The Pilgrims and Property Rights

As we enjoy this Thanksgiving weekend, we must give thanks for property rights, which is central among the foundation of our republic. Reason TV explains how our Ancestors got fat and happy:



HT/CARPE DIEM via ReasonTV

Amendment 4 Attacks Property Rights

Amendment 4, also known as the Hometown Democracy Referendum, is a very serious threat to property rights. Excessive governmental regulatory influences on property owners to utilize their property in legal fashion is not only an attack on the property owner, but all consumers.

The Coalition for Property Rights has presented a brief summary on the amendment, and the following video is quite informative.



Please join the Coalition for Property Rights and various other organizations for a Land Rights Rally BBQ cookout. See the following schedule:

The Coalition for Property Rights

An old-fashioned LAND RIGHTS RALLY & BBQ

Friday, September 10th 11:30 - 1:00 p.m.

Sorosis Club, 501 East Livingston Avenue, Orlando

Passage of this amendment would be a very serious blow to the economy of Florida, and would allow government to seize more of your rights, further reducing your liberty our founding fathers fought so hard for.

Thomas Sowell on Property Rights

On his new program Freedom Watch, Judge Andrew Napolitano speaks with famed economist Dr. Thomas Sowell of The Hoover Institution.



Like many other of our founders concepts, property rights are under attack. Most Americans do not realize that the cost of the erosion of these rights is felt even by those who are not property owners.

Certainly, this interference also has a negative impact on property values.

Foreclosure Statistics Scary

Gerri Willis of The FOX Business Network breaks down some of the foreclosure statistics, and they are not pretty.



This may be the summer of recovery in the minds of those in the cabinet, but get ready for the double dip!

Are You Over Assessed?

Over the last half decade or so, it has been a real roller coaster for real property owners. An unusual spike in demand and easy money propelled values to historic highs versus the moving average only to come crashing down regressing to values of a decade ago in some cases. Among the carnage left to deal with for property owners is an assault on property rights, historically tight credit and massive properties in distress dragging down the value of your property. You are wondering where to hide!

For property owners, few steps can now be taken to reduce your financial exposure without parting ways with the property. However, perhaps an opportunity for relief recently arrived in the mail in the form of the TRIM (truth in millage) notice you received in mid-August. Certainly, during the home value escalation the local assessors offices kept pace nicely raising assessed values in unison, but have they been equally efficient during the recent downturn in bringing the values back down?
In our capacity as residential real estate appraisers, we notice that approximately two thirds of residential real estate is over assessed, meaning the assessed value the property taxes are based off of exceeds the current market value. The end result is the property owner paying higher property taxes than the market would dictate.

What can cause a property to be over assessed? For starters, the physical characteristics of the building could be in error, most notably living area square footage. Although each year stands on it's own, an error here could represent a significant amount of excess payment over time. In the current environment, perhaps the distressed sales in a particular neighborhood were not given enough weight.

For a myriad of reasons, it is a prudent measure for all property owners to perform due diligence in investigating the assessed value and how it relates to market value. The appeals process is not overwhelming, but there are deadlines that are strictly adhered to. Please refer to your TRIM notice for details regarding the avenues for appeal and the deadline dates as each county is slightly different.

In this competitive marketplace, opportunity cost is more significant than ever. Certainly, if you require assistance, Accurate Property Values would be happy to assist you. Please feel welcome to visit us at our table at the CFRI General Meeting in September or call us at 407-488-6458.

Lessons Not Learned

Unfortunately, the financial bill (FINREG) has passed. Crafted by two of the top members of the architectural team of the housing crisis, Rep. Barney Frank (D;MA) and Sen. Chris Dodd (D:CT), this bill be deal a serious blow to the consumer. In addition, it will add further negative pressure on the housing market long term.

FOX Business takes up the potential effects in the following interview:



The new bill, over 2000 pages with many of the particulars of the legislation yet to be firmed up, will simply be devastating to small business and consumers. Governmental regulation increases costs which limit the choices of the consumer.

The banks will not be free to lend as they see fit, in their own communities taking into account current local market conditions, but will be governed under the new regulatory framework of this bill. It certainly will make effort to secure credit by the consumer more costly and much more difficult to obtain.

