New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens, of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

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Online:

Task force recommendation: http://www.uspreventiveservicestaskforce.org

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Alda, Lear honored at 40th International Emmys

NEW YORK (AP) — Glee co-creator Ryan Murphy paid tribute at the International Emmy Awards Monday night to television legends Norman Lear and Alan Alda, whose cutting-edge, socially-conscious shows in the '70s changed the face of television.

Unlike previous years when Britain dominated the awards honoring excellence in television production outside the U.S., the winners in the nine categories this year spanned six countries. Argentina, Brazil and Britain each won two Emmys; Australia, France and Germany had one apiece.

Murphy closed the awards ceremony by delivering a moving tribute to Lear, now 90, and "M(asterisk)A(asterisk)S(asterisk)H" star Alda as he presented them with the 40th Anniversary Special Founders Award. The International Academy of Television Arts & Sciences marked the milestone anniversary by presenting special awards honoring a producer and performer who had groundbreaking shows on TV in 1972 when the International Emmys were first presented.

Fittingly, the night's big winner was Argentina's "Television x la Inclusion," a drama produced by On TV Contenidos dealing with issues of social exclusion and inclusion. It became the first series in the history of the International Emmys to sweep both acting categories.

Dario Grandinetti, who starred in Pedro Almodovar's film "Talk to Her," won the best actor award for his portrayal of a divorced, xenophobic taxi driver determined to drive out his Peruvian neighbors.

Cristina Banegas, a Argentine theater, film and TV actress, was honored as best actress for her role as the mother of a girl with Down syndrome who fights her health insurance company when it won't authorize life-saving heart surgery for her daughter.

The British winners were in the documentary category for "Terry Pratchett: Choosing to Die," about the author who after his Alzheimer's diagnosis travels to a Swiss clinic for a first-hand look at assisted suicide procedures, and "Black Mirror," a suspenseful and satirical look at the unease created by modern technology, in the TV movie/mini-series category.

Both of Brazil's wins went to TV Globo productions. "The Invisible Woman," about a publicist married to his boss whose relationship is threatened by the appearance in his life of his imaginary ideal woman, was chosen the best comedy. "The Illusionist," the story of a scam artist who becomes an illusionist after meeting a magician in jail, won in the telenovela category.

Murphy himself was honored midway through the awards ceremony hosted by Regis Philbin at the Hilton New York Hotel. Jessica Lange, the star of Murphy's contemporary gothic TV series "American Horror Story," presented him with the honorary 2012 International Emmy Founders Award.

Murphy, the writer, director and producer whose credits also include "Nip/Tuck" and "Popular," was recognized for the impact his shows have had in recognizing diversity and encouraging people to become more inclusive. With "Glee," Murphy also essentially created a novel TV format mixing music with drama/comedy.

At the end of the ceremony, Murphy returned to the stage to give the awards to Lear and Alda. Murphy recalled how moved he was when he watched Lear's sitcoms in his youth — "All in the Family" and its spinoffs "Maude" and "The Jeffersons," which decades later inspired him to produce "Glee" and "The New Normal."

Lear's shows were funny but tackled the key social issues of the day — racism, sexism, even abortion, rape and homosexuality — a sharp contrast to '60s hits like "The Beverly Hillbillies" and "Green Acres" which avoided race or other social problems.

Alda starred as the wise-cracking, anti-authoritarian Army surgeon Hawkeye Pierce on "M(asterisk)A(asterisk)S(asterisk)H, in which the Korean War served as a stand-in for social commentary on the Vietnam War. He became the only person ever to win U.S. Emmys for acting, writing and directing in the same series.

The other Emmy winners included France's police drama "Braquo," about a group of Parisian cops who circumvent the law, using violence and intimidation, for best drama series; Germany's "Songs of War," in which "Sesame Street" composer Christopher Cerf explores the relationship between music and violence after learning his songs had been used to torture prisoners in Guantanamo and Abu Ghraib, for arts programming; and "The Amazing Race Australia" for non-scripted entertainment.

