New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens, of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

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Online:

Task force recommendation: http://www.uspreventiveservicestaskforce.org

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Hollywood Reporter addresses role in Blacklist era

LOS ANGELES (AP) — The son of The Hollywood Reporter founder Billy Wilkerson is apologizing for his father's and the trade paper's role in the 1947 Hollywood Blacklist that destroyed the careers of writers, actors and directors accused of having communist ties.

In an article published Monday by The Hollywood Reporter, Willie Wilkerson, 61, calls the Blacklist era "Hollywood's Holocaust" and says, "On the eve of this dark 65th anniversary, I feel an apology is necessary."

He says his father supported the Blacklist to exact revenge against the Hollywood titans he felt denied him entry to their club when he wanted to establish a movie studio in the late 1920s. Billy Wilkerson founded The Hollywood Reporter in 1930, and after World War II, used the paper as a vehicle for a series of editorials attacking communist sympathizers and their influence in Hollywood.

"In his maniacal quest to annihilate the studio owners, he realized that the most effective retaliation was to destroy their talent," Willie Wilkerson writes. "In the wake of this emerging hysteria surrounding communism, the easiest way to crush the studio owners was to simply call their actors, writers and directors communists. Unfortunately, they would become the collateral damage of history. Apart from being charged with contempt, for refusing to name names, none of these individuals committed any crimes."

Studios dominated the industry and denied work to those named on the Blacklist. Some writers worked under pseudonyms. Many actors and their families moved overseas to look for work. The Hollywood Reporter named names and ceaselessly covered the issue. The publication also details its role in the Blacklist era for the first time in a lengthy article published Monday.

"Any man or woman who, under the guise of freedom of speech, or the cloak of the Bill of Rights, or under the pseudo protection of being a liberal, says things, causes things to be said, or who actually is involved with many of the conspiracies that have now infested this great land of ours, has no place among us, be he commie or what," Billy Wilkerson wrote on Nov. 5, 1947. "He or she should be rushed out of our business."

The first Hollywood Blacklist was published Nov. 25, 1947.

Willie Wilkerson says it's possible that his father would have apologized for "creating something that devastated so many careers" had he lived long enough. He died in 1962, two years after the Blacklist was broken.

His son writes: "On behalf of my family, and particularly my late father, I wish to convey my sincerest apologies and deepest regrets to those who were victimized by this unfortunate incident."

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AP Entertainment Writer Sandy Cohen is on Twitter: www.twitter.com/APSandy .

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Online:

http://www.hollywoodreporter.com

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Best October in 6 years for area home sales









The Chicago area's housing market last month regained the momentum it lost in September, resulting in more homes being sold than in any October since 2006.

Sales of existing single-family homes and condominiums in the nine-county Chicago area totaled 8,326 properties in October, according to figures released Monday by the Illinois Association of Realtors. While below some of the monthly sales totals recorded earlier in the year, the volume was an increase of 11.3 percent over September and 44.1 percent higher than the 5,776 homes sold in October 2011.

Within the city of Chicago, 2,009 homes were sold in October, an improvement of 8.8 percent over September and up 53.1 percent from October 2011. Condos accounted for 60 percent of the city's sales volume.

The strong sales continue to remove excess inventory for the market, which is necessary before price appreciation can truly begin. The number of homes listed for sale is at its lowest point in five years, according to Midwest Real Estate Data LLC, the local multiple listing provider. 

Meanwhile, the number of pending home sales in the Chicago area, meaning properties that are under contract but the sales have not yet closed, totaled 10,364 in October, the highest it's ever been except for April 2010 when home sales were affected by federal homebuyer tax credit programs.

For the Chicago area as a whole, the median price of a home was $153,000, the lowest it's been since March but still ahead 2.1 percent from October 2011's $149,900.  Among local counties, DuPage County was one of those that saw double-digit, year-over-year monthly appreciation, rising 11.4 percent in October, to $195,000.

Within the city, the median price rose to $175,000, up 8 percent from a year ago but again, the lowest monthly price recorded since March. In the condo market, the median price fell 8.7 percent from September, to $210,000. However, that sum was a 13.5 percent increase from October 2011.

Last month, 43 percent of sales within the city were either foreclosures or short sales.


The median is the point at which half the homes are sold for more and half for less.

"There's a great deal of end-of-the year excitement," said Zeke Morris, president of the Chicago Association of Realtors. "Typically our numbers are down in the fourth quarter but we're beginning to catch up to other markets in Illinois."

Geoffrey J.D. Hewings, a University of Illinois economist, attributed the improved sales performance to a slowly improving economy, stronger consumer confidence and continued low mortgages rates.

