NAR: A GOOD DAY FOR HOUSING… September 18, 2007

Along with “the FED” cutting the discount rate by half a percentage point, the House of Representatives passed the Expanding American Homeownership Act of 2007, HR 1852, offering homeowners a safer alternative to risky mortgage products, helping homeowners who may be facing foreclosure, increasing loan limits and eliminating the statutory 3% minimum cash down payment. Mortgage modifications will allow borrowers to change mortgage terms so they can afford to stay in their home. “Partial Claim” programs will cure a loan default with the FHA lending the borrower money with a no-interest loan due when the property is sold or paid off. The National Association of Realtors (NAR), America’s largest trade association, represents 1.3MM+ members involved in all aspects of residential and commercial real estate and is known as “The Voice for Real Estate.”

KRAVIS UPDATE

November 7: Queen Latifah... December 13: Anita Baker... January 30: Dame Kiri Te Kanawa. Kravis Members can buy tickets prior to this Saturdays Public Ticket Sale to be held in the center's Rinker Playhouse, 701 Okeechobee Boulevard, West Palm Beach. There will be refreshments available. To become a Kravis Center member, call 561-651-4320. You can choose your seats at www.kravis.org or call 561-832-7469 or 800-572-8471.

BEACH CLEANUP SATURDAY SEPT 15TH

Come to Gulfstream Park, 4489 No. Ocean Blvd, Gulfstream, 8-10:30 am and help cleanup, get free t-shirts, drinks and cookies and be awarded community service hours. Pre-reister with Gary Solomon, TheRecipeExchange@Comcast.net, 561-734-9128. www.Sandsifters.org. Gulfstream Park is a small beach park nestled on a hill behind a mass of Sea Grape bushes and shaded by Australian Pines. There are open picnic benches, a few BBQ grills, a children’s play area, showers and restrooms as well as areas to sit overlooking the ocean. The beach is wide and clean and there is usually a lifeguard on duty. Walk the vegetation-covered boardwalk to the beach. There are 86-parking spaces (free). Activities include fishing, swimming and sunbathing – a great place to take the kids to!

COASTAL CLEANUP PROJECT IN DELRAY BEACH

Wanting to preserve environmental resources, the city of Delray Beach joins the Sandoway House Nature Center located at 142 South Ocean Boulevard in celebrating Florida Coastal Cleanup Saturday starting at 9 am at the nature center on September 15^th. Local residents are asked to participate. The annual event is the largest and most successful volunteer effort of this type of project. Thousands of worldwide volunteers from more than 90 countries have, since 1986, cleared more than 100-MM lbs. of trash from 170,000 miles of shorelines, rivers, lakes and wetlands. They are given free commemorative t-shirts, water and snacks for as long as the supplies last and earn community service hours. Pre-registration can be made by calling 561-274-7263, Registration forms can be found in the lobby of Delray Beach City Hall, 100 NW 1^st Avenue, and should be completed and returned to Jennifer Buce, litter prevention coordinator.

HIGH HOLY DAYS TEMPLE ATTENDANCE INCREASED BY YOUNG FAMILIES

Rabbi Sholom Ciment at Chabad-Lubavitch of Great Boynton Beach, which has 500 member families, said they this year the Temple has had a 35% growth of totally unaffiliated families. A preschool was recently opened at the Chabad, and more adjacent land was purchased, doubling the size of its campus. About 1000 people are expected for services. They offer free synagogue membership, including seats for the High Holy Days, to new families who register for the pre-school or Hebrew School. Rabbi Stephen Pinksy of Reform Temple Beth Torah of Wellington said that nonmembers attend their services, but most who come are members. He said that some congregations (but not theirs) believe they will make up their deficits each year through the sale of holiday tickets. In the past 12 years, the Temple has grown from 200 to 500 families of which 60% are younger families and 25% older families. Rabbi Anthony Fratello of Reform Temple Shaarei Shalom, west of Boynto Beach, says their High Holy Day Services are a sell-out each year, including a mix between young and old and some folks who have not yet found a congregational home. Rabbi Menachem M. Muskal of Orthodox Chabad-Lubavitch of Wellington, also called the Wellington Jewish Center, says they won’t turn anyone away for lack of funds, and their young population is growing.

FL MASTER NATURALIST COURSE OFFERED Sept 8 through Oct 16

The Palm Beach County Cooperative Extension Service will provide programs of interest to those with “green thumbs,” who love the great outdoors. Freshwater Wetlands is the first in the series, to promote awareness, understanding an respect of Florida’s natural world among Florida’s citizens. Topics will include concepts of echo-system processes, identification of key plants and wildlife, and how humans can help shape Florida’s environment. There will be both classroom learning and field trips. Cost is $225 per course and will include detailed course manuals with certificate, path and pin upon completion. Participation is limited to 20. The 2nd module, the Uplands Module, begins in October, and the 3rd will be at the Gumbo Limbo Center in Boca Raton on A1A. You can register at http://www.MasterNaturalist.org or call Alyssa Dodd at 561-233-1725 or email Adodd@co.palm-beach.fl.us.