Six International Emmys for children's programming will be presented at a new awards ceremony on Feb. 8 in New York.

U.N. Secretary-General Ban Ki-moon gave a taped introduction before Korean entertainer J.Y. Park presented the honorary International Emmy Directorate Award to Kim In-kyu, president of the Korean Broadcasting System.

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Online:

www.iemmys.tv

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Hostess, unions agree to mediation

Hostess Brands Inc agreed in court on Monday to enter private mediation with its lenders and leaders of a striking union to try to avert the liquidation of the maker of Twinkies snack cakes and Wonder Bread.

Hostess, its lenders and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union agreed to mediation at the urging of Bankruptcy Judge Robert Drain of the Southern District of New York, who advised against a more expensive, public hearing regarding the company's liquidation.

"My desire to do this is prompted primarily by the potential loss of over 18,000 jobs as well as my belief that there is a possibility to resolve this matter," Drain said.

The 82-year-old Hostess was seeking permission to liquidate its business, claiming that its operations have been crippled by a bakers strike and that winding down is the best way to preserve its dwindling cash. Hostess suspended operations at all of its 33 plants across the United States last week as it moved to start selling assets.

Heather Lennox, a lawyer for Hostess, said it would be hard for Hostess to recover from the damage it sustained due to the strike even if an agreement was forthcoming. Yet following the hearing, Hostess Chief Executive Officer Gregory Rayburn told reporters that there was always a chance Hostess could be saved.

"I think we have to see what unfolds," Rayburn said. "My impression is that the judge wants to understand the parties' positions and some of their logic, but it doesn't change our financial position.

"I'm happy to have the help," he added, referring to Drain's mediation following a breakdown of communication between Hostess and the union. "Maybe the judge will help. But can I handicap how it's going to go? No way."

A lawyer for Hostess' creditors' committee declined to comment.

The court-sanctioned mediation could make both sides more willing to give, said Nick Kalm, a communications consultant specializing in labor relations.

"It makes it much more likely that the company will put forward something that is less draconian... and the union will take it. The union realizes they are out of options," said Kalm.

BEHIND CLOSED DOORS

The BCTGM called the strike on November 9 after Hostess sought and won court approval to impose wage and benefit cuts.

Unlike other unions representing workers at Hostess, the BCTGM did not contest Hostess's action -- which allowed it to reject a collective bargaining agreement and impose its offer.

Given the fact that the union did not fight Hostess's motion in court, Judge Drain said it was "somewhat unusual to say the least, and perhaps illogical" that the union would then strike against it.

"Its an odd approach," Drain said. "Before thousands of people are put out of work it would seem to me worthwhile for both the union and the debtors to explore why that happened."

Drain also questioned whether the union had held discussions with competitors or potential suitors about a shiftover of jobs, saying the union's response to Monday's motion implied that it sees "meaningful sales available out there beyond the piecemeal sales that this motion contemplates."

A lawyer for the union did not immediately return a phone call seeking comment on whether such discussions had taken place.

BUYERS MAY EMERGE

Analysts have said Hostess' brands, which also include Nature's Pride, Dolly Madison and Drakes, are expected to draw interest from rivals including Flowers Foods, Pepperidge Farm owner Campbell Soup Co and Mexico's Grupo Bimbo.

Brian Boyle, a food industry investment banker at D.A. Davidson & Co, said it was hard to gauge the value of the Hostess assets, given that there are a lot of plants that are old and inefficient.

"The other wild card is whether you're going to see different buyers emerge for different segments of the business. So Flowers Foods, for instance, might want the cake segment and Bimbo could want the bread piece. So it comes down to 'are the parts greater than the whole?'," Boyle said. "In either case, significant labor and benefits concessions will be required."

Private equity firm Metropolous & Co said on Friday it was interested in pursuing the company, and on Monday, Fortune reported that Sun Capital Partners was interested. Sun Capital did not return a call seeking comment.

