How spooked is California’s housing market? 12 factors to watch

• October 27, 2023

A witches’ brew of economic forces is stirring unnerving thoughts about what’s next for California’s homebuying market.

One particularly ghoulish factor in these spooky times is that most Californians can’t afford to buy a home in the state – whether they are a first-time house hunter or an owner looking for a new place.

That’s largely due to a scary reversal of mortgage rates, which have risen to 23-year highs, less than three years since we saw record lows.

Yes, prices have not cracked and remain near record highs.

Still, these gut-twisting gyrations walloped the pace of statewide home sales, which are eerily slow and run 35% below average this year.

Forecasting California’s homebuying future requires a peek into a spine-chilling concoction of market forces that may not mix well.

Remember, housing’s history is filled with painful memories of the Great Recession and the very gloomy days of the early 1990s.

But any California outlook means pondering a potentially haunted house with a dozen real estate characters lurking.

No. 1 Central bankers: The scariest thing about the Federal Reserve has been its resolve to fight the worst bout of inflation in 40 years. Driving up interest rates – notably home loans – “higher for longer” to cool the overheated economy has iced homebuying. Spooky stat: A borrower’s buying power has shrunk by 45% from its peak when mortgage rates fell to 2.65% in January 2021.

No. 2 Lenders: It’s frightening to see the pullback in mortgage-making. Loans counts have tumbled as layoffs multiplied. Meanwhile, lenders seem fearful. So borrowers face increased qualification standards. Spooky stat: The Mortgage Bankers Association’s Credit Availability Index this summer hit an 11-year low.

No. 3 Bond traders: This normally anxious flock seems extra antsy. To protect their mortgage investments from inflation’s ravages, they’ve demanded premium rates to keep funds flowing to homebuying. Spooky stat: Thanks to rising rates, mortgages as an investment have lost 8% of their value this year – and 20% over three years.

No. 4 Investors: It’s spine-tingling to think how dark homebuying might be without this often-derided slice of the market. But how long can deep-pocketed investors keep buying amid market turmoil? Spooky stat: 34% of California home purchases in the second quarter were made by investors – the highest share in the nation, according to CoreLogic.

No. 5 Owners: The move-up market is a ghost. This group is petrified of selling because they likely can’t afford to buy another home – an inability to move which cuts demand and supply. Spooky stat: California listings have run below 2022’s slim pickings for five consecutive months, says California Association of Realtors.

No. 6 House hunters: Jittery first-time homebuyers are staring down an unsettling clash of lofty prices and low affordability. Plus, there’s worry high rates could stick around and limit future refinancing savings. Spooky stat: Only 32% of Californians could qualify to buy in the second quarter – the lowest level in 17 years, a Realtor starter-home index shows.

No. 7 Builders: The ghastly cold market for resale homes created opportunities for sellers of new construction. But developers have run into various shortages – materials, labor and land to build. Spooky stat: How short are builder supplies of property lots? San Diego (71% below normal), Los Angeles-Orange County (66%), San Francisco (48%), and the Inland Empire (46%).

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No. 8 Landlords: Soaring rents pitchforked folks into ownership two years ago. But 2023’s fears of empty rentals nudged apartment owners to chill their pricing – motivation for tenants to stay put. Spooky stat: California rents were rising at a 16% annual rate as recently as April 2022. In August 2023, they were falling at a 2% yearly rate.

No. 9 Employers: Jobs drive homebuying. And a strong hiring pace has helped keep the California housing market stable. But bosses now seem skittish and slowed staffing growth. Spooky stat: California hiring is off 10% this year.

No. 10 Consumers: Shoppers’ overall psyche is the bedrock for homebuying. And that foundation seems a tad creeky of late amid a host of economic and political tensions. Spooky stat: California’s future looks 15% gloomier over the past year, according to the Conference Board’s consumer confidence index.

No. 11 City planners: California’s horrifying inability to build enough housing seems like a never-ending nightmare. Getting residential projects through local approval mazes remains daunting. Spooky stat: California is home to 11 of 25 US metropolitan areas with the largest housing shortages.

No. 12 Movers: The hair-raising cost of California living is pushing residents out and scaring off potential relocations to the state. Perhaps that exodus lessens congestion and helps a housing shortage short term. It could strangle the state economy long term, too. Spooky stat: In 2021-22, California lost 1.65 million residents to other states but only 900,000 people moved here.

Postscript

Want to see just how “spooked” you are by these dozen housing worries?

Take our online “Spooky Housing” quiz at bit.ly/spookyhousing to gauge your real estate anxieties.

