As always, today’s families recognize the importance of living in a community that’s as desirable as their home itself. Mello-Roos enables critical community facilities to be provided whenever they’re needed at a lower cost ultimately to homeowners. By doing so, Mello-Roos ensures a higher quality of life for every family in that community. Perhaps most importantly of all, Mello-Roos helps preserve the value of your new home investment.
Where did Mello-Roos Come From?
When Proposition 13 passed in 1978, it severely limited the ability of local governments to use property taxes to construct public facilities and services. As a result, Californians were forced to find new ways to fund public improvements in their respective locales.
The Mello-Roos Community Facilities Act of 1982 was co-authored by Senator Henry Mello of the Monterey area and Los Angeles assemblyman Mike Roos. Enacted by the California legislature, the Act enabled “Community Facilities Districts” (CFD’s) to be established by Counties, Cities and School Districts as a means of obtaining this crucial community funding. Today the colloquial name for the Facilities Act of 1982 is simply “Mello-Roos.”
What Public Facilities are Funded by Mello-Roos?
The Problem: Before Proposition 13, state and local governments used income collected through property taxes to build new roads, schools and other necessary community facilities. In order to continue building residential areas, these same governments were forced to require builders of new communities to pay for these public facilities. Consequently, these funds were added to the cost of the new homes. These price increases hurt new home buyers and fewer people were able to afford these higher priced homes.
The Solution: Since state funds are not available to provide the quality of facilities necessary in every community in California, Mello-Roos makes the acquisition of timely financing possible. In addition, Mello-Roos can provide financing for other vital community needs. These needs include the construction and maintenance of public roads, traffic light systems, storm sewers, water mains, police stations, fire stations, ambulance services, public libraries, recreational parks, museums and cultural facilities.
Now homeowners are paying for these improvements through their Mello-Roos Community District as part of their property taxes, spread out over 20 years or more instead of as an initial increase in their home purchase price.
How is Community Funding Provided?
Let’s say, for example, that plans for a new school are approved in your Community Facilities District. To finance the school, tax exempt municipal bonds are issued. These public bonds are repaid (or secured) over an extended time through the levy of a special tax (Mello-Roos) on properties that benefit from the facility. This tax is usually added to the annual property tax bills (over a 20-25 year period) of residences within the CFD.
Commercial and industrial property owners are also subject to Mello-Roos. All proceeds raised from Mello-Roos assessment must be used exclusively to finance the specific public facilities and/or services that were authorized in your CFD.
How Much Will I Be Assessed?
This will vary from one CFD to another. Typically, an adopted formula that relates to the size of the home (square footage or lot size) is used to determine the amount of an individual assessment. In general, the special taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Moreover, the total amount of all annual taxes (including property tax) usually does not exceed 2% to 2.5% of the home’s market value.
Will My Mello-Roos Tax Increase?
It can. This special tax can increase up to a maximum rate of 2% per year over a 25 years period. On the other hand, it’s possible that this tax will decrease, should state or other funds become available that could be used to reduce existing bond indebtedness, or be used to construct new facilities in lieu of additional bond sales.
Can I Choose How to Pay for Mello-Roos?
Yes. As already mentioned, the special assessment can be added to your property tax bills until your portion of the tax is paid off. A schedule of maximum special tax payments over a period of 25 years is available to homeowners prior to the close of escrow. Those who purchase a new home also have the option to pay for their Mello-Roos tax in it’s entirety at the time they buy. However, because statistics indicate that the average homeowner in California moves every 7 years, it’s often prudent to spread the payments over time.
Why Can’t Builders Bear the Cost of these Facilities?
They can. But ultimately, the builder must recover these considerable costs in the form of higher home prices. Commercial construction loans acquired by builders typically incur higher rates of interest than CFD financing, which accrues at significantly lower rates. That makes the Mello-Roos a cheaper option for you.
Does Mello-Roos Makes Sense?
Not all new home communities are affected by Mello-Roos special taxes. For example, sometimes a new neighborhood is built within existing communities. Because public facilities are already in place, they are not subject to Mello-Roos taxes. However, as cities expand into adjacent undeveloped areas and farmland, newer developments will continue to use the Mello-Roos device to finance improvements we all take for granted in our neighborhoods.
Mello-Roos lowers these costs a bit since CFD (Community Facilities Districts) financing is less expensive than what builders would have to charge to underwrite commercial loans.
So California voters approved Proposition 13 to lower their taxes. Our lawmakers took the constraints we imposed on State and local government spending and developed a way to fund all the infrastructure we expect in a new home development. They did it by collecting Mello-Roos assessments from those homeowners in new neighborhood developments instead of taxing all California voters. Wouldn't it be interesting to know how many of those new home owners voted for Proposition 13?
What’s the Bottom Line?
New home developments often advertise sale prices which do not emphasize special assessments like the Mello-Roos. Between HOA’s and Mello-Roos and other assessments, you can easily see an additional 2% monthly charge based on the sale price. Since this is not a developer added cost, but one that is imposed by local government, these homes look like huge bargains. Not entirely misleading, it is still a little bit like advertising a brand new car without the tires.
Check the fine print. This is your local Community Facilities District answer to Proposition 13. It is a way of coping with a difficult situation. Instead of the State, County or local Communities footing the costs for these street lamps and schools – you the new neighborhood homeowner become the bottom line.
Warmest Regards,
Mark Thorngren
Much of this article was shamelessly copied from title company reports. Namely Fidelity National Title Company and Chicago Title. Two very fine and naively trusting supporters of my business.
Special thanks to Tammie Coulter of Stewart Title Company for contributing material for this offering.
The preceding summaries are provided for informational purposes only. For a more comprehensive understanding of the legal/tax consequences of Mello-Roos, appropriate consultation is recommended with an attorney and / or a CPA for specific advice.
www.markthorngren.com
mark@markthorngren.com
(805) 504-0228
Tuesday, August 26, 2008
Wednesday, July 23, 2008
Senator Feinstein Update on FHA Limits
Dear Mr. Thorngren:
Thank you for contacting me to express your support for permanently increasing the conforming loan limit. I appreciate the time you took to write and agree with you.
