Buffalorising has been redesigned.

I was forwarded a sneak preview by Michele Johnson (a dynamo if there ever was one- keep plugging MJ!). Pretty powerful stuff- if this doesn't open some eyes as to this plague that is dragging down the city, not much will. No easy solutions, but awareness is the first step.

In case a few BR readers haven't seen the neighborhoods where this takes place, MIchelle tipped me off to this property at 28 Eaton last week. It's a short two blocks from Midtown and the Artspace project on Main Street.

This house is currently on Ebay. My pics and commentary and the Ebay link: http://tinyurl.com/ozwvd

Suggestions?

This sounds like a great project. I only hope that it is comprehensive in the accountability of house flipping. There is no doubt that the people who engage in these practices are unethical slime who give legitimate real estate investors, who turn problem properties around for profit, a bad name. However, I can't understand how accountability never seems to fall on the buyer in these house flipping scams. They may be duped by unethical advertising and misleading information, but I have a hard time feeling too badly for people who don't do their full due diligence when making any kind of financial investment. I know that may sound cold, but two parties must be comlicit for this scam to work. In this regard, I hope the film doesn't fully portray the buyer as a victim. Hopefully this film does shed more light on a societal problem that affects so many more than just the people involved.

this is called thr free market - the same person who lost money in Buffalo, but 10 properties unseen in Vegas or Florida and is retiring today.

The neighborhood is a war zone - who cares

MANY people care, This is not just an East Side issue.

As WCP says, awareness to any issue the the first step. That's what Michele is trying to do here. While the buyer is also at fault, the victim REALLY is the neighborhood, which you will see in this film.

It's hard to comprehend the impact of this issue without seeing it every day, as Michele does. This is just a taste of that reality.

What pops into your mind when you hear the word "Nigeria?" Admit it - it's scams and fraud. If flipping continues the way it is now, the word "Buffalo" might have a similar association in the minds of many people.

When I was living in Denver in the late 1990s, the term "flipping" actually had a positive connotation. Someone buys a small bungalow in an up-and-coming neighborhood for $150K. They clean up the yard, reseed the lawn and put in decent landscaping, and "neutralize" the interior; repaint and recarpeting the interior, give the kitchen and bathroom some basic upgrades with new cabinets, flooring, tiling, and so on. They'll put a few months of their labor and about $10K to $15K into the project, after which they'll turn around sell the house for $250K. They'll probably deal with the inevitable bidding wars from newly-minted yuppies looking for a hot city neighborhood. That kind of flipping really isn't possible in Buffalo yet.

Who the hell buys a house on eBay, anyhow?

Three words you hear a lot in many of the eastern suburbs of Cleveland, but NEVER in Buffalo.

Mandatory presale inspections

They're performed by the city. If the inspection fails, you can't transfer ownership of the property. Simple. A bit of peeling paint on a patio step can stop the sale of a house in Cleveland Heights.

Dan --- you offer a great and positive suggestion. Would be an excellent addition to our city's ordinances.

I grew up on the east side... Clinton/Fillmore.... went to church and grammar school at St. Nicholas on Fillmore near Genesee... clothed from Sattler's and Kobacker's, grocered from the basement supermarket at Sattler's and the Broadway Market. That neighborhood was front and center in my everyday life. Can it ever come back? Driving through today I almost want to cry.

I would rephrase the ordinance and go one better.

We need stronger enforcement of local property and changes could be an ADDED FEE for owners who are located outside of Erie County and greater stipulations for contact information.

We could also block the sale of any and all property that have out-standing unpaid fines unless the new owner agrees to accept responsibility for paying and remediating the fines. In other words the fines must be paid at the time of sale but the new owner is allowed time to respond to the citations.

I think its a travesty that there isnt a top 10 list in every city councilmen's district office for that councilman to either make a personal call to an inspector (fines), or the district attorney (prosecution) or demolition.

I think its also a travesty that there isnt a quarterly CITY LIVING event bringing together potential owners, banks (prequalifications, loan applications), appraisors, real estate agents, etc. Of course I think its disappointing that each section of the city doesnt have a small business Chamber of Commerce like South Buffalo which would be a great way to educate people interested in the neighborhood of all the local community services.

The system is broken there is no doubt about it, in 2005 well over 300 properties were flipped in Buffalo about 50-60% of them will be reflipped again.It is happening on the East & West side as we show in the documentary.

This is the perfect opportunity for Buffalo to pass a law that a property cannot be sold in less than 1 year or 18 months or 2 years without an inspection nor can it be sold if there are outstanding fines.

This is a huge failure that the Brown administration must address immediately but whether they have the intelligence and/or the courage to address it is another matter.

Due to the amount of RSVPs we've received thus far, we've added a second screening of "Flipped". The first screening will start promptly at 6:00 PM, and the second will begin at 7:30 PM. Both will be followed by question and answer periods. We want everyone to be able to see this documentary.

If you are interested in reserving a seat, please email us at: info@broadwayfillmorealive.org.

From the City of Shaker Heights:

Sellers of residential real estate are required to obtain a Point of Sale inspection and to present that report to any prospective purchaser prior to the execution of a contract of sale. The fee for the inspection is $50 for the first dwelling and $25 for each additional unit. The inspection is a comprehensive interior/exterior evaluation (click to view interior inspection guidelines, click to view exterior inspection guidelines). If violations are identified, they may be passed onto the buyer. However, an escrow account must be established and funds, equal to 150% of the estimated cost of repairs, must be deposited to pay for the cost to correct all violations (click to view the Point of Sale Fact Sheet).

