PRSRT STD US POSTAGE PA ID PERMIT 745 COLO SPGS CO
Vol. 9 No. 9
May 29, 2017
www.csrej.com
Tax reform could deliver a tax hike for homeowners While tax reform proposals swirling around Washington, D.C., promise lower tax bills for American families, new estimates indicate that many middle-income homeowners may actually see a tax increase if those proposals go through. The study, “Impact of Tax Reform Options on Owner-Occupied Housing,” (link is external) illustrates the effects of a tax plan that echoes certain elements of the “Better Way for Tax Reform (link is external)” or “Blueprint” proposal released last
year, as well as the White House tax reform outline released in April, to which the National Association of Realtors® responded. While most individuals would see a tax decrease under such a proposal, the study estimates that many middle-class homeowners could in fact see a net “middle-class average tax in- homeowners crease. Home- could in fact owners with see a net adjusted gross average tax incomes be- increase”
tween $50,000 and $200,000 would see their taxes rise by an average of $815. The study also estimates that combined tax savings from claiming the mortgage interest deduction and real estate property tax deductions would drop 82 percent between the 2018 and 2027 period. “Tax reform and lower rates are worthy goals, but only if we can achieve them in a fiscally responsible way,” said NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder
of Investment Properties. “Balancing tax reform on the backs of homeowners isn’t an option.” The study, which was commissioned by NAR and prepared by PwC (PricewaterhouseCoopers), estimates that this tax increase would result from the interaction of several provisions in the reforms under consideration. See Tax Reform Page 2
2017 Colorado Legislative Wrap-Up HB17-1279 – Construction Defects Actions Notice Vote Approval The Highlights: • Before filing a construction defects claim the executive board of a unit owners’ association (HOA) in a common interest community must: ■■ Mail or deliver written notice of the anticipated commencement of the construction defect action to each unit owner.
·· The notice must call a meeting of the unit owners to be held no less than 10 days and no more than 15 days after the mailing date of notice to consider whether to bring a construction defect action. Failure to hold the meeting within required time period voids the vote. A quorum at the meeting isn’t required. ·· The voting period shall end 90 days after the mailing date of the meeting notice or when the Association determines that the construction defect action is either approved or not, whichever comes first. ·· The substance of the proposed construction defect action may be amended or supplemented after the meeting, but such changes does not extend the voting period.
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Debbie Havens
Branch Manager (719) 264-1967
Honest & Ethical Service from People You Know. 1730 Chapel Hills Drive Suite 100, Colorado Springs, CO 80920
HELPFUL TIP: Check the license status of your mortgage broker at the Colorado Division of Real Estate’s website. Corp NMLS #3113
■■ The construction professional against whom the construction defect action is proposed will be invited to attend the meeting and will have an opportunity to address the unit owners concerning the alleged construction defect. ■■ The construction professional or the construction professional’s designee(s) may, but is not required to, include an offer to remedy any defect. ■■ The notice must include a description of the nature of the construction defect, the relief sought, a good-faith estimate of the benefits and risks involved and any other pertinent information including:
NMLS #653845 State Lic #100018256
debbie.havens@academymortgage.com
·· Alleged construction defect might result in increased costs to the HOA in maintenance or repair or cause an increase in assessments or special assessments to cover cost of repairs. ·· If claim isn’t filed before applicable legal deadlines, the claim expires. ·· Until alleged defects are repaired, sellers of units might owe buyers a duty to disclose known defects. ·· Whether the executive board intends to/has
See Legislative Wrap-Up | Page 6
National News............ Page 2 Local News................ Page 5 On the Move.............. Page 13 Local Expert.............. Page 14 Around the Corner....... Page 15
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The 2017 Colorado Legislative Session has been one of the busiest in recent memory. The Colorado Association of REALTORS® (CAR) Legislative Policy Committee (LPC) worked very hard this year to make sure that REALTOR® interests and private property rights were protected and enjoyed many successes this session. Class action lawsuits regarding construction defects has had an adverse effect on the availability of attainable housing in Colorado. In the past few years, 18 cities and municipalities (including Colorado Springs) have passed local ordinances to help mitigate this problem and encourage home builders to start building multi-family owner occupied developments in their areas. The Pikes Peak Association of REALTORS® (PPAR) Government Affairs Committee, in cooperation with the CAR LPC, has worked for many years to get a state law passed that would address the issue of construction defects litigation and standardize the way such issues would be handled across Colorado. The first step towards this goal, HB17-1279, passed through the House and Senate and awaits Governor’s signature.
Amber Fedders
Joe Drew
(719) 505-4458
(719) 266-6155
Loan Officer Assistant
NMLS #1492476 State Lic #100507484
NMLS #1561851 State Lic #100506142
Loan Officer
NMLS #1550047 State Lic #100506874
Loan Officer
amber.fedders@academymortgage.com joe.drew@academymortgage.com
Amanda Smith
(719) 264-1952
amandas@academymortgage.com MAC517-1445581