Week of October 6, 2008
Towns anticipate budget shortfalls
By FREDA R. SAVANA, The Intelligencer
The burst of the housing bubble hasn't just decimated the stock market — it's put a few holes in municipal budgets, too.
Several communities across the area are anticipating shortfalls they attribute to nearly nonexistent housing sales and an overall slowdown in development.
In Solebury, the $14.7 million budget has a deficit that could reach some $500,000, said Manager John Granger.
“It surprised me,” he said recently. Although aware the township was susceptible to the housing slump, Granger said he didn't anticipate the “depth of it.”
The real estate transfer tax, money generated when properties are bought and sold, brought in $800,000 in 2007. Anticipating some decline, this year the township had budgeted revenue from that tax at $700,000 but now expects to see closer to $500,000.
On the House: Builder, buyer, lender, law
By Al Heavens, Inquirer Real Estate Columnist
It's time to get technical, only because it will explain something the federal government wants to do, and why it's riling home builders.
I'll start by explaining RESPA, the Real Estate Settlement Procedures Act of 1974. RESPA was the government's effort to protect consumers by regulating the disclosure of all costs and business arrangements in the settlement process.
Though it has been tinkered with over the last 34 years, to clarify the definition of "business arrangements" as the industry evolved, RESPA is stuck in a time warp.
The law is enforced (or ignored) by the Department of Housing and Urban Development. Every time a new HUD secretary takes office, he or she promises to reform RESPA. When the reforms are proposed, the real estate, home building and lending industries all raise objections to just about everything - even though they also oppose the status quo - and we end up with, substantially, the Real Estate Settlement Procedures Act of 1974.
Before we disclose whom HUD is riling these days, we need to mention that megabuilders and real estate giants don't make much money on the plain-vanilla home sale, even when sales volume reaches boom levels. They make their money from ancillary businesses - primarily mortgages and title insurance.
Pa. lawmakers may act on power rates this week
The Associated Press
Pennsylvania lawmakers are heading into the end of their two-year session with a number of prominent items still on the table.
Among the issues they could move on this week are efforts to lessen the effect of electricity deregulation on consumers and major revisions to the state's dog law.
They're also considering changes to the wiretapping law and might take action on health care bills.
The Senate doesn't plan to return to session after this week, and the House's next session days are scheduled for after the Nov. 4 election.
Pa. lawmakers crack down on metal sales
Associated Press
The Pennsylvania legislature has approved a bill that would attempt to crack down on the theft of cars, manhole covers and other metal items to be sold for scrap.
The bill passed the House, 195-2, and is headed to Gov. Rendell.
Recyclers and processors are doing brisk business with metal prices skyrocketing because of demand in developing countries and a tight economy here.
Under the bill, scrap-metal dealers would have to keep records identifying people who sell them more than $100 worth of scrap.
In addition, they could buy certain items, such as new construction materials and beer kegs, only from businesses or government agencies, not individual people.
Revolution Center approved for Valley Forge
By Jeff Gammage, Philadelphia Inquirer
The Lower Providence zoning board voted last night to deny an appeal filed by several homeowners and a conservation group, thus allowing the American Revolution Center to proceed with a controversial plan to build a museum complex on private land in Valley Forge National Historical Park.
"Ah, gosh," one person in the crowd of about 60 gasped as the votes fell.
The decision came in the form of three separate votes, after closing arguments in a hearing that started in July and that at times seemed to go on longer than the Revolutionary War itself.
The board voted, 3-2, that the appellants had standing to bring their appeal. It voted, 4-1, against the appellants' claim that the ordinance allowing construction constituted spot zoning, illegal in Pennsylvania. And it voted, 5-0, to deny the claim that the ordinance preempted the ability of the National Park Service to manage the park.
Law passes requiring contractors to register
By John Anastasi, Bucks County Courier Times
A bill designed to protect consumers by requiring home improvement contractors to register with the state is heading to Gov. Ed Rendell's desk.
The state House followed the Senate's lead Wednesday afternoon and passed the Home Improvement Consumer Protection Act on the last voting day before a monthlong recess.
State Sen. Tommy Tomlinson, R-6, who introduced the measure, said he was thrilled to see it sent to the governor before the end of the session.
“The sooner this law is enacted, the sooner we can start putting in place tougher guidelines and provide more information for consumers who are making home repairs,” Tomlinson said in a statement.
