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Chester County Real Estate News: June 28th, 2010 Comments Off

West Chester increases rental licensing fee

West Chester Borough Council last week increased from $42 to $43.50 the annual licensing fee that landlords must pay to the borough for each rental they own. Council had considered increasing the fee to $43.33 until borough administrators said accounting would be easier if the fee were rounded down to a flat $43. But council did not want a fee that could result in the borough losing money. So instead of rounding down, the officials rounded up to $43.50. Arguments over such small sums of money are not trivial in light of the borough’s history with the West Chester Apartment Housing Association, a group representing borough landlords. Nearly a decade ago, the association sued the borough, claiming it had been charging more for license fees than it cost to inspect the rentals. The fee is intended to cover what it costs the borough’s codes department to ensure apartments and rooming houses are in compliance with borough code. In 2003, county Judge Juan Sanchez ruled the borough was charging more for the licenses than it cost to conduct inspections. Sanchez ordered the borough to return money to local landlords and follow a strict formula when calculating the license fees. This rule, which officials now call “the Sanchez Formula,” dictates the borough must charge no more for the fees than it costs to inspect the rentals.

Source: Daily Local; 6/22/10

Coatesville hires law firm to fight rate hike

With Coatesville residents facing three-fold hikes in their sewer bill, the city hired a law firm that specializes in public utility issues to help them fight Pennsylvania American Water Co.’s proposed rate hike. About six municipalities, including Coatesville, in PAWC’s service area are metered users and the city is trying to form a coalition. So far Parkesburg is willing to join and West Caln is thinking about it, City Manager Ted Reed said Thursday. The other three municipalities that have metered users are East Fallowfield, Highland and West Sadsbury.  The city hired Thomas, Long, Niessen & Kennard of Harrisburg, a firm that specializes in PUC matters, to analyze the Pennsylvania American Water Co.’s application to the PUC for the rate hike. The law firm will be looking for areas that it could argue to the PUC that PAWC’s proposed rate hike is not justified. The water company announced in April that it was seeking a rate hike of 229 percent for current residential customers and 191 percent for commercial customers.

Source: Daily Local; 6/18/10

Another round of proposals sought for redevelopment

The Flats, the 27-acre former G.O. Carlson site at the corner of Business 30 and Route 82, is back on the market and is attracting interest. Mosaic Development Corp., which had an agreement with the city to purchase the property for $2 million, is backing out. The developer’s proposal for the site centered around building a 82,000-square foot shopping center with a supermarket as an anchor. Fresh Grocer representatives initially indicated they were interested in building a store there. That deal fell through after it was revealed Fresh Grocer wanted a $2 million grant from the city and didn’t want to pay any city real estate taxes. Interim City Manager Ted Reed said the city didn’t have $2 million to pay Fresh Grocer and it was impossible to forgive all city taxes. The Coatesville Redevelopment Authority agreed Monday to return $50,000 it was holding in escrow to Mosaic. With two other developers interested in the site, the authority asked the Chester County Economic Development Council to help them write a set of developer’s criteria. The developer’s criteria, similar to any commercial real estate loan application, will answer questions such as does the developer have a sound business plan, does he/she have investment capital or equity to put into the project.

Source: Daily Local; 6/23/10

Oxford sewer plan in the home stretch

A new 537 Plan may finally be in sight for the Oxford Area Sewer Authority, as the latest version of the regional sewage disposal plan moves into the public comment phase before final submission to the state Department of Environmental Protection for approval. Authority Director Ed Lennex gave an overview of the plan at the authority’s board meeting Wednesday, and there will be a similar presentation at the next planning commission meeting for each member municipality. The remaining meetings are set for June 28 in East Nottingham and July 6 in West Nottingham. A copy is available online at the sewer authority Web site here. The authority also appears to have approval of a $27 million loan from the U.S. Department of Agriculture to help make the project possible. The USDA Rural Development published an environmental assessment of the authority’s project on April 28 for a 30-day comment period. There were five comments received and responded to, and an additional 10 days given for follow-up comments. Closing on the loan is expected before the end of June.

