Milpitas council approves mixed-use condo development on Montague Expressway

After developers were told to go back to the drawing board earlier this year to improve the design and amenities of a proposed 216-unit condominium project with nearly 6,000 square feet of mixed-use retail for a parcel in southern Milpitas, city officials formally advanced the revised version of the development last week.

Milpitas City Council voted 4-0 Aug. 2, with Councilman Garry Barbadillo recusing himself, to approve 720 Montague. The project, located on a 2.35-acre site along Montague Expressway, South Milpitas Boulevard and Gladding Court, will be located near the planned Milpitas Bay Area Rapid Transit Station.

The project's proposed condos will include 15 junior one bedrooms units, 126 one bedroom units and 75 two bedroom units, which range in size from 690 square feet and 1,200 square feet. In addition, the project will feature two floors of below ground parking with 353 parking stalls, with 334 spots for residents and 19 for retail use. Additionally, the site will have 54 bicycle stalls and 17 short-term bike spots.

The project was previously reviewed by the Milpitas Planning Commission on April 13.

When asked by that panel about the intent of the retail space, Badru Valani, the property owner and developer, said he would like to include a cafe that provides breakfast, lunch and dinner, or something similar that can be available all day. Also at the April 13 meeting, Milpitas Unified Board of Education Vice President Bob Nunez said the school district supported the project.

Although well liked by planners, by the following month the city council took issue with 720 Montague's design.

On May 3, Mayor Jose Esteves told the developer the project lacked public amenities and added he was not "impressed" with its design. Ulitmately, the council voted 2-2, with Esteves and Vice Mayor Carmen Montano dissenting, to table the development for a future meeting. Barbadillo recused himself from the vote due to a conflict of interest.

But last week the city council offered a different reaction to the project as they expressed happiness with the changes made to its design as well as the amenities the city would get from this development. That included $60,000 to the city's general fund for community benefit; $70,000 to extend the city's recyclable water pipes; and $9 million in transit fees.

At the Aug. 2 meeting, the developer presented the changes that had been made to the design which included changing the material used for the facade of the four- to five-story building to wood composite panel, extending the balconies, adding architecture that defined the first-floor retail space and using more of the city's official tree -- the jacaranda -- on site.

At the same meeting, the council also approved an exemption to allow for a pool and spa to be built into the property as an amenity for the residents of the complex. The pools cannot be filled until the state lifts its drought restrictions. Other amenities include two interior courtyards, a connecting breezeway with seating options and an indoor Wi-Fi lounge and gym.

Resident Robert Marini took issue with additional housing units being built when residents are being asked to conserve water. The mayor disagreed.

"We have to balance growth with conservation. Not zero growth, I don't want to have to ask my kids to not have a kid, we have to accommodate growth, if you want to control housing development talk to the governor," Esteves said.


Source: The San Jose Mercury News, Aliyah Mohammed
http://www.mercurynews.com/milpitas/ci_30238503/milpitas-council-approves-mixed-use-condo-development-montague

What Is an HOA? Homeowners Associations—Explained

If you’re buying a condo, townhouse, or freestanding home in a neighborhood with shared common areas—such as a swimming pool, parking garage, or even just the security gates and sidewalks in front of each residence—odds are these areas are maintained by a homeowners association, or HOA.

So what is an HOA, and how will it affect your life?

HOAs help ensure that your community looks its best and functions smoothly, says David Reiss, research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School. For instance, if the pump in the community swimming pool stops working, someone has to take care of it before the water turns green and toxic, right? Rather than expect any one individual in the neighborhood to volunteer their time and money to fix the problem, HOAs are responsible for getting the job done. And the number of Americans living in HOAs is on the rise, growing from a mere 1% in 1970 to 1 in 4 today, according to the Foundation for Community Association Research. So, it’s wise to know exactly how they work.

How much are HOA fees?

To cover these maintenance expenses, HOAs collect fees (monthly or yearly) from all community members. For a typical single-family home, HOA fees will cost homeowners around the $200 to $300 per month, although they can be lower or much higher depending on the size of your unit and the services provided. The larger the home, the higher the HOA fee—which makes sense, because the family of four in a three-bedroom condo is probably going to be using the common facilities more than a single woman living in a studio.

