IRS Issues Guidance on Tax Credit

According to the National Association of Realtors®, the IRS has released IR-2008-106, providing some guidance about how individuals who utilize the new $7500 first-time homebuyer tax credit will reflect the credit on their tax returns and receive the benefit from any refund. The notice reinforces the fact that taxpayers will definitely be required to repay the credit, starting with their tax return for 2010, which will be filed in 2011.

Click here to see more information on the Tax Credit IRS Guidance.

NAR Chief Economist's Commentary

Curious on what the National Association of Realtors® Chief Economist, Lawrence Yun, thinks about the Government reponse to the recent credit crisis? Click here to read his September 22nd commentary.

As you can imagine, NAR's Washington D.C. Policy staff is working with regulatory agencies and elected officials on Capitol Hill to alleviate the financial troubles and to assure a robust secondary mortgage market. Liquidity in the mortgage market is essential to the health of the economy. Click Here to Find the Latest News & Information into the Federal Government Response to the Credit Crisis.

Lynn Councilor Seeks to Tax Foreclosure Properties

The North Shore Association of Realtors® Government Affairs Committee has learned that Lynn Ward 4 City Councilor Richard Colucci has proposed a 10% real estate tax for foreclosed properties. Under the new proposal, the added tax would be billed beginning Jan. 1, 2009, and will be on top of any other taxes authorized by general or public laws. The tax would be calculated from the value of the property at the rate of $10 for every $ 100 of the value assessed by the city Tax Assessor.

The Lynn City Council also voted in favor of instating a law through the state legislature to place a lien on foreclosure properties with outstanding fines, so that each fine would have to be paid first before the home is sold.

Lynnfield Appeals Board Approves Colonial Village

According to the Peabody & Lynnfield Weekly News, construction is about to get underway on the 3rd LIFE (Lynnfield Initiatives For Elders) facility in Lynnfield. In many ways, Colonial Village will be a departure from the other two existing LIFE Villages – more expensive, with access from the Meadow Walk development instead of a public way and within easy walking distance to the golf course and the shops and restaurants to be developed at Meadow Walk. 48 units are planned; 36 garden style and 12 townhouse style to be completed in October 2010.

Details on Government Takeover of Fannie Mae & Freddie Mac

The Realtor® Association supports the Treasury Department's decision to takeovever Fannie Mae & Freddie Mac. The move is expected to have positive short-term benefits to the real estate market and open the door for the industry to shape the restructuring of each corporation. Fannie and Freddie own or guarantee almost half of the country's $12 trillion in outstanding home mortgage debt.

You can click on this link to see what the plan involves.

What are your RPAC $$$ Up to?

Realtors®, wonder what your Realtors® Politcal Action Committee (RPAC) contributions are supporting?

Click here to check out a recent podcast between National Association of Realtors® President, Gaylord and First Vice President Vicki Cox Golder, as they discuss the important role that the RPAC will play in strengthening REALTORS® political voices as we head into a crucial 2008 fall elections.

Groveland Historical Society Renovating Washington Hall

The Eagle Tribune has reported that Groveland volunteers are working to restore Washington Hall. When it’s complete, it will hold both a museum and a small theater. The town's Historical Society is renovating the historic building with money it received through the Community Preservation Act. Claire Walsh of the Historical Society said that it will be 4-5 years before the hall is open to the public.

Read the entire Eagle Tribune article.

MAR $7500 tax credit podcast

The Massachusetts Association of Realtors® recently posted a podcast that included a conversation with Anthony DeGregorio, Esq. about the new $7,500 first-time homebuyer tax credit.

Click here to download the podcast.

MBTA Receiving Garage Bids at Beverly Depot

According to the Beverly Citizen, 5 proposals have been submitted to build a parking garage near the Beverly Depot. The state has committed about $18.5 million to the project, in addition to $3 million in Federal money another $4 million in support from the MBTA revenue from parking fees. The bids are not public at this point. 100 letters went out to property owners within 80 feet of the Depot asking them to submit plans showing a property with enough room for a 500 parking garage to include retail, office and residential space. The T wants to complete the sale by March 2009 and have the garage open by 2011.

