Housing and Economic Recovery Act of 2008

Great News!! President Bush just signed into law the Housing and Economic Recovery Act of 2008. This is a major victory for REALTORS®, consumers, and our nation.

Thanks to your advocacy, homebuyers will soon have access to more affordable financing, and first-time homebuyers (those who have not owned a home for three years) will receive a tax-credit to help them enter the market.

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

• GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

• FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

• Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

• FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

• Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

• VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
  Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

• GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

• Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

• National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

• CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

• LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

$250 Million Developement Planned for Liberty Township

More than $250 million in retail, restaurants, apartments, hotels and offices are planned for a 110-acre plot of land just west of Interstate 75 in Liberty Township.

Liberty Township-based developer George Flynn, Bob Hutsenpiller of Hutsenpiller Contractors Inc. and Brian Brockhoff of Bailey Capital Partners have spent the last three years quietly acquiring 22 parcels along Hamilton-Mason Road. Earlier this year, they brought in Miller-Valentine Group to assist with development and land acquisition and Columbus-based Steiner & Associates as lead developer of the project. The team plans to build more than 2 million square feet of development there over time.

The first phase, which could begin as early as 2009, includes 250,000 square feet of office space, an upscale theater, two hotels, restaurants, three department stores, additional retail and about 200 apartments - 1.2 million square feet of total development costing about $200 million.

"We're essentially building a community gathering space," said Mike Duffey, a Steiner spokesman. "It will become a hub for the entire community."

Liberty Township, located almost halfway between Dayton and Cincinnati, has spent the last few years preparing itself to handle the rush of developers seeking land positions in its boundaries. As the West Chester corridor has become saturated with offices and retail, it became evident to Liberty officials that the rural bedroom community would be next.

"Development is going to happen. We thought, 'What can we do to control it?'" said Dina Minneci, township administrator.

To prepare for even more population growth, expected to top 60,000 over the next 20 years from 35,000 today, the township created a master plan and four overlay districts that focused on commercial development for 18 percent of Liberty's total land area.

"The criteria we have is it has to be a sustainable, long-term commitment with a 30-40 year life cycle," said Pat Hiltman, president of Liberty Township trustees. "If we're going to bring retail in, it needs to be the crown jewel of Butler County and Southwest Ohio."

Steiner & Associates Inc. is best known for its mixed-use development of Easton Town Center in Columbus, a 90-acre project. It recently built the 72-acre mixed-use development in Dayton, called The Greene, and is known locally for Newport on the Levee, a late 1990s project.

Miller-Valentine Group became a financial and development partner to help with land
acquisition and development. The firm's local expertise in health-care office, hotel and residential development would be an asset for parts of the project.

"We're out of land at University Pointe and it's been a big success. This will be the office location in the northern market," said Brian Copfer, Miller-Valentine's vice president of development services.

The developers submitted plans to Liberty Township Tuesday, requesting a zoning change to planned unit development. Pending approval, plans will go before the Butler County Planning Commission in June and to Liberty Township trustees in late July.

Local Home Data for Cincinnati and Northern Kentucky

Greater Cincinnati and Northern Kentucky homes sales are still down by double digits year over year, but some positive trends are surfacing.

The Cincinnati Area Board of Realtors reported that 1,635 homes were sold in April, down 17 percent from 1,968 in April 2007. Gross volume fell 26 percent, to $249.3 million from $335.8 million, while the average sale price was down 11 percent, to $152,471 from $170,625.

The organization noted, however, that the number of home sales has risen for three consecutive months, while the inventory of unsold homes has diminished, to 9.5 months of inventory in April from 13.3 months in January.

Year to date, home closings fell 17 percent, to 5,655 from 6,805. Gross volume was down 22 percent, to $883.7 million from $1.13 billion a year ago. And, the average sale price dropped 6 percent, to $156,271 from $166,826.

Across the river, the Northern Kentucky Multiple Listing Service said 454 homes were sold in April, down 17 percent from 547 in April 2007. Total volume decreased almost 8 percent, to $77.6 million from $84.2 million in the year-ago period.

But the average sale price rose 11 percent, to $170,830 from $153,894, the multiple listing service said in a news release.

For the first four months of 2008, home sales in Northern Kentucky were down almost 14 percent, to 1,643 from 1,901 in the same period a year ago. Total volume was down 5 percent, to $284.4 million from $299.7 million, while the average sale price was up almost 10 percent, to $173,092 from $157,635.

The average mortgage interest rate in April was 6.14 percent, down from 6.33 percent a year ago, the CABR said in a release.

Home sales unexpectedly rise in April - Yippee!

By MARTIN CRUTSINGER, AP Economics Writer 11 minutes ago

Sales of new homes rose in April for the first time in six months although the unexpected increase still left activity near the lowest level in 17 years.

The Commerce Department reported Tuesday that sales of new homes rose 3.3 percent in April to a seasonally adjusted annual rate of 526,000 units.