The Federal Housing Administration (FHA) plays an important role in insuring home mortgages for those in underserved communities. It is critical that FHA programs be modernized to provide more homebuyers and borrowers looking to refinance with the opportunity to obtain an FHA loan. This remains especially important in California where the cost of housing remains high. For homebuyers faced with so-called "jumbo loans" subject to higher interest rates, raising the government-sponsored enterprise (GSE) conforming loan limit will bring more liquidity to the market and lower interest rates.
On February 13, 2008, the President signed the Economic Stimulus Act of 2008 (H.R. 5140) into law. As the bill was being developed, I sent a letter to Senator Majority Leader Harry Reid (D-NV) expressing strong support for increasing the previous GSE conforming loan limit of $417,000 and the FHA loan limit of $362,790 to $729,750. While I am pleased that a temporary increase was included in the bill, the new loan limits will expire on December 31, 2008.
On July 11, 2008, the Senate passed the "Foreclosure Prevention Act of 2008," (H.R. 3221) introduced by Senators Christopher J. Dodd (D-CT) and Richard C. Shelby (R-AL). Prior to Senate consideration of the bill, I urged Senators Dodd and Shelby to keep the FHA loan limit and GSE conforming loan limits at the current level of $729,750. The Senate passed its version of H.R. 3221 on July 11, 2008. While the Senate-passed version of the bill would only raise the loan limits to $625,500, the House-passed version would keep them at their current level. On July 11, 2008, I joined 52 members of the California Congressional delegation in sending a letter to leaders of the Senate and House leadership urging them to retain the $729,750 limits in the final version of this important bill.
I fully support the higher limit and will continue to push to make it permanent.
Thanks for writing.
Sincerely yours,
Dianne Feinstein United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Thank you for contacting me to express your support for permanently increasing the conforming loan limit. I appreciate the time you took to write and agree with you.
The Federal Housing Administration (FHA) plays an important role in insuring home mortgages for those in underserved communities. It is critical that FHA programs be modernized to provide more homebuyers and borrowers looking to refinance with the opportunity to obtain an FHA loan. This remains especially important in California where the cost of housing remains high. For homebuyers faced with so-called "jumbo loans" subject to higher interest rates, raising the government-sponsored enterprise (GSE) conforming loan limit will bring more liquidity to the market and lower interest rates.
On February 13, 2008, the President signed the Economic Stimulus Act of 2008 (H.R. 5140) into law. As the bill was being developed, I sent a letter to Senator Majority Leader Harry Reid (D-NV) expressing strong support for increasing the previous GSE conforming loan limit of $417,000 and the FHA loan limit of $362,790 to $729,750. While I am pleased that a temporary increase was included in the bill, the new loan limits will expire on December 31, 2008.
On July 11, 2008, the Senate passed the "Foreclosure Prevention Act of 2008," (H.R. 3221) introduced by Senators Christopher J. Dodd (D-CT) and Richard C. Shelby (R-AL). Prior to Senate consideration of the bill, I urged Senators Dodd and Shelby to keep the FHA loan limit and GSE conforming loan limits at the current level of $729,750. The Senate passed its version of H.R. 3221 on July 11, 2008. While the Senate-passed version of the bill would only raise the loan limits to $625,500, the House-passed version would keep them at their current level. On July 11, 2008, I joined 52 members of the California Congressional delegation in sending a letter to leaders of the Senate and House leadership urging them to retain the $729,750 limits in the final version of this important bill.
I fully support the higher limit and will continue to push to make it permanent.
Thanks for writing.
Sincerely yours,
Dianne Feinstein United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Saturday, July 5, 2008
Update on RiverPark Development in Oxnard
Here is a little update to a blog I wrote about the RiverPark development last year. This is inresponse to questions about the local High Schools, gangs, flood zone considerations and home buying expenses. There are also some very basic suggestions for people considering a home purchase in the next few months to make their experience more productive and less stressful.
Yes there are some real expenses with living in Riverpark that include Mello Roos, Oxnard City tax and HOA fees. The Mellos Roos and City tax can total close to 2% of the purchase price yearly, while HOA's average around $250/month. So, for a $450K home, your are talking about an extra $1,000 a month in home expenses.
Having said that, my experience has been that these are nicely built homes at very competitive prices even with the additional add-on expenses. In the last year, these same homes have had a number of price reductions and incentives thrown in to make them really good opportunities for folks who need a brand new home. So for the same $400K to $450K this year, you can often find yourself making an offer on a much nicer home for the same money.
My daughter attends High School at El Rio and we have found their programs for college bound students to be outstanding. There are some possible new developments for students as well which include El Rio High becoming one of only two High Schools in Ventura County (Newbury Park High is the other) to qualify for an international student accelerated learning class this year. It should be fully instituted by next year.
Gangs are a problem in Oxnard, but there have been some very effective law enforcement initiatives taken in the last few years to cripple their influence.
RiverPark has it's own school, fire department and is building some shopping areas as well.
In order to address the flooding issues, I would recommend you contact the City of Oxnard Public Works Department, FEMA for flood plain maps at www.FEMA.gov or http://www.floodalert.fema.gov for a list of insurance companies that offer flood insurance in your area. You can find additional commments on flooding issues in my latest blog on my personal website http://www.markthorngren.com.
Should you buy now or wait. Let's look at each possibility.
Buy later....or Buy now. Home prices will most likely continue to fall for months if not years yet. My personal bet is some areas will turn around before others. Unless you know your neighborhoods intimately, you may have difficulty recognizing when it begins to happen. According to local title information (Land America Lawyers Title - Tom Piszczek - (805) 302-8667) home prices in Oxnard have gone down over 34% from March'07 to March '08, and 16% in Camarillo over the same time frame. Those are some pretty big numbers.
I always do a Comparative Market Analysis of my own for my clients. This is a one year look at a very specific neighborhood for any property my clients are interested in making an offer on. I find price trends, comparative home sale prices and listing information to base the offer or sale price for sellers and buyers needs.