Read the entire Beverly Citizen article.

Key Provisions Housing Stimulus Bill

Recently, the National Association of Realtors® posted a good summary of key provisions of The Housing and Economic Recovery Act of 2008 (Housing Stimulus Bill - H.R. 3221).

Click here to see that link.

Realtors® Help Defeat Transfer Taxes

Good news for all Realtors®. The Realtor® lobby was once again successful in defeating a proposal to tax home sales on Martha’s Vinyard and Nantucket. Under SB2544, home sales over $750,000 on the Vineyard and $2 million on Nantucket would be assessed a 1% transfer tax.

Click here to read why Realtors® oppose transfer taxes.

Georgetown Historic House Tour on Sept. 27th

The Eagle Tribune reported that the Georgetown Historical Society is sponsoring a Historical House Tour on Saturday, Sept. 27, from 10am to 4pm. Tickets will be available mid-August for $20 at Sedler's Antiques, Theo's Restaurant, Meader's General Store all in Georgetown and Kay's Interiors in Groveland. All proceeds will benefit the continuing restoration of the Brocklebank Museum. For further information, call the Brocklebank Museum at 978-352-8526 or e-mail at info@georgetownhistoricalsociety.com or visit their website at www.georgetownhistoricalsociety.com

Read the entire Eagle Tribune article.

FHA Reform under Housing and Economic Recovery Act

With the recently-passed Housing and Economic Recovery Act of 2008, Congress permanently increased FHA loan limits to up to 115% of local area median home prices – capped at $625,000. According to NAR estimates, in Essex County this will increase FHA-insured loans to up to $481,500 (same as the Fannie Mae/Freddie Mac conforming loan limit).

Additional FHA reform included streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. Also, the downpayment requirement on FHA loans will go up to 3.5% (from 3%). Realtor® leadership strongly supports these reforms and feel that the new guidelines make FHA a stronger, more modern and flexible program.

New Housing Law Provides FHA Foreclosure Rescue

The recently-passed Housing and Economic Recovery Act of 2008 developed a refinance program for homebuyers with problematic subprime loans. Under the new law, lenders can write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008. This rescue plan is aimed at stabilizing the housing economy and preventing foreclosures.

Click here to see details of the FHA Foreclosure Rescue Program.

GSE (Fannie Mae & Freddie Mac) Reform Equals Increased Loan Limits

According to National Association of Realtors® estimates, the recently passed Housing and Economic Recovery Act of 2008 will increase Fannie Mae and Freddie Mac conforming loan limits by as much as $62,850 in Essex County, Massachusetts - from $419,000 to $481,850.

These reforms to GSE (Government Sponsored Enterprise) insured loans, which have Realtors® have actively lobbied for in the past several years, should stabilize the housing market and help ensure for safe, reliable mortgages for home purchasers.

Congress Moves to Reauthorize Down Payment Assistance

On July 31, 2008, Congress introduced bipartisan legislation, H.R. 6694 that would reauthorize and reform charitable downpayment assistance. This bill would remedy a provision in the new Housing and Economic Recovery Act of 2008 which eliminated charitable downpayment assistance funded in part by sellers. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms these types of programs.

The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers.

Understanding the $7,500 Homebuyer Tax Credit in the New Housing Law

One of the programs included in the new housing bill signed by President Bush on July 30th is a $7,500 homebuyer tax credit. While this tax credit has the ability to make the cost of homeownership more manageable, it is important to understand that this “tax credit” is actually an interest-free loan that is repaid over 15 years.

Below is a Q&A that summarizes the program’s features that was put together by the National Association of REALTORS®.

Q: What is the Amount of Credit?
A: 10% of the cost of home, not to exceed $7,500

Q: What properties are eligible?
A: Any single-family residence (including condos, co-ops) that will be used as a principal residence.

Q: Is the tax credit refundable?
A: Yes. It reduces income tax liability for the year of purchase. Claimed on tax return for that tax year.

