Business Flashcards
What is real estate?
Land, improved or unimproved and anything permanently attached to the land which is either natural or man made
Describe what a Real Estate Developer does
They can acquire, renovate, re-lease existing buildings, purchase raw land or sell improved parcels to others
What is Community Development and how does it relate to Real Estate Development?
The redevelopment of blighted houses and restoration of neighborhoods, essentially the development of real estate for multiple residents
What is the Real Estate Cycle, and what are the characteristics of its different phases?
A cycle that represents the cyclical ups and downs of the real estate market.
Consists of recovery, expansion, hypersupply and recession.
Six main stages of the development process
Feasibility and acquisition, design, financing, construction, marketing and leasing, operations and management
What role does housing play in our lives?
Serves as the primary setting for family and domestic life
A place of refuge, relaxation and privacy from work and school life
Serves as a marker of status and expression of style
Valued for access to school, parks, transportation, shopping. neighborhood
Major asset for homeowners
How does the United States Policy around housing impact people’s lives?
Tax reductions
Support in the construction and operation of specific housing developments
Help renters pay for privately owned housing
Provide states and localities with funds to develop housing programs
Why was the housing act of 1934 created and what did it do?
Created to insure single family loans during the Great Depression, and later multi family housing
Created the FHA, now part of HUD
FHA acts as a mortgage insurance company for lower-middle and middle class housing
Why was the housing act of 1937 created and what did it do?
Job creation and housing
Created the US housing authority (now part of HUD) under the interior department
Worked through local PHAs due to sixth circuit declaring direct housing ownership by government unconstitutional
What did the Taft Ellender Wagner Act of 1949 do?
Created foundations for urban renewal
Encouraged and subsidized renewal
Slum renewal
Created foundations for building of public housing and relocation of displaced
What was bad about the Taft Ellender Wagner act?
Provided overly simplified solutions to complex problems
What was the Brooke Amendment of 1969?
Limited rent to 25% (later 30%) of a tenant’s income, and gave priority to lower income applicants
What were some effects of the Brooke Amendment of 1969?
Could have created disincentives to work and for families to stay together since additional income is essentially taxed
PHAs needed housing subsidies because they could no longer charge enough rent to cover costs
Congress provided funds but not enough, causing PHAs to cut costs
How did section 8 affect housing projects?
HUD made up the difference between fair market rent and the amount tenants paid (25% –> 30%)
Developers used guaranteed rents to leverage financing
Became popular for for profit developers
How did section 8 affect tenants?
Tenants received a certificate private market
Rent was often only paid for less affluent neighborhoods
Housing discrimination, concentrating use in some neighborhoods
