Wednesday, December 19, 2007

Pocket condo complexes catch on with young professionals

JONATHAN ZEPP is the rare Hollywood executive who gets to walk to work in the morning.

Zepp, executive director of business and legal affairs at Paramount Pictures' Digital Entertainment division, and his wife, Lucy, an account supervisor for a PR agency, closed on their condominium in a new 10-unit project on North Bronson Avenue in July. They were drawn not only by its proximity to the Paramount Pictures lot on Melrose Avenue but also by its open design and the intimacy offered by a smaller development.

The Zepps, both 30, are among a group of buyers whose first-home purchase is in the increasing stock of small condominium projects, mostly new developments taking the place of older duplexes or single-family homes cropping up in dense urban neighborhoods.

Much of the activity is taking place in Hollywood and West Hollywood, though projects are being built in Culver City, Venice, Century City and other pockets throughout the region. And although units in these smaller condo projects are generally priced higher on a per-square-foot basis than those in apartment-style buildings, the appeal for many first-time home buyers is the ability to buy into a new, more intimate urban development as well as the lower homeowners association dues.

There are no hard data on how rapidly the number of small condo complexes has grown -- firms that track the real estate market generally cut off their research at 10 or 20 units. But there is some evidence of the growing trend. For example, Vigen Onany & Associates Inc., a La Crescenta real estate consulting firm that has put together budgets for homeowners associations at hundreds of condominium projects, claims to handle roughly 50% of that market and has done budgets for more than 1,200 small projects since 2000. That year, the firm said, it put together association budgets for 160 developments of 10 units or fewer in Southern California. Last year, that number reached 650, up from 400 a year earlier. It has since backed off to just 350 projects so far this year.

Although buyers cite location, design and lower monthly costs as primary factors in choosing smaller condo developments over single-family homes or units in high-rises, as entry-level housing goes, many of these projects are pricey. Yet enough buyers are willing to pay the higher initial cost for visually interesting designs to support this market.

"People don't want cookie-cutter," said Richard Papalian, president of Papalian Capital Partners in Pacific Palisades, which is developing projects of four, 10 and 12 units in the Miracle Mile and West Hollywood.

"When you start to have a large open space and contemporary feel, it's more expensive to build," he said. "It's not, 'How many bedrooms and baths can I cram into so many square feet?' "

The Zepps paid "in the mid- to high-$800,000" range, roughly $460 per square foot, for their 1,850-square-foot unit in the building developed by Hollywood-based Urban Environments.

By comparison, DataQuick Information Services, which tracks residential real estate trends, reported a median price per square foot of $367 for a condo in Los Angeles County in October. There is no independent tracking of sales in projects of 10 units and fewer.

One offset to the higher per-square-foot price can be lower homeowners association dues. Because smaller projects generally don't have pools, gyms or full-time front-desk or maintenance staff, monthly dues to cover taxes, insurance, water and gardening bills can be one-third of those at a larger complex.

"One appeal is dues of $150 a month," said Tony Myers, an agent at Re/Max All Cities-Brentwood, who has sold condos in small developments. "Some people like to keep the . . . dues low and have special assessments" when a capital expenditure is needed, he said.

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source: latimes.com

Fire retardants that protect the home

Scott Garrett got the evacuation order at 6 a.m. on Oct. 22. His Lake Arrowhead home lay in the path of the Grass Valley fire, and flames would arrive within hours.

Garrett rushed to his garage, where he kept 15 gallons of a flame-retardant spray called Safe-T-Guard. Using a garden sprayer, he applied the clear liquid to his 5,500-square-foot home's decks, eaves and wood siding.

Though houses up and down Garrett's street burned in the blaze, his remained standing. Garrett later found a 3-inch-long blackened ember that had been blown onto his deck. The wood around it had charred but hadn't caught fire -- thanks, he said, to the spray.

"Every one of the neighbors around here wants to get some now," Garrett said.

Garrett's neighbors aren't the only ones. Manufacturers of products such as Safe-T-Guard have seen interest soar in the wake of the fires. And San Diego-based Fire Etc. reports that sales of some of its home fire-retardant products have doubled in recent weeks.

The state of California mandates that fire-retardant materials be used in commercial buildings, including churches and senior centers. But even California's strict regulations weren't enough to save Malibu Presbyterian Church, which burned to the ground during the October wildfires.

Residential properties face no such mandate, so home fire protection is largely a do-it-yourself enterprise. Homeowners should never rely solely on fire retardants for protection, said David Duea, president of Fire Etc. No product is fail-safe; most are far from it.

Smart fire prevention includes clearing brush and debris away from all structures. Woodpiles should be kept at least 30 feet away from the home as well. And when a blaze is on its way, a well-thought-out evacuation plan is far more important than anything sold in a store, experts agree. Even Garrett says that he was foolish not to evacuate. "It was really crazy and dangerous and dumb, and I don't know that I would do it again," he said. But he does swear by the product that he says spared his house.

