Roger just completed the rigorous Certified Distressed Property course which is  designed to  train Realtors in  the complexities of short sales. The goal is to help distressed property owners avoid foreclosure or to stay in their homes.

Frequently Asked Questions

The one reality about today’s housing market is that many people have more questions than answers. The following information is intended to help you or someone you know better understand your situation.

Do I qualify for a short sale?

The qualifications for a short sale include any or all of the following:

1. Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2. Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3. Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

What is a mortgage modification?

A mortgage modification is a process through which your mortgage lender changes any or all of the following:

• Your interest rate
• Your principal balance (through a reduction)
• Your loan terms (example: from an adjustable to a fixed rate)

This process can allow borrowers to stay in their property when they can no longer afford their current mortgage payments.

Why would a lender modify my mortgage?

Lenders have realized that in some cases it is better for them to work with current borrowers to lower payments or possibly improve terms in order to keep homeowners in their properties. The average foreclosure can cost a lender from 35-50% of the value of a property, so keeping borrowers in their homes is a good option for everyone.

What do I need to qualify for a mortgage modification?

According to the Making Home Affordable Web site (www.MakingHomeAffordable.gov), you will need the following information for your lender to consider a modification:

• Information about your first mortgage, such as your monthly mortgage statement
• Information about any second mortgage or home equity line of credit on the house
• Account balances and minimum monthly payments due on all of your credit cards
• Account balances and monthly payments on all your other debts such as student loans and car loans
• Your most recent income tax return
• Information about your savings and other assets
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources

If applicable, it may also be helpful to have a letter describing any circumstances that caused your income reduce or expenses to increase (job loss, divorce, illness, etc.)

How do I qualify for a mortgage modification?

The first call you make should be to your lender, have the information above ready to discuss with them and call your customer service line to ask them what options you have available. If the person you speak with does not understand what you are asking, you can ask to be referred to one of the following departments (different lenders have different names for these departments):

• Loss Mitigation
• Mortgage Modification
• H.O.P.E.

Prior to contacting your mortgage lender you can quickly complete an eligibility test at www.MakingHomeAffordable.gov. This test will let you know if you are eligible for a modification through the government-sponsored Home Affordability and Stability Program (HASP). For a list of mortgage lenders and servicers, visit www.HopeNow.org.

What is a Home Affordable Refinance?

If Fannie Mae or Freddie Mac owns your mortgage, you may be eligible for a Home Affordable Refinance. This will allow you to refinance your home and often lower your payments.

What if I don’t qualify, can’t afford my home, and owe more than it’s worth?

You are not alone and foreclosure is not the only option. If your mortgage lender or servicer will not work with you to reduce your payment, you may want to consider a short sale. Agents with the Certified Distressed Property Expert® Designation have undergone extensive training in how to process and negotiate short sales. A short sale allows you to sell your home for less than what you owe and avoid foreclosure. Speak to your market expert to see if you may qualify.

What are the qualifications for a Home Affordable Refinance?

According to the resources released by the government, following are a list of qualifications:

• You are the owner occupant of a one- to four-unit home
• The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
• At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
• You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
• You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

1. Who is eligible to claim the $6,500 tax credit?
2. What is the definition of a move-up or repeat home buyer?
3. How is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. What is “modified adjusted gross income”?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?
9. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
10. What types of homes will qualify for the tax credit?
11. I read that the tax credit is “refundable.” What does that mean?
12. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
14. I am not a U.S. citizen. Can I claim the tax credit?
15. Is a tax credit the same as a tax deduction?
16. Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?
17. HUD allows “monetization” of the tax credit. What does that mean?
18. If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?
19. For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?

1. Who is eligible to claim the $6,500 tax credit? Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
2. What is the definition of a move-up or repeat home buyer? The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
3. How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
4. Are there any income limits for claiming the tax credit? Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
5. What is “modified adjusted gross income”? Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains. To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit? Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.
7. Can you give me an example of how the partial tax credit is determined? Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $6,500 by 0.5. The result is $3,250. Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275. Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009? The previous tax credits applied only to first-time home buyers and were for different amounts of money.
9. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements? You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
10. What types of homes will qualify for the tax credit? Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences. It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. Also see IRS Form 5405.
11. I read that the tax credit is “refundable.” What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).
12. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit? Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010). In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS Form 5405.
13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? Yes. The tax credit can be combined with an MRB home buyer program.
14. I am not a U.S. citizen. Can I claim the tax credit? Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
15. Is a tax credit the same as a tax deduction? No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.
16. Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return? Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust the withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties. In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit. The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
17. HUD allows “monetization” of the tax credit. What does that mean? It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses. Under the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages. Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement. In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes. More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
18. If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return? Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount. Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
19. For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest? Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.