WANT A HOUSE IN A WALKABLE, HEALTHY ENVIRONMENT?

Buying a house in a walkable neighborhood is good for your health and good for the environment. Homebuyers, renters, and real estate agents can find houses and apartments in great neighborhoods. Walk Score shows you a map of what's nearby and calculates a Walk Score for any property.

OCEAN LAND INVESTMENTS ENDS DEAL TO BUY BRINY BREEZES RESIDENCES

The defining issue was “density.” Ocean Land’s plan would have had a living unit density approaching 60 units per acre, which was deemed unacceptable. Then a meeting was planned for Ocean Land to meet with interested parties from the wealthy nearby communities of Ocean Ridge and Gulfstream, but it could not be done prior to the date when a large portion of Ocean Ridge’s deposit would be non-refundable. The amount would increase from $500,000 to $5-MM. Ocean Land requested more time from the Briny Board (45 days more) to talk with neighbors, and they said “no,” so Ocean Land “pulled out.”

CITYPLACE EVENTS in WEST PALM BEACH

On August 9th, CityPlace fine restaurants are featuring CityPlaceUncorked at the Harriet Himmel Theater. Over 150 fine wines from all over the world to taste… VIP Receipton 6:30-7:30. General Admission 7:30 – 10 pm. Call 1-866-449-2489 to purchase tickets. Tickets are $100 (reserved for exclusive tastings) and General Admission is $60 in advance, $75 on day of event. Participating restaurants in clued Blue Martini, Il Bellagio, Legal Seafoods, Saito’s Japanese Steakhouse, Starbucks, City Cellar, Brewzzi, Columbia, Continental Catering, Jinja, Mark’s and Taverna OPA.

WHERE NOT TO BE WHEN LIGHTENING STRIKES

According to the Palm Beach Post, the advice is to stay inside when lightening strikes. A National Weather Service meteorologist said that during the summer it’s almost a daily occurrence. Thunder is the first warning, and lightening can repeatedly strike in the same place. If you are out on the golf course, the advice is to use “the lightening crouch,” by putting your feet together, squatting low, tucking in your head and covering your ears, if possible in a low spot like a ditch, and not near trees. Tall objects can result in a deadly charge traveling more than 100’ along the ground. If you are in a car, be sure not to touch metal. Metal roofs and sides will protect you; fiberglass or plastic shells offer no protection from lightening. If it’s possible to get to a building with four walls and a roof, you will be safe, but not in open garages or carports. Inside, don’t pick up corded phones, electrical appliances or wires. You can safely give aid to a lightening victim.

STATE OF ISRAEL BOND INVESTMENT ENDORSED BY COUNTY COMMISSIONER BURT AARONSON.

Commissioner Aaronson leads the Commission’s investment policy committee, and wants to incrase the county’s investment income by having Palm Beach County join the State of Florida in State of Israel bond investments. He mentioned that the bonds have an A ra ting and that Israel has not defaulted on a bond in its 50-year history as a nation. The count’s Israel investment represents less than 1% of it’s approximately $2.3-BB portfolio. Boca Raton’s Senator Ted Deutch sponsored legislation that recently was signed by Governor Charlie Crist, “Protecting Florida’s Investments Act,” making Florida the first state to divest its pension fund and other public investments from firms that refuse to stop doing business with, or otherwise support Iran and Sudan.

FAR “PUTS MONEY WHERE ITS MOUTH IS” RE PROPERTY TAX REFORM BALLOT

The Florida Association of Realtors, the largest trade group in the state, with 150,000 members, has pledged up to $1-MM to support passage of the Save Our Homes Amendment to allow homeowners to continue the 1992 Amendment for a 3% tax cap or to choose a new “super-homestead” exemption, taking up to $195,000 off their home’s taxable value. Passage of this amendment will provide meaningful tax relief for thousands of families including 1^st time homebuyers, and will equalize neighbor’s property taxes, says the FAR President Nancy Riley. She stated that then nurses, police officers, teachers and emergency first responders can afford to live in the communities they serve.

SIGNALS COMING TO VALENCIA LAKES AND AVALON ESTATES

VALENCIA LAKES and AVALON ESTATES Homeowners Association each have a $16,000 reimbursement agreement to pay for costs incurred removing brick pavers and re-asphalting so that the county can install signal detection loops in the egress lanes for a signal installation.

