On Tuesday, Jan 11, the Fremont City Council voted to join the California FIRST financing program. As reported in last week's issue, California FIRST is a voluntary program that provide loans to homeowners to finance energy efficiency upgrades. The loans are repaid through a special property tax assessment.

Recently the City of Hayward joined this program and Bay East staff testified in favor of the California FIRST program and urged Hayward to involve the REALTOR® community in designing and marketing the program. Bay East offered the same support and cooperation to the City of Fremont.

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On Friday, Jan. 15 NAR sources in Washington D.C. indicated that FHA is about to announce the following changes to its purchase finance programs.

Borrower Issues:

• Borrowers will be unable to finance upfront premiums;
• Seller concessions will be reduced from 6% to, possibly, 3%;
• Borrowers must have a minimum FICO score and their maximum loan-to-value ratio may be impacted by their FICO score; and
• Mortgage Insurance Premiums may be raised from their current 1.75% level.

Lender Issues: While the final lender eligibility rule has not been published, NAR is reporting the following proposed changes for FHA lenders:

• Increasing net worth requirements of lenders to $2.5 million over the next 3 years;
• 20% of lender net worth must be liquid assets; and
• Increased default monitoring by lender underwriters.

FHA will also be changing its risk management procedures; creating a lender scorecard and highlighting poor performing lenders on their website and in press releases. For more information please visit the NAR website by clicking here.

Remember .... "Dream Green" 

Considering Moving to the East Bay Area?    ~   Do you want to Buy or Sell a home?     

 Do you have clients with needs in the East Bay?     

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The San Leandro City Council adopted a Climate Action Plan (CAP) at their meeting on Monday (Dec. 21).

In response to significant input from Bay East members the Council removed the Residential Energy Conservation Ordinance (RECO) that was part of the original version of the CAP. The RECO was replaced with several alternatives that included incentives and financial assistance for property owners to perform energy efficiency upgrades. Unfortunately, a point-of-sale requirement was included as an option in the future. On a brighter note, the council directed staff to include REALTORS® in the implementation of the CAP.

The city council action on this item, while not a complete victory for REALTORS® and property owners, shows that our voice was heard in city hall. Special thanks to those Bay East members who sent e-mails, made phone calls, met with city council members and testified at the meeting.

Remember .... "Dream Green" 

Considering Moving to the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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On Monday (Dec. 21), the Livermore Historic Preservation Commission held the first of two meetings about establishing a Historic Preservation overlay zone. If approved, special regulations regarding additions, remodeling, paint colors and demolition would be applied to "historic" properties in the neighborhoods north and south of downtown Livermore.

A second hearing will be held Jan. 7. In the meantime, Bay East staff will work with the City of Livermore to determine which properties would be subject to the historic preservation zoning and its impact on private property rights and property values. 

You can review the staff report and proposed changes by clicking here. Please note, this report is very technical and lacks specific detail regarding the impact this zoning will have on specific properties. Bay East staff will work to clarify these missing details. 

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Considering Moving to the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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Good From Nov. 6, 2009 to April 30, 2010

Who is Eligible and for What:

First-Time Homebuyer (defined as a non-homeowner for the last three years)
A first-time homebuyer can obtain a tax credit of up to $8,000 of 10% of the purchase price of a home, whichever is less, depending on their income. For example, a $75,000 sales price would have a maximum credit of $7,500.

A) Single taxpayer: The income limit is $125,000. A partial tax credit can be given up to a maximum income of $145,000.

B) Joint filers: The income limit is $225,000. A partial tax credit can be given up to a maximum income of $245,000.

·  If either spouse has owned a home in the last 36 months, neither qualify for the tax credit.

·  A child (18 years or older) buying with a parent as a co-mortgagor is eligible as long as they meet the other requirements.

Current Owners

Current homeowners can obtain a tax credit of up to $6,500 if they have owned and occupied a primary residence for a period of five (5) consecutive years during the last eight (8) years. Income limits are the same as for first-time homebuyers.

Maximum Purchase Price
The maximum sales price of the property being purchased is $800,000.

New Deadlines

·  In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and must close no later than June 30, 2010.

·  Members of the armed forces stationed outside the U.S. on official duty for 90 days from January 1, 2009 to April 30, 2010 can sign contracts before April 30, 2011 and close before June 30, 2011.

