Realty Update: Week of April 13, 2009

GENERAL INFORMATION

FHA key to housing rebound

The Federal Housing Administration (FHA) is a primary source of mortgage financing for millions of America ’s families and plays a key role in helping bring stability to the housing market. This is the message that the National Association of Realtors® recently delivered to the Senate Appropriations Subcommittee. “Without FHA financing, families would be unable to purchase homes and communities would suffer from continued foreclosures and blight,” said Lennox Scott, a member of NAR’s Real Estate Advisory Board and CEO of John L. Scott Real Estate in Bellevue , Washington . In his testimony, Scott shared NAR’s belief in the importance of FHA and concern for the safety and soundness of its programs due to its dramatic growth over a short period of time. NAR suggests a number of FHA improvements that will help maintain safe and affordable FHA loan products. These improvements include investment in staff and technology improvements; increased oversight and risk management; technical correction to help implement FHA programs; and monetizing the $8,000 first-time home buyer tax credit to allow buyers to apply it toward down payment requirements. NAR pledged to continue to work for FHA reforms that will ensure the continued success, availability and safety of FHA mortgage insurance programs.

Source: Realtor.org; 4/2/09



U.S. crackdown targets mortgage scams

Federal and state officials are cracking down on mortgage-modification scams, accusing “criminal actors” of preying upon desperate borrowers caught up in the nation’s housing crisis. The FBI is investigating about 2,100 mortgage-fraud cases, a 400 percent increase from five years ago. Government officials say scammers are seeking to take advantage of homeowners who are in danger of default by charging them up-front fees of $1,000 to $3,000 for help with mortgage modifications that rarely, if ever, pay off. The frauds often involve companies with official-sounding names designed to make borrowers think they are using the Obama administration’s efforts to help modify or refinance 7 to 9 million mortgages. Officials say such operations are almost always fraudulent and that help is available for free from government approved housing counselors. Homeowners do not have to pay to participate in the administration’s Making Home Affordable program, which seeks to prevent foreclosures by making mortgages affordable through refinancing or modified terms.

Source: Philadelphia Inquirer; 4/7/09



Code Enforcement Officers must be certified

As of Friday, April 10, 2009 Municipal code enforcement officers assigned to inspect residential dwellings must hold a PA Uniform Construction Code (UCC) certification in each category of work that they perform. Persons who hold Department–issued registration cards (i.e., were “grandfathered” and temporarily relieved of certification requirements) may no longer engage in any aspect of UCC enforcement. Click here for more.





BUCKS COUNTY



Centennial plans to close two elementary schools

Centennial School District will need to close two or even three of its elementary schools in the near future, according to the district’s operating committee. The committee concluded that closing two of the schools is the only way to provide a quality education to all of the district’s 2,600 K-5 students. The district will likely maintain Willow Dale, McDonald and Stackpole elementary schools, which means that no student would be more than 2 miles from their elementary school. Maintaining fewer schools would save up to $2.5 million annually. The committee will revisit K-5 school options at it next meeting. Details of the plans and the meeting time will be posted on the district’s website: www.centennialsd.org

Source: The Intelligencer; 4/08/09



Bucks planning commission will distribute stimulus funds

The Bucks County Planning Commission was briefed Wednesday about $5.5 million coming to the county as part of the stimulus spending by the federal government. Up to $3.9 million will be utilized to make the county facilities more energy efficient, which has been made a priority by the commission. Bucks County will also receive $1 million for the Homeless Prevention Program, as well as a $650,000 Community Block Grant.

Source: The Intelligencer; 4/04/09



Developer appeals to County judge to overturn Tinicum zoning

Main Street Development has filed an appeal stating that Tinicum’s zoning does not adhere to state law, which requires that zoning ordinances be designed to accommodate reasonable overall community growth. Main Street asked a Bucks County judge last week to overturn a township ruling against Ottsville Square , a proposed 192-acre garden apartment complex on 25 acres at the intersection of Durham Road and Route 611. Also called the Carr tract, the project would be the first of several planned developments in the mostly rural community. If successful, Main Street ’s appeal would pave the way for four more projects on 214-acres in Tinicum.

Source: The Intelligencer; 4/06/09



Pennridge looks to trim more from the budget

Pennridge School District administrators have already trimmed $1.3 million from the draft budget, but that could still translate into a 3.5 percent tax increase for district residents. The current $109.8 million draft budget would increase taxes by 4.08 mills from 116.60 mills to 120.68 mills. The average homeowner in the district with a home assessed at $29,200 would pay about $3,524 – about $119 more in property taxes. The finance committee will meet on April 23 to discuss ways to further trim figures before passing the preliminary budget.

