I received a very informative newsletter from my accountant's office today, and I thought I would pick out a few highlights of the AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 a.k.a - the Bail Out.

Personally, I was a bit surprised and I have to admit, impressed, with some of the credits that have been increased or extended for both, individuals and businesses.

Here are a few of the highlights that are beneficial (hopefully) to current and future homeowners:

First-Time Homebuyer Tax Credit

The First-Time Homebuyer Tax Credit increases to a maximum of $8,000, eliminating any payback after living in the home 36 months. This will apply to first-time homebuyer purchases of a principal residence from January 1, 2009 through December 31, 2009.

The credit begins to phase-out when AGI exceeds $75,000 ($150,000 for joint filers).

This applies only to homes purchased after December 31, 2008. Homes purchased earlier than 2009 will be governed by the original first-time homebuyer credit with full payback with a maximum credit of $7,500.

Residential Energy Property Credit - This is great for those looking to improve their current homes, or for those who are purchasing a bit of a fixer-upper:

The agreement increases the residential energy property tax credit from 10% to 30%, and raises the maximum cap to an aggregate of $1,500 for installations during 2009 and 2010. If you made qualifying improvement in 2009 - keep track of this!

Eligible improvements include

• insulation,
  
• exterior windows and doors,
  
• central air conditioners,
  
• natural gas, propane or oil water heaters or furnaces,
  
• hot water boilers,
  
• electric heat pumps & water heaters,
  
• metal roofs,
  
• and advanced main air circulating fans.
  

Pre-2008 credits are not counted toward the $1,500 maximum.

Residential Energy Efficient Property Credit - GO GREEN, IT PAYS OFF!

The credit cap is removed for residential energy efficient solar hot water property, geothermal heat pumps, and wind energy property!

FOR BUSINESSES WHO ARE LOOKING TO EXPAND AND BUILD NEW OPERATIONS - CONSIDER A "KOZ":

SALES AND USE TAX EXEMPTION FOR KEYSTONE OPPORTUNITY ZONE BUSINESSES

Pennsylvania has expanded the sales and use tax exemption for businesses constructing in a Keystone Opportunity Zone. According to Pennsylvania Senate Bill 1412, a business may purchase services or tangible personal property, other than motor vehicles, exempt from sales and use tax if these items are purchased for the exclusive use, consumption, or utilization at a facility located within a Keystone Opportunity Zone (KOZ) or a Keystone Opportunity Expansion Zone (KOEZ).

In June 2008, the Pennsylvania Senate signed an amended Senate Bill 1412 to include certain purchases of services or tangible personal property by construction contractors for use in a construction contract with a qualified KOZ business, landowner, or lessee. However, this bill was not effective until September 2008. In order for a qualified contractor to take advantage of this exemption, the construction contract with the eligible KOZ business, landowner, or lessee must be dated on or after September 8, 2008. This expansion of the sales and use tax exemption will apply to any qualified purchases made by a general contractor or subcontractor.

Keystone Opportunity Zones and Keystone Opportunity Expansion Zones are selected underdeveloped and underutilized commercial or industrial properties which provide little to no tax burden to businesses who develop in those areas. These zones were enacted to help promote economic growth and development in those selected areas. There are currently 12 Keystone Opportunity Zones located in Pennsylvania.

--------------------

For more information on Lancaster PA Real Estate, or questions
about buying or selling a home in Lancaster County PA,
please contact
Jeannie Kontis at (717) 330-5137
or email at Jeannie@JeannieSellsLancaster.com.

Search for Lancaster Homes for Sale at www.JeannieSellsLancaster.com

Jeannie Kontis, RealtorⓇ, is a member of the award-winning Bob Wells Realty Group of Long & Foster Lancaster Real Estate, Inc, and serves buyers and sellers of real estate throughout Lancaster County.

It's almost Valentine's Day!  Is your heart big enough for two?

Having two doggies that are so used to each other, and don't do well when they are separated, I know what the situation below is like.  My two will cry and bark and search for each other if they are separated. 