By the way, my score was 50% – so let’s just say I’m half-spooked!

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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​ Orange County Register 

ADU loan program has $100,000 for OC homeowners who rent to low-income tenants

• October 27, 2023

On Oct. 14, Gov. Gavin Newsom signed Assembly Bill 1033, paving the path for additional dwelling units to be sold separately from the primary residence, creating two-unit condos.

This week, I’ll dive into how homeowners can finance the construction of an ADU.

While there are myriad ways to finance such construction, at the top of my list is the Orange County Housing Finance Trust. The nonprofit’s program — which came online Oct. 24 and is only for Orange County homeowners — finances construction loans for up to $100,000. And there are no monthly payments. Homeowners won’t need to make any interim payments, either. What borrowers will face is a balloon payment 20 years later.

So, what’s the catch? Owners must rent the ADU to very low-income tenants for the first 10 years.

The trust also says that if you follow the rules (renters’ income must be less than 50% of the area median income), you could see almost half, or 48%, of your debt forgiven, assuming a $100,000 original loan.

There is no formal mortgage qualifying required either.

“There is no income evaluation,” said Amanda Grill, compliance manager at Orange County Housing Trust.

The trust was founded in 2019 between participating cities and the county. Its purpose is to support the homeless population and those who are living with extremely low incomes. Non-participating cities include Brea, Cypress, La Palma, Laguna Woods, Los Alamitos, Rancho Santa Margarita, San Clemente and Villa Park.

“We’re a government bank,” said Adam Eliason, trust manager at OC HFT. “We’re not here to advise on loan qualifying. We don’t want the liability. We approve applications for funding.”

The accruing interest rate on the construction financing is zero to 3%. For any period in the first 10 years in which the tenant falls outside the very low-income parameters, the borrower’s accruing interest rate will be higher. For example: a tenant with a Section 8 housing voucher means the borrower’s interest rate would be zero. If the tenant is within the low-income limits but without a voucher, the interest rate rises to 3%.

Homeowners must submit lease information to the trust. Annual audits are performed by HFT to validate the information.

Examples from the trust’s lending brochure offer tenant examples including a parent, child, new neighbor, an old friend, or a voucher-holder.

In a nutshell, if you want this nearly free money offered by the trust, it’s best to rent to a very low-income tenant. And owners must occupy the primary home to qualify.

More information and financing programs for Southern California homeowners can be found at housingsocal.org, according to Eliason.

It’s worth noting that an ADU from the ground up will likely cost a homeowner much more than $100,000. That means more complex financing for most homeowners.

ADU construction costs range broadly from $350 to $400 per square foot, according to Mark Lefitz, vice president of business development at EZ Plans. And those costs depend on whether the new construction is attached or detached from the primary residence, garage conversion, lot flatness or not, etc.

A 1,000-square-foot ADU at $400 per square foot might cost $400,000. Homeowners will likely need to string together several financing sources. Savings, borrowing from a retirement account or a securities account, home equity lines-of-credit or perhaps the bank of mom and dad.

There are other ADU institutional construction financing programs available but they come with subsidized money like the Orange County Housing Trust For example, there’s the FHA 203(k), Fannie Mae Homestyle, Freddie Mac Choice Renovation and USDA Renovation, all of which have some financing available for ADUs.

And what about VA loans?

“Due to the unique nature and complexity of the bill (AB 1033), it will take some time for the Loan Guaranty Service to analyze the impacts from policy and legal prospectives,” said VA press secretary Terrence Hayes (in part) via email. “VA is working diligently to address this matter.”

Excluding the no-income qualifying Orange County Housing Trust program, if you struggle to qualify for ADU/condo construction financing, private money might be the road to go.

Sandy MacDougall, CEO and founder of Mortgage Vintage, points out that homeowners can much more easily qualify to build an ADU using hard money loans because it’s an owner-occupied business purpose loan.

The combined loan to value or CLTV caps out at 65% on a second lien, according to MacDougall. For example, a homeowner’s first mortgage balance is $500,000 and they are securing a private second loan for $250,000. Your home is worth $1.2 million. So, the $750,000 loan total divided by $1.2 million value equates to 62.5% CLTV. That math works.

“We do ask for a couple of months of bank statements only to analyze the borrower’s ability to repay,” said MacDougall. “We are less FICO sensitive.”

Terms are 12-24 months with 2 points cost plus a $1,995 underwriting fee (each 1 point is 1% of the loan amount). The second mortgage rate is 12% to 14.5% depending on credit and CLTV, MacDougall said.

