Archives for February 2013

Lake Clarity Best in 10 Years

February 27, 2013 • Ask a Question

From the University of California, Davis on February 27, 2013

LAKE TAHOE WATER CLARITY THE BEST IN 10 YEARS

Lake Tahoe’s clarity improved in 2012 for the second year in a row, and its waters were the clearest in 10 years, according to University of California, Davis, scientists who study the lake.

Last year’s average annual clarity level was 75.3 feet, or a 6.4-foot improvement from 2011, according to data released today by the UC Davis Tahoe Environmental Research Center and the Tahoe Regional Planning Agency.

The lake’s clarity is measured by the depth at which a 10″ white disk, called a Secchi disk, remains visible when lowered beneath the water’s surface. The measurements have been taken since 1968, when the Secchi disk could be seen down to an average of 102.4 feet.

The annual clarity level is the average of 22 individual readings taken throughout the year. The highest individual value recorded in 2012 was 107 feet, and the lowest was 57 feet.

Researchers provided measurements for last year’s winter (December-March) and summer (June-September) months. Winter clarity last year continued a long-term pattern of improvement, with the best clarity since 1996. The winter average of 88.3 feet in 2012 was well above the worst point seen in 1997 and a combined 12-foot improvement for the past two years.

At 64.4 feet, summer clarity improved 13 feet from the 2011 value, but researchers say the persistent trend is still one of declining summer clarity.

“The improvement we see in both the summer and winter clarity during 2012 is very encouraging,” said Geoffrey Schladow, director of the UC Davis Tahoe Environmental Research Center. “The lake will continue to be subjected to a range of disturbances, each of which has the potential to impact clarity. There is now growing belief that managing for clarity is possible.”

The rate of decline for average annual clarity in the past decade has been better than in recent decades. In 1997-1998, annual clarity reached an all-time average low of 65.1 feet. This year’s value is an improvement of more than 10 feet on that period, but still 22 feet short of the clarity restoration target of 97.4 feet set by federal and state regulators.

Urban stormwater runoff has long been a contributor to reduced clarity at the lake. Most of that runoff occurs during the winter and spring, when rain and snowmelt carry small, inorganic particles from the land, roads and other developed areas into the lake.

Yet, despite wet winters during 2011 and 2012, clarity improved.

Researchers say this could indicate that efforts led by the Tahoe Regional Planning Agency, other management agencies, local jurisdictions and private property owners to reduce urban stormwater runoff are having a positive impact. However, the researchers emphasize that they need more data on stormwater to make more definitive conclusions.

The Tahoe Regional Planning Agency is leading a collaborative Environmental Improvement Program that supports achievement of environmental standards at the lake, with clarity being among the most important.

“Average annual clarity is again moving in a positive direction,” said Joanne S. Marchetta, executive director of the Tahoe Regional Planning Agency. “With passage of the Regional Plan Update that focuses on the Environmental Improvement Program and water quality treatments in town centers where they are most needed, we expect to see this trend continue.”

“We are very excited about the results from 2012, especially within the context of the long-term record for annual and winter clarity,” said John Reuter, associate director of the UC Davis Tahoe Environmental Research Center. “It is particularly encouraging to see clarity improve during wet years when the amount of fine sediments and nutrients going into the lake is high.”

Clarity readings since 2000

* 2012: 75.3 feet (22.9 meters)
* 2011: 68.9 feet (21 meters)
* 2010: 64.4 feet (19.6 meters)
* 2009: 68.1 feet (20.8 meters)
* 2008: 69.6 feet (21.2 meters)
* 2007: 70.1 feet (21.4 meters)
* 2006: 67.7 feet (20.6 meters)
* 2005: 72.4 feet (22.1 meters)
* 2004: 73.6 feet (22.4 meters)
* 2003: 71 feet (21.6 meters)
* 2002: 78 feet (23.8 meters)
* 2001: 73.6 meters (22.4 meters)
* 2000: 67.3 feet (20.5 meters)

For a complete list of Annual Secchi Depth Data since 1968, visit this page

Graphs showing the various clarity measurements for summer months, winter months, and the yearly averages, are available at the UC Davis Tahoe Environmental Research Center website

More information about environmental factors affecting Lake Tahoe will be included in the 2013 State of the Lake Report, expected this summer.