Source: Daily Local; 6/18/10

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Posted on: 06-28-2010
Posted in: Chester County, News

Chester County Real Estate News: June 14th, 2010 Comments Off

Pennsbury Township to consider U&O ordinance

Pennsbury Township Board of Supervisors will consider requiring Use and Occupancy inspections at point of sale. The proposed ordinance contains several points which are of concern to the Suburban REALTORS® Alliance, including a $200 fee for inspections. Click here for the full text of the proposed ordinance. The Pennsbury Board of Supervisors Meeting will take place on Wednesday, June 16 at 7 pm in the Pennsbury Township Building, 702 Baltimore Pike, Chadds Ford. Please email esmist@suburbanrealtorsalliance.com if you have any questions or plan to attend the meeting.

Coatesville Council considering revisions to budget

Coatesville City administrators have asked council to revise the city’s 2010 budget due to additional, unforeseen expenditures apparently omitted in the original spending plan. Administrators proposed a revised budget of about $10.7 million at a special meeting last week. The 2010 budget was originally approved at $9.9 million. Council Vice President Karl Marking said council previously thought any revisions would reduce the budget. Council expects to address the proposed budget revision at its June 14 meeting.

Source: Daily Local; 6/10/10

Great Valley passes budget with 1.5% tax increase

In a close vote Monday, the Great Valley School Board approved a $76.1 million budget for the 2010-2011 school year with a 1.5 percent millage increase. The increase will raise school taxes about $62 a year for the average household. Four board members voted against the measure and were in favor of raising taxes 2.9 percent, the maximum allowed under Act 1 without using exceptions.

Source: Daily Local; 6/9/10

Chester County working on stormwater ordinances

The Chester County Water Resources Authority is working with the county‘s 73 municipalities to brainstorm possible changes to stormwater management ordinances as part of an effort to develop a county-wide plan. Many of the surrounding counties either already have a county-wide Act 167 plan or are in the process of developing one. Act 167 requires counties to prepare and adopt stormwater managment plans for each watershed located in a county.

Source: Daily Local; 6/7/10

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Technorati Tags: Chester County, Real Estate News

Posted on: 06-14-2010
Posted in: Chester County, News

Chester County Real Estate News: June 1st, 2010 Comments Off

Tredyffrin supervisors study student housing

Tredyffrin Township Supervisors are considering an ordinance to regulate student housing. Either a by-right or special-exception ordinance could be enacted. A by-right zoning ordinance would state that use of a property would be approved as long as it was in compliance with the ordinance, and special exception means that the Zoning Hearing Board would decide if an applicant is complying with the ordinance. The special exception would require the applicant to go through the ordinance and show how their project achieves compliance. The township has received complaints about problems near homes being rented to students relating to noise, traffic, parking and property maintenance.

Source: Main Line Suburban Life; 5/26/2010

Groups urge county to maintain open-space preservation

A group of land preservation advocates met with the Chester County commissioners Wednesday to urge them not to reduce the amount of county tax dollars spent to save open space, but got no guarantees their wishes would be fulfilled. Although the commissioners said that no decision had been made on what level of funding they would commit in open-space preservation funds next year, county officials did lay out for the advocates just what a precarious financial picture awaits the county as it begins preparing a budget. The county faces a reduction in funding from state sources for a variety of programs — including human services, libraries, transportation and court operations — that it cannot ignore. At the same time, county tax revenues have flattened because of a stagnant real estate market, assessment appeals are up, and the county has had to fund an increasing amount for its employee pension fund. In the past two years, the county has set an annual contribution to the land preservation efforts of $20 million. There has been some fear in the land preservation community — and some suggestion from county officials outside the commissioners’ office — that the figure might be reduced by as much as 50 percent. The groups meeting with the commissioners included about 15 officials from the Natural Lands Trust; the Willistown Conservation Trust; Safety, Agriculture, Villages and Environment (SAVE); the municipalities of Honey Brook, West Vincent, and East Pikeland; and representatives of the Chester County Agricultural Land Preservation Board.