Let’s say the construction is completed and now you want to do the condo conversion.

Very briefly stated and overly simplified, you will need to go to your city’s building department to get a detailed list of what it requires to create the condo association and the legal condo unit entities. I’d sanity-check everything through a sharp real estate lawyer.

If you have mortgage liens, you may find yourself in an untenable situation of trying to clear the mortgage liens and change the legal vesting requirements. In other words, the original mortgage encumbers all of the land and all of the dwelling(s) built on it. When a homeowner splits up a property (say, for a two-unit condo) they cannot split up the loan. The lienholder could foreclose on the borrower for violating the note terms. Therefore, owners have to get separate financing.

The good news is Fannie and Freddie allow two-unit condo financing. So, you could get your legal documents in order with the city. Consider paying off any existing mortgages with two separate first liens on the two units.

No matter what else, find a knowledgeable mortgage professional to advise you.

My next column will dig into California’s lot-splitting laws which are required to separately sell your ADU and its lot.

Freddie Mac rate news

The 30-year fixed rate averaged 7.79%, 16 basis points higher than last week. The 15-year fixed rate averaged 7.03%, 11 basis points higher than last week.

The Mortgage Bankers Association reported a 1% mortgage application decrease compared to last week.

Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $726,200 loan, last year’s payment was $352 less than this week’s payment of $5,223.

What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages with one point: A 30-year FHA at 7.125%, a 15-year conventional at 7%, a 30-year conventional at 7.5%, a 15-year conventional high balance at 7.875% ($726,201 to $1,089,300), a 30-year high balance conventional at 7.875% and a jumbo 30-year fixed at 7.75%.

Note: The 30-year FHA conforming loan is limited to loans of $644,000 in the Inland Empire and $726,200 in LA and Orange counties.

Eye catcher loan program of the week: A 30-year adjustable, interest-only and fixed for the first five years, rate at 7.75% with 1 point cost.

Jeff Lazerson is a mortgage broker. He can be reached at 949-334-2424 or jlazerson@mortgagegrader.com.

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​ Orange County Register 

‘I just want peace’: Vigil held in Irvine for victims of the Israel-Hamas War

• October 27, 2023

Two hundred chairs, filled only with photos of the Israeli hostages taken by Hamas earlier this month, sat on a busy Irvine intersection Thursday evening.

Peppered among them were several strollers, representing the children kidnapped by Hamas.

“This entire situation is deep-rooted and complicated,” said Aaron Recter, an Irvine resident. “My main focus right now is on the innocent children who have lost their lives to this. As a father myself, I could never imagine the pain and hurt these families are feeling.”

The vigil took place at the corner of Culver Drive and Alton Parkway on the evening of Oct. 26, with about 100 people of all ages in attendance.

Many carried large Israeli or American flags in their hands. Attitudes were somber as shouts rang out with the names of the lives taken in the ongoing Israel-Hamas war, but some were angered and upset over the events that have unfolded.

Genna Kirta, an Israel native, said all she wishes for is peace.

“It is unimaginable seeing your people experience this,” she said. “My hope is for calmness, for reconciliation and ultimately for the people causing terror to receive justice for their actions. Who knows when and how that will take place, but all I want is the people wrongly affected by these actions to be saved and out of harm’s way.”

A consistent stream of honks came from the cars passing by the intersection; some people even hung out of their vehicles to shout in support.

“I am thankful that this event was organized,” said attendee Michael Broder, who was in tears. “It gives the people who may not be too familiar with the Israeli perspective a chance to see the impact that this war is causing.”

“I get that there are two sides to the story, but my heart stands with those who have had family members pass or hurt,” he said. “My heart stands with the children who have been taken from this world. My heart stands with the 200 chairs that are placed on this corner.”

The event was organized by the Orange County chapter of the Israeli-American Council. Rallies for Israel organized by the IAC have been held coast to coast following Hamas’ attack on Israel earlier this month, the deadliest one in decades.

Hamas militants launched a surprise attack on sleepy Israeli towns on Oct. 7 from the blockaded Gaza Strip. A stunned Israel ordered a complete siege on the Gaza Strip, launching waves of airstrikes on the Hamas-ruled territory.

More than 1,400 people in Israel have been killed — mostly civilians slain during the initial Hamas attack, the Israeli military said this week — and an estimated 200 people were kidnapped and are being held captive by Hamas in Gaza.

Additionally, more than 7,000 Palestinians have been killed during the war, according to the Gaza-based Health Ministry, the only official source for deaths in Gaza.

