GENERAL INFORMATION
REALTORS® Hit the Hill in Harrisburg
On Wednesday morning, nearly 100 REALTORS® visited Capitol Hill to discuss legislative issues with their elected officials. The hill visits, nearly 70 in all, were conducted as part of the annual Government Affairs Seminar, and allowed REALTORS® to talk about issues that are important to the industry. Members discussed Senate Bill 241 (Tomlinson, R-Bucks) which would allow escrow funds to be disbursed after a certain amount of time following termination of an agreement of sale, and asked legislators to support the bill when it is considered in committee next week. Also discussed was PAR support for a statewide housing trust fund to develop programs to build, rehab and preserve homes specifically for low to moderate income individuals and families, seniors, and people with disabilities. House Bill 60 (Daley, D-Washington) and Senate Bill 599 (Yaw, R-Bradford) would implement the fund. The hill visits followed a successful legislative reception held the evening before, which was attended by 85 members of the General Assembly.
Source: Pennsylvania Association of REALTORS Capital Briefs; 3/27/09
BUCKS COUNTY
Bipartisan Task Force rallies to save Washington Crossing Visitors Center
The current economic crisis is taking its toll on history. The Washington Crossing Visitors Center located in Upper Makefield Township is facing a budget cut from the state of about 20 percent. Add to that the need for renovations to correct a leaking roof and mold and the center may be forced to shut down. A bi-partisan task force was announced by Congressman Patrick Murphy, D-8, and Upper Makefield Supervisors Chairman Dan Rattigan and includes PA State Reps. Steve Santarsiero (D-31), Scott Petri (R-178), Bucks County Commissioners and local residents. The Washington Crossing Task Force is seeking non-profit status for fundraising purposes and will continue searching for solutions for the state-run center to recover and remain viable. Possible solutions run the gamut between local grassroots efforts to keep the center open, to the possibility of having the site added to the National Park System. All task force members agree the center represents a significant part of history that cannot be ignored or allowed to shut down.
Source: BucksLocalNews.com 3/17/09 & The Intelligencer 3/18/09
Bucks County Technical High sends off $22.4M budget for approval
The 2009-10 proposed $22.4 million budget for Bucks County Technical High School is about $700,000 greater than the previous year with the budget increase being attributed to operating expenses. A joint committee made up of members of the six participating school systems, voted 10-4 to forward the budget to the feeder boards for consideration. Approval by four of the six participating school systems and at least 28 board members is needed before final approval is attained.
Source: Bucks County Courier Times 3/24/09
Newtown Borough Council reviews Traffic Committee’s Comprehensive Plan
The Newtown Borough Traffic Committee recently presented a comprehensive plan to Borough Council. The plan consists of short-term and long-term goals to improve pedestrian safety, establish a community awareness campaign aimed at traffic safety and decrease dangerous driving on borough roads. Funding options include a proposed $30,000 PennDOT Smart Transportation grant. The borough will begin to consider some short-term ideas with further discussion to follow.
Source: BucksLocalNews.com 3/19/09
Proposed village-style shopping in Hilltown Township
Wally Rosenthal, owner of the Hilltown Pub, proposed a village-style shopping center for 40 acres he owns along Route 309 and Swartley Road . The “Hilltown Promenade” would require rezoning for shops, restaurants, a hotel and possibly age-restricted apartments. Supervisors reacted positively to the concept and recommended Rosenthal go through the normal land development process.
Source: The Intelligencer 3/24/09
CHESTER COUNTY
Survey: Chester County residents like what they have
Life is good - except in traffic. In a nutshell, that is the message Chester County residents gave to researchers surveying their opinions for county commissioners, who plan to use the responses while developing a long-range strategic plan to deliver county services. The survey found that a significant majority of respondents say the county is a better or as good a place to live as it was five years ago. It remains an excellent place to raise a family and a good place to get an education and buy a home, respondents said. The respondents liked the county’s open space and its convenient location. They found county workers to be courteous and knowledgeable, and they would be willing to pay higher taxes if it meant children were not abused and criminals were imprisoned. But they did not like the county’s roads, traffic, taxes and cost of living, and they said land-use planning is a concern. Respondents were concerned about overdevelopment and had little time or inclination for a property reassessment. Key indicators show 75 percent of residents believe Chester County is a good place to live, and more than half (55 percent) say it is an excellent place to raise a family. One in three citizens responded that open space is the best thing about Chester County life.
Source: Main Line Suburban Life; 3/25/09
Districts react to declining land value: Officials warn that as property values fall, tax rates will rise
The recent decline in real estate value has prompted droves of local land owners to seek reassessments to lower their property taxes. In 2004, the Chester County Board of Assessment Appeals received 824 reassessment requests. That number rose to 1,342 in 2005 and stayed about the same in 2006 and 2007. In 2008, however, nearly 2,000 requests were filed through the county’s Department of Assessments. In turn, this has strained the budgets of public school districts, which rely on local property taxes for much of their funding. Not all of Chester County 's school districts have been equally affected. While finance directors of the West Chester Area and the Downingtown Area school districts said reassessments have caused substantial declines in property tax income, the finance directors of Coatesville Area, Great Valley , and Tredyffrin/Easttown school districts said they've seen little change. Property owners in Chester County can file reassessment appeals from May 1 to Aug. 1. The board of assessment appeals — not local school districts or municipalities — is responsible for reassessing properties.
Source: Daily Local; 3/23/09
Breaking ground: Wegman’s starts constructions at Uptown Worthington complex in East Whiteland
Wegman’s has broken ground and started construction of its new supermarket at Uptown Worthington, a $520 million O’Neill Properties Group Project. The grocery store will be the first retailer to open in the spring of 2010 in Uptown Worthington. When complete, Uptown Worthington will be home to a 1.6 million-square-foot development with 753 residences and 745,000 square feet of retail space, 490,000 square feet of office space and a 240 room hotel. The project will also feature green-friendly infrastructure with a LEED-designated office building, a connection to and extension of the Chester County Rails-to-Trails bike path and the reopening of Little Valley Creek, which had previously been enclosed in a pipe under asphalt paving.
Source Daily Local; 3/25/09
Chester County adds $1 million to Schuylkill River Trail project
Chester County Commissioners approved a $1 million grant for the Schuylkill River Trail, officials with the Schuylkill River Heritage Area announced March 18. The funds are the first step in closing a key missing link in the trail, which when complete will allow hikers and bikers to travel from Philadelphia to Reading — a distance of nearly 60 miles. The trail's construction has been under way since the 1980s. The goal is a 130-mile trail along the Schuylkill River from Philadelphia to Pottsville . The commissioners' $1 million grant will partially fund a 3.5-mile section of the missing link that runs through Chester County . In all, the nonprofit will need $1.8 million to construct this section, and the county has applied to the Pennsylvania Department of Conservation and Natural Resources for the balance of funds. Once the funding is in place, construction will happen in three phases and will likely start next spring, planners say.
Source: Daily Local; 3/25/09
DELAWARE COUNTY
Upper Darby seeking comments on new zoning map
Planners and township officials continue to accept comments from residents about changes to the new zoning map. Three meetings were held last week to give residents from across the Township an opportunity to attend. Chief Administrative officer Thomas Judge Jr. and Councilman/zoning Chairman Donald Bonnett provided information on the process to those in attendance. The goals and objectives of the comprehensive plan were to give the Township areas of focus for economic development, neighborhood preservations, transportation efficiency, environmental protection and design quality. The entire proposal can be viewed on the Township’s website at www.upperdarby.org. Comments or questions can be directed to the mayor’s office at 610-734-4103, or by email to the Director of License and Inspection Jeff Gentil at jgentile@upperdarby.org.
Source: Daily Times; 3/24/09
Hearing set for suspended Radnor manager
Suspended Township Manager David A. Bashore will address the issues that led to his removal at a public meeting scheduled for 6 p.m. April 13 at the township building, his lawyer said Tuesday. The board of commissioners is expected to pass a resolution to fire him at the board’s regularly scheduled township meeting at 7 p.m.
Source: Daily Times; 3/25/09
Jobless rate in Delco hits 6.4 percent
Delaware County’s unemployment rate jumped nearly 1 percent between December and January, according to data collected by the Pennsylvania Labor Department. Though the county’s jobless rate edged up from 5.7 percent to 6.4 percent in a mere month, it is still well below statewide and national rates, which stand at 7.5 percent and 8.1 percent, respectively.
Source: Daily Times; 3/24/09
Tinicum still fearful of Philly Airport plan
Tinicum Township officials are keeping a close eye on Philadelphia International Airport plans to expand by displacing 82 homes and businesses in the 2nd Ward. Officials are also monitoring the failure to reach an agreement with the city that previously provided revenue to the township. When the acquisition or demolition of township property is expected to occur is in limbo. Either one of two runway expansion alternatives, with a projected cost between $5.2 billion and $5.4 billion, could take 12 years to build. The alternatives would allow a fifth runway to be built, in addition to the extension of present runways. The object is to decrease airport delays between 5.2 and 4.7 minutes by 2020. The time reduction would be down from a projected 19.3 minutes with no expansion, according to a draft environmental statement released by the Federal Aviation Administration in September.
Source: Daily Times; 3/23/09
MONTGOMERY COUNTY
Federal grant eases sewer connection burden for some Salford residents
Salford Sewer Advisory Board Chairperson and Township Supervisor Barb Lynch announced that the township was awarded federal grant money totaling $350,000 through Congressman Charles Dent’s office. Approximately 100 homes in the Tylersport area slated for water and sewer hookups will benefit through $3,500 in savings from the grant. The total cost of the project has been estimated between $1.7 and $2.1 million.
Source: Souderton Independent 3/18/09
Lower Providence adds 23 acres of open space
Lower Providence Supervisors unanimously approved the purchase of two parcels of land totaling 23 acres to be used for open space. The first tract is located at Crawford Road and consists of 9.13 acres. The second tract of 13.76 acres is located at the end of Yerkes Road running along the Perkiomen Creek. The purchase of both parcels was subsidized by the Montgomery County Green Field/Green Towns Program.
Source: The Times Herald 3/21/09
Spring-Ford Area High School construction bids come in nearly $6M under projections
Expecting a price tag of $28 million, the Spring-Ford Area School Board was excited when bids for the construction of a 106,000 square foot addition to the high school came in close to $6 million below projections. Approximately $3 million of the savings will be used for upgrades to the project, but it is not clear what the school board will decide to do with the remaining $3 million which can be returned to the bond holders or used for other capital projects. Faced with falling revenue and a proposed 4.94 percent property tax hike for the 2009-10 budget, there are some hard choices ahead for board members who did not comment on when a decision will be made.
Source: The Times Herald 3/21/09
Lower Merion moves another step toward Ardmore Station revitalization
Lower Merion Township took another vital step forward in the their quest to revitalize the Ardmore Train Station by selecting Urban Engineers as the architectural and engineering partner. Urban Engineers will work hand in hand with development partner Dranoff Properties. Carl Dranoff presented the township with its first update since November and announced that the initial $5.8 million federal grant for transit improvements was secured, and additional public funding of $6 million from the state and $10 million in commitment from SEPTA have been acquired. Dranoff’s firm recently launched a website dedicated to the project www.ArdmoreStation.com and hopes to begin Phase 1 before the end of 2010.
Source: Main Line Times 3/19/09
Sunday, March 29, 2009
Tuesday, March 17, 2009
REALTY UPDATE: Week of March 16, 2007
GENERAL INFORMATION
Education stimulus spending outlined
Under Gov. Rendell's proposal for spending federal education stimulus money, Philadelphia schools would stand to get $361 million in additional funding next school year, and suburban districts would get a total of $88 million in new funding. That money is part of $1.1 billion in stimulus money that Pennsylvania would spend on assorted education programs starting in July, according to a plan released by the state Department of Education. About a third of that money would go directly to a handful of programs targeted to low-income students and special education. Rendell wants to designate the rest of the money - totaling $728 million - to two broad programs. One would supplement the state's regular education funding, which otherwise could face cuts reflecting the poor state of economy. The other would represent new money that districts could use on a variety of programs, including classroom instruction, school renovations, and technology upgrades. It could also be used to make up for any lost school-tax revenue. Many districts around Philadelphia would not be in line to receive sizable funding increases from the infusion of stimulus money, however. Because most stimulus allocations would be weighted toward poorer districts, prosperous ones would not get much. About half of the 64 suburban districts, for example, would get less than $1 million. Click here to see the level of stimulus spending for local school districts.
Source: Philadelphia Inquirer; 3/12/09
Galloway, Melio, Petri propose school tax convention
Legislation proposed by Rep. John Galloway, D-141, Rep. Tony Melio, D-140 and Rep. Scott Petri, R-178 takes aim at Pennsylvania ’s “ineffective and unfair” system of school taxes. The bill was introduced on Feb. 27 and proposes a constitutional convention in 2010 with the objective to “develop a statewide education funding system that supports the principles of equity, adequacy, efficiency, accountability and predictability” according to Galloway .