Source: Daily Local; 5/27/2010

Study focuses on future of Route 322 corridor

A new report released recently by the Delaware Valley Regional Planning Commission focuses on the Route 322 corridor, which was identified as an area that could be facing future congestion problems. Working with the Chester County Planning Commission, DVRPC conducted an analysis of the corridor to assess land use, environmental policies and impacts, and transportation issues. David Anderson, manager of the office of corridor planning at the DVRPC, said the study was started in 2008 and the first draft was completed about a year ago. It was then presented to local and county officials for their input. The corridor, a 15-mile section from the Lancaster County border in Honey Brook Township to U.S. Business Route 30 in Downingtown, was identified from a previous study as a roadway with the potential to face more congestion because of development pressure. The study area includes Downingtown and Honey Brook boroughs, and the townships of Caln, West Brandywine, East Brandywine, Honey Brook and West Nantmeal. According to the report, the current population of the study area is more than 44,000 people and is forecast to increase by 38 percent by 2035. It’s also forecast that Chester County will grow by 31 percent, but West Brandywine will grow by 59 percent and East Brandywine by 46 percent. The report forecasts that employment in the seven municipalities will also increase. In 2005, about 20,000 residents were employed in the study group municipalities with about 7,200 jobs in Downingtown and 7,254 jobs in Caln. DVRPC estimates that the total number of jobs will increase 24 percent by 2035 with most of the new jobs centered in Caln.

Source: Daily Local; 5/27/2010

West Pikeland to pursue public sewage plan

West Pikeland Township supervisors last week agreed to pursue a plan that will provide access by some residents to much-needed public sewage services. The township authorized engineer David Linahan to draft a public sewer plan for the Windolph Knoll area. Originally, officials thought more than 100 homes needed public sewer access. But on May 17, Linahan reported only 60 homes in the Pickering Estates area, east of Route 113 and south of Route 401, were in need. The cost for Windolph Knoll with capacity for 60 homes is unknown but will be paid by homeowners requiring the services, officials said.  Linahan will submit the draft plan to planning commissions for the township and Chester County and to the county health department. Once those officials review the document and the appropriate changes are made, the public will have a chance to comment. Linahan has been instructed to draft a plan and investigate alternatives for presentation at the board’s next meeting on June 21.

Source: Daily Local; 5/26/2010

West Chester schools approve tax increase

The West Chester Area School Board on Monday night approved a 2010-2011 budget that includes a 2.83 percent property tax increase. The average increase for the district’s Chester County residents will be $98, while the average increase for its Delaware County residents will be $28, according to district officials. The average tax bill in the district’s Chester County portion, where the average assessed home value is $189,950, will be $3,343; the average tax bill in the district’s Delaware County portion, where the average assessed home value is $289,443, will be $3,980. The district finance committee two weeks ago recommended a budget that included a 3.3 percent tax increase. Board member Maria Armandi Pimley on Monday proposed an amendment to that recommendation that brought the increase to 2.83 percent, and five of the eight board members present voted to accept her amendment.

Source: Daily Local; 5/25/2010

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Posted on: 06-1-2010
Posted in: Chester County, News

Chester County Real Estate Market better than most Comments Off

There seems to be a lot of “good” news floating around lately about the economy and housing. The Chester County, PA area real estate market is very strong comparatively speaking. But there is a reality check that needs to be made. Much of the information that is being consumed through main stream outlets are not telling you the whole story.

For instance, while home sales and even prices may have been up lately, these indicators are being propped up by government programs, namely the first time home buyer tax credit, which just ended. The reality is that behind the government programs, there is not enough to keep the market headed that way. In fact, next week, when I post the numbers for May, I guarantee you that the number of pendings will show serious signs of weakening.

I recently received some information by a very trusted mortgage consultant – Norm Miron with Wells Fargo, that concisely shows why I have concern. He pointed me to a fantastic blog at CalculatedRiskBlog.com which keeps up with the overall economic news. There I found some fairly disturbing news on national housing market I want to share with you. And please keep in mind that this information is national. And as you will see, the Chester County, PA real estate market is probably one of the strongest in the nation.

1. Negative Equity

Negative Equity – Click to Enlarge

This chart shows the percentage of Homeowners with negative mortgage equity, meaning they own more than their home is worth. This info is sorted by state and as you can see, Pennsylvania has one of the lowest rates. As Bill McBride at CalculatedRiskBlog.com says – “Ten percent or more of homeowners have negative equity in 33 states and the D.C., and over 20% have negative equity or near negative equity in 23 states and D.C. This is a widespread problem.”

2) Delinquent Loans by state

Delinquent Loans by State – Click to enlarge

This graph shows the percentage of loans that are delinquent in their payments. Red is by 90 days or more (Serious), blue is less than 90 days. Please note that a majority of these loans are fixed rate, prime loans. NOT the ARMS that have become notorious.