Stephaney Avital, a Newport Beach resident and member of Orange County’s Jewish community who helped put together the rally, said the point of the vigil is to keep the kidnapped men, women and children at the “forefront of people’s minds.”

“We’re trying to keep awareness of the 200+ kidnapped victims that are in Gaza still because we feel like the international community is not giving it the attention it needs or not taking it seriously to get these people out of Gaza,” Avital said. “And so here in Orange County, we’re feeling helpless.”

Tragically, she and her husband, Asher Avital, have a deeply personal connection to the Israel-Hamas war. One of Asher Avital’s cousins, 33-year-old Or Levy who attended the Supernova music festival in the Israeli desert on Oct. 7, is missing. Or Levy’s wife, 32-year-old Eynav Levy, was killed at the festival.

Or Levy holds an executive role at a technology company. Eynav Levy was a product designer. They were just two people who wanted to live their lives, have fun and listen to music, Asher Avital said.

“They had dinner with their parents the night before leaving for a day of fun, to spend time with friends and listen to music,” said Asher Avital. “Or and Eynav were hiding in a bomb shelter with maybe 20 or 30 people. And the Hamas terrorists kept throwing grenades inside.”

“And you can imagine what happened,” Asher Avital said.

The family thought it would be a matter of hours before they heard about Or Levy’s death, Asher Avital said, but Israeli military officials informed them that they thought he was kidnapped. They had located Or Levy’s phone in Gaza, Asher Avital said.

“We need our men, women and children returned from Gaza. That’s the whole point of doing this,” said Stephaney Avital.

The Israeli-American Council is a group that spans over 22 regional offices, 73 communities and 104 campuses, each with the goal to engage a “coast-to-coast community that strengthens the Israeli and Jewish identities of our next generation.” The council began in 2007 and has been expanding ever since — the Orange County chapter was founded in 2018.

The organization’s mission, according to its website, is to “build an engaged and united Israeli-American community that strengthens the Israeli and Jewish identity of our next generation, the American Jewish community, and the bond between the peoples of the United States and the State of Israel.”

The Associated Press contributed to this report. 

​ Orange County Register 

Peter Shea Sr., co-founder of multibillion-dollar construction company, dies at 88

• October 27, 2023

Peter Owen Shea Sr., the last survivor of three engineers who built a multibillion-dollar construction and homebuilding business in their grandfather’s name, died Monday, Oct. 23, at his Newport Beach home after a “fierce and courageous fight” against Parkinson’s disease. He was 88.

Shea had served as vice president of Walnut-based J.F. Shea Co., the successor to a plumbing and heavy construction firm his grandfather, John Francis Shea, founded in 1881 in Portland, Oregon.

A company statement said Shea was most comfortable in khaki pants, a buttoned-down blue shirt and muddy boots, which he used to walk construction sites.

“While Peter was a man of few words, he enjoyed connecting with people and deeply valued gathering with family and his loyal community of golfing, bridge-playing, or neighborhood friends,” the company said.

The original company was a leader in the construction industry that worked on the Golden Gate Bridge, the San Francisco Bay Bridge, the Hoover Dam and the Interstate Highway System.

In 1961, Shea joined his cousin John Shea and older brother Edmund Shea Jr. as co-owner of the newly dissolved and reincorporated J.F. Shea Co. Shea later served as president of the conglomerate’s heavy construction subsidiary, J.F. Shea Construction, focusing on tunneling and large infrastructure projects.

In the following years, J.F. Shea Co. branched out into homebuilding, commercial real estate development and venture capital investing.

Founded in 1968, Shea Homes built more than 123,000 homes in 11 states, according to the company. Builder Magazine’s latest ranking listed the Los Angeles County company as the nation’s 27th biggest homebuilder in 2022, with 3,428 homes sold and $2.98 billion in total revenue.

The family’s commercial real estate arm, Shea Properties of Aliso Viejo, owns and operates about 10,000 apartments and 6 million square feet of office, industrial and retail space in California, Colorado, and Washington, the company’s website said.

In 2015, Forbes magazine estimated the Shea family’s combined fortune was $2.5 billion.

Peter Shea outlived his two founding partners. Edmund died at his San Marino home in August 2010 at age 80. John, a Pasadena resident, served as J.F. Shea’s chief executive officer, and then as board chair until he died at age 96 in October 2022.

Shea’s son, Peter O. Shea Jr., succeeded John as company CEO.

Born May 29, 1935, in Los Angeles, Shea was the fourth of five children. His father, Edmund Sr., supervised the construction work on the piers for the Golden Gate Bridge before the family moved to Los Angeles shortly before Shea’s birth.

