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Monday Morning Mortgages>
Monday Morning Mortgages
August 3, 2009
Monday Morning Mortgages ~ Monday 8/3/2009
Santa Rosa Mandatory Property Upgrades?
Recently, there was a circulating flyer and some letter-to-the-editor activity over a very controversial proposal in Santa Rosa. Whether this is a proposal or an ordinance in the making is unclear, but the plan would make it mandatory for any property owner to perform an energy home inspection and do energy upgrades up to 1.5% of value prior to any transfer of title.
In Dec, the City Council received a report of recommendations done by the Green Building Advisory Committee. Two recommendations are of concern to home owner or anyone in the real estate industry in Santa Rosa.
• Recommendation C: Establish a Citywide program of energy conservation audits, identifying needed improvements to individual properties.
• Recommendation D: Establish energy efficiency requirements for existing residential and non-residential buildings, to be triggered by a transfer of title or major renovation.
The report and recommendations were approved by the Building Advisory Committee by a vote of twelve to five before being accepted by city council. There was a minority opinion memo-ed in the report explaining opposition to some of the plan recommendations by the Advisory Committee members. The opposition noted these issues as important enough for them not to be able to vote in support of the plan.
1. Certain mandatory provisions will engender serious community opposition that will jeopardize the chances for successful implementation of a far-reaching and effective program.
2. Such far-reaching, costly and controversial mandates should only be imposed after a confirming vote of the people.
3. Mandatory retrofitting at point-of-sale or major renovation, initially (should have) been implemented as a voluntary program during a phase-in period, to become mandatory after council evaluation of the voluntary program and an affirmative vote of the people.
4. Recommendation C (should have) been a collaborative voluntary program with the real estate community.
5. Recommendation D (should have) developed a voluntary community-wide approach to existing buildings similar to the City of Santa Rosa Water Conservation Program and that any proposed mandate would solely apply to major renovations.
Council met in May 2009 to adopt a work plan to implement the recommendations of the December report. In the work plans, there are no concrete steps taken to mitigate the above concerns. As of yet, there has been no scheduled public input or discourse on the issues that will ultimately impact home sales, home prices, and our local economy.
Contact your council reps if you feel there should be community input and more disclosure on this incredible important change in Santa Rosa real estate without public vote.
Attached are the two council reports referred to.
Rates
We had a nice rally in the bond market on Friday dropping rates below 5%. There has been a turnaround this morning and rates are back up a notch. The yield on the 10-year Note is up to 3.58% and rates had a deteriorating trend this morning.
Loan Closing Turn times for Escrow Timing
Conventional Mortgage 30 days
FHA 30 days
Today's Rates
WITH ONE LOAN POINT
Conforming (<= $417,000)
30 Year 5.125%
5/1 ARM 4.125%
5/1 ARM IO 4.375%
7/1 ARM IO 4.625%
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 5.375 %
FHA Conforming (<= $417,000)
5.375%
FHA Jumbo (to $520,950)
5. 5%
Super Jumbo (<= $3 million)
30 year fixed 7.0%
3/1 ARM 4.25%
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