3) Mortgage Delinquencies and Foreclosures by Period Past Due, All Loans

Delinquent Loans by Period Past Due – Click to Enlarge

This graph is particularly disturbing. Bill McBride of CalculatedRiskBlog.com says it pretty well -

“Loans 30 days delinquent increased to 3.45%, about the same level as in Q4 2008.

Delinquent loans in the 60 day bucket increased too, and are also close to the Q4 2008 level. This suggests that the pipeline is still filling up at a high rate, but slightly below the rates of early 2009.

The 90+ day and ‘in foreclosure’ rates are at record levels. Obviously the lenders have been slow to start foreclosure proceedings – and the 90+ day delinquent bucket is very full. Also lenders have been slow to actually foreclose – and the ‘in foreclosure’ bucket is at record levels.

These seriously delinquent loans are the 4.3 million loans MBA Chief Economist Jay Brinkmann referred to as the “shadow inventory” on the conference call this morning. Not all are really “shadow inventory” since some of these loans will be modified, some will be cured (probably very few), and some are probably already listed as short sales. But it does suggest a significant number of distressed sales coming.

This highlights a couple more points that Brinkmann made this morning: 1) the largest category of delinquent loans are fixed rate prime loans, and 2) this is not just a “sand state” problem. Brinkmann argued the foreclosure crisis is now being driven by economic problems as opposed to the bursting of the housing price bubble – and this is showing up in prime loans and all states. Although Florida and Nevada are very high, notice that the blue bar (new delinquencies) are higher in many other states.

Thirty four states and the District of Columbia have total delinquency rates over 10%. This is a widespread problem.”

Conclusion – Folks, we ain’t outta the woods yet. The Chester County Real Estate Market is doing very well compared to the national market. Still, my best advice (DISCLAIMER – I am NOT a financial advisor) get your budget under control. Don’t spend any money you don’t have to. Get rid of debt. And if you HAVE to buy or sell any real estate, PLEASE make sure you hire the best. We, The Chris & Caleb Team, believe our record speaks loud and clear about our knowledge of this market. Contact us any time by calling 484.696.4833 or through this website.

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Technorati Tags: Foreclosures, National Market, Real Estate News

Posted on: 05-27-2010
Posted in: Chester County, Market Update, News

Chester County Real Estate News: March 15 Comments Off

Oxford reviews new law aimed at disruptive renters
Oxford Borough Council is waiting a week to gather additional information from the borough’s solicitor before deciding to advertise a new ordinance concerning rental properties. As the ordinance stands, any tenant, guest or owner of a residential rental who is loud or offensive or who disturbs other people to the point where their disturbance is reported to the police or to the borough’s code enforcement officer may be in violation. Tenants and guests may be subject to criminal prosecution, with fines up to $1,000. Owners who permit or tolerate the disruptive conduct are subject to civil action and fines. A first offense generates a warning. Second offenses can carry fines of $300, and a third offense can bring a $500 fine to the owner. Conviction of three or more offenses can result in the revocation of the owner’s rental permit. The borough has been working on the ordinance since December 2008 and changes have been made along the way. The definition of “disruptive behavior” was compiled from several similar ordinances in other municipalities. The ordinance is expected to come before council on March 15 for authorization to advertise in preparation for approval.
Source: Daily Local; 3/10/2010

New map of East Nottingham and Oxford approved
Oxford Borough Council members approved the creation of an up-to-date map of the area and its businesses. East Nottingham is already busy compiling a map of their area. About 4,000 copies of the maps will be mailed to residents in the coming months. Fifty extra copies will be made available at the borough office. The maps will be paid for by the advertisements contained therein and will be free of cost to both municipalities. Copies will also be sent to new homeowners.
Source: Chester County Press; 3/10/2010
Oxford reviews new law aimed at disruptive renters
Oxford Borough Council is waiting a week to gather additional information from the borough’s solicitor before deciding to advertise a new ordinance concerning rental properties. As the ordinance stands, any tenant, guest or owner of a residential rental who is loud or offensive or who disturbs other people to the point where their disturbance is reported to the police or to the borough’s code enforcement officer may be in violation. Tenants and guests may be subject to criminal prosecution, with fines up to $1,000. Owners who permit or tolerate the disruptive conduct are subject to civil action and fines. A first offense generates a warning. Second offenses can carry fines of $300, and a third offense can bring a $500 fine to the owner. Conviction of three or more offenses can result in the revocation of the owner’s rental permit. The borough has been working on the ordinance since December 2008 and changes have been made along the way. The definition of “disruptive behavior” was compiled from several similar ordinances in other municipalities. The ordinance is expected to come before council on March 15 for authorization to advertise in preparation for approval.
Source: Daily Local; 3/10/2010

