Have You Ever Had A Day Like This?

Habitat for Humanity and Realtors® Work Together Locally to Make A Dream Come True

On Saturday 6/ 21 Habitat for Humanity (HFH) dedicated a home located on Beal Avenue in Sidney. It was a wonderful event. Our very own Jacqlene Rose, past President of HFH of Delaware County is currently the NYSAR Housing Opportunities Foundation Director and she worked with many people to make this dedication possible.

Mariah Baron, a single mother of four children, was the recipient of the new home. The dedication was the culmination of a lot of incredible effort, time and love given by a lot of people. Local people and businesses dedicated substantial time, tools and supplies to help build this home. Habitat’s vision for providing housing to people is a phenomenal act of love and kindness which helps people like Mariah to see their dreams come true. Prior to the “build”, Mariah was a victim of the 2006 flood. As a result, she got by living in a camper trailer with 4 children, three of whom are teenagers.

When Mariah was chosen to become to recipient of the Habitat home on Beal Avenue, this gave her new hope and the ability to overcome great odds. She received extensive encouragement, counseling on homeownership and budgeting, as well as overwhelming support.

Cheryl Mirabito, the current President of HFH gave a short but wonderful speech and presented Mariah with a bible, which is a HFH tradition and does at every dedication. Andy DeForest, the Site Supervisor, spoke about how glad he was to participate in the “build” and see Mariah and her family blessed by it.

Invited to the dedication were Linda Page, NYSAR President and Mike Mendicino, President of NYSAR Housing Opportunities Foundation. Linda mentioned how wonderful it is that Mariah could receive her new home as a result of the loving efforts of HFH. Mike congratulated HFH for a job well done and presented Mariah with a check for $2000 given as a first-time-ever grant to help her with closing costs. Mariah’s pastor was at the dedication and prayed for Mariah, her family and their new home. Also present was Mwata Brown, the HFH of NYS Representative. Michele Stoeger, ODBR Executive Officer, and Ross Gill, President, were also present for the dedication. Steve Rose provided support typical of so many who are actively involved and make a difference yet are not readily seen. Steve also manned the BBQ at the dedication. Thanks Steve, those were awesome hamburgers!

It is very gratifying to see someone blessed by the efforts of so many. When Mariah spoke to everyone about what her new home meant to her, I don’t think there was a dry eye in the audience. When Habitat for Humanity and REALTORS® work together to help people achieve the American dream, there is something very powerful and inwardly very rewarding that happens. We as REALTORS® not only help people buy and sell real estate, we help build lives and dreams!

Lobby Day Proves To Be A Huge Success

On June 10th NYSAR sponsored its annual event knows as Lobby Day. On this day every year, REALTORS® throughout New York State converge upon Albany to meet with their legislators to discuss real estate issues and legislation that benefits, as well as hurts our industry, our clients and customers.

This year over 150 REALTORS® spanning from Long Island to Buffalo had their voices heard in Albany. I also attended on behalf of the Otsego-Delaware Board and met with State Senators Seward and Bonacic and Assemblyman Pete Lopez.

I can’t over-emphasis the importance of Lobby Day because of the unity, strength and focus our members provide on a number of very important issues at that time. Over 150 REALTORS® discussed with their legislators the importance of the Commission Escrow Act (which is pending legislation designed to protect your earned but unpaid commissions), Sex Offender Ban (proposed legislation to ban ALL sex offenders from holding or obtaining a real estate license), a call for decreasing real estate taxes (because citizens of NY have the dubious honor of having the highest tax burden per capita in the nation – more than 200% higher than the national average), First Time Home Buyer Savings Account (which would allow a $5000 per individual or $10,000 per couple tax deductible contribution toward the purchase of a first home). These were some of the many issues discussed by concerned REALTORs® on June 10th.

Since Lobby Day, more than half of the members in the Assembly have signed on to the Commission Escrow Act bill which brings the total number of sponsors in that house to 81, our strongest backing yet. On June 11th, the bill moved from the Assembly Judiciary Committee to the Codes Committee. This is very good news and so far this bill has not been stalled in committee.

Concerning the Sex Offender Ban, support increased for this legislation when nearly 500 e-mails from REALTORS® were sent to lawmakers leading up to Lobby Day showing our support for this important bill. These emails were in response to a “Call for Action” NYSAR sent to members. This legislation has since moved from the Assembly Judiciary Committee to the Codes Committee by an overwhelming vote of 19 in favor to 2 opposed. This is a huge victory because the bill has remained stalled in the Judiciary Committee since 2006.

Because of the current housing market and economy, momentum is gaining in Albany for substantive measures to be taken concerning school taxes and property taxes in NY State. With the participation of our members at Lobby Day, there was a clear signal sent to our representatives that REALTORS®, are fed up with ever increasing taxes which only hurt our state’s economic future and our real estate industry.

In prior years I’ve discussed taxes with our area legislators and received only vague assurances of their mutual concerns on this issue. Now, in 2008, there seems to be very widespread support for doing something real to reduce our tax burdens in this state. NYSAR has been faithful for years in trying to get our legislators to deal with soaring taxes. Because of our persistence, as well as the state of our economy, our concerns about high taxes are now being taken very seriously. Please read the article written by The Legislative Gazette dated Monday June 23rd, posted on the blog (http://www.odbr.blogspot.com/) titled “Governor Holds Legislators Feet to Fire Concerning Taxes” for more information about current legislative tax reducing proposals being made in Albany.

