By Tara Lightner Robbins - March 2012

Again with the 3.8 Tax Rumor ….

The tax included in the Healthcare overhaul legislation due to take effect 2013 is not a real estate transfer tax. NAR has produced a video regarding the tax and is application. Click here to see the video and read the explanation.

 

PROP (Probationary Rental Occupancy Permit) Expansion is a MAJOR one in Raleigh

(reprint from February ‘scoop’)

In 2011, Senator Neal Hunt (R-Wake) took aim at the City’s unpopular Rental Registration program, which forces owners of rental property to ‘register’ their properties and pay fees. Owners complained they receive nothing for this fee, and that the City and the police do not enforce the current ordinances that are on the book, which would provide greater protection for neighbors complaining of poorly kept rental properties. Hunt’s weapon, SB 683 grandfathered in Raleigh’s Rental Registration Program, much to the chagrin of many owners, however, the statute significantly reduces the amount of fees that are charged. According to the city’s own budget, the rental program expenses ran in the $200,000 - $250,000 range, while the program was bringing in nearly $1 million. No services were being provided to the rental community.

 

The City responded to the lost revenue by expanding the PROP in a manner that is designed to draw many more properties into the program. By changing the definition of ‘owner’ and expanding both the list of offenses and the scope of the application from rental unit to ‘property’, the Assistant City Attorney notes that her proposed text change, would likely see an increase of up to 300% from the inspections department violations and 700% from the police department violations. The new fees associated with the probationary permit are as high as $10,000/year if your property accrues the violations necessary to require PROP. 

 

REALTOR(R) association representatives and Apartment Association representatives have repeatedly requested to provide feedback through a stakeholders process however, the promised session has still not materialized. If you would like to read the proposed 'enhancement' package, please contact Tara Robbins at                            

 

Sustainable Development: Topic Set for Discussion in April

The Government Affairs Committee is hosting an educational session on Sustainable development, for GAC members and their guests, on April 18^th. The term’s meaning is somewhat fluid, so come and hear from experts on principals used to determine sustainable development projects, and hear from representatives of two of the triangle’s planned sustainable developments; Veridea in Apex, and 5401 North in northern Raleigh near the intersection of 540 and US 1. For more information check the www.rrar.com website and search under events, as the date gets closer. GAC Members are welcome to bring guests but must RSVP for themselves and their guest. To RSVP email

 

NC Education Lottery: Where Does the Money Go?

On March 14^th, RRAR conducted a focus group on community issues. A question was raised during that exercise about how the lottery is being spent, when there are seems to be more money needed for education. Many supporters of the Lottery did so, because it was sold a means to significantly bolster education revenues. But research now shows that only 7 cents of each lotter y spent is actually going towards building more schools.

 

In an article published in the Fayetteville Observer on March 25^th , school officials state that lottery money has largely supplanted other state funding. Last year faced with billions in shortfalls, the General Assembly used lottery funds to pay for other programs while also shrinking how much schools get for building classrooms. The biggest chunk of lottery money earmarked for education goes to teacher salaries. The lion’s share of the lottery proceeds are designated for prizes (59%), while  Education get 29% - and how that 29% is spent seems to be changing. Last year legislation changed the formula, taking more funds away from construction and gave more to teacher’s salaries – now teacher salaries make up more than ½ of the 29% of the lottery proceeds allotted towards education. That 29 percent for education totaled $419.2 million in North Carolina for the last school year, that ended June 30. The rest is largely dictated to be spent on non-construction categories such as prekindergarten programs, scholarships and financial aid, leaving 23% of the 29% eligible to be used by the school systems for school construction. Originally the law that was passed established 40% of the ‘education portion’ to be used for school construction – now that number is 23.5%. The original article can be accessed at http://fayobserver.com/articles/2012/03/25/1161399.

 

Mortgage Servicers Reach $25 billion Agreement over Improper Foreclosures

On Monday, March 12, 2012, the federal government released details of the $25 billion dollar national mortgage settlement stemming from improper foreclosures and other deceptive practices in the origination and servicing of mortgages. The agreement with Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc., and Ally Financial Inc. (formerly GMAC) is designed to provide eligible homeowners with relief as well as prevent future abuses. The components of the agreement most impactful to REALTORS® are: 1) Establishment of short sales standards that are similar to those established under the HAFA and HAMP programs; 2) Servicers can no longer proceed with foreclosures if a short sale or deed-in-lieu of foreclosure has been approved by all parties (lien investor(s), mortgage insurers) and proof of funds has been provided to the servicer; 3) servicers must establish a single point of contact for borrowers; 4) establishment of online loan portals consolidating information about submission requirements, loss mitigation and documentation that is missing; and 5) Requirement of regular reporting to outside monitor that reports to states attorneys general. to read more about the settlement, click here

 