There are many fire-retardant products available in California, but few are widely marketed to consumers. Garrett learned about Safe-T-Guard through his work as a textile specialist on film sets, where he treated fabrics with the liquid to protect them from open flame. Realizing how useful the product could be, he decided to keep some in case of emergency.

Now, more and more companies are manufacturing products aimed specifically at homeowners. Some can protect homes for years with one application; others are designed to be used only as a wildfire approaches.

Here is a sampling:

* Thermo-Gel, sold by Fire Etc. of San Diego, is a concentrate that, when mixed with water, becomes a heat-absorbing Class A fire retardant. (In laboratory testing, Class A retardants slow the spread of flames by 75% or more; Class B retardants, by 25% to 75%.) The gel works only for five to eight hours after application, so it's designed to be applied as a fire approaches. Fire Etc. markets Thermo-Gel as part of a $330 homeowner kit, which includes four 1-gallon containers of gel along with an applicator nozzle that allows them to be screwed onto a garden hose for application to a home, car or yard. The distributor claims the kit will cover 4,000 square feet.

Several government agencies in California use Thermo-Gel, including the San Bernardino County Fire Department and the state Department of Forestry and Fire Protection, said Chad Nelson, sales manager at Thermo Technologies, which manufactures the gel. Some homeowners, however, have complained that the gel can be messy and difficult to apply.

Fire Etc. also markets the Fire Marshal Pool Pump, a $1,295 system that lets homeowners use their pool water to fight fires. The pump comes with a 100-foot hose and adjustable nozzle and can take in up to 70 gallons of water per minute and shoot it out in a high-velocity stream with about half the power of an average firetruck hose, the company said. Fire Etc. is currently sold out of the pumps due to a surge in interest following the recent wildfires, Duea said. The company now has a waiting list.

Thermo-Gel and the Fire Marshal Pool Pump can be ordered at www.fire-etc.com or by calling (619) 525-7286.

* Barricade International's Home Kit Complete is a similar product. It comes with 4 gallons of Class A fire-retardant gel, which the company estimates will cover 2,000 to 2,800 square feet. The gel can be applied through a garden hose applicator nozzle, which is included in the kit and, under normal conditions, will last from eight to 24 hours on the side of a home (though in high winds such as those experienced during the recent wildfires, it may last as little as four hours). Barricade's gel is currently used by the Los Angeles City Fire Department. Homeowners can purchase the kit for $326 at www.barricadegel.com or by calling (800) 201-3927.

* Safe-T-Guard, manufactured by Santa Clarita-based Firetect, is a clear, odorless and nontoxic Class B fire retardant that can be used on wood, paper and some fabrics. Homeowners can apply Safe-T-Guard, as Garrett did, with a simple garden sprayer for large projects. A household spray bottle can be used for smaller ones, and unopened containers of the retardant will last up to 10 years. Safe-T-Guard is intended for long-term indoor use, not for a last-minute outdoor application like Garrett's. A gallon costs $31.95.

* WT102, also sold by Firetect, is a latex-based paint that acts as a Class A fire retardant. WT102 works with water-soluble tints and can be applied like any paint. About $40 per gallon, it has a shelf life of two years.

Although some homeowners have used WT102 and Safe-T-Guard on home exteriors, they haven't been tested or approved for outdoor use and will decay over time, said Firetect President Kathleen Newman. WT102, though, might last for 10 or more years on a home exterior, Newman added. Both products are available at www.firetect.com or by calling (800) 380-8801.

* Flame Resist, made by Hy-Tech Thermal Solutions of Florida, is a clear, fire-retardant coating that sells for $70 per gallon. It too has not been approved for outdoor use. Hy-Tech claims that it will last 14 to 18 months on the exterior of a home before reapplication is necessary. It can be applied with a garden sprayer.

Flame Guard, also made by Hy-Tech, is a granular paint additive sold for $10 per 6-ounce package. One package added to a gallon of paint gives it a Class B rating; two, a Class A. Flame Guard works only with interior flat latex paint, available at most hardware stores. Flame Resist and Flame Guard can be purchased at www.hytechsales.com or by calling (866) 649-8324.

* A higher-end interior paint is available from International Fire Resistant Systems, based in Marin County. The company's Class A latex-based FF88 has been used in the Pentagon and the U.S. Embassy in Iraq. It too can be tinted to a custom color and applied like a regular paint, but its price -- $315 for a 5-gallon container -- may be out of range for some homeowners, even if they want the cachet of matching the Green Zone's most coveted address.

Those interested can go to www.firefree.com, or call (415) 459-6488.

