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The American home is shrinking. Toll the bell for the McMansion.

After years of growth, the Census Bureau recently reported that median new home size fell to 2,135 square feet in 2009 after peaking at more than 2,300 earlier in the decade.

"Home buyers are asking for less, cutting back on options and reducing square footage," said Steven Pace of the North Carolina-based Pace Development Group, which builds both custom and tract houses ranging in price from below $250,000 to more than $2 million.

"They’re saying, ‘Maybe we don’t need that 5,000 square footage;" he said. "’Maybe our bath doesn’t need to be big enough for our whole family and all our neighbors to take a shower at the same time.’"

Kermit Baker, chief economist for the American Institute of Architects, pointed out that consumers don’t ask for as much for spaces devoted to single purposes, such as media rooms for watching videos and game rooms for shooting pool. Instead, the requests are for rooms with shared uses.

"We continue to move away from the ‘McMansion’ chapter of residential design," he said.

Now, the typical U.S. owner-occupied home has six rooms, with three of them being bedrooms, according to the Census Bureau’s annual American Housing Survey cheap business cards. The most common number of baths is two or more.

For those who remember the days of long, hot summers. Those are over, too. Nearly 90% of all new homes now have central air conditioning. And 63% of all homes are now cooled.

These are a big increases from even 10 years ago, when only 52% of owner-occupied homes — i.e. non-rental properties or second homes — boasted central air.

More than three-quarters of all homeowners now load up dishwashers, up from 65% a decade ago. And garbage disposals can be found in nearly half of owner-occupied homes, up from 46%.

On a broader scope, the survey revealed that, despite the recent hoopla about the new urbanism and return to cities, most Americans still lead a "Leave it to Beaver" lifestyle.

Of the more than 76 million owner-occupied homes in 2009, 63 million were traditional detached, single-family residences. And city dwellers, you’re outnumbered: Far more homeowners live in the suburbs than in cities.

Regionally, the South, held the largest number of owner-occupied units, followed by the Midwest, then the West and finally the Northeast.  

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Would you be willing to pay the original builder a fee when you resell your home? That’s an obligation some developers are trying to slap on homeowners in their communities.

Many condo and townhouse dwellers are already familiar with the "flip tax," more formally known as a resale fee. Typically calculated as a percentage of the sale price, it’s a fee due to the condo association or community when an owner sells. These charges fund common-area maintenance or provide a boost to reserve funds, which benefits the association’s homeowners.

But in some new developments, homebuilders are including in contracts a 1% fee to be paid to them every time the house is sold — for 99 years. And the money doesn’t go for improvements or upkeep: It’s just money in the builders’ pockets.

That has the real estate industry and consumer protection groups up in arms.

"It’s of no benefit to consumers," said Kathleen Day, of the Center for Responsible Lending. "It’s another innovative way to price gouge. Every extra dollar they suck out of people’s wallets takes away from other spending. It’s not good for the economy."

The issue has attracted the attention of Washington, where Rep. Brad Sherman, D-Calif., is leading a charge against the fees. "Consumers are not in a position to deal with another level of complexity, one that pits plain vanilla homes against ones that come with fees," he said.

Freehold Capital Partners, the New York-based financial company that is developing the program, claims it has already signed up thousands of developers nationwide, representing hundreds of billions of dollars of development.

The company’s plan is to monetize that future income — essentially allowing developers to get paid now rather than later. To do that, Freehold would bundle together the estimated income from the future fees and sell that package to investors. It claims this new "asset" would be worth about 5% of the original home prices.

One company that is working with Freehold is Thieman Enterprises, a developer based in Ohio. "I think it’s a fantastic program," said owner Ted Thieman. "I can get my development going again."

He said he needs the upfront cash to fund the building of infrastructure — roads, sewers and other essentials. Working with Freehold to sell the fee package on to investors would potentially give him enough cash to get projects going and land construction loans more easily.

