Update: Week of May 18, 2009

GENERAL INFORMATION

HUD: Homebuyer Tax Credit Loans Still on Track

News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says. "The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon. Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that borrowers could use to help with their down payment. The loans would then be repaid with the proceeds from the home buyer’s federal tax credit. The bridge loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington , D.C. , last week.

Source: REALTOR® Magazine Online; 5/21/09


Study: Philadelphia not alone in budget troubles

Philadelphia has plenty of company as it grapples with a $1.5 billion five-year budget deficit. A study released Monday by the Pew Charitable Trusts looks at how 13 major cities are dealing with the recession. It says Philadelphia is one of four cities studied that is planning at least one major tax hike, a five-year increase in the sales tax. The study looks at Atlanta; Baltimore; Boston; Chicago; Columbus, Ohio; Detroit; Kansas City, Mo.; Los Angeles, New York, Phoenix, Pittsburgh and Seattle. Only New York is looking at two major tax increases, including hikes in property and sales taxes. Atlanta is considering a property tax increase. Columbus is looking at an income tax hike. Some cities have proposed cuts for libraries, recreation facilities and trash collection.

Source: Daily Times; 5/14/09



House Bill 1474 would require justification for electric rate hikes

State Rep. Tim Solobay, sponsor of House Bill 1474, has heard from residents from all over the state complaining about the “uncontrolled, unsubstantiated” electric rate hikes. His proposed bill would force municipal electric departments to justify their rate increases. Montgomery County Republican Bob Godshall, who sits on the House Consumer Affairs Committee, reports a considerable increase in complaints over rates for public utilities such as PECO and PPL. While the bill has gathered support from members, it has also generated some early opposition. The Pennsylvania Municipal Electric Association reached out to House members immediately to express “strong opposition” to the legislation, citing that “municipal electric systems are directly controlled by the elected borough council, and they are thus self-regulated by their consumers. This direct self-regulation by the electric consumers obviates the necessity of state government regulation.”

Source: The Intelligencer; 5/17/09





BUCKS COUNTY

Doylestown takes suit against Water and Sewer Authority

Stemming from a dispute over bills the Bucks County Water and Sewer Authority issued to several downtown business owners, Doylestown Borough Council has voted to authorize solicitor David Conn to negotiate with and potentially sue the Authority. Several businesses in Doylestown have been subject to extensive sewer tapping fees after the buildings had all changed use in recent years with fees ranging from $11,400to $68,400. After a 2005 audit of its records, the Authority discovered that more sewage was flowing through the sewer system in Doylestown than was accounted for in the Authority’s records. Authority officials believe this is because seven businesses had not submitted the required planning paperwork, as mandated by the Department of Environmental Protection when a property changes use. According to the DEP, it is the municipality’s responsibility to have property owners complete the planning paperwork and pass it along to the Authority and DEP, but Borough officials insist that they did not violate DEP regulations.

Source: The Intelligencer; 5/19/09



Buckingham designates 233 acres for open space

Officials in Buckingham Township voted to approve two conservation easements for open space in the township. Buckingham paid $3.87 million for the Histand property, a 155-acre parcel between Smith and Township Line roads. Another 78 acres owned by Frank and Katherine Wicen was preserved for a total payment of $224,987.

Source: The Intelligencer; 5/20/09



Community and housing improvement dollars available in Bucks

Bucks County municipalities and social service agencies can apply for $637,881 in community and housing improvement dollars from the federal stimulus package. Grants must expand housing options, improve community facilities and services and create jobs for low-and moderate-income residents. The stimulus infusion accounts for just under one-third of the county’s $2.4 million allocation in 2008. The Community Development Block Grant Advisory Board, which is made up of 24 municipal and citizen representatives, will review the applications and make recommendations to the county commissioners. A final vote is set for June 3.