Source: The Intelligencer; 3/11/09
BUCKS COUNTY
Current economy yields more open space in Bucks
Bucks County planners have noted that the current state of the economy has resulted in more opportunities for open space preservation for municipalities throughout the county. As the economy has slowed, so has the demand for development rights, opening up possibilities for more open space. Plumstead Township recently purchased 59 acres for preservation for $796,500. With help from Bucks County and state preservation grants, the township has another 50-acre horse farm under agreement. Buckingham Township has preserved more than 1,000 acres in the past decade and has taken a proactive approach to open space preservation: the agricultural preservation committee sent out letters to landowners with 20 or more acres, inviting them to a meeting to learn more about land preservation. About 15 landowners responded, and nine attended the meeting. Countywide, the demand for new construction decreased 54 percent from 2007 to 2008, with just 826 housing units reviewed by the Bucks County Planning Commission in 2008, the lowest level since 1970.
Source: The Intelligencer; 3/10/09
Quakertown looks to cut athletic budget
In an attempt to decrease a $3.5 million budget deficit in the 2009-2010 preliminary budget, an Athletics Committee at Quakertown School District was commissioned to find ways to cut athletic expenses by 20 percent. The current athletic budget stands at about $650,000 and the committee, made up of administrators, teachers, coaches and parents will weigh all possibilities while striving to maintain opportunities for middle and high school students and ensuring their safety on the field. In February, the school board approved an $86.9 million preliminary budget that would increase taxes by 5.8 percent, or $211 for the average homeowner.
Source: The Intelligencer 3/13/09
Police in 14 municipalities to get over $457,000 in federal grants
Fourteen Bucks County municipalities are slated to receive grant money provided by the recently-passed American Recovery and Reinvestment Act, through the Department of Justice’s Edward Byrne Justice Assistance Grant for state and local law enforcement. Overall, the Recovery Act contains more than $4 billion for law enforcement and criminal justice activities. Bensalem will receive the largest grant in Bucks County - $77,549. Most police forces will use the grants for more officers, gang and drug crime prevention, technology upgrades and communications.
Source: The Intelligencer; 3/8/09
CHESTER COUNTY
Gas company pursues eminent domain for pipeline
Williams Transco, the natural gas giant who has a project to replace a seven-mile section of their pipeline in the county, has started condemnation proceedings against 36 property owners who have not accepted offers made for their land. The company will be filing a joint motion expressing its need for immediate access. The action was criticized by legislators who have sought to help residents whose property is being severely affected by the natural gas company's desire for additional right-of-way for the project. The county is crisscrossed with existing pipelines by eight different companies that bring natural gas, liquid gas or other petroleum products through 62 of Chester County 's 73 municipalities. Currently, at least three natural gas companies have new pipeline or pipeline expansion projects going on in the county.
Source: Daily Local; 3/11/09
East Vincent looking to keep growth in check
Due to an unforeseen zoning flaw, residential development was gravitating toward the areas most desirable for preservation, according to township officials. Last month, residents listened to a presentation on East Vincent's open space design option. Township Planner Ray Ott explained that this ordinance — updated in 2002 — was actually steering builders to areas zoned rural conservation and agricultural preservation.
The basic premise of transferable development rights, or TDRs, is to steer higher density development to targeted, desirable areas, while preserving farmland and open space in other areas. While several Chester County townships use TDRs as a planning tool, only New Hanover in Montgomery County has a current policy.
Source: Pottsmerc; 3/9/09
PASD's 'tightest budget' to get tighter
The school board voted for even deeper cuts in the budget. Dr. Terry Mancini, Acting Superintendent of the Phoenixville Area School District , had proposed a 2009-2010 total budget of $73,992,000, a 2.60 percent increase over this current year. That would have translated into a 2.36 percent budget-to-budget property tax increase (compared to 7.30 percent increase last year) and a proposed millage increase of 0.61 (compared to last year's increase of 1.45 mils), for a total proposed millage of 26.50. A mil represents an amount of property tax for every $1,000 of that property's assessed valuation.
Source: The Phoenix ; 3/11/09
East Vincent to purchase part of Pennhurst site
For the price of $1, the township will likely purchase 72 to 74 acres of the former Pennhurst property for future use as open space. Future use will involve both active and passive open space, said Supervisor Christine McNeil. Buildings are not part of the township's purchase, she said. This agreement comes just over one year after a private group purchased a 111-acre portion of Pennhurst State School and Hospital from Pennsylvania . The commercial partnership, headed by Richard Chakejian, has not yet brought development plans to East Vincent.
Source: Daily Local; 3/10/09
DELAWARE COUNTY
Discounted flood insurance is available in Parkside
Borough Engineer Lisa Catania is urging all residents who live near Chester Creek or its tributaries to update their flood-insurance coverage, before new state-drawn flood plain maps go into effect. The Pennsylvania Emergency Management Agency (PEMA) will be adopting a new Flood Insurance Rate Map (FIRM) this spring. Flood-insurance rates based on this map will then be adjusted accordingly. At-risk property owners would need to inspect the new map to determine whether a given lot will be inside or outside the designated flood plain. An enlarged copy of the revised FIRM will be hung in the hallway of the municipal building ( 22 E. Elbon Road ) for public inspection.
Source: Daily Times; 03/12/09
Rose Tree Media lowers proposed tax increase
The revised millage rate increase for Rose Tree Media now is 4.81 percent, which equates to an increase of $239.62 for a property assessed at an average $236,106. The preliminary budget adopted by the board Jan. 22 called for a 6.33 percent millage hike to balance. This meant $315.53 more in school taxes for the coming year. District Superintendent Denise Kerr indicated the millage increase could be reduced even more. She said town meetings on the budget will take place at Springton Lake Middle School and Penncrest High School , as well as in various retirement communities. There also will be a budget work session 7:30 p.m. March 23, which is open to the public. If a second session is necessary, it would be 7 p.m. April 16. A final budget won’t be put to a vote of the board until its June meeting.
Source: Daily Times; 3/11/09
Middletown residents express displeasure with new Mint plan
Middletown Council and the public got their first look at a conceptual plan for development of the former 150-acre Franklin Mint property Monday night. Victor Dover, of Dover, Kohl & Partners, the facilitator for the charrette planning process — a week of community discussions that took place in August 2008 — reported on the charrette and the plan that arose from it to a standing-room-only audience that overflowed into the township building vestibule and out into the parking lot. It drew mixed response. The concept for development has been scaled back from a previous Franklin Town Center plan presented by the development team in 2006. That plan showed 1,300 residential units, 230,000 square feet of office space, 1.4 million square feet of commercial space and a 300-room hotel. It was soundly rejected by council. The new concept is roughly two-thirds this size. It calls for 980 housing units, 230,000 square feet of office space, 798,000 square feet of commercial space and a 225-room hotel. Most people who spoke raised concerns about the impact of a modified town center on existing traffic and businesses in the township, including the nearby already struggling Granite Run Mall. Density was a concern as well. “There are many more meetings ahead before a plan is filed with the township. Councilman Mark Kirchgasser urged residents to contact their council representative with any questions.
Source: Daily Times; 3/10/09
Vacancy on Marcus Hook Borough Council
A vacancy exists for a council person at large in the Borough of Marcus Hook. Residents of the Borough interested in serving on the Borough Council should submit their letter of interest to Bruce A. Dorbian, Borough Manager/Secretary, 10th & Green Streets, Marcus Hook, PA 19061. This information must be received no later than the close of business on March 24, 2009.
Source: Daily Times; 03/12/2009
MONTOGMERY COUNTY
Upper Merion approved for highway grant
The Delaware Valley Regional Planning Commission, the agency that distributes the federal stimulus funds for the region, has approved Upper Merion Townships Expressway ramps to receive a grant for $14.5 million. The project, which cost the township $2 million in preparation, could begin construction as early as this summer.
Source: Times Herald; 3/8/09
Upper Moreland eyes $11 million in stimulus funding for roadway improvements
Township Commissioners approved moving forward with an application for three road projects on Upper Moreland ’s wish list at a tune of $11 million. A $3 million project would add an extra lane onto the turnpike entrance ramp from southbound Route 611, which would require re-construction of the bridge over the ramp. A second proposal would widen and add a lane on Welsh Road between Twining and Blair Mill Roads at an estimated cost of $5 million. The third proposed project would widen the Terwood Road-Davisville Road intersection with an expected cost of $3 million.
Source: The Intelligencer; 3/10/09
Montgomery Township wants land appraisal for 13.7 acres slated for parkway
Officials in Montgomery Township are wary of recent offers from the state Department of Transportation for two parcels within the township slated for construction of the Route 202 parkway. PennDOT has offered Montgomery Township $137,000 for a 13.7-acre tract along Horsham Road , but township officials have ordered an appraisal to determine the land’s worth in today’s market. PennDOT has also offered the township $850,000 for six acres on County Line Road between Upper State and Stump Roads, a tract less than half the size of the Horsham Road parcel. In February, Montgomery sold two small parcels to PennDOT for $31,500, bringing the total right-of-way sales for the parkway to $257,000 since December 2007. The approximately nine-mile, $200 million parkway will connect Route 63 in Montgomery Township with Route 611 in Doylestown Township . The entire road is expected to be completed in 2011.
Source: The Intelligencer; 3/13/09
Education stimulus spending outlined
Under Gov. Rendell's proposal for spending federal education stimulus money, Philadelphia schools would stand to get $361 million in additional funding next school year, and suburban districts would get a total of $88 million in new funding. That money is part of $1.1 billion in stimulus money that Pennsylvania would spend on assorted education programs starting in July, according to a plan released by the state Department of Education. About a third of that money would go directly to a handful of programs targeted to low-income students and special education. Rendell wants to designate the rest of the money - totaling $728 million - to two broad programs. One would supplement the state's regular education funding, which otherwise could face cuts reflecting the poor state of economy. The other would represent new money that districts could use on a variety of programs, including classroom instruction, school renovations, and technology upgrades. It could also be used to make up for any lost school-tax revenue. Many districts around Philadelphia would not be in line to receive sizable funding increases from the infusion of stimulus money, however. Because most stimulus allocations would be weighted toward poorer districts, prosperous ones would not get much. About half of the 64 suburban districts, for example, would get less than $1 million. Click here to see the level of stimulus spending for local school districts.
Source: Philadelphia Inquirer; 3/12/09
Galloway, Melio, Petri propose school tax convention
Legislation proposed by Rep. John Galloway, D-141, Rep. Tony Melio, D-140 and Rep. Scott Petri, R-178 takes aim at Pennsylvania ’s “ineffective and unfair” system of school taxes. The bill was introduced on Feb. 27 and proposes a constitutional convention in 2010 with the objective to “develop a statewide education funding system that supports the principles of equity, adequacy, efficiency, accountability and predictability” according to Galloway .
Source: The Intelligencer; 3/11/09
BUCKS COUNTY
Current economy yields more open space in Bucks
Bucks County planners have noted that the current state of the economy has resulted in more opportunities for open space preservation for municipalities throughout the county. As the economy has slowed, so has the demand for development rights, opening up possibilities for more open space. Plumstead Township recently purchased 59 acres for preservation for $796,500. With help from Bucks County and state preservation grants, the township has another 50-acre horse farm under agreement. Buckingham Township has preserved more than 1,000 acres in the past decade and has taken a proactive approach to open space preservation: the agricultural preservation committee sent out letters to landowners with 20 or more acres, inviting them to a meeting to learn more about land preservation. About 15 landowners responded, and nine attended the meeting. Countywide, the demand for new construction decreased 54 percent from 2007 to 2008, with just 826 housing units reviewed by the Bucks County Planning Commission in 2008, the lowest level since 1970.
Source: The Intelligencer; 3/10/09
Quakertown looks to cut athletic budget
In an attempt to decrease a $3.5 million budget deficit in the 2009-2010 preliminary budget, an Athletics Committee at Quakertown School District was commissioned to find ways to cut athletic expenses by 20 percent. The current athletic budget stands at about $650,000 and the committee, made up of administrators, teachers, coaches and parents will weigh all possibilities while striving to maintain opportunities for middle and high school students and ensuring their safety on the field. In February, the school board approved an $86.9 million preliminary budget that would increase taxes by 5.8 percent, or $211 for the average homeowner.
Source: The Intelligencer 3/13/09
Police in 14 municipalities to get over $457,000 in federal grants
Fourteen Bucks County municipalities are slated to receive grant money provided by the recently-passed American Recovery and Reinvestment Act, through the Department of Justice’s Edward Byrne Justice Assistance Grant for state and local law enforcement. Overall, the Recovery Act contains more than $4 billion for law enforcement and criminal justice activities. Bensalem will receive the largest grant in Bucks County - $77,549. Most police forces will use the grants for more officers, gang and drug crime prevention, technology upgrades and communications.
Source: The Intelligencer; 3/8/09
CHESTER COUNTY
Gas company pursues eminent domain for pipeline
Williams Transco, the natural gas giant who has a project to replace a seven-mile section of their pipeline in the county, has started condemnation proceedings against 36 property owners who have not accepted offers made for their land. The company will be filing a joint motion expressing its need for immediate access. The action was criticized by legislators who have sought to help residents whose property is being severely affected by the natural gas company's desire for additional right-of-way for the project. The county is crisscrossed with existing pipelines by eight different companies that bring natural gas, liquid gas or other petroleum products through 62 of Chester County 's 73 municipalities. Currently, at least three natural gas companies have new pipeline or pipeline expansion projects going on in the county.
Source: Daily Local; 3/11/09
East Vincent looking to keep growth in check
Due to an unforeseen zoning flaw, residential development was gravitating toward the areas most desirable for preservation, according to township officials. Last month, residents listened to a presentation on East Vincent's open space design option. Township Planner Ray Ott explained that this ordinance — updated in 2002 — was actually steering builders to areas zoned rural conservation and agricultural preservation.
