Tag: real-estate

Options

As a real estate investor assesses potential properties to acquire, when a good investment has been identified, what if an extended closing is preferred? In this case, an investor might use an option contract.

The option contract enables the investor – with an option contract, the investor becomes the optionee – to lock in purchase terms with the seller. The seller is the optionor. Negotiated terms in an option contract involve the sale price as well as a timeframe in which the closing will take place. 

Terms for the purchase are presented by the optionee to the optionor, accompanied by a dollar amount – consideration.

In order for the option contract to be effectuated, consideration is given by the optionee to the optionor. Consideration is comparable to an earnest money deposit, which accompanies a real estate contract of sale in a traditional purchase.

Once the option contract is in place, the optionee has secured his or her option to purchase the home. According to terms set forth in the option contract.

The optionor can’t sell the property to another buyer. The optionor can’t enter into another option agreement with another optionee. While the optionee is not obligated to follow through and complete the purchase of the home. The optionee has an option.

Within the option period, the optionee lines up his or her financing. The optionee obtains cost estimates to renovate the home. The optionee coordinates the appraisal and inspections.

As per inspections, the optionee may want to order a tank sweep. 

A tank sweep will show the optionee whether there is an underground storage tank – a UST.

An OPRA request can be forwarded by the optionee to the township. An OPRA request could enable the optionee to obtain public records pertaining to the home.

Environmental concerns…

Let’s say a UST has been discovered. The Environmental Protection Agency does not necesssrily regulate underground tanks for residential homes. 

By definition, a UST is a tank whereby a minimum of 10% of the piping is located underground. For UST’s with storage capacity of less than 110 gallons, these fall outside federal oversight. Although states and municipalities often institute their own policies for UST’s. 

Storage tanks installed in the 1980’s – and prior to the 1980’s – were constructed with steel. Over time steel corrodes. If corrosion occurs with a steel UST, oil could leak. With an oil leak, you run the possibility of contaminating not only the subject property, but the surrounding area as well. Oil could seep into soil. And water sources too. These represent environmental hazards.

Within the due diligence phase of an option contract, as home inspections are conducted, in the event that a UST has been discovered by way of a tank sweep or an OPRA request, the option continues. While the execution of the option could be put on hold. 

Let’s assume local home values increase during the option period. While discovery of the UST negatively affects the home’s value.

One “plus” – increasing home values – and one “minus” – the UST.

When the optionee obtains financing, the home becomes the lender’s collateral. The UST will lower the market value of the home. Adversely affecting the lender’s collateral. 

The UST affects marketability. The UST culminates in a lower appraisal value. The reduced appraisal value affects loan to value. Which, in effect, affects loan terms. 

The optionee’s lender may want to get a Phase 1 Site Assessment. A Phase 1 details environmental conditions. The lender would likely schedule a Phase I prior to issuing the loan commitment.

Discoveries arrived at by the optionee during the due diligence phase through inspections – such as a discovery of a UST – could determine whether the optionee elects to follow through on the option they have to purchase the home.

The MLS


In 1908 the National Real Estate Exchanges was first established. One of the early goals of the National Real Estate Exchanges was to facilitate an effective cooperation system which could be used by brokers to sell real estate. Early days of cooperation among REALTORS.


The National Real Estate Exchanges set out to find good ways to communicate the benefits of – and the salable features for – properties available to be purchased through National Real Estate Exchange members – cooperation among members.


Each month property information was delivered by member-brokers to offices of member-brokers – the earliest stages for REALTOR cooperation. The earliest forms of the sharing of property information.
Information drop-offs: 1) head over to the local real estate office, 2) drop off information about properties.


Preceding the dropping off of property information at real estate offices, brokers met at the office of their local trade associations to discuss properties. Participating brokers agreed to compensate one another. A collaborative effort to sell homes – Help me sell my property, I’ll help you sell yours…


MLS’s have come a long way. Today, Florida has over two-hundred twenty-thousand REALTORS – #1 in the country. California has in the range of two-hundred thousand REALTORS. In Texas, over one-hundred fifty-thousand REALTORS.


Using Texas as an example, those 150,000-plus Texas REALTORS access property information through multiple listing services managed by the Texas Real Estate Commission.


One of the oldest MLS’s in Texas is the Austin Board of REALTORS Multiple Listing Service.