During Lobby Day, NYSAR’s President Linda Page had a chance to meet with Jim Tedisco, the highest ranking minority member of the Assembly to discuss the issues that are important to us. Linda also met with Secretary of State Lorraine Cortez-Vazquez who is in charge of the Department of State. As you can tell, events like Lobby Day help us meet with government leaders to get business done.

Every REALTOR® member should do whatever he or she can to help all of us to get things done in Albany. Your help in NYSAR's efforts to secure legislation designed to protect and help our customers and clients is vital . Your RPAC support as well as financial contributions are the reason we are having the successes we are having. Without your financial and moral backing our voice wouldn’t be heard. That’s why your assistance (in terms of financial contributions, response to NYSAR’s “Call to Action” and participation on Lobby Day) is so important. Thanks you for the support you have already given to RPAC and also to me and your RPAC Chairperson to keep you informed of the issues and to go to Albany on your behalf.

Does Your Agency Need The Office Linebacker?

NYSAR's Latest Legislative Efforts in Albany Gain Ground

As the 2007-08 legislative session winds-down, the following action on real estate related legislation occurred in Albany:

Commission Escrow Act (A.7519 Gianaris/S.4874 Volker)

Legislative support to strengthen the laws that protect earned but unpaid commissions continues to grow. More than half of the members of the Assembly have signed on to the bill including the latest addition, Janele Hyer-Spencer (D-Staten Island), which brings the total number of sponsors in that house to 81, our strongest backing to date. Following our consistent advocacy effort including member participation in online “Calls for Action," the bill was reported from the Assembly Judiciary Committee against the wishes of the chair by a vote of 19 in favor to 2 opposed. The bill is now in the Codes Committee. NYSAR will continue working with the bill’s sponsor, Assemblyman Michael Gianaris, to keep the momentum going toward reporting this bill to the floor of the Assembly.

In addition, NYSAR staff met with counsel for the New York State Consumer Protection Board this past week. It was a productive meeting in which NYSAR staff and counsel were able to address each of the concerns that were raised by the CPB. We were also able to clarify several points for the CPB as well as provide further information on how the act would work in practical terms. NYSAR concluded the meeting by reassuring them that our doors are always open and that we would be happy to answer any further questions they may have regarding our Commission Escrow legislation.

Sex Offender Ban (A.1269 Bing/S.1531Fuschillo)

REALTOR support of the legislative proposal to ban all sex offenders from holding or obtaining a real estate licensee was bolstered when nearly 500 e-mails supporting the bill were sent to lawmakers leading up to Lobby Day. The e-mails were in response to a NYSAR online “Call for Action,” which clearly resonated with lawmakers as the piece of legislation was ultimately moved from the Assembly Judiciary Committee to the Codes Committee by an overwhelming vote of 19 in favor to 2 opposed. This was a huge victory as the bill has remained stalled in the Judiciary Committee since 2006. Protecting the safety of their customers and clients is a top priority for members of the New York State Association of REALTORS. NYSAR will continue its efforts with Assemblyman Jonathan Bing in support of this measure with the ultimate hope of bringing it to the floor of the Assembly for a vote by the entire body.

Agriculture District Boundary Disclosure

NYSAR staff continues to work with Assemblyman David Koon (D-Perinton) and Senator George Winner (R/I/C-Elmira) to amend NYSAR-opposed legislation to extend the agriculture district notice to buyers or real property located within 500 feet of the boundary of an agricultural district. Current law requires notice just to those to properties either partially or directly located within an agriculture district.

Leaders reach agreement on foreclosure relief

Gov. David Paterson and leaders of the state Legislature announced an agreement this past week to revamp the state’s foreclosure laws. Under the agreement, lenders would have to give homeowners at least 90-days warning prior to initiating foreclosure proceedings, and they would be required to provide homeowners a list of local state-approved housing counselors. Additionally, lenders must make a “reasonable and good-faith” effort to determine whether an applicant can repay a loan and must meet with borrowers if they were to default and were facing foreclosure. The bill also includes new consumer protections that would require loan brokers to act in the borrower’s interest and present loans that are best suited to the borrower’s financial situation.

This article is taken from NYSAR's Governmental Affairs Update for 6/20/08

When Jed Smith Speaks We Need to Listen!

Who is Jed Smith? He is The National Association of Realtor's Managing Director of Quantitative Research. He recently posted an excellent podcast on the subject of recession which can be found on NAR's website at http://www.realtor.org/research/research/research_podcast_series.

I consider this to be one of the very best, as well as most important messages I've heard to date from any source anywhere concerning this topic. It is insightful, truthful, and right-to-the-point. It is very important for you, your clients and customers to know this. Please read this transcript and pass it on.

Here it is:

"Hello. This is Jed Smith, Managing Director of Quantitative Research, with the National Association of Realtors in Washington. I’d like to offer a few comments on some of the topics in the economic news in the past few days—particularly as related to how the economic news relates to the concept of a recession.

Today I would like to address some key questions on the recession topic. The purpose of my comments is to explain exactly what a recession is and then put the current economic situation in context.