FHA Fee Hikes underway April 1^st and June 1^st

 FHA will increase two fees that borrowers pay. Starting April 1, it will increase its annual mortgage insurance premium for loans under $625,500, bringing the total cost from 1.15 percent of the loan amount to 1.25 percent. Starting June 1, larger loan premiums will see an increase of 0.35 percent of a percentage point, bringing the total premium costs up to 1.5 percent of the loan amount. The FHA also announced it will raise a fee for the upfront mortgage premium by 0,.75% which will now total 1.75% of the loan amount. For more on the FHA fees, click here

 

Nationwide Open House Weekend Slated for April 28 – 29^th

Every REALTOR® has probably held an Open House for a client. But, did you know that:

45% of all buyers used open houses as a source in their home search process?
Buyers in the Northeast are significantly more likely to use open houses?
Single females use open houses much more frequently than single males?
Buyers not born in the U.S. and whose primary language is not English use open houses more frequently?
As the age of the buyer increases, the use of open houses increases?

To learn more about the Nationwide Open House Weekend, and how you can participate locally email , for resources and more from NAR, click here

 

Primary Elections Heating up

May 8^th North Carolinians will head to the polls to cast their votes for local, state, national leaders and ballot questions. The new state and congressional districts have significantly shaken up the line up of candidates. Here in Wake County new district lines mean new candidates. Some partisan districts have become even more so and many of the state legislative races will be decided in the primaries. For a complete list of NC candidates, click here,

 

Wake commissioner races: The republican majority will continue to govern the Board, as none of the Republican held seats are up for relection. Paul Coble, District 7 Commissioner and Chairman, is running for the new Congressional District 13. Tony Gurley is running in the republican primary for Lt. Governor, and Erv Portman is not seeking re-election, as he is running for the open-seat Senate District 17, held currently by non-returning Senator Richard Stevens. Portman will face Tamara Barringer, an attorney and wife of republican insider, Brett Barringer. Expect this to be a great spectator race.

 

The remaining General Assembly Senate district races which include Wake county should be relatively predictable. Senator Dan Blue (D) and Josh Stein (D) are in safe partisan district and face no competition. All eyes will be on District 15 where Neal Hunt will be challenged by Wake county environmental activist, Sig Hutchinson. Although Hutchinson has not held elected office, he is very well known, respected and has should have a good network of support. The democratic party, shuffling to protect incumbents in vulnerable newly-drawn districts probably won’t have lots of money to throw into challenger races, against republican leadership incumbents.

 

Bernard Allen II, son of the late representative by the same name, will challenge Rosa Gill for the House District 33. Deborah Ross, whom many thought wouldn’t run, but seek a council of state office, is now the lone candidate in the House 34 race. Grier Martin leaving the House and turning his attentions back to Military Service.

 

Republicans Duane Cutlip and Chris Malone (Wake School Board member) will face off in a Republican only race for the new House 35 district. Cutlip has twice challenged incumbents for this turn (Linda Coleman and Darren Jackson). Nelson Dollar will have a general election opponent in Charles McDarris and House Majority Leader Paul Stam will be challenged by Fuquay-Varina attorney Jason Wunsch in the general. Expect Dollar and Stam to capitalize on significant funding advantages that come with leadership positions.

 

The new 38^th District will be decided in the three-way democratic primary, with the business community expected to largely support Abeni El-Amin, with Lee Sartain and Yvonne Holley challenging. This one might go to run-off if no one gets a majority. The House 39^th which leans strongly democratic will also be decided in a three-way democratic primary, between incumbent attorney Darren Jackson, and Michael Slawter and Don Mial (former Wake commissioner candidate). This is a minority majority district and Mial, an African American, is running to assure the minority status is represented.

 

North Raleigh incumbent Marilyn Avila will face both a democrat and libertarian in the general election, but no primary opposition in May. Up and comer Tom Murry, who successfully challenged Chris Hagearty in the 41^st  two years ago will have his hands full with newcomer James Messina this fall in the general election.

House District 49, which leans republican should be interesting as veteran lawmaker Russell Capps seeks to get back into the General Assembly. He would need to beat Jim Fulghum in May, and ward off democratic challenger Keith Karlsson this fall, to win this open seat.

 

McCrory Polling Double-digits up on both R and D candidates

Two separate polls that took place Thursday March 22^nd – Sunday March 25^th showed Former Charlotte Mayor Pat McCrory polling 64% against primary opponents, all of whom polled in the single digits. Democrats fared little better with the best race against former Lillington Congressman Bob Etheridge, where McCrory went 49% - 34%. Against Lt. Governor Walter Dalton (48% - 32%) and Bill Faison (51% - 28%). Public Policy Polling, a democratically affiliated firm and the Civitas Institute, a conservative foundation that conducts polling, have been conducting ongoing polling during the primary. For more information about the poll click here .