The Austin Board of REALTORS began 1918. Forming ten years after the National Association of REALTORS was established. Today, the Austin Board of REALTORS Multiple Listing Service serves over 18,000 real estate professionals in eighteen Texas counties.


MLS’s are locally organized and managed. The importance for local management of MLS’s can by illustrated using Texas as our example.


In Texas, property descriptions include information about kitchens, bedrooms and property taxes. Add in oil leases and mineral rights. Considerations pertinent to oil and gas interests.


Florida property listings – or New Jersey property listings – prioritize such interests. Texas listings would. Hence, the benefit of locally managed MLS’s.


The largest MLS in Texas is the Houston Association of REALTORS Multiple Listing Service. Houston’s MLS was established in 1918 and today serves over 160,000 REALTORS. The Houston Association of REALTORS Multiple Listing Service is the 10th largest MLS in the country.


The California Regional Multiple Listing Service is the largest MLS, consisting of over 40 associations, boards and smaller MLS’s.
California REALTORS are also served by two additional MLS which are among the largest in the country – the LA/Westside MLS and the California Regional MLS. The LA/Westside MLS has over 16,000 members.
The largest MLS in New Jersey – the 39th largest MLS in the country – is the Monmouth-Ocean Regional REALTORS Multiple Listing Service. Established in 1936, Monmouth-Ocean Regional has over 11,000 members.


The second largest MLS in New Jersey is the Garden State MLS. Established in 2010, the Garden State MLS is the 89th largest MLS.
The National Association of Real Estate Exchanges became the National Association of Real Estate Boards in 1916. By 1972, the National Association of Real Estate Boards became the National Association of REALTORS. The NAR.


Of note, the National Association of REALTORS is independent of the National Association of Real Estate Brokers – NAREB.
Founded in 1947 in Tampa, Florida, members of the NAREB are REALTISTs, not REALTORS.


The NAREB is the oldest minority business association in the country. The NAREB is an equal opportunity and civil rights advocacy organization. Focusing their efforts the advancement of African-American real estate professionals.


Headquartered in Maryland, the NAREB was organized by Black real estate professionals who had a goal of forming their own real estate trade group. Incentivized to do so because at that time, Black real estate professionals were prohibited from joining the NAR.


The first NAREB convention was held in Atlantic City, New Jersey in 1948.
Today, the National Association of REALTORS establishes policies for a majority of the MLS’s.


NAR members join local boards and associations. Of which there are about 1,600.
NAR members are REALTORS. With over 1.5 million members, the NAR is the largest trade association in the United States.

St. Louis


“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!” – John Jacob Astor

When investing in real estate, ideally, one hopes to attain benefits such as: a) low acquisition cost, b) limited tenant problems, and, c) steady appreciation. A-B-C. One way to arrive at A-B-C is often overlooked.

A-B-C created America’s first multi-millionaire, John Jacob Astor. However, pursuing a real estate strategy comparable to the one America’s first multimillionaire utilized to become America’s first multimillionaire is not common.

For savvy investors, prioritizing the acquisition of nonperforming properties can be a good route to take. While this is not a process utilized by a majority of owner-occupying home buyers, owning the home you live in correlates to building net worth. For investors. For families.

Equity built up in homes (over time) makes up in excess of 75% of the total net worth for American families.

“Real Estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.” – Franklin D. Roosevelt


Identifying nonperforming properties available at great prices…

With regard paid to neighborhood stabilization and community development, land banks play an important role. They acquire – then convey – non-performing properties to those who can transition nonperforming properties into performing properties. Land bank properties can be acquired at prices which are less than market rate prices.

According to a report put forth by the Brookings Institute a few years ago, just about 15% of land in American cities is vacant. Vacant land can be categorized as nonperforming. In that vacant land does not generate property tax revenue. All the while, property taxes function as a vital source of revenue for cities.

Property taxes. A lack thereof?

Reduced property tax receipts impede the sustainability of any city. Reduced property tax receipts are one byproduct of nonperforming properties.

Nonperforming properties…let’s look at St. Louis.

Over the years, St. Louis took possession of in excess of 10,000 nonperforming properties. Residential homes. Vacant lots. Vacant buildings.

