About Phoenix's Coronado

Do Coffee and Alcohol mix at Urban Beans?

Coronado resident, Virginia Senior, a partner and Chief Bean, at Urban Beans, a 7th Street coffee bar, spoke with me regarding Urban Beans' application for a Series 12 liquor license. My concern, and that of other Coronado residents, is that Coronado Neighborhood is saturated with alcohol - no pun intended - along 16th Street. Ms. Senior explained the differences in liquor licenses; a Series 6 license costs $14,000 to !5,000 and is paid upfront and then the application for use is sought. A Series 12 license is site specific to the owners and an annual renewal fee is charged. The rule is 60% of revenue is from alcohol and 40% from food; which prohibits a bar from obtaining this type of license. The owners of the applying business must pass a credit and background check, as well.

Urban Beans is located at 3508 N. 7th Street and occupies the space which Emmerlings, a furniture warehouse, formerly occupied. Senior and her business partner purchased the building with the intention of opening a coffee bar/cafe in the front space. Urban Beans opened in late 2009 and aspires to be, and is, a neighborhood/walk to establishment. The liquor license would allow Urban Beans to attract a later night/dessert clientele looking for a neighborhood experience. The intention is to serve fine wines and craft beers; no hard alcohol. Ms. Senior has spoken with Longview Neighborhood, the adjacent neighborhood, regarding the liquor license and has assured the residents that parking will not hamper Longview residents' ability to enjoy their neighborhood.

Urban Beans provides a quiet, friendly place to enjoy a really good cup of coffee and great pastries; also quiche in made in house and looked wonderful. I have brought clients to Urban Beans to discuss purchasing or selling a home and we've never been hassled by the staff. After discussing the Series 12 license with Ms. Senior, I support the application for a Series 12 license. I believe the liquor license will allow Urban Beans to prosper and become an even greater asset to 7th Street and the adjoining neighborhoods.

TARP is Failing, according to Neil Barofsky

Neil Barofsky, the Special Inspector General for the TARP program, released his report to Congress this week. In the report, Mr. Barofsky says, "HAMP (Home Affordable Modification Program) continues to fall dramatically short of any meaningful standard of success".

HAMP is funded with TARP money and was designed by the Treasury Department to assist homeowners to modify their home loans and to avoid foreclosure. HAMP is on track to assist 700,000 to 800,000 homeowners, a far cry from the 3 to 4 million homeowners it was designed to assist.

Barofsky says that the program is designed poorly but more importantly, the servicers are not timely in their responses. This comes as no surprise to anyone in our business. I consistently hear: " it took my servicer months to respond and all they keep asking for is more documentation." Apparently, the Treasury Department has not been putting pressure on the servicers, because Treasury was concerned that the servicers would back out of the program.

It's my opinion that Treasury needs to get tough with the servicers. Many of these banks received TARP funds and, thus far, many homeowners do not feel they have been served by these banks. As real estate practitioners, our feet are held to the fire by our clients, and I feel it's time for lenders to feel the same 'heat'. HAMP is not a bad program, in my opinion. It simply has not been implemented by the servicers, and if they do grant a modification, it is with feet dragging and so many conditions. Homeowners are very weary of this attitude.

Let me know how you feel HAMP is doing. Is it working well in your area?

FHA Suspends the Anti-Flipping Rule for One Year

In 2003, HUD issued a ruling that would not allow FHA to insure a loan on a property owned by the seller for less than 90 days. In 2010, HUD suspended this anti-flipping rule to allow investors to purchase these homes and to sell them to FHA buyers.

There was a great deal of speculation as to whether HUD would continue their suspension of the anti-flipping rule or allow it to lapse. On January 21, 2011, HUD made it official; the anti-flipping suspension would continue for another year.

Not every transaction qualifies for this exception. The transaction between seller (investor) and buyer must be arms' length. Also, if the sales price is 20% over the seller's purchase price, there are more conditions. Many transactions were in limbo waiting for HUD to announce whether to extend the suspension or allow it to lapse.

What does it mean for the Phoenix market? Or, the Coronado market? Simply, that investors may continue to purchase REOs at near record lows, refurbish or renovate them, and sell them to FHA buyers. This is good news for our market, which is struggling under the burden of REOs.

Rock N Roll Marathon in Historic Coronado

On Sunday morning, I walked down to Coronado Park to take some pictures of the runners in the half marathon. The route of the half marathon brought runners through Coronado and around Coronado Park, which is half a block from my house. I've always watched the runners from my front porch, but this year I wanted to experience the marathon up close.

I met one of my neighbors and clients at the barricades, and she was cheering for a friend of hers. Another neighbor came up with a sign to cheer on her daughter, who was also running the half marathon. It's my understanding that 6,000 runners participated in the full Marathon, all 26 odd miles, and over 20,000 runners participated in the half marathon. That's an extraordinary number of people dedicated to running for whatever reason. I read an article this morning that one of the runners runs for her brother who has muscular dystrophy.

What excites me is the passion these people have for running and for pushing themselves beyond their boundaries. Next year, I will not sit on my porch, but again come down and cheer on these dedicated people.

On Sunday, January 16th, at 6:30 am, the racers will be lining up at the Wesley Bolin Plaza in downtown Phoenix for the start of the annual Rock n' Roll Marathon. The course is both a marathon, 26.2 miles, and a half marathon, 13.1 miles through Phoenix, Scottsdale, and Tempe, ending at ASU's Sun Devil Stadium.

The Half Marathon runners will wind their way through Coronado Neighborhood on 12th Street, Palm Lane, 13th Street and McDowell Road from 7:30 am to 11:30 am. Last year, I could see the runners from my front porch, since I live 1/2 block from the Coronado Park on 13th Street and Palm Lane. it was such a joy to watch these folks running in our neighborhood and listening to the bands which play during the race.

All of the roads listed above and others in the area will be closed to vehicles during the race time. For more information, you can go to: www/competitor.com/community, for closures, Metro Light Rail schedule and other information.

This is a fun event for the City and for our Neighborhood.