New map of East Nottingham and Oxford approved
Oxford Borough Council members approved the creation of an up-to-date map of the area and its businesses. East Nottingham is already busy compiling a map of their area. About 4,000 copies of the maps will be mailed to residents in the coming months. Fifty extra copies will be made available at the borough office. The maps will be paid for by the advertisements contained therein and will be free of cost to both municipalities. Copies will also be sent to new homeowners.
Source: Chester County Press; 3/10/2010

Tredyffrin implements sidewalk plan
To prepare for sidewalk construction in Tredyffrin, set to start Tuesday, certain early action items such as tree removal and the installation of a retaining wall, have begun. According to township engineer Stephen Burgo, these items must be completed ahead of the sidewalk project. That project, which is expected to be completed by October of this year, involves laying down sidewalks on four roads around Tredyffrin/Easttown Middle School and Conestoga High School — Old Lancaster Road, Conestoga Road, Howellville Road and Irish Road — to enhance public safety and pedestrian mobility. The sidewalks are being built as a series and as part of an extensive transportation economic-recovery project. These sidewalks also will connect to other local schools, rail stations, parks and libraries to provide a safer route for students to walk to and from school as well as to local commuter rail stations and business districts.
Source: Daily Local; 3/12/10

Developer updates Marriott Hotel and office project in Coatesville
An attorney for the developer of Coatesville’s Marriott Hotel and office building project Monday night updated City Council on plans for the development. Attorney Ross Weiss said the developer plans to seek preliminary and final land development approval of the project from City Council in two weeks. The city’s Redevelopment Authority sold a 22-acre site off Route 82 and the Route 30 Bypass to Pulver for the hotel and office building project site last August. The city’s planning commission reviewed the plan and recommended its approval on Feb. 17, Weiss said. The city’s Zoning Hearing Board granted a special exception for shared parking of the hotel and office tower on Feb. 23.

Source: Daily Local; 3/12/10

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Posted on: 03-12-2010
Posted in: Chester County, News

Chester County Real Estate News at a Glance: Week of November 20th Comments Off

Merchants plan for future of Kennett Square

Kennett Square merchants have banded together to form the Kennett Area Restaurant and Merchant Association (KARMA), a member-supported association dedicated to promoting business and tourism in the borough. Their goal is to mold Kennett Square’s already quaint downtown district into an even quainter village, similar to New Hope in Bucks County. New Hope is famous for its antique shops and draws visitors from across the country. The concept is new, and the group is in its infancy. A board of directors is being formed, and 15 to 20 businesses have joined. The group meets the first Tuesday of every month and is looking for Kennett Square other merchants to join. The next meeting is at 7 p.m., Dec. 2 at the Brick Garage.

Source:  Daily Local; 11/14/09

Tredyffrin expects budget cuts but no tax hike

Tredyffrin Township’s proposed 2010 budget is balanced without a tax increase in sight. Township Manager Mimi Gleason presented the budget Monday at a supervisors meeting. The proposed spending plan includes a balanced general fund, the largest of Tredyffrin’s four funds. In total the proposed budget for 2010 is $32.6 million, which is $2.9 million less than 2009. The budget is to be discussed again at a public meeting at 7:30 p.m., Monday, Nov. 30, at the township building. For more information on Tredyffrin Township’s proposed 2010 budget, visit www.tredyffrin.org.

Source: Daily Local; 11/16/09

Easttown budget plan omits earned-income tax

Easttown Township’s administration plans to close a 2010 budget gap estimated at half a million dollars through a six percent real estate tax increase. The plan does not include an earned-income tax. The municipality is considering a budget that would, in addition to the tax increase, enact one or more of a host of other flat-rate taxes for residents, businesses, employees and visitors to some events. If the plan is approved by township supervisors, the newly implemented taxes are estimated to net the township about $285,000 in the first year, although newly taxes typically do not get a 100 percent collection rate in the first few years. Officials estimate that an earned-income tax would have brought in more than $1 million next year, but many residents opposed the levy. The final 2010 budget is to be adopted at the board’s Dec. 21 meeting.