By conveying properties the city took possession of to developers, St. Louis alleviated having to operate as a de-facto property manager. Snow removal. Mowing lawns. Boarding up buildings. Tasks transferred in St. Louis to developers.

How so?

Not the conventional way. Neither St. Louis nor land banks use Realtors to sell properties. So let’s look at how St. Louis conveys properties.

Land Reutilization Authority…

The origin for St. Louis’s Land Reutilization Authority – LRA – is found in Title 1 of the Housing and Community Development Act of 1974. In the beginning, funding for the Land Reutilization Authority came through HUD.


The process in St. Louis…

To acquire a Land Reutilization Authority property, buyers complete an Offer To Purchase Form. Buyers submits Offer To Purchase Forms to the LRA, along with two most recent pay stubs, the prior year’s W2 and tax return and the buyer’s most recent bank statement. Buyers also discloses their funding source. A bank. mortgage company. Cash on hand. A Planning Sheet is attached to each buyer’s Offer To Purchase Form.

The Planning Sheet is an overview. The Planning Sheet provides details pertaining to the buyer’s vision for how they plan to improve the property.

The conveyance of city-owned properties and land banks properties happens at the local level. Procedures vary. City by city. Town by town.

At the federal level, an important “tool” used to facilitate the conveyance of properties through land banks became available in 2008.

Resulting from the Financial Crisis, Congress passed the Housing and Economic Recovery Act of 2008. The Housing and Economic Recovery Act appropriated $4 billion to address abandoned and foreclosed properties.

The Housing And Economic Recovery Act of 2008 later became the Neighborhood Stabilization Program. Commonly known as NSP.

One year after the NSP went into effect, Congress appropriated an additional $2 billion to address vacant and abandoned properties. Through the NSP.

The NSP provided the framework – and the funding mechanism – cities relied upon to create programs designed to combat problems arising from increasing numbers of nonperforming properties. A problem amplified by the Financial Crisis.


One approach used in St. Louis to lessen neighborhood blight was the Dollar House Program. To provide the Dollar House Program with inventory, the LRA placed properties in the Program which were owned by the LRA for at least five years.

The Dollar House Program provided owner-occupant applicants with an opportunity to inspect LRA homes. Upon completing inspections, buyers then established rehab budgets. After which, buyers were able to submit their applications to the LRA.

Buyer applications underwent board review. Should a buyer have been deemed to have met Program qualifications, with board approval, within 120 days buyers were expected to, a) stabilize the home, b) improve the facade, and c) follow building codes.

Renovation of Dollar House Program homes needed to be completed within 18 months. Furthermore, the buyer of the LRA home was required to live in their home for at least three years. Once they completed the rehab.

The LRA held a quitclaim deed to properties. Enabling the LRA to regain possession of properties should requirements established by the LRA not be met by buyers. The LRA was able to extend timelines for rehabs which took longer than 18 months to complete.

Buying a distressed home in St. Louis? Buying vacant land in St. Louis? Buying a rundown apartment building in St. Louis?

Some perspective…

Long, long ago, John Jacob Astor saw something he liked in an overlooked, sneered-upon, not-too-desirable piece of land. That then nonperforming piece of land that John Jacob Astor liked – then purchased – proved to be a decision which anchored his trajectory towards becoming America’s first multi-millionaire. This was a piece of land all know quite well.

Where was this land located?


Beginning in 1799, John Jacob Astor began to acquire vast amounts of land in New York City. Astor went on to become New York’s biggest landlord. Astor owned land in what today we know to be Times Square. And the East Village.

John Jacob Astor’s real estate was the backbone to his wealth.

When John Jacob Astor began buying Manhattan real estate, the population of New York City was 60,000. Fifty years later, New York City’s population exceeded 500,000.

“Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!” – John Jacob Astor

Developer Financing




When it comes to financing an apartment building, banks, investors or partnerships constitute options developers may consider. So too can be the government.

The government…

Section 207 HUD loans through the 223(f) program are well-suited to finance the purchase of or the refinance of multifamily rental properties. Multifamily apartment buildings which are deemed to be in good condition. Properties that require substantial rehabilitation are not eligible for mortgage insurance (“MI”) in this program. Critical repairs must be made prior to the issuance of an endorsement.

Purpose…

The 223(f) program utilizes 35-year Government National Mortgage Association mortgages. GinnieMae mortgages…so competitive interest rates are available.