Source: The Intelligencer; 4/07/09



Stimulus dollars could go to flood prevention at Pennypack Creek

Local environmental organizations hope to turn federal stimulus dollars into flood prevention funding for some areas in the Pennypack Creek watershed. Pennsylvania Environmental Council and Temple University Center for Sustainable Communities representatives outlined Tuesday about $1.4 million in top-priority Upper Moreland storm water remediation projects to township officials and residents. Proposals target the areas of Boileau Park , the Butternut Drive basin, Fair Oaks Park , open space on Surrey Lane and Terwood Park . Most of those projects involve excavating land and drawing storm water into the ground, away from flood-prone residential areas. Ideas for the future include remediation work around the Sam's Club parking lot and open space on Turnpike Drive . The experts said they'd be heading to Hatboro and Horsham within the next week with similar project proposals.

Source: Courier Times; 4/9/09







CHESTER COUNTY



Chester County fares well on lists measuring wealth

Chester County has found itself in rather prestigious company, ranking among the top 50 counties across the country in three categories: wages and salaries, dividend income and adjusted gross income. The report, complied by the Transactional Records Access Clearinghouse at Syracuse University , looked at individual and joint federal tax returns filed in 3,140 counties nationwide in 2007. In Adjusted Gross Income, or AGI, Chester County ranked 21 at $96,578. On the Wages and Salaries list, Chester County ranked 15 at $70,404. Top employers include Vanguard, QVC and Sungard, which offer top wages. Chester County is home to a number of biotechnology companies as well. On the education front, Chester County has four universities and graduate campus Penn State Great Valley . In addition, the county has an excellent public and private high-school system within its borders. In Chester County , 42.5 percent of adults 25 and older have a bachelor’s degree or higher compared to 22.4 percent in the rest of the commonwealth, he noted. For the complete list, visit www.trac.syr.edu.

Source: Main Line Suburban Life; 4/8/09



Easttown cuts pay, work week for municipal employees 20%

Most township employees are taking 20 percent pay cuts for the rest of the year because of declines in real estate transfer taxes (RTT) and other revenue. "Non-essential" employees, excluding patrol police officers and sewer crew workers, will work four-day weeks until the end of the year or until revenues improve. Workers in the police and the clerical and public works employees unions are participating in the cuts. And with 34 full-time staff members, the 8.2-square-mile municipality is closing its office on Fridays, starting immediately, due to the budget. The township's real estate transfer tax accounts for about 18 percent of its budgeted revenue. For 2009, the township budgeted $750,000 in revenue from this tax, which is levied when a property is sold. But in the first quarter, the tax generated only $126,000. Easttown collects no revenue from its commercial base. It does not impose a business privilege tax, earned-income tax, municipal services tax or gross revenue tax.

Source: Daily Local; 4/8/09



Consultant: Vahalla Brandywine Resort plans incomplete

A developer's plans for a mega-resort in Wallace Township are incomplete, according to a consultant for citizen group Guardians of the Brandywine . The group hired land planner Thomas Comitta to testify at conditional-use hearings regarding developer Albert M. Greenfield III's plan for Valhalla Brandywine. The plan calls for residences, a boutique-spa hotel, private and public guest suites, and private and public dining facilities with a private country club and golf course. Guardians of the Brandywine ’s greatest concerns are focused on the scope of the proposal and its location within the township. In his report, Comitta notes the constraints to development on the site are unique and include being bounded by and adjacent to the Upper East Branch of the Brandywine Creek, which has been designated a high-quality waterway by the state Department of Environmental Protection. The next hearing on the plan is slated for 7:30 p.m. April 14.

Source: Daily Local; 4/8/09



OJR preliminary school budget raises taxes

The Owen J. Roberts School Board got its first look at a preliminary 2009-10 budget. By law, the board does not need to vote on a final budget until June and some board members appeared to want to continue looking for additional savings. The preliminary budget totals $79.2 million, and represents a 3.4 percent increase over the 2008-09 budget. If approved as is, it will require a millage rate hike of 0.64 mills, bringing the overall millage rate up from 24.9 to 25.53 mills. For the average homeowner with a property assessed at $163,625, that will translate into an additional $97 in real estate taxes from the district.

Source: Daily Local; 4/3/09



West Chester Officials recommend condo plans

A local developer's proposal to build 58 townhouse-style condos on the former Bishop Shanahan site got a favorable recommendation from West Chester Borough's Planning Commission on Tuesday. The planning commission recommended that borough council give McCool Properties' proposal preliminary approval. Should borough council grant this approval, McCool would have to make minor adjustments to the project and seek final approval. Chris McCool, of McCool properties, said he hopes to get final approval by June, to begin marketing the townhomes by late summer, and to break ground by late fall 2009 or early spring 2010. According to current plans, the townhouses will be three stories with a two-car garage underneath; they will have three to four bedrooms, 2.5 baths, and two additional parking spaces in back. The site, which contains the former Bishop Shanahan High School, is at West Gay and Everhart streets. The high school building, which most recently housed the Collegium Charter School, will be demolished.