3 new, sustainably designed homes built in the city by “Green” Home builders and architects are selling soon. I am happy to report that I have found purchasers for homes in RiverBluff,  Rivers Edge and Belmont Residences of Druid Avenue (all in the City limits). All these  homes are in the $450,000 to $550,000 price range and are excellent examples of Earthcraft certified quality or better. The Druid avenue home has been built to American Lung Association,  Healthy Home Standards.  As the homes close, more information will be available  to the public.

I recently completed three continuing education courses. 1. The bi-annual real estate brokers license course comprising 24 hours of fair housing, marketing, legal and environmental issues. 2. Built in Photo voltaics and 3. Green Walls.  The last two courses were from the Architects Institute.

SERIOUSLY GREEN ! FUTURE ATTENDEES, REGISTER HERE….ATTENDANCE IS LIMITED: …The Seminar for the SERIOUS individual wishing to buy or build an Environmentally-Sophisticated home in the next 12 months. Meet and hear the local experts in this field building healthy homes every day for the Charlottesville community. A few of the speakers will be: Richard Price – Architect-sustainable design. Bob Pineo – Architect- construction management and pricing. Google SketchUp Modeling. Mike Kelly – Earthcraft homes-specifications and detailing. Roger Voisinet – Sustainable  value in your new Green home and solar tax credis. Tom Kavounas – Thermal imaging and indoor air quality. John Semmelhack – Home energy testing and passive solar. Sally Fretwell – Non-VOC paints and color choices for health. Jeff Hainsworth and Tracie Skipper, PELLA Windows and Doors. Many free door prizes for professional services AND a mystery open house at one of the Woolen Mills Green homes. REGISTER HERE….ATTENDANCE IS LIMITED: …or call Roger Voisinet at RE/MAX Realty Specialists at 974-1500. Date: April 19th   1 to 3pm Location: 6 Rivers Edge Directions: corner of Riverside and Chesapeake adjacent to the Riverside Park