The monthly average commitment rate for the benchmark 30-year, fixed-rate mortgage in the Chicago area was 3.36 percent in October, compared with 3.49 percent in September and 4.07 percent in October 2011, according to the Federal Home Loan Mortgage Corp. Last week, Freddie Mac said average mortgage rates hit a new all-time low in its weekly survey, of 3.34 percent for a 30-year, fixed rate mortgage.

mepodmolik@tribune.com | Twitter @mepodmolik



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1 dead after minivan rear-ends car stopped in express lanes

Emergency vehicles at the scene of a fatal collision on the Dan Ryan Expressway. Video by Stacey Wescott.









A Steger man was killed and three other people were hurt when a minivan rear-ended a car stopped in the express lanes of the Dan Ryan Expressway near 26th Street this morning.


At about 4:20 a.m., a 2005 Chrysler Pacifica was stopped for traffic ahead while traveling northbound in the express lanes on I-94 near 26th Street, Illinois State Police Sgt. Jose R. De Jesus said in an e-mailed statement.


While stopped, the Chrysler was rear-ended by a 2005 Chevrolet Uplander minivan, which caused the Chevrolet to hit the right wall and flip over, the statement said.








The minivan was occupied by three people, but at this time, it is not clear who was behind the wheel, the statement said.


One of the minivan's occupants was taken to Northwestern Hospital and listed as being in serious condition while another, 32-year-old Dennis Moore of Steger, was transported to John Stroger, Jr. Hospital of Cook County, the statement said.


Moore, of the 3000 block of West 34th Street in the south suburb, was pronounced dead at 5:08 a.m. at Stroger, according to the Cook County medical examiner's office.


The driver of the Chrysler was also transported to Stroger hospital with non-life threatening injuries.  


The investigation remains ongoing and no charges have been filed at this time, the statement said.


Local lanes remained open even after the accident, but express lanes had earlier been closed at 26th Street before re-opening in mid-morning.


Fire officials transported four people to area hospitals in critical condition, Chicago Fire Department spokesman Kevin MacGregor said.


All of the injured had to be extricated from their vehicles, MacGregor said.


Two of those injured were taken to Stroger hospital, and two were taken to Northwestern Memorial, MacGregor said.


chicagobreaking@tribune.com


Twitter: @ChicagoBreaking





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Exclusive: Facebook offering e-retailers sales tracking tool

SAN FRANCISCO (Reuters) - Facebook Inc wants more credit for making online cash registers ring.


Facebook will begin rolling out on Friday a new tool which will allow online retailers to track purchases by members of the social network who have viewed their ads.


The tool is the latest of the new advertising features Facebook is offering to convince marketers that steering advertising dollars to the company will deliver a payoff.


Facebook, with roughly 1 billion users, has faced a tough reception on Wall Street amid concerns about its slowing revenue growth.


"Measuring ad effectiveness and outcomes is absolutely crucial to all types of businesses and marketers," said David Baser, a product manager for Facebook's ads business who said the "conversion measurement" tool has been a top customer request for a long time.


The sales information that advertisers receive is anonymous, said Baser. "You would see the number of people who bought shoes," he said, using the example of an online shoe retailer. But marketers would not be able to get information that could identify the people, he added.


The conversion tool is specifically designed for so-called direct response marketers, such as online retailers and travel websites that advertise with the goal of drumming up immediate sales rather than for longer-term brand-building.


Such advertisers have long flocked to Google Inc's Web search engine, which can deliver ads to consumers at the exact moment they're looking for information on a particular product.


But some analysts say there is room for Facebook to make inroads if it can demonstrate results.


"The path to purchase" is not as direct on Facebook as it is on Google's search engine, said Debra Aho Williamson, an analyst with research firm eMarketer. But she said that providing information about customer sales conversion should help Facebook make a stronger case to online retailers.


"It lets marketers track the impact of a Facebook ad hours or days or even a week beyond when someone might have viewed the ad," said Williamson. "That allows marketers to understand the impact of the Facebook ad on the ultimate purchase."


Marketers will also have the option to aim their ads at segments of Facebook's audience with similar attributes to consumers that have responded well to a particular ad in the past, Baser said.


Online retailer Fab.com, which has tested Facebook's new service, was able to reduce its cost per new customer acquisition by 39 percent when it served ads to consumers deemed most likely to convert, Facebook said. Facebook defines a conversion as anything from a completed sale, to a consumer taking another desired action on a website, such as registering for a newsletter.