Shea attended Loyola High School in Los Angeles, then earned a degree in business at UC Berkeley and an engineering degree from the University of Southern California.

He grew up around the family business’s construction sites, spending his summers on dam and tunnel projects, working as a driller’s assistant and miner on several tunnel projects.

J.F. Shea tunneling jobs included work on underground stations and Berkeley Hills tunnels for the Bay Area’s BART system, according to the company. The firm also did tunnel work for the Washington D.C. Metro.

Shea served on various construction industry and community organizations, including the Association of General Contractors board and the board for the Paul Merage School of Business at UC Irvine.

“Peter was a very kind, smart, and humble man,” said Shea Homes President and CEO Bert Selva. “He was also very quiet, but when he did share his thoughts, it was always incredibly valuable insight that was spot on. He was a great man and we will really miss him.”

Shea is survived by his wife, Carolyn; daughters Sarah and Catherine Shea Johnson; son Peter Jr.; sister Mary Elizabeth Callaghan; brother Henry; eight grandchildren and two great-grandchildren.

A memorial service will be held at 2 p.m. Nov. 11 at Our Lady Queen of Angeles Church in Newport Beach.

In lieu of flowers, the family requests donations be made to Loyola High School of Los Angeles.

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​ Orange County Register 

Israel expects ‘long’ ground war in Gaza to destroy Hamas and its many tunnels

• October 27, 2023

By WAFAA SHURAFA, JOSEF FEDERMAN and BASSEM MROUE (Associated Press)

DEIR AL-BALAH, Gaza Strip (AP) — Israel expects to launch a long and difficult ground offensive into Gaza soon to destroy Hamas, the country’s defense minister said Friday, describing a campaign that will require dismantling a vast network of tunnels used by Hamas.

Defense Minister Yoav Gallant spoke to a small group of foreign reporters in Tel Aviv after Israeli forces backed by fighter jets and drones carried out a second, limited ground raid into Gaza in as many days, striking the outskirts of Gaza City.

Gallant said the ground invasion that follows weeks of airstrikes “will take a long time,” and that it would lead to another lengthy phase of lower-intensity fighting, as Israel destroys ”pockets of resistance.”

In a sign of rising tensions in the region, U.S. warplanes struck targets in eastern Syria that the Pentagon said were linked to Iran’s Revolutionary Guard after a string of attacks on American forces, and two mysterious objects hit towns in Egypt’s Sinai Peninsula.

After three weeks of war sparked by a bloody Hamas incursion into southern Israel, the Palestinian death toll has soared past 7,300, according to officials in Gaza. A blockade on Gaza has meant dwindling supplies of food, fuel, water and medicine, and U.N. and Arab leaders have called for a cease-fire to allow entry of humanitarian aid that is only trickling in. Hamas has been designated as a terrorist organization by the United States, Canada and the European Union.

Gaza’s Health Ministry on Thursday released a detailed list of names and identification numbers of those killed, including more than 3,000 minors and more than 1,500 women.

More than 1,400 people were slain in Israel during Hamas’ Oct. 7 attack, according to the Israeli government, and at least 229 hostages were taken into Gaza. Palestinian militants have fired thousands of rockets into Israel, including one that hit a residential building in Tel Aviv on Friday, wounding four people.

The overall number of deaths far exceeds the combined toll of all four previous wars between Israel and Hamas, estimated at around 4,000. A ground invasion is expected to cause even higher casualties on both sides as Israeli forces and Hamas battle each other in dense residential areas.

Hospitals have been scrounging for fuel to run emergency generators that power incubators and other life-saving equipment after Israel cut off all fuel deliveries to Gaza at the start of the war, forcing its only power plant to shut down.

Gallant said Israel believes that Hamas would confiscate any fuel that enters. He said Hamas uses generators to pump air into its hundreds of kilometers (miles) of tunnels, which originate in civilian areas. He showed reporters aerial footage of what he said was a tunnel shaft built right next to a hospital.

“For air, they need oil. For oil, they need us,” he said.

Little is known about Hamas’ secretive tunnels and other infrastructure, and it wasn’t possible to independently confirm Gallant’s claims.

Lynne Hastings, the U.N. aid coordinator for the Palestinian territories, declined to comment on Gallant’s remarks, saying “we don’t know what Hamas has or doesn’t have.”

“We have been bringing fuel into Gaza in coordination with the government of Israel for decades. We know fuel is a high-risk item and are working with the Israelis to make sure what we will be using for our operations is done securely,” she said.

