom massages with restorative naps since the spa opened in April.

But a catnap may not be the answer to bedtime bliss. Some sleep scientists say napping can negatively affect nighttime sleeping and make you groggy. Meanwhile, other researchers say dozing can relax, rejuvenate and improve health.

A six-year study released last year by the Harvard University School of Public Health and the University of Athens Medical School in Greece found midday napping at least three times per week for at least 30 minutes reduced heart disease deaths by about one third among men and women

Napping also takes the edge off sleepiness by adding to cumulative sleep time, said Gregory Belenky, a sleep researcher at Washington State University.“You can split your sleep up and still have the same aggregate effect,” Belenky said. “Nap early, nap often.”

Lisa Shives, president of Northshore Sleep Medicine in Evanston, Ill., disagrees. One drawback to napping is sleep inertia _ the feeling of disorientation when awaking from a deep slumber. People who insist on snoozing should keep the nap to 30 minutes or less to avoid getting into the deep sleep cycle, she said. “If you try to take a nap and it’s too long, you wake up super groggy,” said Shives.

But if you’re a napper, rest assured: You’re in good company. Fifty-four percent of the 1,000 Americans polled in a 2007 survey by the National Sleep Foundation said they took at least one nap during the prior month. The respondents on average took 3.5 naps during the month, with an average reported nap time of about an hour. Courtesy Chicago Tribune.

FHA Comes Full Circle

In the post-boom world of real estate, FHA loans are hot again.

The Federal Housing Administration’s loan program, eclipsed during the years of soaring real estate prices and various no-money-down mortgages, is fueling new lending throughout the United States.

The FHA program, in which the federal government’s guarantees make loans more affordable, is now accounting for the majority of the mortgage business, as credit markets tighten and conventional mortgage guidelines become more restrictive.

With conventional lenders demanding down payments of 5% or 10%, the 3% down payment required by FHA has become a bargain. At the same time the FHA program is putting confidence back in the market.

The FHA program never went away. But during the boom, market dynamics made the program far less relevant. Borrowers could get mortgages without any down payments.

Two things have changed. Prices have plunged and Congress has raised the limits. Under the federal housing law that received the support of President Bush last week, the cap on FHA loans will settle at about $365,000 for Hennepin County. The ceiling varies according to prevailing home prices in each region.

The bill also allows the FHA to provide up to $300 billion in new guarantees to help “at-risk” homeowners move into more affordable loans.

The measure could help up to 400,000 borrowers, but it applies only to primary residences. Second homes and investment loans don’t qualify. The existing lender would have to agree to a “substantial write-down” of the amount of the mortgage. Borrowers who believe they could qualify should contact an FHA-approved lender.

However, as part of the FHA overhaul, the Federal government is pulling the plug on one form of financing; the use of non profit foundations to come up with the 3% down payments. Under the new law, the use of non profits will be eliminated Oct. 1. Federal officials had long complained that the program, under which the down payment is supplied by the seller, leads to more defaults because it effectively inflates the total price of the property.

Fortunately, under long-standing rules, FHA home buyers can still use a cash gift from a family member to make the required 3% down payment.

Courtesy Sacramento Bee

Farewell To My Past

Sad news for another piece of my childhood. Morris Park grade school in Minneapolis has been put up for sale after having been previously closed by the Minneapolis school board. The 1939 era school with 20 classrooms was apparently no longer needed as a school.

The school enjoyed some infamy in the early 1960s when a fighter jet from the then nearby Air Force base crashed into the school parking lot, killing the pilot.

Based on a school board study, the 39,705 square foot two story school is best suited for anything from another school to senior housing.

Hopefully this leftover gem of my childhood can be kept intact, unlike Nokomis Junior High, which was demolished many years ago and replaced with senior housing. And yes, that the Junior High that I attended many years ago.

The sale of the property is being handled by NorthMarq. Bids are due September 08, 2008

Photo courtesy Minnesota Historical Society / Norton and Peel collection.

Delusions of Grandeur

Forget the phrase “Not in my backyard.” These days, homeowners are thinking “Not my house!”