Funding for the clarity analyses comes from the Tahoe Regional Planning Agency.

About UC Davis Tahoe Environmental Research Center

The UC Davis Tahoe Environmental Research Center is a world leader in research, education and public outreach on lakes, their surrounding watersheds and airsheds, and the human systems that both depend on them and impact them. The center, with laboratories and offices in Incline Village, Nev., Tahoe City, Calif., and the UC Davis campus provides critical scientific information to help understand, restore and sustain the Lake Tahoe Basin and other systems worldwide.

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Filed Under: Big Blue Blog

Return of 100% Financing

February 1, 2013 • Ask a Question

This an interesting article from the Wall Street Journal which ran on February 1, 2012, written by AnnaMaria Andriotis:

“Some affluent buyers are getting the keys to their new home without putting a penny down.

It’s 100% financing—the same strategy that pushed many homeowners into foreclosure during the housing bust. Banks say these loans are safer: They’re almost exclusively being offered to clients with sizable assets, and they often require two forms of collateral—the house and a portion of the client’s investment portfolio in lieu of a traditional cash down payment.

In most cases, borrowers end up with one loan and one monthly payment. Depending on the lender and the borrower, roughly 60% to 80% of the loan can be pegged to the home’s value while the remaining 20% to 40% can be secured by investments. On a $2 million primary residence, for instance, the borrower could get a $2 million loan, which would require a pledge of assets in an investment portfolio to cover what could have been, say, a $500,000 down payment. The pledged assets can remain fully invested, earning returns as normal, without disrupting the client’s investment goals.

While these affluent clients may be flush with cash, this strategy allows them to get into a home without tying up funds or making withdrawals from interest-earning accounts. And given the market’s gains combined with low borrowing rates in recent years, some banks say clients are pursuing 100% financing as an arbitrage play—where the return on their investments is bigger than the rate they pay on the loan, which can be as low as 2.5%. Some institutions offer only adjustable rates with these loans, which could become more expensive if rates rise. In most cases, the investment account must be held by the same institution that’s providing the loan.

These loans also provide tax benefits. Since borrowers don’t have to liquidate their investment portfolios to get financing, they can avoid the capital-gains tax. And in some cases, they can still tap into the mortgage-interest deduction. (Borrowers can usually deduct interest payments on up to $1 million of mortgage debt.)

While these loans make up a small portion of banks’ overall lending, demand for them has been rising. BNY Mellon Wealth Management’s mortgage team says it experienced a 10% increase in requests for 100% jumbo-mortgage financing involving clients’ investment portfolios in 2012 compared with a year prior. BOK Financial, BOKF +0.68% which offers up to 100% financing just to medical doctors through its private-banking divisions in eight states, including Arizona, Oklahoma and Texas, says there has been a roughly 25% increase (or about 100 more borrowers) in this lending from a year ago. Also, at Citi Private Bank, applications have been growing over the past two years. “Demand is two to three times what it normally is,” says Peter Ferrara, managing director of the private bank’s residential real estate.

Some banks are using this product to lure in clients, such as BOK Financial’s offer, which is available to new physicians. To provide the loan, the bank must first receive proof that the borrower has cash or investments, like stocks or mutual funds, that equal 10% of the borrowed amount. (The company says it doesn’t seek a pledge of those assets but just wants to know that borrowers can meet their obligations over time.)

What to consider before signing up:

• Portfolio restrictions. The amount clients can borrow against investment accounts will depend on what the portfolio comprises. In most cases, they can get up to 95% if the account comprises cash, up to about 80% if it’s bonds, and between 50% and 75% with stocks. Withdrawing pledged funds is typically restricted while the loan is outstanding.

• Relationship pricing. To get the lowest rate, clients who already have significant assets at a particular bank should consider applying for 100% financing there.

• Underwriting standards. Borrowers will still need to pass regular underwriting requirements, including having a high credit score, a low amount of overall debt—including student debt—and providing documentation of substantial income or assets.”

Here is a link to the original article

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Filed Under: The Buyers' Blog