The U.N. agency for Palestinian refugees, which provides basic services to hundreds of thousands of people in Gaza, said it has been forced to ration fuel among lifesaving machines in hospitals, bakeries, and desalination plants, and only has enough for a few more days.

“The siege means that food, water and fuel – basic commodities — are being used to collectively punish more than 2 million people, among them, a majority of children and women,” Philippe Lazzarini, the head of UNRWA, told reporters.

Earlier on Friday, the military said ground forces raided inside Gaza, striking dozens of militant targets over the past 24 hours. It said aircraft and artillery bombed targets in Shijaiyah, a neighborhood on Gaza City’s outskirts that was the scene of an urban battle in the 2014 Gaza war.

The military said the soldiers exited the territory without suffering any casualties. It reported an earlier, hourslong raid into northern Gaza on Thursday.

The damage to Gaza from nearly three weeks of bombardment showed in satellite photos of several locations taken before the war and again in recent days. Entire rows of residential buildings simply disappear in the photos, reduced to smears of dust and rubble.

The Israeli military says it only targets militants and accuses Hamas of operating among civilians in an attempt to protect its fighters.

The conflict has threatened to ignite a wider war across the region.

U.S. Defense Secretary Lloyd Austin said that the Friday strikes in eastern Syria were a response to “ongoing and mostly unsuccessful attacks” against U.S. personnel in Iraq and Syria over the past 10 days. He said the operation was separate from the Israel-Hamas war.

Hezbollah, an Iranian-backed ally of Hamas in Lebanon, has repeatedly traded fire with Israel along the border, and Israel has carried out airstrikes targeting Iran-linked groups in Syria. The United States has sent two aircraft carrier strike groups to the region, along with additional weaponry and personnel, in part to deter Iran and its allies from entering the war.

Egypt’s military meanwhile said a drone crashed into a building in the Red Sea town of Taba, on the border with Israel, slightly wounding six people. In a separate incident, the state-run Al-Qahera news said a “strange object” landed near a power station in the Red Sea town of Nuweiba, further south. Footage showed debris and smoke rising from the side of a nearby mountain.

Last week, a U.S. Navy destroyer in the northern Red Sea shot down three cruise missiles and several drones launched toward Israel by Iran-backed Houthi rebels in northern Yemen.

About 1.4 million of Gaza’s 2.3 million residents have fled their homes, with nearly half of them crowding into U.N. shelters. Hundreds of thousands remain in northern Gaza, despite Israel ordering them to evacuate to the south and saying that those who remain might be considered “accomplices” of Hamas.

Over the past week, Israel has allowed more than 80 trucks with aid enter from Egypt through the Rafah crossing, the only entry point into Gaza not controlled by Israel. But aid workers say the convoys meet only a tiny fraction of the territory’s mounting humanitarian needs. Before the war, an average of 500 trucks entered Gaza each day, according to the United Nations.

The Palestinian Red Crescent said on social media that it had received 10 trucks of food, medicine and other supplies had passed through Rafah on Friday morning.

The U.S. has been working with other mediators to send in more humanitarian aid, but Israel is insisting on strict screening procedures for all trucks that enter. Hundreds of foreign passport holders are trying to leave Gaza, but the U.S. says Hamas has refused to allow that.

___

Federman reported from Tel Aviv and Mroue from Beirut. Najib Jobain in Rafah, Gaza Strip, Jack Jeffery in Cairo, Isabel DeBre in Jerusalem, and Brian Melley in London, contributed to this report.

​ Orange County Register 

HOA Homefront: Readers want to know who’s the boss – the manager or board?

• October 27, 2023

Q: I am president of an HOA with management whose performance has been lackluster. Lackluster is characterized by little to no communication unless initiated by the board, not following through with board instructions, and inability to manage our violations process in a steady and predictable manner.

Once I accepted the position, I asked the board officers to tell me what roles they played and what functions they performed. They each said, “Nothing, the manager does it all.” The management agreement provides no metrics by which to measure performance. What is the most effective way to hold a manager accountable? — B.L., Oceanside

Q: We have a manager who is quite versed at her job however she is very rude to homeowners, responds to letters written to the board with her own answers without passing on the request letter to the board, and is condescending (verging on mean) to homeowners during the Q&A forum at meetings.

The board allows her to run the meetings to take the heat off themselves and she ends up ruling the meetings. She cuts off board members when they are answering community member questions and cuts off homeowners when they are attempting to express concerns.  Our board seems intimidated by her as well as appreciating her control and knowledge. Can anything be done? — J.R., San Diego

A.: Corporations Code Section 7210 allows corporations to hire a person or company and delegate management of the corporation, “…provided that the activities and affairs of the corporation shall be managed and all corporate powers shall be exercised under the ultimate direction of the board.” Operating HOAs is so complicated these days with so many statutory requirements.