Let us say that home prices continue down for at least another year. During the year we may see the buyers continue to take advantage of this market. Some of these folks are investors who are very savvy to our local markets.
In January my clients purchased a home listed for $600K in a neighborhood with a $604K median price. The sellers were motivated and my buyers made an offer for $450K plus $8,000 in closing costs. It was accepted! That is a 25% price reduction - almost a full years price drop right now!
Those are the kinds of deals that can happen in today's market. Does it always happen like that? No, but such a thing was unheard of a year ago. Will that type market last another year? Impossible to say.Mortage programs are much more strict but progress has been made through FHA and CalHFA to make 100% financing still available to qualified first time home buyers. Very competitive rates are available through FHA for most other well-qualified individuals.
You should have yourself pre-approved with a lender you trust before you go looking for a home. If you don't know what you can afford, you are wasting your valuable time. Also,most realtors are not going to spend a lot of time driving people around at $4.65/gallon if they don't know what they are qualified to purchase or what program best fits their personal needs.
Get several Good Faith Estimates from different lenders and tell them what you are doing. Make them compete for your business! Watch you expenses and fees shrink as they try to lure you their way. Make sure the good faith estimates include pro-rated taxes, Title and Escrow fees. It is not uncommon to receive Good Faith Estimates that look very competitive until you realize they don't include all the normal expenses for your transaction.
Ask your competing lenders to explain any differences in competing Good Faith Estimates. Sometimes your realtor can give you and idea of what is really happening as well.
FHA comforming loan limits have been raised from $417,000 to roughly $729,000 until December 31 of this year. There is great pressure being put on Congress to extend this deadline and it may indeed be extended. Hasn't happened yet but might. If it doesn't, FHA limits will probably default back to $417,000 next year. There are not very many single family detached homes available in California for less than $417,000.
We have no idea what interest rates will do over the next 12 months. That is a very fundamental gamble if you are undecided about when to buy. A very small interest rate change can have an immense effect on the interest you pay over 30 Years. Right now the Fed is under increasing pressure to start raising interest rates again. Higher gas prices, food prices and shipping costs are having a huge inflationary impact on our economy. That should be a concern to more people than just home prices. I'm guessing that after the presidential election we could see higher home mortgage interest rates.
This is a buyers market. It will continue to be a buyers market for months to come. When it changes, it will change gradually and at different times in different towns and neighborhoods. You won't easily see the change until you are past it. That is my thought on today's market. What do they say about a bird in the hand?
Warmest Regards,
Mark Thorngren
http://RealtyTimes.com/REUv/MarkThorngren or
http://www.markthorngren.com
(805) 504-0228
Oxnard – Riverpark – 1,800 homes along the Santa Clara River
The largest new home development currently being built in Oxnard is Riverpark There are 15 different home plans by my count, located just North off the 101, along the banks of the Santa Clara River. HOA’s vary by neighborhood, by square footage and by builder. Standard Pacific Homes is currently marketing the Celadon tract. Their HOAs can run from less than $100.00 up to nearly $300.00. There is also a 30 year Mello Roos which is about 1.1% but it is combined with a city special tax assessment. Agents in the development have told me to just multiply the Sale Price x 1.9 to get a rough idea of the combined total. Add the HOA and you will come close to your monthly fees. The HOA in the homes built by Standard Pacific Homes includes outside maintenance, landscaping and lender insurance – typically fire. Add these to your mortgage payment for your monthly housing costs. This does not include all utilities or your personal property insurance. Even with all the added costs, the homes tend to be very competitively priced with more floor space than I would expect. In one case that I know of, a home was offered for 70K below market with a special 6% give back at close of escrow. It was the last home in the tract and had fallen out of escrow previously. This was a nicely upgraded home in a nice location. Good things can happen. Call them to find out what is currently available or I can check for you if you prefer.Shea Homes is offering the Market Street Tract of luxury townhomes. Plans 1 – 4 range in price from 486K for 2,362 sq ft to 545K for 2,631 sq ft. HOAs are up to $292 for Phase 2. This covers the Riverpark master association dues ($32) with the balance for Fire and Casualty Insurance of the building and exterior maintenance of the building. There is a property tax rate of 1.15% of the sale price, plus a Mello Roos Tax Assessment of $4,587 per year. Several other tracts are still under construction. They have a new school opening there this Fall. There are very nice websitesq at http://www.riverparklife.com/ or www.standardpacifichomes.com or www.SheaHomes.com.The tract names are:• Celadon• Destination• Luminaria• Market Street• Promenade• The Avenue• Tradewinds• Trellis• Westerly• Collage• Meridian • Morning View• Veranda• Waypoint • Daybreak
May 10, 2008 Mark J Thorngren
Mark has summed it up really well, about the declines yet to come, the variations in the markets in terms of turning down and up (coastal is last to fall, first to rise for example), and that lending is fairly loose if you look at higher limits and 100% financing for FHA. We had 140 FHA sales last month.
This is where I disagree on interest rates: since it's all about the monthly payment, any rise in interest rates NECESSITATES a lower home price.
If I were even thinking of selling, I would make sure I sold BEFORE1. Interest rates rise, thus shutting out more buyers and forcing me to lower my price 2. More foreclosures increase the supply of homes. As Chris Thornburg was quoted in the NC Times today, nothing is more pernicious to prices, than a high supply.
Yes there are some real expenses with living in Riverpark that include Mello Roos, Oxnard City tax and HOA fees. The Mellos Roos and City tax can total close to 2% of the purchase price yearly, while HOA's average around $250/month. So, for a $450K home, your are talking about an extra $1,000 a month in home expenses.
Having said that, my experience has been that these are nicely built homes at very competitive prices even with the additional add-on expenses. In the last year, these same homes have had a number of price reductions and incentives thrown in to make them really good opportunities for folks who need a brand new home. So for the same $400K to $450K this year, you can often find yourself making an offer on a much nicer home for the same money.
My daughter attends High School at El Rio and we have found their programs for college bound students to be outstanding. There are some possible new developments for students as well which include El Rio High becoming one of only two High Schools in Ventura County (Newbury Park High is the other) to qualify for an international student accelerated learning class this year. It should be fully instituted by next year.
