As a follow-up to the hearing held on July 15, the Hernando County Board of County Commissioners has set the date of August 5 to further their discussion of applying for a piece of the $20-million that the State Housing Trust Fund has been allocated to stimulate local economies by reducing impact fees by 25%.
Fishkind & Associates was selected to provide an economic outlook on the prospects of providing housing to first-time homebuyers who may otherwise find it impossible to purchase their own piece of long-term investment – a home. It’s not all about the prospective homebuyer; it’s squarely directed toward boosting the local economy with jobs within the construction industry.
“Experts” will give testimonies that will probably center on presenting facts and figures that fit the mold for people and businesses of interest, namely builders.
In February of this year, at a speech to the Bay Area Real Estate Council, a group of real estate attorneys, Hank Fishkind faithfully stuck by the Federal Reserve’s belief that interest rate cuts would be an affective means to avoid a recession. This has proven to be a misguided approach as the Fed has hinted that a rate hike may be needed in the near future to slow down another negative economic indicator – inflation.
Mr. Fishkind also gave a forecast that claimed Hernando County home sales had already hit bottom and was set to be a bit on the upswing during the last quarter of 2008. The economist also gave the analysis that foreclosures aren’t as alarming as the media portrays because “It’s a thimble in the ocean.” Foreclosures were viewed as having an affect on certain neighborhoods but “not counties as a whole.”
The gentleman made the same promise at the Jully 22 BOCC hearing that the housing market in Hernando County it at it's lowest. Recovery will be a slow road through a three-year period. Ben Barnanke, chairman of the Federal Reserve, has a different outlook that gives the housing market Hernando County a gloomy view. With more foreclosures are in the foreseeable future and with a growing number of Americans experiencing a protracted decline in spendable income, people just won't have the money that banks now require to put down on mortgages.
Positive thinking can be an art but it doesn’t necessarily fit well with the reality of a situation. In this case, in a matter of just a few months, these same purveyors of recovery "just around the corner” are no more convincing than they were the first time around.
Americans have been enticed and dependent upon home quity loans to keep the economy spurring. Without home equity loans to continue to spur the economy, as they had over the past decade, the future looks too frighteningly real. The times are worse in Florida because of the financial handicaps from property taxes and ever-increasing homeowner insurance. These aren't expected to down anytime soon, which indicates a possible further delay in recovery.
Many analysts put the decline of the American economy, and the world at large, to extend into 2011. Even so, prospects of recovery are uncertain, surely to be a very slow process. With a myriad of economic indicators sucking the life out of nearly all financial institutes, everyday people will continue to lose their jobs, their homes and whatever life savings they may have at their disposal. A job loss means their health concerns become a casualty of lost benefits.
There is no doubt that Fishkind & Associates is a respected entity of engineering prowess and serve the interests of a vast variety of businesses. On the company’s website http://www.fishkind.com/ the list of names on Our Client List are nothing but impressive.
Out of nearly one hundred interested parties, a minimum of one-quarter is builders, real estate associations, title companies and land developers. Some are engineering and survey companies specializing in high-end golf course communities and resorts. The firm also represents property appraisers in various Florida counties. Economic development is a priority and, as the site informs, environmental concerns go hand-in-hand with every project.
Fishkind was a prominent advocate on April 26, 2007, for the approval of Sierra Property Inc and its Hickory Hill subdivision in east Hernando County, turning those rolling acres of land into roiling property investments. Fishkind & Associates is expected to fully support the impact fee reductions more for the benefit of builders than the individual who may purchase a home.
…if only there were a second opinion…
In contrast to the expertise of Fishkind, William Fruth of POLICOM Corporation, presents an unbiased “Economic Analysis Everyone Understands”. The website is at http://www.policom.com/.
Mr. Furth takes multiple factors into consideration when developing an economic evaluation/outlook of a selected area. Per capita statistics and overall jobs, earnings and wages are just a part of data sources, then broken down to statistics of individual and per capita indicators.
There is a sector that negatively reflects on a poor economy – an increase in the number of welfare recipients, including Medicaid and Social Security benefits.
Another group includes small business, construction and retail industries. They are considered “reactive” to the spending ability of consumers. Periods of poor economic times tend to be in direct proportion to the negative economic stability of a community.
