I live next door to a foreclosed house.
The story, from what I can piece together is that long time ago, say 15-20 years ago, some Ethiopian guy bought the house as an investment property. According to a neighbor on the block, he did rent it out but left it vacant for about 7 years. Then for about a year or two he rented to some Ethiopian sisters, one of whom got married and they all moved away. Then the Ethiopian owner sold it to another Ethiopian for way too much at the top of the market. This new Ethiopian owner rented to an Ethiopian family who stayed for a few months, and then the house sat empty. And then it went into foreclosure and the bank owns it. The bank tried to sell it for close to what the guy paid for it, and it sat. Then about every 1.5 months they would decrease the price. It remains unsold.
A friendly Vietnamese couple looked at the house and were very interested. So much so that one day they brought an inspector with them. I’d like the house to sell, but I also want any future owners to be aware that there are some busted pipes in the house, as the pipes failed last winter sending water into my basement. So the couple took in that information and went around with the inspector. They spent an awful lot of time looking at the rear kitchen portion of the house, which if anything like mine, is structurally crappy. The stucco is cracked and red brick dust seeps through. The layout of the 2nd floor is, challenging. Anyway, they didn’t buy it. I’m sure the numbers just didn’t work out. The amount the house was selling for, plus the amount to fix the busted piping (which would mean taking up portions of the floor and possibly finding mold) just to make it suitable for human habitation, was more than likely far above it’s market value. That’s not even addressing the structural and mechanical issues, nor is the price of making it ‘nice’ as opposed to ‘not condemned’.
Let me throw in some numbers. The house at the time the couple looked at it was $310,000. This is for a townhouse of about 1,000-1,200 sf. nothing fancy, aged AC unit, blown in heat, busted pipes, electrical systems a big unknown, weedy front and back yards, and appliances over 10 years old. Plumbers cost money. So say there isn’t any mold under the house and you just need to fix/ replace the pipes, and it can be done from a crawlspace hatch, so there is no replacing the floor? Well that’s over $3K, based on how much I’ve paid to have a ‘simple’ plumbing job done in an easy to access area. But there could be mold, and the floor might need to be taken up. And while you’re doing that you might as well gut the whole thing. When I asked how much someone, doing it all themselves spent to gut and fix their own house, which is similar in size to mine, the amount was about $60K. I paid well over that, let’s just say my contract had a $80K limit, we hit the limit and there was still stuff (like installing heat and AC) that needed to be done when I ran out of money. That amount doesn’t include the paint, the tub, and other materials I bought myself.
The houses on the block, sans basements, are assessed for around $350K. I’m somewhat doubting that whoever buys the house is willing to put into it more than its market worth. The bank may have to knock the price down to the high to mid $200K range before anyone bites.
Tag: Housing
Stuff at the DC Archives
Okay there is a lot of history stuff from this weekend with the Washington Historical Conference and an email that went out regarding historic preservation that raised one of my eyebrows.
I was happy to stumble upon the DC Archives desk because the web presence of this part of the DC government is like nil. I had a researcher friend complain that he couldn’t find any information about hours, or contact info to save his life. It’s there, just not terribly easy to find like the Washingtonia collection or the Historical Society’s archive.
The DC Archives is at 1300 Naylor Court, NW (office 202 671 1105, fax 202 727 6076) and off the top of my head they have regular office hours. So they are right in Shaw, not too far from the Convention Center.
At the desk I got a list of the different series the archives has and here are a few highlights:
Department of Consumer and Regulatory Affairs:
Building/Construction/ Alternation Permits & Plans (1949-1995)Department of Public Works:
Plans of Demolished Buildings (1900-1979)Department of Housing and Community Development
Redevelopment Land Agency Records (1965-1976)
Shaw & H Street Building Survey Forms (1968-1972)
14th Street & Downtown Survey Forms (1968-1974)
Organizational Records, includes annual reports, history, etc (1934-1987)
Not on the list but I think it was confirmed that the records for a department that condemned buildings may be at the archives as well. I’m very interested in those.
Condo conversion suit
Read the following:
DCRA Announces Guilty Plea in Condominium Warranty Case
From DCRAs Communications Team
GOVERNMENT OF THE DISTRICT OF COLUMBIADepartment of Consumer and Regulatory Affairs Announces Guilty Plea in Condominium Warranty Case
(Washington, DC) Department of Consumer and Regulatory Affairs Director Linda K. Argo announced that on Oct. 5, Mudasir Khan plead guilty to one count of False Statements in a Condominium Registration Application and one count of Failure to Post a Bond or Letter of Credit for 45 R Street NW.
