Hot Off the Press…News that Affects You!
Public Affairs Dispatch………………………………………………………..June 2008
Contents
Boulder
· Council Signals Four Tax Questions Headed To Ballot
Longmont
· Mixed-Use Overlay Encouraged To Spur Redevelopment
Boulder County
· Commissioners Set To Discuss TDR/Home Size Proposals June 12
Region
· Water Storage Project Supported In Northern Colorado
Colorado
· CAR Endorses Fitz-Gerald And Coffman In U.S. House Bids
· Colorado Businesses And State Economy See Gains
Nation
· NAR & U.S. DOJ Announce Antitrust Settlement
· NAR Working To Address Short Sale Problems
· FHA Will Use FICO Scores For Most Borrowers
Worth Repeating
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City of Boulder
COUNCIL SIGNALS FOUR TAX QUESTIONS HEADED TO BALLOT
Boulder City Councilors directed staff to proceed with developing three tax questions for the November ballot, while a fourth awaits the (predetermined) results of a study. Two extensions of existing sales taxes will be on the ballot. One at 0.38 percent set to expire in 2011 and another at 0.15 percent set to expire in 2012 are proposed for long term or permanent extensions. Another question will be posed to ask voters to remove certain property tax limitations from the Taxpayer’s Bill of Rights. That question will propose phasing in the ‘de-Brucing over six years. An owner of a property valued at $500,000 would see taxes rise by $18.50 in the first year and rising to $111.00/yr. in year six. Finally, Council will seek higher Development Excise Taxes (DET) and may seek to apply certain DETs paid by new development to home remodels and expansions. A consultant has been retained to conduct a study to help determine the possible DET amounts and how they are applied. The same consultant conducted a similar study in the 1990’s and was essentially asked to identify the highest legally defense-able DETs that could be applied. This is the beginning salvo for what is certain to be a series of revenue raising actions over several election cycles by a Council facing declining revenue while seeing cost for services skyrocketing.
City of Longmont
MIXED-USE OVERLAY ENCOURAGED TO SPUR REDEVELOPMENT
Two years ago the Longmont City Council directed staff to create mixed-use standards to encourage redevelopment in areas such as surrounding the future FasTracks rail station. In April the City Council reviewed the Land Use Code amendments for the proposed standards and requested a joint meeting with the Planning & Zoning Commission (P&Z). The amendments: 1) Create incentives for development or redevelopment opportunities within the overlay district; 2) Specify uses that are encouraged and/or prohibited within the overlay district to allow for an appropriate mix of uses; 3) Build in flexibility in development standards for redevelopment and infill projects and 4) Develop standards that address building placement, form and design, vehicle and pedestrian access, parking location, and streetscape and signage design. Although the P&Z expressed conceptual support for the standards, Council member Sara Levison requested that the amendments be sent back to the P&Z for formal approval. That means the City Council won’t review the standards again until late June or early July.
Boulder County
COMMISSIONERS SET TO DISCUSS TDR/HOME SIZE PROPOSALS JUNE 12
The Board of County commissioners will again take up the Expanded Transferable Development Rights Program at a meeting scheduled to begin at 4:00PM on June 12. The meeting will be held in the commissioner’s hearing room on the third floor of the Court House at 14th and Pearl. The discussion items will include amendments to Section 4-1300, Expanded Transfer of Development Rights Program and Structure Size Thresholds for Single Family Uses; Section 4-800 – Site Plan Review; Section 4-119 – Designation of the Peak-to-Peak Scenic Corridor; and Article 18 – Definitions.
Note: There will not be public testimony taken at this meeting.
In The Region
WATER STORAGE PROJECT SUPPORTED IN NORTHERN COLORADO
Communities in Northern Colorado are behind efforts to construct a new 177,000 acre-foot reservoir northwest of Ft. Collins. One acre-foot of water can serve two households water needs for one year. The $405 million Northern Colorado Water Conservancy District project is being funded by 15 water providers as far south as Erie and SW Weld County including Left Hand Water District, Erie, Frederick, Firestone and Dacono. The Glade Reservoir will be filled with water diverted from the 40,000 acre-foot Poudre Galeton Reservoir that will be built northeast of Greeley and is expected to be in operation sometime in 2016.
Colorado
CAR ENDORSES FITZ-GERALD AND COFFMAN IN U.S. HOUSE BIDS
The Colorado Association of REALTORS® has joined the National Association of REALTORS® in accepting the recommendation of their respective independent REALTOR® Candidate Political Action Committee (RCPAC) and will be endorsing Republican Mike Coffman in the 6th Colorado Congressional District and Democrat Joan Fitz-Gerald in the 2nd Colorado Congressional District. “While the two races offer excellent choices, our committee believes that both Mr. Coffman and Ms. Fitz-Gerald are the two candidates who, as members of Congress, will place great importance on the issues that REALTORS® and the public have high on our collective lists including individual property rights and strengthening the economy,” said Doug Barber, RCPAC Chair.
