[StBernard] LRA Buy-Outs

[Westley Annis]

CK,
 
you have expressed one of the exact shortfalls of the LRA process and plan
and how it tends to hamstring the recovery.  Our initial thoughts are to
spread the 25% requirement but that can not start until we know who is
selling to the LRA and people are not sure about selling to the LRA until
they have an idea of what they will get or how their neighborhood may
redevelop.  It is the chicken or egg syndrome at its best.  My personal
recommendation is if people are not rebuilding to tear the house down and
try to sell the lot on the open market this may make it more difficult to
sell but their price from the LRA may be higher as a total loss.
Additionally, the market will be affected by an abundance of homes for sale
with fewer people to buy- this will cause the price to remain low and
undercut the market.  Fewer properties for sale means better pricing so
those people who tear the house d own and sit on their property helps the
recovery, although it is difficult to expect people to put off the sale of a
property that will help them recover financially.  So the bottom line is
that we will have to develop a conceptual plan and adjust it as the reality
of the situation is revealed.
 
Thanks for the input.  Keep it coming.  The more minds on this the better.
 
Good luck and God Bless,
Craig