Source: Daily Local; 11/16/09

Board seeking replacement for ousted West Vincent supervisor

During a rare Monday morning work session, West Vincent Township’s two remaining supervisors outlined their strategy for replacing a colleague removed from office last week by court order. Supervisors Kenneth Miller Jr. and Zoe Perkins have 30 days to find a suitable replacement. They announced Monday that they will be looking for letters, phone calls or e-mails from interested candidates. The decision must be rendered by Dec. 8 to adhere to the state’s 30-day deadline. The chosen replacement would sit on the board until 2011, when that seat would come up for a special election. The special election would determine the supervisor until 2013, when the position’s term was scheduled to end. The seat would then be back on its regular six-year cycle.

Source: Daily Local; 11/17/09

Residents applaud decision to hike West Pikeland taxes

West Pikeland Township supervisors were not only applauded by residents for their approval of a motion to increase the township’s property taxes at their last meeting, they were also encouraged to raise them even higher. The board approved a tax increase from 0.125 mills to 0.2 mills. Residents currently pay between $30 and $40 annually in township property taxes. This increase will bring the average up to between $50 and $60.The other major sources of revenue for the township are earned income taxes and real estate transfer taxes. Revenue from those sources have been decreasing over the last few years. The proposed 2010 budget was balanced before the tax increase and even accounted for a greater surplus than the township will see in 2009. The 2009 surplus will amount to approximately $16,000, while the budgeted surplus for 2010 is approximately $77,000.

Source: Daily Local; 11/17/09

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Posted on: 11-23-2009
Posted in: Chester County, News

Chester County Real Estate News at a Glance: Week of November 13th Comments Off

Chester County Commissioners adopt Landscapes2

Chester County Commissioners adopted Landscapes2, the county’s updated comprehensive land use policy plan, at a public hearing on Monday. The resulting plan establishes a blueprint for bringing growth and preservation together for Chester County. The plan sets in place three initiatives for guiding the future of the county. These initiatives will be accomplished through the collective implementation of the policies and actions established by this plan:

•Build working partnerships. The county will join with municipal governments and stakeholders to develop productive partnerships that champion specific actions to achieve the vision of Landscapes2.

•Create sustainable communities. The county will work with the state and municipal governments, and other partners to build and enhance sustainable communities within designated growth areas.

•Keep Chester County green. The county will advocate for a green sustainable future.

Source: Daily Local; 11/11/09

North Coventry votes in favor of well water

North Coventry Township Supervisors voted in favor of beginning the process of creating a township-owned and -operated public well water supply. The decision paves the way for the North Coventry Water Authority to seek out all necessary permits and begin development of a municipal well. No location has yet been selected for placement of a well. However, the township had earlier identified three potential sites, and now the water authority will need to select one. Any site chosen will need to be tested to determine its yield and its effect on neighboring wells. The potential sites include one at the corner of Route 100 and West Cedarville Road — directly across from Town Square Plaza. A second site was recommended on Laurel Locks Farm, and a third in Kenilworth Park. Currently, about 25 percent of township residents use public water, which the township purchases from the Pottstown Water Authority. That water is drawn from the Schuylkill River. The supervisors’ decision to create a township well won’t completely change that, as well water must be supplemented by borough water in order to ensure an adequate supply. The North Coventry Water Authority has argued that by having a municipal well, the township will be able to better control rates and water quality for residents.

Source: Daily Local; 11/12/09

West Chester panel urges 3.4% tax hike

West Chester Borough Council’s finance committee Monday recommended council adopt a preliminary 2010 budget that calls for a 3.4 percent property tax increase. The preliminary budget would cause the average borough homeowner’s tax bill to rise to $689, an increase of $23 over last year’s average, officials said.

The average single-family home in the borough has an assessed value of $119,000, and the average tax increase was calculated using this figure, officials said. Borough Council is likely to pass a preliminary budget at its Nov. 18 meeting and pass the final budget in December. Finance committee members said that between now and December, borough administrators will try to reduce the real estate tax hike. But they warned the borough is facing financial difficulties that will likely make a tax hike inevitable.

