LEADER LISTING The Leader • Saturday, February 22, 2020 • Page 1B
Proposed mixed-income development in Shady Acres concerns nearby citizens By Betsy Denson betsy@theleadernews.com
Photo by Betsy Denson The site of Polka Dot Dogs, a daycare for dogs, could be redeveloped into an apartment complex.
Starting in May, Houston neighborhoods should see far fewer “Coming Soon” and “Non-MLS Listing” real estate yard signs. The practice of pre-marketing listings before they are officially on the market or publicly listed on the Multiple Listing Service (MLS), which in Houston is the familiar HAR.com, has been commonplace for many years. Similarly, “pocket listings” are homes that an agent can market without ever putting them on the MLS. The rise of mega-brokerages emphasizing technology and branding, along with an increasing push to right past wrongs in equal housing opportunity, has given the National Association of Realtors and the U.S. Department of Housing and Urban Development reason to revisit the broader impact of marketing homes to a limited pool of buyers. This is often done via brokerage websites, neighborhood signs, and targeted advertising. According to real estate broker and owner of Boulevard Realty Bill Baldwin, this practice has always been a dubious way to serve home sellers. “Pre-marketing or marketing homes off the MLS has always been pitched to sellers as being in their best interest for extra or niche exposure, but I would argue that it is the opposite,” Baldwin advises. “It is really in the interest of the listing agent, who is almost always leveraging a pocket listing to pick up buyers.” Effective May 1, MLSs and Realtor associations like the Houston Association of Realtors (HAR) must implement and enforce what is known as a “Clear Cooperation Policy” by which all homes advertised for sale by any agent or broker must be made publicly available on the MLS within one day of being promoted in any way. Baldwin, who is also a member of the HAR task
Contributed photo Boulevard Realty’s Bill Baldwin, right, speaks to real estate agents at 927 Studewood St. Fair housing concerns are central to Boulevard Realty’s training program.
force assigned to implement the policy in Houston, says it has long been the policy of his firm to avoid non-MLS sales. “The main reason a non-MLS sale is a disservice to sellers is because real estate prices are entirely dictated by the market,” he explains, adding, “How can a seller or agent know what a home is truly worth without exposing it to the widest pool of buyers on the MLS? It seems highly unethical to advise a seller to accept any offer without really seeing what the market will yield.” Baldwin further warns of the intrinsic inequality of not immediately listing homes for sale on the MLS. “Marketing a pocket listing to a select group of buyers or realtors is inherently discriminatory,” expresses Baldwin, who devoted a large portion of Boulevard’s annual sales summit for its agents to addressing fair housing concerns, unconscious bias, and anti-discrimination. While the Fair Housing Act of 1968 bans outright housing discrimination and racially selective deed restrictions, Baldwin expresses his concern that limiting exposure places a de facto limitation on who has access to a neighborhood, “It may seem harmless to try to attract the ‘ideal buyer’ without having to go through the hassle of a lot of showings or having the inside of your home virtually open for all to
see, but the reality is that this perpetuates our country’s history of highly unequal housing opportunity.” With HUD’s renewed focus on keeping the housing market as level a playing field as possible, other regulations—like how homes can be advertised using Facebook targeting—have gone into effect as well. While these policies are meant to address more structural market forces in residential real estate, they will have a direct impact on brokerages whose business model relies on having “exclusive” listings or who use that as a tool to entice sellers into listing agreements. After May 1, any Realtor who advertises a listing without reporting it to the MLS may face stiff penalties. At Boulevard Realty, the policy is already in full effect. “At a certain point, we have to focus on what is best for our sellers, home buyers, and our need to have equitable, diverse neighborhoods,” expresses Baldwin. “If it means we have to adapt to what is already a fairly lax regulatory environment when it comes to housing, I think that is a worthy cause.” This article is part of The Leader Experts series, where companies pay for editorial space on topics inportant to the community. If you’d like to be a Leader Expert, contact us at 713-686-8494.
