Last Blog Post - Redirected to new NSAR blog!

Hello,

The Government Affairs is happy to report that NSAR's new website is up and running! The North Shore Association of Realtors® Government Affairs blog will now be incorporated right into the main NSAR website so this will be the last blog post to this site.

For future NSAR Government Affairs news and information, please go to this site: http://www.northshorerealtors.com/government_affairs/blog/.

Thank you very much and happy holidays!

ALWAYS Identify the Square Footage Source in Your Listings

The National Association of REALTORS® recently reported on a lawsuit decided by the Texas Court of Appeals that all REALTORS® should pay attention to. In the case, the trial court and appellate court decided that a REALTOR® could be held liable for Misrepresentation and Deception Trade Practices (our version of c. 93A) for incorrectly listing a property's square footage on an MLS, that the REALTOR® obtained from the county's appraisal district.

The basic facts of the case are this:

• REALTOR® obtained a property's square footage from the county appraisal district.
• REALTOR® listed the property on MLS with this square footage, and the MLS automates the price/square foot (like MLS-PIN).
• The source of the Property's square footage was NOT a required field on this MLS, but testimony at trial showed that it was standard practice in the industry to identify this source. Because of a clerical error, THE SOURCE OF THE PROPERTY'S SQUARE FOOTAGE WAS NOT IDENTIFIED ON THE MLS LISTING.
• Buyers purportedly based their valuation (at least in part) in the property being listed under the average price/square foot.
• Buyers actually did their own search and verified the county appraisal's office sqaure footage number.
• Before the purchase, Buyers did sign a form provided by REALTOR® that said "I/we have not relied upon any statement given to me/us by the REALTOR and/or his/her associates with regard to the property, and my/our decision to make an offer on the property and to subsequently purchase the property is based on my/our independent decision with or without legal counsel." The form also said, "The Buyer is advised to verify all information important to him/her and to ask the appropriate questions of the appropriate authorities himself/herself or through an attorney with respect to important issues such as . . . size of structure . . . . Any statements with respect to problems or with respect to the availability or existence of any of these items which were made by the REALTOR and his/her associates were made based on information given to the REALTOR by the Seller/Owner and/or government agencies, and/or others, and there is no intention that the Buyer rely on the statements of the REALTOR and his/her associates, and the Buyer is urged to confirm any such statements on his/her own."
• In this case, Buyers actually lived in the Property prior to the purchase and even made making improvements to the house, including painting the interior walls and replacing the flooring in the kitchen and master bathroom.
• Following receipt of a copy of the lender's appraisal, which calculated the square footage as less than the that listed in the MLS, Buyers sued REALTOR® on misrepresentation, and deceptive trade practices and won.

Bottom line, ALWAYS, ALWAYS IDENTIFY THE SOURCE OF A PROPERTY'S SQUARE FOOTAGE WHEN YOU ARE LISTING A PROPERTY OR REPRESENTING A BUYER.

Click here to read the Texas Court of Appeals opinion.

New Green Lynnfield Townhouses

According to the Boston Herald, developer Linda Pizzuti has built a 20-unit Colonial-style townhouses, featuring the latest in Green technology. The complex, known as Pyburn Mews, is one of the North Shore’s first projects to receive both Energy Star and Leadership in Energy and Environmental Design (LEED) certification.

They are priced from $420,000 for 2-bedroom units to $580,000 for 3-bedrooms. Five townhouses will be designated as “affordable” will be sold by a special lottery. Pictured above is Unit 58, including eco-friendly elements such as strand-bamboo wood flooring, chemical-free carpeting, high-efficiency heating/cooling and Energy Star-certified windows, lights and appliances. Each townhouse’s garage even boasts a special outlet for recharging electric cars. Photo by Ted Fitzgerald.

Read the entire Boston Herald articile.

Foreclosure Prevention Workshop

The Eagle Tribune reported that the Haverhill Community Development Department and the Home Preservation Center of Lowell will be holding a foreclosure prevention workship on Wednesday Nov. 19th from 1 to 3 p.m., in Room 301 at Haverhill City Hall. Those who attend will receive free counseling on foreclosure prevention, how to avoid foreclosure scams, reducing credit debt, and managing finances. Participants are advised to bring relevant paperwork so counselors can help them more effectively.

Get Out and Vote!

Realtors®, today is election day. We encourage you all to do your civil duty and get out and vote. If you do not know where your polling place is, check www.wheredoIvoteMA.com.

Also, there are three ballot initiatives on the ballot.