BOCA MUSEUM PLANS EXHIBIT OF DEGAS SCULPTURES

While a Jacksonville art gallery owner claims the 74 sculptures are “fakes,” made after Degas’ death in 1917, the Museum’s Board of Trustees discounts the art gallery owner’s opinion, noting the goal might be “to get his name in the newspaper.” Museums currently displaying all or portions of the Degas bronzes include the Metropolitan Museum of Art in New York, the Getty Museum in Los Angeles and the Chicago Institute of Art in Chicago. The National Endowment for the Humanities has underwritten some of the insurance expenses for the upcoming show. The museum’s website says that the exhibit, DEGAS IN BRONZE, “offers an extremely rate opportunity to view 74 sculptures, posthumously cast in bronze from Degas’ original composite and wax models.”

IN MY HUMBLE OPINION…

With reports just in that New York City and Salt Lake City are avoiding “the [real estate] bust,” can Palm Beach County be far behind? Some investors tell me they are “sitting on the sidelines” waiting for prices to keep dropping… other investors want to “sell and get out now,” but in many cases sellers are “standing pat.” Expired listings number near or over 500 properties each day. Some sellers cancel listings after getting low low bids. Remember that June and July are usually “slow months” with so many residents and part-timers out of town. August has been an outstanding month for sales in past years as folks come down to purchase residences for this coming winter… perhaps that will happen in 2007 as well. As a Realtor, I can tell you that every day in this career is exciting… new faces… new properties… no two ever alike. Like the stock market, real estate is cyclical… and what goes down will go up… just a matter of time. Stay cool. Hang in there.

Marilyn Farber Jacobs, Realtor, ePRO

GREEN IS THE BUZZWORD TODAY

An Environmentally Certified “Green” $25-MM mansion is being built in Manalapan.

Frank McKinney has been building one-of-a-kind mansions in the area for the last 20 years, and is now creating an oceanfront estate that is approved by the standards of the US Green Building Council and the Florida Green Building Council. The entire project will be the subject of a documentary series. Groundbreaking is being filmed as part of this program. A scale model has been made.

The 15,000 sq ft 3-story mansion will be rooted in nature, and will feature

• thatched roofs
• water gardens
• floating sun terraces
• a waterfall spa with fire feature
• interior acrylic main floor with moving water below
• a 24’ sheer water wall with fog/smoke screen on which moving images are projected
• suspended double-helix main glass staircase
• hand-blown chandelier that mixes electricity with water
• arched aquarium wet bar to be able to walk below and view the fish above
• guesthouse made of palm and bamboo that is partially submerged in a lagoon.

“Green” features will include

• solar panels that could cover a regulation-size basketball court to generate enough energy for two average-size homes
• water system that collects enough “gray” runoff water to fill the average swimming pool every 2 weeks
• reclaimied wood amounting to saving 7 ½ acres of Brazilian rain forest
• renewable woods that regenerate every 3 years vs. every 50 years for other hardwoods
• pools, reflecting ponds, water gardens, misters and more to drop the site temperature 3-5 degrees over neighboring properties
• recycling 340,000 lbs of debris during construction
• air-conditioning and air purification systems four times better than an operating room in the Mayo Clinic.

MacKinney has written two best-selling books, and raises millions of dollars for his Caring House Project Foundation to build housing for the poor in the United States, Haiti, South America, and the Caribbean.

Governor Charlie Crist plans to reenergize the state with a mixture of solar, wind and nuclear fuel. He is expected to emphasize using renewable fuels and include mandates for reducing greenhouse gas emissions. Friday afternoon, after two days of workshops and speeches at the Florida Climate Change Summit, Crist will sign executive orders and put his plan into law. Crist has signed California Gov. Arnold Schwarzenegger, Robert F. Kennedy Jr. and Theodore Roosevelt IV to the bill along with various Hollywood personalities and scientists, renewable-energy advocates and environmentalists who will talk about how Florida can become more energy-efficient and use alternative fuels.

California Governor Schwarzenegger has committing his state to reducing its carbon emissions by 25% by 2020, calling for 1 million solar roofs by 2018, tightening car-emission standards and creating a multi-state global warming group and it is speculated that this will happen also in Florida.

Florida Power & Light Co., the state's largest utility, maintains that using renewable fuels and more stringent energy-conservation steps won't be able to support all of Florida's future growth.

According to an FPL spokesman, "What you have heard from the environmental movement is that we can get there through renewables or we can get there through offsetting the energy that we are demanding today. And what we're saying is that (it) will not get you there. You will still need to build power plants." Crist has praised FPL for exploring a wind power project in St. Lucie County and is ecstatic about utility regulators denying the utility's plan to build a "clean coal" power plant in Glades County.

GREEN IS THE BUZZWORD TODAY

An Environmentally Certified “Green” $25-MM mansion is being built in Manalapan.

Frank McKinney has been building one-of-a-kind mansions in the area for the last 20 years, and is now creating an oceanfront estate that is approved by the standards of the US Green Building Council and the Florida Green Building Council. The entire project will be the subject of a documentary series. Groundbreaking is being filmed as part of this program. A scale model has been made.

