Proposed NC Rule Would Require More Flood History Disclosure on Homes for Sale

Proposed NC Rule Would Require More Flood History Disclosure on Homes for Sale
New You can now listen to Insurance Journal articles!North Carolina home buyers may soon have access to more information about a property’s flooding history, a rule that could potentially help insurance agents sell more flood insurance and other types of coverage.

The state’s Real Estate Commission last week voted unanimously to accept a petition from the Natural Resources Defense Council and other advocacy groups, and to move ahead with a rulemaking process. A hearing on the proposed disclosure rule is planned for April 20, and the final regulation could take effect by July 1, said Melissa Vuotto, rulemaking coordinator for the commission.

North Carolina, unlike most other states, historically has not required full disclosure of a home’s flood history to prospective buyers. Environmental and consumer groups and have long argued that the current rule does not give buyers enough information, adding to the unknown risks and prompting many buyers to forego flood insurance.

“Providing homebuyers with information about the potential flood risk that comes with a home will enable buyers to take appropriate steps to mitigate damages, including by purchasing flood insurance,” the petition to the commission reads.

The proposed rule would add several questions to the real estate disclosure form, requiring information from sellers, including: whether the home has ever sustained flooding or flood damage, and how often; if it has an elevation certificate; and if the property carries flood insurance and what the annual premium is. The form also would ask if the home has filed a claim through the National Flood Insurance Program or has received federal aid for flood repairs.

North Carolina regulations now require homeowners to disclose only if the home is in a designated flood hazard area and if the property is required to obtain flood insurance, according to the petition. Critics have pointed out that Federal Emergency Management Agency flood maps aren’t accurate and many homes outside the flood zones have sustained water damage through the years. FEMA officials have said that more than 20{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of NFIP claims come from properties that are outside of flood zones.

Homes are flooded along the Neuse River after hurricane Florence came through the area in New Bern, North Carolina, in 2018. (AP Photo/Steve Helber)

Research also shows that homes continue to get built in vulnerable areas, and the dangers have not always been disclosed. A study by researchers at the University of North Carolina, published this month, found that 47,414 single-family homes were built in North Carolina’s 100-year floodplain between 1996 and 2018, the Charlotte Observer reported.

A 2022 study by Milliman, the actuarial and consulting firm, found that a home buyer can face significant flood-damage costs over the life of their mortgage if they purchase a previously flooded home, the NRDC said.

The proposed disclosure rule could help level the playing field for home buyers, but it may not solve everything.

“What we have tried to remind folks is that histories and past events may be an indicator of future losses, but it’s certainly not the only indicator,” said Russ Dubisky with the Insurance Federation of North Carolina.

Just because an area has not flooded in the past doesn’t mean it won’t flood in the future, particularly with climate change bringing more rainfall to some parts of the country. Some events that may flood a basement, for example, don’t damage the home but could still be valuable information for a buyer.

“We would encourage everyone to get a quote on flood insurance, against the most common natural disaster in the U.S.,” Dubisky said.

The rulemaking petition argues that the need for full flood information has increased as repeat flood events have increased. In 2022, North Carolina documented 11,984 repetitive-loss residential properties. That’s almost a 30{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} increase in just five years, based on NFIP data, the groups said.

From 1996 to 2021, the state suffered 4,382 flood events, resulting in more than $1.6 billion in property and crop damage, the petition notes.

But despite widespread flooding in recent years from hurricanes and tropical storms, “homebuyers in North Carolina are not entitled to information about past flooding damage,” the groups said.

Besides NRDC, the petitioners include the North Carolina Justice Center, which works to eliminate poverty. It argued that flood events disproportionately harm lower-income households. Other petitioners include the North Carolina Disaster Recovery and Resiliency School and the Robeson County Church and Community Center, which was heavily flooded in Hurricane Matthew in 2016.