NEW OPPORTUNITIES


Shares of Facebook, which were priced at $38 a share in its May initial public offering, closed Thursday's regular session at $22.17.


In recent months, Facebook has introduced a variety of new advertising capabilities and moved to broaden its appeal to various groups of advertisers.


Chief Operating Officer Sheryl Sandberg said in October that Facebook saw multi-billion revenue opportunities in each of four groups of advertisers: brand marketers, local businesses, app developers and direct response marketers.


Facebook does not disclose how much of its ad revenue, which totaled $1.09 billion in the third quarter, comes from each type of advertiser. Pivotal Research Group analyst Brian Wieser estimates that brand marketers and local businesses account for the bulk of Facebook's current advertising revenue.


Earlier this year, Facebook introduced a similar conversion measurement service for big brand advertisers, such as auto manufacturers, partnering with data mining firm Datalogix to help connect the dots between consumer spending at brick-and-mortar and Facebook ads.


And Facebook has rolled out new marketing tools for local businesses such as restaurants and coffee shops, including a revamped online coupon service and simplified advertising capabilities known as promoted posts.


The new conversion measurement tool is launching in testing mode, but will be fully available by the end of the month, Facebook said.


(Reporting By Alexei Oreskovic; editing by Carol Bishopric)


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Schaub rallies Texans past Jaguars, 43-37

HOUSTON (AP) — Tied in overtime with one of the NFL's worst teams, the Houston Texans turned to their superstar to pull out the victory.

Andre Johnson caught a screen pass from Matt Schaub and ran 48 yards for the winning touchdown as the Texans rallied to beat Jacksonville 43-37 on Sunday.

Schaub threw a career-high five touchdown passes, completed a franchise-record 43 passes and finished with 527 yards in the air, second most in NFL history. Warren Moon also threw for 527 yards for the Houston Oilers in December 1990 against Kansas City.

Norm Van Brocklin holds the record with 554 for the Rams in 1951.

Schaub completed his final 16 passes in regulation time to rally the Texans.

Johnson caught 14 passes for 273 yards, both career highs; the yardage was a team record. The Texans (9-1) won an overtime game for the first time at Reliant Stadium.

Chad Henne threw a career-high four touchdown passes in relief of injured Blaine Gabbert for the Jaguars (1-9). First-round pick Justin Blackmon finally had his breakout game, making seven catches for 236 yards. It was the first time in NFL history opposing players each had more than 200 yards receiving in the same game.

Blackmon caught Henne's pass at midfield, shrugged off two defenders for a stunning 81-yard touchdown with 12:33 left in regulation to put Jacksonville up 34-20.

Schaub then threw two touchdown passes to tight end Garrett Graham in the final 5:39 to force overtime.

Shayne Graham and Josh Scobee kicked field goals in overtime and, for a while, it looked like NFL would have its second tie in two weeks. San Francisco and St. Louis finished 24-24 last week.

Henne threw incomplete on fourth-and-10 from the Houston 47, and the Texans regained possession with 2:30 left in OT. Schaub flipped a screen pass to Johnson, who sprinted untouched down the right sideline for the winning score.

The Texans improved to 2-7 in overtime in their history, while the Jaguars dropped to 0-3 in OT this season.

Gabbert left in the first quarter with a bruised right elbow. Henne looked much more effective against the Texans.

Playing for only the fourth time this season, Henne barely beat a Houston blitz with a throw to Blackmon for a 63-yard gain, then found tight end Marcedes Lewis in the end zone late in the opening period. The Texans hadn't allowed a touchdown since their 43-13 win over Baltimore on Oct. 21.

The Jaguars had 238 yards in the first half, just 26 yards shy of their average output this season.

Henne started the second half with a 39-yard throw to Blackmon, then found Blackmon again to convert a third down to the Houston 30. Scobee kicked a 40-yard field goal to put Jacksonville up again, 20-17.

Arian Foster fumbled and Schaub threw an interception as the Texans looked like they might get embarrassed at home after beating Chicago at rainy Soldier Field last week.

Schaub was flawless in leading the Texans back, though, and Houston had a chance to escape in regulation, but Graham badly hooked a 47-yard field-goal attempt at the end.

The Texans finished with 640 total yards.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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One Direction top British single and album charts
















LONDON (Reuters) – Boy band One Direction topped Britain’s singles and album charts on Sunday, outselling new releases from rock veterans Rod Stewart and the Rolling Stones, the Official Charts Company said.


The English-Irish quintet shot to number one in the album charts with “Take Me Home”, with one of its tracks, “Little Things”, also taking first place in the singles rankings.