The economic news has been mixed in recent days.
· For example, there is talk of continued credit problems in the financial markets and housing foreclosures, and a glut of unsold new homes.

· There was an announcement Friday morning that the unemployment rate is now up to 5.5 percent.

· There have been reports of weak car sales, particularly as related to pickup trucks and SUVs in the face of rising gas prices. Major automakers have announced cutbacks.

· Finally, you don’t need the news to tell you about rising food and gasoline prices. Gas prices in particular are at the top of everybody’s list of important economic news.

In recent months the economic news has lead to talk of recession—that is, are we in a recession or not, how bad can it get, and what does all of this negative news mean?

The National Bureau of Economic Research defines a recession as a significant decline in economic activity spread across the economy, lasting more than a few months, and normally visible in real GDP, real income, employment, industrial production, and wholesale and retail sales. These concepts are usually interpreted as the occurrence of two successive quarters of decline in the real Gross Domestic Product accompanied by an overall slowdown in the economy.

Next, let’s take a look at what actually happens during a recession. In previous recessions, the real Gross Domestic Product has fallen on average about 1.6 percent. Clearly this is not what we want to have happen, and the number is significantly below the positive 3 or so percent economic growth we would normally experience. One major reason that the word recession attracts a lot of attention is our memory—mostly from history books—of the Great Depression. Please note: a 1.6 percent decline in GDP is not the Great Depression. In terms of current conditions, however, we have had positive—although minimal—economic growth this year, and growth in the GDP in excess of 2 percent is forecasted for last two quarters of the year.

Taking a look at Employment, on average non-farm employment has fallen an average of 1.5 percent during previous recessions. In today’s economy, that would be a loss in the neighborhood of over 2 million jobs. This morning the news reported a loss of 49,000 jobs in May, and a year to date loss of 324,000 jobs this year. So far, we are not near a recession.
Taking a look at unemployment, unemployment has on average climbed to 7.6 percent during previous recessions. Unemployment was announced on Friday as climbing to 5.5 percent in May. Unemployment is normally in the 4 percent range as people shift jobs in the economy, so we are still not at a recession.

Finally, the average length of a recession has been 11 months, followed by an on average expansion of 64 months. Three of the four recessions since 1980 have been 8 months or less.

So to summarize the characteristics of recessions, it is clear that the economy declines a bit during a recession, and life is less pleasant. However, in no sense are we talking Great Depression, which is an image you might get when you read the newspapers and surf the Internet. Recessions are slowdowns, and there is no growth, and we tighten our belts at bit, and they are unpleasant. In recent years they have ended in 6 to 9 months.

In terms of the current state of the economy, GDP continues to grow, although very slowly. Sales of existing homes seem to be stabilizing or turning up in many local markets. Although the national numbers for real estate declines appear in the news on a continuing basis, we need to remember that all real estate sales are local, and well over half of the markets have increasing sales. Unemployment is a bit higher, but well within historic ranges, and inflation and interest rates are relatively low. What we have is a slowdown in growth, not a recession.

Looking to the future, NAR projections for 2008 and 2009 show positive growth for the next two years. A review of the data suggests that sales of existing homes should start to recover in the third quarter of this year, and that prices will be on an uptrend.

In conclusion, we are exposed to a lot of negative economic news these days in the press, the Internet, and on radio and TV. A lot of this has already impacted the housing markets, which NAR forecasts to recover. The major downsides to the projections are additional surprises from Wall Street, additional major developments in the energy markets, or some type of unknown that hits the economy unexpectedly. Otherwise, the data suggest no recession and a pending recovery in the foreseeable future as government stimulus, increased exports, and continued relatively low interest rates help the economy.

So, we’ve considered what a recession is, that the data don’t yet show one, and that the data indicate a return to a growing economy in the foreseeable future. Thanks for listening. "

Governor Holds Legislators Feet to Fire Concerning Taxes

This article is from The Legislative Gazette written by MARIA BRANDECKER - Legislative Gazette Staff Writer

Mon, Jun 23, 2008

Despite the results of a recent Siena poll that shows 74 percent of New Yorkers support Gov. David A. Paterson’s proposal for a property tax cap, leaders remain divided on the issue as the legislative session draws to a close with no real agreement on how to reign in property taxes.

But Paterson won’t let lawmakers get off that easy. The governor, at a press conference last Tuesday, said he would consider calling the Legislature back into session either this summer or fall if necessary and force them to take a stance on the issue during an election year.

“What I want to do is discuss with the leaders how serious this problem is and bring people back to Albany before the election since it’s an election year,” Paterson said.

“Let’s sit here for a few days during the summer or early fall and come up with a solution and let’s not do it because some mean governor made us come back here, let’s do it because it’s right.”

The governor was asked if he would follow in former Gov. Eliot Spitzer’s footsteps by visiting the districts of lawmakers who do not agree with him. Paterson said he does not want property tax relief to turn into a personal issue by singling legislators out and going into their districts. “What I am doing is seeing how publicly [legislators] are on the issue,” Paterson said. “Once you go into people’s districts, it’s back and forth and who said what about who, and that distracts us from the actual issue.”

Paterson, who introduced program bill 62 immediately following the release of a report by the New York State Commission on Property Tax Relief, is calling for an annual cap of 4 percent, or 120 percent of the Consumer Price Index, whichever is lower, on the school property tax levy.

