From the Baltimore Sun today we have this…
One firm that tracks apartments found a nearly 10 percent increase in rents among the snazziest complexes in the Baltimore metro area this summer, compared with a year ago. But that’s probably not the case for folks in rank-and-file units.
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October 27, 2010 – Home owners have two more months to take advantage of tax credits that can help them save energy and reduce their utility bills with more energy-efficient windows and doors, insulation, and heating and cooling equipment, according to the National Association of Home Builders (NAHB).
“Our members are ready to help consumers make the best choices for their homes, but home owners should act soon if they want to qualify for up to $1,500 in tax credits when they complete their 2010 income tax returns,” said NAHB Remodelers Chair Donna Shirey, a remodeler and builder in Issaquah, Wash.
“We think it would be a great benefit to both the environment and to our economy to extend these tax benefits, but they are scheduled to expire at the end of the year,” Shirey noted. “For that reason, NAHB suggests that home owners get the work done before Dec. 31, while the tax credits are still available.”
The tax credit for efficiency upgrades in existing homes (Internal Revenue Code Section 25C) is available for 30 percent of the cost, up to a $1,500 limit for 2009 and 2010, for the installation of certain types of insulation, windows, roofs, water heaters, heat pumps, air conditioners and furnaces. Details on the kinds of products that qualify and instructions for obtaining the credit are available at www.nahb.org/efficiencytaxcredit.
Other Important Efficiency Incentives
In addition to supporting efficiency upgrades to existing housing, NAHB continues to push for the return of the section 45L tax credit for new, energy-efficient home construction, which expired at the end of last year. The section 45L tax credit was the only federal incentive available for efficiency in new home construction; about 10 percent of all new homes sold in 2009 qualified.
A tax credit available under tax code section 25D is also available for equipment that uses renewable energy, such as wind, solar, geothermal or fuel cells. Like the 25C credit, the 25D credit can be used for up to 30 percent of the cost of qualifying products, but there is no lifetime limit and the program does not expire until the end of 2016.
NAHB continues to push for extension and expansion of a variety of energy-efficiency incentives in both new and existing homes, but the current political climate is making such advocacy efforts challenging. For example, the national “Cash for Caulkers” or Home Star program, which sought to create a $5 billion national energy efficiency rebate system, did not get approved by Congress this year.
“We understand that there are trade-offs and budgetary considerations for all these programs,” Shirey said. “Tax credits can take advantage of the existing administrative infrastructure – the Internal Revenue Service – to immediately get off the ground.”
To find a remodeler or other contractor to help you with your weatherization or home renovation project, contact your local home builders association at www.nahb.org/findanHBA. To learn more about the tax credit program, go to www.nahb.org/efficiencytaxcredit.
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RISMEDIA, October 27, 2010—A new home may have freshly painted shutters, a picket fence around it, and rainbow-colored flower patches leading to the candy-red door. But if the air quality isn’t good inside, those exterior niceties become insignificant—and—quite simply, you could get sick. “Sick building syndrome” (a term typically reserved for office buildings, but often interchangeably used with the term “sick house syndrome” when referring to private homes) is a combination of physical ailments—symptoms often include headaches, loss of concentration, general malaise and breathing problems. The cause: poor indoor air quality.
The less-than-clean air that contributes to sick house syndrome comes courtesy of a huge list of pollutants, which can be separated into three main groups: particles (lime and silica dust, lead paint chips, pet dander, carbon from burning fuels and candles, and mold and dust mites); fibers (asbestos, fiberglass, animal hair and carpet/textile fibers); and gases (such as paint and other caustic product solvents, and carbon monoxide).
These substances build up fast. They can either be inherent in the home, or tracked in on shoes and clothes (or via the family dog)—and they can adversely affect a person’s or family’s health. But don’t panic. Instead, take measures to reduce your exposure to the chemicals that cause sick house syndrome. Remember, this isn’t an exact science. Very few homes have absolutely no pollutants. The key is to reduce the number of pollutants as much as possible.
The following 11 steps will help you nurse your home back to health:
1. Use vacuums with HEPA filters. Your seafoam-green Electrolux from 1968 might be a swoopy retro design statement, but it’s not healthy to use anymore.
2. Use high-efficiency furnaces and hot-water heaters. Your local heating company can give you information on the newest, most efficient models.