The Humane League of Lancaster County recently received not one, but TWO sets of co-dependant dogs.  Each of these surrenders was because their family could no longer afford to take care of them ~ another pitfall of today's economic stress.

If you are looking for a dog ~ please consider taking in one of these pairs.  They must be adopted together, as they have lived together all of their lives.  They are older dogs, ideal for someone who does not have the patience or time to housebreak or entertain a young puppy.  They will be ideal companions. 

What's the bonus besides unconditional love from a furry friend?  The Humane League is waiving their adoption fee for these pairs of dogs.  What a sweetheart of a deal!

By the end of the year, folks driving to the Lancaster Airport might be saying:

"Look, it's a bird! It's a plane! No... its the new Garber Scale and Calibration building!"

Manheim Township commissioners this week approved plans for the new $3.5 million multi-use facility that Garber Scale plans on building on Airport Road.

Why is this a big deal?

It shows that forward-thinking businesses are still pushing ahead in this economy. It also is a great example of how new construction, even in commercial and industrial zones such as this, can be environmentally friendly while taking advantage of the best use of land.

Garber Scale's new facility will include environmentally-friendly features such as:

• geothermal heating,
  
• waterless urinals (not really sure how that works!)
  
• a white roof and
  
• office space filled with natural light,
  
• as well as additional other green features.

A portion of the building will include self-storage facilities for rent, as well as additional office space for lease.

Employees will enjoy the roof-top views from the verandas, a perfect spot to watch the take-offs and landings from the nearby airport, or can use the employee exercise room and lounge.

While other firms are looking at layoffs and are closing facilities, it's exciting to see a local company include environmentally friendly features as they grown their business outlook.

This is directly from the NAR Realtor Action Center.
Click on the link to send a quick message to your Congressperson and Senator.
For once, I think NAR is on to something. http://takeaction.realtoractioncenter.com/campaign/2009stimulus?qp_source=actionmargin

NAR's Housing Stimulus Plan

Our nation is facing an unprecedented lack of liquidity throughout every sector of the economy. This has placed insurmountable barriers in the path of too many homeowners wishing to avoid foreclosure and save their home and home buyers wishing to take advantage of the low mortgage rate environment and realize the American dream of owning a home. The NATIONAL ASSOCIATION OF REALTORS® believes it is imperative that Congress take action and restore consumer confidence in homeownership. We are calling on Congress to enact measures that address foreclosures, stabilize housing and real estate, energize credit markets, restore bank lending capacity and revitalize the economy.

Make the $7500 first-time homebuyer tax credit available to all buyers, eliminate the repayment requirements and extend the credit to December 31, 2009. In July 2008 Congress passed legislation creating a refundable tax credit for first-time homebuyers. The $7500 credit is in effect for purchases between April 9, 2008 and July 1, 2009. Consumers have shown little interest in the credit, in large part because it is not available to all purchasers and because, unlike other credits, this tax credit must be repaid.

Restore the FHA, Fannie Mae and Freddie Mac maximum loan limits to $729,750 and make them permanent. The economic stimulus loan limits for Freddie Mac, Fannie Mae and FHA expired on December 31, 2008. As a result, the maximum limit for Fannie Mae, Freddie Mac and FHA dropped from $729,750 to $625,500. Returning these limits to their 2008 levels and making them permanent will strengthen the availability of mortgage credit and expand mortgage affordability in a time when home sales and refinance activity are necessary to stabilize the housing market and move the broader economy towards recovery. This will also assure that a wide range of borrowers have access to fair and affordable mortgages.