The basic premise of transferable development rights, or TDRs, is to steer higher density development to targeted, desirable areas, while preserving farmland and open space in other areas. While several Chester County townships use TDRs as a planning tool, only New Hanover in Montgomery County has a current policy.
Source: Pottsmerc; 3/9/09
PASD's 'tightest budget' to get tighter
The school board voted for even deeper cuts in the budget. Dr. Terry Mancini, Acting Superintendent of the Phoenixville Area School District , had proposed a 2009-2010 total budget of $73,992,000, a 2.60 percent increase over this current year. That would have translated into a 2.36 percent budget-to-budget property tax increase (compared to 7.30 percent increase last year) and a proposed millage increase of 0.61 (compared to last year's increase of 1.45 mils), for a total proposed millage of 26.50. A mil represents an amount of property tax for every $1,000 of that property's assessed valuation.
Source: The Phoenix ; 3/11/09
East Vincent to purchase part of Pennhurst site
For the price of $1, the township will likely purchase 72 to 74 acres of the former Pennhurst property for future use as open space. Future use will involve both active and passive open space, said Supervisor Christine McNeil. Buildings are not part of the township's purchase, she said. This agreement comes just over one year after a private group purchased a 111-acre portion of Pennhurst State School and Hospital from Pennsylvania . The commercial partnership, headed by Richard Chakejian, has not yet brought development plans to East Vincent.
Source: Daily Local; 3/10/09
DELAWARE COUNTY
Discounted flood insurance is available in Parkside
Borough Engineer Lisa Catania is urging all residents who live near Chester Creek or its tributaries to update their flood-insurance coverage, before new state-drawn flood plain maps go into effect. The Pennsylvania Emergency Management Agency (PEMA) will be adopting a new Flood Insurance Rate Map (FIRM) this spring. Flood-insurance rates based on this map will then be adjusted accordingly. At-risk property owners would need to inspect the new map to determine whether a given lot will be inside or outside the designated flood plain. An enlarged copy of the revised FIRM will be hung in the hallway of the municipal building ( 22 E. Elbon Road ) for public inspection.
Source: Daily Times; 03/12/09
Rose Tree Media lowers proposed tax increase
The revised millage rate increase for Rose Tree Media now is 4.81 percent, which equates to an increase of $239.62 for a property assessed at an average $236,106. The preliminary budget adopted by the board Jan. 22 called for a 6.33 percent millage hike to balance. This meant $315.53 more in school taxes for the coming year. District Superintendent Denise Kerr indicated the millage increase could be reduced even more. She said town meetings on the budget will take place at Springton Lake Middle School and Penncrest High School , as well as in various retirement communities. There also will be a budget work session 7:30 p.m. March 23, which is open to the public. If a second session is necessary, it would be 7 p.m. April 16. A final budget won’t be put to a vote of the board until its June meeting.
Source: Daily Times; 3/11/09
Middletown residents express displeasure with new Mint plan
Middletown Council and the public got their first look at a conceptual plan for development of the former 150-acre Franklin Mint property Monday night. Victor Dover, of Dover, Kohl & Partners, the facilitator for the charrette planning process — a week of community discussions that took place in August 2008 — reported on the charrette and the plan that arose from it to a standing-room-only audience that overflowed into the township building vestibule and out into the parking lot. It drew mixed response. The concept for development has been scaled back from a previous Franklin Town Center plan presented by the development team in 2006. That plan showed 1,300 residential units, 230,000 square feet of office space, 1.4 million square feet of commercial space and a 300-room hotel. It was soundly rejected by council. The new concept is roughly two-thirds this size. It calls for 980 housing units, 230,000 square feet of office space, 798,000 square feet of commercial space and a 225-room hotel. Most people who spoke raised concerns about the impact of a modified town center on existing traffic and businesses in the township, including the nearby already struggling Granite Run Mall. Density was a concern as well. “There are many more meetings ahead before a plan is filed with the township. Councilman Mark Kirchgasser urged residents to contact their council representative with any questions.
Source: Daily Times; 3/10/09
Vacancy on Marcus Hook Borough Council
A vacancy exists for a council person at large in the Borough of Marcus Hook. Residents of the Borough interested in serving on the Borough Council should submit their letter of interest to Bruce A. Dorbian, Borough Manager/Secretary, 10th & Green Streets, Marcus Hook, PA 19061. This information must be received no later than the close of business on March 24, 2009.
Source: Daily Times; 03/12/2009
MONTOGMERY COUNTY
Upper Merion approved for highway grant
The Delaware Valley Regional Planning Commission, the agency that distributes the federal stimulus funds for the region, has approved Upper Merion Townships Expressway ramps to receive a grant for $14.5 million. The project, which cost the township $2 million in preparation, could begin construction as early as this summer.
Source: Times Herald; 3/8/09
Upper Moreland eyes $11 million in stimulus funding for roadway improvements
Township Commissioners approved moving forward with an application for three road projects on Upper Moreland ’s wish list at a tune of $11 million. A $3 million project would add an extra lane onto the turnpike entrance ramp from southbound Route 611, which would require re-construction of the bridge over the ramp. A second proposal would widen and add a lane on Welsh Road between Twining and Blair Mill Roads at an estimated cost of $5 million. The third proposed project would widen the Terwood Road-Davisville Road intersection with an expected cost of $3 million.
Source: The Intelligencer; 3/10/09
Montgomery Township wants land appraisal for 13.7 acres slated for parkway
Officials in Montgomery Township are wary of recent offers from the state Department of Transportation for two parcels within the township slated for construction of the Route 202 parkway. PennDOT has offered Montgomery Township $137,000 for a 13.7-acre tract along Horsham Road , but township officials have ordered an appraisal to determine the land’s worth in today’s market. PennDOT has also offered the township $850,000 for six acres on County Line Road between Upper State and Stump Roads, a tract less than half the size of the Horsham Road parcel. In February, Montgomery sold two small parcels to PennDOT for $31,500, bringing the total right-of-way sales for the parkway to $257,000 since December 2007. The approximately nine-mile, $200 million parkway will connect Route 63 in Montgomery Township with Route 611 in Doylestown Township . The entire road is expected to be completed in 2011.
Source: The Intelligencer; 3/13/09
Friday, March 6, 2009
UPDATE: Week of March 9, 2009
GENERAL INFORMATION
Stimulus plan to impact housing in the region
Two major economic stimulus plans that will have a direct impact on housing affordability and mortgage foreclosure prevention in southeastern Pennsylvania have recently been enacted by President Obama and Congress. Following is a summary of the elements of these plans that may have the most positive impact on home buyers, homeowners and the real estate industry in Bucks, Chester, Delaware and Montgomery Counties. Click here for more.
A home-building ban in an economic crisis?
Amid an economic disaster that has brought the home-building industry to its knees, Pennsylvania lawmaker Robert Freeman of Northampton County intends to resume his push for building moratoriums. He wants to ensure that when the orders for new houses start pouring in again, communities have a way to temporarily stop the bulldozers if they do not have adequate growth plans and ordinances in place. Municipalities currently have the right to reject a development proposal if it does not meet local land-use requirements. But they cannot simply declare that no building can occur if in fact there is room to accommodate it. Freeman wants to give them the temporary right to do so - but only if a town determines that it is overwhelmed by development and that its growth plans, ordinances, and zoning are inadequate to address that crush. A bill he sponsored last session would have allowed communities to impose building bans of up to two years if they were rewriting zoning, comprehensive plans, and subdivision and land-development ordinances. The ban could be no more than a year if only one of those land-use documents was being reworked. The bill never made it to a vote. Click here for more.
Source: Philadelphia Inquirer; 3/1/09
BUCKS COUNTY
Commissioner Marseglia proposes ‘ Bucks County Stimulus Incentive’
Bucks County Commissioner Diane Marseglia recently suggested a stimulus plan for the county that would protect residents from higher tax bills and encourage homeowners to hire contractors for renovation projects. Marseglia suggests a temporary freeze on property tax reassessments would allow homeowners to pursue home improvement projects. Commissioner Charley Martin is waiting for feedback on the proposal from county solicitor Glann Hains as to whether the proposal is legally feasible. If approved, the freeze could be limited in time and scope: Reassessments could kick in after six months and the freeze could not apply to improvements in excess of $100,000.
Source: The Intelligencer; 3/4/09
Central Bucks struggles to fill budget gap
A $3.8 million gap in the 2009-2010 school district budget is posing a challenge to Central Bucks School District officials. Over $2.1 million in expenses has already been cut from the $279.7 million preliminary budget that was approved in January, but district officials may have to use approximately $3 million of the district’s reserves to make the budget work. The district has already frozen any hiring of new teachers for the year, cut spending on curriculum and athletics, halted borrowing and discretionary spending at each of its schools, and eliminated 10 education assistant positions. The district is also considering proposals to reduce transportation costs, increase class sizes, and institute “pay-to-play” participation in extracurricular activities to ease the strain on the budget.
Source: The Intelligencer; 3/2/09
Centennial officials debate K-5 building options
Plans for the six elementary schools in the Centennial School District have been examined by district officials, with 13 options presented to the public at a meeting earlier this week. The plans ranged from $55.6 million in individual renovations to a $100 million consolidation project for all 2,600 K-5 students. The six existing elementary schools are nearly 50 years old and require renovations to bring them up to modern standards. Details of the 13 options are posted on the district web site at: www.centennialsd.org.
Source: The Intelligencer; 3/5/09
CHESTER COUNTY
Tredyffrin’s plans are official
The Tredyffrin Township Board of Supervisors has adopted new “Township Comprehensive” and “Historic Preservation” plans. The Comprehensive Plan is used to guide future redevelopment and growth in the township, while the Historic Preservation Plan provides assistance in long-term planning and decision making with respect to historic preservation and community character. Tredyffrin has been working on both plans for the past two years. Visit the Township’s website at www.tredyffrin.org for more.
Source: Main Line Suburban Life; 3/4/09
Slowed growth in East Coventry presents problems for developers
East Coventry’s growth has slowed considerably in the past year. Below is a status update of several East Coventry residential projects:
Blossom Meadows II (Halteman and Kulp roads): In a "holding pattern." Total build out is 27 units.
Meadowbrooke Hunt ( Maack Road ): Nine of the 11 units are built and public improvements are completed.
Whispering Woods: No recent activity.
Painter Tract II: Has received sketch plan approval and will be before the planning commission in the near future.
Bentley Communities LP, of West Chester: Proposing a 112-unit development adjacent to Coventry Glen — off Ellis Woods and East Cedarville roads.
Green Acres: A subdivision on Bethel Church Road , has seen some changes due to a soil conservation plan required by Chester County . The owners are Joseph and Patricia Kandler.
Hidden Acre Estates: A 6-unit development on Grubb Road , Hidden Acres has received final approval, but AMCC Properties III has not proceeded or performed public improvements.
Neuman subdivision, aka Ridgefield Estates: A 6-unit subdivision on Ridge Road , has been extended and is still in the planning phases.
Bittersweet on Schuylkill LLC: A 5-lot subdivision, has been pushed back, or extended.
Source: Potts Mercury; 3/4/09
Brandywine Valley water improvement initiative receives funding
A major initiative to improve water quality in the Brandywine Valley has received more than $236,000 in Department of Environmental Protection Growing Greener grants. About three years ago, the Brandywine Valley and Red Clay Valley associations started work on the program “Red Streams Blue” to improve streams identified by the state as impaired. In an assessment done in the lates 1990s, the state listed about 21 percent, or 127 stream miles, in the Brandywine Creek watershed as impaired. On a state map, impaired streams are shown in red and healthy streams are shown in blue. "Impaired" means a stream's water quality has degraded below standards for its designated use, such as recreation. The Brandywine Valley Association spent more than a year developing restoration plans for four sub-watersheds: Radley Run, Plum Run, Valley Run and Little Buck Run. With funding now in place, the first two major projects for Red Streams Blue can begin. The Brandywine Valley Association will launch a Radley Run stream bank restoration near a subdivision off Leadline Lane , near routes 926 and 202 in Thornbury. A section of Radley Run that flows through the homeowners' association's open space has eroded a 5-foot-deep ravine in residents' back yards. The restoration plan for the stream banks includes creating a new floodplain. In all, the project will cost about $128,000. Some financing is being provided by the homeowners' association. Another project in the Plum Run watershed will use a $141,000 grant received by the Chester County Conservation District to correct severe streambank erosion at Strode's Mill in East Bradford .
Source: Potts Mercury; 3/3/09
DELAWARE COUNTY
Delaware County school districts prep for piece of stimulus pie
Delaware County school district officials are hoping that the same funding formulas that boosted spending in several local school districts last year will bring benefits from the federal stimulus plan this year. Under the current state formula, which officials hope will be used to distribute this year’s stimulus funding, Upper Darby received a 22.42 percent boost, the largest in the commonwealth. Chester Upland, William Penn and Southeast Delco also received multi-million dollar state funding increases under the formula.
Source: Daily Times; 3/4/09
Sharon Hill official tenders resignation
Sharon Hill Council recently accepted the resignation of Vice President Joseph White, who is leaving the position for personal reasons after serving 10 years on council. White was council representative for the police and fire departments and never missed a caucus or council meeting during his years of service. White has 10 months left on his term, and council will seek to fill it with an interim appointment until the November election.