Q: Is there an income limit?
A: Yes. The full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). The benefit of the credit phases out above those caps ($95,000 and $170,000, respectively).

Q: Is this program for first-time homebuyers only?
A: Yes. A portion (6.67 % of credit) has to be repaid each year for 15 years. If the home sold before 15 years, then the remainder of credit recaptured on sale.

Q: What is the effective date of the program?
A: The credit is good on home purchases on or after April 9, 2008

Q: When does the program conclude?
A: July 1, 2009

Q: What is the tax credit’s interaction with Alternative Minimum Tax?
A: The credit can be used against AMT, so credit will not throw individual into AMT.

President Signs Housing and Economic Recovery Act of 2008

Great news for REALTORS®! The National Association of Realtors® reported yesterday that President Bush signed into law the “Housing and Economic Recovery Act of 2008.” Passed by a vote of 272-152 by the House on July 23rd and by a vote of 72-13 by the Senate on July 26th, the bill is considered to be one of the most important pieces of housing legislation ever created. The bill includes a number of victories for REALTORS® and American homeowners including: GSE reform, FHA reform, permanent loan limit increases for FHA and Fannie Mae/Freddie Mac insured mortgage loans, and a $7500 tax credit for qualified home buyers.

Please click here to read a a summary from NAR of what the “Housing and Economic Recovery Act of 2008” includes.

Affordable Housing Applications in Haverhill

According to the Eagle Tribune, Community Action Inc. is accepting applications from low- to moderate-income residents over age 55 to buy new condominiums at the Fairways for the reduced sale price of $199,000 ($10-20k discount from the original reduced sales price). The Fairways is a 30-unit, 55+ garden-style condo development off Newton Road.

Applications are available at Community Action's main office at 145 Essex St. There will be no lottery. The homes will be sold on a 1st-come, 1st-served basis. More information is available from Richard Lynch at 978-373-1971.

Read the entire Eagle Tribune article.

Ipswich to Receive Funds through State PILOT Program

According to the Ipswich Chronicle, the town of Ipswich has won its challenge to the Department of Revenue's valuation of the land it owns in the town. A ruling by the Appellate Tax Board found the state owes Ipswich $60,000 for the years 2006, 2007, 2008 and 2009. Town Manager, Bob Markel, anticipates a struggle to get the state to pay for the earlier years, but he feels the town should at least receive $60,000 for 2009.

Read the entire Ipswich Chronicle article.

North Andover Police Station Site

The North Andover Citizen reported that a second option may be available for the site of the new North Andover Police Station. The Merrimack Valley Federal Credit Union Building at 1475 Osgood St., which was now on the market for $1.8 million, is also being considered for the new Police Station. Allen M. Lieb, Architects, who are slated to take on the project planned for the old Bradstreet School at an estimated cost of $8.37 million will also evaluate the Credit Union Building. Voters have approved $930 million for a new police station. Objections to the Credit Union site for not being central in town are countered by references to the anticipated growth on Osborn Street particularly at the former Lucent Technology Plant where apartments, affordable housing, shops, movie theatres, etc. are planned.

Here is the site of the first option.

Read the entire North Andover Citizen article.

Federal Reserve Issues New Lending Rules to Prevent Foreclosure

According to the National Association of Realtors®, the Fed. Reserve adopted new rules designed to protect homebuyers from the kind of loans that drove many into foreclosure. The new rules apply to all lenders (not just to banks supervised by the Fed) and most are expected to take effect Oct.1, 2009. Escrow requirements won’t go into effect until April 1, 2010.

Here are the new requirements:

1. Prevent loans made without documenting borrower’s income
2. Require lenders to escrow money to pay taxes and insurance for risky borrowers
3. Limit and/or ban prepayment penalties
4. Prohibit lenders from making a loan without considering a borrower's ability to repay a home loan from sources other than the home's value
5. Require mortgage advertising to contain information about rates, monthly payments and other features of the loan
6. Insist lenders credit a mortgage payment to a home owner’s account on the day it is received
7. Forbid mortgage brokers and others from "coercing or encouraging" an appraiser to misrepresent the value of a home

New Multi-family Inspection Fee in Beverly

According to the Beverly Citizen, a new fee of $125.00 will be charged in Beverly for inspections of at least 3-family housing for safety inspections. The inspections will be done at least every 5 years which was required and haven't been done. This was a result of the Gloucester Crossing apartment building fire earlier this year which was caused by uninspected, faulty wiring.