• Question 1 would repeal the State Income Tax.
• Question 2 would decriminalize first offense possession of marijuana.
• Question 3 would ban greyhound dog racing.

Click here for additional information.

Haverhill’s Olympia Square Being Developed

According to the Eagle Tribune, The Federated Companies, a Boston real estate development firm, has bought the Pentucket Building, locates at the intersection of White and Winter street, at the edge of a struggling neighborhood known as the Acre, for $1 million. Francis Bevilacqua, grandson of former longtime Haverhill state Rep. Francis Bevilacqua, is a principal in the firm and said that his group plans extensive renovations and hopes to attract high-quality local and national retail stores. Bevilacqua said he hopes renovations will start in a month, and he thinks the job can be done by the beginning of 2009, barring weather problems. He said he has hired a local architect, Ronald Albert, and that local firms will do the renovations.

Read the entire Eagle Tribune article.

Free Energy Workshop in Haverhill

The Eagle Tribune reported that a free energy workshop will be held at the Northern Essex Community College Technology Center in Haverhill on Monday, October 20th from 6:30 to 9 p.m.

Michael Berry, an energy efficiency expert, will make suggestions on how to make homes more energy efficient using the latest methods and also, local home improvement specialists and suppliers will be on hand to answer questions. Additionally, information on energy audits, fuel assistance and other programs will be available.

The workshop is cosponsored by the City of Haverhill, Rebuilding Together, the Clean Water Fund, Community Action Inc., and MASSAVE. More information is available from Lynn Murphy at 978-469-0800.

15 Homes Planned for St. Patrick's in Groveland

The Eagle Tribune reported recently that a development group, Coming Home, Inc., has purchased teh St. Patrick's rectory and parish hall and plans to build 15 energy-efficient townhouse-style homes for families with an annual income betwen $30,000 and $80,000. A day care center is also planned on the property.

21 New Homes Planned around Haverhill's Renaissance Golf Course

The Eagle Tribune reported that new owner Southworth Development expects to build 21 new high-end homes around Haverhill’s Renaissance golf course. These homes will add to the 42 homes already built or under construction. According to the article, Haverhill's population has grown by 20% since 1990 to the current all-time high of 62,000 people. During that time, the city has experienced several housing booms, the latest being more than 700 apartments and condominiums being built or planned downtown.

The Renaissance property is located in one of Haverhill's most rural areas, between East Broadway and Kenoza Street. Renaissance is Haverhill's 6th golf course (five 18-hole courses and one 9-hole). It has 18 holes and a 30,000-square-foot clubhouse under construction. The Renaissance complex, sprawling across 197 acres, was touted as the best course in the region when it was built 3 years ago.

Read the entire Eagle Tribune article.

Federal Bailout Finally Passes

After passing through the Senate then the House of Representatives, President Bush signed an economic rescue bill today, which hopes to revive the U.S. financial system by allowing the federal government to buy up to $700 billion in failed mortgaged from banks and other financial institutions.

According to NAR President, Dick Gaylord, this historic legislation will help restore liquidity to the mortgage market, stabilize the housing market and protect home owners, and go a long way toward ending the current economic crisis crippling the housing and financial markets. President George Bush, along with congressional members, had lobbied throughout the week for the support of spending billions of dollars to buy bad mortgage-related securities from troubled financial institutions, as a way to ease the credit crisis.

The National Association of Realtors® strongly supported government intervention and teamed with eight other business organizations to run a full-page ad in the Wednesday edition of Washington Post and USA Today, urging Congress to pass a recovery plan. Click here to read the ad.

Click here to read why REALTORS® support the financial rescue bill.

Beverly Developer Planning 238 Senior Units

According to the Salem News, one of the country's largest developers of retirement homes wants to build 238 senior citizen apartments in five buildings in the Cherry Hill Industrial Park.
Holiday Retirement hopes to start construction on the $24 million project this fall.

Read the entire Salem News article.

Seller-funded Downpayment Assistance and New Housing Bill

The National Association of Realtors® reports that contrary to many reports, the Housing bill signed by the President on July 30, 2008, does NOT eliminate all downpayment assistance programs from eligibility for FHA insurance. Only those programs that are funded directly from the seller or other party to the transaction are prohibited. Downpayment assistance from family members, government programs, or charities that are not seller-funded is still permitted. The prohibition goes into effect October 1, 2008.

Click here to get the main points about the Seller-funded Downpayment Assistance Provision.

Click here to get a summary and history of the issue.

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.