Source: The Bucks County Courier Times; 5/16/09






CHESTER COUNTY



West Whiteland lacks deed for land municipal building constructed on

A long-awaited decision on whether the developer of Main Street at Exton will be forced to turn over the deed to the land for West Whiteland Township 's new municipal building will be made by the end of June. The new municipal building, located on Commerce Drive , has been under construction since 2002, but the township does not have the deed to the property. There was a hearing before Judge Edward Griffith in November 2008 on the issue and the judge has been considering it ever since. The dispute has actually grown over the years. Initially, it was over whether the township had fulfilled the terms of the original settlement agreement made between the developer and the township whereby the township would get 8.9 acres to build a new township building. A part of that dispute is whether the township is obligated to pay Wolfson & Verrichia for taxes the developer has paid on Lot 11, the township building parcel. Another dispute is a claim by Wolfson & Verrichia that the township improperly granted itself waivers in approving its own land development plan for the township building. The third part is a suit by Wolfson & Verrichia that the township is improperly not allowing it to revise its land development plan for the shopping center to construct apartments rather than a hotel. Wolfson & Verrichia contends that the township owes it $31,935 in taxes it paid on the land for a period it was doing site work as a favor to the township.

Source: Daily Local; 5/22/09



West Chester Area school board weighing budget options, tax hike

The West Chester Area School Board's Finance Committee Monday night recommended two options for the 2009-10 budget. One option would drop next year's tax increase from the planned 6.6 percent in the Chester County portion of the district to 5.6 percent. The increase in the Delaware County portion of the district would drop from 10.1 percent to 9.1 percent. This option would come with the recommendation that, over the next four years, the board manage the district budget so the general fund balance would increase to 3.9 percent of the total budget. The board wants to increase the general fund balance so that its credit rating won't be downgraded. According to projections by Finance Director Suzanne Moore, the higher 2009-10 tax rate would have resulted in a total tax increase over the next four years of 15.6 to 16.6 percent. The lower tax rate means a four-year increase of 18.6 to 19.7 percent. The average tax increase for Chester County homeowners if the board adopts the first option would be $198. All district taxpayers are entitled to a Homestead and Farmstead Exclusion Act credit of $146. The full school board plans to select one of these options at its May 26 meeting.

Source: Daily Times



Avon Grove to consider final budget on June 11

Avon Grove School District Board Members will vote on the final 2009-2010 fiscal year budget during a meeting on June 11. The meeting will begin at 7:30 p.m. in the auditorium of the Avon Grove Intermediate School , 375 S. Jennersville Road, West Grove , PA.

Source: Daily Local News; 05/18/2009



Landscapes II Community Information Meetings

The Chester County Planning Commission invited residents to attend one of their Community Information Meetings to hear about the draft update to the county’s land use policy plan, Landscapes. These meetings provided an opportunity to be briefed on the plan update and offer your input and observations about the draft plan prior to beginning the formal review and adoption process.



DELAWARE COUNTY



Upland officials seek to pull out of CUSD

Edward Mitchell, former Chester Upland school director and current borough council president, feels the time has come for the borough to pull out of the Chester Upland public school union that was mandated by the state in 1972. A provision in the mandate allows the merger to be dissolved if the district’s enrollment falls below 4,000 students. This year’s Chester Upland School District enrollment is just over 4,100, and is expected to drop next year. The Pennsylvania Department of Education has run Chester Upland schools since 1994. While test performance and enrollment have slipped, spiraling costs have led to high cost-per-student ratios. According to Mitchell, who served 16 years on the Chester Upland School Board, the district spent $47 million to educate 12,400 students in 1994. The annual budget has now risen to $117 million for about one-third the number of students. The borough currently has an elementary school, but no secondary school. Mitchell did not propose where Upland students would go to high school. He did note that at the Chester Upland rate of roughly $27,000 per student per year, the borough “could afford to send each of our kids to parochial school.” Upland officials have held informal meetings with Chester Township leaders, who also want to break away from Chester schools. Mitchell is now proposing a formal joint coalition to explore the best avenue for both satellite communities to void the court-ordered merger. Upland Borough has expressed support for Gov. Ed Rendell’s recent proposal to reduce the state’s school districts from the current 501 down to 100. Mitchell described the governor’s cost-cutting proposal as “music to our ears.”