Source: Daily Local; 4/6/09









DELAWARE COUNTY


Sharon Hill investigates misplaced files

While searching for some old documents, two Democratic borough council members stumbled upon a treasure trove of Republican party files going back to at least 1951 in Sharon Hill’s Borough Hall. Among the files — which are current to 2003 — are canceled donation checks, political literature, election returns, nominating petitions, party-related correspondence and other records. On the third floor of the building are also lawn signs for the Sharon Hill Republican Party Golf Tournament, blank pages of Republican Party letterhead and envelopes bearing the classic Republican Party insignia of an elephant, which appear to have been there for some time. G. Terry Madonna, professor of public affairs at Franklin & Marshall College , said simply storing the files on borough property likely wouldn’t be enough to prop up an argument that any major violation had occurred. The files will likely be removed.

Source: Daily Times; 4/7/09



Chester Heights raises rates for water usage

The Chester Water Authority (CWA) is planning to raise the water usage rates paid by Chester Heights customers on July 1. According to a CWA memo sent to borough officials, the pending rate increases are needed "to sustain a capital construction program that will allow for the proper treatment and delivery of water in strict accordance with all regulatory requirements." Chester Heights customers are designated as either the Village Green East or West Service Area. The amount of the rate increase varies between east and west, and between different types of water service. For all Village Green East residential, commercial, industrial and municipal customers, the rate charged per thousand gallons for the first 25,000 gallons used in a month will rise by 25 cents to $4.27. For Village Green West customers, the usage rate will increase 44 cents to $5.38 per thousand gallons. Monthly base charges for all Chester Heights customers are also set to go up on July 1. The amount of these rate hikes is determined by the size of the water meter or the service line diameter, if unmetered. For more information, contact the CWA at 610-876-8181.

Source: Garnet Valley Press; 4/8/09



Delaware County Council approves revitalization project

No member of the public commented Tuesday on the proposed 2009 housing and community development annual plan, which equals about $5.6 million in projects and other actions. The plan includes Community Development Block Grant, HOME, ESG, and ADDI funds. County council is expected to adopt a final plan May 5, following revisions.

Source: Daily Times; 4/9/09









MONTGOMERY COUNTY



Souderton will enforce sidewalk repairs

Broken or damaged sidewalks in Souderton will have to be repaired or replaced within 180 days, in accordance with Souderton’s revised sidewalk ordinance. Borough council adopted the new regulations, which require property owners notified by the borough to repair sidewalks and curbs that front a borough street. If the property owner fails to do so within 180 days, the borough reserves the right to do the work and charge the property owner. The property owner would also be subject to a fine as much as $1,000 per offense.

Source: The Intelligencer; 4/08/09



Upper Moreland approves tax guidelines to encourage Willow Grove development

Upper Moreland Township ’s board unanimously approved tax incremental financing (TIF) guidelines that will help generate funds for projects by freezing taxes for developers, and boosting development in downtown Willow Grove . Although the County has yet to approve the guidelines, Upper Moreland officials have already received a verbal commitment from County officials. If passed, the school district and county agreed to offer developers 50 to 75 percent of the next tax dollars TIF would generate, and the township would put up 85 percent to 100 percent.

Source: The Willow Grove Guide; 4/07/09



Subdivision planned for Hatfield Township scaled-down from original plans

Morwood Associates scaled down its 52-home cluster development plans to just 20 homes, a garden center and a church complex on 40 acres at Township Line and Cowpath Roads. Township commissioners voted to reject Morwood’s original request, but the new, lower-density plan would still require a zoning change, according to Hatfield manager Andrew Haines.

Source: The Intelligencer; 4/05/09



Horsham Valley Golf Course will survive another season

According to Horsham Valley Golf Course owner Harry Barbin, the agreement of sale with the David Cutler Group to build a 55-and-over community at the location of the golf course has been pushed back. The golf course was sold to Cutler in April 2007, but because of the current economy, both parties have agreed to push back the sale to 2010. Cutler continues to clear zoning changes and other approvals before moving forward with plans for the 230-unit development.

Source: The Intelligencer; 4/07/09



Flood prevention funds funneled through stimulus

Pennsylvania Environmental Council (PEC) and Temple University Center for Sustainable Communities representatives outlined about $1.4 million in top-priority storm water remediation projects in Upper Moreland . Proposals target Boileau Park, the Butternut Drive basin, Fair Oaks Park, and open space on Surrey Lane and Terwood Park. Federal stimulus money for water-related projects in Pennsylvania will be distributed by PENNVEST, the state infrastructure investment authority. Upper Moreland and PEC officials have high hopes for securing funding, as the township has many factors working in its favor. Among them is the Pennypack Creek watershed study released by Temple University in 2006.

Source: The Intelligencer; 4/08/09