Top photo: Ocracoke Island in North Carolina, after Hurricane. Dorian Friday in 2019 (Connie Leinbach/Ocracoke Observer via AP)

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CA-based ‘tech enabled’ real estate fund owns more than 200 homes in Rochester

CA-based ‘tech enabled’ real estate fund owns more than 200 homes in Rochester

ROCHESTER, N.Y. (WROC) — On Monday, April 10, firefighters were called to a home in the overnight hours at 26 Burbank Street. It was the second time the home caught fire in less than a month and with fire officials deeming it to be arson. The building is owned by an LLC called SFR3-60 and according to city records, it has 12 code violations currently listed. To top it off, the city’s housing attorney Mike Fulano says he cannot get in touch with anyone with the company.

“We have the long-term concern of companies coming in, engaging in de-investment and leaving the city with a husk of a property. We have the short-term problem of these, when there’s an immediate issue and an emergency, that we have no body to contact – the occupants have nobody to contact, the neighbors don’t have anybody to contact whenever something goes wrong with these properties. There’s no accountability,” says Furlano.  

Furlano adds, SFR3 has been on the city’s radar since came on board with Corporation Counsel in September. Based on his understanding, and the company’s website, it is California-based real estate fund which creates varying LLCs to purchase property portfolios.

This is why 26 Burbank Street’s owner is listed as ‘SFR3-60’ — there are other LLCs with similar names, such as SFR3-20, SFR3-80, and so on.

“So in Rochester, there’s 8 different LLCs that own a bunch of property in Rochester. Now our concern, at least with this property [sic, group] – why it’s on our radar is a lot of them have double-digit violations. So 41 of these properties have double digit violations, 17 have more than 20 violations, 25 of these are vacant. 115 of them have open cases with us which means there’s at least one violation known, or no Certificate of Occupancy that we’re aware of.”

I’ve tried to reach out to the group several times over the past but have yet to receive a response.

According to Furlano, SFR3 as the parent company owns hundreds of homes in our area, all purchased within the last two years.

“My understanding is it’s within all their subsidiary LLC’s…over 200 properties….that’s my understanding, yes,” Furlano says.

“They’re distributed throughout Rochester but more so in the areas where property values are lower, a lot of high rental areas. You see there’s a lot of Beechwood here, MarketView Heights, down in the 19th ward as well, Furlano adds, while referencing a map with dozens of pinpoints indicating each property owned by SFR3.

Whether the city will take SFR3 to court is unclear, but the city will have to consider several factors.

“While we can’t comment on cases that we are going to bring — once we bring them, then we can talk about them — so we can’t comment on cases that we are considering, unfortunately,” says Furlano.

There is no cap for the number of properties an individual, group, or otherwise can own; if you are a responsible owner, you can own as much property as you’d like. Current city code states for each code violation on a property, it’s $500 per violation, per day. The City also hired additional code enforcement officers last fall along with a code enforcement trainer. According to the city, each inspector has an average of around 300 cases, or properties, they take on.

These $400,000 Rochester homes share ‘extra character around each corner’

These 0,000 Rochester homes share ‘extra character around each corner’

Apr. 16—ROCHESTER — As spring cleaning and home improvement projects kick in, home sales and inventory are improving in Southeast Minnesota.

The Southeast Minnesota Realtors association, which represents an 11-county region, reported inventory as “up slightly,” according to Eric Brownlow, association executive and government affairs director. March 2023 saw 662 homes for sale compared to 608 homes in February.

In the $400,000 to $500,000 range, about 30 homes are on the market in Rochester with 22 in March. As of Friday, April 14, 210 total homes are for sale in Rochester with 219 homes in March and 173 in February.

Rochester’s median sales price was $305,000 for January to March 2023, according to the association.

“Our market’s getting tough, tougher for price-wise,” said Dustin Kanz, RE/MAX Results Realtor. “I just think overall square footage, location and the updates in these homes is what’s dictating that they’re selling good or not. Buyers these days want move-in ready.”