Source: Daily Times; 5/21/09



Open house for Franklin Mint plan is a big hit with residents in Middletown Township

A plan to transform the 150-acre former Franklin Mint property into a walkable community met generally favorable response from a sizeable number of people attending a three-hour open house on the site Wednesday night. The event was hosted by the development team. Traffic was the greatest concern of attendees who talked one-on-one with team members about the proposed mixed use of the property. The proposed new community would include 980 residential units, 230,000 square feet of office space, 798,000 square feet of commercial use space and a 225-room hotel. McKee said the residential aspect would appeal to first-time homebuyers, empty nesters and single professionals. Already, he said, five people attending the open house offered to be part of a focus group for the residential piece of the plan.

More information on the project can be found at www.planningfranklin.com, by calling 610-397-0237 or e-mailing info@planningfranklin.com.

Source: Daily Times; 5/21/09



Chester looks for input on comprehensive plan

The Chester Planning Commission will be soliciting public input this summer as the city prepares to update its decade-old comprehensive plan. A comprehensive plan is required by the state to guide zoning decisions and planning and economic development policies, although findings are not binding. Residents will have the opportunity to fill out a survey, which will be posted on the city’s website. The following community meetings have been scheduled throughout June:

·Wednesday, June 24: 6:30 p.m., location TBA

·Tuesday, June 30: 6:30 p.m., North Chester Baptist Church, 2331 Providence Ave., Chester

Source: Daily Times; 5/20/09



Party-endorsed candidates sweep Delaware County Council Primaries

The party-endorsed candidates swept their primary opponents for every seat at the county level Tuesday in the unofficial election returns. Republican Party-endorsed candidates Jack Whelan, the incumbent county council vice chairman, and longtime Upper Darby State Representative Mario Civera, both secured ballot positions in the November election with 21,523 and 20,813 votes, respectively. Democratic Party-endorsed candidates Keith Collins, a pastor from Ridley Park , and Nancy Baulis, a Philadelphia school teacher from Springfield , will also appear on the November ballot, having received 7,014 and 9,640 votes, respectively.

Source: Daily Times; 5/20/09



Haverford adopts proposed final budget, lowers tax increase

The Haverford School Board adopted an $87.8 million proposed final budget for 2009-2010. The budget process began in January with a projected 5.9 percent tax hike, but officials succeeded in cutting the increase to 4.4 percent. As proposed, the millage rate would increase to 23.1020 mills, which translates to an additional $143 for the owner of a home at the median assessed value of $146,900.

Source: Daily Times; 5/21/09






MONTGOMERY COUNTY



Montgomery County makes top-50 list for per-capita income

Montgomery County ranked 24th on a Bureau of Economic Analysis list of top-50 counties with the highest per capita income in the United States in 2008. The per capita income for the county was $62,086, compared to the $132,728 per capita income for the top-ranked municipality, Teton County , Wyoming .

Source: The Intelligencer; 5/20/09



Commissioners’ vote makes TIF available to Willow Grove developers

Montgomery County Commissioners unanimously voted in favor of making tax increment financing, or TIF, available to developers proposing projects to help revitalize the Willow Grove area. Upper Moreland Township and the school district, the other two taxing authorities, have already signed off on the TIF guidelines. The commissioners, as well as local officials, hope that the incentive will attract more private investment in the area.

Source: The Intelligencer; 5/15/09



East Norriton to vote on proposed hospital May 26

Final site plans for the Albert Einstein Healthcare Hospital will be voted on at the regular township meeting on May 26. The proposed 360,000 square-foot, five-story hospital includes a separate 75,000 square-foot medical office building and 1,137 parking spaces. A dedicated traffic light will control the new driveway entrance on Germantown Pike.

Source: The Times Herald; 5/13/09