The 15,000 sq ft 3-story mansion will be rooted in nature, and will feature

• thatched roofs
• water gardens
• floating sun terraces
• a waterfall spa with fire feature
• interior acrylic main floor with moving water below
• a 24’ sheer water wall with fog/smoke screen on which moving images are projected
• suspended double-helix main glass staircase
• hand-blown chandelier that mixes electricity with water
• arched aquarium wet bar to be able to walk below and view the fish above
• guesthouse made of palm and bamboo that is partially submerged in a lagoon.

“Green” features will include

• solar panels that could cover a regulation-size basketball court to generate enough energy for two average-size homes
• water system that collects enough “gray” runoff water to fill the average swimming pool every 2 weeks
• reclaimied wood amounting to saving 7 ½ acres of Brazilian rain forest
• renewable woods that regenerate every 3 years vs. every 50 years for other hardwoods
• pools, reflecting ponds, water gardens, misters and more to drop the site temperature 3-5 degrees over neighboring properties
• recycling 340,000 lbs of debris during construction
• air-conditioning and air purification systems four times better than an operating room in the Mayo Clinic.

MacKinney has written two best-selling books, and raises millions of dollars for his Caring House Project Foundation to build housing for the poor in the United States, Haiti, South America, and the Caribbean.

Governor Charlie Crist plans to reenergize the state with a mixture of solar, wind and nuclear fuel. He is expected to emphasize using renewable fuels and include mandates for reducing greenhouse gas emissions. Friday afternoon, after two days of workshops and speeches at the Florida Climate Change Summit, Crist will sign executive orders and put his plan into law. Crist has signed California Gov. Arnold Schwarzenegger, Robert F. Kennedy Jr. and Theodore Roosevelt IV to the bill along with various Hollywood personalities and scientists, renewable-energy advocates and environmentalists who will talk about how Florida can become more energy-efficient and use alternative fuels.

California Governor Schwarzenegger has committing his state to reducing its carbon emissions by 25% by 2020, calling for 1 million solar roofs by 2018, tightening car-emission standards and creating a multi-state global warming group and it is speculated that this will happen also in Florida.

Florida Power & Light Co., the state's largest utility, maintains that using renewable fuels and more stringent energy-conservation steps won't be able to support all of Florida's future growth.

According to an FPL spokesman, "What you have heard from the environmental movement is that we can get there through renewables or we can get there through offsetting the energy that we are demanding today. And what we're saying is that (it) will not get you there. You will still need to build power plants." Crist has praised FPL for exploring a wind power project in St. Lucie County and is ecstatic about utility regulators denying the utility's plan to build a "clean coal" power plant in Glades County.

BRINY BREEZES UPDATE

Watching the procedures in the development of a potentially face-changing well-located property, and how the problems are solved, will set the tone for future such developments, which, probably, are bound to come in due time.

Ocean Land Developments, Inc. of Boca Raton has offered $510-million to purchase a 43-acre trailer park called Briny Breezes, located about 12 miles north of Boca Raton on A1A along the ocean on one side and the intracoastal waterway on the other, and redevelop it over 10-15 years into residential and commercial property. In the 1920’s the community began. In 1958 residents bought the community and it was incorporated as a municipality in 1963. Each property owner had shares in the community based on size and location of each lot. The community’s Board of Directors in 2006 required that 2/3rds of the total shares (15,703) had to okay the deal going forward. 79.95% voted to go forward with this deal.

The Florida Department of Community Affairs (DCA) has come up with a 14-page analysis of Ocean Land’s proposal, stating that risks to the environment and strains on the local infrastructure such as traffic congestion at the Woolbright/A1A during peak times, must be faced, and either right-of-way must be secured for adequate turn lanes, or perhaps the developer must purchase property on the corners.

The reported problems include:

• Absence of public participation procedures and concurrency management system (ignoring surrounding community input)
• inadequate
• density and intensity standards
• provisions for affordable housing
• provisions to protect manatees
• mechanisms to ensure intergovernmental coordination as the current governmental body is very informal and composed of people who stand to reap the benefits from selling which may be a conflict of interest
• lack of data and analysis
• for impact on public facilities and roads
• related to hurricane evacuation and planning
• lack of level of service standards for public facilities
• lack of financially feasible 5-year schedule of capital improvements
• objection to plan’s proposal to develop land use regulations later on rather than include them in plan submission
• incompatability with surrounding community
• too many units

The developers say the report was “as expected… and we’re going to be able to address the recommendations.” They also complained that they have asked the governmental “powers that be” to meet with them, but so far they have not come forth to do so.

