
2009 was a year of false starts in Commercial Real Estate. The sub-prime crash and falling housing market, caused trepidation in the Commercial Market. It always follows housings trends.
Now housing is trending up. Prices are rising and sales are happening. Is it organic? Or is it the promise of $8,000 in free money from the government? We’re not taking any chances. The first Time Home Buyer tax credit has been extended to April 2010. Any first time home buyer in contract by April 30, 2010 will receive an $8,000 tax credit.Â
Lest starter home owners feel shunned, they’re receiving a break too. Home owners pinned as “trading up” who have lived in their homes for 5 years will receive a $6,500 rebate.
Income caps apply to the credits, but home sales have risen. Anecdotally, it’s working. The statistics are yet to be charted.
Meanwhile, the media has warned of billions in Commercial Mortgage Loans coming due. In a time when vacancies are increasing and rental rates falling, this is bad news for investors on the brink of refinance.Â
Here is another summary of a recent legal case involving a fair housing issue. This case is a little different than the typical fair housing case because it involves the criminal interference with the right to fair housing instead of the usual civil violation. Although this case doesn’t provide much guidance about the “dos and don’ts” under the Fair Housing Act for real estate professionals, I thought it was nevertheless interesting and worth posting.
On Tuesday (October 13, 2009), a Louisiana man plead guilty to firing three shots from a shotgun at the home of three Hispanic men and, after they fled, entering the home and setting a fire that burned it to the ground.
Johnny D. Mathis plead guilty to three criminal counts, including (1) criminal interference with the right to fair housing; (2) use of fire to commit a felony; and (3) use of a firearm during a crime of violence. Each count carries a maximum penalty of ten years in prison, a $250,000 fine, or both. Furthermore, the ten year penalties for use of fire to commit a felony and use of a firearm during a crime of violence are mandatory, meaning that Mr. Mathis now faces a maximum sentence of 30 years and a mandatory minimum of 20 years in prison. Sentencing is scheduled for January 13, 2010.
Testimony presented at the plea hearing established that on June 15, 2008, Mr. Mathis fired three shots from a shotgun at the home of three Hispanic men who shared the residence in a rural area of western Louisiana. Mr. Mathis’ home was across the street from the victims’ house. After hearing two shots, the victims fled their house. Once outside, the victims watched as Mr. Mathis fired a third shot into the trees and then entered the house, left briefly, and then returned. Minutes later, the house was engulfed in flames as Mr. Mathis exited the house. Subsequent investigation determined that the fire started in the kitchen where the victims had seen Mr. Mathis. Mr. Mathis admitted that his crime was motivated by the victims’ race and national origin and was intended to interfere with their right to live in their home.