REMINDER (Builders): Property Tax Relief Deadline is Near

As the result of a law passed in 2009 with the help of the Home Builders Association of South Carolina, Home Builders are eligible for property tax relief on homes they have completed but are not yet sold or occupied. The relief is available for up to five years, but is lost once the home is occupied (for example, if the home is rented) or sold.

January 31, 2011 is a VERY IMPORTANT date. The property tax exemption deadline for recertifying unoccupied homes that got property tax relief in 2010, and for certifying any newly constructed homes, or older homes that have not been enrolled in the program for the 2010 property tax year, is January 31. Those who fail to certify or recertify with their county assessor by January 31 will have no recourse and there will be no exceptions and no tax relief. If you think you might be eligible, contact your county assessor. When in doubt, call your assessor. There are significant savings to be had by participating in this property tax relief program.

Relief also is available for the part of the year in which the home is completed. However, you must apply for relief within 30 days of receiving a certificate of occupancy.

DETAILS OF LAW:

1. Effective date: July 1, 2009
2. Homes Covered by Law: Newly constructed unoccupied detached single-family homes built in 2007 or later.
3. Extent of Tax Relief: Provides property tax relief only for real estate improvement (new home), but builder/developer still pays property tax on the unimproved land.
4. First Eligible Tax Year: 2009 property tax year. No refunds are available for the 2007 and 2008 tax years. Exemption application must have been made by September 30, 2009, to be eligible for relief in the 2009 tax year.
5. Duration of Eligibility: Until the house is sold, occupied, or it has reached the property tax year ending the sixth December 31(five years) from the date a Certificate of Occupancy (CO), if required, was issued, whichever comes first.
6. Recertification: After the initial application, the builder will be required to re-certify homes with Certificate of Occupancy (CO) annually by January 31 every eligible year that the house remains unoccupied.
7. Homes with No CO: Homes without a certificate of occupancy (if required) are not habitable, therefore they can’t be occupied. This means that they can’t be added to the tax rolls until both the CO is issued (if required) and the house is occupied (Administrative Law Court decision).
8. Change in Occupancy: Builders are required to notify the assessor if the house is rented or is occupied by the builder. The house permanently loses its tax exemption with the notification. If the house is sold, the assessor will pick up the change in tax status when property deed is recorded.
9. Legal Reference: Section 12-37-220(B) of state code of law. Bill – H. 3018, Ratification- R88, Act- 76
10. Obtaining Exemption: Homes Receiving CO in 2009 or later, notify assessor within 30 days of receiving a CO, or by January 31, that the house is unoccupied.

If house sale is not pending, it would seem prudent to file the exemption form when the CO is issued just to be safe. Each county has a form to claim the exemption. However, the form may vary slightly from county to county. To protect your legal rights, the application must be notarized.

HBA President's Holiday Reception is December 14

Your HBA of Greenville will host its annual President's Holiday Reception Tuesday, December 14.

What: President's Holiday Reception
When: Tuesday, December 14, 5:30 p.m.
Where: Dillard-Jones/Southern Living House, Claremont

Each year our association members gather to enjoy the season together. This event is a remake of the old Year-End Party. The event is no charge to members thanks to our generous sponsors. Members will be able to socialize and network together, enjoy heavy hors d'oeuvres, beverages (adult and otherwise), and celebrate the season together.

Don't miss this opportunity to tour the Dillard-Jones/Southern Living House, decorated for the holiday season. And don't miss this opportunity to thank outgoing President Tom Dillard, CGP, and the rest of the 2010 Board of Directors, for their service to the Home Builders Association of Greenville.

To register, please click on this link.

Please also thank our sponsors:

Mortgage banker predicts strong 2011

After several years of growth during a trying time for the mortgage industry, Element Funding predicts 2011 will be a strong growth year for purchase originations, increased home sales and stabilizing home prices.

Read the rest of the story at GSA Business by clicking here.

Another job announcement for Greenville County

The South Carolina Department of Commerce and the Greenville Area Development Corporation announced that Century Plastics will expand its production facility in Greenville County. The $3.5 million investment is expected to generate 25 new jobs.

Read the entire report at the S.C. Department of Commerce by clicking here.

Marchant Company to market Georgia Home Builder

Greenville-based Marchant Co. has been selected as the marketing agency for Lee Builders, Inc. Lee Builders has several active housing projects currently being built in Greenville, Clinton, and Lake Thurmond.

The Marchant Co. will represent Lee Builders in real estate transactions at these developments. Headquartered in Lincolnton, Ga., Lee Builders is a premier builder in Savannah Lakes Village on Lake Thurmond, and has additional projects in Savannah, Ga., Augusta, Ga., and Clinton.

The builders first project in the Greenville area will be Governor’s Lake in Simpsonville, which will feature homes in the low $200,000s.

The Marchant Co. was founded in 1993. The company has recently expanded its offerings with full-service auction services, residential leasing and management services and a relocation services department.

Seabrook Marchant, President of the Marchant Company, is the Realtor Representative to the HBA of Greenville Board of Directors.

