Thursday, February 5, 2009

The Stimulus bill, " Magic Bullet?"

Well we continue to hear the debate in the US Senate about what will work the best for the stimulus plan and what is pork and will not create jobs. There are good things and some pretty silly ideas, but I personally see that progress is being made on a plan is making more sense on both sides of the political issues.

One amendment that the National Association of Homebuilders has been working on getting past is the Fix Housing 1st plan that will help stabilize the one thing at the bottom of all of the economic troubles, the demise of a strong housing market. Locally we have been blessed but then we have had a great deal of homes to fix up as well. This fix housing first plan included a $15,000 non refundable tax credit for buying a home. It has been accepted in the senate as an amendment on Wednesday and will stimulate both housing sales and job creation. As it was written I think it includes those who bought in 2008 as well.

This may be the best opportunity to buy a new home with the prices down a little, interest rates way down and now a tax credit to put in your pocket to boot. Like most things let your representatives know that you support these issues. Watch and see what happens to the legislation, if it passes there has been lots of people asking about building this year and if it does pass, builders will be filling up orders for the year very quickly.

Craig Fairbanks
Build Buy or Sell Homes.com

Wednesday, February 4, 2009

Building codes and ordinances

It will never end!!

Once the economy slows down people who regulate seem to have free time to advance new rules and regulations. Its a given that when we are all busy with our current work load we don't have time to complain and look for problems, but let the work slow at any government level and all of a sudden we need to correct the systems that are now failing. More regulations, more codes and more costs that are of little benefit to the citizens.

Somehow if someone else is paying that its no big deal to me. Don't we ask ourselves when it will be our turn to suffer the loss of funds due to mandates? Ultimately it is a loss of freedom to somone. Its easy to get jaded about government and regulation when we are shell shocked by just the shear mass of legislation that can be churned out faster than any of us can even comprehend what it means to us.

Yesterday I spent time in Des Moines with some legislators from our area at the State Homebuilders Association legislative reception. I was told by one of our representative that 64 pieces of new legislation had already been intoduced in this early state legislative session. You would think that without funds to spend this year that it might curtail some of the bills, but no the focus is on items that cost the state nothing and onto bills that cost us money for compliance.

I learned that there were many items that even the legislators do not get to debate. Appointed officials can almost single handely make a call on a new code just by their endorcement. Basicly its taxation with out representation. Most of it sounds like good ideas until you dig a little deeper and find that what is shown is only the tip of the ice burg.

Locally we are working hard to get adjustment to the subdiviion ordinance in Cedar Falls. Developers are being told that ground will be taken from them to provide public trails through these private neighborhoods. Worse yet being asked to build the trail and maintain it forever. Homebuilders are for trails and have no objection to that but to ask them to absorb it is not going to happen, all costs are passed onto the homeowner. Trails are good right? ,until they decide that land you have been using needs to be taken for a public purpose and diguese with a terms called easement. Just one of the many expensive and objectionable conditions contained in this ordinance that will reduce to a stand still development in Cedar Falls. Well if this passes don't look for price increase on home building lots.

Oh by the way we haven't even gotten through this issue with the city and a new one has been sent our way called post construction ordiance that we add even more costs. The goal of this one it to eventually make all homeowners maintain the water on their own property up to a rain fall event of 1-1/4" of rain on the site. You will be responsible to change you landscaping is such as way to comply. I have no problem with this either except to say that if its a good thing that it can be maketed so that people desire to do this no forced to make the change. If Cedar Falls is trying to slow or stop development this will get the job done.

More soon watch the local news for additional developments.



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