Ohio, though, has banned the practice. Thieman thinks that removing this potential funding source will discourage development low interest personal loan. He said he will relocate one of his development plans to West Virginia, where he has acquired land. He’s disappointed for his home state.

"We can bring billions into Ohio and jump-start the economy," he said.

A Utah builder, Development Associates, initiated a similar program several years ago in order to recover some of the up-front costs of its developments. But after complaints from homebuyers, who said they were unaware of the fees, the company withdrew them.

Some developers regularly include "transfer fees" in their sales contracts, including Lennar, one of the nation’s largest builders. But the fees Lennar collects go to local housing-assistance organizations and charities, not back into its own pocket. That has helped keep the practice off lawmakers’ radar.

Still, most real estate experts are against these fees. A coalition of real estate industry organizations and community groups recently sent a letter to Treasury Secretary Tim Geithner recommending that he not allow Freehold’s securitization plan to go forward.

In the letter, the coalition quoted Rep. Sherman, who called the fees "a new predatory scheme."

In the past month, the Federal Housing Finance Agency proposed restricting Fannie Mae and Freddie Mac from buying or backing any mortgages that include home resale fees.

Freehold, of course, defends the program. Chief Operating Officer William White argues that the 1% resale fee will actually benefit consumers by lowering home prices: "No one will pay the same for a home with a [resale fee] as they would for the same home without the fee," he said.

That would make buying a home easier — but reselling one at a profit harder. Meanwhile, builders could offset their lower initial selling prices by either collecting on the back-end income stream from future sales, or selling those future earnings off to investors.

No securitization package has yet been created, according to White. But he’s optimistic: "We have been pleased with Wall Street’s response to date."

Whether the program will ever gets off the ground is an open question: 18 states have already banned or restricted the practice, and if the FHFA proposal goes through, it could derail it entirely.

Sherman does not think the idea is dead. Not yet.

"We’ve wounded the beast, but we haven’t put a stake through its heart," he said. 

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Questioning about the circumstances of Hewlett-Packard CEO Mark Hurd's resignation continued on the seond weekend after his departure in the wake of a sexual harassment complaint.

The Wall Street Journal cited a person it says was familiar with the HP board's thinking who said that the former CEO short-circuited an internal investigation by agreeing to a settlement with former actress Jodie Fisher on August 4, two days before his departure was announced.

The Journal reported that the settlement with the former marketing contractor came without the board's knowledge or input, a day before Fisher and her lawyer were supposed to meet with HP's outside counsel and Hurd's personal lawyer.

That story runs counter to another that the Journal attributes to an unnamed source it said is familiar with Hurd's thinking that HP had repeatedly instructed its CEO for three weeks before the settlement to come to an agreement with his accuser.

That source told the Journal that Hurd gave the board everything it asked for up to that point but the directors didn't let him address them or respond directly to questions.

The paper further said, however, that another unnamed source familiar with the board's thinking encouraged Hurd to speak with the board but he declined. It said, however, that the source on Hurd's side didn't agree with that version of the story.

The latest revelations about Hurd's departure come amid continuing scrutiny of the reasons for his sudden exit.

New York Times columnist Joe Nocera called it "one of the great head-scratchers in recent times" in a Saturday piece.

"The consensus in Silicon Valley is that Mr. Hurd was despised at HP, not just by the rank and file, but even by HP’s top executives," Nocera wrote.

The Times columnist suggests that the sexual harassment claim merely gave the board the pretext for doing what it wanted to do, get rid of Hurd without provoking an outcry on Wall Street where he was extremely popular for turning around the company's finances.

"In fact, the directors should be called out for acting like the cowards they are," the columnist wrote in a scathing piece. "Mr. Hurd’s supposed peccadilloes were a smoke screen for the real reason they got rid of an executive they didn’t trust and employees didn’t like."

Fisher, 50, was working as a contractor for HP when the alleged incidents that led to Hurd's resignation on August 6 occurred. She was reportedly paid to appear as a greeter at HP customer events where Hurd also appeared.

