This past week, NAR issued a member-wide Legislative Call For Action urging REALTORS® to contact their federal legislators to pass a FHA reform bill that would provide safe, affordable mortgage options for home buyers and bring needed stability to the housing market.  Notably, the new FHA loan limits passed as part of the recent economic stimulus bill signed by President Bush will expire on December 31, 2008.  NAR supports legislation that would lower FHA down payment requirements, make permanent the increases in FHA loan limits, and create new opportunities for condominium purchases.  Both branches of Congress previously passed FHA reform bills in 2007, but both measures are now stalled in conference committees.  Please participate in this important Call For Action by logging onto the NAR Action Center and e-mailing the NAR-prepared letter to your elected member of Congress today.

Additionally, NAR officials recently visited Capitol Hill to press for more reforms for the nation’s Government Sponsored Enterprises (GSEs) including Fannie Mae and Freddie Mac.  During testimony before the Senate Committee on Banking, Housing and Urban Development on March 6, NAR leaders urged the Senate to raise the national conforming loan limit for GSEs to $625,000, with an additional increase of 125 percent of the local median home sales price in high-cost areas, such as metropolitan Boston. 

NAR supports the passage of GSE reform similar to the Federal Housing Refinance Reform Act of 2007 passed last year in the U.S. House as a means to preserve the vibrancy and liquidity of the U.S housing finance system.  In addition to raising loan limits, the GSE reform legislation would create a strong regulator and sound governance principles, preserve and protect the GSEs vital housing mission and allow flexibility for new program approval. 

On a related note, NAR also has urged the U.S. House Subcommittee on Veterans Affairs to reform the Veterans Home Loan Guaranty Program so more veterans can be better served.  Enhancements to the program include increasing VA home loan guarantee limits in high-cost areas to 150 percent of the conforming loan limits, easing the requirements and restrictions for veterans, especially those who have fallen victim to risky subprime loans; and offering permanent authorization for adjustable-rate and hybrid ARM loan guarantees.

The Veterans Home Loan Guaranty Program offers protections for borrowers if they encounter financial difficulties by offering a variety of supplemental loan servicing programs to help military families avoid foreclosure.

On Wednesday, February 27, 2008 the Boston City Council voted unanimously to approve a new law regulating the maintenance of abandoned and foreclosed properties.

This Ordinance applies not only to lenders, but also to "property managers" and "real estate brokers" that are involved in the "care, charge, or control" of real estate.  If you are a property manager or real estate broker dealing with property in the City of Boston, this Ordinance likely applies to you.

The ordinance sponsored by Councilor Robert Consalvo(District 5-Hyde Park, Roslindale, Mattapan), was filed in response to public health and safety issues created by vacant and abandon homes in foreclosure.  According to Councilor Consalvo, the City is spending thousands of dollars to secure and maintain vacant homes.

GBREB worked with Councilor Consalvo to ensure that the ordinance addressed many of the long term issues facing the City without unduly burdening property owners. Several amendments were successfully adopted including a clarification of the foreclosure process for unpaid assessments owed to a condominium association.

Click here to see how to comply with the new law (members needing additional guidance should consult with an attorney)

Click here to see a copy of the new law

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The Greater Boston Association of REALTORS® and Boston Globe Media have partnered to host a free workshop for home buyers and sellers which will be held on Saturday, April 12, from 9 a.m. to 12:30 p.m., at the Sheraton Four Points Hotel on Rt. 1 in Norwood.  The workshop will feature a half dozen sessions designed to educate consumers on key elements of the property transaction process.  Session topics for buyers include: Home Buying 101: The Basics Every Buyer Should Know; Successfully Navigating the Mortgage Maze; Deal or No Deal: Confessions of a Home Inspector & Appraiser.  Sellers will learn about: Preparing Your Home for Sale; Evaluating Your Home’s Value & Setting a Fair Price; and the Risk and Rewards of Short Sales & Foreclosures.  Consumers can register online at www.boston.com/realestate.

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Keep your eyes open when visiting Boston.com and other local media websites in April and May because the Greater Boston Association of REALTORS® will be launching its first-ever advertising campaign.  The online advertisements will supplement the Public Awareness Campaign currently being used by the National Association of REALTORS®.  Notably, the advertisements will address consumers’ net worth - $4,000 or $187,000 –the value of a renter’s versus homeowner’s personal wealth respectively.  The campaign will drive consumers to NAR’s new website www.housingmarketfacts.com.  To be prepared for calls from consumers once GBAR’s campaign launches, visit NAR’s site and refer to this chart. 

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The Massachusetts Association of REALTORS® also has issued a response to the column, “The (Always) Sunny Side of the Street.”

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The awards being presented this year are REALTOR® of the Year (ROTY), the Andrew F. Hickey Distinguished Service Award (DSA) and for the first time, the GBAR Good Neighbor Award.  Nominations for the Good Neighbor Award must be in by April 15 while nominations for the ROTY and DSA must be submitted by May 15.  Further details can be found on the nomination forms, which can be accessed by clicking the above links.  If you have any questions, please contact Christina Meehan at cmeehan@gbreb.com or at (617) 399-7840.

We are looking forward to another successful event – see you soon!

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In July 2007, the Greater Boston Real Estate Board and the Massachusetts Association of REALTORS® testified against H 767, “An Act Relative to the Disclosure of Wetlands on Property.”  At a hearing this month, the legislation was sent to a study, meaning more research is needed on the bill and it will likely not appear again this session.

The proposed legislation would require real estate licensees to disclose to potential buyers whether a property is a wetland or part of one.  Brokers would be required to investigate and report to buyers on various wetlands restrictions, overlay maps and provisions in each community.  Furthermore, brokers would be required to research each property at the registry of deeds to see if the property is subject to orders of conditions issued by the local conservation commission or Department of Environmental Protection.

In GBREB’s and MAR’s joint statement, it was noted that more than 135 communities have wetlands protection bylaws on top of state and federal laws.  Buyers are able to ask sellers about property inspections include inspections in the purchase agreement and find information through public records.  REALTORS® are currently responsible for disclosing material defects of a property when aware, but there is no requirement that the seller provide this information to potential buyers or their agent, making compliance with the proposed legislation even more difficult. 

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The Internal Revenue Service recently issued a Revenue Procedure ruling that spells out how vacation properties can qualify for 1031 exchanges, which involve the exchange of investment properties.

The guidance aims to clear up the debate about whether vacation homes are investment or personal use properties. The ruling states that the property must be held by the taxpayer for 24 months. The holding period is broken into 12-month blocks, and during each the property must be rented at the fair market rate for no less than 14 days.

Additionally, the owner can use the property for 14 days or 10 percent of the days rented, whichever is greater, plus a "reasonable" number of days devoted to maintenance tasks. Because it is a safe harbor ruling, experts say failing to comply with all the rules does not mean the exchange will be denied or an audit will automatically occur.

However, they underscore the importance of keeping good records of the property's rental history and the dates the property was occupied by the owner for maintenance.

Source: Realty Times, Gary Gorman (03/06/08)
© Copyright 2008 Information Inc.

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