Legislative Updates

THIS IS VERY IMPORTANT FOR GEORGIA RESIDENTS

carolmoson — Sun, 05 Sep 2010 19:39:43 +0000

THIS REQUIRES IMMEDIATE ATTENTION:

The Metropolitan North Georgia Water Planning District (MNGWPD) is charged with finding ways to comply with the Metro Water District Plan. I It is my understanding that this is necessary in order to continue the ability to receive permits to draw water.

However, According to the MNGWPD staff memo, the group met 11 times in the last 9 months. None of these meetings were public and some of the resolutions they have come up with are not in line with protecting property rights.

Some of the recommendations are district-wide, but a majority of the proposed changes affect only those water systems that depend on the Chattahoochee and Lake Lanier, which includes all water systems in Cobb, DeKalb, Forsyth, Gwinnett, Hall and Fulton Counties.

There are two recommendations on which we need to focus immediate attention:

Action Item CL-2: Encourage each local water provider to implement a rebate incentive program to convert older, inefficient toilets to high-efficiency toilets in multi-family properties. Details are on pages 5 and 6 of the proposal.
Action Item CL-3: Require local jurisdictions to adopt an ordinance or policy that requires owners of residential and commercial structures built prior to 1993 to replace inefficient toilets, sinks, aerators, and shower heads upon water service reconnection following a change in property ownership. This is referred to in the proposal as “retrofit on reconnect.” Details are on pages 7 and 8 of the proposal.

Think about CL-3…. This is nothing more than a re-named “retrofit at resale”.

The buyer cannot reconnect until all fixtures are brought to current code
The buyer is not likely to spend the money to update all the fixtures in the house prior to ownership. What happens if it doesn’t close?
The seller would have to allow the buyer’s vendors if (if buyer is paying) to do the work on a home they currently own and still occupy.
If the seller has to change all fixtures then that puts an undue burden on the seller that is probably already feeling financial pressure.
Then there are the banks – what about foreclosures? Are the banks going to change out all the fixtures prior to closing? We know the banks are not going to let the buyer do any repairs prior to closing? Does that mean fewer buyers will be able to take possession at closing because they will need to have water??

We will keep you posted on any updates but PLEASE keep your eye on this as well. We CANNOT let this happen and we all know that the rebate program will be much more successful as it is a retrofit at replacement and is not as likely to place an undue burden on the homeowner.

The Governing Board voted yesterday to distribute the proposal for public comment. The deadline for comment is October 22. A final vote to approve the recommended changes could be held as early as December 2.

This has been another Just FYI….brought to you by Carol

Carol
Carol Moson, REALTOR®
Sales/Instructor/Trainer
CRS – Certified Residential Specialist
SRS – Seller Representative Specialist
ABR – Accredited Buyer Representative
SFR – Short Sale and Foreclosure Certified
EAH – Employer Assisted Housing
e-Pro
GREEN

FHA – New Guidelines You Must Know

carolmoson — Sun, 28 Feb 2010 14:05:12 +0000

In October 2009. FHA announced that Its capital reserve fund had fallen below the congressionally mandated level of 2 percent. The drop in capital reserves has lead Congress and the Administration to call for changes to strengthen FHA.
On January 20, 2010, FHA announced major changes to ensure its long.term financial soundness. FHA Is trying to balance three fundamental obJectives: 1) financial soundness of the PHA Insurance fund – ensuring that its capital ratio returns above 2 percent. 2) fulfilling Its mission of serving borrowers not adequately served by the private sector and 3) facilitatIng the recovery of the housing industry and the overall economy.
NAR has met with the FHA Commissioner on several occasions to discuss the state of the housing market and to underscore FHA’s invaluable role. By all accounts the new changes are a victory for home buyers. FHA has carefully balanced the need to make financial reforms with the need to keep FHA available to a large segment of consumers. This is evident by retaining the 3.5 percent minimum down payment requirement and allowing the upfront mortgage Insurance premium to be financed.