Singer Rod Stewart had to settle for number two for his new collection of seasonal classics “Merry Christmas Baby”, while the Rolling Stones were third with their 50th anniversary compilation “GRRR!”.


Also new in the album lists were British tenor Alfie Boe at number six with “Storyteller”, while American punk band Green Day entered in tenth place with “¡Dos!”.


American singer Bruno Mars took second place in the singles charts with “Locked Out Of Heaven”, just ahead of “DNA” at number three from British girl group Little Mix.


(Reporting by Tim Castle; Editing by Will Waterman)


Music News Headlines – Yahoo! News



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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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'Twilight' finale dawns with $141.3M weekend

LOS ANGELES (AP) — The sun has set on the "Twilight" franchise with one last blockbuster opening for the supernatural romance.

"The Twilight Saga: Breaking Dawn — Part 2" sucked up $141.3 million domestically over opening weekend and $199.6 million more overseas for a worldwide debut of $340.9 million, according to studio estimates Sunday.

The finale ranks eighth on the list of all-time domestic debuts, and leaves "Twilight" with three of the top-10 openings, joining 2009's "New Moon" (No. 7 with $142.8 million) and last year's "Breaking Dawn — Part 1" (No. 9 with $138.1 million).

Last May's "The Avengers" is No. 1 with $207.4 million. "Batman" is the only other franchise with more than one top-10 opening: last July's "The Dark Knight Rises" (No. 3 with $160.9 million) and 2008's "The Dark Knight" (No. 4 with $158.4 million).

Though "Twilight" still is a female-driven franchise, with girls and women making up 79 percent of the opening-weekend audience, the finale drew the biggest male crowds in the series. Action-minded guys had more to root for in the finale as Kristen Stewart, Robert Pattinson and Taylor Lautner join in a colossal battle to end the story of warring vampires and werewolves.

"Our male audience particularly has enjoyed this film," said Richie Fay, head of distribution for Lionsgate, whose Summit Entertainment banner releases the "Twilight" movies. "With the action scenes in this one, we're hoping the holdover business will reflect the fact that males have kind of found it out."

The movie also helped lift Lionsgate into the big leagues among Hollywood studios. Paced by its $400 million smash with "The Hunger Games" and now the "Twilight" finale, Lionsgate surpassed $1 billion at the domestic box office for the first time.

Some box-office watchers had expected the last "Twilight" movie to open with a franchise record the way the "Harry Potter" finale did last year with $169.2 million, the second-best domestic debut on the charts.

"I thought that for the final installment, it might eclipse the franchise record, but to look at $141.3 million and say that's a disappointment, that's kind of crazy," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "It's one of the most consistently performing franchises of all time."

The "Twilight" finale took over the No. 1 spot from Sony's James Bond adventure "Skyfall," which slipped to second-place with $41.5 million domestically in its second weekend. "Skyfall" raised its domestic total to $161.3 million.

The franchise's third film starring Daniel Craig as Bond, "Skyfall" began rolling out overseas in late October and has hit $507.9 million internationally at the box office. The film's global total climbed to $669.2 million, helping to lift Sony to its best year ever with $4 billion worldwide, topping the studio's $3.6 billion haul in 2009.

"Skyfall" passed the previous franchise high of $599.2 million worldwide for 2006's "Casino Royale."

Steven Spielberg and Daniel Day-Lewis' Civil War drama "Lincoln" expanded nationwide after a week in limited release and came in at No. 3 with $21 million. Distributed by Disney, "Lincoln" lifted its domestic haul to $22.4 million.

The comic drama "Silver Linings Playbook," released by the Weinstein Co., got off to a good start in limited release, taking in $458,430 in 16 theaters for a solid average of $28,652 a cinema. By comparison, the "Twilight" finale averaged $34,717 in 4,070 theaters.

"Silver Linings Playbook" stars Bradley Cooper, Jennifer Lawrence and Robert De Niro in a quirky romance involving a man fresh out of a psychiatric hospital and an emotionally troubled young widow.

Keira Knightley's period drama "Anna Karenina" also started well in limited release with $315,395 in 16 theaters, for an average of $19,712. The Focus Features film stars Knightley in the title role of Leo Tolstoy's tragic romance.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "The Twilight Saga: Breaking Dawn — Part 2," $141.3 million ($199.6 million international).

2. "Skyfall," $41.5 million ($49.6 million international).

3. "Lincoln," $21 million.

4. "Wreck-It Ralph," $18.3 million ($4.8 million international).

5. "Flight," $8.6 million ($1 million international).

6. "Argo," $4.1 million ($8.7 million international).

7. "Taken 2," $2.1 million ($2 million international).