3. Seal all gaps around your windows and doors. Some pollutants are tracked in on foot, but others float in through minuscule cracks.
4. Have your basement waterproofed to prevent mold from proliferating.
5. If you’ve been sleeping on your pillows for more than six months, there are probably enough dust mites on them to do the final dance number from a big Broadway musical. Change your pillows at least twice a year. And wash all bedding at least once a week—in hot water—to reduce the instance of allergens.
6. Avoid flannel pajamas as they contain synthetic fabrics that can house volatile compounds. While we’re on the subject of clothing—give all washable clothes you buy one wash, with Borax, before wearing.
7. When you’re buying your kids a toy, look for any labeling that indicates that Latex, neoprene or vinyl (PVC) is in it. If any of these substances are used, leave the item in the store. It’s not good for you—or your child.
8. When you’re done painting a room in your home, don’t store the paint for later use. Instead, write down the color name and number—most major paint companies have readily available touch-up containers in small sizes. (Similarly, don’t keep solvents, pesticides and fertilizers hanging around either).
9. Use doormats. Not only do they make people feel welcome—they whisk the germs off their feet before they have the chance to enter your home.
10. Whenever you can replace a porous surface with a smooth one, do so. A sleek leather rug collects fewer allergens than a loopy shag rug. Or, if you’re going low-budget—consider skipping the rug altogether.
11. Taking shorter showers is good for the environment, but it still exposes you to chlorine. Use a carbon filter on your showerhead to help reduce your exposure to chlorine and other harmful chemicals.
Charles Furlough is vice president, Pillar To Post Home Inspections.
For more information, visit www.pillartopost.com.
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From the Baltimore Sun today we have this…
Del. Tony McConkey admits violations in real estate deals
A state regulatory commission has suspended the real estate license of a delegate from Anne Arundel County, who admitted violating rules designed to protect homeowners during foreclosure proceedings.
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From the Baltimore Sun today we have this…
A union, tapping into discontent and anxiety about financial institutions’ record-keeping on mortgage matters, has launched a webpage helping borrowers “demand to see the original note” that shows who owns their loan.
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From the Baltimore Sun today we have this…
The Interview: Terri L. Ludwig, incoming CEO of Enterprise Community Partners
Inside the planned community that James Rouse built is an organization he founded to do what most people would consider impossible.
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RISMEDIA, October 23, 2010—(MCT)—If you’ve been toying with the idea of taking out a reverse mortgage, it is important to take into consideration that today’s market is significantly different from what it was just a couple of months ago. Monthly insurance premiums on new loans went up this month, making an expensive product even more so. But the Department of Housing and Urban Development has offset that rise by introducing another reverse mortgage—the Home Equity Conversion Mortgage Saver—which slashes the upfront cost. “It’s a mixed bag,” said David Certner, legislative policy director for AARP, of the reverse mortgage market.
A reverse mortgage is suited for older homeowners who have lots of equity built up in their home, but little cash and no other ways to increase their income. The amount you can borrow is tied to your age—you must be at least 62—the value of your home and the interest rate. And you can get the money in a lump sum, monthly payment, line of credit or any combination of these.
Unlike a traditional mortgage, you don’t make monthly repayments with a reverse mortgage. Instead, the principal, interest and fees add up month to month. The loan is repaid when you sell the house, move out or pass away.
High fees have been a major drawback of reverse mortgages. With these loans, you have many of the same expenses you do with any mortgage, such as an appraisal. On top of that, the origination fee on a reverse mortgage can be as much as $6,000.
You must also pay a monthly mortgage insurance premium for reverse mortgages that are federally insured, which is almost all of them. This insurance protects lenders in case a house ends up being worth less than the amount borrowed. It also covers borrowers in case a lender fails.
That monthly insurance premium for new loans went from an annual rate of 0.5% on balance to 1.25%. The premium was raised to protect the government—and ultimately taxpayers—from having to make big payouts to lenders because of falling house prices, Certner said.
The new Saver mortgage offers some relief, though, by substantially cutting one of the upfront fees.
With the standard reverse mortgage, borrowers must pay an upfront insurance premium worth 2% of the value of the property, up to a certain limit. That’s $4,000 on a $200,000 house.