That, at least, is the sentiment revealed in a survey from the real-estate data company Zillow.com, which each quarter conducts a survey to gauge homeowner confidence in the health of the housing market. Zillow.com, based in Seattle, is a website that tracks home values across the country.

In its second quarter survey, 62% of the 1,361 homeowners who responded to the survey by Zillow said they believe the value of their own homes has increased over the past year.

But according to Zillow, that high level of optimism is out of sync with reality. The company’s research shows that the 77% of U.S. homes depreciated in value over the past year. Only 19% appreciated and five percent remained the same.

The survey also found that people who thought their home’s value had increased were more likely to make improvements. About 56% of all respondents said they would be spending money on home improvements. Of those, about 17% said they would be spending money on major improvements, such as replacing a roof or remodeling a kitchen; 49% said they would be investing in minor improvements, such as repainting a room or installing a garbage disposal.

Though optimistic about the value of their own homes, homeowners were less confident about their expectations for the market in which they lived. Seventy-five percent of homeowners expected their home value to increase or stay the same over the next six months, while 25% expected it to decline. Forty-two percent expected the value of the market in which they lived to fall, and 58% thought the values would increase or remain the same.

More than 90 percent of homeowners report that foreclosures have occurred in their local market already, and 80 percent anticipate that the rate of foreclosures over the next six months will remain steady. Many of those people—70 percent—are concerned that the falling value of neighbors’ homes will affect the value of their own homes. Yet, half of those surveyed don’t think that the government should provide assistance for people facing foreclosure to keep their homes.

Harris Interactive conducted the survey online for Zillow between June 30 and July 2.

Source: Wall Street Journal and Zillow.com

Step Right Up Before They're All Gone!

In a sign that the U.S. housing market may strengthen in coming months, an index of sales contracts on previously owned U.S. homes rose 5.3% in June from the prior month, the National Association of Realtors reported Thursday. However, the index, which is considered a leading indicator of existing home sales, was down 12.3% from the June 2007 level.

Pending home sales in June rose 1.3% in the Midwest, the smallest increase of any region. The May pending home sales index was revised to a decline of 4.9% from the prior estimate of a 4.7% drop. Source; Marketwatch and NAR.

Downtown And Dinner

Downtowners will no longer have to slip across the river to shop for groceries. Lunds is opening a supermarket in downtown Minneapolis that will anchor a new mixed-use development.

Edina-based Lund Food Holdings Inc. said Tuesday it signed a long-term lease with Minneapolis-based Alatus for a 30,000-square-foot space in the development. Construction on the project, which will be located at 11th street and Hennepin Avenue, will start in the fall of 2009.

A spokesman for Lunds said the company will likely pattern the store after its Northeast Minneapolis location, at University and Central Avenues, which opened in Nov. 2006. That store, which it said has been “tremendously successful,” features a heavy emphasis on perishables and prepared foods, catering to an urban population.

No word on what is happening to the previously announced Lunds store which was to have been built one block west on 12th and Hennepin.

Lunds operates 10 Lunds and 11 Byerly’s supermarkets throughout the Twin Cities. Source Twin Cities Business News.

Good News For Home Buyers

Good news for folks considering buying their first home, or those re-entering the housing market. Congress recently approved a new housing bill with major cash benefits to buyers. If you have not owned a house during the past three years, or are considering buying your first home, and
can go to closing before June 30^th 2009, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).

Buy any house -- new, old, any location or condition, any price range and close by June 30^th 2009-- and the IRS will cut up to $7,500 off your tax bill for either this year or next. For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund. If your tax bill is less than the credit amount, you get the difference back from the Treasury.

Do you own a home now? If so, you're not eligible for the credit. Did you sell your home more than three years ago and now rent? You are eligible. The same is true if you've never owned a home before. Close on a house before next June 30, and you can claim a credit of up to 10 percent of the purchase price of the property up to a maximum of $7,500. If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down in increments. You cannot claim the credit if you are a nonresident alien, financed the property using a tax-exempt bond mortgage, or do not plan to use the house as your principal residence.