HP said an internal investigation didn't find evidence of sexual harassment but did find instances when Hurd's behavior didn't live up to the company's codes of conduct. This reportedly included alleged instances of expenses Fisher was paid that weren't properly reported.

To read more of the Business Journal's coverage of Mark Hurd's career and sudden resignation click here.

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Solar is making the news this morning in Arizona with three announcements:

* The city of Surprise put out a news release saying a major solar energy company is creating a U.S. headquarters and manufacturing facility in West Valley city with details to be announced Wednesday.

* Arizona Public Service Co. and SunPower Corp. of California signed an agreement to build a 15-megawatt solar photovoltaic system at Luke Air Force Base in Glendale. About 550 jobs will be created during construction with completion scheduled for next summer. The facility is expected to generate the equivalent of 50 percent of the base’s energy use, or enough to power 3,750 homes. Construction is set to begin in January saving account pay day loan. Early talks about this plant were reported in the Phoenix Business Journal in May.

* Solon Corp., a silicon solar module manufacturer and provider of turnkey solar power plants, signed an agreement with Tucson Electric Power Co. to bring a 1.6 megawatt solar plant to the city. The University of Arizona will house the 1.6-megawatt system at UATechPark’s SolarZone, a 200-acre project designed to bring together industry, research and solar demonstration components. Construction is scheduled to be completed by December.

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Home sales heated up like never before in the month of June with the number of transactions climbing to 1,379, easily the highest recorded in this decade by the Buffalo Niagara Association of Realtors.

The trade group reported 1,379 closed deals for that period – a 24 percent leap from 1,111 sold June 2009. The previous high sales total for any month since 2000 was 1,188 in August 2007.

For the first half of the year, home sales in the Buffalo area are running 5 percent ahead of 2009 at 4,364 compared to 4,164.

Real estate observers have cited the continuation of a federal tax credit for home buyers as one reason for the spike in home sales in recent months.

Prices also rose to new highs in June with the median tag up 4 percent to $119,000 and the average single-family home price having increased 3 percent to $139,231 from $134,927 year-over-year.

Total dollar volume in the market spiraled 22 percent to $192 million from $157.7 million.

Active listings continued to expand, rising 11 percent to 6,281 from 5,934 while new listings declined 14 percent to 1,650 from 1,912.

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Frito-Lay North America has received a $1.125 million grant from the Texas Enterprise Fund to launch a long-term project that will install business management software throughout the Plano-based company, creating 125 jobs in the process.

The Texas Enterprise Fund is controlled by the governor and used to recruit companies that want to relocate or expand to Texas.

Aurora Gonzalez, a spokeswoman for Plano-based Frito-Lay North America, said the fund’s interest in Frito-Lay’s IT transformation centers around the project's ability to create more than a hundred jobs.

The software upgrade and IT additions are “significant projects that require specific talents and people to do the work,” Gonzalez added.

The project also will create more than $50 million in business infrastructure, the Office of Governor Rick Perry said Friday when confirming the state’s financial commitment through the TEF fund cash advance flexible payments.

Frito-Lay’s project is the next step in parent company PepsiCo.’s multi-year plan to convert and upgrade the company’s business management software throughout product lines and divisions. The state’s investment will support the team responsible for the software conversion.

In response to the money allotted by the fund, Gonzalez said Friday, “As always we value or partnership with both the state and certainly with the City of Plano. We value their commitment to us, and we remain committed to them.”

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Amy and Tom Asch’s Amy Asch Photography took home $12,000 and the title of best business plan from the 2010 Houston Community College and Newspring Business Plan Competition.

Amy Asch Photography, a boutique photography studio business that will open in Spring Branch.