Source: Daily Times; 3/6/09
Radnor Township suspends manager over compensation
The Radnor Township Board of Commissioners took steps Thursday night to start the process of removing its township manager of eight years, David Bashore. The six board members in attendance voted to approve resolutions to request his resignation and to suspend him because of allegations that he misrepresented his compensation to them, altered business records and failed to disclose annual lump-sum bonus payments to himself. Bashore did not attend the special meeting, instead asserting in a statement that the board was in violation of his employment agreement. Bashore’s base salary averaged $163,548 in 2008.
Source: Daily Times; 3/6/09
MONTGOMERY COUNTY
East Norriton gets “best” nod from Business Week
East Norriton topped the list of Pennsylvania towns and placed fifth nation-wide on a list of best affordable suburban towns in America . Affordable housing, a low instance of violent crimes, and a median household income of $73,773 are a few of the factors that attributed to the township’s designation. For the complete article, go to: http://www.businessweek.com/lifestyle/content/feb2009/bw20090219_228108.htm
Source: Montgomery Life; 3/5/09
Springfield School District considers budget cuts
The Springfield Township School Board will have to make some difficult decisions to fill a revenue shortfall of over $1.75 million in the 2009-2010 budget. To eliminate the shortfall, the district will have to either raise taxes by 5.32 percent or pare the $45 million budget by over $1 million. The district has approximately $6.5 million in its two reserve funds, with an additional $8 million designated for current projects.
Source: Springfield Sun; 3/4/09
Waste water treatment 5-year plan examined by Ambler
Ambler Borough Council held a special meeting to discuss the borough’s five-year plan for the waste water treatment plant. Over the next five years, the plant may need to spend up to $5 million in upgrades mandated by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection. By 2011, Ambler would need to be prepared to pay for 20 percent of the total cost. Borough Council will hold another meeting on March 17 to further discuss the five-year plan.
Source: The Ambler Gazette; 3/3/09
Development extension granted to Ridgewood
Upper Providence Supervisors have granted a land development extension for Ridgewood , an active adult community which originally included plans for 450 units. The new deadline of Sept. 24 will give Upper Providence time to re-evaluate the progress of the development. The development is located on the 300 block of Linfield-Trappe Road near Township Line Road . Ultimately, the plan will likely reduce the number of units and shorten the buildings, leaving more open space within the development. According to the Ridgewood web site, the community will consist of 80 percent age-restricted town-homes with no permanent resident under the age of 19 allowed.
Source: Spring-Ford Reporter; 3/5/09
Stimulus plan to impact housing in the region
Two major economic stimulus plans that will have a direct impact on housing affordability and mortgage foreclosure prevention in southeastern Pennsylvania have recently been enacted by President Obama and Congress. Following is a summary of the elements of these plans that may have the most positive impact on home buyers, homeowners and the real estate industry in Bucks, Chester, Delaware and Montgomery Counties. Click here for more.
A home-building ban in an economic crisis?
Amid an economic disaster that has brought the home-building industry to its knees, Pennsylvania lawmaker Robert Freeman of Northampton County intends to resume his push for building moratoriums. He wants to ensure that when the orders for new houses start pouring in again, communities have a way to temporarily stop the bulldozers if they do not have adequate growth plans and ordinances in place. Municipalities currently have the right to reject a development proposal if it does not meet local land-use requirements. But they cannot simply declare that no building can occur if in fact there is room to accommodate it. Freeman wants to give them the temporary right to do so - but only if a town determines that it is overwhelmed by development and that its growth plans, ordinances, and zoning are inadequate to address that crush. A bill he sponsored last session would have allowed communities to impose building bans of up to two years if they were rewriting zoning, comprehensive plans, and subdivision and land-development ordinances. The ban could be no more than a year if only one of those land-use documents was being reworked. The bill never made it to a vote. Click here for more.
Source: Philadelphia Inquirer; 3/1/09
BUCKS COUNTY
Commissioner Marseglia proposes ‘ Bucks County Stimulus Incentive’
Bucks County Commissioner Diane Marseglia recently suggested a stimulus plan for the county that would protect residents from higher tax bills and encourage homeowners to hire contractors for renovation projects. Marseglia suggests a temporary freeze on property tax reassessments would allow homeowners to pursue home improvement projects. Commissioner Charley Martin is waiting for feedback on the proposal from county solicitor Glann Hains as to whether the proposal is legally feasible. If approved, the freeze could be limited in time and scope: Reassessments could kick in after six months and the freeze could not apply to improvements in excess of $100,000.
Source: The Intelligencer; 3/4/09
Central Bucks struggles to fill budget gap
A $3.8 million gap in the 2009-2010 school district budget is posing a challenge to Central Bucks School District officials. Over $2.1 million in expenses has already been cut from the $279.7 million preliminary budget that was approved in January, but district officials may have to use approximately $3 million of the district’s reserves to make the budget work. The district has already frozen any hiring of new teachers for the year, cut spending on curriculum and athletics, halted borrowing and discretionary spending at each of its schools, and eliminated 10 education assistant positions. The district is also considering proposals to reduce transportation costs, increase class sizes, and institute “pay-to-play” participation in extracurricular activities to ease the strain on the budget.
Source: The Intelligencer; 3/2/09
Centennial officials debate K-5 building options
Plans for the six elementary schools in the Centennial School District have been examined by district officials, with 13 options presented to the public at a meeting earlier this week. The plans ranged from $55.6 million in individual renovations to a $100 million consolidation project for all 2,600 K-5 students. The six existing elementary schools are nearly 50 years old and require renovations to bring them up to modern standards. Details of the 13 options are posted on the district web site at: www.centennialsd.org.
Source: The Intelligencer; 3/5/09
CHESTER COUNTY
Tredyffrin’s plans are official
The Tredyffrin Township Board of Supervisors has adopted new “Township Comprehensive” and “Historic Preservation” plans. The Comprehensive Plan is used to guide future redevelopment and growth in the township, while the Historic Preservation Plan provides assistance in long-term planning and decision making with respect to historic preservation and community character. Tredyffrin has been working on both plans for the past two years. Visit the Township’s website at www.tredyffrin.org for more.
Source: Main Line Suburban Life; 3/4/09
Slowed growth in East Coventry presents problems for developers
East Coventry’s growth has slowed considerably in the past year. Below is a status update of several East Coventry residential projects:
Blossom Meadows II (Halteman and Kulp roads): In a "holding pattern." Total build out is 27 units.
Meadowbrooke Hunt ( Maack Road ): Nine of the 11 units are built and public improvements are completed.
Whispering Woods: No recent activity.
Painter Tract II: Has received sketch plan approval and will be before the planning commission in the near future.
Bentley Communities LP, of West Chester: Proposing a 112-unit development adjacent to Coventry Glen — off Ellis Woods and East Cedarville roads.
Green Acres: A subdivision on Bethel Church Road , has seen some changes due to a soil conservation plan required by Chester County . The owners are Joseph and Patricia Kandler.
Hidden Acre Estates: A 6-unit development on Grubb Road , Hidden Acres has received final approval, but AMCC Properties III has not proceeded or performed public improvements.
Neuman subdivision, aka Ridgefield Estates: A 6-unit subdivision on Ridge Road , has been extended and is still in the planning phases.
Bittersweet on Schuylkill LLC: A 5-lot subdivision, has been pushed back, or extended.
Source: Potts Mercury; 3/4/09
Brandywine Valley water improvement initiative receives funding
A major initiative to improve water quality in the Brandywine Valley has received more than $236,000 in Department of Environmental Protection Growing Greener grants. About three years ago, the Brandywine Valley and Red Clay Valley associations started work on the program “Red Streams Blue” to improve streams identified by the state as impaired. In an assessment done in the lates 1990s, the state listed about 21 percent, or 127 stream miles, in the Brandywine Creek watershed as impaired. On a state map, impaired streams are shown in red and healthy streams are shown in blue. "Impaired" means a stream's water quality has degraded below standards for its designated use, such as recreation. The Brandywine Valley Association spent more than a year developing restoration plans for four sub-watersheds: Radley Run, Plum Run, Valley Run and Little Buck Run. With funding now in place, the first two major projects for Red Streams Blue can begin. The Brandywine Valley Association will launch a Radley Run stream bank restoration near a subdivision off Leadline Lane , near routes 926 and 202 in Thornbury. A section of Radley Run that flows through the homeowners' association's open space has eroded a 5-foot-deep ravine in residents' back yards. The restoration plan for the stream banks includes creating a new floodplain. In all, the project will cost about $128,000. Some financing is being provided by the homeowners' association. Another project in the Plum Run watershed will use a $141,000 grant received by the Chester County Conservation District to correct severe streambank erosion at Strode's Mill in East Bradford .
Source: Potts Mercury; 3/3/09
DELAWARE COUNTY
Delaware County school districts prep for piece of stimulus pie
Delaware County school district officials are hoping that the same funding formulas that boosted spending in several local school districts last year will bring benefits from the federal stimulus plan this year. Under the current state formula, which officials hope will be used to distribute this year’s stimulus funding, Upper Darby received a 22.42 percent boost, the largest in the commonwealth. Chester Upland, William Penn and Southeast Delco also received multi-million dollar state funding increases under the formula.
Source: Daily Times; 3/4/09
Sharon Hill official tenders resignation
Sharon Hill Council recently accepted the resignation of Vice President Joseph White, who is leaving the position for personal reasons after serving 10 years on council. White was council representative for the police and fire departments and never missed a caucus or council meeting during his years of service. White has 10 months left on his term, and council will seek to fill it with an interim appointment until the November election.
Source: Daily Times; 3/6/09
Radnor Township suspends manager over compensation
The Radnor Township Board of Commissioners took steps Thursday night to start the process of removing its township manager of eight years, David Bashore. The six board members in attendance voted to approve resolutions to request his resignation and to suspend him because of allegations that he misrepresented his compensation to them, altered business records and failed to disclose annual lump-sum bonus payments to himself. Bashore did not attend the special meeting, instead asserting in a statement that the board was in violation of his employment agreement. Bashore’s base salary averaged $163,548 in 2008.
Source: Daily Times; 3/6/09
MONTGOMERY COUNTY
East Norriton gets “best” nod from Business Week
East Norriton topped the list of Pennsylvania towns and placed fifth nation-wide on a list of best affordable suburban towns in America . Affordable housing, a low instance of violent crimes, and a median household income of $73,773 are a few of the factors that attributed to the township’s designation. For the complete article, go to: http://www.businessweek.com/lifestyle/content/feb2009/bw20090219_228108.htm
Source: Montgomery Life; 3/5/09
Springfield School District considers budget cuts
The Springfield Township School Board will have to make some difficult decisions to fill a revenue shortfall of over $1.75 million in the 2009-2010 budget. To eliminate the shortfall, the district will have to either raise taxes by 5.32 percent or pare the $45 million budget by over $1 million. The district has approximately $6.5 million in its two reserve funds, with an additional $8 million designated for current projects.
Source: Springfield Sun; 3/4/09
Waste water treatment 5-year plan examined by Ambler
Ambler Borough Council held a special meeting to discuss the borough’s five-year plan for the waste water treatment plant. Over the next five years, the plant may need to spend up to $5 million in upgrades mandated by the U.S. Environmental Protection Agency and the Pennsylvania Department of Environmental Protection. By 2011, Ambler would need to be prepared to pay for 20 percent of the total cost. Borough Council will hold another meeting on March 17 to further discuss the five-year plan.
Source: The Ambler Gazette; 3/3/09
Development extension granted to Ridgewood
Upper Providence Supervisors have granted a land development extension for Ridgewood , an active adult community which originally included plans for 450 units. The new deadline of Sept. 24 will give Upper Providence time to re-evaluate the progress of the development. The development is located on the 300 block of Linfield-Trappe Road near Township Line Road . Ultimately, the plan will likely reduce the number of units and shorten the buildings, leaving more open space within the development. According to the Ridgewood web site, the community will consist of 80 percent age-restricted town-homes with no permanent resident under the age of 19 allowed.
Source: Spring-Ford Reporter; 3/5/09
Homeowner's Affordability and Stability Plan: Updated Description
U.S. DEPARTMENT OF THE TREASURY
Washington
March 4, 2009
Making Home Affordable
Updated Detailed Program Description
The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country. Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance to lower mortgage rates. Meanwhile, millions of workers have lost their jobs or had their hours cut, and are now struggling to stay current on their mortgage payments.
As a result, as many as 6 million families are expected to face foreclosure in the next several years, with millions more struggling to stay current on their payments.
The present crisis is real, but temporary. As home prices fall, demand for housing will increase, and conditions will ultimately find a new balance. Yet in the absence of decisive action, we risk an intensifying spiral in which lenders foreclose, pushing area home prices still lower, reducing the value of household savings, and making it harder for all families to refinance. In some studies, foreclosure on a home has been found to reduce the prices of nearby homes by as much as 9%.
The Obama Administration’s Making Home Affordable program will offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to make their mortgage payments, while attempting to prevent the destructive impact of the housing crisis on families and communities. It will not provide money to speculators, and it will target support to the working homeowners who have made every possible effort to stay current on their mortgage payments. Just as the American Recovery and Reinvestment Act works to save or create several million new jobs and the Financial Stability Plan works to get credit flowing, the Making Home Affordable program will support a recovery in the housing market and ensure that these workers can continue paying off their mortgages.
By supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac, providing up to 4 to 5 million homeowners with new access to refinancing and creating a comprehensive stability initiative to offer reduced monthly payments for up to 3 to 4 million at-risk homeowners, this plan – which draws off the best ideas developed within the Administration, as well as from Congressional housing leaders and Federal Deposit Insurance Corporation Chair Sheila Bair – brings together the government, lenders, loan servicers, investors and borrowers to share responsibility towards ensuring working Americans can afford to stay in their homes.
1. A Home Affordable Refinance Program to Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices:
•Provide the Opportunity for Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80% of the value of their homes have a difficult time securing refinancing. (For example, if a borrower’s home was worth $200,000, he or she would have limited refinancing options if he or she owed more than $160,000.) Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to take advantage of these lower rates. As a result, the Obama Administration’s program will provide the opportunity for up to 4 to 5 million responsible homeowners who took out loans owned or guaranteed by Freddie Mac and Fannie Mae (the GSEs) to refinance through the two institutions over time.
•Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15% to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20% home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.
2. A $75 Billion Home Affordable Modification Program to Prevent Foreclosures and Help Responsible Families Stay in Their Homes: The Treasury Department, working with the GSEs, FHA, the FDIC and other federal agencies, will undertake a comprehensive multi-part strategy to prevent millions of foreclosures and help families stay in their homes. This strategy includes the following five features:
•A Home Affordable Modification Program to Reach Up to 3 to 4 Million At-Risk Homeowners
•Clear and Consistent Guidelines for Loan Modifications
•Requiring That Financial Stability Plan Recipients Use Treasury Guidelines for Loan Modifications
•Allowing Judicial Modifications of Home Mortgages During Bankruptcy When A Borrower Has No Other Options
•Requiring Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal Reserve and HUD to Monitor Performance
•Strengthening FHA Programs and Providing Support for Local Communities
A. A Home Affordable Modification to Reach Up to 3 to 4 Million At-Risk Homeowners: This program is intended to reach millions of responsible homeowners who are struggling to afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. In the current economy, in which 3.6 million jobs have been lost over the past 14 months, millions of hard-working families have seen their mortgage payments rise to 40 or even 50% of their monthly income – particularly if they received subprime and exotic loans with exploding terms and hidden fees. The Home Affordable Modification program operates through a shared partnership to help those who commit to make reasonable monthly mortgage payments to stay in their homes, providing families with security and neighborhoods with stability. This plan will also help to stabilize home prices for homeowners in neighborhoods hardest hit by foreclosures. Based on estimates concerning the relationship between foreclosures and home prices, with the average house in the U.S. valued around $200,000, the average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be absent the Home Affordable Modification program.
Who the Program Reaches:
Focusing on Homeowners At Risk: Homeowners at risk, such as those suffering serious hardships, decreases in income, increases in expenses, payment “shock,” high combined mortgage debt compared to income, who are “underwater” (with a combined mortgage balance higher than the current market value of the house), or who show other indications of being at risk of default may be eligible for a loan modification. Eligibility for the program will sunset at the end of three years.
Reaching Homeowners Before They Have Missed Payments: Delinquency will not be a requirement for eligibility. Rather, because loan modifications are more likely to succeed if they are made before a borrower misses a payment, modifications for households at risk of imminent default despite being current on their mortgage payments are eligible to participate, in addition to those who have fallen behind.
Common Sense Restrictions: Only owner-occupied homes qualify; no home mortgages larger than the FHFA conforming limit of $729,750 will be eligible. This program will focus solely on supporting responsible homeowners willing to make payments to stay in their home – it will not aid speculators or house flippers.
Special Provisions for Families with High Total Debt Levels: Borrowers with high total debt qualify, but only if they agree to enter HUD-certified consumer debt counseling. Specifically, homeowners with total “back end” debt (which includes not only housing debt, but other debt including car loans and credit card debt) equal to 55% or more of their income will be required to agree to enter a HUD-certified counseling program as a condition for a modification.
How the Program Works:
•The Home Affordable Modification program has a simple goal: reduce the amount homeowners owe per month to sustainable levels to stabilize communities. This U.S. DEPARTMENT OF THE TREASURY program will bring together lenders, investors, servicers, borrowers, and the government, so that all stakeholders share in the cost of ensuring that responsible homeowners can afford their monthly mortgage payments – helping to reach up to 3 to 4 million at-risk borrowers in all segments of the mortgage market, reducing foreclosures, and helping to avoid further downward pressures on overall home prices.
The program has several key components:
i.Shared Effort to Reduce Monthly Payments: Treasury will partner with financial institutions and investors to reduce homeowners’ monthly mortgage payments.
-The lender will have to first reduce monthly payments on mortgages to a specified affordability level (specifically, the lender must bring down monthly payments so that the borrower’s monthly mortgage payment is no greater than 38% of his or her income).
-Next, the program will match further reductions in monthly payments dollar-for-dollar, from 38% down to 31% debt-to-income ratio for the borrower.
-To ensure long-term affordability, the modified payments will be kept in place for five years and the loan rate will be capped for the life of the loan. After five years, the interest rate can be gradually stepped-up by 1% per year to the conforming loan survey rate in place at the time of the modification.
-To reach the target affordability level of 31%, interest payments will first be reduced down to as low as 2%. If at that rate the debt to income level is still over 31%, lenders then extend the term or amortization period up to 40 years, and finally forbear principal at no interest, until the payment is reduced to the 31% target.
-Treasury will share the costs of reducing the payment from 38% DTI to 31% DTI dollar for dollar.
-Note: Lenders can also bring down monthly payments to these affordability targets through reducing the amount of mortgage principal. The program will provide a partial share of the costs of this principal reduction, up to the amount the lender would have received for an interest rate reduction as long as the lender reaches the target rate of affordability at 31% debt-to-income.
ii.“Pay for Success” Incentives to Servicers:
-Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. Servicers will also receive “pay for success” fees –as long as the borrower is successful at staying in the program – of $1,000 each year for three years, subject to a de minimis threshold.
-Servicers will get similar incentives if they modify FHA, VA, or Agriculture Department loans, or refinance loans according to the Hope for Homeowners or similar FHA programs.
iii. Responsible Modification Incentives:
-Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include an incentive payment of $1,500 to mortgage holders and $500 for servicers for modifications made while a borrower at risk of imminent default is still current on their payments.
-The servicer portion of this incentive will also be available for modifications of FHA, VA, or Agriculture Department loans, or refinance loans under the Hope for Homeowners or similar FHA programs.
iv. Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time under the modified loan, the initiative will provide a monthly pay for performance success payment that goes straight towards reducing the principal balance on the mortgage loan.
-As long as the borrower stays current on his or her payments, he or she can get up to $1,000 each year for five years, subject to a de minimis threshold.
-As with the servicer incentives, these borrower incentives are also available for modifications of FHA, VA, or Agriculture Department loans, or refinance loans under the Hope for Homeowners or similar FHA programs.
v. Home Price Decline Payments: To encourage the modification of more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative payment that provides compensation that can partially offset losses from failed modification when home prices decline, but is structured as a simple cash payment on every eligible loan. The Treasury Department will make payments totaling up to $10 billion to discourage lenders, servicers and investors from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. This initiative provides servicers with the security to undertake more mortgage modifications by assuring that if home price declines continue to occur or worsen, investor losses are partially offset. Holders of mortgages modified under the program would be provided with an additional payment on each modified loan, linked to declines in the home price index.
vi. Second Liens: While eligible loan modifications will not require any participation by second lien holders, the program will include additional incentives to extinguish second liens on loans modified under the program, in order to reduce the overall indebtedness of the borrower and improve loan performance. Servicers will be eligible to receive compensation when they contact second lien holders and extinguish valid junior liens (according to a schedule to be specified by the Treasury Department, depending in part on combined loan to value). Servicers will be reimbursed for the release according to the specified schedule, and will also receive an extra $250 for obtaining a release of a valid second lien.
How It Will Be Effective
Protecting Taxpayers and Communities: To protect taxpayers, the Home Affordable Modification programwill focus on sound modifications. No payments will be made unless the modification lasts for at least three months, and all the payments are designed around the principal of “pay for success.” Borrowers, servicers and lenders/investors all have aligned incentives under the program to get successful modifications at an affordable and sustainable level.
Counseling and Outreach to Maximize Participation: Under the plan, the Department of Housing and Urban Development will also make available funding for non-profit counseling agencies to improve outreach and communications, especially to disadvantaged communities and those hardest-hit by foreclosures and vacancies. Borrowers with high debt-to-income levels must agree to use counseling services.
Creating Proper Oversight and Tracking Data to Ensure Program Success: Fannie Mae and Freddie Mac will be responsible – subject to Treasury’s oversight and the Federal Housing Finance Agency’s conservatorship – for monitoring compliance by servicers with the program. Every servicer participating in the program will be required to report standardized loan-level data on modifications, borrower and property characteristics, and outcomes. The data will be pooled so the government and private sector can measure success and make changes where needed. Treasury will meet quarterly with the FDIC, the Federal Reserve, the Department of Housing and Urban Development and the Federal Housing Finance Agency to ensure that the program is on track to meeting its goals.
Limiting the Impact of Foreclosure When Modification Doesn’t Work: Servicers will receive incentives to take alternatives to foreclosures, like short sales or taking of deeds in lieu of foreclosure. For those borrowers unable to maintain homeownership, even under the affordable terms offered, the plan will provide incentives to encourage families and servicers to avoid the costly foreclosure process and minimize the damage that foreclosure imposes on financial institutions, borrowers and communities alike. Servicers will be eligible for a payment of $500 and can make reimbursable payments up to $1000 to extinguish other liens, and borrowers are eligible for a payment of $1500 in relocation expenses in order to effectuate short sales and deeds-in-lieu of foreclosure. Such methods reduce vacancy, neighborhood decline, and overall costs for financial institutions, borrowers, and affected communities alike.
Treasury will also work with the GSEs to provide data on foreclosed properties to streamline the process of selling or redeveloping them, thereby ensuring that they do not remain vacant and unsold.
B.Clear and Consistent Guidelines for Loan Modifications: A lack of common standards has limited loan modifications, even when they are likely to both reduce the chance of foreclosure and raise the value of the securities owned by investors. Mortgage servicers – who should have an interest in instituting common-sense loan modifications – often refrain from doing so because they fear lawsuits. Clear and consistent guidelines for modifications are a key component of foreclosure prevention.
Clear and Consistent Guidelines for Loan Modifications: Working with the FDIC, other federal banking and credit union regulators, the FHA and the Federal Housing Finance Agency, the Administration today announced guidelines for sustainable mortgage modifications that may be used by all federal agencies and the private sector – bringing order and consistency to foreclosure mitigation. The guidelines include detailed protocols for loss mitigation and will serve as standard industry practice.
Applied Across Government and the Private Sector: Treasury today issued Guidelines for loan modifications that should serve as standard industry practice across the mortgage industry by working closely with the FDIC and other banking agencies and building on the FDIC’s pioneering role in developing a systematic loan modification process last year. The Guidelines – to be posted online – will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidelines. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, The Department of Veterans’ Affairs and the Department of Agriculture also have agreed to seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by these agencies. In addition, it is expected that the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve, the Federal Deposit Insurance Corporation and the National Credit Union Administration where possible and appropriate will encourage the institutions that they supervise to participate in the loan modification program and use the Treasury Guidelines.
Mortgage Insurer Participation. The major mortgage insurance firms have agreed to develop a mechanism by which they will make partial claims on modified loans where appropriate in order help prevent avoidable foreclosures.
C.Requiring All Financial Stability Plan Recipients to Use Guidelines for Loan Modifications: The Treasury Department will require all Financial Stability Plan recipients going forward to participate in foreclosure mitigation plans consistent with Treasury’s loan modification guidelines.
D.Allowing Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options: The Obama administration will seek carefully crafted changes to bankruptcy provisions which will help to facilitate the goals of the Making Home Affordable program
•How Judicial Modification Works: Appropriately tailored bankruptcy legislation provides a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that they are able to pay. After borrowers have tried unsuccessfully to obtain affordable loan modifications from their lenders or servicers, in the appropriate circumstances, a bankruptcy judge should be able to reduce the outstanding principal balance of a primary residence home mortgage loan to current fair market value—just as is done with vacation homes or investment properties--when a person has no other options.
•Bolster FHA and VA Authority to Protect Issuers and Ensure Loan Modifications Occur: Legislation will provide the FHA and VA with the authority they need to provide partial claims in the event of bankruptcy or voluntary modification so that issuers guaranteed by the FHA and VA are not disadvantaged.
E. Strengthening FHA Programs and Providing Support for Local Communities
•Ease Restrictions in FHA Programs and Improve Hope for Homeowners
An improved Hope for Homeowners program can offer an important avenue for struggling borrowers to obtain a sustainable mortgage. In order to ensure that many more borrowers are able to participate in Hope for Homeowners, we will work to improve the program and actively pursue legislation so that the FHA may reduce fees paid by borrowers, increase flexibility for lenders to refinance troubled loans, permit borrowers with higher debt loads to qualify, and address additional challenges that could limit uptake under the program. We will also ensure servicers consider borrowers for refinancing into the improved Hope for Homeowners program whenever feasible, and make similar incentives available to servicers for Hope for Homeowners refinance loans in order to encourage servicers to use this program.
