An Important Note About Mortgage Defaults

Yes, it is a powerful force in our market -- particularly in a community like Laveen, where we have grown so rapidly in the last five years, and then seen our property values decline due to foreclosures and short sales.  Those housing bubble years are having a devastating impact on our home values, as has been officially reported by the Maricopa County Assessor.

But another debate has also arisen out of this situation, and that is whether it is acceptable to strategically default on a home loan that you could otherwise afford but choose not to any longer.  Recently, a UA law professor wrote a paper titled "Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis," which raised the question of why more Americans are not behaving in their rightful economic best interests.


I find this debate absolutely fascinating, and furthermore see it as the necessary dialog that can foment a true recovery,  not just reestablishing growth but also promoting the right kinds of value-creating behavior for a sustainable economy.  That's why I've started cataloging my various discussions on the matter over at my other oft neglected blog.  Please click the link and let me know your thoughts on the matter.  There's some great stuff there, including links to the Motley Fool's compelling coverage, along with that of ABC News and our own AZ Republic.

Flood Concerns for Laveen?

Here's the deal; I'm probably being paranoid about this, I know..... I worry about Laveen's preparedness for the amount of flooding that could occur this week. Yes, we have the LACC (Laveen Area Conveyance Channel) and other flood retention measures in place, but what about the amount of water that our soil and flood retention basins accumulated already this week; and what about potential bottlenecks on street drainage systems or potentially defective retention measures (which we have already seen here during past storms) among all the other things that could go wrong?

Remember, most of Laveen sits on relatively low ground, and within the typical floodplain of the Salt River, not to mention the Tres Rios confluence just west of us. This is why our county and city officials took the initiative to complete the LACC project and others like it in recent history, as Laveen's population has boomed. Just ask any long-time resident to hear some interesting stories of past flooding.

Further, we may or may not experience unprecedented levels of rainfall in the next 48 hours, combined with rising river levels due to rapid snow melt in the high country.  And I have not been able to find much specific advice for our community, which is a little frustrating....  After all, the storm a couple of weeks ago brought the gutter run-off above the sidewalk in front of my house, and last year I recall watching our water retention basin nearly fill up from a less severe storm.

So to ease all our minds, I offer the following resources:

• WEATHER.GOV/PHOENIX 
  

• Local news coverage about the potentially unprecedented rain and flooding: Channel 3 video.
• Where to pick up free sandbags from the City of Phoenix, if needed: City of PHX site.
• What to do with the sandbags, if you decide you need them: eHow article.
  
• Information about the LACC and other "big" measures to stop flooding: Image and details.
• Info from Maricopa County Flood Control District: MCFCD site.
• Arizona's Flood Warning and Drought Monitoring: AFWDS site.
  
• Historic flood info: USGS website.
• FEMA's flood preparedness advice: FEMA site.

***Bonus recommendation in case there are no sandbags at the free pick-up locations referenced above: Try Home Depot or Lowe's.  If that fails (like finding anything else in Laveen at the moment that we all need it, i.e. propane cylinders on July 4th), then I bet you could justify borrowing some sand from a nearby playground and returning it after the flood recedes.  And by the way, medium trash bags work at least as well as the big burlap ones; you just need more of them.

Please feel free to pass along this information to anyone who you think may need it, or feel free to keep it around as a resource for the next hundred or so years, in anticipation of an eventual 100-year flood (it's not really like nature is on a schedule.... here's a definition of a 100-year flood).  In the likely event that this information is totally irrelevant, then I simply request that you understand how much I love to geek out on information and preparedness.

Phoenix Drinking Water

There's never been a better reason to discard that expensive and environmentally insensitive bottled water habit that I know most of my friends suffer. Sure our water doesn't taste as good as several places I've visited on the east coast and elsewhere, surprisingly including none other than dirty ol' NYC, but it's pretty darn good.

I'm happy to say that Phoenix Municipal water meets and exceeds all regulatory requirements -- at least as far as I could discern from the recent EWG report. Add to that the fact that we use a Brita filter in my home and Phoenix is working diligently to address the remaining aesthetic concerns, and I'm even more pleased (despite recent memory of several ground well failures). How do I know this? Here's a link to the EWG report: http://bit.ly/77xp2R

And then there's the Phoenix.gov page: http://bit.ly/89koMb

Frankly, I thought that the City of Phoenix's water department was quite straightforward in addressing my most basic concerns. It would be even more refreshing if we dedicated resources to demonstrating greater leadership in water resource management, being that we're in a desert and all..... but then there's the whole funding issue, not to mention the fact that we're not usually regarded as the most progressive place on earth. But I digress.

AZ isn't totally off the hook for water safety. I was surprised to learn coincidentally that the Granite Dells area near Prescott is listed alongside Verde Valley, Tucson, and Cave Creek as hot spots for natural radon contamination (but not Laveen as far as I know). This is good news for me, since I harbor fond memories of playing around in the Dells area as a child, and would like my son to see the area in nearly as pristine a condition as the two generations of family before me could enjoy it.... not surrounded by subdivisions. But again, I digress. Read more about radon and Arizona's other environmental hazards here: http://bit.ly/6rh4Uh. And if you are an info geek like me, then I'm sure you'll enjoy browsing the rest of the AZ Geo site. No, we have no major earth fissures in Laveen that are reported. And yes, there is gold in them there hills.... maybe. There, I just saved you a bunch of time. You're welcome.