The program requires homeowners to make repayments, starting in the second tax year after purchase and continuing up to 15 years, through their federal income tax filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period, and you have no gain on the sale, you won't be expected to pay the credit back from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain.

How do you claim the credit? You simply request the credit on your tax return for either 2008 or 2009. Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. Information courtesy Washington Post

(Safely) Getting The Lead Out

Starting this year home remodelers will face stricter new rules by the federal government when it comes to remodeling homes with lead based paint. Essentially every home built prior to 1978 will be affected by the rules set forward by the Environmental Protection Agency or EPA.

These new rules now specify notification and work practices for renovations and repairs in all privately owned housing built prior to 1978, except elderly and housing for the disabled and 0 bedroom units.

The new rules require that substantial repair and renovation be done by trained and EPA certified renovators in pre-1978 housing where children under 6 and pregnant women are present and where renovation work is done by paid contractors who will disturb surfaces with lead-based paint. Homeowners doing work on their own homes are exempt. Landlords, who use their own workers on any rental property, including one and two family houses, are included.

Both interior and exterior work is regulated. However minor repairs where a surface of less than 6 square feet on 20 square feet, is exempt. Window replacement is considered a substantial repair.

Surfaces that are free of lead-based paint are exempt from the rule. However the new rules provide for a new method of determining whether a surface has lead-based paint, even though no available test kits that meet EPA standards. EPA believes they will be available by April 2010 when that portion of rules goes into effect. Until then, EPA will allow use of currently available lead testing kits

The rule prohibits the use of dust generating techniques, including the use of open flame burning or torching, power sanding, grinding, planing and sandblasting unless such machines have a HEPA exhaust control.

EPA has created a new category of trained personnel called certified renovators who must be trained and certified and who supervise all lead work. They will work for certified renovation firms, who are responsible for insuring that all requirements are met.

Work areas must be enclosed in plastic. Objects within the work area must either be removed or sealed in plastic. Modified procedures apply to the exteriors of buildings.

The most dramatic change in these rules is clean up verification.

First the certified renovator must visually confirm that all dust and debris has been cleaned up and then conduct the white glove test by wiping a wet commercial cleaning cloth across the wall or window surface. The cloth surface is then compared to a cleaning verification card. If the cloth is lighter than the verification card, then the surface has passed clearance. If it is darker than the card, than the surface must be re-cleaned and the white glove test performed again.

The renovation firm must keep records as well as keep track of the various notifications required by the new rules. After December 22, 2008 renovators must provide EPA’s new pamphlet Renovate Right: Important Lead Hazard Information for Families, Child Care Providers and Schools. This replaces a pamphlet currently in use by renovators and Realtors. While some of the rules are now in effect, the full effects of the EPA rules will not occur until April 2010. Courtesy Citizens Housing and Planning Council of New York. (Corrected August 07 2008)

When Homes Are Like Fruit

Foreclosed homes continue to wreak havoc on the single family housing market with foreclosures increasing a startling 120 percent from just a year ago. For those of us who track these grim statistics, we had A LOT of foreclosed homes last year at this time, so this is doubly troubling news.

Nationwide, Minnesota is ‘average’ in the number of foreclosures, sitting at 27^th place out of 50 states with 5,673 foreclosures in the second quarter of 2008.

This was a modest increase of 34 percent from the first quarter of 2008. All of these statistics are from Realty Trac Inc, an organization that tracks foreclosures and other news about the real estate industry.

With that said, I would like to partially dispute the notion that foreclosed homes are significantly depressing the value of the homes of everyone else.

I liken a foreclosed home to a bruised banana, as they are often sold ‘as is’ and are in less than perfect condition. When a grocer has a bruised banana, he marks it down for quick sale. Once the bruised bananas are gone, they have no impact on the sale of good bananas. Furthermore, the demand for bruised bananas is quite a bit lower than the demand for good bananas, as the same folks that buy bruised bananas are not likely the same who shop for the more expensive good bananas.

The faster we can move through all the foreclosed homes on the market, the faster we will return to a more level playing field. Until then, doubt and uncertainty may just rule the real estate market.