•Strengthening Communities Hardest Hit by the Financial and Housing Crises: As part of the recovery plan signed by the President, the Department of Housing and Urban Development will award $2 billion in competitive Neighborhood Stabilization Program grants for innovative programs that reduce foreclosure. Additionally, the recovery plan includes an additional $1.5 billion to provide renter assistance, reducing homelessness and avoiding entry into shelters
3. Support Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac:
•Ensuring Strength and Security of the Mortgage Market: Using funds already authorized in 2008 by Congress for this purpose, the Treasury Department increased its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.
oProvide Forward-Looking Confidence: The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
oTreasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each.
•Promoting Stability and Liquidity: In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to promote stability and liquidity in the marketplace.
•Increasing the Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs’ retained mortgage portfolios allowed under the agreements – by $50 billion to $900 billion – along with corresponding increases in the allowable debt outstanding.
•Support State Housing Finance Agencies: The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers.
•No EESA or Financial Stability Plan Money: The $200 billion increase in Treasury's GSE stock purchase funding commitments are being made under the Housing and Economic Recovery Act and do not use any money from the Financial Stability Plan or Emergency Economic Stabilization Act/TARP.
Click HERE and HERE for additional links/information.
Washington
March 4, 2009
Making Home Affordable
Updated Detailed Program Description
The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country. Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance to lower mortgage rates. Meanwhile, millions of workers have lost their jobs or had their hours cut, and are now struggling to stay current on their mortgage payments.
As a result, as many as 6 million families are expected to face foreclosure in the next several years, with millions more struggling to stay current on their payments.
The present crisis is real, but temporary. As home prices fall, demand for housing will increase, and conditions will ultimately find a new balance. Yet in the absence of decisive action, we risk an intensifying spiral in which lenders foreclose, pushing area home prices still lower, reducing the value of household savings, and making it harder for all families to refinance. In some studies, foreclosure on a home has been found to reduce the prices of nearby homes by as much as 9%.
The Obama Administration’s Making Home Affordable program will offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to make their mortgage payments, while attempting to prevent the destructive impact of the housing crisis on families and communities. It will not provide money to speculators, and it will target support to the working homeowners who have made every possible effort to stay current on their mortgage payments. Just as the American Recovery and Reinvestment Act works to save or create several million new jobs and the Financial Stability Plan works to get credit flowing, the Making Home Affordable program will support a recovery in the housing market and ensure that these workers can continue paying off their mortgages.
By supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac, providing up to 4 to 5 million homeowners with new access to refinancing and creating a comprehensive stability initiative to offer reduced monthly payments for up to 3 to 4 million at-risk homeowners, this plan – which draws off the best ideas developed within the Administration, as well as from Congressional housing leaders and Federal Deposit Insurance Corporation Chair Sheila Bair – brings together the government, lenders, loan servicers, investors and borrowers to share responsibility towards ensuring working Americans can afford to stay in their homes.
1. A Home Affordable Refinance Program to Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices:
•Provide the Opportunity for Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80% of the value of their homes have a difficult time securing refinancing. (For example, if a borrower’s home was worth $200,000, he or she would have limited refinancing options if he or she owed more than $160,000.) Yet millions of responsible homeowners who put money down and made their mortgage payments on time have – through no fault of their own – seen the value of their homes drop low enough to make them unable to take advantage of these lower rates. As a result, the Obama Administration’s program will provide the opportunity for up to 4 to 5 million responsible homeowners who took out loans owned or guaranteed by Freddie Mac and Fannie Mae (the GSEs) to refinance through the two institutions over time.
•Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year. For example, consider a family that took a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has $200,000 remaining on their mortgage, but the value of that home has fallen 15% to $221,000 – making them ineligible for today’s low interest rates that generally require the borrower to have 20% home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over $2,300.
2. A $75 Billion Home Affordable Modification Program to Prevent Foreclosures and Help Responsible Families Stay in Their Homes: The Treasury Department, working with the GSEs, FHA, the FDIC and other federal agencies, will undertake a comprehensive multi-part strategy to prevent millions of foreclosures and help families stay in their homes. This strategy includes the following five features:
•A Home Affordable Modification Program to Reach Up to 3 to 4 Million At-Risk Homeowners
•Clear and Consistent Guidelines for Loan Modifications
•Requiring That Financial Stability Plan Recipients Use Treasury Guidelines for Loan Modifications
•Allowing Judicial Modifications of Home Mortgages During Bankruptcy When A Borrower Has No Other Options
•Requiring Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal Reserve and HUD to Monitor Performance
•Strengthening FHA Programs and Providing Support for Local Communities
A. A Home Affordable Modification to Reach Up to 3 to 4 Million At-Risk Homeowners: This program is intended to reach millions of responsible homeowners who are struggling to afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. In the current economy, in which 3.6 million jobs have been lost over the past 14 months, millions of hard-working families have seen their mortgage payments rise to 40 or even 50% of their monthly income – particularly if they received subprime and exotic loans with exploding terms and hidden fees. The Home Affordable Modification program operates through a shared partnership to help those who commit to make reasonable monthly mortgage payments to stay in their homes, providing families with security and neighborhoods with stability. This plan will also help to stabilize home prices for homeowners in neighborhoods hardest hit by foreclosures. Based on estimates concerning the relationship between foreclosures and home prices, with the average house in the U.S. valued around $200,000, the average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be absent the Home Affordable Modification program.
Who the Program Reaches:
Focusing on Homeowners At Risk: Homeowners at risk, such as those suffering serious hardships, decreases in income, increases in expenses, payment “shock,” high combined mortgage debt compared to income, who are “underwater” (with a combined mortgage balance higher than the current market value of the house), or who show other indications of being at risk of default may be eligible for a loan modification. Eligibility for the program will sunset at the end of three years.
Reaching Homeowners Before They Have Missed Payments: Delinquency will not be a requirement for eligibility. Rather, because loan modifications are more likely to succeed if they are made before a borrower misses a payment, modifications for households at risk of imminent default despite being current on their mortgage payments are eligible to participate, in addition to those who have fallen behind.
Common Sense Restrictions: Only owner-occupied homes qualify; no home mortgages larger than the FHFA conforming limit of $729,750 will be eligible. This program will focus solely on supporting responsible homeowners willing to make payments to stay in their home – it will not aid speculators or house flippers.
Special Provisions for Families with High Total Debt Levels: Borrowers with high total debt qualify, but only if they agree to enter HUD-certified consumer debt counseling. Specifically, homeowners with total “back end” debt (which includes not only housing debt, but other debt including car loans and credit card debt) equal to 55% or more of their income will be required to agree to enter a HUD-certified counseling program as a condition for a modification.
How the Program Works:
•The Home Affordable Modification program has a simple goal: reduce the amount homeowners owe per month to sustainable levels to stabilize communities. This U.S. DEPARTMENT OF THE TREASURY program will bring together lenders, investors, servicers, borrowers, and the government, so that all stakeholders share in the cost of ensuring that responsible homeowners can afford their monthly mortgage payments – helping to reach up to 3 to 4 million at-risk borrowers in all segments of the mortgage market, reducing foreclosures, and helping to avoid further downward pressures on overall home prices.
The program has several key components:
i.Shared Effort to Reduce Monthly Payments: Treasury will partner with financial institutions and investors to reduce homeowners’ monthly mortgage payments.
-The lender will have to first reduce monthly payments on mortgages to a specified affordability level (specifically, the lender must bring down monthly payments so that the borrower’s monthly mortgage payment is no greater than 38% of his or her income).
-Next, the program will match further reductions in monthly payments dollar-for-dollar, from 38% down to 31% debt-to-income ratio for the borrower.
-To ensure long-term affordability, the modified payments will be kept in place for five years and the loan rate will be capped for the life of the loan. After five years, the interest rate can be gradually stepped-up by 1% per year to the conforming loan survey rate in place at the time of the modification.
-To reach the target affordability level of 31%, interest payments will first be reduced down to as low as 2%. If at that rate the debt to income level is still over 31%, lenders then extend the term or amortization period up to 40 years, and finally forbear principal at no interest, until the payment is reduced to the 31% target.
-Treasury will share the costs of reducing the payment from 38% DTI to 31% DTI dollar for dollar.
-Note: Lenders can also bring down monthly payments to these affordability targets through reducing the amount of mortgage principal. The program will provide a partial share of the costs of this principal reduction, up to the amount the lender would have received for an interest rate reduction as long as the lender reaches the target rate of affordability at 31% debt-to-income.
ii.“Pay for Success” Incentives to Servicers:
-Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. Servicers will also receive “pay for success” fees –as long as the borrower is successful at staying in the program – of $1,000 each year for three years, subject to a de minimis threshold.
-Servicers will get similar incentives if they modify FHA, VA, or Agriculture Department loans, or refinance loans according to the Hope for Homeowners or similar FHA programs.
iii. Responsible Modification Incentives:
-Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include an incentive payment of $1,500 to mortgage holders and $500 for servicers for modifications made while a borrower at risk of imminent default is still current on their payments.
-The servicer portion of this incentive will also be available for modifications of FHA, VA, or Agriculture Department loans, or refinance loans under the Hope for Homeowners or similar FHA programs.
iv. Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time under the modified loan, the initiative will provide a monthly pay for performance success payment that goes straight towards reducing the principal balance on the mortgage loan.
-As long as the borrower stays current on his or her payments, he or she can get up to $1,000 each year for five years, subject to a de minimis threshold.
-As with the servicer incentives, these borrower incentives are also available for modifications of FHA, VA, or Agriculture Department loans, or refinance loans under the Hope for Homeowners or similar FHA programs.
v. Home Price Decline Payments: To encourage the modification of more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative payment that provides compensation that can partially offset losses from failed modification when home prices decline, but is structured as a simple cash payment on every eligible loan. The Treasury Department will make payments totaling up to $10 billion to discourage lenders, servicers and investors from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. This initiative provides servicers with the security to undertake more mortgage modifications by assuring that if home price declines continue to occur or worsen, investor losses are partially offset. Holders of mortgages modified under the program would be provided with an additional payment on each modified loan, linked to declines in the home price index.
vi. Second Liens: While eligible loan modifications will not require any participation by second lien holders, the program will include additional incentives to extinguish second liens on loans modified under the program, in order to reduce the overall indebtedness of the borrower and improve loan performance. Servicers will be eligible to receive compensation when they contact second lien holders and extinguish valid junior liens (according to a schedule to be specified by the Treasury Department, depending in part on combined loan to value). Servicers will be reimbursed for the release according to the specified schedule, and will also receive an extra $250 for obtaining a release of a valid second lien.
How It Will Be Effective
Protecting Taxpayers and Communities: To protect taxpayers, the Home Affordable Modification programwill focus on sound modifications. No payments will be made unless the modification lasts for at least three months, and all the payments are designed around the principal of “pay for success.” Borrowers, servicers and lenders/investors all have aligned incentives under the program to get successful modifications at an affordable and sustainable level.
Counseling and Outreach to Maximize Participation: Under the plan, the Department of Housing and Urban Development will also make available funding for non-profit counseling agencies to improve outreach and communications, especially to disadvantaged communities and those hardest-hit by foreclosures and vacancies. Borrowers with high debt-to-income levels must agree to use counseling services.
Creating Proper Oversight and Tracking Data to Ensure Program Success: Fannie Mae and Freddie Mac will be responsible – subject to Treasury’s oversight and the Federal Housing Finance Agency’s conservatorship – for monitoring compliance by servicers with the program. Every servicer participating in the program will be required to report standardized loan-level data on modifications, borrower and property characteristics, and outcomes. The data will be pooled so the government and private sector can measure success and make changes where needed. Treasury will meet quarterly with the FDIC, the Federal Reserve, the Department of Housing and Urban Development and the Federal Housing Finance Agency to ensure that the program is on track to meeting its goals.
Limiting the Impact of Foreclosure When Modification Doesn’t Work: Servicers will receive incentives to take alternatives to foreclosures, like short sales or taking of deeds in lieu of foreclosure. For those borrowers unable to maintain homeownership, even under the affordable terms offered, the plan will provide incentives to encourage families and servicers to avoid the costly foreclosure process and minimize the damage that foreclosure imposes on financial institutions, borrowers and communities alike. Servicers will be eligible for a payment of $500 and can make reimbursable payments up to $1000 to extinguish other liens, and borrowers are eligible for a payment of $1500 in relocation expenses in order to effectuate short sales and deeds-in-lieu of foreclosure. Such methods reduce vacancy, neighborhood decline, and overall costs for financial institutions, borrowers, and affected communities alike.
Treasury will also work with the GSEs to provide data on foreclosed properties to streamline the process of selling or redeveloping them, thereby ensuring that they do not remain vacant and unsold.
B.Clear and Consistent Guidelines for Loan Modifications: A lack of common standards has limited loan modifications, even when they are likely to both reduce the chance of foreclosure and raise the value of the securities owned by investors. Mortgage servicers – who should have an interest in instituting common-sense loan modifications – often refrain from doing so because they fear lawsuits. Clear and consistent guidelines for modifications are a key component of foreclosure prevention.
Clear and Consistent Guidelines for Loan Modifications: Working with the FDIC, other federal banking and credit union regulators, the FHA and the Federal Housing Finance Agency, the Administration today announced guidelines for sustainable mortgage modifications that may be used by all federal agencies and the private sector – bringing order and consistency to foreclosure mitigation. The guidelines include detailed protocols for loss mitigation and will serve as standard industry practice.
