Former HUD Cabinet Secretary Supports Use of Private Transfer Fees
NEW YORK, April 15, 2011
NEW YORKApril 15, 2011 /PRNewswire/ — A former high ranking U.S. cabinet secretary who is widely respected for his knowledge of the housing markets has weighed in with his support for private transfer fees.
Developers use private transfer fees to apportion infrastructure costs over time, instead of forcing the burden entirely onto the shoulders of initial buyers.
In a letter to the Federal Housing Finance Agency, Henry Cisneros, who was appointed by President Bill Clinton to serve as the 10th Secretary of the Dept. of Housing and Urban Development, pointed out the benefits of using private transfer fee covenants, writing,
"By recovering infrastructure costs over time, instead of embedding the costs within the sales price, home ownership becomes more affordable, and projects become viable."
After debunking the myths that transfer fees are hidden, restrain alienation, and are distributed to unrelated third parties, Mr. Cisneros went on to conclude,
"The reality is that private transfer fees have the potential to help fund infrastructure, reduce negative equity, make home ownership more affordable, and create jobs, while also funding important societal goals such as affordable housing. I urge policymakers to adopt disclosure legislation that allows the responsible use of this important private sector funding tool while helping to ensure a fully informed consumer."
Mr. Cisneros' letter can be read in its entirety at: http://www.fhfa.gov/webfiles/21064/1044_CityView_Executive_Chairman_Henry_Cisneros.pdf
About Freehold Capital Partners: Through the use of private transfer fee covenants, Freehold Capital Partners helps property owners and developers more fairly apportion costs associated with significant capital improvements and, in the process, lowers the cost of homeownership while also creating sustainable funding for non-profits. An estimated 12 million homes nationwide have a private transfer fee, with virtually no reported problems for buyers, sellers, lenders, realtors, title insurers or others.
SOURCE Freehold Capital Partners