While we had to pass it find out what in it, there have been some real distressing items uncovered, from regulations on insurance to affirmative action hiring quotas for Wall Street.

Among the more puzzling items, the bill does absolutely nothing to rein in Fannie Mae and Freddie Mac, the government sponsored entities which contributed greatly to the housing crisis. Imagine that! CNBC has more:



The bill, signed in a ceremony at the Ronald Reagan Building, is insulting as it is in direct opposition to the principles and economic beliefs Reagan championed.

It would be great for Americans to let the following sink in: Free Market Capitalism is the best path to prosperity!

A King In His Own Court

Andrew Cuomo, who is running for Governor of New York, thinks quite highly of himself. Curtis Sliwa goes on the offensive to call Cuomo out at a recent convention of Democratic leaders.



Need a refresher on the origins of the housing crisis?



Andrew Cuomo was Housing and Urban Development Secretary under President Bill Clinton and forced Fannie Mae and Freddie Mac to make loans to low income candidates who under normal criteria would fail to get loans. This practice directly led to the collapse of the housing market when values backed up, unemployment rose and those sub prime loan recipients failed to satisfy their obligations.

Cuomo was not done. In the aftermath of the crisis, he implemented the Home Valuation Code of Conduct, which has turned the appraisal market upside down, killing jobs and lowering the quality of appraisals under non regulated appraisal management companies. This law is a direct assault on free market capitalism.

Cuomo represents that government, under elected officials who "are much smarter than you are" implement regulatory action that business owners must adhere to, raising costs to all associated. These regulatory actions serve as a tax, which increases costs, limits choice and hampers economic activity.

Andrew Cuomo is a candidate who has caused excessive damage to our economic system through his efforts in affirmative action and has not been held accountable. I hope the voters in New York will do just that, hold Cuomo accountable and deny his bid to become Governor of New York.

Get The Lead Out!

I recently attended a continuing education class and had to tackle my wallet as it bolted for the door. In what can only be described as a staggering example of an overreach of governmental regulation, the EPA has implemented new costly regulatory measures to combat potential issues involving lead based paint, which is found in buildings constructed before 1978. An NBC affiliate has more:



The Better Business Bureau offers further explanation.

Like the greater majority of governmental intervention in the marketplace on behalf of the consumer, the new requirements, which are beyond extensive, are going to cause significant strains to an already bludgeoned housing industry and small businesses in supporting industries. Jeremy Drobeck of 1st Class Mortgage Service is not happy. Take a listen:



FOX Business's Dagen McDowell and Brian Sullivan have more:



The Wall Street Journal thinks you are willing to suck down more costs to defend against lead based paint, but FOX Business's Brian Sullivan sums up the unintended consequences. Property owners who own homes built prior to 1978 who are considering repairs face an estimated 25% in additional costs per project as businesses must pass along the extra costs of completing the job. These additional costs serve as a tax raising expenses which could make these renovations cost prohibitive.

As a property owner of these type of properties, I will now refrain from taking on upgrading projects that fall under the new EPA requirements. In my capacity as an investor, I will be much more inclined on purchases for renovation and for long term holding to seek out buildings built after 1978. Since I am no doubt not alone in this mindset, in my capacity as an appraiser perhaps a negative adjustment should be applied to all homes built before 1978 due to the extra costs associated with any repairs that may be required going forward.

Who will enforce these regulations anyhow, since county code enforcement workers are plenty busy already. Could it be the 6000 person civilian army President Obama has recently implemented?



Currently, our government is engaging in the installation of excessive regulations, much in support of global warming from cap and trade, that will severely handicap economic growth and prosperity. These regulations take the form of a tax, and you need not be Milton Friedman to recognize that when you tax something, you get less of it. With the implementation of the looming cap and trade bill, the residential governance on the energy efficiency of improvements and this overreach regarding lead based paint, it appears that property rights are under alarming assault. In addition, property values will face additional negative pricing pressure and any future recovery of the housing market will be handicapped.

Free market capitalism remains the best path to prosperity!

Property Rights Seem Under Attack

There are so many instances of attack on property rights FOX News has created a new investigative series about property rights across the country. It's your Land, to detail specific cases.