Once a Point of Sale inspection is conducted, any identified violations must be corrected, even if the owner determines to take the property off the market.

From the City of Cleveland Heights:

Owners of real estate in Cleveland Heights, including single-family and two-family dwellings, duplexes, apartments, condominiums and commercial properties, are required to obtain a Certificate of Inspection (Point-of-Sale) prior to entering into an agreement to sell a property. Sellers must provide the prospective purchaser with a copy of the original Certificate of Inspection (valid for one year from the date of issuance) and Certificate of Compliance (if available) prior to the execution of a contract of sale. Cost for the Point-of-Sale Inspection is $100.00 for the first unit and $50.00 for each additional unit. For example: a two-family residence would cost $150.00, a four-unit apartment building would cost $250.00.

[snip]

Beginning in November 2001, an addendum to the City's existing housing ordinance regarding Point-of-Sale matters established an escrow requirement for major housing violations. Well-maintained homes with only minor violations will not require escrow. The following types of violations, which are considered to be Class 'A' violations and are designated as such on the Point-of-Sale Inspection reports, are of particular concern to the City's vital interest in maintaining property values:

Exterior:
o Roof, chimney
o Paint and all related carpentry repairs )house and garage)
o Major porch and step repair
o Downspouts to storm sewers
o Replacement of deteriorated windows and/or doors
o Concrete replacement or major repair
o Dead tree removal
o Fences

Interior:
o Major electrical repair (panel replacement, rewire of basement, etc.)
o Major plumbing repair (replacement of stacks, fixtures, supply lines, etc.)
o Heating, ventilation and cooling (HVAC)
o Foundation - support post, block wall bowed or collapsed
o Major breach of ceilings, walls or floors

If major Class A violations noted on a Point-of-Sale Inspection are not corrected prior to the transfer of title, an escrow account must be established and funds must be deposited to pay to correct the violations.

From the City of University Heights:

All dwelling units, which will be offered FOR SALE, will be subject to a required point of sale inspection. This is an interior

and exterior inspection intended to identify violations of the University Heights Housing Code. Title of the property may not transfer until all corrections have been made, or an agreement of assumption by the buyer is filed with the Building Department. Please refer to Point of Sale Questions & Answers à Click Here

Housing inspectors look for violations of the City Housing Code only. It is recommended that a buyer secure the services of a qualified private inspector. Neither the City of University Heights nor its representative, assumes any liability or responsibility for failure to report any violation(s). Inspection by the City does not guarantee that all defects have been discovered. Furthermore, violation(s) may develop after the inspection.

From the City of Beachwood: proactive regular inspections!

The Beachwood Housing Department will begin in April conducting the City's 2006 routine exterior maintenance inspection program. This program has been successful in the City's attempt to maintain and increase property values, while maintaining a beautiful residential community.

From the City of Lyndhurst: same as Beachwood

The Lyndhurst Building Department started an exterior housing inspection program in the spring of 1990. The objective of the program is to systematically inspect the exterior of every dwelling, (6000 homes), to eliminate conditions that could cause blight and or a decrease in property values. This program helps maintain the attractiveness of Lyndhurst neighborhoods, and helps to protect your real estate investment and the tax base. The program identifies exterior violations of the housing maintenance code, including hazards and nuisances. Common violations include peeling paint or defective siding, damaged or missing gutters and down spouts, missing mortar in steps and foundation walls, defective driveways, defective outside electrical systems, and trip hazards on sidewalks & driveways.

The Building Department issues Violation Notices to owners when appropriate. We have a coordinated follow up program that ensures that violations are corrected in a timely manner. We work to grant additional time to owners who have difficulty complying with notices due to finances, infirmity or family situations. We refer people to county aid and loan programs as needed. The court system is our last resort and is used as necessary.

The Building Department started the second round of inspections in (2001) on properties that were first inspected in 1990. Generally the properties are in good condition and had far fewer violations than when inspected a decade earlier. Most residents have a positive view of the program and promptly comply with our notices.

Dan,

These are considered relatively affluent areas, eh? Does the city of Cleveland have similar ordinances? If not, I wonder why?

The area of Shaker Heights south of Van Aken Boulevard is predominantly African-American, and includes a lot of multi-family housing - two and three family houses. It's like a little bit of Masten Park plopped down next to Snyder or Central Park.

Cleveland Heights has some well-off areas, but it's mainly middle-class and "lower upper middle class," if there is such a thing.. It feels a lot like North Buffalo in some areas. CH does have a lot of rental housing, and some areas that are predominantly African-American where predatory lending has created some problems.

Lyndhurst is solidly middle-class, but has a few more affluent areas. It reminds me a lot of the neighborhoods around Colvin Avenue in Tonawanda.

Beachwood is next to Shaker and University Heights. It feels like the Maple/North Forest section of Amherst., only with somewhat larger houses, and far fewer trees. Orthodox Jews are starting to buy older, smaller houses in Beachwood. They're tearing them down, and flling the lots with MASSIVE new houses - we're talking seven or eight bedrooms. Unlike many other cities, teardowns are rare in Cleveland; Beachwood and some older Woodlawn-like lakefront neighborhoods in Lake County are the only places where it happens. I don't think any part of Buffalo has real market-driven teardown-and-replace-with-a-McMansion activity.

South Euclid is between Lyndhurst and Cleveland Heights; it's solidly middle-class. They're considering a point-of-sale inspection program, but running into some resistance from elderly residents who are afraid they won't be able to sell their houses. Like CH, they're having problems with predatory lending.