Suggested ideas include traffic lights, pedestrian crosses and signals, and the question then comes up as to who pays for what, the developer or the county. Briny Breezes residents have had to deal with public acrimony over the possibility of this plan going forward. Another problem for the development to face is that currently inadequate water consumption supplies exist, where to get the needed water supply from, and how to improve that issue. The 60 water utilities of Palm Beach and Broward Counties already estimate that by 2025 300-million more gallons a day, twice as much water as what’s used now, will be needed daily for the expected million additional residents. Finding a way to economically use seawater for drinking and personal use might be one way to solve this problem although there are many issues beyond the cost of its preparation to be considered.

IF YOU "FLIP" HOMES, THIS MAY BE OF INTEREST

A nationwide search is being done for the new cast of characters who will be featured on the upcoming season of Flip This House! The producers are searching for confident, charismatic, motivated and opinionated people who "flip" residential properties for a living. They want real-estate adrenaline junkies who love the high risk, high reward nature of their jobs and who are devoted to doing a great job! If you would like your team featured on the upcoming season send me an email and I’ll have them contact you.

marilynfjacobs@gmail.com

HOME & CONDO SALES PREDICTED TO MAKE STRIDES

More and more positive mentions of home sales are being seen in the media.

NAR projects that sales will have a gradual upturn becoming more pronounced by the end of 2007. FAR reports that statewide sales of existing single-family homes in Florida totaled 12,607 in May, which is more in line with May 2002 activity, prior to the housing boom years, than May 2006 with 19,072 homes – a 34% decrease in the year-to-year comparison.

The MSA (Metropolitan Statistical Area) reported that the Boca-West Palm area had 741 homes sold last month compared to 982 a year ago, producing a 25% decrease. Median price was $387,800 whereas in May 2006 it ws $391,000 resulting ina 1% decrease. 613 existing condos changed hands last month, up 11% from the 552 condos sold the previous year. Existing condo medial sales price in May was $217,400; a year ago it was $218,900, for a 1% decrease.

Among the state’s larger markets, the West Palm Beach-Boca Raton Metropolitan Statistical Area (MSA) reported 741 existing homes sold last month compared to 982 homes sold a year ago for a 25 percent decrease. The market's median sales price for homes was $387,800; it was $391,000 in May 2006 for a 1 percent decrease. A total of 613 existing condos changed hands in the MSA last month, up 11 percent from the 552 condos sold the previous year. The existing condo median sales price in May was $217,400; a year ago, it was $218,900 for a 1 percent decrease.

BRINY BREEZES PROJECT HITS A BUMP IN THE ROAD

Last January, Briny Breezes residents voted to sell the 43-acre park to Ocean Land, Inc. for $510-MM. The Treasure Coast Regional Planning council, which covers Indian River, Martin, St. Lucie and Palm Beach Counties is, for the first time, reviewing an entire town and the Department of Community Affairs is reviewing the town’s rewritten comprehensive plan. A digital model was prepared of what a development of the maximium density, 40-60 units per acre, would look like.

With no independent city council, the developer is in charge. Ocean Land has been urged by the council’s staff to be more specific in its plans and to show they were compatible with surrounding development. Ocean Land plans about 900 condo and time-share units and a 349-room hotel in several towers rising above state road A1A.

Ocean Ridge and Gulf Stream, neighboring towns, have opposed plans and mentioned that Boynton Beach could annex the resort, and that the developer could help ensure that enough affordable housing is available there for resort workers.

Hurricane worries for a high-rise have been mentioned for a building so densely populated on a barrier island. Environmental groups have spoken against the project. There is concern that the number of units it would take to reach a standard return on the investment was alarming at best. Cost of insurance could be a problem. Water, sewage and traffic are concerns. Storm evacuation could be a problem.

The DCA will return the plan to Briny Breezes by the end of the month with comments for changes and final approval, and then will further review the plan.

ISRAEL BONDS INVESTMENT BILL SIGNED BY GOV CHRIST

A bill authorizing county and local governments throughout the state to invest surplus funds in bonds backed by the full faith and credit of the State of Israel has been adopted by the Florida State Legislature, starting July 1st, and was signed by Governor Charlie Christ on June 8th at a ceremony at Temple Beth El in Boca Raton.

Those authorized to invest are state agencies, municipal fire and police pension funds and local governments.

Gov. Christ recently returned from a trip to Israel that focused on bilateral trade between Israel and the State of Florida.

The first Israel bond was sold in 1951 and close to $25-billion in investment capital has been secured for the development of every aspect of Israel’s economy including agriculture, commerce and industry, and to absorb Jews from the former Soviet Union, Ethiopia and elsewhere.

More than $100-million of Israel Bonds are purchased every year within the State of Florida by individuals, corporations, pension plans, universities, hospitals, foundations, unions, banks and insurance companies.

“PROTECTING FLORIDA’S INVESTMENTS ACT” SIGNED

Florida has now become the first state in the US to link its public investments with the actions of “rogue” nations.