Gangs are a problem in Oxnard, but there have been some very effective law enforcement initiatives taken in the last few years to cripple their influence.
RiverPark has it's own school, fire department and is building some shopping areas as well.
In order to address the flooding issues, I would recommend you contact the City of Oxnard Public Works Department, FEMA for flood plain maps at www.FEMA.gov or http://www.floodalert.fema.gov for a list of insurance companies that offer flood insurance in your area. You can find additional commments on flooding issues in my latest blog on my personal website http://www.markthorngren.com.
Should you buy now or wait. Let's look at each possibility.
Buy later....or Buy now. Home prices will most likely continue to fall for months if not years yet. My personal bet is some areas will turn around before others. Unless you know your neighborhoods intimately, you may have difficulty recognizing when it begins to happen. According to local title information (Land America Lawyers Title - Tom Piszczek - (805) 302-8667) home prices in Oxnard have gone down over 34% from March'07 to March '08, and 16% in Camarillo over the same time frame. Those are some pretty big numbers.
I always do a Comparative Market Analysis of my own for my clients. This is a one year look at a very specific neighborhood for any property my clients are interested in making an offer on. I find price trends, comparative home sale prices and listing information to base the offer or sale price for sellers and buyers needs.
Let us say that home prices continue down for at least another year. During the year we may see the buyers continue to take advantage of this market. Some of these folks are investors who are very savvy to our local markets.
In January my clients purchased a home listed for $600K in a neighborhood with a $604K median price. The sellers were motivated and my buyers made an offer for $450K plus $8,000 in closing costs. It was accepted! That is a 25% price reduction - almost a full years price drop right now!
Those are the kinds of deals that can happen in today's market. Does it always happen like that? No, but such a thing was unheard of a year ago. Will that type market last another year? Impossible to say.Mortage programs are much more strict but progress has been made through FHA and CalHFA to make 100% financing still available to qualified first time home buyers. Very competitive rates are available through FHA for most other well-qualified individuals.
You should have yourself pre-approved with a lender you trust before you go looking for a home. If you don't know what you can afford, you are wasting your valuable time. Also,most realtors are not going to spend a lot of time driving people around at $4.65/gallon if they don't know what they are qualified to purchase or what program best fits their personal needs.
Get several Good Faith Estimates from different lenders and tell them what you are doing. Make them compete for your business! Watch you expenses and fees shrink as they try to lure you their way. Make sure the good faith estimates include pro-rated taxes, Title and Escrow fees. It is not uncommon to receive Good Faith Estimates that look very competitive until you realize they don't include all the normal expenses for your transaction.
Ask your competing lenders to explain any differences in competing Good Faith Estimates. Sometimes your realtor can give you and idea of what is really happening as well.
FHA comforming loan limits have been raised from $417,000 to roughly $729,000 until December 31 of this year. There is great pressure being put on Congress to extend this deadline and it may indeed be extended. Hasn't happened yet but might. If it doesn't, FHA limits will probably default back to $417,000 next year. There are not very many single family detached homes available in California for less than $417,000.
We have no idea what interest rates will do over the next 12 months. That is a very fundamental gamble if you are undecided about when to buy. A very small interest rate change can have an immense effect on the interest you pay over 30 Years. Right now the Fed is under increasing pressure to start raising interest rates again. Higher gas prices, food prices and shipping costs are having a huge inflationary impact on our economy. That should be a concern to more people than just home prices. I'm guessing that after the presidential election we could see higher home mortgage interest rates.
This is a buyers market. It will continue to be a buyers market for months to come. When it changes, it will change gradually and at different times in different towns and neighborhoods. You won't easily see the change until you are past it. That is my thought on today's market. What do they say about a bird in the hand?
Warmest Regards,
Mark Thorngren
http://RealtyTimes.com/REUv/MarkThorngren or
http://www.markthorngren.com
(805) 504-0228
Oxnard – Riverpark – 1,800 homes along the Santa Clara River
The largest new home development currently being built in Oxnard is Riverpark There are 15 different home plans by my count, located just North off the 101, along the banks of the Santa Clara River. HOA’s vary by neighborhood, by square footage and by builder. Standard Pacific Homes is currently marketing the Celadon tract. Their HOAs can run from less than $100.00 up to nearly $300.00. There is also a 30 year Mello Roos which is about 1.1% but it is combined with a city special tax assessment. Agents in the development have told me to just multiply the Sale Price x 1.9 to get a rough idea of the combined total. Add the HOA and you will come close to your monthly fees. The HOA in the homes built by Standard Pacific Homes includes outside maintenance, landscaping and lender insurance – typically fire. Add these to your mortgage payment for your monthly housing costs. This does not include all utilities or your personal property insurance. Even with all the added costs, the homes tend to be very competitively priced with more floor space than I would expect. In one case that I know of, a home was offered for 70K below market with a special 6% give back at close of escrow. It was the last home in the tract and had fallen out of escrow previously. This was a nicely upgraded home in a nice location. Good things can happen. Call them to find out what is currently available or I can check for you if you prefer.Shea Homes is offering the Market Street Tract of luxury townhomes. Plans 1 – 4 range in price from 486K for 2,362 sq ft to 545K for 2,631 sq ft. HOAs are up to $292 for Phase 2. This covers the Riverpark master association dues ($32) with the balance for Fire and Casualty Insurance of the building and exterior maintenance of the building. There is a property tax rate of 1.15% of the sale price, plus a Mello Roos Tax Assessment of $4,587 per year. Several other tracts are still under construction. They have a new school opening there this Fall. There are very nice websitesq at http://www.riverparklife.com/ or www.standardpacifichomes.com or www.SheaHomes.com.The tract names are:• Celadon• Destination• Luminaria• Market Street• Promenade• The Avenue• Tradewinds• Trellis• Westerly• Collage• Meridian • Morning View• Veranda• Waypoint • Daybreak
May 10, 2008 Mark J Thorngren
Mark has summed it up really well, about the declines yet to come, the variations in the markets in terms of turning down and up (coastal is last to fall, first to rise for example), and that lending is fairly loose if you look at higher limits and 100% financing for FHA. We had 140 FHA sales last month.