One the national experts in this arena is Carol Saviak, Executive Director of The Coalition For Property Rights, an organization headquartered right here in Orlando. Ms. Saviak is interviewed by FOX News Eric Shawn regarding an eminent domain situation in New York.



You may wish to consider joining the Coalition For Property Rights, who put on events quarterly and have some outstanding guests and do an outstanding job covering property issues not only locally, but nationally.

At any rate, these attacks on property rights appear to be on rise, so look for more reports on FOX news Channel.

Is Economic Life of HVCC Over?

The Home Valuation Code of Conduct, a brainchild of New York Attorney General Andrew Cuomo, whuch became law as a regulatory mechanism on the hiring and management of the appraisal process, could see the end of it's economic life. The HVCC, along with hundreds of other governmental regulatory laws enacted, should have never became law.

Shortly after it became law, I wrote and overview from the perspective of an appraiser and free market capitalism.

In October of 2009, Rep. Gary Miller, (R:CA), joined by Rep. Michele Bachmann (R:MN), Rep. Childers (D:MS) and Manzullo (R-IL), offered an amendment to sunset the HVCC.

Now, it appears Senator Casey (D:PA) will offer similar language to the Senate. This will be very welcome news to all industries associated with the housing market and free market capitalists everywhere.

Dagan McDowell of FOX Business News has more on the potential demise of HVCC. Take a listen:


One can only hope the HVCC is put behind us, but even if the government sunsets the law, one wonders if banks, many of whom are partially owned by the government, and government sponsored entities such as Fannie Mae and Freddie Mac, will still implement the standards of the code.

Dangers to Prosperity Lurk in Cap & Trade

On his radio program Friday afternoon, Rush Limbaugh referenced an article from The American Thinker blog regarding the Cap & Trade legislation, and the untold hidden land mines associated with it.

The cap and trade legislation is being pushed as a vehicle for America to curb emissions as part of the fight against global warming, which is the greatest hoax of all time.

While is is always an excellent, cost effective idea for individuals and corporations to refrain from polluting, further costly regulatory legislation is arena unnecessary. Until the global warming hoax is completely exposed, and given our main stream media this could take some time, it acts a tax on business which is passed on to the consumer and prohibits economic growth and prosperity. And with a multitude of recent reports questioning the validity of global warming evidence, it becomes apparent that global warming is more about governmental control than climate change and represents a vehicle for the global transfer of wealth.

Trying to ascertain what is what in a 1400 page bill is daunting, particularly when it refers back to other bills. Have at it! However, it appears that under the Waxman-Markey bill, which recently passed the House, the costs of real estate transactions, ownership and new construction will go up.

Essentially, an administrator (czar) of The Environmental Protection Agency, appointed by the President, will develop a national set of enforceable building codes which all new construction must adhere to which mandates increases in energy efficiency by approximately 30%.

Each home, new and existing, will be investigated to determine a "final score" on energy efficiency and labeled. While there is much confusion as to whether homes must meet certain requirements prior to a sale, a few things come to mind which are not clearly spelled out in the bill.

The bill makes a distinction between public housing and assisted housing, but does not define the parameters of such. So, I am wondering, are homes whose loans have been recently modified with government money "assisted housing"?

The bill does spell out that if you rent property to assisted renters or provide public housing and receive monetary incentives to retrofit your property you cannot pass any costs on to the renter by way of rental rate increases, even though you have seemingly improved the property.

Over the past year, approximately 75% of new mortgage loans have been FHA loans, so I wonder if since the government holds the note they can mandate the retrofit. In fact, with Fannie and Freddie's loan portfolio and the Obama administration owning large positions in many major banks, will those properties be subject to the retrofit legislation? Will new FHA loan interest rates be based upon the energy rating of the improvement?

The bill does give the administrator the ability to adjust annually the energy requirements, so they will start out low in an effort to enhance the probability of the bill passing only to be adjusted without legislation going forward, no doubt a bad idea. This legislation, if it becomes law, will be an assault on property rights, seizure of yet another portion of our freedom and a new level of taxation to help in the fight against the speculative global warming. Quite obviously, building codes should be set by local governing bodies and a federal mandate in this arena, similar to the recently passed health care bill, is likely unconstitutional.