Under District law, condominium developers or building owners are required to warrant (or guarantee) their construction work with the Condominium and Cooperative Conversion and Sales Branch. They secure this obligation by posting warranty security. Several forms of security may be posted under the statute, including a letter of credit, bond or another form approved by the Condominium Branch.
[SNIP info on warranties]
Under the plea agreement, Khan must:
Pay a criminal fine of $15,000 on both counts – totaling $30,000.
Post a warranty security for $5,000 for 45 R Street NW.
Pay a $250.00 Victims Compensation Fund fine on each count – totaling $500.Khan was sentenced to 30 days in jail on each count, to be served consecutively. The sentence was suspended and Khan was placed on one year of supervised probation for each count to run concurrently. Khan must report to his probation officer on October 23.
[more SNIPing]
“DHCD understands the critical mission served by the Rental Conversion and Sale Division,” said DHCD Director Leila Finucane Edmonds. “We will also hold developers responsible for complying with District law and take strong and decisive action against those who do not.”
Not having spent too much time paying attention to the structures on “historic” R St (they had banners saying so), I’m guessing this was a townhouse conversion. Correct me if I’m wrong. Townhouses converted into condos have always been a big question mark for me. But then again, I didn’t want to be bothered with condos in any shape or form so I never paid that much attention. There are many town homes around Bloomingdale and Shaw, large town homes, converted into 2 or three condos. Is that a good thing? I don’t know.
If you’re a GS-5 step 1, you’re poor
Argue with me if you want but a MA in History is one of the most useless graduate degrees out there because my first job out of grad school was a GS-5 step 1 Museum Technician job (bathrooms, down the stairs and to the left). Looking at the AMI link from a posting on the ANC2C02 blog clarifying affordable housing and the locality pay schedule for the DC metro region from the largest employer, GS-5/1 are a tad below 50% of the AMI (Area Median Income) for single households. You hit 50% at step 4. I’m not criticizing Uncle Sam’s wages. No, my then $19K (1995-96) salary and living in a shared apartment barely being able to pay back my student loans for 2 years inspired me to go back to grad school and get a practical degree.
Now I know non-profit people, just starting out, with their bright new shiny BAs and BSs or whathave you, get paid jack because just working for the cause is payment enough. Besides, more where they came from when one set gets jaded. Anyway, when I did once non-scientifically compare salaries with newbie non-profit people, they were also below or around 50% of the AMI. In time this changes. You get experience, pick up some valuable skills, get older, get/apply for something else in the org or at another nonprofit or association, go back to school, something, and you start moving into the 60%-80%-100% range. Or you move back to Wisconsin or Minnesota, one of those things.
Well, that went well
Well today after getting my hair done, I went to the Shiloh Baptist Church Family Life Center’s Forum on Gentrification. It was a good step on the part of the Family Life Center to have something of a dialog, which despite nearly falling into chaos*, where different opinions voiced themselves. Hopefully, some Shiloh groups and community members can come together again to improve communication, find out what we can agree on, and work together on that.
I really did not take any decent notes. Except a notation about something Alex Padro, one of the panel members said about who gentrification really hurt were the people in boarding houses and people in single family townhomes. Shaw has the highest concentration of subsidized housing in Ward 2, with Lincoln Westmoreland, Foster House, Asbury Dwellings and some other places. And, if I remember right, the tenant groups have long covenants that keep the housing affordable to them. So whatever happens in the real estate market, their fine. However, found out that the United House of Prayer, which had/has a fair amount of affordable housing is going market/ luxury rate.
Also it was good to meet/see people I mainly know from the online experience, Ray and the man behind OnSeventh. The great thing about neighborhood blogging is at some point you are going to run into people off-line. Oh, and I stand behind what I said about libel. If there is anything that I have typed that is untrue (outside of an opinion) bring it to my attention, and if it is false, I will retract it or adjust it, basically try to make it right. I am not hiding behind a blog, believe me, you can find me if you put some effort in it, like emailing me, or wandering over to a BACA meeting. At some community gatherings, some people (Scott Roberts) are more than happy to point me out.