The cap proposal suggested by the commission would limit the amount that the total property tax levy can increase from year to year and reconfigure the school budget voting process.

The program bill, which generally mirrors one of the main recommendations in the commission’s report, would require voter approval of any tax levy exceeding the cap and would apply to all school districts outside of New York City, Buffalo, Rochester, Syracuse and Yonkers.

“We are going to try as hard as we can to persuade those in Albany that this is the correct way,” Paterson said. “And one part of the dysfunction of Albany that we’re going to clear up is I don’t want to hear anyone say that any idea is dead on arrival in Albany.”

Paterson said he adjusted his program bill after hearing suggestions from opponents of a cap. In particular, Paterson said he was persuaded to include in his plan that all residents have the right to vote every year on their school budgets, even if the board of education proposes a levy increase of less than 4 percent.“

Time to display flexibility, time to display an ability to hear what other people are thinking, even if they disagree, and listening is what I’m doing,” Paterson said.

Senate Majority Leader Joseph L. Bruno, R,C,I-Brunswick, said the Senate majority is open to any alternatives that freeze property taxes or reduce them. Bill S.8522, sponsored by the majority leader, would implement “New York STOP Taxing Our Property” (NY-STOP) that would allow voters in a school district to publicly vote on whether school property taxes would be phased out over five years and be replaced with additional state funding. The bill was passed in the Senate last Wednesday and, as of press time, was in the Assembly’s Education Committee.

Under Bruno’s plan, school districts that enter into the optional system would be required to reduce residential real property taxes on homes by 20 percent annually until the tax is eliminated. The legislation gives voters in a school district the option of implementing a local tax cap by a petition and voting process. According to the Senate majority, this would allow localities to have the flexibility they need to address unique district-by-district challenges.

Over the next five years this bill would cost the state $11.7 billion, according to Bruno, who said funding for the initiative would come from existing revenue in the state budget. “We have increased money for education over the past years … if it’s a priority, we will prioritize our money.” Bruno said.

Even though the Senate passed this legislation last year, Bruno said the issue is even more relevant this year because property taxes are increasingly more oppressive.

“If you want to cap something, cap the escalating size of the budget,” Bruno said. In early March, the Senate passed legislation that would prohibit the governor from submitting a budget that would increase spending more than either 4 percent of the previous year’s budget or 120 percent of the consumer price index, whichever is less.

By the end of last week, Bruno’s spokesperson Scott Rief said the Senate majority leader is open to other alternatives that would reduce property taxes and could be open to a cap depending on what the legislation looks like.

Taking a stance apart from the governor’s tax cap and Bruno’s tax cut, Assembly Speaker Sheldon Silver, D,WF-Manhattan, remains concerned about how a cap would affect the quality of education in public schools. Critics of a cap argue a loss of revenue to school districts would greatly impact the amount of resources available to students in a school district, and as a result the quality of education would suffer.

“The commission talked about an under-commitment of state resources to shoulder in the classroom compared to other states,” Silver said. “This is one of the key concerns people who are not traditionally comfortable, like myself, can be comfortable with a tax cap if I knew those resources were getting to the classroom so that children will have the ability to learn and have the resources to learn with them.”

In addition, Silver pointed out the rising costs of heating school buildings and school transportation systems. “What is that solution in terms of resources?” Silver said. “We tell school districts only have school three days a week or bus children three days a week to their schools or do we find a state commitment?”

Assembly Minority Leader James Tedisco, R,C,I-Schenectady, said he supports a property tax cap and supports bill A.8775a, which would implement the New York State Property Taxpayer Protection Act. The legislation, sponsored by Assemblyman Michael J. Fitzpatrick, R,C-Smithtown, would limit the amount school district tax levies could increase each year. According to the bill, taxes levied for school districts would not exceed the amount of taxes levied for the prior school year by 4 percent or the rate of inflation, whichever is lower.

Selvena Brooks, downstate press secretary for Senate Minority Leader Malcolm Smith, D,WF-St. Albans, said the Senate minority leader supports the governor’s proposed property tax cap but thinks the cap should be set at 2 percent.

Brooks said Smith would be willing to go back into session over the summer to discuss the property tax issue at the governor’s request.

“We feel that it’s driving people out of the state, that even in an election year people are voting with their feet,” Paterson said, referring to property taxes in the state. “We’re loosing human capital, we’re loosing our sense of communities.”

Housing Relief Bill Threatened by Veto

The following article is from REALTOR® Magazine Online Edition- Daily Real Estate News dated 6/20/08.

A bipartisan coalition ignored a White House threat to veto a foreclosure rescue bill and voted 70-11 against an attempt to send the measure back to the Senate Banking Committee, which would have essentially killed the bill.

The bill was sidetracked by the news that Senate Banking Committee Chair Christopher J. Dodd (D-Conn.) and Senate Budget Committee Chair Kent Conrad (D-N.D.) got discounted home loans through a VIP program at Countrywide, the country’s largest mortgage lender.

The fact that the bill survived the effort to derail it makes it likely that there will be enough votes to override the veto President Bush is threatening, analysts say.