At any rate, if passed into law, the legislation will increase costs of home ownership, increase the difficulty of selling improved properties and limit choice for property owners. The new law would make the administrator one of the most powerful players in our government and would be asking the public to trust the governing adjustments going forward. Has this administration earned our trust? To the contrary, they appear to be running a thugocracy full of deceit and corruption.

It looks like through excessive regulatory legislation in an effort to combat the speculative global warming issues, the government is going to put a governor on the appreciation of home values, which in itself is an attack on free market capitalism.

FSU Assists In Powering Harmony

Officials at The Florida State University announced last December to locate Florida State's Energy and Sustainability Center in the Birchwood Acres Company certified green development of Harmony, located just 30 minutes south of Orlando.

The community of Harmony is described as an "environmentally intelligent community" specifically designed to incorporate an ideal balance of nature oriented living with improvements conforming to the latest and most energy efficient building materials and appliances.

Among the external amenities of the community is the fact 70% of the acreage will remain non developed space, inclusive of two lakes owned by the community. These lakes allow no fossil fuel engines on the lake, limiting boat usage to sail, paddle or electric power. In addition, there is a Johnny Miller designed golf course, many parks, playgrounds, clubhouse, town square, community pool, jogging and hiking trail paths and pet parks for residents of the community to enjoy and utilize.

The residents with children have on site schools within walking distance and the schools provide state of the art educational concepts offering students extraordinary educational opportunities.

The improvements are classified as Certified Green Houses as identified by the Florida Green Building Coalition and are identified as Certified Energy Star Homes. The appliances in the homes are General Electric Energy Star, including the electric oven-range, refrigerator, dishwasher, disposal and hot water heater.

I recently had the pleasure to tour the project with Birchwood Acres President Shad Tome and found the development most impressive, and as an alumni of The Florida State University, I was delighted to learn of the partnership that had been formed.

The Orlando Sentinel recently penned an article detailing the university's plans to build a 5-megawatt power plant at the development, complete with the following diagram from FSU detailing how the power is achieved.

Certainly, energy efficiency is very important, both for the use of homeowners and for the powering of an entire community. The partnership will allow Harmony to be a testing ground for "developing and improving technology" in an effort to reduce costs and improve energy efficiency and environmental protection and preservation.

Charting the progress of the partnership and the Harmony Development over the next few years will be interesting.

They invite you to "Discover Life In Harmony". To visit this impressive development, take Narcoossee Road south to US 192, turn east and roll seven miles to find it on the left. I have the calendar marked to hit the Johnny Miller links down there soon.

NOTE: THE WRITER HAS PERFORMED APPRAISALS IN THE HARMONY COMMUNITY AND SOME OF THE INFORMATION PRESENTED IN THE ARTICLE IS OPINION FROM DATA GATHERED WHILE IN THE COMMUNITY AND DURING THE PERFORMANCE OF APPRAISALS WITHIN THE COMMUNITY.

States Rights Rule

You may have noticed that in recent months, the stories regarding eminent domain have been increasing. The Federal Government has been making a power grab on several fronts, and land acquisition is one of them. Check out this conversation regarding the goings on in Utah:



Keep any eye on this one, and I predict in the end, States rights will rule.

Siezure of Property

Eminent Domain is a hot topic and the government continues to have a big appetite for property. Take listen to this example on FOX & Friends.



A battle, also in Virginia, is set to go to the judicial system. The very lovely Shannon Bream, a fellow Seminole who earned a Juris Doctorate with honors from Florida State University College of Law, reports:

High Vacancy Rates Crushing Investors

With Blackrock and Tishman Speyer walking away from the humongous New York City residential apartment community Stuyvesant Town, is there a difference in the morality of a commercial enterprise handing back ownership to the lenders versus a normal homeowner. And interesting discussion on CNBC hosted by Erin Burnett:



The economic environment created by the housing crisis and exacerbated by the deplorable policies enacted and looming legislation by the Obama administration, have forced the unemployment rate to remain swollen and the prosepct for improvement in that regard to remain handicapped.

In fact, apartment vacancies are at a 30 year high and, with a over supply of available living opportunites inclusing a shadow inventory, relief in not in sight.