The Saver loan’s upfront premium is 0.01%, or $20 on that same home. The trade-off is that you can’t borrow as much under the Saver program. For example, a 70-year-old with a $200,000 home could borrow up to $116,279 in a lump sum from a regular reverse mortgage, compared with $89,985 under the Saver loan.
The Saver mortgage with its lower fee is better suited for homeowners who don’t expect to remain in their home for long and don’t have a need to borrow as much, said Peter Bell, president of the National Reverse Mortgage Lenders Association.
Shop around for a lender, too, because some are waiving origination fees to encourage borrowing, Bell said.
Reverse mortgages are complicated, so much so that the government requires prospective borrowers to undergo counseling before taking out a federally insured loan. Here, too, there have been changes.
Starting last month, counselors must ask a series of questions to make sure homeowners know what they are getting into, said Barbara Stucki, a vice president with the National Council on Aging. If homeowners don’t understand, they won’t receive a counseling certificate needed to get a loan, she says.
Robert Nowlin took out a reverse mortgage on his Baltimore home three months ago and has no regrets. “We had been under stress from bills for quite a while,” said the 71-year-old, adding that his wife had been working two jobs to try to keep up. With the proceeds, bills were wiped out, Nowlin’s wife was able to reduce her hours at work and the old mortgage was paid off, which freed up $600 a month for the couple. And some of the leftover funds were used to take trips to Georgia and Florida, Nowlin said. The reverse mortgage, he said, “gives us some sort of peace.”
(c) 2010, The Baltimore Sun.
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From the Washington Post today we have this…
If you do not put your own house in order, the courts and the tax authorities may make decisions on your behalf (or on behalf of the estate) which may not be in anyone’s best interest. These decisions may also be contrary to your own desires.
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From the Baltimore Sun today we have this…
The taxman may cometh, but he does not call. Scammers are hoping some Baltimore County residents don’t know that.
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October 22, 2010 – The Federal Reserve’s new interim rule on appraisals is a welcome step in clarifying the home valuation process, according to the National Association of Home Builders (NAHB). NAHB has sought appraisal guidance that provides transparency in the appraisal process with sufficient flexibility to address the unique aspects of valuing new homes. NAHB will work with the Federal Reserve and other appraisal stakeholders to ensure the final rule fully achieves that outcome.
“The interim rule makes it clear that home builders and others can ask an appraiser to consider additional information about a property, including information about additional comparable properties,” said Joe Robson, NAHB’s Immediate Past Chairman and a home builder from Tulsa, Okla. “That’s critical to our members because in far too many cases we’re seeing appraisals based on inappropriate comparables.” Robson has been leading NAHB’s push for sound appraisal practices.
The Federal Reserve unveiled the interim rule on Oct. 18 and the rule will take effect 60 days after it is published in the Federal Register, with the Fed accepting comments on the interim rule during this period. Compliance is voluntary until April 1, 2011. The Fed’s action was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law on July 21, 2010.
“Many appraisers do not understand the impact of new code requirements, new green building practices and other aspects of new construction that add value to a home,” Robson said. “It is particularly important that home builders be allowed to provide appraisers with information to assist in appraising new construction.
“Accurate appraisals are critical to the residential construction industry because flawed appraisals can jeopardize sound projects,” Robson said. “In the current economic climate it is already difficult to find financing for acquisition, development and construction, or AD&C. One appraisal that doesn’t represent the true value of a property can start a chain of events that can put a builder out of business.”
The Federal Reserve’s interim rule also includes conflict-of-interest guidance, which prohibits loan officers and mortgage brokers from selecting appraisers. It also mandates the reporting of negligent appraisals and appraiser misconduct to the appropriate state appraiser licensing authorities and requires those seeking an appraisal to pay appraisers at a rate that is reasonable and customary in the geographic market where the property is located and that reflects the difficulty of the assignment.
“We think it’s very important that the compensation standards attract the expertise needed for complex appraisal assignments, such as those involving new construction,” Robson said.
“Builders, developers, lenders, appraisers and other stakeholders need a better understanding of what they can and cannot do” Robson said. “This interim rule offers much needed clarity, and NAHB will be offering comments in an effort to make sure the final rule provides guidance that recognizes all of the issues involved in appraisals of new homes and restores confidence in the appraisal process.”
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