The local Association of Realtors is optimistic about provisions available thanks to President Obama’s newly signed American Recovery and Reinvestment Act of 2009 (H.R. 1). It included a number of important housing provisions, including remedies for the housing crisis long supported by the National Association of REALTORS® (NAR).

Homebuyer Tax Credit

An $8000 tax credit will be available for qualified purchases of a principal residence by first-time home buyers between January 1, 2009 and December 1, 2009. The credit does not require repayment. Individuals who purchase in 2009 using financing assistance from state and local mortgage bonds will be permitted to use the credit as well. NAR estimates that the home buyer tax provisions could stimulate up to 300,000 additional home sales, helping stabilize home values and potentially preventing some homeowners from falling into foreclosure.

FHA, Fannie and Freddie Loan Limits

Revised loan limits for FHA, Freddie Mac, and Fannie Mae to 2008 levels.

Foreclosure Mitigation & Neighborhood Stabilization

Funding for states and local communities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.

“This hopefully will get buyers off the fence and into the marketplace. First-time home buyers not only stimulate the housing economy and therefore the economy as a whole, but since first-time buyers don’t have to wait for their home to sell, it moves the stabilization and revitalization of the housing economy along quicker.” – Herb Koger, legislative chairman of the Charleston Trident Association of REALTORS®.

Shem Creek aerial view
Credit: Post and Courier

According to an Oct. 31, 2008 Shem Creek appraisal from Atlantic Appraisals, the acreage Mt. Pleasant bought from the previous Ok Tire owners, Mark Mason and Phillip Smith, for $6 million is now worth only half that.

Originally asking $7.6 million for the property, the owners settled for $6 million when Mt. Pleasant threatened eminent domain foreclosure on the property early last year.

Even with proposed enhancements on the property to repair aged docks, etc., the value only gets as high as $4,138,000 based on today’s declined real estate market and economic downturn.

“We’re not going to do anything with it. We’re not moving forward at this point in time. We’re looking at some other possibilities in Mount Pleasant,” -
PRC Commissioner Mark Kearns.

While Mark Mason and Phillip Smith obviously made out, higher property taxes are going to have to pay back the bonds that were used to buy the property.

Mt. Pleasant intends to use the location for a park and public space, so everybody is interested in how this will turn out. Local firm Thomas and Hutton Engineering is surveying the property now to come up with a master plan.

Input from several parties will be noted:

1. shrimpers,
2. the U.S. Coast Guard,
3. the sailing community,
4. adjacent neighborhoods,
5. the U.S. Army Corps of Engineers
6. Shem Creek restaurants and businesses,
7. the Parks and Recreation Commission (PRC), and
8. the state Office of Ocean and Coastal Resource Management.

Mt. Pleasant will be announcing when the meeting for public input is going to take place; until then, stay tuned.