Eligible properties…

Properties must contain at least five residential units with kitchens and bathrooms which are in good condition. Furthermore, the property must have been rehabilitated at least three years prior to applying for MI. Non-critical repairs may be completed up to twelve months after closing.

Projects requiring substantial rehabilitation are not eligible for this program. An example of “substantial rehabilitation” would be the replacement of more than one major system.

The economic life for a project must be long enough for a ten-year mortgage to make sense. Amortization cannot exceed, 1) 35 years, or 2) 75% of the estimated life of improvements. The lesser of.

Here are some of the details…

87% LTV for projects with 90% (or greater) rental assistance.

85% LTV for projects that meet the definition of “affordable housing.”

83.3% LTV for market rate projects.

Participant eligibility includes for-profit and non-profit applicants.

Section 223(f) provides for Multifamily Accelerated Processing (MAP). Meaning, the sponsor works with a MAP-approved lender to obtain a firm commitment.

Files are underwritten to determine whether the project constitutes an acceptable risk. Considerations for approval include market need, as well as capabilities of the borrower.

Underwriters determine whether there will be enough project income to repay the loan, taking into account project expenses. Should the project satisfy program requirements, a commitment for MI is issued.

Applications submitted by non-MAP lenders are processed by a HUD field office through Traditional Application Processing (TAP).

With TAP, there are two processing stages: 1) the conditional commitment stage, and 2) the firm commitment stage.

The sponsor participates in a pre-application conference to determine the appraisal value of the property as well as the loan amount.

At the firm commitment stage, the loan amount is determined.

For proposals which meet program requirements, a MI commitment will be issued.

ROI – outdoor kitchens and fire pits


Think of those captivating outdoor kitchen designs you fell head-over-heels in love with while you were scrolling through the pages of Unique Homes. Or while being online through Dwell. Or Dezeen. Or Home and Design.

When thinking through ideas which enhance outdoor living space, your wallet – I.e.: economics – is a factor. Economics will affect your decision. The proverbial… “Yes, we should…” Or, “No, we shouldn’t …”

Rather than allowing your wallet to prevent you from converting your backyard into THE destination point for friends, for family and for admiringly-curious neighbors, transitioning your backyard into the local must-see, data suggests,  can be a wise financial move on your part.

To this effect, let’s look at how two trend-setting hardscaping ideas in 2025 not only enable your interior living space to seamlessly flow into your now-great outdoors. Let’s also look at how smart hardscaping decisions also equate to…GOOD ECONOMICS.

For example…

Throwing burgers on the grill while you take in the crispness of fresh evening air? This is an experience best brought to life for you with an outdoor kitchen. Yes, start preparing your steaks outside. Confidently knowing that the fabulous outdoor living features you now own are the fruition of money well spent. 

Your inset grill. Those stainless steel drawers. The built-in ice chest and sink. Touched off by the granite or the concrete – your choice – counter space.

According to Remodeling Magazine and CNN Money, adding an outdoor kitchen can yield between a 100% and 200% ROI. Dependent upon, of course, how extensive your design is.

In the 2023 Remodeling Impact Report – published by the National Association of Realtors – by adding that outdoor kitchen you’ve been thinking about, what can you expect as your return on investment? A 100% ROI.

Or…think about an evening with the adults out back. Enjoying cocktails-and-conversation on a cool, brisk autumn evening. With a fire safely and brightly simmering in your fire pit.


Come to think of it, it is truly a wonder how any backyard at all doesn’t have a fire pit.

According to the National Association of Realtors, as well as the National Association of Landscape Professionals, the ROI you can expect by adding a fire pit? A 56% ROI.

Enhancing memories in your backyard? Check.

Loving your home even a little bit more? Check.

A good ROI? Check.

All that’s left is…to start dreaming about your very own customized design.

Shadow Inventory


Uninhabited real estate. Vacant homes. Vacant lots. Distressed homes. Each, categorized as shadow inventory.

Properties in foreclosure. Bank REO’s. Properties which will soon be listed for sale…but have not yet been listed for sale. Shadow inventory. City-owned properties? These properties should be included in the same category – shadow inventory. But they’re not. 

Shadow inventory is all too often overlooked as a property category through which the provision of increased access to affordable homes can be expanded in neighborhoods where limited opportunities to find affordable housing now exists.