Here are two Rochester houses in the $400,000 to $500,000 range.

There’s one home that readily “pops” for Dwell Realty Group Realtor Lauren Boutin — not just because of the olive green facade but from memories of growing up in Rochester. She remembers the unique architectural elements and the 1959 home undergoing modern updates.

“This has actually been one of my favorite homes in Rochester my whole life,” Boutin said. “One, the cupola over the garage was always catching my eye, and just architecture of the home, the age of it, how they’ve maintained it and currently the color of the home as well is extremely attractive.”

The five-bedroom and three-bathroom home at 510 16th St. SW is listed at $409,900.

The home’s cupola design is a small structure with air vents and a curved piece leading to a weather vane, Boutin said. Encyclopedia Britannica notes the 19th century

popularity of cupolas

as a distinguishing feature on homes in the United States. The

“ornamental architectural detail”

started in the Middle East and India in the eighth century and extended to Russia, Spain and England in the 17th and 18th centuries, according to ThoughtCo and Encyclopedia Britannica.

Boutin sees “a little bit of extra character around each corner” in the home, such as the mudroom’s in-floor heat and original bathroom tile.

“It has the vintage tile features in really good condition, which is actually, I think, a great benefit to the home. It doesn’t feel all new and sterile, it has that character to it,” Boutin said.

On the 0.79-acre lot, three of the five bedrooms are on the main floor. Boutin said the finished basement also adds extra space for family and friends. She added the “indoor-outdoor entertainment space” shines in the kitchen and backyard.

“You kind of are surprised when you walk out the back with just how much space you have,” Boutin said.

If Kanz could pitch one characteristic of a tiered home at 1014 Northway Lane NE, he’d choose the bonus room above the garage. The pitched roof system places the bonus room in the second pitch with its own door access.

“You don’t see that in too many homes above the garage, it’s nice to have that bonus room,” Kanz said.

He said the bonus room is best utilized as a hobby room or kid’s room, though the 20-by-15 space is open to many possibilities. The four-bedroom and four-bathroom home is listed at $410,000.

The updated flooring, carpet, hardwood, vanities and tiles also make the “updated modern” home a “nice move-in ready home,” Kanz said. He added the light, open spaces are showcased with “nice tall ceilings with lots of tall windows for natural sunlight coming in.”

“It’s really been updated a lot in the last 10 years, pretty much everything’s been updated. It’s got really a nice, private manicured landscape backyard with like three patio levels,” Kanz said. “They’ve got lots of flowers and water fountains, and nice features like that for privacy.”

Hot homes: 5 Denver-area houses for sale, starting at $500K

Hot homes: 5 Denver-area houses for sale, starting at 0K
Alayna Alvarez

3820 Shoshone St. Photo: Courtesy of Compass

This week’s Hot Homes roundup includes a handful of unique Denver properties packed with plenty of charm.

2942 Glenarm Place — $500,000

Why we love it: This cheery and light-filled residence, nestled in one of Denver’s most historic neighborhoods, offers an attached ADU with possibilities for a personal office, guest house or rental unit.

  • Neighborhood: Five Points
  • Specs: 2 bedrooms, 2 bathrooms, 1,121 square feet above, 304-square-foot basement
  • Listing agent: Jennifer Johnson at milehimodern
  • Features: Covered front porch, beautiful front door with stained glass windows, large windows, spacious kitchen with neutral-tiled backsplash.
2942 Glenarm Place. Photo: Courtesy of Rae Scott/milehimodern
2942 Glenarm Place. Photo: Courtesy of Rae Scott/milehimodern
2942 Glenarm Place. Photo: Courtesy of Rae Scott/milehimodern
2942 Glenarm Place. Photo: Courtesy of Rae Scott/milehimodern
1756 South Clarkson St. — $1,175,000

Why we love it: This turn-of-the-century charmer packs plenty of curb appeal and boasts a breathtaking patio that’s perfect for parties.