After the forum I did talk to some folks who were members and volunteers for Shiloh. There are a few ideas that I hope some who can act on these ideas can work with. One is getting new Baptists in the area to join. Second is doing a better job of advertising different missions that can help people in need in the immediate area take care of immediate needs, like a food pantry and a benevolence fund, and if a person needs to tap into it right this minute, how they would get connected. Third, have a church presence on one of the civic association committees, like Ebeneezer Baptist is with BACA.
*****
I’ve been typing this up between dinner and had a nice long conversation with a fellow with a Shiloh justice ministry spin-off, the Urban Housing Alliance, who was at the forum. Long and short of it, because I really want to get back to dinner, what’s going on with Shiloh and the properties and the official justice ministry to address issues is complicated. This is the part where I don’t want to be bothered with the infighting because I have to side with my family members who are Shiloh members and supportive of current leadership. But the fellow made a good point of some failings with current leadership and some of the problems we are seeing.
Anyway, due to issues related to the infighting & parking, the Urban Housing Alliance will be meeting at a friendly location for them, 4311 R St, Capitol Heights, MD October 20th from 10:30AM to noon. ‘Cause I asked, why out in Maryland? It seems they also meet in DC as well and their goal is to provide services, free of charge, to DC citizens (I gather from the discussion) to cut property taxes, lower rents, and hold on to homes.
Okay, din-din.
***************
UPDATE: Off Seventh has more here and here.
*I say the same thing about my church’s screamy baby service with kids squirming and not providing the expected answers when the priest does the kiddie focused sermon.
Gentrification and housing
Because of this blog, I get asked about gentrification. I’m not a public policy wonk, or a student of urban planning, or an activist, but I am a citizen with an opinion on the topic. One question is if affordable housing will disappear because of gentrification? Um, short of Mothra coming in a flattening 3/4ths of the hood, no.
The reason why is just off the top of my head there are a couple of public housing units (see here), the co-ops and other apartment buildings that are not market rate on 7th, 6th, 5th, and 1st Streets, that have sizable footprints and surface parking lots (see the DC Real Property Map). Some are owned by churches, which doesn’t really mean anything, because a church owns (in full or part, not sure) Kelsey Gardens. But as long as the churches see it as part of their mission to provide affordable housing (with the help of being tax exempt) those housing units should be fine. So the cry that there is no affordable housing or that affordable or low income housing will disappear in Shaw, doesn’t ring true in my ears.
I do acknowledge that among privately rented townhouses and small 4-6 unit apartment buildings there is a danger. However if a landlord decides to sell his townhouse to someone who will more than likely want to live in the unit and be a resident homeowner, I think the neighborhood is better off because it stabilizes the community.
Anyway I started writing this to point out a function going on this weekend. Shiloh Baptist Church this weekend is putting on a Gentrification meeting/ forum whathave you reported here and here, and probably a few other spots. It’s this Saturday between 1-4pm at 1510 9th St. And to touch on OneDC’s rally for their favorite bidder for Parcel 42, but I’ll get to that later.
Housing around
Affordable housing, workforce housing, low-income housing, subsidized housing, senior housing, market rate housing and the various aspects of those need to be illustrated in an easy to understand booklet because some of the subtlies and differences are getting lost on me. As a voter in Shaw, the differences matter because it is the politicos that can approve or tweak the various developments going up or around. I have an interest in the type of big buildings that go up with people with various needs and wants, that impact the kind of public and commerical ventures that come to the hood.
My current question regarding the differences is how and from where do the people who fill the different rental housing options come from? I wonder this because I’m trying to figure out where do people, who may not be invovled with any social service agency that may act as a clearinghouse, find out about housing that isn’t market rate.
I also think back to my first Shaw apartment. It was on the corner of 12th and Rhode Island NW, in the basement, no AC (w/ window bars that wouldn’t make a window unit possible), window near the dumpster, 2 bedrooms, 1 bath, $525 ($633 in 2007 dollars). I found it in the Washington Post. Because of the location I thought it was a typo, but checked it out anyway. Nasty carpet and dead roaches littering the kitchen, I applied quickly. I think I had to state my income as part of the credit check, but I had just gotten a ‘real’ job a few weeks before so all I could show was my meager GS-6($26K) salary from the job before. I don’t know if that was a qualification, I don’t remember anyone mentioning it. I may have been technically, low or low-moderate income at that point. Also I didn’t know if the building or unit was rent controlled or what the deal was, I decided not to look cheap centrally located housing in the mouth.