Interim Post: Update on Laveen Farmers Market

I have been laboring over an official New Years post between online poker hands and other miscellany for the last two weeks, but thought it was important to get this out in the mean time. I figure that no one can criticize me too much about a belated New Years post as long as it comes out in January, right?

So here's the latest info about the much discussed, but surprisingly nonexistent farmers market:

It's been a while since we had any news about the Laveen Farmers Market, so I thought I would provide a brief update. While I haven't had much of a chance lately to investigate potential farmers to participate, I/we have gotten some feedback from a few people we contacted.

McClendon's Select Organics, featured participants in the Scottsdale and Biltmore area farmers markets, politely declined to play a part in ours. I had a very informative yet frank conversation with the owner about their reasoning, which basically came down to the fact that farmers markets tend to get in the way of their most profitable business; selling to restaurants and other wholesale clients. He was very polite about his explanation, so I asked if he had any other ideas. No dice, but we'll keep trying.

Also, I'm not sure if this was already mentioned, but Krag Klages, our LCC president, spoke with the people at Grandma's Farm. They too declined for now, due to the fact that they are planning their own retail concept on their property (South of Baseline on 19th Avenue). This is disappointing in that they were by far our most local lead, but also exciting in that it means they're planning a considerable improvement to their existing business. We definitely need to keep them on our radar, so any help with this would be much appreciated.

Hopefully we'll have another update soon. Please also do your part if you come up with any ideas. And by the way, all ideas are worthy of consideration. Until we have a farmer or two, there is no farmers market, and thus no formal leadership. My thinking is that this is a free-for-all until we get something going, at which point we can sort it all out. Any other thoughts? Please share.

DiCiccio and the Loop 202: Is There a Story Here?

A friend forwarded the following email from Phoenix Councilman Sal DiCiccio this morning.  My reaction follows, and yes I am a little more skeptical of Mr. DiCiccio now than ever before.

Governor, others boost 202 alternative momentum

Momentum has swung strongly toward exploring an alternative to the Pecos Road South Mountain Loop 202 alignment on the Gila River Indian Community thanks to powerful letters of support from Gov. Jan Brewer, House Majority Leader John McComish and Congressman Harry Mitchell plus hard, cooperative work by many players.

As you know, I've been a strong proponent of an alternative to the Pecos Road alignment.  My office has been working tirelessly to get all parties to communicate to see if there could be a win-win for all.  I've maintained that another alignment would save taxpayers' money, preserve South Mountain, provide opportunities for GRIC, and maintain neighborhoods and homes.  We've since learned that perhaps $200 million in construction/engineering also might be saved.

The way for such a win-win solution to be accomplished is when all parties work together, which I'm happy to report is occurring. The best example was the Dec. 7 meeting at the Maricopa Association of Governments attended by me, MAG, the Arizona Department of Transportation, federal highway officials, GRIC, the BIA, two congressional offices and others.  The first time, all stakeholders sat in the same room and talked things through like that. The result was a general agreement that GRIC would formally indicate its willingness to consider a proposal and that MAG and ADOT would pursue it. Gov. Brewer, in her letter to GRIC Gov. William Rhodes, pledged the full engagement of the Arizona Department of Transportation in working with the GRIC to develop a SM202 alignment there (see attached letter).

Other 'never-quit' players have been working behind the scenes for the past nine months on this, including Chad Blostone and Mike Hinz of Ahwatukee, two local HOA board members and worker bees who have kept this alternative issue alive so it could reach this point. When very few people believed such an outcome possible, they doggedly worked at it, helped us uncover information, develop relationships and drive momentum.

A huge lesson for all of us, one that should ring much louder in these difficult times, is what innovation and results can come from working together.  Look at all the different communities, levels of government, primary missions and cultures that share in this accomplishment. It included federal, state, city, MAG  . . . and HOAs and community ad hoc committees. It's the Gila River Indian Community, suburban Ahwatukee and the folks in downtown Phoenix. It's neighbors, engineers, elected officials, agency heads, community activists, Democrats and Republicans.

To keep this momentum moving, your help is needed also. Please forward this and the letters from Gov. Brewer, Congressman Mitchell and Majority Leader McComish to your email list plus other interested parties, encouraging them to add their voices to encouraging this exploration of alternatives by calling or writing their elected representatives, community leaders and newspapers to support it.

Please sign onto sm202.com/ and leave your email so we can update you as developments occur, or email it to council.district.6@phoenix.gov.  Also, please feel free to forward any of this information to any other concerned parties.  We look forward to your opinions and feedback.

Thank you all again for your effort.