  • Neighborhood: Platt Park
  • Specs: 2 bedrooms, 2 bathrooms, 1,651 square feet
  • Listing agent: Abell to Sell
  • Features: Hardwood floors, sunroom, wine cellar, primary suite with vaulted ceiling, five-piece bathroom, fireplace, walk-in closet and outdoor access.
1756 South Clarkson St. Photo: Courtesy of Compass
1756 South Clarkson St. Photo: Courtesy of Compass
1756 South Clarkson St. Photo: Courtesy of Compass
1756 South Clarkson St. Photo: Courtesy of Compass
3820 Shoshone St. — $1,350,000

Why we love it: This ultra-contemporary half-duplex features a functional glass garage door that opens to the rear patio and large backyard — an entertainer’s dream.

  • Neighborhood: Sunnyside
  • Specs: 4 bedrooms, 5 bathrooms, 3,233 square feet
  • Listing agent: David Schlichter at Compass
  • Features: Gourmet chef’s kitchen with long quartz island, hardwood floors, floating stairwell, large living room with gas fireplace, primary suite with five-piece bathroom and double walk-in closets, west-facing balcony.
3820 Shoshone St. Photo: Courtesy of Compass
3820 Shoshone St. Photo: Courtesy of Compass
3820 Shoshone St. Photo: Courtesy of Compass
3820 Shoshone St. Photo: Courtesy of Compass
2955 Inca St., Unit 1H — $1,350,000

Why we love it: Whether you want to turn this space into a personal residence or an office space, the choice is yours at this towering, two-story corner unit — the largest in Ajax Lofts.

  • Neighborhood: Ballpark
  • Specs: 2 bedrooms, 2 bathrooms, 2,402 square feet
  • Listing agent: Diane Hiley at Compass
  • Features: Soaring 20-foot wood ceilings, floor-to-ceiling windows, polished concrete floors, heavy timber beams, exposed brick, two deeded parking spaces in secured underground garage.
2955 Inca St., Unit 1H. Photo: Courtesy of Compass
2955 Inca St., Unit 1H. Photo: Courtesy of Compass
2955 Inca St., Unit 1H. Photo: Courtesy of Compass
2955 Inca St., Unit 1H. Photo: Courtesy of Compass
400 South Steele St., Unit 16 — $3,950,000

Why we love it: Elegance and sophistication are embodied in this expansive abode, which sits just blocks away from the Cherry Creek shopping district.

  • Neighborhood: Hyde Park
  • Specs: 4 beds, 4 baths, 8,831 square feet
  • Listing agent: Laura Seitz at Compass
  • Features: Hardwood flooring, expansive kitchen with custom cabinetry and a large center island, fireplace, primary suite with five-piece bathroom, spacious balcony, finished basement for entertaining, covered patio, three-car attached garage.
400 South Steele St., Unit 16, Photo: Courtesy of Compass
400 South Steele St., Unit 16, Photo: Courtesy of Compass
400 South Steele St., Unit 16, Photo: Courtesy of Compass
400 South Steele St., Unit 16, Photo: Courtesy of Compass

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Buyers Market? Homes for Sale Are Staying on Market Longer

Buyers Market? Homes for Sale Are Staying on Market Longer

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As the housing market continues to cool, homes aren’t selling nearly as quickly as they did during the pandemic real estate frenzy.

The typical home spent 67 days on the market in February, according to new data from Realtor.com. That’s 23 days longer than in February 2022, but it’s still a few weeks less than typical homes spent on the market in the years leading up to the pandemic. Between 2017 and 2019, Realtor.com found that the typical home spent 87 days on the market in February.

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What the data shows

The amount of time a home spends on the market varies significantly by location, Realtor.com’s data shows. In Columbus, Ohio, for instance, the typical home spent a median of 42 days on the market last month. A year ago, a typical home there sold within just 25 days. That’s an increase of 17 days.