The company did have a potential white knight at one point, according to Hostess. Last spring, an outside equity investor had made a viable proposal that would help the company reorganize, it said, but the Teamsters union refused to agree to changes to the pension program and the outside investor walked away.

The company spent the summer and fall negotiating with all of the 12 unions trying to find a common path to reorganization, and did gain certain agreements with the Teamsters and many of the other unions, though not the BCTGM. At the same time the company started putting together a liquidation plan.

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Prosecutors: Woman wore mask as partner used stun gun on mom

Julie P. Franck, 36. Cook County Sheriff's photo (Cook County Sheriff's photo / November 18, 2012)

By Ryan Haggerty




Tribune reporter

8:34 p.m. CST, November 18, 2012

A Chicago woman pulled on a ski mask before her accomplice fired a stun gun about 15 times at a 55-year-old woman on a Bucktown street last month, allowing the pair to allegedly steal the woman's $40,000 engagement ring and $200 in cash, prosecutors said today.

The woman who wore the ski mask had good reason to conceal her identity -- the victim was her mother, prosecutors said in Cook County bond court.

Julie P. Franck was arrested Friday and charged with armed robbery in connection with the Oct. 9 attack outside her mother's home in the 1700 block of North Marshfield Avenue, according to court documents.

Cook County Judge Edward Harmening ordered Franck, who is pregnant, held in lieu of $300,000 bail. Prosecutors did not say whether the second suspect had been arrested.

A witness was able to pull off Franck's ski mask before Franck and the other suspect drove off in a Smart Car after the robbery, prosecutors said.

Franck and the other suspect are accused of stealing credit and debit cards from Franck's mother, in addition to her 3.5-carat diamond ring and cash, according to court documents.

Franck's mother was treated for her injuries at Resurrection St. Mary of Nazareth Hospital and released, according to court documents.

rhaggerty@tribune.com

Twitter @RyanTHaggerty

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Cisco to buy cloud-networking start-up Meraki for $1.2 billion

(Reuters) - Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $1.2 billion in cash as part of its cloud and networking strategy.

Cisco said the acquisition of Meraki, which was founded in 2006 by members of MIT's Laboratory for Computer Science, is expected to close in the second quarter of Cisco's 2013 fiscal year and is subject to regulatory approval.

Cisco's second quarter runs until the end of January.

Meraki - funded by Sequoia Capital and Google Inc - offers Wi-Fi technology, switching, security and mobile device management from the cloud with a focus on mid-sized businesses.

"This is a very logical move for Cisco," said ZK research analyst Zeus Kerravala.

He said the deal will allow Cisco to offer alternative solutions to traditional Wi-Fi deployment models like smaller competitors, such as Aruba Networks and Ruckus Wireless, which debuted on Friday.

"Cisco didn't really have anything to counter that before," Kerravala noted.

Meraki's Chief Executive Sanjit Biswas said in a letter to employees posted on the company website that Cisco had approached the company several weeks ago.

The company's founders had at first rejected the offer in favor of continuing Meraki's strategy aimed at an initial public listing.

"After several weeks of consideration, we decided late last week that joining Cisco was the right path for Meraki," Biswas said.

He also said that Meraki had achieved a $100 million bookings run rate, grown to 330 employees and had a positive cash flow.

(Reporting by Nicola Leske, editing by Gary Crosse)

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Brad Keselowski gets The Captain his Cup title

HOMESTEAD, Fla. (AP) — Brad Keselowski, loud, a little buzzed and soaked in beer, bounded through the door with an oversized bottle of champagne in one hand and his cellphone in the other. He plopped down next to Roger Penske, a pillar of the American auto industry, and triumphantly slapped him on the back.

"We did it boss," Keselowski hailed.

"Did you bring your tweeter?" the 75-year-old Penske replied.

NASCAR's oddest couple captured its biggest prize Sunday night, when Keselowski brought Penske his first Sprint Cup championship 40 years after the owner's first stock car race. He beat five-time champion Jimmie Johnson of mighty Hendrick Motorsports while delivering the crown that fills a glaring hole on Penske's otherwise sterling racing resume.