Second prize of $8,000 went to Filip Valica for Maker Acre, a prototyping lab that will allow inventors to turn ideas into finished products by providing coaching and access to technology used by leading manufacturers. Third prize of $4,000 went to Lisa Reyna for International Consulates, a social entrepreneurship providing customized educational and support services that help to facilitate the successful integration of Houston’s foreign nationals by providing educational, vocational, social and cultural services payday lenders.

Nineteen teams competed in this year’s annual competition, which was sponsored by Newspring Center and the HCC Center for Entrepreneurship. Newspring is a local social entrepreneurship, nonprofit organization founded by Robert Westheimer dedicated to creating economic opportunities for residents of Spring Branch.

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Harris Corp. has entered into an agreement to buy privately held SignaCert Inc., an IT compliance solutions provider.

The terms of the deal were not disclosed.

Harris officials said the deal will expand its position as a leading provider of cyber solutions for government and commercial customers. Portland, Ore.-based SignaCert’s customers include government, financial services and health care companies.

“This acquisition will expand our presence in the growing $10 billion cyber solutions market,” said Dale Meyerrose, vice president and general manager of Harris Cyber Integrated Solutions. “Acquiring SignaCert will strengthen our cyber leadership team, and Harris will be better positioned to provide solutions that address the national priority of enhancing critical cyber infrastructure.”

Melbourne-based Harris Corp. (NYSE: HRS) is an international communications and information technology company serving government and commercial markets worldwide.

The company has $5 billion of annual revenue and more than 15,000 employees.

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The landlord at Eastland Mall has told its tenants they must vacate the shopping center by June 30.

The landlord, LNR Partners Inc. of Miami, says the mall’s owners have been unable to find a buyer for the property, and the property is now in foreclosure, according to a letter delivered to store owners Friday.

“It is understood that the lender or any other party that acquires title to Eastland Mall at foreclosure will close the mall,” the letter states. “We regret that this action is necessary, but given the present economic environment, we have no other option.”

The mall, which has operated at Central Avenue and Sharon Amity Road since 1975, has struggled in recent years to attract and maintain tenants. It is the Charlotte region’s fifth-largest shopping center, measuring nearly 1.1 million square feet.

“We will continue to serve the tenants and the customers until June 30,” says Christine Vigneault, general manager of Eastland Mall.

Last year, the city of Charlotte had options to purchase the former Belk Inc. and Dillard’s Inc. anchor spaces as part of a plan to redevelop the property. But, after a rezoning hearing, the City Council directed the city staff to “take no further action” on the mall.

Discussions about buying the struggling property pegged acquisition costs for the mall, its anchors stores and surrounding parcels at up to $50 million, according to sources familiar with those talks.

In October, the real estate investment trust that owned the core of the retail center — but not its four anchor-store spaces — handed the property back to its lender. Ohio-based Glimcher Realty Trust (NYSE:GRT) had a $42 million loan on the property.

The real estate investment trust’s mortgage was diced up and sold off as commercial mortgage-backed securities long ago.

The mall is now under the control of a holding company overseen by LNR.

LNR, the special servicer on the loan, is owned by private-equity fund Cerberus Capital Management.

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The Phoenix Suns, Arizona Diamondbacks and Phoenix Coyotes drew about the same number of fans to their winning home games Wednesday. The difference is that the Coyotes and Suns sold out their stadiums while the D-backs filled 36 percent of Chase Field’s 48,650 seats.

The D-backs drew 17,673 fans for their win over the San Diego Padres. The Suns sold out the 18,400-seat US Airways Center next door in their win over the San Antonio Spurs and the Coyotes sold all 17,100 tickets in their final regular season home game in Glendale against the Nashville Predators.

The Coyotes started the National Hockey League season with poor attendance, but have seen a boost of late qualifying for the NHL playoffs for the first time since 2002. Both the Suns and Coyotes are headed to the playoffs while the D-backs have just started their 2010 baseball season.

The recession-induced pullback in consumer spending has been a challenge for ticket sales. The Arizona Cardinals are in their off season but are renewing season tickets for the next football campaign.

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