More Eligibility Restrictions

No tax credit will be given to borrowers who:

·  Are buying their home from a blood relative (a step-relative is OK);

·  Are not using the home as a primary residence;

·  Are selling the home before the end of the year;

·  Are non-resident aliens;

·  Are getting home financing from tax-exempt mortgage revenue bonds (does not apply for a home purchased in 2009).

Remember .... "Dream Green" 

Considering Moving to the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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FHA has just issued a new Mortgagee Letter spelling out the new guidelines on condominiums. They are as follows:

SPOT APPROVALS: Due to the volatility of the condo market, FHA will allow spot approvals until February 1, 2010.

CURRENTLY APPROVED CONDOS: All currently approved projects stay on the list with these future requirements.

Projects approved before October 1, 2008 will require recertification on or before December 7, 2010.

Projects approved between 10-1-08 through 12-7-09 will have to be recertified within 2 yrs from the date of placement on the approved list. This will be the case on all projects approved going forward.

FHA CONCENTRATION: This is temporarily increased to 50% and up to 100% if certain requirements are met.

OWNER OCCUPANCY: 50% or more must be owner occupied or sold to people who will occupy. Vacant or tenant occupied REOs, including properties that are bank owned, may be excluded from the 50% calculation. 

Remember .... "Dream Green" 

Considering Moving to San Ramon or the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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On Tuesday, October 20 the Pleasanton City Council rezoned three vacant parcels in the Hacienda Business Park near the Pleasanton BART station to allow for mixed-use development. Two of the three parcels are located on Gibraltar Avenue across from the Sienna town home development. The third parcel is located on Owens Drive across from the Dublin/Pleasanton BART station.

The land is currently zoned for office, R&D, light manufacturing and allows for the development of six-story buildings.  The property owners now have the flexibility of building mixed-use developments which could include multi-story buildings with retail and services on the ground floor and residential units above. 

The Council action on Tuesday night only rezones the land - they did not approve any new development. According to our sources, there have been no plans for developing these parcels submitted to the City of Pleasanton.

Remember .... "Dream Green" 

Considering Moving to Pleasanton or the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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NAR is stepping up pressure on Congress to extend the $8,000 home buyer tax credit. Their strategy includes a nation-wide call-for-action which more than 450,000 REALTORS® have answered by either calling or emailing their elected officials. NAR is also placing ads in Washington D.C. newspapers and on the Wall Street Journal, New York Times, Washington Post and Google websites. 

Finally, NAR officials are meeting directly with congressional leaders. Earlier this week NARs First VP Ron Phipps testified in front of the Senate Banking Committee about the impact the Tax Credit has had on home buying activity in 2009.  You can read Mr. Phipps testimony by clicking here.

Remember .... "Dream Green" 

Considering Moving to the East Bay Area?    ~   Do you want to Buy or Sell a home?     

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Faced with a $4.2 million budget deficit, the Newark City Council will place a 3.9 percent utility tax on the November ballot. If approved by the voters the 3.9 percent tax will be applied to electricity, gas, telephone and cable television services. Revenue from the tax will pay for police and fire protection and other basic city services including street and park maintenance. Newark city staff claim the tax will generate approximately $2.6 million annually. Bay East has not yet taken a position supporting or opposing the tax. 

Remember .... "Dream Green" 

Considering Moving to the Newark or the East Bay Area?    ~   Do you want to Buy or Sell a home?     

 Do you have clients with needs in the East Bay?     

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On Thursday, July 30, the Federal Reserve Board's Truth in Lending "Regulation Z" took effect and applied new disclosure requirements for both new mortgages and refinancings.  Among other things, lenders must now provide good-faith estimates that include loan costs within three business days of receiving a loan application; a loan cannot close until a seven-day waiting period has ended; an updated disclosure must be provided if the loan's interest rate changes by more than 0.125 percent

The Mortgage Bankers Association has prepared a summary of Regulation Z which you may review by clicking here. 

Meanwhile, the Federal Reserve Board has already circulated extensive changes to Regulation Z, which are now out for a 120 day public comment period. To review the proposed changes as published in the Federal Register, please click here. 

Remember .... "Dream Green" 

Considering Moving to the East Bay or Tri Valley Area?    ~   Do you want to Buy or Sell a home?     

 Do you have clients with needs in the East Bay?     

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