As with the construction industry, retail jobs might still grow in a declining economy but the overall local job market reflects declining earnings numbers. A business might layoff a number of full time employees and increase part-time workers. Thus, there are a number of temporary new jobs, but both wages and earnings are in decline, showing an unhealthy local economy. More jobs at reduced pay follows suit when the number of jobseekers outnumbers the jobs available.
POLICOM is a member of the Pasco-Hernando Jobs & Education Partnership and Regional Board, Inc. The Career Central program has a stated goal “To serve as a catalyst in the community for promoting self-sufficiency through the development of a quality workforce.” Most of the board members are volunteers from local, private businesses. Resources and services, including training, recruiting, staffing, career fairs and incentive programs highlight the degree of commitment of this non-profit organization.
POLICOM has more than just a local presence. It offers economic development strategies throughout the region but also extends its services from coast to coast - north to south, east to west.
Another local client is Hernando Progress, Inc., an independent, tax-exempt organization. Information at http://www.taxexemptworld.com/ identifies 459 non-profit organizations with its network in Hernando County and over 1.6-million nationwide. The local director is Hernando Today publisher Duane Chichester.
Although the site doesn’t handle the application of new charity enterprises, there are links offering assistance.
POLICOM’s goals are not self-serving and would be a positive option of taking a broader look of Hernando County’s economic future.
…so this is what tomorrow might bring…
When August 5th comes around, the BOCC will host a number of speakers, including residents, workers in the construction business and builders. Much like the Hickory Hill LLC hearings in the spring of 2007, the same aisle that pitted one group against another will once again separate interested groups. You can’t have it both ways. Sierra Properties gained a super-majority of votes from the Commissioners but the fruits of their success won’t be realized for a generation.
Impact fee reductions might be quick in coming but a yeah vote would be felt by more taxpayers over a longer period of time than those who would benefit from the short-term benefits.
And yet, developers, builders and real estate agents are not evil - it’s a small mind that even suggests so. Their past contributions to the economy can’t be denied anymore than those of retail businesses. For now, those glory days are behind the times. One last hurrah would be as hollow as the vacant rooms in a foreclosure home.
The problem centers on the years of poor planning by the Commissioners with their zeal and overkill of unabated approval of rezoning thousands of acres of agricultural land for residential development. Time after time, they have taken the path of least resistance with their acceptance of the recommendations of the Planning & Zoning Commission. Having joint board meetings would have saved time and money.
If a majority of Commissioners vote in favor of reduced impact fees, there will still be a multitude of questions as to the fairness of distribution of profits. If eight applicants qualify as would have been the case in 2007, which builders would be awarded the slim pickin’s? What of real estate agents, title companies and mortgage lenders? Subcontractors?
What about the workers themselves? Will they be given the same pay scale as they have had in the past when jobs were plenty? Or will the paymasters offer less compensation than what would otherwise dictate? The cost of living has gone up as should wages. But supply and demand takes precedence.
Would it be possible to award a single County District the sole rights of constructing with no regard to how profits will constrict the impact of future upgrades on the infrastructure? In any given District, impact fees are restricted for use within that same District. Why not choose the big loser in advance?
Would District 5 please absorb the reduction in impact fees? Your lime rock roads aren’t likely to be paved anytime soon anyway. District 1 is already overbuilt and already has plenty of roads that aren’t getting repaired because of limited funds. Somewhere out there in your vast domain there must be a few tracts of land that are at sufficient distances from unoccupied homes so as not to create animosity for building homes where existing homeowner debts keep building.
…if they really wanted to make their own contributions to the community…
Builders could prove themselves community-minded by taking steps that others have offered in a housing market with thousands of pending sales and foreclosures. They could give the buyer a 10 to 25% discount on the purchase price of the home itself. Pre-qualification of securing a loan would be just one step – obtaining property insurance could be an insurmountable obstacle.
Remember, the purpose of the impact fee reduction is targeted to first time homeowners. When home mortgages have gravitated to only the most credit worthy, lowering the loan amount may give the buyer an edge toward realizing this once-in-a-lifetime dream home in Hernando County… or any other county in Florida that accepts the state funding.