8. "Pitch Perfect," $1.3 million ($4.1 million international).

9. "Here Comes the Boom," $1.2 million ($2.5 million international).

10 (tie). "Cloud Atlas," $900,000 ($5 million international).

10 (tie). "Hotel Transylvania," $900,000 ($7.8 million international).

10 (tie). "The Sessions," $900,000.

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Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

1. "The Twilight Saga: Breaking Dawn — Part 2," $199.6 million.

2. "Skyfall," $49.6 million.

3. "Argo," $8.7 million.

4. "Hotel Transylvania," $7.8 million.

5. "Evangelion: 3.0 You Can (Not) Redo," $7.5 million.

6. "A Werewolf Boy," $6.8 million.

7. "Cloud Atlas," $5 million.

8. "Wreck-It Ralph," $4.8 million.

9. "Confession of Murder," $3.5 million.

10. "Rise of the Guardians," $3.1 million.

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Online:

http://www.hollywood.com

http://www.rentrak.com

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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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Investors rush in to rent out foreclosures









The foreclosed home on Kenmore Street in Aurora was an outdated, unkempt eyesore until crews arrived this fall, performing thousands of dollars of work to make it attractive and modern, inside and out.


But it wasn't until workers walked across the street to ask for some water that neighbors Mario Cervantes and Oralia Balderas-Cervantes learned that a corporation, not a consumer, had bought the house, intending to turn it into a rental property. Despite being landlords themselves, the couple aren't sure they like the idea.


"If it's going to be a company that is watching out for the community, yes," Cervantes said. "If it's going to be a company that is watching out for themselves, no."





Added Balderas-Cervantes: "I'd rather see a homeowner. A lot of renters don't care. It's like renting a car versus buying a car. It's different."


Similar scenarios and concerns are unfolding across Chicago and in other markets hard-hit by the housing crisis. Well-capitalized, out-of-town private equity funds are scouring neighborhoods, paying cash for distressed single-family homes and renting them out. The opportunities are plentiful, enabling investment groups to profit from low home prices, rising rents and an increase in the number of potential renters.


The transactions are returning vacant properties to active use. But they also are stoking fears among neighbors and municipalities about the long-term effect of large, private investors — including many that are operating under the radar — in their communities.


"This scares the hell out of me," said Ed Jacob, executive director of Neighborhood Housing Services of Chicago Inc. "In this rush to say this is a new asset class, are we creating the next community development problem?


"You talk to them and it's all about neighborhood recovery. They all have the narrative down."


In April, housing research firm CoreLogic named the Chicago area one of the better housing markets for institutional investor funds. It cited the area's large number of foreclosures, which will increase the number of vacant homes, and the estimated rental income relative to the low cost of acquisition.


The general strategy of the companies is the same: buy low, make the necessary upgrades, fill them with tenants and then sell the homes in three to seven years. With companies and analysts anticipating projected returns of at least 8 percent, there also is talk of creating publicly traded real estate investment trusts.


"What this reminds me of is the dot-com boom," said Rick Sharga, executive vice president of Carrington Mortgage Holdings LLC, a California firm whose asset management arm is actively looking in the Chicago market. "That's what this feels like. Every investor in America wants to buy foreclosures and turn them into rentals."


Two statistics increasing that appetite are the homeownership rate and rental rates. Foreclosures, tight lending conditions and wary consumers have pushed down the nation's homeownership rate to 65.5 percent at the end of September, according to census data. Meanwhile, the percentage of vacant rental units has been on a steady decline since 2010 as more people opt for leases rather than mortgages.


Tighter inventories are pushing up rents. As of October, annualized rents in Chicago were up 7.7 percent, more than the national increase of 5.1 percent, online real estate site Trulia found.


But investors aren't flocking to all neighborhoods equally. Most want homes in desirable neighborhoods with strong area employment. They also look at the strength of local rules protecting landlords in disputes with tenants.


After vetting the tenant and securing a lease, property managers say they routinely drive by the homes and sometimes schedule inside inspections to protect their investment.


Weighing risks, rewards


It remains to be seen whether their expectations will be met. One problem with the business model is there's no performance track record to speak of. And as housing prices slowly recover, acquisition costs also will increase and cut into returns.


There also isn't any history on property management firms tasked with overseeing so many scattered-site rental properties. Any well-publicized mistakes involving poorly maintained properties or wronged tenants could taint investors' reputations.


That's one reason why big-name players are likely to avoid buying in neighborhoods where they fear a greater chance of eviction proceedings occurring.


"You make one mistake in those properties and you'll be toast," Sharga said.





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