This is where I disagree on interest rates: since it's all about the monthly payment, any rise in interest rates NECESSITATES a lower home price.
If I were even thinking of selling, I would make sure I sold BEFORE1. Interest rates rise, thus shutting out more buyers and forcing me to lower my price 2. More foreclosures increase the supply of homes. As Chris Thornburg was quoted in the NC Times today, nothing is more pernicious to prices, than a high supply.
Sunday, April 27, 2008
FEMA & Camarillo Floodplain Issues
When my family first moved into Camarillo back in 1998, the city was experiencing widespread flooding from "La Neina". The rains were heavy for weeks at a time and many of the lower elevations around town were suffering. Since that time many extensive flood control projects have been carried out around the county.
Notable among the projects was a thorough clean up and channeling of the Calleguas Creek. This creek had overflowed in several locations where roads crossed it. The bridge embankments were too narrow and had caused the creek to back up at several locations. New bridge construction and a host of other improvements have greatly eased the risk of flooding in Camarillo.
Despite these improvements, FEMA went ahead and redrew flood maps for our city which include diagrams of areas likely to flood over a 100 year time frame. FEMA has expanded the flood areas to include a new, even less likely area of flooding called the 500 year flood area.
The City of Camarillo which has spent a great deal of it's resources to protect itself from flooding, has been understandably concerned about FEMA's new maps. The city has worked to provide homeowners with a better understanding of the effects the new maps may have on the need for and the cost of insuring their homes because of FEMA's new maps.
Insurance companies often require homeowners to carry flood insurance according to the way these FEMA maps are drawn. Insurance can run from around $300 to upwards of $2,000 per year and is normally required for Federal or federally related mortgage financing.
I have copied and scanned some of the literature the City of Camarillo distributed during 2006 in response to FEMA's new maps. I would be happy to email these to anyone with an interest in their property status.
The long and short of it all appears to be that if you live in one of the mapped areas, you would be well-advised to contact the City of Camarillo, FEMA and your home insurer to determine how each will treat your property. Contact information for City of Camarillo - Public Works Department Ph (805) 388-5340 or www.ci.camarillo.ca.us. FEMA - John Magnotti at (202) 646-3932 or john.magnotti@fema.gov or www.fema.gov/mit/tsd.
Warmest Regards,
Mark Thorngren
http://www.markthorngren.com & http://realtytimes.com/REUv/MarkThorngren
Notable among the projects was a thorough clean up and channeling of the Calleguas Creek. This creek had overflowed in several locations where roads crossed it. The bridge embankments were too narrow and had caused the creek to back up at several locations. New bridge construction and a host of other improvements have greatly eased the risk of flooding in Camarillo.
Despite these improvements, FEMA went ahead and redrew flood maps for our city which include diagrams of areas likely to flood over a 100 year time frame. FEMA has expanded the flood areas to include a new, even less likely area of flooding called the 500 year flood area.
The City of Camarillo which has spent a great deal of it's resources to protect itself from flooding, has been understandably concerned about FEMA's new maps. The city has worked to provide homeowners with a better understanding of the effects the new maps may have on the need for and the cost of insuring their homes because of FEMA's new maps.
Insurance companies often require homeowners to carry flood insurance according to the way these FEMA maps are drawn. Insurance can run from around $300 to upwards of $2,000 per year and is normally required for Federal or federally related mortgage financing.
I have copied and scanned some of the literature the City of Camarillo distributed during 2006 in response to FEMA's new maps. I would be happy to email these to anyone with an interest in their property status.
The long and short of it all appears to be that if you live in one of the mapped areas, you would be well-advised to contact the City of Camarillo, FEMA and your home insurer to determine how each will treat your property. Contact information for City of Camarillo - Public Works Department Ph (805) 388-5340 or www.ci.camarillo.ca.us. FEMA - John Magnotti at (202) 646-3932 or john.magnotti@fema.gov or www.fema.gov/mit/tsd.
Warmest Regards,
Mark Thorngren
http://www.markthorngren.com & http://realtytimes.com/REUv/MarkThorngren
Monday, March 31, 2008
Senator Dianne Feinstein on Home Ownership Assistance
Dear Mr. Thorngren:
Thank you for contacting me regarding homeownership assistance programs. I appreciate the time you took to write and welcome the opportunity to respond.
The Federal Housing Administration (FHA) plays an important role in insuring home mortgages for those in underserved communities. It is critical that FHA programs be reformed to provide more homebuyers and borrowers looking to refinance with the opportunity to obtain an FHA loan. These opportunities are especially important in states, such as California, where the cost of housing is high. For homebuyers faced with jumbo loans subject to high interest rates, raising the government-sponsored enterprise (GSE) conforming loan limit will bring more liquidity to the market and lower monthly interest rate costs.
On February 13, 2008, the President signed the Economic Stimulus Act of 2008 (H.R. 5140) into law. I strongly supported the provision of this bill which temporarily increases the FHA loan limit and GSE conforming loan limit to 125 percent of an area's median home price, up to a maximum of $729,750. On February 5th, the U.S. Department of Housing and Urban Development published these revised limits for California. Please know that I will carefully monitor the FHA, Freddie Mac, and Fannie Mae as they implement these new loan limits. You may review the newly published FHA loan limits at http://www.HUD.gov. The GSE loan limits can be viewed at http://www.ofheo.gov.
You may be interested to know that conference negotiations to resolve the differences between the House-passed version of the FHA reform bill (H.R. 1852) and the Senate-passed version (S. 2338) are ongoing. These two bills would permanently increase the FHA loan limit, lower down payments, and increase the availability of FHA's reverse mortgage program, among other reforms. I understand that this issue is of major importance to Californians facing high home prices and the threat of losing their home to foreclosure. Please know that I will continue to do everything I can to help on this critical issue.
Once again, thank you for writing. I hope you will continue to keep me informed on issues of importance to you. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Thank you for contacting me regarding homeownership assistance programs. I appreciate the time you took to write and welcome the opportunity to respond.