It is often difficult to imagine any HOA operating properly and in compliance with the many laws without the help of an experienced manager. A good manager should not only execute the board’s instructions but should also provide good advice about the decisions the board has to make. The HOA manager’s advice is the first line of “reasonable inquiry” for the board under the Business Judgment Rule found in Corporations Code Section 7231, so the manager is a very important element of the HOA’s governance.

However, while the manager is legally responsible for following instructions and providing competent advice; the board is responsible for making the decisions.

In board and management training sessions, I routinely encourage managers to take an active advisory role, to ensure the board makes the final decision.

I also encourage directors to stay in the decision-making role and not become involved in the implementation of board directives. Managers should regularly provide input to the board during meetings but should not be running the meeting, which is the chair’s role. Managers who cut off directors during deliberations are outside their role.

Managers, whether employed directly by the HOA or through a management company, are (and must be) ultimately responsible to the HOA and directed by the HOA. If the manager is directing the HOA (as opposed to advising) then the relationship is upside-down.

Allow your management to do their job, but not yours, and expect them to do their job. When everyone executes their roles well, excellent HOA governance should follow.

Kelly G. Richardson, Esq. is a Fellow of the College of Community Association Lawyers and Partner of Richardson Ober LLP, a California law firm known for community association advice. Submit column questions to kelly@roattorneys.com.

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​ Orange County Register 

Statue of tandem duo unveiled at Waterman’s Plaza in Dana Point

• October 27, 2023

Steve and Barrie Boehne have traveled the world and shared thousands of rides together – but one thrilling moment showing the tandem duo’s stylish moves has now immortalize their place in Dana Point’s rich surf and skate culture.

A life-size, bronze statue showcasing the Boehnes riding a skateboard tandem – Barrie hoisted high above Steve’s head – was unveiled on Wednesday, Oct. 25, during a ceremony that brought together friends, family and fans. The statue, created by artist Bill Limebrook, joins statues of icons Hobie Alter, Joyce Hoffman, Bruce Brown, John Severson, and Phil Edwards are already on display at Watermen’s Plaza.

When the city envisioned Watermen’s Plaza, it was to recognize the watermen and women who made their mark where they lived, worked, innovated and, of course, surfed, in Dana Point, said Mike Frost, the town’s mayor.

“Now, Steve and Barrie are honored with the first, life-sized tandem statue in the nation,” he said.

Frost ticked off a list of the couple’s accolades – more than any tandem team in history – to the large crowd that gathered across from Doheny State Beach on Pacific Coast Highway for the ceremony, including winning the world tandem championship title twice, the US Surfing Championships four times and the prestigious Makaha and France contests each five times.

“That’s a lot of trophies,” Frost said, noting they were also featured on ABC’s “Wide World of Sports” and in Life Magazine.

What also made the Boehnes’ story special was their surf shop, Infinity Surfboards, in business for more than 53 years. The couple moved their operation south from Huntington Beach, landing in Dana Point about 35 years ago.

“I think Barrie and Steve’s career epitomizes the surf culture, the authenticity of Dana Point,” Frost said.

Surfer Derek Erickson has been a part of the Infinity team for 30 years, first sponsored by the brand when he moved from Hawaii to California in pursuit of a pro surfing career.

Three decades later, Steve Boehne is now teaching Erickson how to shape surfboards.

“They are truly a great family,” Erickson said. “They are so nice and gracious, humble people.”

Son Dave Boehne talked about how he and his brother, Dan, heard their entire lives how cool their parents are – no surprise for the siblings who grew up with a “mad scientist” dad and a “ripping” mom who would do anything adventurous.

He first talked about his dad, a legendary surfboard shaper and also one of the “nicest guys on the planet.”

“He has a heart of gold,” he said. “He’s the guy, if you have a challenging or crazy idea for a project, you go to Steve. He’s the guy who can do it and more importantly is willing to take on the projects most shapers don’t want to touch. Watching my dad shape surfboards is like watching a smooth jazz performance. He was born to shape and each performance ends with a magic board.”

Steve Boehne has spent a lifetime making sure other people were having a good time, starting when he was a teen taking out his younger siblings to ride tandem.

“He would take other people out surfing and paddling to experience the thrill of riding waves and share the same stoke he had for the ocean,” Dave Boehne said.  “He had more fun doing that than surfing solo.”