Click here for the rest of the article

Carol

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR, EAH, REALTOR
RE/MAX Greater Atlanta
678-414-0760
770-973-9700 x 289
www.TalkToCarol.com
carol@carolmoson.com

New Disclosures Required

carolmoson — Sat, 27 Feb 2010 05:50:07 +0000

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

Brokers and salepersons must now disclose all fees being charged to the consumer . This would include fees being paid as referrals, rebates, etc. and also those fees paid to third parties such as relocation companies. In addition, when referring a consumer to another agent, there must be written consent which will show proof you disclosed the fee being paid or received. Below is the new section. It is a cut and paste, not a paraphrase.

SECTION 1.

Chapter 40 of Title 43 of the Official Code of Georgia Annotated, relating to real estate brokers and salespersons, is amended by revising paragraphs (6), (29), and (35) of subsection (b) of Code Section 43-40-25, relating to violations by licensees, schools, and instructors, sanctions, and unfair trade practices, as follows:

“(6) Accepting, giving, or charging any undisclosed commission, fee, rebate, or direct profit, or other valuable consideration on expenditures made for a principal or any undisclosed commission, fee, rebate, or direct profit for procuring a loan or insurance or for conducting a property inspection, or for any other service related to a real estate transaction;“

“(29) Failing to cause or preventing the disclosure of, on a real estate transaction settlement statement, settlement document, lease agreement, or management agreement, any fee, charge, rebate, profit, commission, referral fee, or other valuable consideration for any service related to such transaction and the recipient of the consideration; Reserved;“

“(35) Failing to obtain a person’s written agreement to refer that person to another licensee for brokerage or relocation services and to inform such person being referred whether or not the licensee will receive a valuable consideration for such referral and an estimate of such consideration.“

Cobb County Business License

carolmoson — Fri, 26 Feb 2010 14:17:01 +0000

The Cobb County Commissioner’s office is looking to require rental properties to have a business license. While it could be perceived that rental properties is a business, most owners of rental property will tell you the profit does not come until the property is sold.

There are many factors a rental property owner must consider such as: vacancies, repairs, taxes (which are higher than owner occupied), more down-payment, higher interest rates, HOA dues, fines and violations incurred by tenant’s actions, etc. “At the end of the day,” according to one person interviewed by us, “there is no profit from rent receipts. I am lucky to break even.”

Here is what we are paying attention to:

If license will be required for rental properties, will it be one license per property or per owner? (huge difference there) The REALTORS® have fought rental registration and one license per property can be interpreted as a “back door” approach rental registration.

Rob Hosack’s article in the Marietta Daily Journal discusses several levels of charging for the business license. At one point he refers to gross revenue and at another he references “profit from rentals”. We question how they plan to determine “profit.”

We also question the following scenario: You need to sell your home because you are moving but it is not selling so you decide to rent because you have to move. Are you now a business? Technically this would also apply to renting a room in our house, even to your child!

Another point: How the heck are they going to monitor all this?! This will require an CONSTANT monitoring of deeds. What is the cost to monitor vs. the return?

Who will actually end up paying? Will it be a few honest people who step up to pay? Is that fair? Are we opening up the potential to lawsuits? At last week’s Commissioner’s meeting ( Feb 23rd) a citizen made the point of the profit not coming until the sale and asked, “Does this mean you will start taxing my stock investments?” Where does it end?

In the MDJ article it is said that “This simply gets everyone receiving a profit from business transactions on a level playing field,” Foster said. (Foster is the business license manager). Well the fact is that is NOT a level playing field to begin with in that owners of rental property already pay higher property taxes because non-owner occupied properties are not eligible for the Homestead Exemption. (we do recognize the homestead exemption has gone away this year and possibly next, but this is a temporary situation). Taxing on gross receipts means taxing on money not earned as profit. Again, gross rental receipts, in most cases, just cover the monthly costs of the property. How can they justify taking money from an individual on money not earned as profit. The process of renting properties is NOT equal to other business’.

There are other points to our discussions with the county but we would really like to hear from you as well. Please comment to this blog so we can have more information and public view to bring to the commissioners.