So I wonder is, will, affordable housing be advertised widely and in various mediums to attract various renters?
Y’all mean
Because my usual Wednesday activity has been discontinued and because I don’t have a TV I wandered over to the ANC 2C Show. I don’t think my skin is thick enough to deal with a full fledged meeting, ’cause y’all mean. Not to be too Deanna Troi, but Captain, I sense hostility.
I say full fledged because Ms. Brooks appeared ill at the beginning of the meeting and the official meeting was adjourned sometime after the minutes (I believe, I can’t hear that well) were approved. What occurred after she and Mr. Thorpe left was a community meeting facilitated by Misters Chapple and Padro.
I guess one good thing was the leader of the Organization for Training Others in Need, Carole A. Mumin, wife of Ibrahim Mumin, addressed her grievance with Mr. Chapple and his reporting of the DC Auditors report. She stated that she erred in giving the auditor the wrong receipts, which resulted in a damning report. There were apologies, speeches and testimonials about the program.
Moving on.
There was something about a building on New York Ave. MVSQ has concerns. I wonder how realistic is it to move a brick building that isn’t stable. But I’m keeping my thoughts to myself.
Then lastly, there was Parcel 42 and the presentation was for a matter of right proposal. Matter of right, good, as for reasons I’m not entirely free to blog about, PUDs take for-ever. You can get married have kids and send those kids off to college before some PUDs get finished. Not so great, and I’m keeping my thoughts to myself, but the presenters were suggesting 100% affordable housing. Doesn’t the Susan Reitig House of Prayer building that’s up have affordable housing aspects? And then across 7th St there is a post-riot affordable housing building, which across 8th from that building another affordable housing structure, and across R Street from that a public housing. Then across R/Rhode Island from Parcel 42 is senior affordable housing. So short of the 7-11 that intersection would be a concentrated area of affordable housing if this plan was chosen. I’m no city planner, but isn’t this almost like concentrating poverty? And despite being structured to have retail or some commercial space on the first level the building on 7th and R (Lincoln-Westmoreland? Name escapes me now), there is little for profit business that I see. So something is wrong if pre-existing space is underperforming.
I’ll stick with the peace, love and happiness of 5C. I am gaining a greater appreciation for Jim Berry and his legacy of grace and being slow to anger.
Quick thought on housing and gentrification
There is someone moving into the neighborhood today, who in 5-10 years will complain that gentrification moved them out. This thought came to me after a quick conversation with an older woman (maybe not quite senior citizen) who was moving into a rental house. A house that has been ‘affordable’ since I’ve been in the neighborhood. And it has had a fair amount of turnover (but that’s because the landlady is horrible) so it remains a housing option.
There is little purity in the gentrification that happens in this neighborhood. All the poor people do not move out at the same time to be replaced by people with more money. Not all the landowners sell when the market is hot, some keep holding on, maybe through greed or apathy, and then the market cools. There is loss, there are fewer housing options for lower income groups, however there isn’t a 100% loss of affordable housing from the market.
I write this from what I’ve observed on my block. At least three houses (there might be more) in the six years I’ve been noticing appear to fall in the ‘affordable’ category and they though the crazy RE market and it’s current cooling have had some turnover with tenants and yet have had the same kind of tenant.
Foreclosure
The house next door to mine is being sold by the bank. I suspect that the guy who bought it overpaid for the 2bd/1.5 bath no basement and probably overestimated how much he could rent it out for. Rents in the eastern Shaw area (based on a quick Craigslist search) range from $1500- $1700 for similar units. Dude paid about $400K for the place. I’ve been in it, it isn’t worth $400K. Heck, even my beautifully renovated 1/2 painted house isn’t worth $400K.
Now it is on the market for something in the mid 300K range ‘as-is’. Competing with it on the same block is a nicer end unit in the low $400K. I don’t know how the two will play off each other, but have seen at least one set of buyers look at one and then the other.
I realize that this is not the only piece of real estate where some ‘investor’ paid too much and failed to notice that the mortgage, taxes and insurance were more than what the market would bear as a rental. But I’m not all that sympathetic to a group that jacked up the housing prices because they couldn’t gage the market. Also I think this is the same group that ‘renovated’ houses for flipping without a decent eye for beauty only to have their properties sit because they u-g-l-y. But that’s another post, for another day.