One thought on “Mortgage Interest Tax Deduction on Chopping Block!”

  1. John Kyle


    Your concerns about the City’s intention to require compliance in older homes when placed on the market are noted but the fact is that City fails recognition that some homes, such as in the Palma Ceis area, are incapable of being upgraded with a meeting out a deal busting conditions.

    While employed as a staff appraiser at a Bank I took extensive courses in urban renewal at Cal Extension. Urban renewal was a great idea as was the concept of Urban Redevelopment.

    During those days, FHA had a requirement placed on appraisers to really inspect a previously owned home being sold under FHA terms when the appraisal involved a community using urban renewal and /or urban re-development funds supplied by US Government. In some cases FHA adroitly collaborated with a City needing much attention in it’s housing stock. So that the appraiser did a ‘thorough job’ even if an urban renewal or redevelopment project was lacking. With employers knowledge, understanding, and encouragement, I was ‘moonlighting’ quite extensively on weekends and holidays……. My appraisals were reported out with the requirement that City would follow up on the requirement to inspect the property when the needed work was done. It went well except for the fact that Real Estate Brokers did not like those ‘deal killing requirements’. A bit red faced FHA stopped the practice. The reported values were on an ‘as improved basis’ with subsequent re-inspection, as to the performance of the conditions. A valued tool of finance and City preservation as well as ecological concerns was lost.

    Cities lost a tool which now in the days of concern for ecology as well as energy conservation are important but now impractical. Impractical for the reason that tracts such as Palma Ceia are a problem looming large when considering any upgrades to conserve energy.

    Bank of America did an appraisal of the entire series of subdivisions presented to then for consideration of a construction loan on the entire subdivisions of the Palma Ceia developers as they came to forefront of the Market.

    What happened was a thorough examination of the housing plan together with an examination of the materials to be used. Visits to other tracts by developer were also included.
    Appraisal was sufficient to make the requested loan but was turned down, cold, with the advice that the structures would require much maintenance attention within a short span of economic and physical life expectancies.

    Without seeking my advice, wife’s brother and his wife bought one of those on the basis of price relative to the market. At house warming my Father-in-law challenged me to make some notes on the corrective maintenance needs of the home in it’s ten year old condition. The resultant list was a shock to brother in law.

    Not too long after he acquired the home he, an ardent golfer, had to meet the demands of his Dutch heritage wife, an ardent housekeeper. She wanted the windows washed!

    Ardent golfer thought he had a solution. He took the hose out to water blast the exterior, childlike in his approach, he found it a bit of fun until his wife came home after about two hours away. Unaided by the ardent golfer, who thought he could get away after only attending the exteriors, was met by a wild scream as the wife, attempting to carry in groceries, stepped into a puddle of water covering carpets etc throughout the home.…… Examine the Palma Ceia design …..

    Notice the window glass under the apex of the gable roof design. That glass was held in by trim work made of pine stained to look like redwood. The trouble continues with the open beam supported ceiling. There is no attic. Partitions separating bedrooms and baths are extended to the ceiling. Heaters are limited to wall heaters of in some instance forced air units with limited ducts extending only to ceilings over bedrooms and bath. The floors are cold. Just 4 inches of concrete over compacted red rock based soils.

    Exterior walls were line wire stucco and no insulation or even firtex over nailed up to exterior before receiving the stucco ever came to my notice.

    The City’s desires will stumble on that one area of housing alone. Socially, we might see an upgrade in population component if that area became the object of a “redevelopment project” using Fed Funds.

    My own home was chosen for it’s proximity to St. Joachim’s Church where all four of our youngsters attended through eighth grade before moving on to Moreau. We had a location near two advanced education sites after Moreau which was also part of our long range living plan.

    In January or March, I forget which, we will have lived in this home for 50 years. The redwood V- groove exterior around the entire perimeter is sufficient insulation. Ceilings are well packed with the insulation stuff. With the self constructed 500 sq.ft edition started in 1972 and not completed for several years, (night time efforts at sheetrock installation is a great birth control device for us ‘Mick’s). Forced air Heat with perimeter installation using floor grating outlets, change over to dual pane windows etc. we now have 1550 sq. ft 3 bedrooms 2 baths in what became loosely described as a horse-shoe shape with open deck between the two wings at rear elevation.

    Nothing in City’s plan for addressing energy conservation plan applies to me. Those living in the ‘Flat Top Smith’ housing along Santa Clara St. just south of West A Street and Palma Ceia tracts, have a worrisome problem facing them if City’s plan proceeds. Then too, Hayward has plenty of residential inventory dating from incorporation to the depression which do not meet standards desired by those concerned with climate etc. My bet is that there will be a howl from Board of Realtors whose offices on Mission north of Grove, were moved long ago to Pleasanton. I only imagine that they have influence over C of C…. and that the howls of protest over the ‘deal busting’ concerns will see the Council eventually pulling way from the ‘upgrade’ desires. The only support will probably come from Horse owners in Highlands area. Or from more rational folk, who might see this as an imposition occurring only at sales where the price is re-negotiated to reflect meeting standards sought.

    Caveat Emptor another concept lost to drop outs at HUSD? $5.00 will get you ten if you let me assume that ‘home econ’ classes never properly approach discussion of Home purchase at public schools. They are not mentioned at all in Parochial institutions where the assumption is that additional education at college will over opportunity to learn about ‘caveat emptor’

    Shucks, HUSD continues to produce those types which are unconcerned with either ecology or home economics.

Comments are closed.