Get Treasury’s Troubled Asset Relief Program (TARP) back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to bring down interest rate spreads to historical averages and reduce mortgage interest rates. It is crucial that the government continue its actions to bring down interest rate spreads between mortgage and Treasury rates to historical norms which will significantly reduce mortgage interest rates. Recent actions by the Federal Reserve and the Treasury are making mortgage interest rates more affordable. Mortgage rates are near 50-year lows but the spread between mortgage rates and Treasury rates are abnormally high. If rates drop in line with historic trends, home sales could rise nationally by 10 to 15 percent and stabilize prices in many parts of the country. While this is a good boost, mortgages need to be more attainable. There continues to be continuing problems impeding the delivery of mortgage credit to home buyers and those trying to avoid foreclosure. The federal government must step in and address these problems. Corrective actions that NAR is advocating include:

• The Treasury Department should provide additional TARP funds to make added loans for housing, establish foreclosure prevention programs, modify more mortgage loans to prevent foreclosures to the maximum extent possible, establish an efficient and effective short sales process, or a combination of these activities.
• All mortgage lenders, their servicers, Fannie Mae and Freddie Mac, and investors in mortgage assets should adopt and implement aggressive policies that result in more mortgage loan modifications to prevent as many foreclosures as possible. Where sustaining homeownership is not possible, these entities should facilitate short sales that will benefit all parties.
• Mortgage lenders and private mortgage insurers should (1) reexamine underwriting standards to determine whether they have over-corrected in response to abuses in the mortgage market, and (2) remove unnecessarily strict underwriting standards (such as requiring excessively high credit scores that result in qualified borrowers being arbitrarily denied a loan).
• Consumer reporting agencies (credit bureaus) should improve compliance with the Fair Credit Act, including prompt responses to consumers who seek to correct files and errors.
• The FHA should make investors eligible to participate in its Section 203(k) Rehabilitation Loan Program to help dispose of large numbers of vacant foreclosed properties for rehabilitation and conversion to homeownership. Additionally, Fannie Mae and Freddie Mac should increase their selling guide ceilings on investor loans to facilitate investor participation in the housing recovery.
• Congress should oppose the imposition of fees or increased fees by Fannie Mae and Freddie Mac that translate into major new costs on homebuyers and homeowners seeking fair and affordable mortgage loans.
• FHASecure, which helped more than 450,000 families modify their mortgages and stay in their homes before it was sunset, should be reinstated. In addition, reforms to the Hope for Homeowners program should be made to increase its efficiency and effectiveness.

I am not a morning person, and most people who know me well enough know that about me. I admit that morning settlements are not my favorite ones because I can never seem to have enough coffee in me yet to feel like I am starting my day off on the right foot (and it takes *a lot* of coffee for me to get started!).

But, this morning's settlement went smoothly even though I was only running on one cup of coffee - (I made up for it later with a grande Misto from the Starbucks across the street!). There were a few last minute heart attacks the evening before as the lender needed one more document that it turns out they had since December. Emergency handled, we were all set for the early morning settlement.

What makes it even more special is the fact that this was the settlement for young couple who are first-time buyers. I've known the young man since he was in elementary school when my son and his little sister became friends in kindergarten. Years later, our paths crossed again and I had the opportunity to meet his then girlfriend (now fiancee) as they finished up their college degrees and pursued their goals.

Settlements are always satisfying - especially when they go well! Having settlements with first-time buyers tops even the best settlements. But, having a settlement with a first time buyer who I've practically watched grow up is especially satisfying.

Perhaps due to the lack of caffeine in my system, I had time to be settled and reflect on something. Today only proved to me something that I already knew -- how great our community is here in Lancaster. This is a young man who grew up in Lancaster, chose to go to college in Lancaster, and is giving back by working and teaching in the local community. That alone speaks volumes for the allure of Lancaster County, no matter if you are a first-time buyer, a move-up buyer or someone ready to downsize and retire in Lancaster.

---------------------------

For more information on Lancaster PA Real Estate, or questions
about buying or selling Real Estate in Lancaster County PA,
please contact
Jeannie Kontis at (717) 330-5137
or email at Jeannie@JeannieSellsLancaster.com.

Search for Lancaster Homes for Sale at www.JeannieSellsLancaster.com

Jeannie Kontis, RealtorⓇ, is a member of the award-winning Bob Wells Realty Group of Long & Foster Lancaster Real Estate, Inc, and serves buyers and sellers of real estate throughout Lancaster County.
All content Copyright ⓒ 2009 Jeannie Kontis Homes in Lancaster PA - Real Estate in Lancaster County