COLORADO BUSINESSES AND STATE ECONOMY SEE GAINS
Colorado’s ‘New Energy Economy’ got a shot in the arm when Denmark-based Vestas Wind systems announced in May its plans to open a wind-turbine-tower factory in the state by 2010. The factory will be the world’s largest, costing $250 million and employing 400. Businesses saw gains in the 2008 legislature and Governor Ritter signed four favorable bills into law on May 20 designed to stimulate the economy. First, a new law provides for a rise in the personal property tax exemption to small business from $2500 currently to $7000 over five years, affecting over 30,000 businesses. Next, a new law simplifies the corporate tax structure by establishing a ‘single sales factor’ for multi-state corporations. And, a new law abolishes the state’s so-called ‘fly-away’ sales tax on aircraft made in Colorado and sold out of state, thus encouraging aircraft manufacturing to locate in the state. Finally, a new law making it easier for rural business seeking job creation incentives to qualify.
Nation
NAR & U.S. DOJ ANNOUNCE ANTITRUST SETTLEMENT
The National Association of Realtors® has reached a favorable settlement with the U.S. Department of Justice (DOJ), resolving litigation between them regarding how listings from multiple listing services are displayed on brokers’ virtual office Web sites. DOJ filed suit in 2005. The proposed final order, to be filed with the federal district court in Chicago today, validates NAR’s longstanding Internet Data Exchange (IDX) policy and strengthens the rule governing participation in multiple listing services. The final order expressly provides that NAR does not admit any liability or wrongdoing and NAR will make no payments in connection with the settlement.
The terms of the agreement preserve and strengthen the MLS as a means for broker-to-broker cooperation intended to serve real estate professionals who are actively engaged in listing or selling property in that MLS, said Laurie Janik, NAR chief counsel. “This will ensure that MLSs are used for what they were originally intended to do - to help real estate professionals find buyers for people who want to sell their homes.”
NAR will be reinstating an updated version of its Virtual Office Web site policy. That policy was rescinded in 2005 when DOJ challenged certain provisions. The revised policy continues to protect the rights of sellers who do not want their property or their property’s address displayed on the Internet. The new policy also protects sellers from having false or other unwanted information about their listings appear on the VOW of an MLS member.
To learn more about the settlement and related issues, visit www.realtor.org/DOJ.
Source: REAL Trends Email Breaking News Update, May 27, 2008
NAR WORKING TO ADDRESS SHORT SALE PROBLEMS
According to Jeff Lischer, who manages NAR’s Regulatory and Industry Relations Program, the main reason short sales don’t close quickly is because the servicers are under-staffed. NAR has been talking to lenders and the GSEs about this problem and Lischer said NAR is scheduling a higher level meeting to make the point more strongly that the problems need immediate correction. At the Mid-Year meetings, the Short Sales Issues Work Group made three recommendations: 1) A single industry-wide short sale application and list of supporting documents that all lenders and servicers would agree to accept. The Uniform Loan Application is an industry standard. It should not be hard to agree on a Uniform Short Sale Application. 2) A commitment by all lenders and their servicers to keep the listing agent and seller regularly informed of the status of the short sale application throughout the process and respond to reasonable requests for information. 3) A commitment by all lenders and their servicers to deliver a clear answer, in writing, yes or no, within a reasonable time frame. For example, 30 days from receipt of the complete application is a reasonable goal. Lischer admitted “we have not been hearing things are getting any easier yet. Hopefully we can push from here and you can push from there, and eventually we will make progress that is so important for everyone involved.”
FHA WILL USE FICO SCORES FOR MOST BORROWERS
Statistical analysis of all approved mortgages insured by the Federal Housing Administration during its 2007 fiscal year is leading to a major policy switch that could affect thousands of buyers and re-financers. The FHA has announced it will shift to a “risk-based” system keyed to FICO scores and down payments, beginning as early as mid-July. FHA plans to use the middle score of an applicant’s three FICOs generated by the national credit bureaus — Equifax, Experian and TransUnion. If only two scores are available, it will use the lower. For applicants with thin or “nontraditional” credit histories on file at the bureaus, FHA will underwrite and price the loans without reference to FICOs, with heavier emphasis on rent and utility payments among other measures of creditworthiness. Though FHA mortgage volume has more than doubled in the past year, the move to risk-based pricing is expected to make it even more attractive to buyers and re-financers.
Worth Repeating: “I have real concerns about putting any taxes on (the ballot) this year, just because of the nature of the election. One of those concerns is that I don’t want to lose.” Boulder City Council Member, Lisa Morzel, commenting on proposals to put as many a four tax increase questions on the November ballot.
NAR staff, CAR staff, and IRES’s Regional Government Affairs Director, Barbara Koelzer, contributed to this report.