The Wall Street Journal-20080213-Plots - Ploys

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Plots & Ploys

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[What's Brewing in the Real-Estate Market]

Block That Condo

As the condo boom turns to a bust across south Florida, two communities have taken a tough approach to prevent overbuilding.

The city of Homestead earlier this month passed a yearlong moratorium on the development of new condos, town houses and cluster- style homes in the eastern half of the city, which is about 30 minutes south of Miami. While the moratorium had broad support in general, the measure passed the Homestead City Council on a 4-3 vote, stemming from disagreements over how to exempt construction that was planned or in progress.

Homestead's attempt to curb the condo-building boom follows efforts by the city of Hallandale Beach, north of Miami, which paused development in order to develop a master plan. Officials there last summer passed a six-month moratorium on new construction that contained 10 or more housing units or 4,000 square feet of commercial space. The city already had one million square feet of development proposed or planned before the moratorium took place.

No Goodbye Tears

Some real-estate investment trust executives are no doubt quietly celebrating the recent announcement by analyst Jonathan Litt that he is leaving Citi Investment Research to begin investing in real estate. Mr. Litt, one of the best-known REIT analysts, was aggressive in his coverage, a champion to shareholders but a nuisance to REIT executives who found their performance under his microscope.

In 2005, Citi settled a defamation suit brought by Canadian real- estate tycoon Peter Munk after Mr. Litt gave Mr. Munk a tongue-lashing in an August 2002 earnings call of Trizec Properties Inc., a company partially controlled by Mr. Munk. In the settlement, Citi apologized for the incident and agreed to make a "generous contribution" to a charity selected by Mr. Munk.

Mr. Litt, who didn't return phone calls seeking comment on his departure, explained in a memo to colleagues that he wanted to pursue a "buy side career" because "the current credit crisis is laying the groundwork for a great buying opportunity."

Registering a Complaint

Kicking off its annual convention in Orlando, Fla., on an angry note, the National Association of Home Builders announced yesterday that its political action committee was withholding all further campaign contributions to congressional candidates "until further notice" because of its disappointment with how Congress has handled the housing crisis.

An association spokeswoman declined to elaborate on specific criticisms. The builders have been stewing because Congress's stimulus package doesn't include a proposal that would have allowed builders to apply current losses to taxes paid on profits stretching back five years rather than the current two.

The association's political action committee has doled out $1.4 million to congressional candidates running for office this year.

-- Nick Timiraos, Jennifer S. Forsyth and Michael Corkery