The Federal Housing Administration (FHA) plays an important role in insuring home mortgages for those in underserved communities. It is critical that FHA programs be reformed to provide more homebuyers and borrowers looking to refinance with the opportunity to obtain an FHA loan. These opportunities are especially important in states, such as California, where the cost of housing is high. For homebuyers faced with jumbo loans subject to high interest rates, raising the government-sponsored enterprise (GSE) conforming loan limit will bring more liquidity to the market and lower monthly interest rate costs.
On February 13, 2008, the President signed the Economic Stimulus Act of 2008 (H.R. 5140) into law. I strongly supported the provision of this bill which temporarily increases the FHA loan limit and GSE conforming loan limit to 125 percent of an area's median home price, up to a maximum of $729,750. On February 5th, the U.S. Department of Housing and Urban Development published these revised limits for California. Please know that I will carefully monitor the FHA, Freddie Mac, and Fannie Mae as they implement these new loan limits. You may review the newly published FHA loan limits at http://www.HUD.gov. The GSE loan limits can be viewed at http://www.ofheo.gov.
You may be interested to know that conference negotiations to resolve the differences between the House-passed version of the FHA reform bill (H.R. 1852) and the Senate-passed version (S. 2338) are ongoing. These two bills would permanently increase the FHA loan limit, lower down payments, and increase the availability of FHA's reverse mortgage program, among other reforms. I understand that this issue is of major importance to Californians facing high home prices and the threat of losing their home to foreclosure. Please know that I will continue to do everything I can to help on this critical issue.
Once again, thank you for writing. I hope you will continue to keep me informed on issues of importance to you. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
Sincerely yours,
Dianne Feinstein
United States Senator
Further information about my position on issues of concern to California and the Nation are available at my website http://feinstein.senate.gov/public/. You can also receive electronic e-mail updates by subscribing to my e-mail list at http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup.
Tuesday, March 18, 2008
Subsidized Housing Programs in Ventura County
Many folks coming to Ventura County find the home buying process a daunting task. Without a good credit score, a large income or substantial down payment, things can be just plain tough. To tell the truth, there are many realtors and real estate consultants that have very little knowledge of what kind of help is available to these folks. Everyone seems to rely on lenders or mortgage brokers for knowledge of financial assistance programs. Most lenders have some kind of in-house programs or might even know a little bit about FHA and CAL-HFA programs. After that, knowledge of most home buyer assistance programs gets a little thin.
Last week I was browsing our local newspaper's real estate section and came across an article about the Area Housing Authority of the County of Ventura. I’ve heard of some of their programs before but had never found source material. I felt like a gold miner that had just stumbled across the mother lode. I downloaded 31 pages of their material and had to quit because I was using up all my printer's color cartridges. There is a very large amount of helpful information on their wonderful website. Check out http://www.ahacv.org/home_buyers_workshop.shtml.
This page will give you time, place and date for the next home buyer workshops. The following information is taken directly from the county website.
"The Area Housing Authority is committed to serving the community by being a resource for housing information. With the skyrocketing prices of homes in Ventura County, first-time home buyers are often overwhelmed with the decision of whether to buy a home here, continue renting, or move to a cheaper area.
Many new home buyers are unaware of State and local programs that help with down-payments, closing costs, and lower interest loans. Households with income between $55,000 and $113,000 may qualify for a variety of assistance programs.
The Area Housing Authority sponsors educational home buying workshops in English and Spanish several times throughout the year. The workshops are provided through a mutual agreement with experts in local, State and federal funding resources.Workshops cover tax benefits, raising your FICO score, and loan options for first-time buyers available through the state of California.
To find out more or to reserve a spot in an upcoming workshop, please call 1-800-549-0337, extension 167. Seating is limited at our workshops and we encourage you to reserve your place to ensure adequate seating. To speak with Housing Authority staff regarding a workshop, please call 805-480-9991, extension 235.For a schedule of upcoming workshops, please click here or go to http://www.ahahomebuyingschool.com/ ."
To find information on Housing Programs which include:
-Section 8
-Low Rent Public Housing
-Agency Owned/Managed Housing
-City Sponsored Rental Assistance
Click on http://www.ahacv.org/index.shtml & click again on the Housing Programs Tab (left side)
The Area Housing Authority of the County of Ventura serves the cities of Camarillo, Simi Valley, Moorpark, Thousand Oaks, Ojai, Fillmore and the unincorporated areas of Ventura County.
So what happens if you don’t live in one of those 7 areas?
Easy. Oxnard. Port Hueneme, Santa Paula and the City of San Buenaventura (Ventura) all have their own housing authorities which you can find contact information for at: http://www.ahacv.org/community_resources.shtml.
None of these programs are exactly the same, but most of them provide a degree of benefit and usually can be combined with FHA or CAL-HFA loan programs to provide most of your lending needs. The combination of programs is really remarkable help for first time buyers. By the way, the definition of a first time buyer is not what you might think. It can be someone who has not purchased a home for 3 years. Check with your lender and Housing Authority folks for details.
For those folks who are having a really difficult time just finding a place to lay their heads, there is some provision for them as well at: http://www.ahacv.org/emergency_housing.shtml
This is some really great information on local agencies that provide emergency housing assistance. Here is the basic info from that link.
"The Area Housing Authority does not provide emergency housing services. Please contact the agencies listed below for emergency housing information.
You may also call the 211 Help Line by dialing 2-1-1 from any land line phone (cell phone users, 800-339-9597. The 211 Help Line provides information about and referrals to health and human services, including emergency housing. The 211 Help Line is available 24 hours a day, 7 days a week, and multi-lingual service is available.