The bill would provide $300 billion in new, cheaper mortgages for distressed home owners who otherwise couldn’t qualify for fixed-rate loans. The bill also would tighten regulation of Fannie Mae and Freddie Mac, modernize the FHA, provide $4 billion to purchase foreclosed properties, and offer an $8,000 tax break to some first-time home buyers.

The administration opposes the inclusion of $4 billion to help states buy and rehabilitate foreclosed properties, and a plan to have Fannie and Freddie pay for the rescue.Supporters hope to push the bill through the Senate before Congress breaks for a weeklong July 4 vacation.

Source: The Associated Press, Julie Hirschfeld Davis (06/19/08)

Breaking a Cycle of Consumer Hesitancy

BY LAWRENCE YUN

Existing-home sales have been trending recently at an annualized pace near 5 million units, about the same as in 1998. Such a performance then was hailed as a milestone but we live in a different world now.

We have 25 million more people, 11 million more jobs, 22 percent more in annual household income, and 22 percent more in stock wealth (based on growth of the Dow Jones Industrial Index). Our mortgage interest rates are at historic lows, too.

A crisis in confidence is what’s keeping home sales from rising.

Households that can afford to buy today are making the rational decision to wait in the expectation that home prices will continue falling.

Unfortunately, they will be only too correct if Congress allows their expectation to become self-perpetuating.

Fortunately, our federal lawmakers have a tool under consideration that will break the vicious cycle of hesitancy that grips our markets: a homeownership tax credit for owner-occupying buyers.

The District of Columbia has used such a tax credit for years with great success. Several proposals in Congress would apply variations of it nationwide.

Just a few of the benefits of a $5,000 credit include more than 1 million new home owners and correspondingly fewer homes on the market, and upward momentum for home prices because of the reduced inventory. And this is a conservative estimate. House and Senate lawmakers are both looking at credits of at least $7,000.

Our economy is near a tipping point but the cycle of fear that grips our housing markets can be broken with passage of this modest tax break for home buyers.

Lawrence Yun is chief economist of the NATIONAL ASSOCIATION OF REALTORS®.

This article is from REALTOR® Magazine Online Edition - Real Life: Economy published 6/1/08.

Announcement: New Feature Added to Blog

6/17/08- A continuous and updated feed of economic & housing research/news straight from NAR is now a permanent component of this blog! You will find it on the front page of this blog located on the right side margin titled " The Latest Economic/Housing Research Headlines from NAR".

This feed of research and news will give you the latest updated info. straight from NAR's economists - including our very own Lawrence Yun - the 5th most accurate Economist according to USA Today!

To view any of the topics provided by this feed simply click on the title for each news item.

Enjoy!

-Ross

Mostly Good News Positively Affects Stock Market Late Last Week

High Speed Communication for Success

Often You Have the Means To Overcome the Obstacles and Don't Even Know It!

Diversity: Life Lived Outside the Box

Top 10 Home Features Desired By All Home Buyers

According to the 2007 NAR Profile of Buyer's Home Feature Preferences, the following are the top 10 features buyers want in a home:

1. Central Air Conditioning
2. Garage (2 or more spaces)
3. Walk-in closet in master bedroom
4. Backyard/play area
5. Cable/Satellite TV-ready
6. High-speed Internet Access
7. Separate shower enclosure in master/main bath
8. Patio
9. Fencing
10. Home less than 10 years old

Recession - Are We Really Headed for One or Already in One??

NAR's Managing Director of Quantitative Research Jed Smith outlines what a recession is, what it means, and whether or not our economy is headed for one in a very well done podcast.

Just copy and paste the following URL link below in your web address bar:

http://www.realtor.org/research/research/research_podcast_series

REALTORS® Join Congress in Urging Reform of U.S. Health Care System

According to an article written by NAR dated 6/10/08- The National Association of Realtors® joined a bipartisan group of members of Congress today as the U.S. House of Representatives introduced legislation designed to make insurance more available and affordable for the 47 million employees of the nation’s 5.8 million small businesses and more than 14 million self-employed individuals. 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 percent of Realtors® believed the current health care system is not meeting the needs of most Americans, and nine out of 10 Realtors® thought that the U.S. health care system should be reformed. Nearly a quarter of NAR’s 1.2 million members do not have health care insurance, and for most Realtors® without insurance, the reason is cost.

“More than half of all Realtors® report that the current health care system is not meeting their needs or those of their family,” said NAR Treasurer James L. Helsel, Jr., who spoke at today’s press conference. “NAR joins with these members of Congress today because this issue is substantial and meaningful, and it affects Realtors® and other small business employees and independent contractors all across our country every day.”

As proposed, SHOP 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. The House bill is a companion to the SHOP legislation introduced by the Senate in April.

“We believe that the legislation introduced today is a big step forward in addressing the challenges facing our members, and we thank Congressmen Ron Kind, D-Wisc.; Phil English, R-Penn.; John Barrow, D-Ga.; C.W. Bill Young, R-Fla. and other distinguished members for their leadership,” Helsel said. “We appreciate that Congress recognizes that small businesses need help navigating health insurance markets and have created a role for trade associations to help guide their self-employed and small business members through the process.”

NAR supports the House-introduced SHOP concept and believes that the proposed program will offer more choices and lower costs for the self-employed and small businesses.

