BIG TIME DONATION FROM KRAVISES WILL MOVE CANCER RESEARCH FORWARD

Through the generosity of the Marie-Josee and Henry R. Kravis Foundation, who are contributing $100MM to Memorial Sloan Kettering, the Center for Molecular Oncology will move forward more quickly on its goal to expand gene coverage above the currently 341 known cancer-causing genes  and monitor therapy at the molecular level.   

They want to discover why tumors spread and if the patients were predisposed to cancer, determine what mutations are driving growth of the tumors.  The gift will create a precision oncology center which will bear the names of Henry and Marie-Josee Kravis.  The center states that cancer is a disease of the genome and they need to integrate vast amounts of molecular discoveries and analyze patients’ DNA and tumors to develop tumor-specific treatments.

Six gene-sequencing machines are being installed to analyze tumors.

Mrs. Kravis is Chairperson of the Sloan Kettering Institute, the research arm, and has been on their Boards of Overseers and Managers since October 2000.  Mr. Kravis is a private-equity investor.  Mr. Kravis told the Wall Street Journal, “I like to do things that are transformative and more importantly make a difference.”  

 Kravis gifted the Columbia Business School with $100MM in 2010 to fund a new building that will be completed this year and will bear his name.

HOA TRANSFER FEES - HOTLY DEBATE ISSUE

As of 2012, according to the Community Associations Institute (CAI), there were 323,600 association-governed communities in the U.S. with just under 26 million housing units and 63.4 million residents.  Averaging $100 to $500, transfer fees are generally used by communities for replenishing capital reserves, improvements to infrastructure and sometimes to fund environmental conservation activities; in other words to benefit the community.  A CAI member survey showed that 72% of HOAs charge transfer fees when units are sold, mostly flat fees but sometimes a small percentage of the sale.

In 2012 Fannie Mae and Freddie Mac adopted guidelines that banned private-purpose investor-benefit transfer fees from eligibility for conventional financing.  Lawyers for the US Department of Housing and Urban Development (HUD) warned FHA that under current “free assumability” regulations, they cannot insure mortgages on properties with “restrictions on conveyance”, encumbrances on the title that could hamper transfers, including fees paid at sale of units in HOA communities.  Most existing HOA transfer levies may become obstacles to those who want to use Federal Housing Authority (FHA) loans and seniors who apply for an FHA-insured reverse mortgage.  Groups have appealed to the FHA to mirror Fannie’s and Freddie’s current guidelines and prohibit only those fees that will not benefit the homeowner and association where they reside.  

Regulations might be published in June.  States estimated to be hardest hit if this Transfer Fee HOA rule goes into effect include Florida, California and Arizona, which have all struggled with owner-unit default problems.  Some had to put off needed capital improvements.  Others use these funds for essential community services.

The CAI has put FHA on notice that if this transfer fee plan goes forward, they will have to go to Congress feeling that these restrictions for FHA financing will adversely affect many forthcoming homebuyers and will compromise the stability of many communities.