The Valley Stream Herald published this story this week on the Island's affordable housing situation.
Valley Stream resident Nina Petraro Bastardi, 26, says there is a glaring problem on Long Island: a lack of housing for young adults.
She is disturbed that many of her friends either can't afford to move out of their parents' homes or are leaving the Island altogether.
Petraro Bastardi, an attorney with Farrell Fritz and a deputy prosecutor for the village, is a member of Action Long Island, a volunteer nonprofit organization that advocates for a better quality of life for Nassau and Suffolk County residents. One of its big issues is housing for young adults.
Through a young-adult database, Action Long Island keeps people informed of potential housing developments that would be beneficial for those in their 20s. Petraro Bastardi said the purpose is to encourage them to attend public hearings for these projects and show their support. "A lot of good projects get voted down," she said, adding that it is often a vocal minority that gets developments defeated.
Petraro Bastardi said it is time for young adults to take a stand. "We're trying to make our generation a voice for the issue," she said. "Things won't really change until we're the spokespeople."
Because it is difficult for people in their 20s to buy homes, that age group looks to apartments, she said. But there are simply not enough affordable rentals on Long Island, Petraro Bastardi explained - though it doesn't have to be that way.
As a downtown revitalization project begins in Valley Stream, she expressed hope that this could lead to the creation of more next-generation housing. The village has hired a planning firm, but a recommendation of how to proceed is still several months away.
"A good idea would be to have housing on Rockaway Avenue," she said. "You could have condos or apartments over those stores."
Petraro Bastardi sits on the village's business improvement committee, which will be part of the decision-making process.
Mayor Ed Cahill said there are a few apartments above stores on Rockaway Avenue, and that adding more housing downtown is a possibility, but he first wants to see what recommendations the planning firm has. Cahill stressed that the purpose of the revitalization project is to bring more shoppers downtown, not to create affordable housing. However, he acknowledged, the two concepts could end up working hand in hand. "We're open to anything that will increase business," he said.
For example, a new 90-unit condo development will open up on North Cottage Street this fall, Cahill said. The location is just two blocks from Rockaway Avenue, and he expects the development to be a boon to downtown businesses.
David Sabatino, a 23-year-old from Valley Stream, said he and his girlfriend have been looking for a place to live but have been unsuccessful. According to Sabatino, their search for an apartment to rent has spanned more than a year. "It's very difficult for my girlfriend and I to find an affordable place to live," he said. "I would like it if there was a better housing option."
Sabatino, an NYU graduate student studying urban planning, said he has found a few places that interested him, but no one has been willing to budge on the price. He said he likes County Executive Tom Suozzi's push for "cool downtowns," which would create urban centers featuring a mix of stores, offices, restaurants and housing in close proximity to public transportation. Suozzi targeted Valley Stream as a potential location for such a downtown."
"I have a lot of faith in the village and Nassau County," Sabatino said of the housing issue, though he added that he hopes the problem is solved before he is forced to move off Long Island, like many of his friends have. "It's very tough," he said. "It's hard to stay, but I'd really like to."
Petraro Bastardi, too, wants to stay, and hopes to help make that possible for herself and others: She plans to run for the county Legislature in the fall.
She said that she and her husband, Chris, have had their share of struggles on the housing front. While they have owned a home in Valley Stream for two years, she said it took them about two years to find something affordable. There is little money left over for anything beyond the necessities after they make their monthly payments on the house, she explained.
Like Sabatino, Petraro Bastardi said she likes the idea of revitalizing Nassau County's downtowns and including housing for young adults. As far as she's concerned, it makes no sense for communities to spend millions of dollars educating people, only to have them go elsewhere. "It's obviously not good for any businesses," she said, "when you have skilled people leaving the region."
Comments about this story? AHackmack@liherald.com or (516) 569-4000 ext. 265.
Friday, April 24, 2009
Friday, April 3, 2009
WSJ: FASB Eases Mark-to-Market Rules
This article was in today's Wall Street Journal.
http://online.wsj.com/article/SB123867739560682309.html#printMode
FASB Eases Mark-to-Market Rules
By KARA SCANNELL
U.S. accounting rule makers made it easier for banks to limit losses, but in an unexpected move they bowed to critics and backtracked on one proposal that would have let companies ignore market prices in some cases.
The vote by the Financial Accounting Standards Board followed a debate in which members of Congress pushed for steps to help banks weighed down by troubled assets, while some investor groups warned that the plans would allow executives to cover up losses. The rules change spurred Thursday's stock-market rally.
For the most part, the board ratified proposals it had put out for comment two weeks earlier, including changes that would lessen the need for banks to take an earnings hit when assets run into trouble. Financial stocks led the market up in the morning on the expectation that the rules would be approved, but faded and ended roughly on a par with the broader market.
More
Mark-to-Market Changes May Have Muted Impact on Banks
04/02/09'Mark" Rule Change May Subvert Treasury Plan
04/01/09Heard on the Street: Accounting Rules Should Avoid Impairment
04/01/09Bankers argue that the "mark-to-market" principle of valuing assets at market prices is sometimes flawed because markets have ceased to function. They say that can lead to unnecessary alarm about the financial system's stability, an argument lawmakers have echoed.
