The big news this week is the signing of the $789 Econmic Stimulus Package. The original $15,000 credit has been scaled back to $8,000, but  drops the repayment feature for buyers who hold on to their property for at least three years. Here are some of the other highlights in the bill that pertain to housing:

• FHA and conforming loan limits: The 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.
• Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.
• Rental assistance. Up to $1.5 billion for short-term rental assistance and other aid for families during the economic crisis.
• Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects, and $5 billion to weatherize low-income homes.
• Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.
• Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, and Increases in the residential tax credit through 2010 for certain energy efficient upgrades.

This Week’s Real Estate Insight:

According to The National Association of Realtors, eliminating the repayment provision on the first-time homebuyer tax credit could drive more than 200,000 additional home sales, which will help stabilize home values. The National Association of Home Builders had estimated a $15,000 tax break for all homebuyers would have generated nearly 500,000 home sales

 

 listen to this week's show here: [48:12m]: Play Now | Play in Popup | Download

Environmentally Sensitive homes are becoming more Mainstream.

There were about 50,000 environmentally friendly homes built in the US between 1990 and 2000. Mounting energy costs and concerns about the environment, as well as more and more municipal building code requirements-are transforming what was once a curiosity into a mainstream phenomenon

According to the National Association of Home Builders, 88% of those polled said that they are building or planning to build a larger share of smaller homes, and 89% said they’re planning on building more lower-priced models. The average size of homes started in the third quarter of 2008 was 2,438 square feet, down from 2,629 square feet in the second quarter.  

Add to that a Better Homes and Gardens survey in which 90% of those who participated said they’re planning to have energy-efficient heating and cooling systems in their next home and 31% plan to have geo-thermal heat. There has also been increased interest in home gardens, with more people wanting to know where their food is grown.  

This week Rich and Steve spoke with Brad Hyson, Executive Director of The Apeiron Institute For Sustainable Living to talk about their efforts to make Rhode Island the nation’s first sustainable State.  The Apeiron Institute launched Sustainable RI as the Rhode Island Sustainability Coalition in 2001 to put “sustainable” thinking at the heart of how we grow and develop our state.  The Coalition, with more than 50 partners, can point to a number of successes including:

• Launching an energy cooperative, People’s Power & Light that now supplies renewable energy to over 3,000 users
• Expanding International Walk to School Day from 1 to 8 school districts
• Establishing the RI School Gardens Coalition, now the Children’s Garden Network  
• Creating the Sustainable RI Directory - a sustainability clearinghouse with over 1,000 sustainable listings & resources
• Developing the RI Sustainable Living Festival as the premier sustainability event in the region

Those interested in learning more about sustainable living can visit the Center for Sustainable Living, this model house showcases more than fifty environmentally friendly systems, technologies, and products, including: passive and active solar energy systems, natural, recycled and non-toxic building materials and construction, radiant flooring, and landscaping. The Center’s exhibits explain all the features, including how they differ from traditional systems, their cost-effectiveness, and their payback periods.

This Week’s Real Estate Insight:

Green building provides safer, healthier, more comfortable homes with economic benefits like lower energy and water bills, reduced exposure to mold and mildew and other indoor toxins. Green homes are quieter and tighter and the residents save money on their utility bills.

 

 listen to this week's show here: [47:38m]: Play Now | Play in Popup | Download