If it’s “tandemizable” – a word Steve Boehne coined – he’s done it: tandem surfing, tandem mountain biking, tandem stand-up paddle, tandem snowboarding, tandem windsurfing and, as depicted in the statue, tandem skateboarding.

“He truly is Mr. Tandem. His giving personality is what defines him the most,” Dave Boehne said. “My dad, the living legend.”

His mom is a woman with an unlimited amount of energy and an unreal spirit for adventure, he said.

The photo used as an inspiration for the statue was from a film shot in the mid-1970s of the couple skateboarding, he said, holding up the image of Barrie in the air casually resting in Steve’s hands while he rides a skateboard.

Dave Boehne holds up a old photo of his parents Barrie and Steve Boehne that was used as the inspiration for the statue of his parents during an unveiling ceremony at in Watermen’s Plaza in Dana Point on Wednesday, October 25, 2023. The life-sized statue of tandem skaters and surfers. (Photo by Leonard Ortiz, Orange County Register/SCNG)

“My mom is three months pregnant with myself in this photo. Pretty crazy. I don’t want to steal anybody’s thunder, but … I’m in the statue!” he said, a big smile on his face and fists clinched to the sky as the crowd cheered.

Barrie Boehne, 75, is still an inspiration, encouraging everyone she comes in contact with to be the best they can be, he said. “My mom, the ripper.”

Steve Boehne held back tears during his speech, talking about how fun it was to watch the process as  Limebrook formed the bronze statue.

“If he wanted to make a change to a head or a body part, he would  just saw off a limb, and put it back in place,” he said. “We were each decapitated and amputated several times.”

Boehne asked the artist why he picked a skateboard, rather than a surfboard, since riding waves is what the couple is most known for.

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“He pointed out a 12-foot tandem surfboard would just invite every kid and tourist to climb up on the board with us to pose for a picture,” Boehne said. “When they fell off, it would cause far more injuries than what we were doing.”

Boehne said tandem surfing has been the “ultimate in a male-female relationship.”

“The strength and surfing knowledge for the guy, combined with the grace, beauty and trust from the girl,” Boehne said. “We have wonderful memories of tandem waves we have shared together.

“I am so lucky she was with me all these years, thousands of waves we have ridden together all over the world,” he added. “We finally retired after 40 years of tandem competition in 2005. But we will be tandeming together in this statue forever.”

​ Orange County Register 

Plan for temporary longer commutes on 405 as carpool lanes close for final construction push

• October 27, 2023

Orange County Transportation Authority leaders are warning of longer commutes on the 405 Freeway over the next few weeks as the agency shuts down carpool lanes and connectors in the run up to completing the massive widening project on Dec. 1.

The northbound 405 carpool lanes at the 73 closed Wednesday night. The carpool lanes in both directions along the 405 – between the northern county line and the 73 – will close at night on Nov. 1, including the connector lanes between the 22 Freeway and the 405 and between the 605 and 405. When the lanes reopen in a month the $2.16 billion project that started in 2018 will be completed.

“There should be some plans for a longer commutes,” OCTA CEO Darrell Johnson said. “Maybe leave a little bit early, look ahead at traffic on all the (apps), whether it’s Waze or Apple Maps, but at the same time also recognize there will be some changes in the freeway system coming forward. A little bit of extra time now should help you later after Dec. 1.”

The lanes are closing to do final testing of the new tolling equipment, and will reopen as express lanes.  All travelers will need a FasTrak transponder to use the new 405 Express Lanes.

FasTrak Flex transponders, where you set the number of passengers in the car from 1 to 3+, will be needed to take advantage of the free tolls for carpoolers.

In Santa Ana, a 24/7 staffed traffic operations center will monitor the freeway’s express lanes. The room has large video boards with real-time traffic data and toll pricing. Workers there will have access to 50 cameras filming the freeway.

Johnson said if there’s an accident or some other incident on the express lanes, depending on the severity, the center would be able to close the lanes to new traffic. And if there was a significant incident on the freeway’s general lanes, they could also move traffic to the express lanes and not charge people.

The 405’s new express lanes are modeled after the 91 Express Lanes. There will also be tow trucks dedicated to servicing the 405 in Orange County.

The 16-mile expansion of the 405 is the largest single freeway investment in the county’s history, Johnson said.

The project also two new general lanes and two express lanes (on top of the converted carpool lanes), one for each direction. The 405 is one of the most congested freeways in the county, carrying more than 300,000 vehicle trips daily in parts, according to OCTA.

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​ Orange County Register