In addition, most HOAs charge their members a little more than monthly expenses require, so that they can build up a reserve to pay for emergencies and big-ticket items like repairing the roof and water heaters, or acquiring new carpeting, paint, and lights for the hallways.

If the HOA doesn’t have enough money in reserve to cover necessary expenses, it can issue a special “assessment,” or an extra fee, in addition to your monthly dues, so that the repairs can be made. For example, if the elevator in your condo building goes out and it’s going to cost $15,000 to replace it—but the HOA reserve account holds only $12,000—you and the rest of the residents are going to have to pony up at least an additional $3,000, divided among you, to make up the difference.

And yes, you would still have to contribute your share even if you live on the first floor.

HOA rules: What to expect

All HOAs have boards, made up of homeowners in the complex who are typically elected by all homeowners. These board members will set up regular meetings where owners can gather and discuss major decisions and issues with their community. For major expenditures, all members of the HOA usually vote.

In addition to maintaining the common areas, HOAs are also responsible for seeing that its community members follow certain rules. Homeowners receive a copy of these rules, knowns as “covenants, conditions, and restrictions” (CC&Rs), when they move in, and they’re required to sign a contract saying that they’ll abide by them.

CC&Rs can cover everything from your type of mailbox to the size and breed of your dog. Some HOAs require you to purchase extra homeowners insurance if you own a pit bull, for example; others prohibit certain breeds entirely. An HOA may even regulate what color you paint your house, and what kind of curtains you can hang if your unit faces the street. Its goal is not to meddle—it’s merely to maintain a neighborhood aesthetic. However, if you don’t like being told what to do with your home, an HOA may not be for you.

What happens if you violate HOA rules?

That varies from place to place, but if you break the rules—or fall behind in paying your HOA dues—the consequences can be severe. You could be evicted, or worse. Some HOAs have the right to foreclose on your property, says Bob Tankel, a Florida attorney specializing in HOA law. So make sure you read your CC&Rs carefully so you know what to expect, and know the pros and cons of HOA living before you buy in.

Source: Realtor.com, Lisa Johnson Mandell
http://www.realtor.com/advice/what-is-an-hoa/?iid=rdc_news_hp_carousel_theLatest

Homeowner Evicted for Not Paying HOA Dues: Can This Happen to You?

Who knew? Even if you pay your mortgage on time every month, your home can still be foreclosed on and sold from under your feet. That, at least, is what Triss McQuiston from Tomball, TX, learned recently when she was notified that she’d have to vacate her place. Why? It turns out she was evicted for not paying her HOA dues.

According to ABC13, McQuiston admits that she was guilty of procrastinating on paying her HOA fees to the Canyon Gate at Northpointe Owners Association in 2014 and 2015. Because she was opening a new business, her HOA bills slipped through the cracks, for a grand total of $1,800 in unpaid dues.

An attorney for the HOA claims that since March 2014, they’d sent McQuiston 12 notices by first-class certified mail to collect these assessments, warning her what would happen if she didn’t. When they received no response, they proceeded with the foreclosure, and sold the home at auction back in September.

Yet McQuiston argues that she’d received no warnings, and was made aware of her dire straits only when she received an eviction notice on her doorstep on May 20. She has since hired an attorney to help fight the case and remain in her home.

“I would never have thought in my wildest dreams that an HOA … would go to these lengths and they’d have this much power,” McQuiston told ABC13.

If this story has you viewing HOAs in a harsh (and terrifying) new light, we don’t blame you. And while the laws vary by state, it turns out that in most cases, HOAs really do have the power to foreclose on your home for unpaid dues, as do condo owners associations.

“Contrary to common perceptions, even if a person is current on a mortgage, the HOA or COA may foreclose,” says Bob Tankel, a Florida attorney specializing in HOA law. “What’s the moral of the story? Pay your assessments. These are not huge amounts. People apparently think that just because assessments are small there’s nothing bad that can happen. But that’s not true.”

To know specifically how your HOA or COA handles late payments, homeowners should “check the Declaration of Covenants, Conditions & Restrictions (CC&Rs),” says David Reiss, research director at the Center for Urban Business Entrepreneurship at Brooklyn Law School. You should check not only what constitutes a late payment, but also how you’ll be penalized; additional fees could include late charges, fines, interest, as well as attorneys’ fees.