Thank you for your participation in this – we will keep you posted. Click here for the MDJ Article

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR,EAH
Sales/Instructor/Trainer
RE/MAX Greater Atlanta
“The Moson Group”
678-414-0760 (direct)
770-973-9700 ext 289

Your Home Appraisal and the HVCC

carolmoson — Fri, 26 Feb 2010 04:07:11 +0000

NAR Works to Address Appraisal Challenges in the HVCC

The Home Valuation Code of Conduct (HVCC) was initiated by the New York State Attorney General’s Office and establishes standards for solicitation, selection, compensation, conflicts of interest and appraiser independence. As of May 1, 2009 all mortgages sold to Freddie Mac or Fannie Mae are subject to the new regulations set forth in the HVCC. NAR is heavily engaged in the battle to educate federal regulators and Congress on the unintended consequences of the HVCC in the appraisal process and is asking Congress to adopt an 18-month moratorium on the HVCC.

GAR members, led by our Federal Political Coordinators have met with several of our Congressmen and Senator Isakson to discuss the challenges presented by the HVCC. If you or your clients have experienced complications in the marketplace due to recent changes in the appraisal process please feel free to contact your Congressman and Senators. Ask them to co-sponsor HR 3044 and support an 18-month moratorium on the HVCC to ensure sure we “get it right” and do not erode the marketplace any further.

To learn more about what efforts NAR has taken on this issue, click here.

To contact your Congressman or Senator, click here.

If you have additional questions please feel free to contact us
This information has been prepared by the Georgia Association of REALTORS Legislative Link

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR,EAH
Sales/Instructor/Trainer
RE/MAX Greater Atlanta
“The Moson Group”
678-414-0760 (direct)
770-973-9700 ext 289

Short Sale Guidelines Issued By The Treasury

carolmoson — Fri, 26 Feb 2010 03:58:13 +0000

Short Sales Program Guidelines Issued by Treasury Department

On November 30, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012. To learn more visit: click here for short sale basics

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR,EAH
Sales/Instructor/Trainer
RE/MAX Greater Atlanta
“The Moson Group”
678-414-0760 (direct)
770-973-9700 ext 289

Water Expected To Be A Major Issue in 2010

carolmoson — Fri, 26 Feb 2010 03:39:10 +0000

The Governor’s Water Contingency Task Force issued their final report in December 2009 with a focus on the three C’s, conserve, capture, and control. The Task Force discovered that if a Lake Lanier compromise is not reached within the three year window provided by the Federal Judge, Georgia cannot conserve or capture enough water in that time to meet our projected water supply shortfall. While this leaves Georgia in a difficult negotiating position, Governor Purdue has acknowledged he expects a water compromise to be reached sometime in 2010.

Regardless of the outcome of the Lake Lanier negotiations, the Task Force recommended a series of “no regret” incentive based water conservation measures, which fall in line with policy recommendations presented by a GAR Presidential Advisory Group (PAG). The GAR State and Local Government Committee recently reviewed the policy recommendations and approved a series of position statements on Water Policy, Water Supply and Conservation, and Point-of-Sale Mandates focused on protecting the water rights of property owners, preventing unfunded government conservation mandates such as retrofit at resale, and advocating for conservation measures based on market based incentives.

Water supply and conservation will be a major issue during the 2010 legislative session, and GAR will be monitoring this issue very closely. To stay up date with the latest water news sign up for our RSS feed.

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR,EAH
Sales/Instructor/Trainer
RE/MAX Greater Atlanta
“The Moson Group”
678-414-0760 (direct)
770-973-9700 ext 289

Georgia Association of REALTORS continue to…

carolmoson — Fri, 26 Feb 2010 03:22:04 +0000

With several gun bills on the table, the Georgia Association of REALTORS continue to work hard to protect private property rights and the Second Amendment. We ABSOLUTELY support the second amendment however we also believe that an owner of private property should have the right to prohibit someone from bringing a gun on their property. Additionally, if someone should bring a gun on your property and someone got shot, you as the homeowner should NOT be liable for the “should have known” factor.

Here are a couple of bills that have come up so far that favor what we are in favor of HB615 and SB308

Please let us know if you have any questions

Carol

Carol Moson, CRS, ABR, e-Pro, GREEN, SRS, SFR,EAH
Sales/Instructor/Trainer
RE/MAX Greater Atlanta
“The Moson Group”
678-414-0760 (direct)
770-973-9700 ext 289