Here are the cities where the time a typical home spent on the market rose the most in February compared to a year earlier:

  • Austin, Texas: +52 days
  • Raleigh, North Carolina: +51 days
  • Denver, Colorado: +42 days
  • Las Vegas, Nevada: +42 days

It’s no coincidence the four cities above were some of the hottest housing markets during the height of the pandemic. The typical home in the red-hot city of Austin sat on the market for 72 days before selling in February 2023, compared to just 20 days in the same month a year ago.

In Hartford, Connecticut, on the other hand, the time a typical home spent on the market decreased by two days between last month and the same month last year.

What the experts are saying

Even though fewer homeowners than usual are putting their homes on the market this winter, Realtor.com chief economist Danielle Hale says there are significantly more homes for sale now than there were a year ago.

In a news release, Hale attributes that phenomenon to persistently high home prices and high mortgage rates, which are dampening demand from buyers, and suggests that sellers begin adjusting to this new market dynamic.

“With a smaller pool of buyers today and more competition from other homes on the market, home sellers will likely need to adjust their price expectations in the market this spring,” she said.

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More from Money:

Housing Affordability Is Now at ‘the Lowest Level in History’

10 Cities With the Biggest Increase in Homes for Sale Compared to a Year Ago

It’s a Buyer’s Market. So Why Aren’t More People Buying Homes Right Now?

How Wall Street bought single-family homes and put them up for rent

How Wall Street bought single-family homes and put them up for rent

Institutional investors may control 40{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of U.S. single-family rental homes by 2030, according to MetLife Investment Management. And a group of Washington, D.C., lawmakers say Wall Street needs to back away from the market.

“What we’re saying is don’t have private equity buying up single-family homes,” said Rep. Ro Khanna, a Democrat representing California’s 17th Congressional District. Khanna is the lead author of the Stop Wall Street Landlords Act of 2022. “What’s outrageous is your tax dollars are helping Wall Street buy up single-family homes,” he said in an interview with CNBC.

The single-family rental industry got its start with government backing in the fallout after the 2008 financial crisis. “It was that rare opportunity that attracted the institutions to build a portfolio out of these foreclosed properties,” said Steven Xiao, an assistant professor of finance and managerial economics at the University of Texas at Dallas.

Since the early 2010s, Tricon Residential, Progress Residential, American Homes 4 Rent and Invitation Homes have each bought thousands of homes. They’ve also added to the housing supply in some cases with built-for-rent communities.

Some of these companies are financed by private equity firms such as Blackstone and investment managers such as Pretium Partners.

“It’s almost a captive market,” said Jordan Ash, director of labor-jobs and housing at the Private Equity Stakeholder Project. “They’ve been very explicit about how people are shut out of the homebuying market and are going to be perpetual renters.”

These calls come after fierce housing inflation hit many Sun Belt states, including Texas, Florida and Georgia, according to the National Association of Realtors. 

The prices in some Sun Belt markets have outpaced national figures for rent inflation, according to research compiled by Zumper for CNBC. Between January 2020 and January 2023, rents for a two-bed detached home increased about 44{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} in Tampa, Florida, 43{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} in Phoenix, and 35{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} near Atlanta. That’s compared with a 24{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} increase nationwide.

Industry advocates argue that they do not control enough market share to dictate prices in any market. Large institutions owned roughly 5{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of the 14 million single-family rentals nationally in early 2022, according to analysts.

By 2030, the institutions may hold some 7.6 million homes, or more than 40{0cd64a0a8f98edc6e1a333a4649a39f4fde229418ea626ab6b5ac18b9de2691d} of all single-family rentals on the market, according to the 2022 forecast by MetLife Investment Management.

In the short term, however, some companies may retreat from the real estate market as correction concerns mount. “You will see some selling by us,” said Jon Gray, Blackstone’s chief operating officer, in a December 2022 interview with CNBC.

Watch the video above to learn about the rise and future of corporate landlords in the United States.