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.

Groveland ZBA to review proposal for 132 single-family homes Meadowbrook project Thursday night

According to the Eagle Tribune, the Groveland Zoning Board of Appeals will review discussions on the topic of the Meadowbrook affordable housing project its meeting on Thursday, June 26th. The ZBA will meet with members of the development team for the 132 single-family homes proposed by Meadowbrook Construction Corp. on land off Center Street.

Read the entire Eagle Tribune article.

Thursday June 26th Georgetown Conservation Committee Meeting

The Georgetown Record reported that the Georgetown Conservation Committee June meeting will be held on Thursday, June 26th, from 6:30-8:30 p.m., at Town Hall, 1 Library St., 3rd-floor meeting room. On the agenda will be the results of the Parker River Clean Water Association’s recent River Restoration Grant from the MA Riverways Program. This study observed the impact of Georgetown’s water supply withdrawals on annual base flows and seasonal flows in the upper Parker River.

Read the entire Georgetown Record article.

Transfer Tax Call to Action

Realtors®, this week Massachusetts Association of Realtors® President, Susan Renfrew put out a Call to Action to oppose proposed transfer taxes in Martha's Vineyard and Nantucket, which will likely be heard and voted upon by the State Senate this week (Senate Bills S. 2546 & S.2544).

Realtors® strongly oppose real estate transfer taxes as bad tax policy for the following reasons:

1. Community-wide Responsibility. A community wide responsibility should be paid for by the entire community. Property taxes are inequitable and discriminatory as it would single out a small segment of the population, specifically home buyers and sellers, to pay for a community-wide need.
2. Exclusionary & Unstable Revenue Source. Transfer taxes are exclusionary because it would increase the cost of home ownership and in effect create an additional barrier to entry for an already expensive part of the state. Further, the real estate market is highly sensitive to economic downtowns as sales may vary greatly from year to year.; therefore this tax would provide an unstable source of revenue for a current and ongoing community need. However well intentioned, the fact that a transfer tax may contain a "sunset" provision does not change the problematic nature of this tax scheme.
3. Subert Prop. 2½. The tax would subvert the voter approval process inherent in a Proposition 2½ override, in which voters can decide for themselves whether to increase their own property taxes. In fact, both islands have among the lowest property tax rates in the entire Commonwealth.
4. CPA, 40B, 40R, 40S. The Legislature has already given all cities and towns many equitable tools to create affordable and workforce housing through passage of the Community Preservation Act, Chapter 40R, Chapter 40S and Chapter 40B. These tools are available for all communities to use. According to information provided by the Dukes County Regional Housing Authority last year, 3 of the 6 communities on Martha's Vineyard did not have a single unit of 40B housing.
5. Foreclosures & Short Sales. Today's housing market conditions, with increasing foreclosures and "short sales," make transfer taxes even more detrimental to home owners. Because transfer taxes reduce one's equity, homeowners attempting to avoid foreclosure or selling their home for less than the outstanding mortgage – selling short – may face new burdens just to sell their home. For those with little or no equity in their home, these transfer taxes could force sellers to sell short or else, in some cases, face foreclosure.
6. Equity Stripping. It is important to remember that, unlike a home purchase which can be financed, payment of a sales tax CANNOT be financed. Such a tax would cost thousands of dollars at closing taken from the seller's proceeds assuming that the seller has equity in their home at the time of sale. In some ways, a transfer tax can be looked at as a type of municipal "equity stripping" of the value of one's home.
7. Voter Representation. Finally, the fact that Martha's Vineyard and Nantucket already have a significant transfer tax (2% of the sale price) in place for the acquisition of open space makes the argument for rejecting S.2546 and S.2544 even more compelling. Furthermore, most of the people who would pay this tax will not be able to vote on it. Many, if not most, of the purchasers who will pay this transfer tax are not residents of the communities of Martha's Vineyard and Nantucket.

For the preceding reasons, the NSAR Government Affairs Committee urges all Realtors® and like-minded citizens to contact your State Senator and urge them to vote “NO” on S.
2546 and S. 2544.

For comments/questions, please do not hesitate to contact us at governmentaffairs@northshorerealtors.com.

NAR Joins Senators to Introduce Small Business Health Options Program

The National Association of Realtors® reports that on June 10, 2008, NAR Treasurer Jim Helsel represented Realtors® at a bipartisan press conference introducing H.R. 6210, the Small Business Health Options Program Act (SHOP). H.R. 6210 is a House companion measure to the earlier introduced Senate small business health measure, S. 2795.

As proposed, the SHOP concept would offer tax incentives to encourage states to reform small group insurance markets and to make health insurance premiums more affordable for small businesses and the self-employed. It would also develop a nationwide insurance small-business purchasing pool that would still be subject to state insurance regulation to protect those who choose to participate.

In announcing its support for the Small Business Health Options Program (SHOP), NAR reiterated the importance of reforming the U.S. health care market for small businesses and independent contractors. In a recently conducted 2008 NAR Health Insurance Coverage survey, 82% of Realtors® believed the current health care system is not meeting the needs of most Americans, and 9 out of 10 Realtors® thought that the U.S. health care system should be reformed. Nearly a ¼ of NAR's 1.2 million members do not have health care insurance, and for most Realtors® without insurance, the reason is cost. NAR continues to meet with both Senate and House offices seeking additional cosponsors.

Click here for a Small Business Health Options Probram (SHOP) overview.

Chapter 40B Battles in Amesbury

The Boston Globe reported that Amesbury has appealed 2 recent decisions from the state Housing Appeals Committee, in an ongoing battle Amesbury has fought to prevent projects proposed under Chapter 40B, the Commonwealth’s affordable housing law.

The first project is a proposal to construct 269 townhouse condominiums on a 155-acre site off Kimball Road (Meadowbrook Estates).

The second proposal is a 56-unit rental development on a 10-acre site off Clark’s Road (Eagle Point).

According to the Globe, the recent rulings followed a decision by the Housing Appeals Committee against the city last October on another Chapter 40B project, a proposal to build 40 condominium units on Haverhill Road.

Read the entire Boston Globe article.