featured on NBC Ch 29TV: story here

Sustainable Home: Solar Incentives – Featured Special Sections – EDC Magazine Technological advances make solar energy more alluring for homebuilders and electrical contractors. Despite the effects the struggling economy has had on new home construction, interest in supplementing residential power with solar energy is growing. The primary driver is economic. In the United States, for example, state and federal capital rebates help a homeowner ease the cost of installing a photovoltaic system. In Canada, feed-in tariffs mean utilities purchase solar energy from an individual homeowner at a higher rate than the homeowner would pay for grid electricity, which provides an incentive for homeowners to install photovoltaic systems. Additionally, the cost of a photovoltaic system is dropping. According to USA Today, the cost of a rooftop array, including installation, is expected to fall as much as 20 percent in 2009, which is in addition to the substantial drop that already occurred in autumn 2008. Another factor is that the housing slump means new homeowners are more likely to remain in their homes for a longer period, thus increasing the return on their investment in a photovoltaic system. But interest in solar power is also being spurred by advances in electrical distribution technologies that allow a homeowner to proactively plan for the future installation of a photovoltaic system. For example, a combination service entrance device features spaces for components necessary to distribute solar energy throughout a home, but it can operate like a common residential load center until those components are installed. Once a photovoltaic system is in place, communications gateways help a homeowner track the amount of solar power being generated. They can play a key role in helping homeowners “net zero” their energy use — meaning that, in a calendar year, the solar power produced and used is equal to or greater than the home’s grid power usage. These technological advances coupled with the many economic incentives make solar energy a more alluring opportunity for electrical contractors and homebuilders alike. Though 90 percent of residential photovoltaic system installations are on existing homes, that trend could be shifting. Some housing developments are demanding that a certain percentage of new homes be solar-ready, while many homebuilders are using solar energy as a market differentiator. “You need to know how to sell solar,” says Neal Pavletich, who co-owns electrical contracting firm Star Electric in Bakersfield, Calif., with his son Mark. “You have to instill confidence in the customer that what you propose is good for them now, next year and in the future.” Economics vs. Technology While a photovoltaic system can create substantial energy savings for homeowners, a typical 3,000- to 5,000-watt system can cost a homeowner tens of thousands of dollars. However, U.S. federal and state capital rebates help reduce that cash outlay. For example, the California Solar Initiative offers residential solar rebates in two formats: One based on actual energy output by the photovoltaic system; the other is based on expected performance, where an upfront lump sum is paid to the homeowner by the state based on factors like equipment ratings and geographic location. From a federal standpoint, the Energy Improvement and Extension Act of 2008 (a component of the Emergency Economic Stabilization Act of 2008 that was passed in October 2008) extended until 2016 a 30-percent-investment tax credit for residential solar installations and eliminated a $2,000 tax-credit cap. For more information, visit www.gosolarcalifornia.ca.gov. But legislation and rebates are a moot point without the technology to facilitate the use of solar energy in a home. In a typical photovoltaic array, solar panels (located either on the roof of a home or the ground nearby) capture the sun’s rays. A solar inverter, located in its own enclosure, subsequently converts the rays from DC to AC power and delivers it to the home’s utility feed. If there is a power outage, the inverter must disconnect from the utility to avoid backfeeding the power grid, which is a key safety issue. Some inverters can interconnect to a battery system so solar energy can be stored and used to power critical loads during an outage. Once DC power has been converted to AC, it is routed through a back-fed circuit breaker contained within the home’s combination service entrance device and ultimately supplements utility power. Current transformers, also located at the combination service entrance device, monitor the home’s electrical system providing information to the photovoltaic system’s metering mechanism so the homeowner can quickly ascertain how much solar power is being generated by the array. Due to the high cost of a photovoltaic system, some homebuilders are opting to proactively install a combination service entrance device and do as much pre-wiring as possible well in advance of installing a photovoltaic system. For example, the Square D Combination Service Entrance Device has space for a back-fed circuit breaker and a current transformer mounting for monitoring equipment; these areas can remain unused until the inverter and photovoltaic array are installed. Being proactive regarding solar is a key message electrical contractors and homebuilders should deliver to their homeowner customers due to economics, Mark Pavletich says. “At the time you put in the array — when you pull all your wires from the array to the inverter — you’re saving money because all the pre-wiring and conduit has been done,” he says. The energy and cost savings a photovoltaic array generates can be substantial. A 3,000-watt system, for example, can reduce a typical homeowner’s electric bill by roughly $50 to $60 per month allowing for variations based on utility rates among other factors. But knowing how much energy a photovoltaic system is generating is only half of the equation — managing that energy is the other half. That’s why a communications gateway is so important. A communications gateway, like the Xantrex Communications Gateway from Xantrex Technology Inc., for example, is a small device (6 inches by 4 inches) mounted indoors or in an enclosure outdoors. It’s connected to the photovoltaic system’s inverter using Cat-5 cable and to the home’s wireless network using its built-in Wi-Fi capability. A software application on the home’s personal computer communicates with the gateway via the wireless network to provide the homeowner critical system data such as: * How much power the photovoltaic system is generating; * Daily, weekly, monthly and even lifetime power generation trending; * Energy cost savings; * Greenhouse gases saved (e.g., carbon dioxide); and * Progress toward return on investment for the entire system. The availability of this data can also suggest courses of action for the homeowner such as augmenting the photovoltaic system with more solar panels to increase the amount of solar energy accrued in order to achieve net-zero energy usage. Of course, augmenting the system can translate to lower monthly electric bills and possibly a faster return on investment for the entire system. Seizing the opportunity Solar energy may be a great opportunity for electrical contractors and homebuilders, but there is a learning curve — particularly with regard to recent technological advances like combination service entrance devices and communications gateways. There are many ways to gather information about these technologies, from conferences and trade shows to the Internet to contacting trusted suppliers of electrical distribution equipment. The next step is to seek opportunities to apply this knowledge. “We hope that we can up-sell this equipment to our homebuilders to give homeowners the option of putting in a photovoltaic system when they buy,” Mark Pavletich says. “If people can come in and view the system in a model home, it will make sense to them.”

