Treasury announces $268 Million more in Recovery Act Funds

From the Press Room of the US Dept of the Treasury

June 22, 2009
TG-180

WASHINGTON – As part of the Obama Administration’s effort to create jobs and ease pressures on the housing market, the U.S. Department of the Treasury today announced $268 million in American Recovery and Reinvestment Act (Recovery Act) funding to spur the development of affordable housing units in Indiana, Missouri, Tennessee, and Washington D.C.

“Today’s announcement of housing funds demonstrates how President Obama’s Recovery Act is putting our nation on the path to economic stability, one community at a time,” said Treasury Deputy Secretary Neal Wolin. “This initiative will help spur construction and development, create much needed jobs, and increase the availability of affordable housing for families around the country.”

The labor and housing crises in this country are deeply inter-connected. Since their peak level at the beginning of 2006, housing starts have fallen 80 percent. Houses currently under construction are at a 13-year low, down more than 60 percent from the peak in the first quarter of 2006. This collapse has led to severe job losses in the residential building and specialty trades sector related to housing, with employment down by nearly one-third — a loss of over one million jobs. Such losses not only indicate significant problems in the residential construction sector, but also suggest that the need for affordable housing has risen markedly during the recession.

In response, the Department of Housing and Urban Development and the Treasury Department have been implementing new efforts designed to help homeowners while providing important assistance to homebuilders. Specifically, Treasury has launched an innovative program that will provide more than $3 billion from the Recovery Act to put people to work building quality, affordable housing for individuals and families affected by the current crisis.

The Treasury Department will work with state housing agencies to jump start the development or renovation of qualified affordable housing for families across the country. Under this program, after meeting certain eligibility requirements, state housing agencies will receive funding to construct affordable housing developments.

Today, the Treasury Department is announcing the second round of recipients: $164 million in Indiana; $17 million in Missouri; $53 million in Tennessee; and $ 33.7 million in the District of Columbia.

The funds announced today are the second round in a series of awards based on a rolling application process. The Treasury Department anticipates making similar announcements in the coming weeks. To view the terms and conditions for the Treasury application, please click here.

For further information on local projects, please contact:

Indiana Housing and Community Development – David Kaufmann, (317) 324-0934
Missouri Housing Development Commission – Andi Benson, (816) 759-6658
Tennessee Housing Development Agency – Patricia Smith, (615) 815-2185
DC Department of Housing and Community Development –Angelita Colon Francia, (202) 442-7277

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President Obama to Announce Comprehensive Plan for Regulatory Reform

President Obama to Announce Comprehensive Plan for Regulatory Reform

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June 17, 2009
TG-175

President Obama to Announce Comprehensive Plan for Regulatory Reform

WASHINGTON – President Obama will lay out a comprehensive regulatory reform plan this afternoon to modernize and protect the integrity of our financial system. While this crisis has had many causes, it is clear now that the government could have done more to prevent these problems from growing out of control and threatening our overall economy.

The President will be joined by Treasury Secretary Tim Geithner, representatives from the regulatory community, consumer groups, the financial industry and me mbers of Congress for an event in the East Room later this afternoon.

The President’s plan will:

– Require that all financial firms that pose a significant risk to the financial system at large are subjected to strong consolidated supervision and regulation
– Increase market discipline and transparency to make our markets strong enough to withstand system-wide stress and the potential failure of one or more large financial institutions
– Rebuild trust in our markets by creating the Consumer Financial Protection Agency to focus exclusively on protecting consumers in credit, savings, and payment markets.
– Provide the government with the tools needed to manage financial crises so it is not forced to choose between bailouts and financial collapse
– Raise international regulatory sta ndards and improve international coordination

Below are Links to the White Paper and Fact Sheets:

White Paper: Financial Regulatory Reform:
http://www.financialstability.gov/docs/regs/FinalReport_web.pdf

Fact sheets:
http://www.financialstability.gov/docs/regulatoryreform/requiring_strong_supervision_reg_finfirms.pdf
Requiring Strong Supervision And Appropriate Regulation Of All Financial Firms

http://www.financialstability.gov/docs/regulatoryreform/strengthening_reg_core-markets_infrastructure.pdf
Strengthening Regulation Of Core Markets And Mar ket Infrastructure

http://www.financialstability.gov/docs/regulatoryreform/strengthening_consumer_protection.pdf
Strengthening Consumer Protection

http://www.financialstability.gov/docs/regulatoryreform/providing_govt_tools_manage_fincrisis.pdf
Providing The Government With Tools To Effectively Manage Failing Institutions

http://www.financialstability.gov/docs/regulatoryreform/improving_internatl_reg_standards_co-op.pdf
Improving International Regulatory Standards And Cooperation

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FILE FOR PROPERTY REASSESSMENT: July 2, 2009 – November 30, 2009

(info taken directly from Sacramento County Assessor website at http://www.assessor.saccounty.net/DeclineinValueReassessments/SAC_ASR_DF_Decline_Value)

**DOWNLOAD RE-ASSESSMENT APPLICATION HERE**

Decline in Market Value (Prop 8)
Inquire about the availability of documents in alternate formats.

