At last evening's continuing education course, Storm Front, I discussed Bill Number S5776-2013, which relates to permitted use of funds of an industrial development agency.

This bill, if enacted, would amend the law "to allow for the approval of Industrial Development Agency projects for property specifically used in making retail sales in areas directly impacted negatively by a natural disaster".

So, I highly suggest that local real estate agents support this Bill as it will benefit your community. At the least, take a read and understand what an IDA is and how it is applicable to your profession.

Also, at the course, I promised to provide a link to the Building Science & Rebuilding branch of FEMA's Building Code Resource, which can be located here. This is a valuable resource when rebuilding in the wake of a storm to enable a more resilient structure for the next one - as I said, we do live on an Island.

Check out Page 12 of The New York Real Estate Journal. Latest Article published by Andrew Lieb, "Brokerage: End of corporate titles ushers in professionalism". In this article, Andrew discusses the latest update in advertising regulations and the practice of Real Estate Professionals in NY.

Attention College Graduates! Take a Year Off Before Law School

Join a thriving law firm that leads our profession through advocacy and advice supported by cutting-edge technology and know-how.  This exciting opportunity is for a 2013 college graduate looking for valuable office and legal experience before heading to law school.  You will be exposed to real estate transactions and litigation, learn the court system and assist in cases from real estate brokerage and mortgage foreclosure litigation through matrimonial, collections and personal injury. The foundation and knowledge obtained in this position will not only get you ready for law school, but will give you an essential competitive edge before starting your legal career. 

Ideal qualities: Self-driven, organized, resourceful, assertive and dynamic. Must strive to be the best.

Pursuant to Supplemental Directive 13-04 of this month, the Making Home Affordable Program, including HAFA (short sales) and HAMP (mortgage mods), is extended through the end of 2015.

Additionally, Supplemental Directive 13-04 simplifies the income documentation requirements under HAMP, by modifications to the rules concerning Form 4506-T; Benefit Income; Verification of Monthly Gross Expenses; Wage or Salary Income; Self Employment Income; Rental Income; and Alimony, Separation Maintenance and Child Support.

To illustrate, now the requirement that a servicer must verify monthly gross expenses is removed and a servicer may just rely on a borrowers stated expenses. With respect to the other categories, the Supplemental Directive enables the servicer to "verify such income in accordance with the [...] documentation the servicer relies on when modifying loans held in its own portfolio..."

The extension is certainly welcomed as the foreclosure crisis is far from over. Also, these new rules are smart as they simplify an unnecessarily complex process, which has resulted in both lenders and borrowers being frozen in time when seeking to follow the rules. Instead, its expected that more decisions will be made whether to modify a loan based upon these changes.

HUD just issued its study of incidence and forms of discrimination experienced by black, Hispanic, and Asian renters and homebuyers.

The study finds that "minority homeseekers are told about and shown fewer homes and apartments than whites", as a result of more than 8,000 tests conducted in 28 metropolitan areas.

Clearly discrimination still exists in housing. However, the study takes pains to explain that differing circumstances of classes of people in housing does not equal discrimination. Instead, the discrimination is only present when it causes the resulting disability in housing.

Real estate agents should read the Executive Summary, understand discrimination and be mindful to weed out such practices as we always strive to bring professionalism to our field.

We are often questioned about our advice at our Mortgage Mania class that its okay to cancel old credit cards. People say - Lieb you are wrong.

Well here is a Business Insider article by John Ulzheimer of SmartCredit.com that seems to agree with us. Have a read and decide for yourselves.

On November 8, 2012, we wrote a blog called Airbnb is Brilliant - NYC Housing. Therein, we said that "[a]   major barrier to their success are local laws that prohibit short term rentals in many municipalities across the Country". We also referenced NYC's rental law and said that maybe Airbnb's helping with housing in the wake of the hurricane would generate enough good will to overturn the City's minimum rental law.

It didn't.

On 5/9/13, a NYC resident was found liable for a $2,400 Civil Penalty for violating AC 28-118.3.2 as a result of renting his condominium unit (actually the rental at issue was offered by the tenant of the unit, but that is irrelevant for this discussion) to two Russian women from the 9th to the 14th of September in 2012.

NYC's minimum rental period law is designed to prevent transient guests, which is a topic that have discussed previously on quite a few occasions such as in February of 2010 and May of 2012. The thrust of the topic is that there are safety issues in permitting unregulated hotels to exist for consumers and that there are further issues for other unit owners in allowing unscreened strangers to have access in and out of their condominium and cooperative buildings. There are also many arguments that transient guests in neighborhoods greatly reduce property values.

Its important to note that the decision distinguished the violated act from simply having "house guests or lawful boarders, roomers or lodgers" who stay for less than 30 days. The decision sets forth that house guests cannot be strangers who pay for occupancy and with respect to the other terms it looks to the definition of a common household in the Code as "A common household is deemed to exist if every member of the family has access to all parts of the dwelling unit. Lack of access to all parts of the dwelling unit establishes a rebuttable presumption that no common household exists".

So, NYC residents stop using Airbnb, it advertises your illegal rentals and gives the government great evidence if they wish to prosecute. To read the decision for yourselves, click here.

In early May, a newspaper article was passed around our office which churned up more than a few laughs from the staff. New York City based Rapid Realty offers its Real Estate Agents a 15% raise in their commission split if they get a tattoo of the broker's logo. Check out the article here. Turns out, their decision to get a tattoo of Rapid Realty's logo could result in a potential License Law violation.

Lieb at Law and Lieb School have gotten their hands on the new Real Estate License Law Advertising Regulations which will take effect on January 2, 2014. Anyone with a tattoo of their broker's logo may want to pay particular attention to sections (a)(1) and (c)(1) of these new regulations.

Section (a)(1) defines an advertisement as "promotion and solicitation related to licensed real estate activity, including but not limited to, advertising via mail, telephone, website, e-mail, electronic bulletin boards, business cards, signs, billboards, and flyers."

Section (c)(1) states that any advertisement "shall indicate that the advertiser is a real estate broker or provide the name of the real estate broker or real estate brokerage and either: (i) the full address of the real estate broker or real estate brokerage or, (ii) the telephone number of the real estate broker or brokerage."

So, agents with a tattoo of your broker's logo - that tattoo just might make you a walking advertisement! Make sure your tattoo is in compliance with your license law. You have until January 2, 2014 to schedule another session at your local tattoo parlor to add your broker's name and address or telephone number to go alongside your broker's logo!

The sign off line of that May 2nd article could end up being more applicable than the author probably imagined.

"Perhaps getting permanently branded with a company logo gives a whole new meaning to the term 'walking billboard.'"

REAL LIFE

Tomorrow & Saturday 5/24 & 5/25 at 5:30pm WPPB Peconic Public Broadcasting 88.3- Check out the season launch of Real Life hosted by John Christopher from Brown Harris Stevens. John will be interviewing Andrew Lieb concerning a multitude of issues facing Hamptonites in the real estate market from commercial valuation to simply the new regulations requiring a bank to verify ability to repay a loan.

We have some last minute cancellations for the free 3 credit CE course Divorce Deals in Riverhead tomorrow on 5/22/13. We also have new seats available in the course Property Management 101: A Good Piece of Dirt in Hauppauge on 6/6/13.

Visit www.liebschool.com to learn more about our free continuing education courses for licensed Real Estate Salespersons and Brokers in New York.