* The Foamsafe FireMaster, designed by Oregon-based Consumer Fire Products Inc., is a high-end system designed to protect a property automatically in the event of a wildfire. Starting at just under $20,000, including installation, each FireMaster includes a compressed foam system (shaped like an outdoor air-conditioning unit), a water tank, a set of roof-mounted fire detectors, and a network of tubing connected to emitters placed on the home and around the property.

When the detectors sense an approaching fire (a feat the company claims these devices can perform at a distance of half a mile), the system activates and begins spraying the home and yard with a Class A fire retardant foam called Silv-ex. Think of it as an automatic sprinkler system for the outdoors.

Each FireMaster system comes with 10 gallons of foam concentrate, which retails for about $20 per gallon and has a shelf-life of 20 to 25 years.

After a fire is detected and the system finishes its spray cycle, it temporarily deactivates and re-scans several hours later. If it still senses a fire, it sprays the home again. Each coat can last for up to 12 hours.

For an added fee, the system can be activated online; another added feature allows it to call up to four phone numbers as an alert of its activation.

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source: latimes.com

October sales activity for San Diego County

The chart lists median prices in thousands of dollars for sales of existing single-family homes and condominiums by ZIP Code. Community names are included for convenience. Some ZIP Codes include multiple cities that, due to space limitations, cannot all be listed by name.

Percentage changes are a year-over-year comparison for the reporting month.

The price per square foot in the far right column includes only single-family home sales and does not include attached garages.

Prices, provided by DataQuick Information Systems in La Jolla, are drawn from official county records and are determined on the basis of the documentary transfer tax, when paid in full.

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source: latimes.com

For the record

Hot Property: The Nov. 4 column reported that actor Matthew McConaughey personally knocked on the door of a Malibu home that wasn't on the market and struck a deal. However, the story should not have implied that he chose the home at random. He was represented by Lily Harfouche of Coldwell Banker-Malibu West and was shown the house by the seller's agent, Michael Cunningham of Pritchett-Rapf & Associates, Malibu Road, who had a pocket listing on it.

Stone counters: A chart accompanying a Nov. 18 Real Estate story about countertop options stated that marble, soapstone, basalt and Jerusalem stone, among others, are tough and impervious to most stains. Treated soapstone and basalt fit that description, but marble and Jerusalem stone are highly porous and need regular care to be kept stain-free.


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source: latimes.com

Meeting information too hard to come by

Question: My homeowners association posts meeting notices in various and arbitrary locations. Does posting a meeting notice somewhere in the community meet civil code requirements, or must the notice actually be sent to each homeowner? Also, I requested meeting minutes and was told I'd have to pay $5 for copying and mailing costs. Is this legal, or must the board provide minutes by mail or e-mail free of charge?



Answer: References to notice and meeting requirements appear in various sections of the Davis-Stirling Act. Notice for association meetings must follow the law and the association's covenants, conditions and restrictions.

Notices should be posted in a "prominent place" or places within the common area and by mail to any titleholder who requested notification of board meetings be sent to them by mail. Notice may also be given by mail or delivery to each unit in the development or by newsletter or similar means of communication. Also of note, under Civil Code Section 1363.05, every notice must contain an agenda for the meeting.

Every titleholder must receive notice. For the association to deliver a document by "e-mail, facsimile or other electronic means," the recipient must agree to that method of delivery. This and other approved methods of document delivery under the Davis-Stirling Act can be found under Civil Code Section 1350.7.

Civil Code Section 1365.2 makes it clear that minutes of member and association board meetings must be permanently made available. If a committee has decision-making authority, minutes of the committee meetings also must be permanently made available.

Under Civil Code Section 1363.05(d), other than an executive session, the minutes, including those marked "draft" or "summary," of any association board of directors meeting must be available to titleholders within 30 days of the meeting.

Although those items are available to titleholders, it is only upon request that the minutes, whether draft or summary, "shall be distributed" to any titleholder.

Not all associations ask for reimbursement of copy costs. Under Civil Code Section 1365.2, you should be able to view the minutes without charge. Any matter discussed in executive session should be generally noted in the minutes of the next open meeting.

If the association fails to provide the minutes or other requested documents in a timely manner, and you have tried direct and repeated requests but not been unable to resolve the issue, you might consider filing an action in Small Claims Court. Titleholders can bring an action to enforce their right to inspect and copy the association records, and this includes meeting minutes. Civil Code Section 1365.2(f) states that "if a court finds that the association unreasonably withheld access to the association records, the court shall award the member reasonable costs and expenses, including reasonable attorney's fees, and may assess a civil penalty of up to five hundred dollars ($500) for the denial of each separate written request."

Should you decide to go this route, be certain to keep copies of all your written demands for books, records and minutes, including written responses to your demands. These documents may be vital to your case.

Owners in disagreement with their association's delivery methods or actions in general need to speak up and make their dissatisfaction known. A Small Claims action may prod the board into complying with laws meant to protect titleholders.

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source: latimes.com