Proposition 8, passed in November 1978, amended Proposition 13 to recognize declines in value for property tax purposes. As a result, Revenue & Taxation Code Section 51 requires the Assessor to annually enroll either a property’s Proposition 13 base year value factored for inflation, or its market value as of January 1st, whichever is less.

Decline in market value, Prop 8 assessments, are TEMPORARY reductions that recognize the fact that the market value as of the January 1 lien date of a property has fallen below its current Prop 13 factored value. Once a Prop 8 reduced value has been enrolled, that property’s value must be reviewed each year as of the January 1st lien date, to determine whether its market value is less than its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again enroll its Prop 13 factored value. In no case may a value higher than a property’s Prop 13 factored value be enrolled.

Properties enrolled under Prop 8 provisions are not subject to the 2% annual increase limitation that applies to those enrolled under Prop 13 provisions.

The Prop 8 Process is as follows:

Property owner provides Assessor with facts they feel justify a reduction in value and requests a review of the property’s value. (The Assessor may initiate the review if the problem is discovered independently*.)

Appraisal staff reviews market data, estimates the property’s market value as of January 1st and then compares this market value to the property’s current Prop 13 factored base year value.

If the January 1 market value is below factored Prop 13 value, then:

Assessed value is lowered to market value for next fiscal year.
Owner is notified of reduced value.
New tax bill is based on lower value for next fiscal year.
The following year, Assessor repeats process and enrolls the January 1 market value at that time or Prop 13 factored value, whichever is lower.
If January 1 market value is higher than factored Prop 13 value, then:

No change in assessed value is made, and
Owner is notified that value will not be reduced.
If owner still feels value should be reduced, then owner may file an assessment appeal with the Assessment Appeals Board, from July 2nd – Nov 30th each year.
Appeals Board hears evidence from owner and Assessor; the Board then determines proper assessed value
*The Assessor may also initiate the Prop 8 process without a request from an owner.

The office constantly monitors market conditions and, when practical, lowers assessed values on a mass basis. Owners are notified and may file an Assessment Appeal if they feel the value was not lowered sufficiently. Read more about the Assessment Appeals process and deadlines.

Although the market values of all properties may suffer a significant decline during a recession, not all will qualify for a Prop 8 reduction. The current market value must fall below the Prop 13 factored base year value (assessed value) before the Assessor can recognize the decline. Following are examples of how the Assessor processes declines in value.

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Examples of Assessments Involving Properties Declining in Value:

Example 1

Home purchased January 2005, for $400,000 and assessed with $400,000 base year value.

On January 1, 2006, factored base year (assessed) value is $408,000 ($400,000 +2% inflation) but market value has declined to $300,000.

Action: Assessor reduces assessed value to $300,000 for 2006-2007 assessment roll.

On January 1, 2007, the home’s value continues to decline and is now $280,000, while its factored base year value has risen to $416,160 ($400,000 +2% inflation compounded for 2 years).

Action: Assessor reduces assessed value to $280,000 for 2007-2008 assessment roll.

On January 1, 2008, the homes market value increases to $350,000 while its factored base year value rises to $424,483 ($400,000 +2% inflation compounded for 3 years).

Action: Assessor raises assessed value to $350,000 for 2008-2009 assessment roll.

On January 1, 2009, the home’s market value increases to $450,000 while its factored base year value rises to $432,972 ($400,000 +2% inflation compounded for 4 years).

Action: Assessor reinstates factored base year value of $432,972 for the 2009-10 assessment roll.

Example 2

Home is purchased in 1986 for $130,000.

On January 1, 2005, the current market value of the home has risen to $300,000 well above its Prop 13 factored base year value of $185,713 ($130,000 + 2% inflation compounded for 19 years).

For January 1, 2006, the market value falls to $200,000. This is still above the Prop13 factored base year value of $189,427 ($130,000 + 2% inflation compounded for 20 years).

No Prop 8 reduction is granted for the 2006-2007 assessment year, even though the property has lost $100,000 in value over the last year. The factored base year value ($189,427) is still less than the market value ($200,000).

It is important to understand that Prop 8 reductions are not permanent and may decrease or increase more than 2% from year to year. Also, Prop 13 base year values suspended by Prop 8 values continue to increase by an annual inflation factor of no more than 2% per year.

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If you have other questions about the Decline in Value Prop 8 process, you may direct them to the Assessor’s Real Property Duty Appraiser at (916) 875-0700, between 9 A.M. and 4 P.M., Monday through Friday. You may also visit the Duty Appraiser in person at 3701 Power Inn Rd, Suite 3000, Sacramento, CA 95826-4329, between 8 A.M. and 5 P.M.