The new law allows Florida to divest some of its $150-BB fund and other public investments from firms that refuse to stop doing business with or otherwise support Iran and Sudan. Genocide and the development of nuclear weapons by Iran, the “world’s leading state sponsor of terror,” will not be sponsored by Florida, said Senator Ted Deutch (D-Boca Raton) and he praised Florida Governor Charlie Christ, just back from a trip to Israel, for signing the bill.

Deutch says he is working with other states to accomplish a similar program, and Governor Christ has sent letters to Governors of 49 other states encouraging them to follow suit. Deutch said the use of the law would require three steps: Identify firms with ties described by the law, Engage those firms “in a dialogue that causes them to understand what they are doing, and Ask that those ties be severed. If they are not severed, those stocks will be divested from the pension funds holdings.

This bill was signed by Governor Christ at Temple Beth El in Boca Raton.

TAX CUTS ARE IN.....

Dear Property Tax Reform Supporter:

I am excited to announce that an agreement has been reached between the House and the Senate on the tax cut levels for historic relief and reform package that will save Florida taxpayers $31.6 billion over the next five years. This is, by far, the largest tax cut in Florida’s history.

I cannot be more proud of the excellent work of our negotiating team and the valuable input from our respective legislative chambers. Together, we are bringing forth a thoughtful and comprehensive plan that will give every property owner – homestead, non-homestead residential, and commercial/industrial – a tax cut this year. We are confident that when this plan is implemented, Floridians will finally have a more equitable tax system that will yield property tax bills that they can afford to pay.

The details of the plan are provided below. Thank you for continued involvement in this very important issue. Please e-mail us at info@nomorepropertytax.com for more information.

Sincerely,

Marco Rubio

Speaker, Florida House of Representatives

$15.6 billion in Immediate Tax Relief and Reform (Statutory Changes)

• Beginning this year, every category of property taxpayer will benefit from the cut and the cap that the statute imposes.
• All cities and counties will be required to cut taxes in the upcoming 2007-2008 fiscal year to the 2006-2007 revenue levels. These local governments will then be required to make an additional cut of 3%, 5%, 7% or 9%. The level of cuts will be determined by a formula that analyzes their taxing performance over the past 5 years, measured against a statewide average.
• Special taxing districts and fiscally limited cities and counties will be required to cut taxes to the 2006-2007 revenue levels and make an additional cut of 3%.
• A cap on future property tax revenues (based on the rate of personal income growth and new construction) will be imposed to ensure that government cannot grow faster than personal income.
• Local governments may override the cut and the cap. The method for the override will vary based on the magnitude of the local government’s action (escalating from a supermajority vote of the local governing body, to a unanimous vote of the local governing body, to a referendum).

$16 billion in Further Tax Relief and Reform (Constitutional Amendment)

• The estimated average savings for a homestead property (combining statutory and constitutional changes) will be $1,300 in 2008-2009. This average savings represents a 44% reduction.
• “Save our Homes” is replaced with a new “super exemption”. An estimated 73% of homesteaded properties will receive a greater benefit under this new exemption.
• The new “super exemption” will be as follows:
• Level 1: Homestead Property will receive an exemption of 75% of the first $200,000 in value of the home. The minimum exemption is $50,000 per homestead.
• Level 2: In addition to Level 1, homestead property will obtain another 15% exemption for the next $300,000 in value.
• We will grandfather the tax savings and assessment cap for the minority of property owners who have greater benefits under the current “Save our Homes” plan.
• We will preserve all existing constitutional exemptions based on special circumstances, including those now provided to disabled veterans, low income seniors and agricultural lands.
• Because the tax base for all taxing authorities will decline under the constitutional amendment, the fiscal analyses reflects a reduction in school funding. We intend to hold schools harmless from these cuts.

Other Constitutional Changes

There has been agreement to address remaining issues such as additional relief to low income elderly taxpayers, offering incentives for affordable housing and providing tax reform for “working waterfronts” and small businesses. Small businesses will receive a $25,000 tangible personal property tax (TPP) exemption resulting in a total exemption for $1 million of the 1.3 million businesses who must pay this tax. Furthermore, those who receive a total exemption on their TPP will never have to file the burdensome paperwork associated with the tax again.

BRINY BREEZES

BRINY BREEZES

The developer’s plan for 60 units per acre in Briny Breezes is being contested by locals. Hottest issue is the density level. It was pointed out by Ocean Ridge Mayor Ken Kaleel that this complex will be built on “a fragile piece of land,”. The developer offered $514-MM for the 43 acres that includes 600’ of the Atlantic Ocean frontage. Right now there are 12 units per acre with the trailers on the land, and Boca Raton, as an example, has maximum density of 20 units per acre. Some of the issues mentioned include overburdening roads, stretching scarce natural resources, and insurance increases from overbuilding on vulnerable barrier islands. Figures were mentioned that there were 488 existing trailers, and plans are to build 1500 units, either condos, timeshares or hotel rooms. The developer describes that portion of A1A as an arterial road, but the FDOT classifies it as a collector road, which is subject to higher standards. The county is concerned about a bigger need for sufficient drinking and firewater as well as traffic concerns and environmental issues. The developer’s preliminary proposal is being reviewed and expected to be finished June 29^th, when further debate no doubt will begin. For comments on the proposal you can email Robert Dennis, Regional Planning Administrator at bob.dennis@dca.state.fl.us.

