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.