President Signs Economic Recovery Bill with Billions for Green Building, Energy Efficiency Following weeks of negotiations in Congress and the Administration, and in the face of continuing job losses nationwide, President Obama signed into law on Tuesday a $787 billion economic recovery plan designed to put millions of Americans back to work. Emphasizing investment in projects that can be deployed quickly and create jobs, the American Recovery and Reinvestment Act of 2009 includes billions of dollars that may be used for green building, retrofitting, energy efficiency and renewable energy projects, including those in federal facilities; states, localities, and tribal areas; schools; and housing. Energy efficiency in existing buildings can generate $160 billion in savings by 2030, according to a report by McKinsey and Co. The American Recovery and Reinvestment Act takes critical steps to this end through significant investment in green building and energy efficiency. Commitment from policymakers, citizens, and practitioners nationwide will be required to ensure that the immense potential of green building to reinvigorate and transform both our economy and our environment is realized. Select Highlights of the American Recovery and Reinvestment Act of 2009 * Green Schools: The new law includes a $53.6 billion State Fiscal Stabilization Fund, to be administered by the federal Department of Education that will provide, among other things, funds to governors for use in restoring and providing state funding to school districts. Roughly $9 billion of this fund will be available for use by governors to address public safety and other government services, which may include school modernization, renovation, and repair consistent with a recognized green building rating system. Additionally, the Act establishes a new kind of tax credit bond that may be issued by states and local governments “for the construction, rehabilitation, or repair of a public school facility or for the acquisition of land on which such a facility is to be constructed.” * Green Federal Facilities: The law provides $5.55 billion to the federal General Services Administration (GSA) for federal buildings, including $4.5 billion for measures to make GSA facilities “high-performance green buildings,” as defined by the 2007 energy law. The law also requires that $4 million of funds provided be directed for GSA’s Office of Federal High-Performance Green Buildings, which was created by the 2007 energy law. The Act also provides several billion dollars for facility-related construction, renovation, and repair projects in other federal agencies, including the Department of Defense. * Home Weatherization: The Act provides $5 billion for the federal Weatherization Assistance Program, which provides assistance to low-income families in weatherizing and improving the energy efficiency of their homes. To broaden the program’s reach, the Act increases the income levels covered by the program (from 150% of the federal poverty level to 200%) and the amount of assistance available for each housing unit (from $2,500 to $6,500). The Act also increases the percentage of funding that may be used for training and technical assistance (from 10% to up to 20%). * Energy Efficiency in States and Localities: The Act provides $3.2 billion for the Energy Efficiency and Conservation Block Grant program, which was established by the 2007 energy law to provide support to states, localities, and tribal governments for energy efficiency and conservation programs and projects. Under the Act, $2.8 billion will be distributed by formula, and $400 million will be administered through competitive grants. * Public Housing: The Act provides $4 billion for the Public Housing Capital Fund, which provides funds to public housing agencies nationwide for the development, funding, and modernization of public housing developments. Under the Act, $3 billion of the funds will be distributed by formula, and $1 billion will be made available as competitive grants “for priority investments, including investments that leverage private sector funding or financing for renovations and energy conservation retrofit investments.” * Retrofitting Assisted Housing: The Act provides $2.25 billion for federally-assisted housing, of which $2 billion is for payments to owners of certain project-based rental housing, and $250 million is for funding of green and energy retrofitting investments in assisted housing. * Green Jobs: The Act provides $3.95 billion for training and employment services under the Workforce Investment Act, including $500 million “for research, labor exchange and job training projects to prepare workers for careers in energy efficiency and renewable energy industries.” Additionally, the bill provides $250 million for building, rehabilitating, and acquiring Job Corps Centers, of which up to 15% ($37.5 million) may be directed “to meet the operational needs of such centers, which may include training for careers in the energy efficiency, renewable energy, and environmental protection industries.” * Tax Incentives for Energy Efficiency and Renewable Energy: o Energy-Efficient Existing Homes: Existing federal law provides an individual tax credit of 10% of expenses for certain energy-efficient improvements to existing homes. Previously, the tax credit offered specific, capped amounts for qualified property. Under the bill, the amount of the credit has been raised to 30% for 2009 and 2010, and these technology-specific caps have been lifted and replaced with a $1,500 total cap on installations that may qualify for credit. Referenced efficiency levels have also been updated. o Renewable Energy Production Tax Credit: The bill extends the production tax credit for wind facilities by three years to 2013, and for solar, biomass, geothermal, landfill gas, trash combustion, hydropower, and marine and hydrokinetic to 2014. o Temporary Election of Investment Tax Credit: Recognizing the uncertainty of investor tax liability owing to the economic downturn, the new law temporarily permits eligible taxpayers to elect the investment tax credit instead of the tax credit for production of renewable energy for facilities placed in service after December 31, 2008. Additionally, the bill modifies the existing investment tax credit to eliminate the dollar caps for solar, geothermal, and small wind property. o Treasury Grants for Energy Investment: Acknowledging the decreased effectiveness of energy tax credits due to the economic downturn, the law permits taxpayers to apply for grants from the Treasury Department in lieu of certain renewable energy investment tax credits. o Advanced Energy Investment Tax Credit: The law creates a new 30% tax credit-to be awarded through a competitive process–for investment in facilities that manufacture “advanced energy property,” for example, technologies for producing renewable energy, conserving energy, transmitting renewable energy, and reducing greenhouse gas emissions, among other purposes determined by the Secretary. o Among other incentives, the bill provides increased authorizations for clean renewable energy bonds (increased by $1.6 billion) and qualified energy conservation bonds (from 800M to $3.2 billion). For a complete summary of the law, please visit: http://appropriations.house.gov/pdf/PressSummary02-13-09.pdf U.S. Green Building Council