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Boulevard Realty warns against ‘Pocket Listings’ and ‘Coming Soon’ to protect both sellers and buyers
properties, he is representing family members in the possible sale. While Dooley’s concern
Shepherd and Durham,” she said. “None of those developers have engaged with us.” Newport said she was embarrassed by some of the attitudes and “hateful” opinions voiced during the (ITEX) meeting with regard to the lower-income tenants who would be served by the complex. “After that meeting, it was clear that neighborhood consensus wouldn’t be reached, and we declined to provide a letter of support (to ITEX),” she said. Resolution of support Kamin said that fair housing regulations do not allow the city to withhold support from applications simply because they lack community support. “(It’s) quite the contrary, withholding support could not only go against the city’s voluntary compliance agreement with the U.S. Department of Housing and Urban Develop-
235 W. 22nd, $780s Amanda Anhorn, 713.256.5123
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clubs, nonprofits, HOAs, so community engagement is in the developer’s interest,” Newport said. The meeting with ITEX took place Tuesday, Feb. 11. Newport said Dooley reached out to her, and Newport invited Dooley to attend. “I hate to see her business displaced,” Newport said. “I was surprised that her landlord hadn’t previously informed her of the market listing and potential sale.” Harris County Appraisal District records list Yaggi Real Estate Partners LLP as the longtime owner of both 2505 Ella Blvd and adjacent 1706 W. 26th St., which is the address for the ITEX development. The total appraisal for the two properties is about $1.5 million. Preston Yaggi, of Lee & Associates, said that although he does not own the
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Community Affairs (TDHCA), which looks at a variety of factors in the application process. One of these factors, according to newly elected District C council member Abbie Kamin, is municipal support. “Developers seeking the City of Houston’s support must submit an application to the city’s Housing and Community Development Department,” Kamin said. “The department evaluates the applications on various criteria including access to public transportation, economic opportunity (and) strong schools.” Kamin said the application must meet a minimum of eight criteria, out of a possible 24, to receive a resolution of support. “The tax subsidy criteria awards points for community letters of support, from civic
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Oak Forest’s Susan Dooley, the owner of dog daycare Polka Dot Dogs, has leased her 2505 Ella Blvd location for a decade and enjoyed success there. So it came as a blow when one of her customers told her about a developer’s intent to purchase the land that included her business location. A subsequent talk with a representative for her landlord confirmed what Dooley had heard. A subsequent talk with her landlord confirmed what Dooley had heard. The developer, the ITEX Group, is proposing a mixedincome, 180-unit project at 1718 W. 26th St., according to ITEX Director of Development Ali Morris. The working plan is for 55 percent of those units to be offered at discounted rates to those below a certain income threshold while the rest would be market rate. “We want (the development) to look and feel like the neighborhood,” Morris said. Shady Acres Civic Club board member Allison Newport said former District C Houston City Council Member Ellen Cohen referred ITEX to her as a contact and that the board met with ITEX in January. “The developer was interested in getting design input, and (learning) how they can help the neighborhood, both of which are amiable goals,” Newport said. Because ITEX is seeking to build affordable homes, it can apply for 9 percent federal tax credits funded by the Texas Department of Housing and
was the closing of her business, others at the meeting voiced concerns about the nature of the development itself. “I hoped that after voicing displeasure about the potential change, our neighbors would eventually embrace the unique opportunity to provide design input and appreciate the community benefits offered by ITEX,” Newport said. These benefits included unifying signage for the area as well as other proposed improvements. “I liked that (ITEX) said they’d be willing to help with Little Thicket Park,” civic club president Dena Musfy said. Newport said that since she’s been active with the civic club, there has been no other developer that has proactively engaged with it about a proposed project. “There are multi-family developments at 23rd and Beall, 26th and Durham, and several more in the works along
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403 Auroa, $500s Alex Berry, 713.480.2213
203 E. 23rd, $500s Amanda Anhorn, 713.256.5123
5334 Darling #B, $350s Jason Knebel