Applied Across Government and the Private Sector: Treasury today issued Guidelines for loan modifications that should serve as standard industry practice across the mortgage industry by working closely with the FDIC and other banking agencies and building on the FDIC’s pioneering role in developing a systematic loan modification process last year. The Guidelines – to be posted online – will be used for the Administration’s new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidelines. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, The Department of Veterans’ Affairs and the Department of Agriculture also have agreed to seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by these agencies. In addition, it is expected that the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve, the Federal Deposit Insurance Corporation and the National Credit Union Administration where possible and appropriate will encourage the institutions that they supervise to participate in the loan modification program and use the Treasury Guidelines.
Mortgage Insurer Participation. The major mortgage insurance firms have agreed to develop a mechanism by which they will make partial claims on modified loans where appropriate in order help prevent avoidable foreclosures.
C.Requiring All Financial Stability Plan Recipients to Use Guidelines for Loan Modifications: The Treasury Department will require all Financial Stability Plan recipients going forward to participate in foreclosure mitigation plans consistent with Treasury’s loan modification guidelines.
D.Allowing Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options: The Obama administration will seek carefully crafted changes to bankruptcy provisions which will help to facilitate the goals of the Making Home Affordable program
•How Judicial Modification Works: Appropriately tailored bankruptcy legislation provides a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that they are able to pay. After borrowers have tried unsuccessfully to obtain affordable loan modifications from their lenders or servicers, in the appropriate circumstances, a bankruptcy judge should be able to reduce the outstanding principal balance of a primary residence home mortgage loan to current fair market value—just as is done with vacation homes or investment properties--when a person has no other options.
•Bolster FHA and VA Authority to Protect Issuers and Ensure Loan Modifications Occur: Legislation will provide the FHA and VA with the authority they need to provide partial claims in the event of bankruptcy or voluntary modification so that issuers guaranteed by the FHA and VA are not disadvantaged.
E. Strengthening FHA Programs and Providing Support for Local Communities
•Ease Restrictions in FHA Programs and Improve Hope for Homeowners
An improved Hope for Homeowners program can offer an important avenue for struggling borrowers to obtain a sustainable mortgage. In order to ensure that many more borrowers are able to participate in Hope for Homeowners, we will work to improve the program and actively pursue legislation so that the FHA may reduce fees paid by borrowers, increase flexibility for lenders to refinance troubled loans, permit borrowers with higher debt loads to qualify, and address additional challenges that could limit uptake under the program. We will also ensure servicers consider borrowers for refinancing into the improved Hope for Homeowners program whenever feasible, and make similar incentives available to servicers for Hope for Homeowners refinance loans in order to encourage servicers to use this program.
•Strengthening Communities Hardest Hit by the Financial and Housing Crises: As part of the recovery plan signed by the President, the Department of Housing and Urban Development will award $2 billion in competitive Neighborhood Stabilization Program grants for innovative programs that reduce foreclosure. Additionally, the recovery plan includes an additional $1.5 billion to provide renter assistance, reducing homelessness and avoiding entry into shelters
3. Support Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac:
•Ensuring Strength and Security of the Mortgage Market: Using funds already authorized in 2008 by Congress for this purpose, the Treasury Department increased its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.
oProvide Forward-Looking Confidence: The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.
oTreasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each.
•Promoting Stability and Liquidity: In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to promote stability and liquidity in the marketplace.
•Increasing the Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs’ retained mortgage portfolios allowed under the agreements – by $50 billion to $900 billion – along with corresponding increases in the allowable debt outstanding.
•Support State Housing Finance Agencies: The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers.
•No EESA or Financial Stability Plan Money: The $200 billion increase in Treasury's GSE stock purchase funding commitments are being made under the Housing and Economic Recovery Act and do not use any money from the Financial Stability Plan or Emergency Economic Stabilization Act/TARP.
Click HERE and HERE for additional links/information.
Monday, March 2, 2009
UPDATE: Week of March 2, 2009
GENERAL INFORMATION
Philadelphia tax assessment plan delayed again
The long-delayed overhaul of Philadelphia 's property-tax assessment system will likely be put off for another year. The move postpones a politically difficult transition, which is expected to eventually lead to significantly higher property-tax bills for many Philadelphians and lower bills for others. The delay will also preserve for at least another year what critics say is an inequitable and inaccurate system. Assessed property values in Philadelphia tend to be unduly high in poor neighborhoods and are frequently unrealistically low for residents of expensive neighborhoods. Delaying the switch to the new assessment method - known as the actual value initiative - has become something of an annual rite in City Hall, which has punted on the issue since 2006. The initiative would reassess all properties in the city at actual value and do away with the confusing fractional system, which purportedly assesses properties at 32 percent, rather than 100 percent, of market value. Click here to read the full article.
Source: Philadelphia Inquirer; 2/27/09
Journal Register Company files reorganization plan
Journal Register Company has announced that the Company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York to implement a pre-negotiated plan of reorganization with its secured lenders designed to substantially reduce its debt. JRC intends to continue to operate as usual, and does not anticipate any business interruption during the restructuring.
Source: The Phoenix ; 2/27/09
Mortgage Deduction at Risk in U.S. Budget
A new proposal in the Obama administration's federal budget outline would limit the mortgage interest deduction (MID) amount for thousands of families, which would impact the housing market for everyone.
The NATIONAL ASSOCIATION OF REALTORS®, which has supported the Obama administration’s housing and stimulus plans, is opposed to this proposal. NAR President Charles McMillan has sent a letter to President Obama, saying that "there is never a good time to propose something that undermines the basic foundation of homeownership." For more information read: REALTORS® Oppose MID Reduction.
BUCKS COUNTY
West Rockhill and Bucks County team up to preserve property
The Berger property on Catch Basin Road is part of the watershed that West Rockhill Township and Bucks County are teaming up to preserve. The 54-acre tract is heavily forested and part of the watershed for Sellersville public water system. The township has been working on the deal for the past few years and received assistance from the Natural Lands Trust, in addition to a .25 percent earned income tax dedicated for open space purchase. Settlement on a $6,000 per acre deal to buy the development rights and preserve the land is scheduled for March. Bucks County and West Rockhill plan to split the cost evenly.
Source: News Herald; 2/25/09
Doylestown Township windmill ordinance still unresolved
Township supervisors continue to work toward an ordinance concerning residential windmill use, with the primary unresolved issue being the size of the lots on which windmills would be allowed. An initial proposal recommended that lots be restricted to 2 acres, which drew criticism from the public and township supervisors for its restrictive nature. The board’s most recent debate resulted in a vote to send the latest draft to the Bucks County Planning Commission for its input. Currently, the draft states that windmills have to be at least 100 feet away from utility lines, are limited in height to 65 feet and the distance between the ground and the end of any blade must be no less than 15 feet. After the Planning Commission reviews the draft, it will be up for discussion at the township’s March meeting.
Source: The Intelligencer; 2/18/09
Tinicum Elementary School to get $8.8 million makeover
The Palisades School Board unanimously approved $8.8 million in contracts for alterations and additions to the Tinicum Elementary School , which dates back to 1958. The construction and renovations are expected to take 18 months, with work beginning in May 2009. The school, located on East Dark Hollow Road , has an enrollment of close to 300 students.
Source: The Intelligencer; 2/19/09
Power line fight proving costly for Springfield
The fight to keep PPL power lines out of an environmentally sensitive region of Springfield may prove to be a more costly, long battle for the township. The Public Utility Commission will likely issue a decision in six to eight weeks on a battle that has cost the township $168,000 in the past year. Either side can appeal the PUC’s ruling, meaning additional legal costs if the case goes to the Commonwealth Court .
Source: The Intelligencer; 2/26/09
CHESTER COUNTY
West Grove heading for the future and town revitalization
Municipal officials are pursuing a number of projects as they upgrade and revitalize the center of town. For the past five years of so, the borough has been applying for and obtaining grants with an eye toward improving the appearance and safety in the middle of town. So far the infrastructure is stronger, the lighting is more attractive and much of the streetscape has received new curbs and sidewalks.
• Beginning with revitalization and comprehensive plans in 1993 as guides, the borough first requested and received $2.4 million in county money to upgrade water lines, curbs, sidewalks, period streetlights, storm water management and repaving on Rosehill and Edgehill avenues that form the center square in town. That project was finished in 2006.
• In 2007 the borough was approved for a $600,000 county grant to improve water lines along the railroad tracks on Railroad Avenue as well as replace curbs and sidewalks. At the same time, similar period lights were installed to those on Rose Hill Avenue . Nesbitt said this effort extended the business district. A contract crew is currently working on that uptown.
• Then, thanks to another $1 million grant from PennDOT and Delaware Valley Regional Planning Commission, the borough is working on putting out bids for installing new pipes along Evergreen Street from Oakland to Maple streets.
• Looking toward the future, West Grove has applied for a county grant to build a safe crosswalk from Railroad Avenue to Rose Hill Avenue that is lighted, smooth and handicapped accessible and to upgrade the traffic signal. It would improve the situation that now exists whereby people just step across the railroad tracks at no particular location.
Source: Avon Grove Sun; 2/24/09
Summit eyes the future of farming in Chester County
Chester County 2020, a farm advocacy group, held its seventh annual "Keep Farming First" summit Saturday at Octorara High School . The summit focused on how the role of local farms should evolve as the county's economy, environment and social patterns change. Keynote speaker Dennis Buffington, a Penn State professor, said that local farms have to find creative ways to become part of the new economy in order to remain profitable. If they don't, he said, it's highly unlikely the next generation will want to take them over.
The summit also featured breakout sessions and panel discussions. The last panel of the day focused on "unintended impacts of local regulations," and addressed the municipal conflicts that arise when residential and commercial uses crop up next to agricultural uses.
Source: Daily Local; 2/26/09
City of Coatesville to tap its trust fund
Coatesville City Council on Monday approved a $200,000 withdrawal from the city's trust fund, a two-week extension of the city's state of emergency and the filing of a grant application that will bring $500,000 in arson-related aid from the state. The $200,000 withdrawal is significantly lower than the sum requested by City Manager Harry Walker and will be used to help alleviate a cashflow problem. City officials say the withdrawal is necessary for several reasons, one being the city's state of emergency and the overtime costs that go with it. Without the withdrawal the city cannot make its payroll and will be unable to pay vendors. The ordinance also references current and past-due obligations. The city has $600,000 in debt carried over from last year.
Source: Daily Local; 2/24/09
DELAWARE COUNTY
BPG tries a new approach for town center in Newtown
The town center debate has been revitalized by Berwind Properties Group’s latest request to develop the Ellis Preserve as a planned residential development. Township planners recently wrestled with the town center approval — a beleaguered process that is approaching five years, with no end in sight. After an hour of discourse, planners and BPG agreed to resume the planned residential development discussion at the commission’s March 12 meeting. The planning commission had held a series of special sessions in June to craft a zoning overlay ordinance that would change the zoning of the Ellis tract and allow a mixed-use town center. Township supervisors ultimately voted 3-2 in October to accept a 60-page settlement agreement to achieve the same goal. The developer now wants the draft ordinance to be called “The Township of Newtown Planned Residential Development Ordinance of 2008.” In pursuing planned residential development approval, the builder has matched up the mixed-use characteristics of a residential development to the town center parameters negotiated in the settlement agreement. The proposed planned residential development is a near duplicate of the approved town center. A few minor changes include the proposed zoning overlay district now being called a master plan concept planned residential development, and the preliminary plan is now a tentative plan.
Source: Daily Times; 2/22/09
Franklin Mint development scaled back in Middletown
A conceptual plan for development of the former Franklin Mint property has been scaled back, in response to feedback from residents and the business community during a weeklong charrette —- or community discussion process — that took place in the township last August. The sprawling property on West Baltimore Pike is zoned for 1.5 million square feet of office/industrial space. The owners have the right to develop the site this way, called the “by right” plan. However, a zoning change would allow a mix of residential, commercial and office use. A Franklin Town Center proposal in 2006, which calls for 1,300 residential units, 400,000 square feet of office space, 1.4 million square feet of commercial space and a 300-room hotel, met strong opposition from residents. But a revised concept now calls for 280 housing units, 230,000 square feet of office space, 798,000 square feet of commercial space and a 225-room hotel. The public can learn more about the development at www.planningfranklin.com.
Source: Daily Times; 2/22/09
Township Manager suspended in Radnor
Radnor Township Manager, David Bashore, is under suspension for allegedly paying himself unauthorized salary bonuses totaling $128,500 over the last eight years. The Radnor Township commissioners suspended Bashore with pay on Thursday, and Board of Commissioners president Thomas Masterson has indicated he will seek Bashore’s resignation. Bashore says the township administrative code granted him the authority to give merit-based bonuses to employees and his employment agreement allowed him to receive similar awards.
Source: Wayne Suburban; 2/26/09
Chichester School District budget calls for tax hike
Based on the proposed $61.3 million preliminary budget, property owners in the Chichester School District will pay an average of $140 more in school property taxes for the 2009-2010 school year. The new millage rate, 35.093 mills reflects a will be in a 5.4% increase over last year. Using those numbers, the owner of a home at the district wide median assessed value of $100,435 would pay a total of $3,525 in taxes for the year.
Source: Main Line Time; 2/12/09
No increase in sheriff’s sale in Delaware County
Despite the downturn in the economy, the number of sheriff’s sales in Delaware County has remained stable over the past several years. County Sheriff Joeseph McGinn’s office is working with members of the Delaware County Bar Association and attorneys representing a number of lenders to come up with a way to help homeowners facing foreclosure.