US lawmaker targets Housing Rescue Bill by July 4

According to a recent article on NYSAR - A bill to prevent thousands of homeowners from foreclosure is still on schedule to proceed to President Bush for signature prior to July 4.

While Senate Banking Committee Chairman Christopher Dodd and other legislators have stated for weeks that they want to reach a compromise on a final bill and send it to Bush by that date, the full Senate still has not voted on legislation approved by Dodd's committee in May. The House also sanctioned its own bill in May.

As composed, the Senate version would establish a new, $300 billion federal mortgage insurance fund that could protect a half-million borrowers from foreclosure. Lenders would have to forgive part of the initial loan amount to take part. In addition, the legislation would create a stricter regulator for mortgage-finance agencies Fannie Mae and Freddie Mac.

Congress is attempting to stop a slew of foreclosures predicted to impact 1.4 million households in 2008 as home values decline and mortgage borrowers fail to meet payment obligations. Although the House bill is similar to the Senate's, how to bankroll the insurance fund remains a point of contention.

Reuters (06/09/08) Drawbaugh, Kevin

New York State Commission on Property Tax Relief Makes It's Much Anticipated Report

By MARIA BRANDECKER

Legislative Gazette Staff Writer

Mon, Jun 9, 2008

After an initial delay, the New York State Commission on Property Tax Relief released its highly anticipated report June 2, with recommendations it said should save taxpayers money and address the causes of high property taxes by reforming policies for new and existing mandates.

The report included three main suggestions: adopt a property tax cap, institute a “circuit breaker” and reform state mandates on local governments and schools through legislation.

The commission was created by former Gov. Eliot Spitzer who appointed Nassau County Executive Thomas Suozzi as chair. The commission was given the task of examining unfunded state mandates, the causes of high property taxes, the impact of increased state aid and existing property tax relief programs, and the effectiveness of property tax caps in other states and potentially in New York.

In addition, the commission was given the task of finding an effective way to impose a limit on school property tax growth without impacting the ability of a school district to provide a quality education.

Since February, the six commission members heard testimony from taxpayers, school board members, school superintendents, elected officials, business leaders, representatives of teachers’ unions and policy experts on how to lower property taxes.

Suozzi said there are only three ways to address rising education costs: decrease expenditures, increase state aid to school districts or continue to increase property taxes.

According to the commission’s report, New York spends more per student on primary and secondary education then any other state. The report shows that in the 2008-2009 school year, the state will spend an estimated $18,768 per student, outside of New York City, Buffalo, Rochester, Syracuse and Yonkers.

In addition, the annual growth rate of school expenses increased from 4 percent to 6 percent and is estimated to be as high as 7 percent in the 2007-2008 fiscal year.

The primary sources of school funding are local property taxes and state funding. According to the report, New York’s percentage share of school funding is below average. In 2005-2006, 53 percent of school funding, excluding New York City, came from local revenue, 43 percent came from state funding and 4 percent came from federal aid. The commission found that the state’s share of school funding over time from records reaching back to the 1940s consistently tracked lower than the national average.

However, the report also concluded that the state’s contribution in dollars to school funding is relatively high. Since the state is spending more money per student, the burden is falling onto local and state taxpayers. The report also indicated that the state’s funding until 2007 had not kept up with increasing expenses.

In order to address these issues, the commission suggested the Legislature implement a school property tax levy cap. A cap would limit the amount by which the total property tax levy can increase from year to year. The commission recommended setting the cap at 4 percent or 120 percent of the consumer price index, whichever is lower.

If the maximum tax levy increase permitted under the cap is not used in a year, the unused portion could be “banked” and used another year to increase the levy up to 1 ½ percent above the 4 percent cap.

The commission suggests that school districts would no longer have to submit their budgets to the voters in years when the tax levy growth does not exceed the cap. If growth does exceed the capped amount, it would be subject to voter approval. As a result, the current school budget voting process would be replaced by a cap override vote.

The votes required to override the cap would be based on state aid growth by district. If the annual growth for a district is at least 5 percent in the current year the vote needed to override the levy cap would be 60 percent. If the annual growth is less than 5 percent, a 55 percent vote would be needed to override the cap.

Under the commission’s recommendation, taxpayers could vote to “underride” the increase and keep the levy growth to a level beneath the cap.

Suozzi said after a cap is adopted, the commission recommends a “STAR circuit breaker.” A “circuit breaker” would provide relief to individuals by limiting the percentage of household income that could be spent on property taxes annually.

The Basic STAR, Enhanced STAR and Middle Class STAR are programs that provide homeowners property tax exemptions supplemented by state funding. The commission found several fundamental problems with the various STAR programs but suggested the benefits most taxpayers receive from the programs should remain and at least $2 billion of the existing STAR program should be transitioned to income based relief, which the circuit breaker would provide.

The commission said there should be a careful review of all existing individual property tax exemptions to see whether they still make sense and are fair. The report stated if any changes are to occur they should not sacrifice the benefits of the middle class taxpayers because they need it the most.

Based on the commission’s recommendations, the circuit breaker would be limited to the primary residence of individuals, eligibility would be phased out for those with higher income and property values and benefits would be income based. Any excess amount paid by a household would be partially reimbursed by the state. However, the reimbursements could be only a portion of what was overpaid to ensure people living on expensive properties are paying their share.