Penske is considered the gold standard of open-wheel racing — he has 15 Indianapolis 500 wins — and his empire makes him one of the most successful businessmen in America. But until Sunday night at Homestead-Miami Speedway, his NASCAR program was never more than average.

"Personally, I feel amazing that I've been able to achieve this in racing," Penske said. "I think it took guts for me to stay in the sport. We could have thought, 'Well, we won the Indy 500 15 times and we're a big deal.' But I'll tell you one thing ... I think I just woke up here tonight, and it's a big thrill."

As always, Penske credited his entire organization.

But the program really turned behind Keselowski, you know, the kid you first heard about when he tweeted from inside his car during the season-opening Daytona 500 earlier this year. So it was fitting that his first act as champion was sending a tweet, of course, from inside his car. "We did it," he posted with a picture.

Then the party really began.

The blue collar, Twitter-loving, Michigan native chugged sponsor Miller Lite's product, donned goggles to douse the Blue Deuce crew with champagne, and imagined how his life will change as NASCAR's champion. At 28, he's the eighth youngest champion in NASCAR history and proud he doesn't have a date for the Nov. 30 champions banquet in Las Vegas.

"I've always wanted to date a celebrity," Keselowski said, "I'm just throwing that out there. That would be really cool, don't you think?"

Penske could only shake his head in bewilderment.

"Maybe I am conservative, but I like to have a little fun, too," Penske said. "And I think when you've won the NASCAR championship, the driver, you can kind of give him a little wider path, and he's certainly taken it side to side. I think it's all good."

Keselowski might not have seemed like Penske material three years ago, but he's a cornerstone now.

He was a developmental driver for Hendrick Motorsports in 2008 when he went to see Penske, convinced he could be the driver to bring "The Captain" a coveted Cup championship. He wiggled free from his contract a year later, and had a second-tier Nationwide championship — and a closet full of starched white Penske shirts — to show for his convictions.

Now, three years into the partnership, he and Penske have that Cup championship and a connection no one saw coming.

"Always, throughout my whole life I've been told I'm not big enough, not fast enough, not strong enough and I don't have what it takes," Keselowski said from the championship stage. "I've used that as a chip on my shoulder to carry me through my whole career. It took until this year for me to realize that that was right, man, they were right.

"I'm not big enough, fast enough, strong enough. No person is. Only a team can do that."

Keselowski needed 125 starts to win his first championship, the fewest starts since four-time champion Jeff Gordon won his first title in 93 starts in 1995. Keselowski also won a second-tier Nationwide title in 2010, his first season with Penske and the owner's first official NASCAR championship.

Gordon, who avoided suspension this week but was fined $100,000 by NASCAR for intentionally wrecking Clint Bowyer last week at Phoenix, overcame the controversy to win the race in a 20th anniversary celebration for sponsor Dupont and Hendrick Motorsports.

It was Gordon's first victory at Homestead, which leaves Kentucky as the only active NASCAR track where he's yet to win.

Who did Gordon beat? Bowyer, of course.

And Bowyer's second-place finish moved him to a career-best second in the final standings. Third-place went to Ryan Newman, who got his break in NASCAR with Penske and spent seven seasons driving for the owner.

"He deserves this probably as much as anybody else, if not more because of what he's done for motor racing in general, NASCAR, his dedication to all forms of race cars is probably more than anybody else in the history of auto racing," Newman said. "I know this is probably one of the sweetest moments in his racing career."

Keselowski started the race up 20 points on Johnson, who blew a tire and crashed last week at Phoenix to give Keselowski a nice cushion. He needed to finish 15th or higher in the finale to wrap up his first championship. But the Penske team took nothing for granted — not after Will Power crashed in the IndyCar finale to blow a 17-point lead and lose the championship.