Source: Daily Local; 11/11/09

Slight increase in Oxford Borough’s preliminary 2010 budget

Although the Oxford Council members had hoped to come up with a budget with a zero-percent increase, rising costs brought in the budget at $3,102,935, an increase of $13,338 over last year. This translates into a projected millage increase from the current 9.75 mills to 9.79 mills. For a house assessed at $100,000, this would be about $75.00 for the year. Council members expressed concern about projected shortfall in revenues caused by the reduction in real estate transfer taxes due to reappraisals and the soft housing market.

Source: Chester County Press;11/11/09

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Posted on: 11-16-2009
Posted in: Chester County, News

What you need to know about changes to the Truth in Lending Act Comments Off

I recently found an article regarding the recent changes in the “Truth in Lending Act” and anyone looking to buy a home in the near future should be familiar with this information, as it could effect the time frame for settlement. I have included part of the article below, but in respect for the writer, click here to read the entire article

By now it’s well known in the real estate industry that the Truth in Lending Act (TILA) has been amended. There’s a great deal of concern and uncertainty about these changes, how they may affect real estate settlements and how they relate to the changes in RESPA [1] that become mandatory on January 1, 2010.

The changes to TILA went into effect on July 30 and are intended to help a prospective borrower understand the terms and costs associated with the loan they are pursuing. Lenders are required to disclose the costs of the loan (finance charge) as a dollar amount as well as the loan’s annual percentage rate. Requiring uniformity among lenders is intended to help consumers shop among lenders for the best loan. Lenders must now provide this initial disclosure to any dwelling-secured mortgage loan that is subject to RESPA and the disclosure must be given within three business days of the lender receiving the consumer’s application.

Two major changes are encompassed by this amendment. First, TILA now applies to all loans that are subject to RESPA. Previously, TILA applied to only those transactions in which the consumer was purchasing or building his principal dwelling. Because of this change the initial – or early – disclosure must be provided when a consumer (a) buys or builds a home; (b) buys or builds a second or vacation home; or (c) refinances a mortgage with a new mortgage. This is not an exclusive list of the transactions that require TIL disclosures, it is an example of how the law has expanded. The TIL early disclosure is also required when the person (primarily) responsible for the loan is not the primary resident. The determining factor is whether the loan was extended for consumer credit. Importantly, the TIL disclosure requirements still do not apply to loans that are primarily for business purposes. Thus, investment properties in which the owner does not intend to live probably do not fall within the TIL umbrella.

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Posted on: 10-27-2009
Posted in: Market Update

Chester County Real Estate News at A Glance: Week of October 26th Comments Off

Easttown residents opposed to Earned Income Tax

Facing a forecasted operating deficit of as much as $1 million for 2010, the township has been exploring the implementation of one or more Act 511 taxes (often referred to as “nuisance taxes”) including an Earned Income tax (EIT)—an unpopular revenue-generator in Southeastern Pennsylvania. Many of the 250 residents who attended the last Board of Supervisors meeting told the board that it should consider cuts before raising the existing property taxes or implementing new taxes. The municipality was hit hard in its realty transfer tax revenue this year, which has served as 20 percent of the township’s annual operating revenue.

Source: Main Line Suburban Life; 10/21/09

WCASD tax hike may exceed state cap

Although the state has set the West Chester Area School District’s 2009-2010 Act 1 index to 2.9 percent, taxpayers may see a school tax increase of more than 2.9 percent. The millage increase could be as high as 5.24 percent, according to district officials. Last year, for example, the school district’s Act 1 index was set at 4.1 percent, but the school board, because of exceptions, was able to raise taxes in the Chester County portion of the district by 5.9 percent. This year, the West Chester district had expected to have one exemption, which would have applied to $418,000 of the interest the district pays on the bonds it issues. But on Monday, district officials announced that the district could potentially qualify for two more exemptions: a $1.6 million retirement contribution exemption and a $1.1 million special-education exemption. The Pennsylvania Department of Education must approve these exemptions. If it does, the school board could raise millage by 5.24 percent without first holding a taxpayer referendum, officials said.

