Exemptions to the Rule include:

1.      Repair/maintenance work where the disturbed area is no larger than 6 sq. ft. of interior painted surface, or 20 sq. ft. of exterior surface;

2.      A certification that the work area is free of lead-based paint (as determined using an EPA recognized test kit, and the kits they sell at Home Depot & Lowes do not qualify)

3.      Renovations by an owner to their own residence. This assumes that the owner is doing the work, not having it done by a property manager or contractor “friend”

4.      Some housing may be exempt if it is shown that no child under the age of 6 or pregnant woman resides or regularly visits there. Check with your attorney to see if you are exempt.

You can view the rule at: http://www.epa.gov/fedrgstr/EPA-TOX/2008/April/Day-22/t8141.pdf and you can also find information and sample checklists at www.epa.gov/lead/pubs/leadinfo.htm#remodeling.

What’s Happening in the Mortgage Industry?

The Housing and Economic Recovery Act of 2009 (HERA) is a wide-ranging piece of legislation that strengthens and modernizes the regulation of government-sponsored enterprises Fannie Mae and Freddie Mac, along with the Federal Home Loan Banks.

Part of HERA imposes sweeping changes in the lending industry, placing greater focus on consumer protection. HERA aims to assure borrowers are better informed about the loan process and better protected against deceptive lending practices.

These changes, effective July 30, 2009, will have a direct impact on how Realtors® structure their transactions and how lenders keep the consumer informed of loan charges through stricter disclosure requirements.

Four Key Elements

1. If the home buyer is financing the property, the new regulatory and investor guidelines will impact and perhaps even dictate the closing date. In the past, the parties to the transaction agreed upon a closing date and all service providers, including the lender, worked to meet that date.

After July 30, a closing date may still be written into the contract, but the earliest any home purchase transaction can close is 7 days after the homebuyer receives the initial mortgage disclosures from the lender.

2. With the exception of the credit report fee, the lender cannot collect upfront fees until the initial disclosures have been received. Disclosures that are overnighted are considered “received” the next business day (except Saturdays), allowing fees to be collected the following business day.

Historically, lenders could collect upfront fees immediately at the time of application for both telephone and in-person applications. Now, the buyer must receive initial disclosures before any fees can exchange hands. The single exception is the credit report fee, which can be collected at the time of application.

If a lender takes an application in person and delivers the disclosures at that time, the fee can be accepted at that time as well.

3. The homebuyer must receive a copy of his appraisal a minimum of 3 business days prior to closing. A homebuyer who believes the required 3-business-day review period is not necessary may waive that requirement in writing.

4. Any increase of more than .125% in the Annual Percentage Rate (APR) from the initial Truth in Lending Disclosure (TIL) requires that the TIL Disclosure be revised and reissued to the homeowner. The homebuyer must receive the revised TIL Disclosure at least 3 business days before the closing. If the TIL is mailed, it is considered “received” 3 business days after the mailing. It is typical for many details to change during the course of the transaction, including the APR, which can delay the closing.

The APR can be impacted by many details of the market and the transaction, including an unlocked rate, a change in the loan amount, a change to a different loan product, a rate re-lock because of market improvement, a change in closing date, and changes to fees associated with the transaction. If the closing date is critical, it is imperative that the lender ensure that the estimated fees are as accurate as possible.

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Molds are part of the natural environment.  Outdoors, molds play a part in nature by breaking down dead organic matter such as fallen leaves and dead trees, but indoors, mold growth should be avoided.  Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air.  Mold may begin growing indoors when mold spores land on surfaces that are wet.  There are many types of mold, and none of them will grow without water or moisture.

Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing.  Molds have the potential to cause health problems.  Molds produce allergens (substances that can cause allergic reactions), irritants, and in some cases, potentially toxic substances (mycotoxins).  Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals.  Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis).  Allergic reactions to mold are common.  They can be immediate or delayed.  Molds can also cause asthma attacks in people with asthma who are allergic to mold.  In addition, mold exposure can irritate the eyes, skin, nose, throat, and lungs of both mold-allergic and non-allergic people.  Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold.  Research on mold and health effects is ongoing.  For more detailed information consult a health professional.  You may also want to consult your state or local health department for more information.

Moisture and Mold Prevention and Control Tips

• Moisture control is the key to mold control, so when water leaks or spills occur indoors - ACT QUICKLY. If wet or damp materials or areas are dried 24 - 48 hours after a  leak or spill happens, in most cases mold will not grow.
• Clean and repair roof gutters regularly.
• Make sure the ground slopes away from the building foundation, so that water does not enter or collect around the foundation.
• Keep air conditioning drip pans clean and the drain lines unobstructed and flowing properly.
• Keep indoor humidity low. If possible, keep indoor humidity below 60 percent (ideally between 30 and 50 percent) relative humidity. Relative humidity can be measured with a moisture or humidity meter, a small, inexpensive ($10 - $50) instrument available at many hardware stores.
• If you see condensation or moisture collecting on windows, walls or pipes ACT QUICKLY to dry the wet surface and reduce the moisture/ water source. Condensation can be a  sign of high humidity.

Bringing the Dream of Home ownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

Which Properties are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, town homes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

1. The price of the home - the credit is equal to 10% of the purchase price of the home, up to $8,000.
2. The buyer’s income - single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 - may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income - over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/ she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

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