Councilman Sal DiCiccio
Phoenix City Council District 6
602-262-7491

Council.district.6@phoenix.gov

Getting Involved in the Community

Here's an interesting article from the Arizona Republic about overall civic engagement in Arizona: http://www.azcentral.com/arizonarepublic/local/articles/2009/12/17/20091217morrison1217.html.  While it makes a pretty clear case for Arizonans not being engaged enough in volunteer efforts, charity, or even that most basic American right and responsibility, voting, I'd like to believe that we in Laveen are well above this average.  Not to mention, I wonder if the polls that were used in the research take into account some of the more opaque but nonetheless great activities that we have to offer in our community.

As I type this, Catherine is off to a cookie exchange with one of the two local moms groups with which she regularly participates.  While this is not exactly what most would consider a volunteer/charity event, I think it's important to consider the positive social role such groups play in our community by connecting neighbors with similar needs.  It's sort of like the blockwatch that a few neighbors and I created in our neighborhood in that we want to facilitate neighborly relations more than ever, given the negative trends that seem to have appeared elsewhere in communities where I've lived.  We want better and we're willing to work for it.

Here are a few other examples I've observed in our community:  I not only serve on my HOA board of directors (as many do in their HOAs), but have also represented us in the Laveen Association of HOAs.  And more recently, I have dedicated more time to my involvement with the LCC and on the Laveen Village Planning Committee.  Then there's the LPC/LCRD, Laveen Lions, Friends of the Library, Laveen Art League, and even the Laveen School District's governing board and the various PTSAs.  Each of these groups is very community focused in its own way, and they seem to each attract a slightly different subset of people interested in helping their community.  Also, each of these groups has shown incredible ability to affect positive change for Laveen as they support each other and raise funds for those who need them--such as our community sports groups, scholarships for our students, and similarly worthy efforts to help those in need.

And by the way, I'm totally omitting things like our planned farmers' market (search for it on Facebook) and the proposed Laveen Economic Development Council, both of which will emphasize strengthened sustainable commerce in our community (and also both lagging in moving forward--more about that later).  And then there are the organizations that cross boundaries into Laveen, such as the South Mountain/Laveen Chamber of Commerce, which has done excellent things for our community and its businesses, or the South Mountain/Laveen Village Festival Committee, which hosts great events for our families every year.  Also, let's not forget the churches, boy scout troops, and the many, many others who make this a great place to live (including even our local newspapers South Mountain District News and South Mountain Villager).  And I know several people who partake in their own pet projects around the metro Phoenix area (like Lisa Doromal's Dress for Success), and we'll claim those as well.  I'm certainly omitting several other important people and organizations here, but hopefully you can find mentions of them elsewhere on this blog, or else please let me know.

My point in listing every one of these groups is that they are certainly small and therefore may fly under the radar when outside pollsters try to evaluate our civic engagement, but they are incredibly accessible and influential, as community organizations ought to be.  Plus, the sheer number of volunteers who take part in these organizations' efforts really should prove other than the old 80-20 rule (aka Pareto Principle).  Sure, there are only so many people with the time, inclination, and energy to lead the efforts, but we've all seen the uprising of support whenever there's a community event or a call to action (see for instance the Loop 202, school bonds, or our zoning battles as great examples).  So I urge my fellow Laveen residents to stay involved and take pride in bucking these negative trends.

P.S.  Since our modern culture seems to be very sensitive to political discussion, I saved this part as an important afterthought to the main discussion.  You should also know that we have a few very active political groups in our community, and politics is a wonderful means by which we can all make the cogs of our system turn.  I urge my neighbors to engage in frequent and lively political debate in every appropriate forum possible, and hence learn the forgotten art of influencing policy for our benefit rather than just seeing and experiencing its effects.  As a Canadian coworker recently commented when we discussed our CEO's controversial political commentary at a meeting, "Isn't that what once made America great--that people could freely discuss their views?" 

For your reading pleasure, here are a couple of viewpoints about how political discourse factors into our modern society: Here and here.  Here's an entertaining bit of satire on the subject.  And then there are the hazards of our political discourse becoming increasingly noisy and vicious: here, here, and here.  But I have an idea: let's discuss every way in which we want to improve our society, keep it civil, and try to respect independent thinking and intellectual curiosity.  I've always believed that contrary to the most conservative modern etiquette guidelines, you should prepare to discuss politics when in my personal space and it is my right to live by this policy (work is a slightly different story for most, but I mean at home, at a restaurant/bar, or while out and about).  And guess what, I still have tons of friends on Facebook (and yes, in real life too), where I have been known to toss out random politically charged URLs, etc.  Many of my friends disagree with me on important issues, but as long as they have a difficult time pigeonholing me into a particular group and view me as being tolerant of opposing views, they seem to tolerate my attitude well (not to mention that anyone who knows my family knows that this is a hereditary trait, so they may just pity my helplessness in the matter).

New Loop 202 Update

I think my comment on the following story's comments section says it all: http://www.azcentral.com/members/Blog/PHXBeat/69689

Let's hope that this freeway begins moving forward sooner rather than later....