Source: Daily Times; 2/22/09
MONTGOMERY COUNTY
Driving on 422 could cost motorists in Montgomery County
Montgomery County transportation planners are working on a plan to determine if there is community support for charging a toll to drive on Route 422 between Valley Forge and Pottstown . The proposal is the use the toll revenue to subsidize commuter rail service between Norristown and Reading as well as pay for improvements on the 25-mile expressway. Currently, there are no regionally operated toll roads in the state, but if approved, the 422 toll would be modeled after the Pennsylvania Turnpike with motorists paying tolls based on the miles driven on the expressway. The system would use all electronic tolls, such as EZ Pass. The study will be performed over the next 18 months to analyze tolling options, capital costs and to determine how much revenue would be needed.
Source: The Intelligencer; 2/21/09
Abington School budget holds taxes for 2009-2010
For the first time in 20 years, the Abington School Board passed a preliminary budget without a property tax increase. Instead, the board will use money from the fund balance to account for more than $3.2 million in increased spending for 2009-2010. The millage rate will hold at 27.29, which translates to a real estate tax of $3,851 for the average home assessed at $141,130.
Source: The Globe; 2/26/09
Lower Moreland Commissioners decide on how to use open space grant
A $600,000 grant from the county was at stake if Lower Moreland Commissioners did not decide how to use the money by March 31. Commissioners decided to use the money for a corridor project that calls for construction of sidewalks from Pennypack Creek to the Huntingdon Valley Post Office at Liberman Drive , from the Bethayres Train Station to the corner of Philmont Avenue and Huntingdon Pike as well as a portion of Red Lion Road by Lower Moreland High School . The project aims to increase food traffic in the municipality and connect pre-existing trails. By protecting the 27 acres as open space, the township will not have to worry about increased flooding issues to do development on the land.
Source: The Globe; 2/20/09
Philadelphia tax assessment plan delayed again
The long-delayed overhaul of Philadelphia 's property-tax assessment system will likely be put off for another year. The move postpones a politically difficult transition, which is expected to eventually lead to significantly higher property-tax bills for many Philadelphians and lower bills for others. The delay will also preserve for at least another year what critics say is an inequitable and inaccurate system. Assessed property values in Philadelphia tend to be unduly high in poor neighborhoods and are frequently unrealistically low for residents of expensive neighborhoods. Delaying the switch to the new assessment method - known as the actual value initiative - has become something of an annual rite in City Hall, which has punted on the issue since 2006. The initiative would reassess all properties in the city at actual value and do away with the confusing fractional system, which purportedly assesses properties at 32 percent, rather than 100 percent, of market value. Click here to read the full article.
Source: Philadelphia Inquirer; 2/27/09
Journal Register Company files reorganization plan
Journal Register Company has announced that the Company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York to implement a pre-negotiated plan of reorganization with its secured lenders designed to substantially reduce its debt. JRC intends to continue to operate as usual, and does not anticipate any business interruption during the restructuring.
Source: The Phoenix ; 2/27/09
Mortgage Deduction at Risk in U.S. Budget
A new proposal in the Obama administration's federal budget outline would limit the mortgage interest deduction (MID) amount for thousands of families, which would impact the housing market for everyone.
The NATIONAL ASSOCIATION OF REALTORS®, which has supported the Obama administration’s housing and stimulus plans, is opposed to this proposal. NAR President Charles McMillan has sent a letter to President Obama, saying that "there is never a good time to propose something that undermines the basic foundation of homeownership." For more information read: REALTORS® Oppose MID Reduction.
BUCKS COUNTY
West Rockhill and Bucks County team up to preserve property
The Berger property on Catch Basin Road is part of the watershed that West Rockhill Township and Bucks County are teaming up to preserve. The 54-acre tract is heavily forested and part of the watershed for Sellersville public water system. The township has been working on the deal for the past few years and received assistance from the Natural Lands Trust, in addition to a .25 percent earned income tax dedicated for open space purchase. Settlement on a $6,000 per acre deal to buy the development rights and preserve the land is scheduled for March. Bucks County and West Rockhill plan to split the cost evenly.
Source: News Herald; 2/25/09
Doylestown Township windmill ordinance still unresolved
Township supervisors continue to work toward an ordinance concerning residential windmill use, with the primary unresolved issue being the size of the lots on which windmills would be allowed. An initial proposal recommended that lots be restricted to 2 acres, which drew criticism from the public and township supervisors for its restrictive nature. The board’s most recent debate resulted in a vote to send the latest draft to the Bucks County Planning Commission for its input. Currently, the draft states that windmills have to be at least 100 feet away from utility lines, are limited in height to 65 feet and the distance between the ground and the end of any blade must be no less than 15 feet. After the Planning Commission reviews the draft, it will be up for discussion at the township’s March meeting.
Source: The Intelligencer; 2/18/09
Tinicum Elementary School to get $8.8 million makeover
The Palisades School Board unanimously approved $8.8 million in contracts for alterations and additions to the Tinicum Elementary School , which dates back to 1958. The construction and renovations are expected to take 18 months, with work beginning in May 2009. The school, located on East Dark Hollow Road , has an enrollment of close to 300 students.
Source: The Intelligencer; 2/19/09
Power line fight proving costly for Springfield
The fight to keep PPL power lines out of an environmentally sensitive region of Springfield may prove to be a more costly, long battle for the township. The Public Utility Commission will likely issue a decision in six to eight weeks on a battle that has cost the township $168,000 in the past year. Either side can appeal the PUC’s ruling, meaning additional legal costs if the case goes to the Commonwealth Court .
Source: The Intelligencer; 2/26/09
CHESTER COUNTY
West Grove heading for the future and town revitalization
Municipal officials are pursuing a number of projects as they upgrade and revitalize the center of town. For the past five years of so, the borough has been applying for and obtaining grants with an eye toward improving the appearance and safety in the middle of town. So far the infrastructure is stronger, the lighting is more attractive and much of the streetscape has received new curbs and sidewalks.
• Beginning with revitalization and comprehensive plans in 1993 as guides, the borough first requested and received $2.4 million in county money to upgrade water lines, curbs, sidewalks, period streetlights, storm water management and repaving on Rosehill and Edgehill avenues that form the center square in town. That project was finished in 2006.
• In 2007 the borough was approved for a $600,000 county grant to improve water lines along the railroad tracks on Railroad Avenue as well as replace curbs and sidewalks. At the same time, similar period lights were installed to those on Rose Hill Avenue . Nesbitt said this effort extended the business district. A contract crew is currently working on that uptown.
• Then, thanks to another $1 million grant from PennDOT and Delaware Valley Regional Planning Commission, the borough is working on putting out bids for installing new pipes along Evergreen Street from Oakland to Maple streets.
• Looking toward the future, West Grove has applied for a county grant to build a safe crosswalk from Railroad Avenue to Rose Hill Avenue that is lighted, smooth and handicapped accessible and to upgrade the traffic signal. It would improve the situation that now exists whereby people just step across the railroad tracks at no particular location.
Source: Avon Grove Sun; 2/24/09
Summit eyes the future of farming in Chester County
Chester County 2020, a farm advocacy group, held its seventh annual "Keep Farming First" summit Saturday at Octorara High School . The summit focused on how the role of local farms should evolve as the county's economy, environment and social patterns change. Keynote speaker Dennis Buffington, a Penn State professor, said that local farms have to find creative ways to become part of the new economy in order to remain profitable. If they don't, he said, it's highly unlikely the next generation will want to take them over.
The summit also featured breakout sessions and panel discussions. The last panel of the day focused on "unintended impacts of local regulations," and addressed the municipal conflicts that arise when residential and commercial uses crop up next to agricultural uses.
Source: Daily Local; 2/26/09
City of Coatesville to tap its trust fund
Coatesville City Council on Monday approved a $200,000 withdrawal from the city's trust fund, a two-week extension of the city's state of emergency and the filing of a grant application that will bring $500,000 in arson-related aid from the state. The $200,000 withdrawal is significantly lower than the sum requested by City Manager Harry Walker and will be used to help alleviate a cashflow problem. City officials say the withdrawal is necessary for several reasons, one being the city's state of emergency and the overtime costs that go with it. Without the withdrawal the city cannot make its payroll and will be unable to pay vendors. The ordinance also references current and past-due obligations. The city has $600,000 in debt carried over from last year.
Source: Daily Local; 2/24/09
DELAWARE COUNTY
BPG tries a new approach for town center in Newtown
The town center debate has been revitalized by Berwind Properties Group’s latest request to develop the Ellis Preserve as a planned residential development. Township planners recently wrestled with the town center approval — a beleaguered process that is approaching five years, with no end in sight. After an hour of discourse, planners and BPG agreed to resume the planned residential development discussion at the commission’s March 12 meeting. The planning commission had held a series of special sessions in June to craft a zoning overlay ordinance that would change the zoning of the Ellis tract and allow a mixed-use town center. Township supervisors ultimately voted 3-2 in October to accept a 60-page settlement agreement to achieve the same goal. The developer now wants the draft ordinance to be called “The Township of Newtown Planned Residential Development Ordinance of 2008.” In pursuing planned residential development approval, the builder has matched up the mixed-use characteristics of a residential development to the town center parameters negotiated in the settlement agreement. The proposed planned residential development is a near duplicate of the approved town center. A few minor changes include the proposed zoning overlay district now being called a master plan concept planned residential development, and the preliminary plan is now a tentative plan.
Source: Daily Times; 2/22/09
Franklin Mint development scaled back in Middletown
A conceptual plan for development of the former Franklin Mint property has been scaled back, in response to feedback from residents and the business community during a weeklong charrette —- or community discussion process — that took place in the township last August. The sprawling property on West Baltimore Pike is zoned for 1.5 million square feet of office/industrial space. The owners have the right to develop the site this way, called the “by right” plan. However, a zoning change would allow a mix of residential, commercial and office use. A Franklin Town Center proposal in 2006, which calls for 1,300 residential units, 400,000 square feet of office space, 1.4 million square feet of commercial space and a 300-room hotel, met strong opposition from residents. But a revised concept now calls for 280 housing units, 230,000 square feet of office space, 798,000 square feet of commercial space and a 225-room hotel. The public can learn more about the development at www.planningfranklin.com.
Source: Daily Times; 2/22/09
Township Manager suspended in Radnor
Radnor Township Manager, David Bashore, is under suspension for allegedly paying himself unauthorized salary bonuses totaling $128,500 over the last eight years. The Radnor Township commissioners suspended Bashore with pay on Thursday, and Board of Commissioners president Thomas Masterson has indicated he will seek Bashore’s resignation. Bashore says the township administrative code granted him the authority to give merit-based bonuses to employees and his employment agreement allowed him to receive similar awards.
Source: Wayne Suburban; 2/26/09
Chichester School District budget calls for tax hike
Based on the proposed $61.3 million preliminary budget, property owners in the Chichester School District will pay an average of $140 more in school property taxes for the 2009-2010 school year. The new millage rate, 35.093 mills reflects a will be in a 5.4% increase over last year. Using those numbers, the owner of a home at the district wide median assessed value of $100,435 would pay a total of $3,525 in taxes for the year.
Source: Main Line Time; 2/12/09
No increase in sheriff’s sale in Delaware County
Despite the downturn in the economy, the number of sheriff’s sales in Delaware County has remained stable over the past several years. County Sheriff Joeseph McGinn’s office is working with members of the Delaware County Bar Association and attorneys representing a number of lenders to come up with a way to help homeowners facing foreclosure.
Source: Daily Times; 2/22/09
MONTGOMERY COUNTY
Driving on 422 could cost motorists in Montgomery County
Montgomery County transportation planners are working on a plan to determine if there is community support for charging a toll to drive on Route 422 between Valley Forge and Pottstown . The proposal is the use the toll revenue to subsidize commuter rail service between Norristown and Reading as well as pay for improvements on the 25-mile expressway. Currently, there are no regionally operated toll roads in the state, but if approved, the 422 toll would be modeled after the Pennsylvania Turnpike with motorists paying tolls based on the miles driven on the expressway. The system would use all electronic tolls, such as EZ Pass. The study will be performed over the next 18 months to analyze tolling options, capital costs and to determine how much revenue would be needed.
Source: The Intelligencer; 2/21/09
Abington School budget holds taxes for 2009-2010
For the first time in 20 years, the Abington School Board passed a preliminary budget without a property tax increase. Instead, the board will use money from the fund balance to account for more than $3.2 million in increased spending for 2009-2010. The millage rate will hold at 27.29, which translates to a real estate tax of $3,851 for the average home assessed at $141,130.
Source: The Globe; 2/26/09
Lower Moreland Commissioners decide on how to use open space grant
A $600,000 grant from the county was at stake if Lower Moreland Commissioners did not decide how to use the money by March 31. Commissioners decided to use the money for a corridor project that calls for construction of sidewalks from Pennypack Creek to the Huntingdon Valley Post Office at Liberman Drive , from the Bethayres Train Station to the corner of Philmont Avenue and Huntingdon Pike as well as a portion of Red Lion Road by Lower Moreland High School . The project aims to increase food traffic in the municipality and connect pre-existing trails. By protecting the 27 acres as open space, the township will not have to worry about increased flooding issues to do development on the land.
Source: The Globe; 2/20/09
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