Let The Taxpayers Keep Paying For HUD's Mistakes

We, like many of you, were disappointed in Kenneth Harney’s one-sided column in the May 23, 2009 Real Estate section of The Washington Post, which trumpeted the benefits of HUD’s plan to use your tax dollars to replicate the job of the now-defunct privately funded down payment assistance industry.

Come on Mr. Harney, we taxpayers are on the hook for billions of dollars in bailout money, how can it be in our best interest to spend this money doing something that the private sector was doing so well for so long – that is, until HUD killed the nonprofit down payment industry last year?

Over the course of a decade, nonprofit down payment assistance helped nearly 2 million credit-worthy families into homeownership without spending our tax dollars. HUD’s plan comes with stipulations that shuts out many such credit-worthy and deserving potential homebuyers – for one, it is available only to first-time homebuyers and those who haven’t owned a home in the last three years.

Secondly, the window of opportunity is so small, it’s comical. The plan hasn’t yet been approved, and if it is, mortgage companies will need several weeks to prepare. Then, it’s only available through Nov. 30, 2009, so potential buyers don’t have a whole lot of time to shop around for the best price, or work out a purchase from sellers who drag their feet. Even Mr. Harney admits, “…would-be buyers who believe they are eligible for the federal credit shouldn't sit around. They should shift into high gear shopping for a house -- the Cinderella date of Nov. 30 is looming…”

So what happens when Nov. 30 rolls around? There are still going to be credit-worthy families who won’t be able to buy homes because they lack the lump sum of cash for a down payment. The answer is simple: reinstate nonprofit down payment assistance.

Wait, Didn't They Already Invent This Wheel?

Did we read that right? Alarms went off for us here at AHAA when we read the story titled “Blue-Ribbon Search for The Bottom,” in the May 16 Washington Post Real Estate section. It was this paragraph that was particularly disconcerting: “Shaun Donovan, secretary of the Department of Housing and Urban Development, said the department is seeking a way to make the $8,000 first-time-buyer tax credit available to borrowers to use on down payment and closing costs, instead of waiting for their tax refunds. HUD wants permission for approved lenders and nonprofit groups to issue bridge loans to make the $8,000 available to borrowers at closing. ‘I expect details within just a few days,’ he said.”
 
This sounds familiar. Oh right -- after years and years of HUD trying to squelch the private, nonprofit down payment assistance industry, HUD finally got its wish when it gave the industry the death blow last fall. Nearly 2 million credit-worthy families were helped into homeownership through these programs without a single cent of taxpayer money. Alas, they are no more.
 
But now, less than one year after killing these programs, HUD wants to use taxpayer money to get people into homes – to do the same thing that the private sector was doing so well for the better part of a decade. So we wonder, "Why reinvent the wheel?" It was working so well before!
 
Using taxpayer money to recreate a program that the private sector can do so ably is not in the best interest of homeowners or homebuyers. There are many places that taxpayer money is needed right now, this is not one of them. Here’s a solution: reinstate private down payment assistance and leave the taxpayers’ money to better uses – or back in their pockets.

Get The Best Price on Food: Grow it Yourself

It's mid-May and garden centers and nurseries are bustling as people file out with beautiful trays of colorful annual and perennial flowers that will grace borders, window boxes and terra cotta pots positioned perfectly on front stoops. However, as lovely as these flowers are, there's far more gratification in growing something else you can find at your local garden center, albeit not as pretty (yet) as the begonias and impatiens: vegetables.

In the current economic climate, no time has ever seemed more perfect than now to try your hand at growing your own food. It's surprisingly simple, inexpensive and rewarding -- and you don't need a lot of space to try out your green thumb either.

A good-sized pot (or a small section of soil in your backyard), a bag of potting soil, seeds or seedlings, stakes (if necessary) and some fertilizer can come to less than $20, and you'll be able to reuse some of these items year-to-year. Your local garden center can provide you with all the expertise you need, plus there is a wealth of information on-line. Gardener's Supply Company (www.gardeners.com) has fantastic resources, including a kitchen garden planner.