Showing posts with label impact fees. Show all posts
Showing posts with label impact fees. Show all posts
Monday, July 21, 2008
Tuesday, July 8, 2008
Boxed In - Boxed Out
In these times of reduced property taxes and the resultant limited funds available for services to Hernando County residents, we come to realize, and accept, that severe cuts in the budget are over due and in a matter of weeks hearings will eventually bring the matter to a vote by the County Commissioners.
In preparation, Administrator Dave Hamilton painstakingly took steps to not only inform concerned residents of the history of county expenditures but also gave them opportunities to identify what services they would be willing to sacrifice toward a balanced budget. Through no fault of his own, it looks like he may need to guide us through remedial meetings to identify where an additional twenty-five percent of cuts can be made.
He knows what to do and how to get things done so the challenge wouldn't daunt him one bit, but is it really necessary?
As the Commissioners dwell on the opportunity to cash in on the $20-million appropriated by the Florida Legislature from the State Housing Trust Fund, there will be a lot of give and take to consider. Give first time homebuyers incentives to purchase a home. Take away the intended purpose of covering the economic impact on county infrastructure of their purchase. And what do you get? Another shortfall of money and deeper in debt.
Road improvements, schools, parks, libraries and/or emergency services are on the line, again. Take your pick. I’m sure Mr. Hamilton and his staff would be glad to deliver a few more tally sheets to the Board. Regardless, deeper cuts would be necessary.
In my late fifties, I have private insurance and, for now, in pretty good health. Maybe I’d be willing to sacrifice the whole pot of lost funds allocated for emergency services. User fees to those in need?
Maybe you don’t read, so all libraries could be sold as-is to Borders and people can pay for knowledge at their own expense. Isn’t that the direction budget cuts are supposed to take us? It’s called macroeconomics.
Better yet, I don’t have kids so terminate at least half the working teachers, hold one big class in a gymnasium and save beaucoup bucks! Another plus side? School Superintendent Wayne Alexander would have less to oversee, so a reduction in pay would be in order.
And you can bet those living on lime rock roads would gag on the dust and gasp their way to the podium to ask that road improvement moneys be left alone - another attempt to get the County to keep its promise to upgrade their roads.
Commissioner Dave Russell wants to “think outside the box” but the county is already boxed in with thousands of empty houses. Administrator Hamilton gave the number at 3,689 (at last count) when he expressed the negative effect it would have on the County. County Planning Director Ron Pianta has the same concern. Diane Rowden continues to be leery of speculative development. This past year she was a frequent dissenter of rezoning requests for new subdivisions. She was one step ahead of the times but out of step to others’ interests.
Something would have to give. Out of about $9,200 in impact fees, over $2,200 would be sacrificed to the benefit of developers, real estate agents, title companies and mortgage lenders – and their employees, plus the buyers themselves. Last year, only eight homebuyers would have qualified, and those were for existing home sales.
The Commission has set aside a public hearing for July 15. There’ll be a group of builders and a long line of other influences behind them. They prompted the Commission to hold the hearing and will by far outnumber residents who will eventually be the ones to pay for the shortfalls. Builders have the time – they want the money.
There’ll be another time and another housing boom that warrants construction to once again begin, but for right now it’s a losing proposition to existing homeowners, especially those who have homes they can’t get rid of. Until better economic times, Hernando County is all boxed out.
In preparation, Administrator Dave Hamilton painstakingly took steps to not only inform concerned residents of the history of county expenditures but also gave them opportunities to identify what services they would be willing to sacrifice toward a balanced budget. Through no fault of his own, it looks like he may need to guide us through remedial meetings to identify where an additional twenty-five percent of cuts can be made.
He knows what to do and how to get things done so the challenge wouldn't daunt him one bit, but is it really necessary?
As the Commissioners dwell on the opportunity to cash in on the $20-million appropriated by the Florida Legislature from the State Housing Trust Fund, there will be a lot of give and take to consider. Give first time homebuyers incentives to purchase a home. Take away the intended purpose of covering the economic impact on county infrastructure of their purchase. And what do you get? Another shortfall of money and deeper in debt.
Road improvements, schools, parks, libraries and/or emergency services are on the line, again. Take your pick. I’m sure Mr. Hamilton and his staff would be glad to deliver a few more tally sheets to the Board. Regardless, deeper cuts would be necessary.