It’s also smart to check what rights and recourse you have in your state if you end up unable to pay these assessments. “Some states have enacted some procedural protections for homeowners,” says Reiss. “It’s worth figuring those out if you are not able to pay off your HOA right away.”

The bright side? Given HOA fees are fairly small compared with a mortgage, they should be fairly easy to manage with some belt-tightening. In fact, Tankel suggests, “Move payment of assessments to the top of the list of things to pay. If you can’t, you can cancel your high-speed internet or cable TV or stop eating out. None of those services are worth keeping if you can’t pay assessments.”

Take it from McQuiston, who could still stand to lose her home for a mere $1,800. She admits, “I had the money the whole time. That’s the sad part about it. I would have gladly taken care of it.”

Source: Realtor.com, Judy Dutton
http://www.realtor.com/news/trends/evicted-for-not-paying-hoa-dues/?iid=rdc_news_hp_carousel_theLatest

HOA Fees Now May Affect Credit Scores

A major credit reporting agency says it will soon take into account homeowner association fees. Home owners who are late on payments may soon see the effect on their credit score.

Sperlonga, a credit data aggregator, is the first company to provide HOA payment and account status data to Equifax, which is one of the three major credit-reporting agencies. A full rollout of the new HOA reporting to Equifax will go live in October.

Homeowner associations and property management companies collect about $70 billion in HOA payments yearly among at least 333,000 community associations, according to the Community Association Institute.

“Until now, HOA payments have gone largely unreported to the national credit-reporting agencies,” says Matt Martin, chairman and founder of Sperlonga. “Our service will help elevate association payments to the same level of importance as the consumer’s other financial obligations like residential mortgages, auto loans, and credit card payments. Property owners that pay HOA fees on time should begin to see the similar impact [on] their credit reports as they would with other payment obligations traditionally found in a credit report.”

For property owners who are late or delinquent on their HOA payments, they will likely see a negative effect on their credit score, just as if they had missed a mortgage payment.

“Introducing new sources of data beyond what has traditionally been found on credit files can provide additional insight into a consumer’s financial behavior and help deliver expanded credit access,” says Mike Gardner, senior vice president at Equifax.

Source: RealtorMag Online > Sperlonga
http://realtormag.realtor.org/daily-news/2016/05/09/hoa-fees-now-may-affect-credit-scores?om_rid=AAFmZk&om_mid=_BXMMkfB9NaK2Yp&om_ntype=RMODaily

Going Solo: 5 Steps to Buying a Home on Your Own

The home-buying experience often portrayed in advertising generally seems to focus on couples and families. But these days, only 40 percent of first-time home buyers are married, down from 52 percent in the late ’80s, according to Zillow research.

The process of purchasing a home for a sole owner may be fairly similar to that of anyone else, but there are a few slight differences in how a single buyer might approach the home-buying experience.

Here are five ways to make your solo house hunt a success.

Find your agent

Don’t choose the first real estate agent you find in an online search. Try posting a query on social media to get insights from your friends and family, and search for agents in your area, taking plenty of time to read reviews. Look for positive agent reviews that may comment on purchasing alone versus as a couple.

Once you find a few agent options, meet with each of them. You’ll want to ask plenty of questions — don’t let them do all the talking.

Read up on your resources

So you’ve met with multiple agents and found the one for you. Great! But having a wonderful real estate agent doesn’t mean you don’t need to read up on your own.

Don’t rely on your agent to explain every detail of the process. They probably will, and should, but it’s your job to be an informed buyer. Head to the library or check out online resources to find out your rights as a buyer and learn about home-buying programs.

When you’re deciding how much home you can afford, consider all recurring expenses that come with owning a home. Think beyond mortgage payments and closing costs — include expenses such as home maintenance and repairs.

And if you’re nervous about being turned down for a loan because you’re buying on your own, try not to be. While qualifying for a loan on one income may mean you purchase a smaller home, it doesn’t mean you can’t buy. In fact, banks are not allowed to discriminate against potential home buyers based on marital status.

Singles buying a home on one income should consider an FHA loan, as borrowers with good credit can qualify for a small down payment.

Choose the right home type for you

Are you looking for something to grow into? Or do you want a small starter home you can rent out in the future? Whatever your current and future home needs are, know that you have options regarding the type of home you purchase.