For folks short on space, there are upside-down planters and deck kits available that come with vegetables specifically bred for container gardening. Squash, tomatoes, peppers, strawberries, beans, peas, potatoes, broccoli, carrots, onions, herbs and salad greens all make wonderful choices for your garden, and not only is it rewarding for you, but for your kids too.  

This summer, we'll follow the progress of the AHAA garden of tomatoes, tomatillos, lima beans, peppers, lettuce, peas and herbs. Some of our plants will go in the ground, some will go in upside-down planters, and most will go in containers that can be used on any balcony, deck or patio. We'll report on our progress periodically throughout the summer, and we hope you'll check in with us and report on your harvest as well.

Best green thumb wishes to all!

Home Repairs You Shouldn't Put Off: Part 4

This is the last in our four-part series on home repairs you shouldn’t ignore. We’d love to hear your thoughts, please comment in the section at the bottom.

Dirty chimney
Creosote, the byproduct of burning wood, can build up in the flue of a chimney and ignite, causing a fire – and this is a part of the chimney you don’t want a fire in.

Keep your chimney clean and safe with an annual sweep and inspection, which will run about $100. (Find certified chimney sweeps through the Chimney Safety Institute of America.) And when building a fire in your fireplace, use only seasoned wood, build small and hot fires (rather than big and smoky ones), and never burn trash, cardboard or wrapping paper.

These seven household repairs we’ve discussed over the last several days are fixes that you shouldn’t ignore because of the potential safety concerns and the possibility that they could lead to much more drastic and costly repairs later on. However, there are other safety fixes you should consider:

Ground-fault circuit interrupters (GFCI): These electrical outlets are recognizable by their red and black buttons and are designed to prevent deadly shocks – particularly in bathrooms and kitchens within six feet of the sink. Hiam Naiditch, past president of the National Association of Home Inspectors Illinois chapter, told MSN. "They're the best $7 you'll ever spend. They're a lifesaver." The exception: Don't put a refrigerator on a GFCI, he said. A fridge's normal on-and-off surges can trip the interrupter and leave you with an icebox full of rotten food.

Flexible gas connectors: Gas appliances installed more than 10 years ago may still have dangerous brass connectors that can fail, leading to fires or explosions. These should be replaced with an approved connector, typically stainless steel, Naiditch said. Even slight movement can rupture a weak connection, so don’t move the appliance to inspect – leave this job up to a professional appliance repairman to check and make changes.

Garage-door openers: Install an electric eye that senses obstructions and an automatic reverse mechanism to prevent people, animals and vehicles from getting hit by the door.

Dryer vents: Ignition of lint buildup in the duct that vents to the outside of a home causes as many as 15,000 fires every year. Clean the ducts regularly and replace plastic ducts with metal ones.

Home Repairs You Shouldn't Put Off, Part 3

Our look at the seven home repairs you shouldn't put off continues today.

Peeling paint

Consider the paint on your home like its skin. Paint provides a first line of defense against water and pests. When there is a breech in the “skin”, water can seep in and cause the underlying wood to rot, or conversely, this exposed wood can also get too dry and crack.

If you’ve got peeling paint, and your home was built after 1978, scrape off the old paint and sand the surface. Then apply a coat or two of fresh paint. If your home was built before 1978, there is a chance that the paint could contain lead. Peeling lead paint is a serious hazard because dust and chips can cause irreversible brain damage in children and nerve damage in adults. Lead paint should be handled by professionals. Consult your local or state health department to get referrals for testing labs and contractors who do this type of work.

Soaring fuel bills

If you're suddenly taking a hit on your fuel bill and you can’t attribute it to rate increases, it could indicate a furnace problem. Malfunctioning heating systems can be extremely dangerous, causing buildups of deadly carbon-monoxide in your home.

It’s critical to have your furnace professionally cleaned and inspected annually, including the flue. The cost is usually less than $100. Consider a service contract with a heating and air conditioning company – the company will automatically come out and do a check of your system before the season of usage starts. These contracts often come with additional discounts and covered services, which can often make the contract price pay for itself.  Additionally, invest  in UL-approved carbon-monoxide detectors, which run between $25-$50 each.

Next up: Smoky chimneys and other important safety fixes you should consider.

For the full story, visit http://realestate.msn.com/article.aspx?cp-documentid=13108042