CORNELL MUSEUM’s 13th ALL-FLORIDA JURIED FINE ART EXHIBITION OPENS

The Cornell Museum of Art & History at Old School Square Cultural Arts Center is holding this event June 14 through Sept 8. Competition closed in March, open to all Florida artists. There were more than 200 entries. There will be 70 works by 59 artists displayed including watercolors, oils, acrylis, graphites, dollage, pen and ink, mixed media, stone, wood, digital and traditional photography.

On June 21 from 5:30 pm to 8 pm $2500 in cash prizes will be awarded at an awards reception. Prizes will include Best of Show, three Awards of Excellence, Special Recognition Awards and Merit Awards.. No cost to Old School Square members and exhibiting artists, $6 for others.

Museum’s summer hours are Tuesday-Saturday, 10:30 am – 4:30 pm. $6 general admission, $4 students and seniors, children 13 and under are free. For more information call 561-243-7922.

FLORIDA’S HERITAGE TO BE SHOWN IN ART SHOW & THEATRE AT SUGAR SANDS PARK

Willow Theatre presents “The Life of Ivy Stranahan: A florida Pioneer, Saturday June 23^rd at 2 pm. Reknowned historical Chautauqa portrayal artist tells tales of old Florida, with Mrs. Stranahan trekking through knee-deep mud, championing the Seminole Indians cause and becoming Ft. Lauderdale’s first teacher, a portrait of achievement and courage. Tickets are $12. Purchase at box office (561-347-3948).

The Boca Historical Society exhibits will include”Herstory: Boca Raton’s Pioneer Women.”

Sugar Sands Park Community Center and the Willow Theatre are located at 300 S. Military Trail, B oca Raton (561-347-3900 or www.sugar-sandpark.org).

THIS FRIDAY STARTS A 12-DAY TAX FREE HOLIDAY ON STORM ITEMS

Save money on batteries, generators, flashlights, fans, portable radios and other storm-related supplies during this period when you won’t be paying sales tax on these items. Florida residents are expected to save about $25-MM in sales taxes during this period.

WEST PALM BEACH CREATES THREE NEW ZIP CODES

With the areas around Highway 441 growing in leaps and bounds with gated communities, strip malls and office parks where there used to be acres of farmland, the communities covering areas west of Boynton Beach, from Military Trail to the Loxachatchee National Wildlife Refuge, will soon have new zip codes, as pictured here. The change will be effective July 1^st. The 33437 ZIP code grew between 7 percent and 12 percent a year during the county's building boom, according to the U.S. Postal Service. Parts of Lake Worth, for example, will now have a Wellington address.

UPDATE FROM FLORIDA LEGISLATURE

PROPERTY TAX – “where it is” on 5-4-07

The Florida Legislature suspended negotiations on Save Our Homes portability, rollbacks and other property tax reform proposals until next month when lawmakers return to Tallahassee for a 10-day special session from June 12-June 22. Both sides have already agreed on two FAR-supported tax relief measures - $25,000 exemption on personal intangible property for small businesses and some form of Save Our Homes portability (terms not released). Sources say that so far there is agreement on cutting property taxes by about $20-$25-billion over 5 years; no sales tax increase; some form of Save our Homes portability.

To write your legislator send an email to http://floridarealtors.org - see Legislative Center.

Legislators made it easier for certain property owners to get insurance from Citizens which is now Florida’s largest insurer with 1.3 million policyholders. Property owners will be allowed into the Citizens pool if the only insurance they could obtain on the private market was 15% more expensive than what they would pay Citizens. Citizens rates would freeze through 2008. On Jan 1, 2009, Citizens would again be allowed to raise rates.

Homes valued at over $750,000 and located in high-risk zones will be required to install opening protections as of July 1, 2008 if they seek a building permit for work estimated at $50,000 or more. By 1/1/2009, all homes valued at over $750,000 in high-risk zones must be fitted wit opening protections to remain eligible for Citizens coverage. This is to help reduce some of the risk in the event of a devastating storm. Free inspections of 400,000 single-family homes is called for and grants and loan are provided to certain homeowners to make improvements to strengthen their home against storms.

Home inspectors, mold remediators and mold assessors will be required to be licensed by the Dept. of Business and Professional Regulation as of July 1, 2010 IF SIGNED BY THE GOVERNOR.

Landlords are limited to a financial penalty when a tenant breaks a lease of two months of rent for leases of less than a year. Effective at once IF THE GOVERNOR SIGNS IT.