Buying a condo or townhouse may leave you with a lower mortgage, but don’t forget about possible homeowners association dues and storage fees. And while a smaller place means less to maintain for one person, regular maintenance is still a homeowner must.

House hunt with confidence

Pursuing homeownership on your own doesn’t mean you have to decide everything solo. Bring one or two of your close friends who have recently purchased a home and who you know can offer honest feedback.

If you plan to move to the suburbs to get more house for your buck, consider if you’d really be happy living away from your favorite downtown spots. Try commuting to and from your potential home from work, your friends’ homes, and your favorite shops and restaurants. If you discover it’s a tad too far for comfort, narrow your home search.

Once you find a few neighborhoods you love, look at the crime data. There are plenty of online tools that can help you check the safety of a neighborhood. And as you scope out houses and communities, take note of enclosed backyards and security gates. Because there may not be someone home during hours you’re typically away, you’ll want to be mindful of security precautions during your house hunt.

Make an informed offer

If you’re buying as a singleton, you may not have someone by your side to help you figure out what to offer or how to negotiate. This is where finding the best real estate agent for you will serve you well. Talk to your agent about how your offer may stack up against recent sales in the area, as well as the possible concessions you can get from the sellers.

Whether you’ve just started considering purchasing your first home or you’re newly single and buying on your own for the first time, these five steps will ensure you’re a smart and savvy solo buyer, and help you land a home of your own.

Source: Zillow Blog, Sarah Pike
http://www.zillow.com/blog/buying-a-home-on-your-own-192824/

HOAs Behaving Badly—and How Homeowners Can Fight Back

I've had a few bad experiences with HOAs that I'll write about in a future blog post perhaps. Below is a great article from Realtor.com about some crappy HOAs and the shenanigans the play.



If you own your home, you may be king or queen of your domain. However, if it’s part of a planned community or complex, you’ll probably need to kowtow to a homeowners association. And you may wind up feeling a bit more like a serf.

The HOA, which enforces community rules and maintains common areas, can be quite useful—but sometimes it can come across more like Big Brother. Read about HOAs that put neighborliness aside all in the name of rules, and how you can cope if yours does the same.

Changing its tune on a change of paint color

The color blue is supposed to be calming, but in October 2015 it got some neighbors seeing red. According to news site KHOU.com, newlyweds Keely and Peter Dubrova had decided to paint their home in Atascocita, TX, a vivid shade of teal—with permission from their HOA. A week and a half later, the same board demanded the Dubrovas repaint after an online photo of their so-called Smurf house sparked an uproar, and even threats to “to hang them.”

Expert advice: “The HOA cannot legally revoke approval after the homeowners have relied on the approval and spent money on it,” says Mike Hunter, an attorney with Horack Talley in Charlotte, NC, who focuses on community and condominium law. So, the Dubrovas should stand their ground; but if they’re open to repainting, the HOA should foot the bill.

Not making a concession for a disabled kid

Due to a disability that meant their daughter needed to use the bathroom frequently, Gary and Renee Kuhn of Keizer, OR, needed a fully-appointed RV to drive her to and from doctor appointments. Yet in January, KATU News reported that the McNary Estates Development’s HOA wouldn’t allow the Kuhns to park said RV in their own driveway, citing bylaws that ban the vehicles. Instead, the HOA suggested the parents park the RV in a lot a few miles away because, hey, why make things easier for parents of a disabled child?

Expert advice: “The federal Fair Housing Act guidelines require HOAs to make ‘reasonable accommodations’ to persons with disabilities to allow them full use of their home,” says Hunter. “So in this case, law in this area leans heavily in favor of the homeowner.” It’s no wonder, then, that the Kuhns are now suing their HOA.

Cooking the books, casino-style

HOA managers handle tons of cash without much oversight.  A cynic could ask: How hard could it be for some of those managers to skim a bit off the top for themselves? Well, that’s what Susan Marie Lambert decided to do as an officer of the Woodlake Homeowner Association in San Mateo, CA, bilking the group of almost $3 million over six years.

According to the Daily Journal, Lambert and a contractor billed phony invoices, then the two split the cash for work that was never performed. Homeowners finally noticed something was off in January when Lambert made an ATM withdrawal at a casino using an HOA card. Brilliant!

Expert advice: Hunter advises HOA members to set up security measures to protect HOA funds.