NAHB Launches Mortgage Interest Deduction Website

This week President's Obama's Deficit Reduction Commission will vote on a set of recommendations to the President and Congress for reducing the Federal deficit. Among the recommendations is a proposal to severely curtail the mortgage interest deduction. Clearly this proposal is of concern to Home Builders and could drive the Home Building Industry further into recession.

NAHB has launched a new website at www.SaveMyMortgageInterestDeduction.com to help provide both members and consumers with up-to-date information on the threat to the mortgage interest deduction.

The site, modeled after NAHB's successful federal home buyer tax credit site, separates the myths about the mortgage interest deduction from reality and contains fact sheets, frequently asked questions, press releases, media stories, statistics, reports, and more.

Most importantly, SaveMyMortgageInterestDeduction.com tells visitors how to stay informed and make sure their opinions are heard on this crucial issue by connecting through NAHB's Facebook and Twitter mortgage interest deduction communities and our Eye on Housing blog.

Rest assured that NAHB has been ahead of the curve on this issue on Capitol Hill and in the media, and has proactively developed cutting edge research and polling data to ensure that all of our members' interests are fully represented as this debate unfolds.

Update: The following is a statement from NAHB Chairman Bob Jones regarding the Deficit Commission's Proposal:

"While we commend the hard work of the President’s deficit commission to improve the nation’s fiscal situation, this is simply the wrong approach to the problem. It would put a huge tax increase on millions of middle-class home owners by eliminating or devaluing the mortgage interest deduction. The consequences would be devastating for housing and the economy. This would further depress home prices, putting countless more home owners underwater and triggering a new wave of foreclosures. Eliminating or scaling back this vital housing deduction will shrink the local tax base of many communities, causing already cash-strapped state and local governments to further cut jobs and essential services. Given the extreme fragility of the housing market, with 21 percent of construction workers currently idled, tampering with the mortgage interest deduction is just not sound public policy."

U.S. House Prices Fall 1.6 Percent in the Third Quarter; .3 percent in Greenville

U.S. house prices fell in the third quarter of 2010 according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI, calculated using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages, was 1.6 percent lower on both a seasonally adjusted and unadjusted basis in the third quarter than in the second quarter of 2010. Over the past year, seasonally adjusted prices fell 3.2 percent from the third quarter of 2009 to the third quarter of 2010. The quarterly report analyzing housing price appreciation trends was released today by FHFA.

In Greenville, home prices fell .3 percent during the quarter. In Anderson, home prices rose 1.4 percent. In Spartanburg, home prices rose 1.61 percent.

FHFA’s seasonally adjusted monthly index for September was down 0.7 percent from its
August value. The monthly increase for the July-to-August period was revised from an initial estimate of +0.4 percent to 0.0 percent (flat prices).

While the national, purchase-only house price index fell 3.2 percent from the third quarter of 2009 to the third quarter of 2010, prices of other goods and services rose 2.0 percent over the same period. Accordingly, the inflation-adjusted price of homes fell approximately 5.1 percent over the latest year.

FHFA’s all-transactions house price index, which includes data from mortgages used for both home purchases and refinancings, rose over the latest quarter. The index increased 1.1 percent in the latest quarter, although it is down 1.2 percent over the four-quarter period.

Significant Findings:

• Of the nine Census Divisions, the New England Division and the Mountain Division experienced the most significant price movements in the latest quarter. While prices rose 0.9 percent in New England, prices fell 4.0 percent in the Mountain Division.
• Seasonally adjusted, purchase-only indexes indicate that prices rose in the latest quarter in 13 states and the District of Columbia. Prices rose over the latest four quarters in 10 states and Washington, D.C.
• As measured with purchase-only indexes for the 25 most populated metropolitan areas in the U.S., four-quarter price declines were greatest in the Atlanta-Sandy Springs-Marietta, GA area. That area saw price declines of 10.1 percent between the third quarters of 2009 and 2010. Prices held up best in the San Diego-Carlsbad-San Marcos, CA area, where prices rose 4.6 percent over that period.

The complete list of state appreciation rates are on pages 17 and 18 of the report. Click here to download the entire report. The complete list of metropolitan area appreciation rates computed in a purchase-only series is on page 29 and all-transactions indexes are on pages 32 – 47.

Highlights
This quarter’s Highlights article analyzes the impact on the HPI of adding price information from county recorder data and FHA-endorsed mortgages. For the four states with the largest peak-to-current price declines, price trends for the “augmented” indexes are compared against developments measured in the standard HPI. Consistent with expectations, the augmented measures show greater price declines in the early part of the housing bust and slightly stronger price conditions in the latest recovery.

Local Comparisons
Since 1991, home prices have risen nationally by 90.6 percent, but have fallen 8.4 percent in the last five years.

In South Carolina, home prices have risen 80.4 percent since 1991 and have risen .7 percent in the last five years.

In Greenville metropolitan statistical area (Greenville-Mauldin-Easley), home prices have risen 10.2 percent in the last five years. In Anderson, home prices have risen 7.5 percent in the last five years. In Spartanburg, home prices have risen 6.29 percent in the last five years. MSA statistics are not available going back to 1991.