Source: Daily Local; 10/23/09

Upper Uwchlan officials appoint new manager

After going more than seven months without a township manager, Upper Uwchlan supervisors unanimously appointed a new manager Monday night. The board selected Cary Vargo to fill a spot vacated in March after the board fired John Roughan Jr. Vargo’s annual salary will be $95,000 for a 90-day probationary period, after which his pay rate would jump to $100,000 a year. Vargo comes to Upper Uwchlan after serving as township manager in Thornbury for more than two years. Prior to that, Vargo served as a Coatesville police corporal. He had served on the force for eight years.

Source: Daily Local; 10/20/09

Chester County lands $4.6 million stimulus grant

Chester County Commissioners Chairman Terence Farrell announced the county has received a $4.6 million federal stimulus grant. The grant will cover the cost of 17 projects intended to make county facilities more energy efficient. The money will be used for energy audits, LED lighting, solar panels and more efficient heating and cooling systems.

Source: Main Line Suburban Life; 10/21/09

West Chester officials recommend council mandate rear house numbers

Three of Borough Council’s committees voted this week to recommend that council pass a regulation that would require borough residents to put their addresses on the back of their properties. Council members said this regulation would make it easier for police, firefighters and drivers of emergency medical service vehicles to identify houses. This is especially true, they said, in the case of homes that have rear alleys where emergency vehicles sometimes need to travel. Rear addresses could also make it easier for the codes department to identify homes with backyard code violations.

Source: Daily Local; 10/17/09

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Technorati Tags: Chester County Real Estate News, news, Real Estate News

Posted on: 10-26-2009
Posted in: News

City OKs plans for The Flats – The Daily Local News : Serving Chester County Comments Off

City OKs plans for The Flats – The Daily Local News : Serving Chester County

This is a view of The Flats at the former G.O. Carlson metal polishing facility off Lincoln Highway. Staff photo by Amy Dragoo

COATESVILLE — City council unanimously approved both projects for The Flats Monday night — Chetty Builders’ proposed 98 townhome development and Mosaic Development Partners planned shopping center.

Prior to the vote on Mosaic’s plan, City Councilman Ed Simpson bluntly told the audience how difficult it has been to attract developers to the site.

“People are not banging down the door. This property has been put out to bid at least twice over the last six years and no one has stepped forward with a plan,” said Simpson.

City Manager Harry Walker agreed.

“Over the last three years, the Redevelopment Authority put together a request for qualified developers and a request for proposals and from that we got one developer. We negotiated for nine months and they were unwilling to pay anything for The Flats,” Walker said.

Mosaic is paying $2 million for the southern half of the 26-acre former G.O. Carlson site just north of West Lincoln Highway and west of Route 82 next to the Brandywine Creek.

Council President Marty Eggleston said he has been one of the biggest skeptics of Chetty Builders.

“We finally go the information we asked for,” Eggleston said following the vote.

Councilwoman Patsy Ray echoed Eggleston’s comments.

“I’m not a big fan of Chetty, but after looking at the research. We need to bring something to Coatesville. One project comes, others will follow,” said Ray.

While Chetty did not give a presentation Monday of his project, the principal owners of Mosaic, Leslie Smallwood-Lewis and Gregory Reaves, presented a plan called Stone Bridge Crossings for the site.

The biggest attraction is a proposed Fresh Grocer supermarket for the site. Officials from Fresh Grocer had visited Coatesville and were interested. One reason for that, said Small-Lewis, is that the company already has a lender for the $26 million project — the nonprofit, Philadelphia-based company Re-Investment Fund.

Simpson questioned the developer what would happen if they got control of the land and were not successful.

With the approval, the developer will give a deposit but there won’t be a deed to the land transferred to them.

“If we find that this doesn’t work, the land will go back to the RDA,” said Smallwood-Lewis.

Many residents who spoke during the public comment period before the vote were suspicious of Mosaic. One citizen said the company had no proven track record and urged council to wait for another developer. Supportive of Chetty Builders were several residents, including Nancy Potts, who lives at Millview, one of Chetty’s developments.

“I want to put my support behind Mr. Chetty,” Potts said, then added that residents at Millview have been waiting years for him to finish the development.

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Technorati Tags: 19320, Coatesville, Real Estate News

Posted on: 06-22-2009
Posted in: Chester County, Coatesville
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