New homebuyers to get $8,000 cash back – Feb. 16, 2009 First-time purchasers get a tax credit windfall if they buy before December. There’s a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama’s signature on Tuesday. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes. A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill – the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns – was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking: “I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?” Not exactly. Billings won’t get $8,000 on top of his current refund, but he would turn that small refund into a much larger one. If his total tax liability came to $6,000, but he had $7,000 withheld from his payroll, he would normally receive a $1,000 refund. With this credit, his refund would total $8,000. If the credit were non-refundable, as was originally proposed in the Senate version of the stimulus package, he would have only received $6,000, or the total amount he paid in. To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit. Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.) Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit. Lukewarm reception The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate’s proposal of a $15,000 non-refundable credit for all homebuyers. “[The Senate version] would have done a lot more to turn around the housing market,” said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). “We have a lot of reports of people who would be coming off the fence because of it.” Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors. The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. “I think there are many homeowners who would be trading-up but they have had no buyers for their own homes,” Yun said. Who won’t benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle – they still have to close the sale before claiming the bonus. Instead, many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added. And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home – a lawnmower, a rug, a sofa – and, in that way, help stimulate the economy. To top of page

NBC29-Va. Senate Backs Green Energy Incentive Program Va. Senate Backs Green Energy Incentive Program State lawmakers might expand a proposal brought to them by Charlottesville to cover clean energy support programs across the entire state. Before the start of the legislative session, Charlottesville came to lawmakers with a request: Help us start a green energy incentive program. State Sen. Creigh Deeds D-25th District drafted the bill. “No sooner had it been introduced that Albemarle County indicated that they were interested in it as well, and then Arlington County said ‘Hey, we want to be part of that bill too,”‘ Deeds said. Lawmakers expanded the measure to apply to any interested city or county. Monday the Senate voted 38-1 in favor of the bill. “It’s just really is encouraging to see so many people jump on this in the way that they have,” Deeds said in an interview after the vote. The bill allows local governments to start programs to provide incentives to people who use solar, wind or geothermal energy in their homes or businesses. It includes both new construction and renovation. Lawmakers say it’s a bold new option for communities. “Some of the problems with state laws is it doesn’t allow localities to be innovative and creative in how we address our problems,” said Del. David Toscano D-57th District, the bill’s co-patron. Deeds said the program changes that, “This can be a real incentive to produce energy efficiency and cost savings in every community.” People at the State Capitol say it’s no surprise a measure like this came from Charlottesville’s City Hall. “Our region always wants to be on the cutting edge, and energy is a very hot item right now,” Toscano said. The bill now heads to the House of Delegates, where it’s likely to receive significant support, especially because it uses local dollars — and not state money — for the incentives