One member of the five-member accounting standards board tried to address criticisms that the body had bowed to political pressure.
"We are an independent standard setter and it's important that we maintain our independence," said Lawrence Smith. But he said the board can't "ignore what's going on around us" as banks plead for help.
Under one of the changes adopted Thursday, the definition of an asset that is "other than temporarily impaired" will change. Once an asset gets that designation, it triggers a write-down in value that feeds through to the bottom line. In the case of banks, that may put capital below regulatory requirements.
Currently, to avoid the designation, management must assert that it has the intent and ability to hold on to the asset until its value recovers. Under the new rule, adopted by a 3-2 vote, companies could avoid the classification by stating that they intend to hold on to the asset and that it is more likely than not that they will, a looser standard.
Patrick Finnegan, director of financial reporting policy for the CFA Institute, said the move gives managers too much room to fudge the truth. "Financial statements are not there to reflect management's assumptions.," said Mr. Finnegan, whose group runs a self-study program for financial analysts.
Getty Images
Bank stocks like Citigroup were higher after the FASB eased rules to allow companies more leeway in valuing their investments.
The new rule draws a distinction that is especially relevant to mortgage-backed securities. The market for these securities has largely dried up, but banks say that most homeowners still are making mortgage payments.
The rule says that once an asset is other than temporarily impaired, only losses related to the underlying creditworthiness would affect earnings and regulatory capital. Losses attributed to market conditions would be disclosed and accounted for elsewhere.
Business groups mostly commended the changes, but said they aren't enough. "Significant problems remain with asset valuations, and guidance is needed for auditors," the U.S. Chamber of Commerce said in a statement.
Some investors were relieved that FASB backtracked from one of its proposals, which would have allowed companies to ignore all market prices when coming up with a value for securities once a market was determined to be inactive.
FASB instead said that more weight should be placed on transactions when a market is operating in an orderly fashion and less when the market is less active.
Write to Kara Scannell at kara.scannell@wsj.com
http://online.wsj.com/article/SB123867739560682309.html#printMode
FASB Eases Mark-to-Market Rules
By KARA SCANNELL
U.S. accounting rule makers made it easier for banks to limit losses, but in an unexpected move they bowed to critics and backtracked on one proposal that would have let companies ignore market prices in some cases.
The vote by the Financial Accounting Standards Board followed a debate in which members of Congress pushed for steps to help banks weighed down by troubled assets, while some investor groups warned that the plans would allow executives to cover up losses. The rules change spurred Thursday's stock-market rally.
For the most part, the board ratified proposals it had put out for comment two weeks earlier, including changes that would lessen the need for banks to take an earnings hit when assets run into trouble. Financial stocks led the market up in the morning on the expectation that the rules would be approved, but faded and ended roughly on a par with the broader market.
More
Mark-to-Market Changes May Have Muted Impact on Banks
04/02/09'Mark" Rule Change May Subvert Treasury Plan
04/01/09Heard on the Street: Accounting Rules Should Avoid Impairment
04/01/09Bankers argue that the "mark-to-market" principle of valuing assets at market prices is sometimes flawed because markets have ceased to function. They say that can lead to unnecessary alarm about the financial system's stability, an argument lawmakers have echoed.
One member of the five-member accounting standards board tried to address criticisms that the body had bowed to political pressure.
"We are an independent standard setter and it's important that we maintain our independence," said Lawrence Smith. But he said the board can't "ignore what's going on around us" as banks plead for help.
Under one of the changes adopted Thursday, the definition of an asset that is "other than temporarily impaired" will change. Once an asset gets that designation, it triggers a write-down in value that feeds through to the bottom line. In the case of banks, that may put capital below regulatory requirements.
Currently, to avoid the designation, management must assert that it has the intent and ability to hold on to the asset until its value recovers. Under the new rule, adopted by a 3-2 vote, companies could avoid the classification by stating that they intend to hold on to the asset and that it is more likely than not that they will, a looser standard.
Patrick Finnegan, director of financial reporting policy for the CFA Institute, said the move gives managers too much room to fudge the truth. "Financial statements are not there to reflect management's assumptions.," said Mr. Finnegan, whose group runs a self-study program for financial analysts.
Getty Images
Bank stocks like Citigroup were higher after the FASB eased rules to allow companies more leeway in valuing their investments.
The new rule draws a distinction that is especially relevant to mortgage-backed securities. The market for these securities has largely dried up, but banks say that most homeowners still are making mortgage payments.
The rule says that once an asset is other than temporarily impaired, only losses related to the underlying creditworthiness would affect earnings and regulatory capital. Losses attributed to market conditions would be disclosed and accounted for elsewhere.
Business groups mostly commended the changes, but said they aren't enough. "Significant problems remain with asset valuations, and guidance is needed for auditors," the U.S. Chamber of Commerce said in a statement.
Some investors were relieved that FASB backtracked from one of its proposals, which would have allowed companies to ignore all market prices when coming up with a value for securities once a market was determined to be inactive.
FASB instead said that more weight should be placed on transactions when a market is operating in an orderly fashion and less when the market is less active.
Write to Kara Scannell at kara.scannell@wsj.com
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