And this one got tight, too, especially when Keselowski ran out of gas on pit road during green flag pit stops. It put him a lap down with Johnson leading, and Keselowski and crew chief Paul Wolfe frantically tried to figure out how dire the situation had become.

Wolfe crunched the numbers, figuring the No. 2 Dodge would cycle out in the mid-20s, a lap down from the leaders.

"I know the scenario, and it's not good," Keselowski said.

But minutes later, Johnson went to pit road for his own stop and pulled away with a missing lug nut. NASCAR flagged the Hendrick Motorsports team and Johnson was forced back to pit road for another stop.

The Penske team was unsure if Keselowski wanted to know what was going on with Johnson.

"I've got a big picture story if you want to hear it," a team member radioed, then informed Keselowski that Johnson had to pit again.

"Ten-four. Thank you for telling me. We're back in the game. I got it," he said.

It got worse for Johnson from there. He broke a rear end gear in his Chevrolet and went to the garage with 40 laps to go, essentially clinching the championship for Keselowski.

"It all unraveled pretty quick," Johnson conceded.

No longer needing to save fuel, and no longer needing to play it conservatively, he waived off Wolfe's playbook.

"If he's in the garage, let's race," Keselowski said.

That's been Keselowski's attitude since he burst onto the NASCAR scene. He first caught attention as a brash driver for Dale Earnhardt Jr.'s Nationwide Series team, and he was unapologetic for his aggressive driving and his refusal to back down in long-running feuds with established stars Denny Hamlin and Carl Edwards.

But he's been calmer and focused since joining Penske in 2009. Still, his fame had been largely for the Daytona 500 tweeting.

NASCAR loved the attention it received, but quietly admonished him later for having a phone in his car, which is banned because it can manipulate electronic fuel injection systems. So when he tweeted again last week under red at Phoenix, NASCAR fined him $25,000 — which angered fans who felt a mixed message had been sent.

But Keselowski, who was tweeting into the early morning hours Sunday, handed his phone over with no resistance right before he climbed into the car at Homestead.

The win is the first for Dodge since Richard Petty's Cup title in 1975, and comes as the manufacturer is leaving NASCAR. Penske announced days after the Daytona 500 it will move to Ford next year, and it led to Dodge's decision to pull out of NASCAR.

"Not one failure all year long in that Dodge engine, so I want to thank Dodge for what they've done for us," Penske said after Keselowski secured the title.

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Movie industry has shed 16,000-plus jobs in L.A. since 2004, study says

LOS ANGELES (TheWrap.com) – The motion-picture industry has lost more than 16,000 jobs in Los Angeles County since the peak year of 2004, according to a new study by the Los Angeles County Economic Development Corp.

And according to the study, “runaway productions” that have moved out of the county due to tax incentives in other areas could be to blame.

The study noted that the motion-picture and video production sector of the entertainment industry – the largest segment of the industry in Los Angeles County – was responsible for 118,200 jobs in the county in 2004, a peak year for the sector. In 2011, by contrast, that number dropped to 102,100 – a 13.6 percent decrease that accounts for 16,100 jobs.

“Arguably, runaway production has had a deleterious effect on industry employment,” the report notes. “New York State alone added 14,100 jobs in this sector over that period, while Georgia added nearly 800 jobs. Meanwhile, Louisiana added over 2,200 jobs since implementing its own tax-credit program in 2002. Other states added jobs in the sector as well.”

The study also points out other factors that could account for the job drain, such as piracy and international competition in such farflung areas as Canada, India and Nigeria, which surpassed Hollywood in 2009 as the second-largest film producer in the world, following India’s Bollywood, according to a report from UNESCO’s Institute for Statistics.

Movies News Headlines – Yahoo! News

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Justin Bieber wins 3 AMAs, including top honor

America proved its Bieber Fever was strong: The teen singer dominated the American Music Awards on Sunday night.

Bieber's wins included the show's top award, artist of the year.

The singer's mom joined him onstage as he collected the top award.

He looked to his mom: "I wanted to thank you for always believing in me."

