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.

Whittier Bridge in Newburyport Need Repair

The Newburyport Current reported that the I-95 Whittier Bridge that spans the Merrimack River between Newburyport and AmesburyWhittier Bridge that spans the Merrimack River between Newburyport and Amesbury is a priority repair, according to State Treasurer Timothy Cahil.

Read the entire Newburyport Current article.

303-Unit Downtown Housing Complex to be Completed in Haverhill this Fall

According to the Newburyport News, the largest and most expensive housing development in city history is expected to have people living in it by October, Mayor James Fiorentini said. Forest City Enterprises of Cleveland is moving towards the completion of 303 1 and 2 bedroom upscale downtown apartments. The apartments are being built in old shoe factory buildings at the former Stoller building on Essex Street and the Lagasse building on Duncan Street.

The development is the 2nd in a Haverhill’s Chapter 40R Zoning “Smart Growth” district, approved by the City Council in 2007. Chapter 40R provides financial incentives to communities that help developers build affordable housing near transportation centers and existing urban infrastructure. Haverhill will receive a one-time payment from the state of $3,000 per new home built in the zone — more than $900,000 when the Forest City development is completed and fully occupied.

Read the entire Newburyport News article.

Rare fish Halts Haverhill’s Plan to Dredge Merrimack River

The Newburyport News reports that Haverhill’s plans to dredge the Merrimack River from Newburyport to lure more boaters downriver to its shoreline has been shelled by a fish (pun intended). The U.S. Army Corps of Engineers has ruled the Haverhill stretch, particularly the waters off the downtown area, cannot be dredged because the work would disrupt the spawning areas of the shortnose sturgeon, a prehistoric-looking creature that lays eggs among rocks that would be removed during dredging, federal officials said.

Haverhill is looking to add public boat docks and build a riverwalk along the downtown stretch of the waterway, as well as enact new zoning to make sure future development does not block views of the river or public access to it. Workers are expected to start building two sections of the boardwalk this summer.

Read the entire Newburyport News article.

Senior Housing proposed for Cherry Hill Industrial Park in Beverly

According to the Beverly Citizen, a national developer of senior housing plans to build a 238-unit complex in the Cherry Hill Industrial Park in Beverly. The 2-phase project needs a special permit from the Zoning Board of Appeals, which is scheduled to meet on June 24th at 7:00pm at the library on Essex Street to consider the plan.

Phrase 1 would be 118 independent living building on a 9.5 acre parcel and will include studio, 1-bedroom,and 2-bedroom units plus many other rooms such as large formal dining and other amenities and rooms. 15% of the units would be subsidized. The site plan calls for a 4-story, 118-suit building closest to Conant Street and 3 other 4-story buildings on the rest of the property. The entrance would be directly across from Axcelis Technologies’ driveway on Cherry Hill Drive (pictured right).

Read the entire Beverly Citizen article.

NAR Testifies in Support of Homebuyer Tax Credit

According to the National Association of Realtors®, The House Small Business Committee held a hearing on June 5th to review the impact of the housing crisis on small businesses and to discuss tax incentives that might help stabilize housing. NAR Treasurer Jim Helsel presented testimony urging that Congress act quickly to move to conference and send a final version of tax credit legislation to the President for his signature. In his comments, Mr. Helsel emphasized the importance of making the credit available for the purchase of any type of residential property that would be used as a principal residence. (The Senate version of H.R. 3221 allows the credit only for the purchase of foreclosed property.) In addition, he recommended that Congress raise the income limits the House imposes, particularly for those who file single returns.

The testimony also explored the importance of the so-called "small" individual investor and explained the importance of adjusting the exceptions to the passive loss rules so that more small investors will return to the market. The limits for the exception have not been adjusted since their original enactment in 1986.

Click here to read the full testimony.

View a side by side chart comparing the House and Senate provisions.

Fight Over Open Space Continues in Beverly

The Beverly Citizen reports that heated discussions over open space preservation in Beverly continue. The Open Space and Residential Design Ordinance (OSRD) requires new developments to set aside half the land for open space and work around slopes, wildlife habitats, scenic vistas and other natural features. This was passed by the City Council in 2005. A waiver has been requested by the developers of Beaver Pond Road. Changes approved by the Planning Board to OSRD law apply to a four-acre or larger parcel where three or more lots are created in the one acre zoning district. In the two-acre zoning district, parcels about seven acre or larger, where three or more lots are created , would fall under OSRD requirements. The Conservation Commission feels this may eliminate open space completely on some lots. Robert Buchsbaum chairman of the Open Space and Recreation Committee suggested the OSRD guidelines should not be amended until the city has more experience with the ordinance.

Read the entire Beverly Citizen article.

Governor Promises Money for Beverly Parking Garage

According to the Salem News, Governor Deval Patrick has promised Beverly that the state will help pay for a new parking garage near the Beverly train depot, an announcement that MBTA and local officials said means the long-awaited project will finally become a reality.

The Commonwealth is committed to spending the $11 million the state Legislature authorized four years ago for the Beverly garage. The MBTA will pay $4 million and the federal government will pay $3 million, MBTA General Manager Dan Grabauskas said.

Read the entire Salem News article.

First Time Homebuyers Find Help in Ipswich

The Salem News has reported that the Ipswich Planning Board is offering cash incentives for first-time home buyers.

First-time buyers can get up to $10,000 to help with their purchase, provided:

1. They make no more than $46,300 for a single person, $66,150 for a family of four
2. The property is in Ipswich
3. The purchase price is less than $250,000

The money can be applied to a down payment or to reduce the size of the mortgage.

Home buyers will need to act fast. This deal is only available through the end of June 2008.

For more information, click here or call the Ipswich Planning Department at 978-356-6607.

Fannie Mae Scraps Higher Downpayment Requirements

On Friday, May 16th, Fannie Mae scrapped its increased minimum down-payment requirement for homes in declining markets. This replaces a December policy that required a higher minimum down-payment if the loan was for a home in a market with declining real estate prices (not necessarily distressed areas). The government-sponsored mortgage financier said it will continue to require minimum downpayments of between 3%-5% for all loans that it guarantees.

Update on Beverly Commuter Parking Garage

Update on our May 21, 2008 post... according to the Beverly Citizen, Beverly officials are looking to seek proposals from local landowners to build a commuter parking garage near Beverly Depot.

Read the entire Beverly Citizen article.

NAR Takes Step Forward with National Property Database

At the September 17, 2008, the National Association of Realtors® Board of Directors authorized NAR to work with a technology company to create a Realtors®-controlled national database or “library” of property data that would provide members-only access to detailed information on all properties in the United States.

The repository, which NAR is calling a "digital library/archive," would be revenue neutral but could eventually be fee-based to cover operating costs. In a report preceding the vote, NAR CEO Dale Stinton emphasized that the repository will not be a national MLS. There will be no offers of cooperation or compensation, nor any attempt to create a national online marketplace for property listings. The database also will be accessible to REALTORS® only, with no consumer-facing components.

You can real more about the NAR National Property Database here.

NSAR meets with Congressional Leadership

On Wednesday, May 14, 2008, the President of the North Shore Association of Realtors®, Marilyn Jarvis, and President-Elect, David Kres, met with Congressman John Tierney (D-6th District), and aides for Senator Edward Kennedy (D-MA) and Senator John Kerry (D-MA).

Issues discussed including FHA and GSE reform, buyer tax credit, flood insurance, small business health insurance, and other legislative items.

Realtors® can get a brief overview of our message by clicking here.

Above is a picture of Marilyn and Dave's meeting with Congressman Tierney.