But the government revised March activity lower to show an even bigger drop of 11 percent to an annual rate of 509,000, which was the weakest pace for sales since April 1991. Economists believe that new home sales will remain weak for some time as the housing industry struggles with falling prices and rising mortgage foreclosures, which are dumping even more homes on an already glutted market.

The Commerce report showed that the median price of a new home sold in April dropped to $246,100 in April, down 4.2 percent from April 2007.

A separate report showed home prices falling during the first three months of this year at the sharpest rate in two decades. The Standard & Poor's/Case-Shiller index fell 14.1 percent in the first quarter compared with a year earlier, the biggest year-over-year decline since the index began in 1988.

The Commerce report on new home sales showed the April rebound was led by a huge 41.7 percent surge in sales in the Northeast. Sales were up 8.3 percent in the West and 5.8 percent in the Midwest. The only region which saw a decline in sales in April was the South, where sales fell by 2.4 percent.

The inventory of unsold new homes edged down slightly to 10.6 months' supply at the April sales pace, compared with 11.1 months in March. However, the April level was still about double the inventory level that was normal during the five-year housing boom.

That boom ended in 2005 and since that time the housing industry has been struggling in a tough environment with falling sales and prices and rising mortgage defaults.

Economists believe that home prices will remain under pressure until the sizable level of inventories is worked down to more manageable levels. Many analysts don't expect to see a rebound in prices until sometime next year.

What kind of deed am I getting when I buy a Foreclosure?

General Warranty Deed
The seller or grantor conveys the property with certain covenants or warranties. The grantor is legally bound by these warranties. Whether expressly written into the deed, or implied by certain statutory words, basic warranties include:

Covenant of Seisin - Seisin means possession, and the grantor warrants that they own the property and have the legal right to convey it. (Seisin is the possession of such an estate in land as was anciently thought worthy to be held by a free man from Wikipedia)

Covenant against encumbrances - The Grantor warrants that the property is free of any liens or encumbrances unless they're specifically stated in the deed.

Covenant of quiet enjoyment-The buyer is guaranteed that the title will be good against third parties attempting to establish title to the property. Covenant of further assurance- The Grantor promises, in order to make the title good, they will deliver any document or instrument necessary.

The covenants or warranties in a general warranty deed do not cover just the period of ownership of this grantor.

They extend back to the origin of the property. Each grantor of a general warranty deed in the title chain would be liable for title problems before and through their ownership



Statutory warranty deed (Special Warranty Deed)
The special warranty deed is not nearly as protective of the buyer as is the general warranty deed. The grantor of a special warranty deed conveys the property with two warranties: The grantor warrants that they have received title. The grantor warrants, unless noted specifically in the deed, that the property was not encumbered during their period of ownership.

The grantor of the special warranty deed, in effect, only warrants the title against their own actions or omissions. They warrant nothing prior to their taking title. If specifically stated in the deed, other warranties can be conveyed. Special warranty deeds are frequently used by executors and trustees.

For obvious reasons, most transfers are accomplished using the special warranty deed. And THIS IS WHAT THE TYPE OF DEED YOU RECEIVE WHEN YOU PURCHASE A FORECLOSURE!

Oxford's Habitat For Humanity is Creating Neighborhoods!

Habitat for Humanity's plan to build 20 houses in Oxford is on track.

The Tri-State board for Habitat for Humanity has approved the plan to build two streets with 10 houses each off Oxford's Hester Road, near Wal-Mart, in an effort to bring more affordable housing to the city. Work is expected to begin in 2010 in a building blitz with each street of houses being built in one week, Habitat's Oxford branch president, Jim Lipnickey, recently told the Oxford Housing Advisory Commission.

"This is unlike anything that has been done in Ohio," said Lipnickey. "This is big for our affiliate, let alone our chapter."

The total project is set to cost around $2 million, quite an undertaking considering Habitat for Humanity chapters usually build only one house at a time.

The chapter is currently negotiating the purchase of the land. "The plan is evolving as we speak. We don't have the land, so it's not a done deal yet," said Lipnickey. If all goes as expected, the next step would be to have the subdivision approved by the city, which would take six to eight months.

"It's going to be a ton of work," said Lipnickey. "The first part is getting more people."
Good fit with city comprehensive plan

Jung-Han Chen, community development director for the city of Oxford, said Habitat's blitz fits well with the goals and objectives of the city's comprehensive plan, which includes expanding affordable housing and growing the number of homeowners.

The plan also promotes partnership between the city and nonprofit corporations and agencies to develop affordable housing opportunities, Chen said.

The Oxford chapter of Habitat for Humanity generates $13,000 a year from the mortgages of existing homes, and that money goes to build new homes. Mortgages on Habitat homes are interest-free and held by Habitat for Humanity. Families are assessed a minimum of $20,000 for the lot. This amount, plus the cost to build, equals the mortgage.