“Keep track of who has signature authority on accounts,” says Hunter. “Require two signatures on checks, including at least one board member. Avoid credit cards in the HOA’s name, and require a fidelity bond covering any person or company that’s handling the HOA’s finances.”

Retroactively banning roommates

In December, the Idaho-based Buffalo Junction HOA kicked out condo renter Collin Wheeler and his roommate when the organization charged that they did not meet the requirements of a “family.” The HOA board wrote a letter stating that the term “is defined to include parents (or single parent) and children and other dependents.” But according to news outlet TVN, this rule didn’t exist when Wheeler moved in—it was added, seemingly, to boot young renters like him.

Expert advice: In this case, Hunter questions whether the HOA can legally impose a new rule and make it retroactive. In any case, Wheeler has found a new place—one with no HOA, he hopes.

Charging a fee to keep the nearby golf course afloat

You buy a home next to a golf course managed by a separate company. But if that golf course threatens to close due to low membership, who pays? In Rancho Mirage, CA, the Morningside HOA thinks all the residents who live along the course need to start yelling, “fore!” According to the Desert Sun, the HOA added a mandatory club membership fee at $250 a month on top of the $1,050 HOA dues.

Expert advice: These residents can most likely lay down the clubs and refuse to pay up.

“The homeowners should examine their governing documents for increasing assessments and consult with an attorney,” Hunter advises.

Great place for the Grinch

Residents of Mesa, AZ, didn’t have a very merry Christmas in 2015, due to a letter sent from the HOA instructing them to take down holiday decorations outside their homes.

Expert advice: Sure it sounds mean-spirited, but in this case HOAs might determine that they have little choice in the matter, Hunter says.

“If the board allowed Christmas wreaths, they would stand accused of discrimination if they later denied other decorations like a pentagram, distasteful pictures, or political signs,” he points out.

To avoid this “slippery slope,” Hunter allows that like-minded owners could “propose an amendment to the condo’s governing documents that would allow holiday decorations for a finite number of days.”

Source: realtor.com, Margaret Heidenry
http://www.realtor.com/advice/buy/hoas-behaving-badly/?iid=rdc_news_hp_carousel_theLatest

Q&A Manager of homeowner association treats renters unfairly

Question: The manager of our homeowner association does not like renters and goes out of her way to force them to move. She fines and penalizes renters for things they don't even know are violations. She tells renters asking for clarification on bogus charges and fines: "You did it. Get out of here or I'll call security."

Owners who ask management to correct invoices containing alleged renter-violations are told: "Tell your renters to move." Titleholders don't want problems with management, so they go back to their tenants and tell them: "Just pay the fines or they'll be evicted."

Renters don't want to make waves or be evicted, so they pay bogus fines. Management tells renters to go to the board to resolve their problems; the board says "go to management and pay the bill." Now what?

Answer: Ignoring renters' problems or complaints is a monumental mistake. Once a renter brings problems to the attention of management or the board, both are on notice, and the statute of limitations time clock for resolution is ticking away. If the association fails to implement an acceptable remedy, these time limitations could force renters to take legal action.

Aside from being unprofessional, threatening renters with calls to security and avoiding questions cast a cloud over association operations. Tenants who are mistreated, discriminated against or simply ignored may attempt to break their lease, sue their landlord or both.

A manager, management company or board director should not interfere with a landlord's rental business or income generated by rental property by imposing illicit fines or failing to make corrections on titleholder accounts. Such actions may result in the association and all those responsible for such acts being sued for interference with the titleholder's business.

If the association allows rentals, then management and the board need to treat renters the same as any other resident. Any type of discriminatory behavior by the board or one of its agents creates an unnecessary risk of liability against the association. Knowingly creating such liability is a breach of the board's duty of care to the association and its owners.

Titleholders, not their tenants, are responsible for violations and resulting fines. It is the titleholder's responsibility to resolve disputes regarding a tenant's violation; the time involved is part of the cost of doing business as a landlord. The board and the management owe these titleholders a duty of good faith and fair dealing.

Directors must act as responsible fiduciaries for owner assets and any lawful business owner conduct. It is not acceptable for management or directors to treat a rented property differently from an owner-occupied property. It is also not appropriate for a titleholder-landlord to require tenants to assume landlord obligations.

