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Government Issues


Senate Bill To Extend Closing Date For Tax Credit

A bipartisan effort among three Senators is seeking to extend the June 30th closing deadline for homebuyers taking advantage of the federal tax credit.  The bill would extend the closing deadline to September 30th if passed by Congress.  Read more: http://bit.ly/9U2znA

This bill will NOT extend the homebuyer tax credit, but would allow additional time to close for those who contracted prior to April 30th.

If you are in the market to buy a home and were unable to tax advantage of the federal tax credit, call Coldwell Banker Funkhouser Realtors and ask about the Coldwell Banker Buyer Bonus Program.  You can receive up to an $8,000 credit at closing for an accepted offer on a participating property.


New Lead Based Paint Regulations In Effect Today

EPA Issues New Regulations for Renovation, Repair and Painting Activities

Under the Residential Lead-based Hazard Reduction Act of 1992, Congress required EPA to develop regulations to address renovation, repair and painting (RRP) activities in single and multi-family housing built before 1978. The purpose of the new rule is to reduce children's exposure to dust containing lead paint created during the course of these activities. This rule goes into effect on April 22, 2010.

These rules require contractors and renovators to get trained and certified in EPA's new lead-based paint work practices. The rules apply only to licensed contractors – do-it-yourselfers will still be able to do RRP work on their own without being trained or certified and without getting fined.

View the National Association of Realtors Video:
http://link.brightcove.com/services/player/bcpid24483161001?bctid=24522351001


Key Points - Impact on Real Estate Professionals

Compliance responsibilities for real estate professionals under this new rule are minimal. However, real estate professionals with some property management activity and property managers may face some additional compliance activities.

There are no new disclosure compliance responsibilities, no new forms, or revisions to the existing disclosure forms. If any testing is done associated with any Renovation, Repair and Painting (RRP) activities, the results of that testing must be disclosed.

- The bulk of responsibility to comply with this new rule rests with contractors and remodelers. They must be trained and certified by EPA to conduct the new lead paint safe work practices while performing RRP activities in pre-1978 housing, by April 22, 2010.

- Only trained and certified contractors should be recommended to clients.

- For Realtors who also have some property management in their portfolio: if they do the RRP work themselves for properties that they manage, they need to be trained and certified in the new lead-paint safe work practices. If they hire outside contractors to conduct this RRP work for them, these contractors must be trained and certified.

- For property managers: in-house workers who perform RRP activities must be trained and certified in the new work practices. If they hire outside contractors to conduct this RRP work for them, these contractors must be trained and certified.

- All workers must be trained to comply with the new rules on April 22, 2010. Workers will not be "grandfathered in" if they are in the middle of a RRP project. Work on the project must stop and all workers must be trained before work can continue.

Exemptions: These rules may be waived under the following conditions:

  1. The home or child occupied facility was built after 1978.
  2. The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
  3. If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.
  4. If the property owner is conducting the RRP work themselves.

For additional information on this new rule, please go to http://www.realtor.org/government_affairs/lead_paint_main


Federal Administration forces banks to accept short sales

A new program from the Obama administration hopes to take a plunger to theshort-sale process by essentially forcing banks to accept less than theborrowed amount for a property. It will also pay those delinquent homeowners$1500 to help with relocation.

The idea is that a short sale isbetter for everyone -- banks, underwater owners, and communities. Banks willtake a hit, but less of one than if the home went into foreclosure. Homeownerswill take a credit hit, but, again, less than with a foreclosure. Andcommunities would avoid having empty, foreclosed homes sitting around.

This is economics on a grand scale,so -- despite what various talking heads say -- it's really impossible to knowif and how well this will work. But the Administration hopes it will be anotherfoot helping to kick-start the economy.

Read the fullstory at MSNBC.


New Zoning Ordinance Proposal in Bridgewater, VA

Bridgewater may see changes to its zoning ordinance soon that will limit the number of people allowed in a single-family home.  The ordinane will allow for 3.1 people per bedroom according to the Daily News Record.

A public hearing will be held on Tuesday, September 8th at 7:30pm.  The joint meeting of the Bridgewater Town Council and Planning Commission will take place at the Bridgewater Community Center.

For more information on the Town of Bridgewater, visit www.town.bridgewater.va.us/  or to view the current zoning ordinance click here.


Betting On The Market To Fail? (Part One)
If you have visited Las Vegas or Atlantic City, you may have legally betted on sports teams to win or lose.  Did you know investors on Wall Street have been making similar bets on the housing market?  This was once illegal until recently and could be the culprit in the financial crisis.

In 2000, Congress overturned a long-time law that once made these bets illegal.  The bets are known as "Credit Default Swaps" and are a way for investors to bet that certain financial instruments will fail.  At that time it was thought that deregulating Wall Street would open the financial markets and lead to greater propsperity.  Unfortunately this led to the prosperity of a select few who betted on the collapse of the markets, including the housing market.

CBS 60 Minutes covered this story on Sunday and offered great insights to how this came about, how this works and what should happen moving forward. 


Watch CBS Videos Online

If you are interested in learning more about Credit Default Swaps, check out the entry in Wikipedia.  In Part Two of "Betting On The Market To Fail?"  I will tell you about a new financial instrument that will allow you to make bets on the housing market!  Stay Tuned....

Meals Tax Round Two!
The Rockingham County Board of Supervisors introduced the Meals Tax back onto its agenda last night.  After much public dismay last year, the board has decided to give it a second chance.

The Daily News Record reports "If certified by the judge and approved by voters in November, county officials say the meals tax will raise an estimated $600,000 needed for operations at Cub Run Elementary, River Bend Elementary and East Rockingham High schools". 

What does this mean for real estate?
The county argues that this tax will help to alleviate its reliance on revenues from real estate taxes.  The meals tax will create income from visitors to our area including those vacationing at Massauntten and parents visiting their children at one of three local colleges. 

"There were a lot of people who didn't understand the meals tax the last time around," said Board Chairman Fred Eberly. "This is a way to avoid increases in property and real estate taxes and have people from out of town pay for it instead." - Daily News Record

It is yet to be seen if the meals tax will indeed relieve the county's reliance on local property owners, but anything to reduce the cost of owning a home in our area is a good thing. 

What do you think?


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