Crist appeals to FEMA for drywall aid

TALLAHASSEE, Fla. - March 11, 2010 - Governor Charlie Crist directed Interim Emergency Management Director David Halstead to write a letter to Federal Emergency Management Agency (FEMA) Regional Administrator Phillip May regarding federal assistance for Floridians affected by defective drywall.

In the letter, the governor asks FEMA to "conduct a preliminary damage assessment related to the issue caused by the degradation of Chinese drywall used in homebuilding in Florida." According to the Florida Office of Insurance Regulation, "Homeowners' insurance does not cover the damages cause by the Chinese drywall."
 
"While the health implications remain under investigation, it is undisputed the Chinese drywall corrodes copper and other metal surfaces, causing the degradation of non-performance of wiring, plumbing, appliances and smoke detectors," the letter says.

While some cases have likely not been reported yet, the Florida Department of Health (FDOH), working with property appraisers in Florida's 67 counties, compiled a list of the problems. According to FDOH, 530 Florida homes meet the "threshold for being impacted. Further, county property appraisers in Florida have identified 2505 homes that have had their value adjusted downward based on damage from the presence of toxic Chinese drywall. An additional 846 claims for adjustment due to the presence of Chinese drywall are pending."

FDOH also compiled a list of the top 12 counties impacted by the presence of toxic drywall: Lee (86 cases), Broward (65), Palm Beach (63), Miami-Dade (57), Hillsborough (55), St. Lucie (50), Indian River (35), Sarasota (17), Collier (16), Manatee (13), Pasco (11) and Charlotte (10).

The complete letter is available online. 

Crist appeals to FEMA for drywall aid

TALLAHASSEE, Fla. - March 11, 2010 - Governor Charlie Crist directed Interim Emergency Management Director David Halstead to write a letter to Federal Emergency Management Agency (FEMA) Regional Administrator Phillip May regarding federal assistance for Floridians affected by defective drywall.

In the letter, the governor asks FEMA to "conduct a preliminary damage assessment related to the issue caused by the degradation of Chinese drywall used in homebuilding in Florida." According to the Florida Office of Insurance Regulation, "Homeowners' insurance does not cover the damages cause by the Chinese drywall."
 
"While the health implications remain under investigation, it is undisputed the Chinese drywall corrodes copper and other metal surfaces, causing the degradation of non-performance of wiring, plumbing, appliances and smoke detectors," the letter says.

While some cases have likely not been reported yet, the Florida Department of Health (FDOH), working with property appraisers in Florida's 67 counties, compiled a list of the problems. According to FDOH, 530 Florida homes meet the "threshold for being impacted. Further, county property appraisers in Florida have identified 2505 homes that have had their value adjusted downward based on damage from the presence of toxic Chinese drywall. An additional 846 claims for adjustment due to the presence of Chinese drywall are pending."

FDOH also compiled a list of the top 12 counties impacted by the presence of toxic drywall: Lee (86 cases), Broward (65), Palm Beach (63), Miami-Dade (57), Hillsborough (55), St. Lucie (50), Indian River (35), Sarasota (17), Collier (16), Manatee (13), Pasco (11) and Charlotte (10).

The complete letter is available online. 

Home Affordable Foreclosure Alternatives Program (HAFA)

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP is available at MakingHomeAffordable.gov.

HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks.

HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA:

• Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
• Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
• Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
• Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).
• Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
• Uses standard processes, documents, and timeframes/deadlines.
• Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a one-for-three matching basis).

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.

Florida Sales Report - October 2009

Existing Condominiums

•(1)     *Statewide figure includes data from the Naples Area Board of Realtors; it also includes data from the Marco Island
Association of Realtors.

•(2)     Data from the St. Augustine-St. Johns County Board of Realtors is not available.

Editor's note: Sales numbers represent totals of Realtors' closed transactions from local Realtor
boards/associations within the MSAs.

This information is based on a survey of MLS sales levels from local Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Realtors® and the University of Florida Bergstrom Center for Real Estate Studies.

Florida Sales Report - October 2009

Existing Condominiums

•(1)     *Statewide figure includes data from the Naples Area Board of Realtors; it also includes data from the Marco Island
Association of Realtors.

•(2)     Data from the St. Augustine-St. Johns County Board of Realtors is not available.