Homeless Information and Referral (County of Ventura, Human Services Agency)Phone:805-987-6715 or 805-484-2082Hours:M – F 8am to 4:30pmWebsite:http://www.vchsa.org/Ventura County Homeless and Housing Coalitions(temporary winter shelter locations)Website: http://www.vchhc.org/
Ojai Community Assistance Program (through HELP of Ojai)Phone:805-640-3320Hours:M – Th8:00am – 12:00pm and 1:00pm to 5:00pmFriday 8:00am – 12:00pm and 1:00pm to 4:00pm
Coalition to End Family ViolencePhone:805-983-601424-hr Hotline: 800-300-2181 or 805-56-1111Website:http://www.thecoalition.org/
RAIN Project Transitional Housing (County of Ventura)Phone:805-389-3308 (24-hrs)Address:1732 South Lewis Road, Camarillo
Community Action of Ventura County (Goldberg House)Phone:805-648-6088Address:946 E. Thompson Blvd., Ventura,Hours:M – Th: 8 am - 3:30 pmFriday: 8 am – 3:00 pm
Simi Valley Homeless PartnershipPhone:805-527-2533
Housing Reports and Necessary Documents http://www.ahacv.org/housing_reports_and_docs.shtml
Administrative Housing Plans and Documents
Admissions and Continued Occupancy Policy (ACOP)
Agency Owned Housing Plan
Section 8 Admin Plan
Organizational Emergency Plan
Public Housing Application
Instructions for Public Housing Application
Board of Commissioners
Current Board Agenda - Coming Soon
List of Commissioners
Data and Reports
Income Limits
Payment Standards
Utility Allowances
Overview of Assistance by Community
Detailed Summary of Assistance by Community
2007 What Can You Afford
Community Housing Programs - Coming Soon
Presentations
Myths of Affordable Housing Presentation (July 2007) - Coming Soon
If you do not have the Free Adobe PDF Reader, Click Here to get it.
March 21, 2007 Income Limits
Median Family income for a family of four is $79,500
There is a great deal more information available for renters, folks looking for the reduced price housing maintained by the various housing authorities and income limits to qualify. Some of these programs require you to use their approved lenders. Others allow you to shop for the best deal on your new home mortgage program costs. There is everything here you need to get started except a really good local mortgage broker to help steer you through this sea of information.
I can fix that. Call Aracely Avila (805) 504-0221 or email Aracely@YieldFinancial.com. Aracely once worked for the Oxnard Housing Authority and has more than 10 years experience helping your home ownership dreams to come true.
Of course you are welcome to contact me or browse my website for additional Chamber of Commerce websites, or the individual city websites and county information. http://www.markthorngren.com/.
Warmest Regards,
Mark Thorngren
Last week I was browsing our local newspaper's real estate section and came across an article about the Area Housing Authority of the County of Ventura. I’ve heard of some of their programs before but had never found source material. I felt like a gold miner that had just stumbled across the mother lode. I downloaded 31 pages of their material and had to quit because I was using up all my printer's color cartridges. There is a very large amount of helpful information on their wonderful website. Check out http://www.ahacv.org/home_buyers_workshop.shtml.
This page will give you time, place and date for the next home buyer workshops. The following information is taken directly from the county website.
"The Area Housing Authority is committed to serving the community by being a resource for housing information. With the skyrocketing prices of homes in Ventura County, first-time home buyers are often overwhelmed with the decision of whether to buy a home here, continue renting, or move to a cheaper area.
Many new home buyers are unaware of State and local programs that help with down-payments, closing costs, and lower interest loans. Households with income between $55,000 and $113,000 may qualify for a variety of assistance programs.
The Area Housing Authority sponsors educational home buying workshops in English and Spanish several times throughout the year. The workshops are provided through a mutual agreement with experts in local, State and federal funding resources.Workshops cover tax benefits, raising your FICO score, and loan options for first-time buyers available through the state of California.
To find out more or to reserve a spot in an upcoming workshop, please call 1-800-549-0337, extension 167. Seating is limited at our workshops and we encourage you to reserve your place to ensure adequate seating. To speak with Housing Authority staff regarding a workshop, please call 805-480-9991, extension 235.For a schedule of upcoming workshops, please click here or go to http://www.ahahomebuyingschool.com/ ."
To find information on Housing Programs which include:
-Section 8
-Low Rent Public Housing
-Agency Owned/Managed Housing
-City Sponsored Rental Assistance
Click on http://www.ahacv.org/index.shtml & click again on the Housing Programs Tab (left side)
The Area Housing Authority of the County of Ventura serves the cities of Camarillo, Simi Valley, Moorpark, Thousand Oaks, Ojai, Fillmore and the unincorporated areas of Ventura County.
So what happens if you don’t live in one of those 7 areas?
Easy. Oxnard. Port Hueneme, Santa Paula and the City of San Buenaventura (Ventura) all have their own housing authorities which you can find contact information for at: http://www.ahacv.org/community_resources.shtml.
None of these programs are exactly the same, but most of them provide a degree of benefit and usually can be combined with FHA or CAL-HFA loan programs to provide most of your lending needs. The combination of programs is really remarkable help for first time buyers. By the way, the definition of a first time buyer is not what you might think. It can be someone who has not purchased a home for 3 years. Check with your lender and Housing Authority folks for details.
For those folks who are having a really difficult time just finding a place to lay their heads, there is some provision for them as well at: http://www.ahacv.org/emergency_housing.shtml
This is some really great information on local agencies that provide emergency housing assistance. Here is the basic info from that link.
"The Area Housing Authority does not provide emergency housing services. Please contact the agencies listed below for emergency housing information.
You may also call the 211 Help Line by dialing 2-1-1 from any land line phone (cell phone users, 800-339-9597. The 211 Help Line provides information about and referrals to health and human services, including emergency housing. The 211 Help Line is available 24 hours a day, 7 days a week, and multi-lingual service is available.