Lipnickey said he plans to go to Habitat for Humanity International for grants and help with PR for the project.

On a more local scale, the chapter also plans to send out letters to every organization in the city of Oxford, offering to give a presentation on the project, in an effort to recruit volunteers. Lipnickey will focus on building a relationship with Miami University's sororities and fraternities to sponsor some of the homes.

"It's a tremendous opportunity for volunteers," said Lipnickey. "The only thing you need to help is a heartbeat."

The foundations of the homes will be in place at the beginning of the build, and professionals will aid volunteers in building the homes from the floor up, with about 20 to 30 people working on each.

There currently are six Habitat for Humanity homes in Oxford. The Oxford Housing Advisory Commission said the 2010 building blitz fits in nicely with Oxford's bicentennial that year. Habitat also plans to build a house in College Corner this fall.

Model for other chapters?
Kate Currie, a member of the commission, said she hopes the project can be a model for other Habitat chapters.

"I think it will be a great opportunity for various organizations and members of the community to come together to work to help the citizens of Oxford find quality, affordable housing they can take pride in," Currie said.

The property for the lots is projected to cost $250,000, and the houses are projected to cost about $60,000 each. Homes will be roughly 1,100 square feet, with three to five bedrooms, depending on the size of the family.

Whirlpool Corp. provides a washer, dryer and range for every Habitat for Humanity house. These homes also will be Energy Star-rated, for an extra cost of $2,000. Homeowners will pay off this difference in about two-and-a-half years.

The families also will get $1,000 to put into the house in any way they want, excluding some things Habitat won't do - such as bay windows and garages. These houses also will not have basements; it's cheaper to build a crawl space for storage.

Habitat currently is in the process of selecting families to live in the neighborhood, and already has interviewed five prospective families. Families must fulfill three requirements to be eligible: come from a substandard home, put in 500 hours of sweat equity and be able to pay the mortgage on the home.

Ambitious Goal
• Habitat for Humanity plans to build two streets with 10 homes on each in Oxford.
• The project, which is slated to begin in 2010, still faces several hurdles.
• The chapter currently is negotiating the purchase of the land. If that goes well, it would ask the city to approve the subdivision.
• The project would cost about $2 million.

Business Courier of Cincinnati - by Kyle Zemanek Courier Contributor 5/16/08

Westwood is Looking To Re-Shape it's Community

Cincinnati's biggest neighborhood has a problem: rundown properties.

But activists got some big help from the city - $1 million to buy vacant buildings and demolish them. They now are being allowed to help decide which properties should go.

"I feel like we really can't move forward with anything until we get rid of some of these," said Jim McNulty, president of the Westwood Civic Association, the neighborhood's community council. "It's the key to everything else."

• Click through a graphic showing the doomed dozen buildings.

The goal is to knock down eyesores in high-visibility spots in favor of grass for now and, hopefully, replace them eventually with single-family homes.

The eyesores are obvious when driving along Harrison Avenue, said Councilman John Cranley, the native West Sider who led efforts to give Westwood some of the money.

"As I've said many times, you get off Harrison onto Werk Road, or Cyclorama, and there are some gorgeous homes," he said. "But driving up and down Harrison, you'd never know that. It's just awful."

He blamed lax zoning regulations decades ago for allowing many multi-family properties to crop up in Westwood.

That gave a path for developers during the 1960s and 1970s, he said, to put up apartment buildings they hoped would bring them more money than single-family homes. Westwood residents complained, cajoled and begged for years. They got four torn down by the city in 2005, and pressed for more.

Council agreed in March to give them $250,000 from a housing demolition fund and $750,000 more from one of Westwood's tax-increment-financing districts. The latter means the city gives the money up front, banking on getting it back in future tax revenue, revenue that's expected to increase over time and when the dilapidated buildings are replaced with something better.

Of the dozen suggested for demolition on the community council's original list, four already have demolition orders against them through the city's process of taking owners to court for failing to keep up their properties.

The rest are owned by private owners, companies and banks that bought the properties to protect their investments after forfeited loans.

The reasons for the upkeep failure vary, too, from aging owners to absentee landlords.
Westwood will be home starting next week to the city's latest Neighborhood Enhancement Program - City Manager Milton Dohoney's program that dedicates representatives from every applicable city department from police to buildings to a neighborhood for a 90-day focus period.
Demolitions also could come about as part of that process, too. They have in previous NEP programs.

In Westwood, where more than 36,000 people live, the housing is 60 percent multi-family. The community council would like to see a shift, to 60 percent single-family homes. McNulty thinks some upscale houses - in the $350,000 range - would be a good start to bring about what he calls a better balance to the neighborhood.

"Apartments aren't bad," he said. "I love all these four-families here - they're part of Cincinnati. But we've got to stabilize our neighborhood.

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