Distressed properties make up a significant portion of shadow inventory. Distressed properties sell at lower prices than do properties which are in good condition. Accordingly, sales of shadow inventory homes can contribute to lower area home values. Yet these lower shadow inventory sale prices create affordable housing opportunities. Through the lower sale prices. As such, the acquisition of a shadow inventory home could enable a buyer to gain access to affordable housing..

Properties in foreclosure. Bank REO’s. Shadow inventory. Once again, how about city-owned properties? 

City-owned properties would not necessarily be classified as “shadow inventory.” Classifications aside, one upside found in purchasing a foreclosed home – or a bank REO – can also be found in purchasing a city-owned property. This upside being, an opportunity to get into a home of your own. Affordably.

Benefits found in shadow inventory homes are not bestowed only upon those who are looking to find affordable housing opportunities. 

Acquiring shadow inventory – and city-owned properties – creates a nice opportunity for real estate developers. As developers are able to acquire shadow inventory and city-owned properties at less-than-market sale prices.

Then, as developers reposition shadow inventory and city-owned properties to “performing properties,” developers are able to put the now-performing properties on the market. Selling the properties they purchased at less-than-market prices at market prices. In a limited inventory market. A profitable exercise.

Affordable housing advocates…this is one good path to consider.

Real estate developers…this is one good path to consider. 

It’s rather ironic, yet factually accurate, that for-profit real estate developers are able to benefit by following along the same pathway that affordable housing advocates travel. Yet this is a unique situation we do have, within the space of identifying benefits attributed to purchasing shadow inventory and city-owned properties.

Is what we are talking about here a liberal real estate path? Or is this a conservative real estate path? Is this a real estate path for FOX viewers? Or is this a real estate path for MSNBC viewers. The answer is, All of the above. 

LAND BANKS


Municipalities enter into land bank agreements with redevelopment entities. In doing so, municipalities designate redevelopment entities as land bank entities.

Procedures are written into land bank agreements which clarify how land bank entities acquire properties on behalf of municipalities.

Why land banks?

Land bank properties are not bring absorbed by the market. There are reasons for this. Such as…

Years of back taxes owed. Clouded titles. Rehab budgets which exceed appraisal values. Limited “comps.” Are owner-occupying buyers able to secure renovation loans? 

The market isn’t absorbing land bank properties. We have an inventory challenge. We have a housing affordability challenge. 

Why not become proficient in land bank properties?

To accommodate, or not to accommodate? To restrict, or not to restrict?


Markets do not optimally function when interest rates are too low. Markets do not optimally function when interest rates are too high. The housing market – as well as the home loan market – would be two markets where this point can be most easily seen. 


Artificially-low interest rates create an overly-accommodative economy. The consequences for which we see in today’s stubbornly non-ignited housing market. Mortgage rates are not high today. They’re just a lot high-er than they were during the Pandemic. But mortgage rates today are certainly not anywhere near what we should classify as, high. 

The ’70s’ would be one example we could use to illustrate how markets malfunction when interest rates are, first, too low, then, later, increased. Increased too much. Too fast. 

There were points in time during the 1970’s where the country was actually in a negative interest rate environment. Bank deposits were yielding “storage charges,” so you speak. As opposed to throwing off interest income.

The low-rate environment in the 1970’s came about in many ways because the stock market was in shambles. The result of that market unease of the ‘70’s? The Fed enacted an easy money policy. The idea at the time being, to attain full employment. Overly-accommodative. This was a flawed approach. Which became highly inflationary.

Enter price controls? Yep. Did you ever make one mistake, then double-down, only make to make your second mistake? In succession? An easy money policy followed by price controls? That ill-advised combination did not work out so well.


So by the late ’70’s, with the country in the midst of rampant inflation, the Fed began to ratchet up interest rates. To temper the inflation. The origin of this inflation which was now being battled was of course triggered by the overly-accommodative fiscal policy of the Fed years before. The result of moving from an accommodative fiscal policy to a restrictive fiscal policy by way of rising interest rates? The economy went into recession. 

Let’s look at another recent timeframe…

In the early-2000’s, interest rates were lowered. Interest rates became accommodative. At that time, lower interest rates were married to accommodative home loan underwriting policies.  The result? Skyrocketing home values. An increase in home loan defaults. The Financial Crisis. 