Management and directors must avoid creating liability and being the subject of litigation. They must act reasonably and not single out titleholder-landlords for disparate treatment.

Titleholders who are wronged may seek a claim against the association for damages, including lost profits if a tenant breaks a lease or moves out because of wrongful actions taken by the association.

Director duties include active supervision of managers, holding them accountable for their actions. Failure to do so may result in joint and several liability against all directors.

Source: La Times, Donie Vanizian
http://www.latimes.com/business/technology/la-fi-associations-20151101-story.html

A Mega Condo Project in Milpitas Set to Rise

Almost everywhere I go here in the Silicon Valley I see new construction going up, and Milpitas is no different. It looks like some developers have gotten the approval for a luxury, mixed use high rise set to break ground next year sometime for completion in 2018. This is another example of the overall economic prospect for this area when you have major investors willing to sink money into a housing project here. They wouldn't do so if the economic forecast here looked pretty bleak.

A Mega Condo Project in Milpitas Set to Rise


BDK Capital Group LLC plans to break ground next year on an approximately $300 million mixed-use project featuring 450 luxury condominiums in Milpitas.

The Landmark Tower is outlined as two 18-story buildings featuring for-sale condos above roughly 34,000 square feet of ground-floor commercial space at 600 Barber Lane, the site of a former Chevrolet dealership.

Arcadia, Calif.-based real estate investment and development group Singpoli Capital Corp. and joint venture partner American BD, which comprise BDK, purchased the entitled three-acre site for $21 million in November from Pham Co. LLC, said William Chu, CFO at Singpoli.
The site was entitled for an up to 760,000-square-foot mixed-use project in 2008, and Singpoli is looking to gain city approval to “fine-tune” the design by bumping up the number of condo units from 375 to 450 and reducing the commercial space, Chu said. The property also will include 1,240 parking spaces.

“It’s a high-quality design,” said Edesa Bitbadal, the city’s economic development director. “It speaks to the direction the City of Milpitas is going,” adding that more millennials and technology employees are moving into the city and seeking housing with “better services and amenities.” The city expects full-service restaurants will occupy the commercial space, she said.

Irvine, Calif.-based architecture firm MVE+Partners is designing the project, which will include eight four-bedroom penthouse units along with a rooftop deck, lounges, fitness center, pool and community room. The project design gives it “an exclusivity and [feel of the] New York lifestyle in Silicon Valley,” Bitbadal said.

Landmark Tower, slated to open in 2018, will be near a local bus route and about one mile from a light-rail station. Also nearby is Cisco Systems, Inc., Milpitas Square shopping mall—featuring many Asian eateries—Asian-American grocery 99 Ranch Market, Wal-Mart, the planned Pacific Mall, and the new Levi’s Stadium, home to the San Francisco 49ers. It also will be near the BART station, scheduled to debut in 2018.

The project will be Singpoli’s first development outside of Southern California. Milpitas fits into its strategy of investing in growing markets, Chu said. He also noted that the company liked the city’s demographics, with a median age of 32 years old and median family income of $103,000, based on 2013 statistics.

The Silicon Valley city, also home to companies such as electronics manufacturer Flextronics and manufacturing firm KLA-Tencor Corp, is easily accessible to Interstates 880 and 680 and Highway 237

Milpitas is garnering much interest from developers and has 7,000 residential units under consideration or in the works, Bitbadal said.

“The city has done its share in developing housing for residents and providing it regionally—we have welcomed it,” Bitbadal said.

In Southern California, Singpoli recently renovated a historic Pasadena hotel into the 130-key upscale boutique DusitD2 Hotel Constance and is now co-developing a 159-room Marriott Courtyard and 129-rom Marriott Residence Inn in Marina Del Rey. Singpoli began as a construction company in Hong Kong in 1977.



Source: Nancy Amdur, TheRegistry
http://news.theregistrysf.com/a-mega-condo-project-in-milpitas-set-to-rise/

Flashback Friday - A Happy First Time Home Buyer

Here is a picture from this past January of me and one of my first time home buyer clients, Michelle, who was in the middle of her escrow sign off at Old Republic Title when I stopped by to say hello and see how things were going. I am happy to say she is a proud new owner of a great condo unit in the east bay. It was a real pleasure working with you Michelle!