Read the entire Beverly Citizen article.

Construction on new Salem Courthouse

The Salem Gazette posted a picture of how Federal Street will look upon the completion of the J. Michael Ruane Judicial Center, near the intersection of Bridge Street and North Street, in Salem, MA. To make room for the new courthouse complex, the state plans to eliminate the existing District Court and Superior Court, as well as two houses that sit on the far end of Federal Street.

Read the entire Salem Gazette article.

Danvers Affordable Housing

The Danvers Herald reported in its June 19, 2008 paper that Selectman Gardner Trask will spearhead the formation of a permanent affordable housing subcommittee, after getting the go-ahead from Danvers selectmen on June 17th. Trask told the Board that the 2010 U.S. Census is likely to tabulate a larger population for Danvers, which means the town may need to provide more affordable housing.

Danvers reached the 10% affordable threshold last year, which means that it is currently immune to Chapter 40B developments. The results of the 2010 census could require Danvers to add an estimated additional 70 units of affordable housing.

The selectmen agreed to the formation of the Affordable Housing Planning Committee of about a dozen members, including 3 citizens. The selectmen also agreed to send a letter to the Danvers Zoning and Planning Boards, and the Danvers Diversity Committee to encourage them to look for opportunities to encourage affordable housing so that the town can meet the anticipated threshold.

Windover and MBTA to Work Together on Beverly Parking Garage

The Salem News reported that the president of Windover Development said that Windover looks forward to working with the Massachusetts Bay Transportation Authority to build a long-awaited parking garage near the train depot on Rantoul Street.

Read the entire Salem News article.

US Senate Passes FHA Modernization Bill

The National Association of Realtors® reported this week that on July 11th, the Senate voted 63 to 5 to approve the FHA Modernization Bill. It is the Realtor® position that HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure.

NAR believes that this bill is critical to restoring confidence in the mortgage and housing markets and the nation’s entire economy. But it isn’t complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President’s desk before the August recess.

The National, State and Local Association of Realtors® have lobbied hard to get to this point. Our strong involvement included face to face meetings between members and their Senators and Representatives in their home states as well as in Washington, DC – including the May Midyear Legislative Meetings. NAR generated more than 250,000 e-mail messages and phone calls urging Congress to take action on the vitally important Housing bill.

Chapman’s Corner Development in Bevely

According to the Beverly Citizen, the Beverly Planning Board approved a 27 house development at Chapman's Corner. The project will be called Manor Homes at Whitehall and will be located above a hill at Chapman's Corner (near the intersection of Hale and Boyles streets in the Cove). 27 houses are expected to be built and one 2-family. The houses will start at $750,000 – including two below market homes – and are expected to break ground in the fall.

Read the entire Beverly Citizen's article.

Lynnfield Commons starts construction while other 40B projects fizzle

According to the Peabody & Lynnfield Weekly News, construction will begin shortly on the 200-unit Lynnfield Commons rental development on Route 1-North, in the rear of the Flagship Motorcars dealership.

According to the article, Lynnfield had initially attempted to block this apartment complex by passing 3 smaller condo complexes under Chapter 40B, the state’s affordable housing “anti-snob zoning” law. Currently, the 3 developments are no closer to being build than the day the permit was granted.

Read the entire Peabody & Lynnfield Weekly News article.

Old Salem Jail to be Converted into Condos & Apartments

The Salem Gazette reported that the old Salem jailhouse, on the corner of Bridge Street and St. Peters, will be converted into 36 housing units – 14 condos and 22 apartments with 5-year leases.

Read the entire Salem Gazette article.