Editor's note: Sales numbers represent totals of Realtors' closed transactions from local Realtor
boards/associations within the MSAs.

This information is based on a survey of MLS sales levels from local Realtor boards/associations. MSAs are defined by the 2000 Census. Source: Florida Realtors® and the University of Florida

Who is Eligible
-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence ("repeat buyer"), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.
-The credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010. 

Types of Homes that Qualify
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify. 

Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

Tax credit extension passes House and Senate

WASHINGTON - Nov. 5, 2009 - The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it's very close to gaining a longer life.

The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama's signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.

Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.

Florida downpayment assistance

After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program - a downpayment and closing costs assistance program relating to the federal tax credit -automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund.

For more information on the Florida Homebuyer Opportunity Program, visit the Homebuyer Center on floridarealtors.org: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm

Also check floridarealtors.org for updates as they're released; and, after the tax credit extension becomes law, details on the new program.

October 30, 2009-(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn. 

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House. 

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate's proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. "We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan. "In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners." 

The current tax credit did little for the new-home market in September, the Commerce Department recently reported-news that took many industry analysts by surprise. Sales fell 3.6% from August and 7.8% from September 2008. Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers-credited with 357,000 sales of previously owned homes so far this year-would do the trick. Instead, sales of typically more expensive newly built houses slipped. "The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand," said Michael Feder, president of Radar Logic in New York, which tracks the market. 

"Since hitting rock bottom in March, demand is up 20 percent," said Joel L. Naroff of Naroff Economic Advisers in Holland, Pa. For Naroff, the robust rise in existing-home purchases-9.2% year over year in September-indicated that the housing market was not faltering. "Maybe the issue is supply, which fell to its lowest level in 27 years," he said. "Builders, at least those left standing, have been making sure they don't have any houses sitting around, and they have been very successful in controlling inventories." 

IHS Global Insight economist Patrick Newport echoed that, noting new-home inventories "sank for the 29th straight month to their lowest level since November 1982." Naroff maintained housing has recovered enough to stand without the tax credit, but Newport said that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop. 

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. 

(c) 2009, The Philadelphia Inquirer.

Distributed by McClatchy-Tribune Information Services. 

The National Association of REALTORS® (NAR) sent the following update this morning regarding the extension and expansion of the $8,000 First-Time Homebuyer Tax Credit being debated in Congress right now:

"We've heard from a lot of you this morning that saw news reports about the tax credit. The bottom line is that nothing has been voted on at this time.

Senate leaders of both parties, key Senate Finance Committee members and staff and Tax Credit Sponsors Sen. Chris Dodd (D-CT), Sen. Joe Lieberman (I-CT) and Sen. Johnny Isakson (R-GA) have agreed on extending and expanding the housing tax credit.

However, there is no agreement on how to attach this tax credit to the pending Unemployment Insurance bill or whether to offer the tax credit agreement on another bill or whether to bring the agreement to the Senate floor and vote upon it as a separate, stand-alone bill.

After Senate action¾if passed¾the legislation must still go to the House of Representatives for consideration. There are still a number of steps to take before anything is final."

NAR has shared the details of the provisions included in the Extended and Expanded Tax Credit agreement:

Amount: $8,000

Who: First-time homebuyers (same definition as current law)

Amount: $6,500

Who: Repeat purchasers who have used previous home as a principal residence for five of the eight previous years.

Income Limits: $125,000 for single filers/$225,000 for joint filers. Same for both first-time and repeat/move-up buyers

Limitation on cost purchased home: $800,000

Time Frame: December 1, 2009 to April 30, 2010, plus 60-day extension if binding contract is in place by April 30, 2010

Anti-fraud measures have been added.

PLEASE NOTE: NO VOTE HAS BEEN TAKEN IN THE SENATE. IF VOTED ON AND PASSED IN THE SENATE, THE BILL THEN MUST GO TO THE HOUSE OF REPRESENTATIVES FOR CONSIDERATION. 
 

REALTORS® should keep responding to our Call For Action by calling and writing their members of congress to support the tax credit extension. To send a Call For Action and for all the latest updates on the tax credit, please visit NAR's REALTOR® Action Center at www.realtoractioncenter.com.