Homeless Information and Referral (County of Ventura, Human Services Agency)Phone:805-987-6715 or 805-484-2082Hours:M – F 8am to 4:30pmWebsite:http://www.vchsa.org/Ventura County Homeless and Housing Coalitions(temporary winter shelter locations)Website: http://www.vchhc.org/
Ojai Community Assistance Program (through HELP of Ojai)Phone:805-640-3320Hours:M – Th8:00am – 12:00pm and 1:00pm to 5:00pmFriday 8:00am – 12:00pm and 1:00pm to 4:00pm
Coalition to End Family ViolencePhone:805-983-601424-hr Hotline: 800-300-2181 or 805-56-1111Website:http://www.thecoalition.org/
RAIN Project Transitional Housing (County of Ventura)Phone:805-389-3308 (24-hrs)Address:1732 South Lewis Road, Camarillo
Community Action of Ventura County (Goldberg House)Phone:805-648-6088Address:946 E. Thompson Blvd., Ventura,Hours:M – Th: 8 am - 3:30 pmFriday: 8 am – 3:00 pm
Simi Valley Homeless PartnershipPhone:805-527-2533
Housing Reports and Necessary Documents http://www.ahacv.org/housing_reports_and_docs.shtml
Administrative Housing Plans and Documents
Admissions and Continued Occupancy Policy (ACOP)
Agency Owned Housing Plan
Section 8 Admin Plan
Organizational Emergency Plan
Public Housing Application
Instructions for Public Housing Application
Board of Commissioners
Current Board Agenda - Coming Soon
List of Commissioners
Data and Reports
Income Limits
Payment Standards
Utility Allowances
Overview of Assistance by Community
Detailed Summary of Assistance by Community
2007 What Can You Afford
Community Housing Programs - Coming Soon
Presentations
Myths of Affordable Housing Presentation (July 2007) - Coming Soon
If you do not have the Free Adobe PDF Reader, Click Here to get it.
March 21, 2007 Income Limits
Median Family income for a family of four is $79,500
There is a great deal more information available for renters, folks looking for the reduced price housing maintained by the various housing authorities and income limits to qualify. Some of these programs require you to use their approved lenders. Others allow you to shop for the best deal on your new home mortgage program costs. There is everything here you need to get started except a really good local mortgage broker to help steer you through this sea of information.
I can fix that. Call Aracely Avila (805) 504-0221 or email Aracely@YieldFinancial.com. Aracely once worked for the Oxnard Housing Authority and has more than 10 years experience helping your home ownership dreams to come true.
Of course you are welcome to contact me or browse my website for additional Chamber of Commerce websites, or the individual city websites and county information. http://www.markthorngren.com/.
Warmest Regards,
Mark Thorngren
Lower Prime Rate vs Higher Mortgage Rates
Market Changes, Prime Rate Reductions vs Home Mortgage Rate Increases
There is a very defined difference now from the last six months that has made many of us optimistic for the year. I had many folks last year who wanted to wait with their purchase because of falling home prices, and many home sellers were still hanging tough with their prices. Obstinate sellers who have not kept up with the market, have continued to suffer from falling home prices and are now much easier to work with as they realize their predicament. Home Buyers I have been talking with over the last year or two are now calling me to make their initial consultations. I like that! That did not happen last year. That is another reason why I’m optimistic.
Last Fall, I had a large number of home sales that began escrow but did not finish because of mortgage changes during escrow, and seller’s not willing to compromise on terms. That is changing now. Mortgage programs are beginning to gel and lender standards are stabilizing from the free fall – here today, gone tomorrow – conditions that existed last Fall. Our buyer climate is much different this year and presents fewer fundamental changes. We have a much better chance to make it through each escrow this year.
The next challenge our industry faces will be how to reconcile falling interest rates from the Fed with rising home loan interest rates. Investors are worried about the bond market. As the Fed lowers it’s interest rates, the bond market suffers and mortgage investors in the secondary market raise their home mortgage interest rates. Home buyers will tend to save more money on their home purchases with a lower interest rate than on a modest home price decrease. We have seen interest rates fall in January, then turn around and move up steadily through February. Those rate changes will have a far bigger impact on buyers than a 7% to 10% decrease in home prices. Do the math on any home you care to pick and I’ll bet you see what I mean.
I think we need to carefully watch to see if the cost of mortgage loans continues to increase. If the Fed continues to cut the Prime Rate, the response from secondary investors & the bond market may be to raise the cost of home mortgage interest rates. It is possible that rising home loan interest rates could more than offset falling home prices. Home buyers may pay less and have more to choose from if they buy now.
Sellers will most likely continue to experience an eroding of home prices, with stiff competition from bank foreclosures until the number of foreclosures falls in a year or two.
Just the way I see it today.
Warmest Regards,
Mark Thorngren
htttp://www.markthorngren.com
There is a very defined difference now from the last six months that has made many of us optimistic for the year. I had many folks last year who wanted to wait with their purchase because of falling home prices, and many home sellers were still hanging tough with their prices. Obstinate sellers who have not kept up with the market, have continued to suffer from falling home prices and are now much easier to work with as they realize their predicament. Home Buyers I have been talking with over the last year or two are now calling me to make their initial consultations. I like that! That did not happen last year. That is another reason why I’m optimistic.
Last Fall, I had a large number of home sales that began escrow but did not finish because of mortgage changes during escrow, and seller’s not willing to compromise on terms. That is changing now. Mortgage programs are beginning to gel and lender standards are stabilizing from the free fall – here today, gone tomorrow – conditions that existed last Fall. Our buyer climate is much different this year and presents fewer fundamental changes. We have a much better chance to make it through each escrow this year.
The next challenge our industry faces will be how to reconcile falling interest rates from the Fed with rising home loan interest rates. Investors are worried about the bond market. As the Fed lowers it’s interest rates, the bond market suffers and mortgage investors in the secondary market raise their home mortgage interest rates. Home buyers will tend to save more money on their home purchases with a lower interest rate than on a modest home price decrease. We have seen interest rates fall in January, then turn around and move up steadily through February. Those rate changes will have a far bigger impact on buyers than a 7% to 10% decrease in home prices. Do the math on any home you care to pick and I’ll bet you see what I mean.
I think we need to carefully watch to see if the cost of mortgage loans continues to increase. If the Fed continues to cut the Prime Rate, the response from secondary investors & the bond market may be to raise the cost of home mortgage interest rates. It is possible that rising home loan interest rates could more than offset falling home prices. Home buyers may pay less and have more to choose from if they buy now.
Sellers will most likely continue to experience an eroding of home prices, with stiff competition from bank foreclosures until the number of foreclosures falls in a year or two.
Just the way I see it today.
Warmest Regards,
Mark Thorngren
htttp://www.markthorngren.com
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