In my late fifties, I have private insurance and, for now, in pretty good health. Maybe I’d be willing to sacrifice the whole pot of lost funds allocated for emergency services. User fees to those in need?
Maybe you don’t read, so all libraries could be sold as-is to Borders and people can pay for knowledge at their own expense. Isn’t that the direction budget cuts are supposed to take us? It’s called macroeconomics.
Better yet, I don’t have kids so terminate at least half the working teachers, hold one big class in a gymnasium and save beaucoup bucks! Another plus side? School Superintendent Wayne Alexander would have less to oversee, so a reduction in pay would be in order.
And you can bet those living on lime rock roads would gag on the dust and gasp their way to the podium to ask that road improvement moneys be left alone - another attempt to get the County to keep its promise to upgrade their roads.
Commissioner Dave Russell wants to “think outside the box” but the county is already boxed in with thousands of empty houses. Administrator Hamilton gave the number at 3,689 (at last count) when he expressed the negative effect it would have on the County. County Planning Director Ron Pianta has the same concern. Diane Rowden continues to be leery of speculative development. This past year she was a frequent dissenter of rezoning requests for new subdivisions. She was one step ahead of the times but out of step to others’ interests.
Something would have to give. Out of about $9,200 in impact fees, over $2,200 would be sacrificed to the benefit of developers, real estate agents, title companies and mortgage lenders – and their employees, plus the buyers themselves. Last year, only eight homebuyers would have qualified, and those were for existing home sales.
The Commission has set aside a public hearing for July 15. There’ll be a group of builders and a long line of other influences behind them. They prompted the Commission to hold the hearing and will by far outnumber residents who will eventually be the ones to pay for the shortfalls. Builders have the time – they want the money.
There’ll be another time and another housing boom that warrants construction to once again begin, but for right now it’s a losing proposition to existing homeowners, especially those who have homes they can’t get rid of. Until better economic times, Hernando County is all boxed out.
House For Sale
Three years ago I was in the throes of selling one home to buy another, entrusting my investment to a freshman real estate agent. Harry is a successful businessman whose upscale retail store of glassware (Swarvoski and Bacarra) and ceramics (Capo De Monte, Lladro and Hummel) had become a frequent shopping target. I bought trinkets as compared to items that many of his other customers would purchase.
His goal was to upgrade from a $500k house to one twice the value. His professionalism was given with every customer purchase – the slightest flaw was unacceptable. He would return it to the manufacture and scrutinize another piece if it was in stock. I had no doubt his new adventure in real estate would be another success. After a year, he would become his own broker. I was his first client toward that goal.
When he shared his ideas of opening a real estate office, he hinted toward considering me as office manager, but the conversation led to my interest in his guidance to sell my home in Orlando.
Even though he had already given me a few concessions on his fees, he went out of bounds of what a typical agent might provide. He escorted me from Orange to Hernando County so we could both gain from the experience. He knew my circumstances for the move - he wanted exposure to every facet of his new trade.
His first attempts were through the typical means of MLS listings. This was not a good experience. Pre-owned homes were the first considerations. His disgust of what we saw dwarfed my own.
Front yards were poorly maintained but you don’t buy a house with landscaping a major concern. Most often, we cringed at the interiors. There is one house in particular that sticks out among the rest. Every room was dark and dreary.
The family room was poorly kept but the master bedroom was most repulsive. It may have served as a room for picture developing. An unmade bed and all kinds of “debris” lying on the floor were bad but the closets were disgusting. Not a single piece of clothing was hung properly on hangers; a policeman’s uniform was shabbily displayed in front. With cloths strewn on the floor there was little or no walking space.
Then there was the porch. The kick panel had serviced its purpose too many times, dislodged from the framework. Segments of screens were ripped. Harry was the first to suggest we just leave. Other dwellings may have been less offensive but were still poorly shown.
There are some basic principles to be followed if the seller and agent are truly intent on making the sale.
Natural rays of light brighten the house, giving rooms a more open feeling, as does removal of clutter. Personal knickknacks distract buyers from how they envision their own showpieces. Clean floors avoid hygiene from being a concern.
Most of what might be removed to give a more homey feeling won’t be missed. But what about keeping things out of sight? Box it, store it in the garage. It’s a perfect time to do some weeding, a perfect opportunity to hold a garage sale. You’ll also give the buyer the impression that you’re ready to move ASAP.
