The news has been anything but positive for the last two years regarding Michigan’s budget situation. The latest projections show that trend continuing.
State government is spending at a rate of nearly $1.1 billion dollars higher than it is taking in revenue for the current fiscal year. All major tax reform discussions pertaining to the industry are on hold as Lansing is concerned primarily with passing amendments to our budget that will make sure the books are balanced at the end of the fiscal year (September 30).
After the tweaking of the current fiscal year budget situation, the legislature and Governor Granholm will need to work on next year’s budget. This needs to be in place prior to October 1
st so as to avoid an unnecessary partial shutdown of government services. This too will prove to be a challenge with the continually projected decline of our state’s auto manufacturing sector. Current estimates show that about $1.7 billion dollars needs to be cut from the Governor’s original February spending proposal to keep governmental spending in line for the next fiscal year.
The Senate hopes to have some budget bills up for a vote this week. Talks between the Governor, and House and Senate leadership on final budget figures are expected to happen soon. The MAR staff is keeping tabs on all potential spending and tax change proposals. Rest assured that we will alert the membership of any potential changes to the Michigan Business Tax, property taxation, or the sales tax.
Legislation to speed up permit process introduced in the Senate
Legislation aimed at speeding up the permit process is making its way through the legislature.
Senate Bill 435, sponsored by Senator John Pappageorge (R-Troy) would amend the Administrative Procedures Act to require agencies and legislative committees to review rules every five years to assess their impact on small businesses since the rules took effect. The bill also would require an agency's annual regulatory plan to identify all existing rules and whether those rules should be continued, changed, or rescinded, considering their statutory and public policy purpose. The review is intended to analyze various rules to see if there is a continued need, a compliance complication, or if there has been any regulatory change for a particular rule.
Senate Bill 436, sponsored by Senator Jud Gilbert (R-Algonac) would allow a person to file a permit application or a proposed remedial action plan with a licensed professional engineer for review. Typically, these engineers have worked previously for the DEQ, and are well-versed in the process. It has been a continual issue that the permit review process through the department is long and arduous. These new bills aim at increasing efficiency when working with the DEQ. The bills are expected to be passed by the Senate this week, and will head to the House for consideration.
While the leaves are changing their colors this fall, change your outlook & strategies at MAR’s 2009 Convention & Expo. Being held October 7-9 at the Grand Traverse Resort & Spa, make this the year to fall into new business practices, with help from nationally recognized speakers, local leaders, and new ideas from the abundance of networking opportunities.
All members are eligible for discounted rates, by registering early.
First Time Attendees – Save $40
See why members rave about MAR’s Convention and take advantage of the first time attendee early bird rate and pay only $139 for a full registration.
Returning Attendees – Save $40
Return for another year of useful knowledge sessions, CE opportunities, building referral contacts & more for only $199 for a full registration.
The Michigan State Housing Development Authority has significantly expanded its down-payment assistance program that, when combined with the new federal tax credit, would provide more than $15,000 in help for first-time home buyers.
The loans - - which have zero interest and don’t have to be paid back until the home is sold or the mortgage refinanced or paid in full – could be used for closing costs, expenses such as setting up escrow accounts, or down payments. The federal recovery package approved in February provides first time homebuyers with an $8,000 tax credit.
“MSHDA has raised its limits on the household income for buyers eligible for the $7,500 loan from $55,000 to nearly $95,000,” said Mary Townley, MSHDA’s director of homeownership. “We felt we just needed to provide more tools for home buyers.”
For both the federal and state programs, buyers are eligible if they haven’t owned a home in the past three years. The federal credit runs through Dec 1. The state loans can be used for homes worth up to $224,500.
Income limits and other information can be found at
MSHDA's Web Site.
New guidelines by Fannie Mae and Freddie Mac for the hiring of appraisers has generated uncertainty among practitioners. The requirements stem from an agreement that the two secondary mortgage market companies entered into with the New York attorney general last year to help curb inaccurate appraisals and stem the use of appraisals for fraud. NAR has developed a
brochure to help clarify some of the common misunderstandings about the guidelines.
With the help of McClelland & Anderson, we are taking the most commonly asked questions from our legal hotline and putting them in e-news. We will be featuring a different question each issue.
QUESTION: Some agents in my area are giving potential buyers the combination or code to the lock boxes on vacant properties. Is this permissible?
ANSWER: NO. Although this situation is not specifically addressed by the occupational code, it is extremely ill-advised to provide the code or lock box combinations to non-agents. Doing so could subject the agent (and the agent’s firm) to any number of possible claims, including breach of fiduciary duty and negligence claims.
MAR would like to congratulate its very own Christian Grothe, who was recently selected by NAR for its 30 Under 30 Class of 2009 Award. Grothe, 27, is part of the sales team at Max Brook, Inc. in Birmingham. In the past year, he closed over $13 million in sales.
Grothe, who has developed a specialty in working in short sales and foreclosures said, “This award means so much because it comes from a group of my peers and recognizes my diligent efforts over the last 2 years. It currently is a challenging environment to succeed in and I wanted to prove that it can be done at a young age.”
To learn more about Grothe or to view NAR’s entire 30 Under 30 Class of 2009 visit
NAR’s Web site.
MAR Real Estate FormsThe Michigan Association of REALTORS® stocks a wide variety of standard real estate forms and publications for members’ real estate transaction needs. MAR’s real estate forms library contains agency forms; closing statements; disclosure forms; lead based paint forms; listing agreements; sales contracts; and sample language for miscellaneous transactions. Sample forms are available to view or download from the
MAR Web site.
MAR also stocks brochures and publication to keep you and your customers in the know with informative brochures and guides. Visit the real estate forms and publication library online at:
http://www.mirealtors.com/content/forms.htm to order.
MAR’s real estate forms are available in electronic format through ZipLogix. To order electronic versions, please visit:
http://www.zipform.com/; or call 866-MY FORMS (866-693-6767).
View all MAR Edge Programs & Benefits Here