By Tom Bozzuto, chief executive and chairman of Bozzuto Group, from the Capital Business Section of The Washington Post.
For many of us who are active in the business of developing, building or maintaining apartments, and even for those of us at companies like mine where we also build and sell homes, it seems obvious that what we do not only fulfills an important need, it is of value to the American public. Whether we create and run high-end rental housing or apartments for people of more limited means, we know that what we do has great value. We know that there is demand for what we do. We know that we are providing the homes of Americans just as much as we are when we build homes for ownership. At our company, and in our industry, we are proud of what we do.
Furthermore, between 35 and 40 percent of Americans rent. Yet, in my experience, most of our public officials still think of these people as those who cannot afford home ownership. In this view, Americans are divided into two camps: those who own homes and those who want to. There seems to be a belief that if you rent, it is because you either lack the funds to buy a home or you are too young to do so. And in either case, the politicians seem to believe that you are unimportant if you rent because, they believe, if you rent, you don’t vote.
The historical reasons for this mind-set would require a book to explain. So I won’t even try here. But the fallacy of this belief – this conviction that everyone should own a home – should have been demonstrated clearly by the recent housing collapse where public policy, excess liquidity in the marketplace and rampant greed (on the part of not just the lending and realty industries, but also those who bought more home than they could afford) combined to put many Americans into serious, and in many cases, devastating financial trouble.
But many public officials, and certainly a lot of the public, still don’t understand. They still live under the old paradigm. Somebody needs to tell them: This is no longer the ’50s. Many people rent in America as a matter of choice, not necessity. Many of these people love the flexibility renting provides. Many like that renting allows them to live in places where they couldn’t afford to buy. These people, these renters, are contributing members of the community who hold full-time jobs, spend money, volunteer and vote.
Now, let there be no confusion about my personal perspective. I am not against home ownership. Far from it. I have owned a home for 30-some years. My company builds beautiful homes for sale and I’m very proud of that. But I have always believed that the decision whether to buy or rent is not an economic choice, or at least not primarily so.
Lots of arguments and examples can be used to show that owning a home is either a better or worse economic investment over time than is renting and investing what would have been a down payment. I’m not going to get into that economic debate here. No, the decision to rent or buy should be a lifestyle choice. If you value your flexibility, you should rent. If you are at a point in your life where you have a level of social stability – you are not likely to change jobs, change communities, change mates – and you can afford the maintenance that comes with home ownership – then perhaps owning makes more sense. But the decision should be made, like every other, with a clear understanding of the trade-offs.
So yes, the public and public officials largely don’t know much about the apartment business, and they clearly don’t understand who the renter of today is. Anything any of us who work in the rental industry can do to increase the awareness of who rents today and why, we should do. The National Multi Housing Council and the National Apartment Association, in an effort to address this issue, have created a Website that does a great job of this. I call your attention to www.weareapartments.org .
And through their political action efforts, these associations are working to inform our elected officials. But, this effort can’t be purely left to the associations. We each must use our contacts and influence to make the public aware that renters deserve to be treated with the same respect and dignity as are those of us who own homes.
From Maryland Housing Quarterly:
First Home Mortgage Corp. was honored as the Maryland Mortgage Program’s Most Productive Lender in 2012 – and the lender with the greatest number of Maryland Homefront loans – at DHCD’s annual Top Lender Breakfast on Feb. 13.
DHCD works with an ever-expanding network of local and national lenders to provide a diverse range of quality fixed-rate mortgage loan options with low interest rates and generous downpayment assistance through the Maryland Mortgage Program.
Each year, DHCD recognizes members of the Maryland Mortgage Program’s lender network for outstanding performance at its Top Lender Breakfast. The February get-together also gives lenders an opportunity to learn about new Maryland Mortgage Program products and kicks-off the upcoming lending season.
Other 2012 Top Lenders include:
From Maryland Housing Quarterly: A Message from Secretary Raymond Skinner, Maryland Department of Housing & Community Development
The Wall Street Journal reported recently that first-time homebuyers, a critical component of the housing market, are in danger of getting left behind in the current real estate recovery.
More and more families have the income, but not the savings to afford the downpayment for a new home, the Journal reported. Lenders have gotten more restrictive extending credit. And although low prices and low interest rates make now a great time to buy, first-time homebuyers frequently find that they are unable to compete with investors, who have the cash in-hand to snap up the best deals.
Yet, as the Journal story noted, first-time homebuyers are “the foundation of the real estate market and are major contributors to their local economies, often buying up older homes, revitalizing communities and spending money on furniture and renovations.”
This is why programs such as the Maryland Mortgage Program are critical to a broad-based and sustainable economic recovery. Our competitive interest rates and our generous downpayment assistance help make homeownership more accessible and affordable to those hardworking families who are so important to our economy.
Our goal is to make Maryland’s flagship homeownership program even better.
Under the leadership of Governor Martin O’Malley and Lt. Governor Anthony Brown we adopted a mortgage-backed securities platform to ensure a steady flow of resources for our programs and services. We are steadily expanding our network of lenders who offer Maryland Mortgage Program products; as well as the number of employers participating in our Partner Match program. And in recent months, we launched new products to serve a broader range of families, including our Targeted Areas initiative, our Maryland Homefront Program and the 97 % Loan-to-Value Conventional Refinance Program.
In fiscal year 2012, we reserved Maryland Mortgage Program loans to 1,819 families for more than $315 million. We are surpassing that performance this year.
Our message to homebuyers is that now is a great time to buy!
Our message to lenders and realtors is that now is a great time to partner with the Maryland Mortgage Program!
Working together we can help build strong families, strong communities and a strong Maryland economy through homeownership.
Nixon Peabody invites you to attend “Lunch & Learn – Social Media – A Strategy Session for Nonprofits”
Date
Friday, August 23, 2013
Time
Noon Registration and lunch
12:30–1:30 p.m. Program
Location
Nixon Peabody LLP
401 9th Street NW
9th Floor
Washington, DC 20004
RSVP
Kindly respond by Wednesday, August 21.
Contact
For more information, please contact Christina Mitchell at 202-585-8175 or cmitchell@nixonpeabody.com.
The U.S. Department of Housing and Urban Development has approved the first stage of Maryland’s plan to help Somerset County residents recover from the effects of Superstorm Sandy. Learn more.
The first phase includes $3 million to help low- and moderate-income owner-occupants rehabilitate or replace their homes and $1 million to assist small businesses that have unmet recovery needs. The state’s full plan for allocating funds from HUD’s Community Development Block Grant Disaster Recovery plan, when approved, will total $8.6 million.
“Maryland is very pleased that HUD has approved our Action Plan to assist those households and businesses impacted by Superstorm Sandy which hit the City of Crisfield especially hard,” Governor O’Malley said. ”We have been working very closely with local officials and residents in Somerset to ensure that these critical funds will be expended quickly to benefit those who need it most.”
Nearly 1,000 homes in the county were damaged and many households were temporarily displaced last fall when Hurricane Sandy swept through the area on its rampage up the Mid-Atlantic coast.
DHCD rental assistance helped nearly 200 families move to temporary housing in the months immediately following the storm and the agency began working closely with local officials to determine how best to use funding through the Community Development Block Grant Disaster Recovery program. In general, those funds are intended for the restoration of housing as well as economic revitalization in disaster-impacted areas. The funds are to meet recovery needs that are not otherwise covered by other federal assistance, private insurance, or other sources.
Jane C. W. Vincent, a HUD regional director, said today’s approval allows the state to begin the long-term process of rebuilding damaged housing and restoring damaged public facilities and infrastructure.
To read DHCD’s disaster recovery plan, click here.
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