With all of these suggestions, Harry still wasn’t completely satisfied with the appearance of my home. After 15 years, the home was as clean and neat as anyone could expect. Yet, he had me go a few steps further. On his suggestion, I removed a few wall pictures (and patched and painted over nail holes) for a roomier feeling. He had me place simple flower arrangements in the living room, kitchen and master bath. Highlighting the garden tub would entice women. Mildly scented candles in every room and the A/C set at a pleasant temperature added to the aura of the home.
Harry gave me notice to vacate the house whenever prospective buyers were to tour the house. People are leery of open discussion when the seller is present; they feel intrusive when they should be welcomed.
I didn’t buy a previously owned home in Spring Hill. My realtor was privy to an investor home not yet put on the market. I was very fortunate. It’s near perfect to my wants and needs. But Adams’ architect failed to include a linen closet!
This is not a perfect world, but if your want to sell your house, just remember the interested party is looking to buy a home. A house isn’t necessarily a home unless it looks the picture in the eyes of the prospective buyer.
His goal was to upgrade from a $500k house to one twice the value. His professionalism was given with every customer purchase – the slightest flaw was unacceptable. He would return it to the manufacture and scrutinize another piece if it was in stock. I had no doubt his new adventure in real estate would be another success. After a year, he would become his own broker. I was his first client toward that goal.
When he shared his ideas of opening a real estate office, he hinted toward considering me as office manager, but the conversation led to my interest in his guidance to sell my home in Orlando.
Even though he had already given me a few concessions on his fees, he went out of bounds of what a typical agent might provide. He escorted me from Orange to Hernando County so we could both gain from the experience. He knew my circumstances for the move - he wanted exposure to every facet of his new trade.
His first attempts were through the typical means of MLS listings. This was not a good experience. Pre-owned homes were the first considerations. His disgust of what we saw dwarfed my own.
Front yards were poorly maintained but you don’t buy a house with landscaping a major concern. Most often, we cringed at the interiors. There is one house in particular that sticks out among the rest. Every room was dark and dreary.
The family room was poorly kept but the master bedroom was most repulsive. It may have served as a room for picture developing. An unmade bed and all kinds of “debris” lying on the floor were bad but the closets were disgusting. Not a single piece of clothing was hung properly on hangers; a policeman’s uniform was shabbily displayed in front. With cloths strewn on the floor there was little or no walking space.
Then there was the porch. The kick panel had serviced its purpose too many times, dislodged from the framework. Segments of screens were ripped. Harry was the first to suggest we just leave. Other dwellings may have been less offensive but were still poorly shown.
There are some basic principles to be followed if the seller and agent are truly intent on making the sale.
Natural rays of light brighten the house, giving rooms a more open feeling, as does removal of clutter. Personal knickknacks distract buyers from how they envision their own showpieces. Clean floors avoid hygiene from being a concern.
Most of what might be removed to give a more homey feeling won’t be missed. But what about keeping things out of sight? Box it, store it in the garage. It’s a perfect time to do some weeding, a perfect opportunity to hold a garage sale. You’ll also give the buyer the impression that you’re ready to move ASAP.
With all of these suggestions, Harry still wasn’t completely satisfied with the appearance of my home. After 15 years, the home was as clean and neat as anyone could expect. Yet, he had me go a few steps further. On his suggestion, I removed a few wall pictures (and patched and painted over nail holes) for a roomier feeling. He had me place simple flower arrangements in the living room, kitchen and master bath. Highlighting the garden tub would entice women. Mildly scented candles in every room and the A/C set at a pleasant temperature added to the aura of the home.
Harry gave me notice to vacate the house whenever prospective buyers were to tour the house. People are leery of open discussion when the seller is present; they feel intrusive when they should be welcomed.
I didn’t buy a previously owned home in Spring Hill. My realtor was privy to an investor home not yet put on the market. I was very fortunate. It’s near perfect to my wants and needs. But Adams’ architect failed to include a linen closet!
This is not a perfect world, but if your want to sell your house, just remember the interested party is looking to buy a home. A house isn’t necessarily a home unless it looks the picture in the eyes of the prospective buyer.
