Tuesday, October 7, 2008

“New Tools for Financing Affordable Housing pursuant to the Housing and Economic Recovery Act of 2008”

An important Event from the CHAPA Calendar:

The Real Estate Bar Association’s Affordable Housing Committee is pleased to invite you to attend a panel discussion regarding “New Tools for Financing Affordable Housing pursuant to the Housing and Economic Recovery Act of 2008”. Our guest speakers will be Maureen Flynn, Special Counsel in the Executive Office of Housing and Economic Development, Consumer Affairs Division, and Joseph Flatley, President and CEO, and Bruce Ehrlich, Investment Officer, at the Massachusetts Housing Investment Corporation (MHIC).

The new Federal Housing Legislation, signed into law on July 31, 2008, substantially reformed prior housing finance processes and programs,including establishing a new regulator for Fannie Mae and Freddie Mac, funding a federal Affordable Housing Trust Fund (with projected funding of over $280 million in 2010), and creating a $3.9 billion Neighborhood Stabilization Grant Fund. Our panelists will share their perspectives from the public and private sectors on housing finance reform and how these changes will impact on structuring and financing affordable housing transactions in 2008 and beyond.

Location:

Rackemann, Sawyer & Brewster, P.C.
160 Federal Street, 15th Floor,
Boston.

Additional Information:

Interested attendees should contact Kurt James at (617) 951-1154 or kjames@rackemann.com to RSVP for this meeting. A complimentary lunch will be served. If you are interested in learning more about REBA, or becoming a REBA member, you may contact REBA at (617) 854-7555 or visit REBA on line at www.reba.net.

Sunday, October 5, 2008

First Time Home Buyers Return

Massachusetts has not escaped this down real estate market unscathed. In the first eight months of 2008, the median sale price for single-family homes was down nine percent from the same time last year. It's clear that this might be an opportune time for first time home buyers in some Bay State housing markets. The median sale price in Hyannis, for example, is down by over an enormous 40%. The foreclosure crisis has hit Hyannis like a Category 4 hurricane. With the declining housing market and increasing affordability, first time buyers are coming to Hyannis.

Utility, mortgage insurance, and homeowners insurance costs have increased substantially in last 12 months. Buyers are looking for any way to save on associated homeowner costs. The first time home buyer tax credit, recently passed under the Housing and Economic Recovery Act of 2008, should offer some assistance to buyers. However, don't get too excited over the phrase "tax credit". This credit is a 15-year interest-free loan payable yearly beginning two years after you claim the credit. The maximum allowed is $7,500 for a couple. Every year for 15 years, you'll be asked for $500 extra bucks on top of what you might already owe on your Federal tax return. This payment structure might present a problem for some buyers who struggle pay the government each April 15th. But, to first time home buyers who are accustomed to predictable tax refunds this might be welcome relief.