Overly-accommodative policy = a rough landing.  

Overly-restrictive policy = a rough landing. 

Overly-accommodative policy followed by overly-restrictive policy = a rough landing. 

During the Pandemic, the federal funds rate was lowered to a range of 0% to 0.25%. Mortgage rates dropped. Home prices went up. 

Fast forward to 2025…

Today, more than 75% of homeowners are nestled cozily in with a sub-5% mortgage rate. Around 55% of homeowners are nestled cozily in with a sub-4% mortgage rate. This “lock-in effect” we have in housing in 2025 is one byproduct of the low-rate policy the Fed enacted during the Pandemic.

Last year 25 out of every 1,000 homes found their way to new buyers. That was the lowest turnover rate we saw in housing in 30 years.

Accommodative policy – I.e.: low interest rates – do not only lead to future restrictive policy by way of elevated interest rates. Accommodative policy leads to the market restricting itself. Which is exactly where we are right now. 

For example…

Why sell your home when the interest rate you have on your mortgage is 4% or less? Especially when you know you’d have to go out and buy another home in the midst of a restrictive cycle – at an elevated price, no less – with a mortgage rate which would be between 6% and 7%?

Building your home is one option. A construction loan is how you can do it.


You’ve thought about building your own home. You can. A construction loan can make it happen.

There are different types of construction loans. So let’s look at two of these loan types: a) the one-time close construction loan, and b) the two-time close construction loan.

With the OTC, you qualify one time for two loans.

The 1st qualification is for your construction loan. The 2nd qualification is for your permanent loan.

And then there is the two-time close (“TTC”) construction loan.

The TTC is a riskier loan than the one-time close. Due to the fact that with the two-time close, you will need to qualify based upon your credit and your income a second time- after your home is built.

With the TTC, any reduction in your income or a drop in your FICO Score – while your home is being built – could make it more difficult to qualify for your permanent loan.

Another potential risk to consider with the two-time close is, What if the construction phase doesn’t go well? What if construction is not completed? What if it’s delayed?

In either situation – a) a drop in your credit score or a reduction in your income, or b) challenges with construction, with the TTC, qualifying for your permanent loan could be put at risk.

Key points…

The one-time close construction loan: one loan approval

The two-time close construction loan: two loan approvals

ABANDONED HOMES

Processes to consider when thinking through how to transition abandoned homes from absentee owners to developers could include: a) land banking, b) spot blight eminent domain, and c) receivership. Tools. Why focus on this problem? Why cultivate ideas? Why develop solutions? 

Abandoned homes become financial drains on a city’s resources. For example, the cost to demolish an abandoned home?Demolition costs could reach up to $20,000. Per home.

And there are social costs as well…

Neighborhoods with abandoned homes become breeding grounds for crime. For drug use. For violence. Social costs.

But social costs are not always correlated to dollars and cents. Furthermore, social costs are often viewed as someone else’s problem.

But are social costs easy to understand? Are social costs someone else’s problem?

Social costs attributed to abandoned homes correlate to financial costs. Financial costs incurred by the city. Financial costs incurred by the city’s stakeholders. Financial costs incurred by the city’s taxpayers.

Social costs attributed to abandoned homes affect city residents who may – at first – believe abandoned homes would not be a problem affecting them.

For example…

A New Yorker living in Tribeca or on the Upper East Side is part of New York City. As such, they pay New York City taxes. So, while there may be few abandoned homes in their neighborhood, Tribeca and the Upper East Side are still coupled to the poorest neighborhoods in New York City. To the Morrisania and the Crotona neighborhoods in the Bronx.

In Morrisania and Crotona, nearly 4-out-of-10 live below the poverty line.

Let’s say socioeconomic challenges in Morrisania or Crotona lead to a foreclosure in either neighborhood. That foreclosure, then becoming an abandoned home.

Increased police patrolling is one byproduct of abandoned homes. Enacted to prevent neighborhoods from spiraling into crime magnets.

Increased New York City police patrolling in the Bronx is a financial cost. Which addresses the social cost. And that is a New York City cost. A cost which is bourne by…Morrisania residents. A cost which is bourne by…residents on the Upper East Side. A cost which is bourne by…residents in Tribeca. A cost which is bourne by…Crotona residents.