Wednesday, February 27, 2008
The Impact of Hideaway Impact Fees
Its no surprise that I'm one of those who agree that 4-1 decision to make Lake Hideaway the next residential development site at a questionable time. The rationale of the vote is further in question because, as reported in the January 16th edition of Hernando Today, “Shaky Economy Halts Talks of Impact Fee Hike”. As it stands, Hideaway lots will bring in less in impact fees than if a delay in the decision had been considered to lessen the impact of more development and the accompanying stresses on the County infrastructure.
County government is lackadaisical in following the basic principle of making profitable economic decisions: make money and don’t give away freebees. It will cost more in taxpayer moneys to provide county services than what will be gained from property taxes. I should think Commissioner Dave Russell, local businessman, would give more thoughtful guidance for the best return on the County's property investments. There was no reason for the Commission to rush the approval of another development; it's come to be known as The Lake Hideaway Giveaway.
The estimated 2,400 homes and 1,300 townhouses on 886 acres at The Hideaway will be more than twice the 1,750 homes on 280 prime acres atop Hickory Hill but not nearly as numerous as the 4,800 residential units and 75 motel rooms on 1,385 acres in the adjacent Sunrise subdivision.
Lest we not forget the 365,000 square feet of retail space at Sunrise and the planned 50,000 sq ft of retail at The Hideaway. The Hill is the only exception, but where there are more people, there are more retail stores with more low paid employees. The average yearly income of a worker in the Hernando is about $28,000 – in the Tampa area the figure jumps to $38,000. The ratio of affordability is not that much of a difference.
So, where will these homeowners work to afford the $150,000 to $350,00 homes at Lake Hideaway? They will have to commute to some destination outside the county. Already, 34% of working people in the county are employed elsewhere.
Commissioner Rowden might find some solace with the token $370,000 set aside for affordable housing, even though the “state formula” indicates it isn’t required in this new development. Her quest for “affordable workforce housing” will have to wait for another day; it’s an elusive pipedream no matter where people live in Florida.
Perhaps of more importance than all else, take into consideration that at the 2007 Hernando County Economic Summit a goal was set to add 10,000 new homes by the year 2025. Since last April, when Hickory Hill was approved, 10,250 units have been approved. On an imaginary grade scale, the Board gets an A-plus for exceeding the goal but Commissioner Rowden, the sole dissenter in each case, brings a suggested FCAT score to a very poor rating.
County government is lackadaisical in following the basic principle of making profitable economic decisions: make money and don’t give away freebees. It will cost more in taxpayer moneys to provide county services than what will be gained from property taxes. I should think Commissioner Dave Russell, local businessman, would give more thoughtful guidance for the best return on the County's property investments. There was no reason for the Commission to rush the approval of another development; it's come to be known as The Lake Hideaway Giveaway.
The estimated 2,400 homes and 1,300 townhouses on 886 acres at The Hideaway will be more than twice the 1,750 homes on 280 prime acres atop Hickory Hill but not nearly as numerous as the 4,800 residential units and 75 motel rooms on 1,385 acres in the adjacent Sunrise subdivision.
Lest we not forget the 365,000 square feet of retail space at Sunrise and the planned 50,000 sq ft of retail at The Hideaway. The Hill is the only exception, but where there are more people, there are more retail stores with more low paid employees. The average yearly income of a worker in the Hernando is about $28,000 – in the Tampa area the figure jumps to $38,000. The ratio of affordability is not that much of a difference.
So, where will these homeowners work to afford the $150,000 to $350,00 homes at Lake Hideaway? They will have to commute to some destination outside the county. Already, 34% of working people in the county are employed elsewhere.
Commissioner Rowden might find some solace with the token $370,000 set aside for affordable housing, even though the “state formula” indicates it isn’t required in this new development. Her quest for “affordable workforce housing” will have to wait for another day; it’s an elusive pipedream no matter where people live in Florida.
Perhaps of more importance than all else, take into consideration that at the 2007 Hernando County Economic Summit a goal was set to add 10,000 new homes by the year 2025. Since last April, when Hickory Hill was approved, 10,250 units have been approved. On an imaginary grade scale, the Board gets an A-plus for exceeding the goal but Commissioner Rowden, the sole dissenter in each case, brings a suggested FCAT score to a very poor rating.
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