Sen. Elizabeth Little, R,C,I-Queensbury, and Assemblywoman Sandy Galef, D-Ossining, have already introduced legislation (S.1053a/A.1575a) that is similar to the circuit breaker recommendation.

Also suggested by the commission is altering new and existing mandates and a call for no new legislative mandates and no new regulatory mandates from the state Education Department without a complete accounting for the fiscal impact on local governments, which must include full documentation, local government input and proposed revenue sources to fund new mandates.

In addition, the commission recommends an annual report be conducted by the state comptroller’s office explaining the cumulative cost to localities complying with all new regulatory and legislative mandates. According to the commission, this would help increase accountability.

The commission also recommends amending the Triborough provision of the Taylor Law to prevent teachers who are working under expired contracts from receiving salary and benefit increases until new contracts are negotiated.

The Taylor Law regulates union negotiations between public employee unions and public employers in the state. The law contains the Triborough amendment which makes it an improper practice for a public employer to “refuse to continue all the terms of an expired agreement until a new agreement is negotiated.”

The commission suggests that a single unit at the state Education Department be responsible for all existing school district reporting. The unit would be responsible for streamlining and consolidating all reporting. The report states because of overlapping state and federal requirements, school districts must prepare numerous and sometimes redundant reports.

Before the commission releases its final report in December, it suggests that a tax relief task force on mandates undertake a review of existing school district mandates. This process would involve collaboration among representatives of school districts, state Education Department and lawmakers.

The commission recommends temporarily suspending school building aid for new projects in districts identified for potential reorganization. This would prevent new building projects from being launched during a period consolidation is being contemplated and would end when the decision on consolidation has been made. The districts would be identified either by a Boards of Cooperative Educational Services school district restructuring committee or by the commissioner of education.

The commission also suggests repealing the Wicks Law or dramatically increasing its monetary threshold. Schools and municipalities have long complained Wicks Law requires multiple contractors for capital projects which increases their costs substantially. Legislation was introduced this session to increase the threshold for Wicks Law.

The commission also suggests consolidating non-instructional and purchasing services through BOCES. This would encourage the use of BOCES for back office school district operations such as payroll and purchasing. Using BOCES back-office services could be a cost effective way for school districts to perform operational, management and other non-educational functions.

In addition, each BOCES region should create a committee to evaluate potential restructuring opportunities including consolidation of districts.

The commission recommends consolidating property assessment and property collection at the county level. This would eliminate tax shifts resulting from changing equalization rates within the county, improvement in assessment accuracy resulting from more regionalized data analyses and market monitoring and specialization of staff for specific types of properties.

The commission recommends that school districts be required to report on union negotiation outcomes to the governor’s office of employee relations. These outcomes would be summarized by the governor’s office in an annual report to the governor and Legislature.

In addition, the commission recommends that school districts be required to report on collective bargaining outcomes in their annual school budget presentations to the voters in a manner that clearly and transparently informs the public of those outcomes and attendant costs.

This article along with others like it on the subject of New York State Government can be found at http://www.legislativegazette.com.

Everyone Needs a Trunk Monkey - Do You Have Yours?

Quote of the Week

"Overnight sensations are usually not really overnight sensations. They’re people who worked very hard in a structured and methodical way to get where they wanted to go."

-Thomas Schweich: attorney, author, and esteemed risk-avoidance lecturer

Terry Watson Takes the June Education Seminar by Storm!

The Otsego-Delaware Board of Realtors® June Educational Seminar held on 6/11/08 was a huge success. Terry Watson was this year's featured speaker. Terry was our featured speaker just a few years ago and was back this year by popular demand.

Many agents in the last few weeks told me they were really looking forward to seeing Terry again. 155 REALTOR® members attended the seminar. Terry taught two 3 hour courses. One was called "Working With Consumers - Generation X". The other was called Think Globally - Sell Locally".

One thing about Terry is that he never leaves an audience bored. His presentations today were packed with both tons of truly useful and up-to-date marketing strategies as well as lots of gut-splitting humor.

I'm not kidding when I say that he is definitely the best speaker our board has ever featured in my opinion. He was truly awesome.

Members at the seminar told me that if they only implemented just one or two of his strategies it would benefit them and boost their businesses. I was also told that he offered a number of suggestions that many members had never heard of before.

If you missed seeing Terry at the June seminar, you really missed a rare opportunity. However, if you missed him and are curious to know what he is all about, you can see a few video clips showing this phenomenal man in action at the following page on his website:

www.terrywatson.com/About_Terry/Videos.asp

Also, you may want to check with a agent who attended the seminar to fill you in on what he said - provided they are willing to share what he taught.

Yes, it really was that good!

FHA Loans Gaining Popularity

According to REALTOR® Magazine Online edition Daily Real Estate News dated 6/11/08:

As lenders toughen their standards, loans by backed the Federal Housing Administration are increasingly popular.

The number of FHA loans issued rose 126 percent in the first quarter of 2008, compared with the same period a year ago. Most of FHA's business now comes from refinancing.

The volume of FHA loans at Wells Fargo has increased 342 percent this year from the same time in 2007, says Greg Gwizdz, the company's national retail service manager. Helping increase business were live simulcasts for real estate professionals that the lender recently held in movie theaters nationwide touting the benefits of FHA loans.