He said it's "hard growing up with everyone watching me" and asked that people continue to believe in him.

The 18-year-old also won favorite pop/rock album for "Believe" and male artist.

He performed two songs at the award show, one stripped and another upbeat with Nicki Minaj. As Bieber won his second award, he was kissed on the neck by Jenny McCarthy, who presented the award.

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Investors rush in to rent out foreclosures

The foreclosed home on Kenmore Street in Aurora was an outdated, unkempt eyesore until crews arrived this fall, performing thousands of dollars of work to make it attractive and modern, inside and out.

But it wasn't until workers walked across the street to ask for some water that neighbors Mario Cervantes and Oralia Balderas-Cervantes learned that a corporation, not a consumer, had bought the house, intending to turn it into a rental property. Despite being landlords themselves, the couple aren't sure they like the idea.

"If it's going to be a company that is watching out for the community, yes," Cervantes said. "If it's going to be a company that is watching out for themselves, no."

Added Balderas-Cervantes: "I'd rather see a homeowner. A lot of renters don't care. It's like renting a car versus buying a car. It's different."

Similar scenarios and concerns are unfolding across Chicago and in other markets hard-hit by the housing crisis. Well-capitalized, out-of-town private equity funds are scouring neighborhoods, paying cash for distressed single-family homes and renting them out. The opportunities are plentiful, enabling investment groups to profit from low home prices, rising rents and an increase in the number of potential renters.

The transactions are returning vacant properties to active use. But they also are stoking fears among neighbors and municipalities about the long-term effect of large, private investors — including many that are operating under the radar — in their communities.

"This scares the hell out of me," said Ed Jacob, executive director of Neighborhood Housing Services of Chicago Inc. "In this rush to say this is a new asset class, are we creating the next community development problem?

"You talk to them and it's all about neighborhood recovery. They all have the narrative down."

In April, housing research firm CoreLogic named the Chicago area one of the better housing markets for institutional investor funds. It cited the area's large number of foreclosures, which will increase the number of vacant homes, and the estimated rental income relative to the low cost of acquisition.

The general strategy of the companies is the same: buy low, make the necessary upgrades, fill them with tenants and then sell the homes in three to seven years. With companies and analysts anticipating projected returns of at least 8 percent, there also is talk of creating publicly traded real estate investment trusts.

"What this reminds me of is the dot-com boom," said Rick Sharga, executive vice president of Carrington Mortgage Holdings LLC, a California firm whose asset management arm is actively looking in the Chicago market. "That's what this feels like. Every investor in America wants to buy foreclosures and turn them into rentals."

Two statistics increasing that appetite are the homeownership rate and rental rates. Foreclosures, tight lending conditions and wary consumers have pushed down the nation's homeownership rate to 65.5 percent at the end of September, according to census data. Meanwhile, the percentage of vacant rental units has been on a steady decline since 2010 as more people opt for leases rather than mortgages.

Tighter inventories are pushing up rents. As of October, annualized rents in Chicago were up 7.7 percent, more than the national increase of 5.1 percent, online real estate site Trulia found.

But investors aren't flocking to all neighborhoods equally. Most want homes in desirable neighborhoods with strong area employment. They also look at the strength of local rules protecting landlords in disputes with tenants.

After vetting the tenant and securing a lease, property managers say they routinely drive by the homes and sometimes schedule inside inspections to protect their investment.

Weighing risks, rewards

It remains to be seen whether their expectations will be met. One problem with the business model is there's no performance track record to speak of. And as housing prices slowly recover, acquisition costs also will increase and cut into returns.

There also isn't any history on property management firms tasked with overseeing so many scattered-site rental properties. Any well-publicized mistakes involving poorly maintained properties or wronged tenants could taint investors' reputations.

That's one reason why big-name players are likely to avoid buying in neighborhoods where they fear a greater chance of eviction proceedings occurring.

"You make one mistake in those properties and you'll be toast," Sharga said.

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