Mortgage brokers and lenders will now have many disclosure and education requirements to help protect consumers during the mortgage loan application process. This bill includes additional enforcement and investigative tools for prosecuting mortgage fraud. The definition of “primary title services” and “related title services” will be amended and a civil court case codified that permits a portion of a title insurance premium to be rebated IF SIGNED BY THE GOVERNOR.

FLORIDA HOUSE & SENATE VOTE TO DIVEST FL STATE PENSION FUND OF IRAN AND SUDAN PETROLEUM ENERGY INVESTMENTS

Florida has the 4^th largest pension fund in the US and is now the first state in the nation to legislate divestment of its pension fund holdings from Iran as well as from the government of Sudan. House Bill (HB) 703 and Senate Bill (SB) 2142 calls for the State Board of Administration and the Board of Trustees to leverage the approximately $150-billion in Florida’s pension fund by ending investment in companies doing business with the petroleum energy sector in Iran and the government of Sudan.

Governor Charlie Christ is expected to sign it into law, requiring review of holdings in companies invested in Iran’s energy sector or in companies with business ties to the government of Sudan and to divest these holdings with review as well of holdings in mutual and index funds or other commingled investments, and identify ways to create alternative funds without holdings in these companies. A quarterly compliance report of all state pension holdings and actions taken will be required to be submitted to the state legislature.

Senator Ted Deutch said, “Our colleagues here understood that Florida has the opportunity to bring all 50 states onboard to stop genocide and prevent terror.” He further said, “Not one Florida worker’s dollar should fund either Iran’s quest for nuclear weapons which will be trained on our nation and our troops, or the genocide of a people trapped in the turmoil of the Sudan.” House Deputy Majority Leader Adam Hausner said, “We cannot invest Floridians’ pension funds in companies that are propping up countries that support terrorist… Florida is sending more than a message – this will lead a nationwide effort.”

SPEEDING FINES INCREASED IN “Enhanced Penalty Zones”

The Florida DOT has designated 3 parts of highway as enhanced penalty zones. One is a 6-mile stretch on I-95. Signs are now up and the fines will be an additional $50, starting May 1^st. Lawmakers wanted to create a pilot program through FDOT for enhanced penalty zones on state roads in areas with higher than average crash rates related to speeding. Fifty percent of the additional $50 fine will be allocated to the Health Care Administration to provide an enhanced Medicaid payment to nursing homes for brain and spinal cord injury among Medicaid patients. The other 50 percent of the fine will be given for financial support to certified trauma centers in the counties where enhanced penalty zones are established.

RECORD PROFITS IN 2006 FOR NATION’S PROPERTY/CASUALTY INSURERS

Industry net income rose to $63.7-BB in 2006 from $44.2-BB in 2005, according to the Property Casualty Insurers Assn. Most of the improvement, they said, was because of fewer catastrophic storms in 2006 than in 2005. Profits were also boosted by stronger underwriting gains, which are premiums minus losses and admin expenses. While a highly active hurricane season was predicted for 2006, it gave insurers much-needed time to recover from the six 2005 catastrophic hurricanes. Chief Economist, of the PCIAA, Genio Staranczak, said that insurers need to worry about future storms. Increased property values, growing population and a threat of more frequent and severe storms in high risk areas of the US create a financial problem the nation must deal with. Colorado State U experts predict that the 2007 Atlantic hurricane season will be very active with 9 hurricanes.

LOTS DOING IN “TALLAHASSEE”

1000+ realtors are in Tallahassee for the FAR (FL Association of Realtors) convention, and meeting with local senators and representatives on property tax reform, affordable housing, property insurance and other housing issues.

On tap:
…Senate is expected to release its property tax reform package shortly
…Senate Banking Committee and Insurance Committee Chairman rolled out property tax insurance reform bills (each of which have been approved during the proceedings)
…Another bill deals with hurricane mitigation
…Gov. Charlie Christ is supporting bill SB-2498 to allow homeowners to opt for coverage from the state-run insurer if they have an offer from a private insurer that’s 15% higher than the premium charged by Citizens. Homeowners would be allowed to stay with Citizens regardless of the rate offered by a private market insurance company & the bill will require the Office of Insurance Regulation to take into consideration the profits of parent companies when approving insurance rates
… The Senate Regulated Industries committee unanimously passed SB 2234 to provide licensure and regulation of home inspectors, mold assessors and remediators, but exempt from law: engineers, architects, building code administrators, real estate appraisers and fire safety inspectors. Licensure would be required for completion of a 120-hour course of study, and require 14 hours of continuing ed every 2 years.
…Gov. Christ signed legislation that could double the additional homestead exemption available to low-income seniors. HB333 implements a constitutional amendment approved by voters that increases the local option for the homestead exemption from $25,000 to $50,000 for individuals age 65 and older whose income does not exceed $23,414 in 2007.