Only borrowers who can make at least a 3 percent down payment or have at least 3 percent equity in their homes and who can document their income can qualify for FHA loans.

Guy Cecala, publisher of Inside Mortgage Finance, says FHA paperwork remains daunting and the rates aren’t always the lowest.

“But if your choice is vanilla ice cream or no ice cream, vanilla starts looking good," he says.

Source: The Washington Post, Dina ElBoghdady (06/10/08)

Some Home Owners Opt to Buy and Bail

The following article is taken from REALTOR® Magazine Online edition Daily Real Estate News dated 6/11/08.

Some borrowers who are struggling to pay their mortgage and are dealing with big drops in property values are avoiding their problems by committing what some call fraud – and others call smart.

These owners are using their good credit rating to buy a second home at a lower price, assuring the lender they’ll rent out the first. But what they really end up doing is walking away from the first home, leaving the lender holding the bag.

Lenders call the phenomena “buy and bail.”

In some cases, real-estate practitioners and brokers who see nothing wrong with it coach home owners through the buy-and-bail process. Some blame the phenomenon in part on lenders' unwillingness to cut deals or restructure loans made when home prices were inflated.

"It's just a business decision," says Linda Caoili, a Sacramento real-estate practitioner. "If you're upside-down $250,000, why would you keep it? It just doesn't make sense."

The trend may be short-lived. Under revised Fannie Mae guidelines, which could take effect next week, loan applicants who claim they will rent out their first home will have to produce supporting evidence, including an executed lease agreement. Borrowers also will have to prove that they can pay the mortgage, property taxes, and insurance for both residences. The guidelines will make an exception only for borrowers who have at least 30 percent equity in their current home.

Of course, some individuals still can qualify for that second loan because of a strong credit and cash position.

Source: The Wall Street Journal, Nick Timiraos (06/11/08)

States Move to Cut Property Taxes

This article is taken from REALTOR® Magazine Online Edition Daily News dated 6-11-08:

Even with declining home sales and rising foreclosures shrinking local tax bases, a number of state governments are either capping or cutting property-tax rates.

Since the first of the year, Indiana and Florida have passed new property-tax curbs, while New York looks to be the next state to roll back property taxes.

However, officials warn that many of these property-tax initiatives are likely to lead to increases in other kinds of taxes--such as "swaps," under which property taxes are slashed and made up for by levies elsewhere.

In Florida, for example, the state may soon tap "snowbirds"--retirees who live in the state only part of the year -- to make up for lost revenues.

Source: The Wall Street Journal, Martin A. Vaughan (06/11/08)

No-Downpayment Loans Still Out There

According to an article posted in REALTOR® Magazine Online edition Dailt Real Estate News dated 6/9/08:

Despite banks’ reactions to the foreclosure crisis, it’s still possible for a potential homeowner to buy with no money down.

Some options come from Fannie Mae and Freddie Mac and are aimed at making homeownership possible for buyers with limited credit and savings, including teachers, firefighters, and members of the military. Some of the loan programs, which are available through cooperating lenders, even allow 105 percent financing to cover closing costs.

Freddie Mac says such loans have lower delinquency rates because borrowers are required to complete homeownership education.

Earlier this year, Fannie Mae experimented with a policy that demanded a minimum of 10 percent down in markets where home prices were declining.

In May, it modified the policy to allow buyers in declining markets to borrow up to 97 percent of the purchase price with a conventional mortgage and meet any other need with a second mortgage that that lenders are required to forgive after five years of successful payments.

Source: Washington Post, David S. Hilzenrath (06/09/2008)

NAR Testifies in Support of Homebuyer Tax Credit

The House Small Business Committee held a hearing on June 5 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.

This article is from NAR's -The Washington Report dated 6/9/08

Abbot & Costello

This is a classic video that will split your gut in laughter. Sometimes, I've had conversations with people where sometimes wonder if we ever connect. Those conversations always remind me of this video.

I hope you thoroughly enjoy this!

A Recession Without Contraction?

An article by The Associated Press recently reported that the economy will do something it hasn't done before: it is expected to go into recession without, at the same time, contracting. That never happened before - at least not since the government began tracking quarterly growth of gross domestic product (GDP) in 1947.

With all the fallout concerning the housing market, stock market, etc., the economy has managed to post growth, albeit anemic, and so far stay out of recession. Though many say we are already in a recession or about to enter into one, it is not a forgone conclusion.

Generally, a recession is measured by a contraction in the economy. By one of the most important measures, it is thought that 2 consecutive quarters (a total of 6 months) of negative growth is the definition for a recession. According to the National Bureau of Economic Research, a recession is "a significant decline in economic activity" lasting more than a few months. It may appear in GDP, income or other measures.

The GDP has actually in the black, instead of the red, this year posting a 0.9 percent rate of growth for the first quarter. Actions by the Federal Reserve in cutting interest rates, along with other measures have greatly helped to keep the economy from tanking.

Two recent surveys — from the National Association for Business Economics and the Fed of Philadelphia — see growth, albeit mild, through 2008.

Hmm! So, while there hasn't been contraction of the economy to date that begs the question - will there be a recession anyway? If so, that would be a unique thing. Stay tuned, we will find out more as time goes on.