Home Sales in the Area Getting a Mortgage: 2017 Update Renting Out a Vacation Home
Member of the Month
June 2017
C O N T E N T S
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4 Chamber Headquarters 5000 Brooktree Road, Suite 100 Wexford, PA Cranberry Twp. Office 2525 Rochester Road Cranberry Township, PA P: 724.934.9700 F: 724.934.9710
Jim Boltz President JBoltz@PghNorthChamber.com For more information on the Chamber’s program of work, please contact:
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Patty Bittle Marketing and Events Director PBittle@PghNorthChamber.com Al Davidson Membership Account Executive ADavidson@PghNorthChamber.com Kristina Hall Program Director KHall@PghNorthChamber.com Heather Schwartzbauer Membership Coordinator HSchwartzbauer@PghNorthChamber.com Amy VanAtta Executive Assistant AVanAtta@PghNorthChamber.com
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From the Summer Fun at the Chamber Summer is fast approaching. That means vacations, travel and loads of outdoor fun. Most businesses that aren’t related to those activities slow down some because of it. Here at the Pittsburgh North Regional Chamber, that is not the case. We have a busy summer planned. In June, we start the month with our second event of the series, Innovation Pittsburgh on the 2nd. The topic of this event is “Business Financing in the 21st Century.” Five prominent speakers including traditional bankers, alternative lenders and source funding experts will be on hand to discuss the state of the finance world and how you can decide what is best for you. On June 22nd, we have our Food and Wine Classic at the Greater Pittsburgh Masonic Center on Cemetery Lane. At this event, attendees can sample wines from around the world and savor culinary artistry that includes pasta to pastries from restaurants right in our backyard. Guests can eat, drink, mingle and enjoy. This upscale event also includes a wine raffle and entertainment. Tickets are still available but are limited. Check our website for more details. Proceeds for this event go to our scholarship fund. This year, based on our partnerships with La Roche College, Chatham University, Community College of Beaver County, Westminster College, California University and Model Cleaners, we will be awarding eight scholarships, up from our traditional five. That ceremony will be in June. We will also be giving up to ten Baierl Trade/Tech Scholarships this year. In July, the PNRC has partnered with McCandless Crossing to bring you the SUMMER BASH on the 13th from 5 -8pm. This Shopping Extravaganza will feature family entertainment such as a balloon artist and strolling musician, music on the Town Green and will kick-off with a business after hours at Bonefish Grill from 5-6pm. Participating businesses will offer exclusive specials and activities that night and shoppers will have the opportunity to turn in their completed “passports” for a chance to win great raffle prizes! August brings us the Social Media Conference on the 7th at La Roche College. This is an all day workshop that focuses on all aspects of social media with experts from across the country. On the 18th, we have the next in our Innovation Pittsburgh series with healthcare as the overall theme. Add to all of that, our normal schedule of Connections meetings, Business After Hours, Member Benefits Orientations and Lunchbox Sessions, and you can see, we plan to have a very active Summer. Hope you can join us!
Jim Boltz Thank you to our Valued Corporate Sponsors and Chamber Partners
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B USINESS A FTER H OURS June 8 Frescos 10545 Perry Highway Wexford, PA
July 6 Terrace on Fifth 1014 Fifth Avenue—4th Floor Pittsburgh, PA 15219
Business After Hours are from 5-7pm
E VENTS
Friday, June 2 — 8am St. Barnabas Health System 5847 Meridian Road Gibsonia, PA 15044
Food and Wine Classic
Thursday, June 22 5:30-8:30pm The Greater Pittsburgh Masonic Center 3579 Masonic Way Pittsburgh, PA 15237
M ARKETPLACE L UNCH M EETINGS June 7: Bravo! Cranberry, 11:30am - 1:00pm 20001 Route 19, Cranberry Twp June 14: Monte Cellos at The Hampton Shoppes ,11:30am1:00pm 4655 William Flynn Highway - Route 8, Allison Park June 21: Cranberry Sports Grill, 11:30am - 1:00pm 1294 Freedom Road, Cranberry Twp. June 26: Family Bowlaway Fun Center, 11:30am - 1:00pm 540 Fairground Hill Road, Butler
2017 B OARD OF D IRECTORS E XECUTIVE C OMMITTEE John Tubridy – Board Chair Franchise Network of Pittsburgh Ann Gatty, Ph.D.– Chair-Elect Strategic People Solutions Philip J. Scolieri, J.D.– Vice-Chair Scolieri Law Group, P.C. Lisa Hunt - Past Chair USX Federal Credit Union
Gary Basilone – Foundation Chair Basilone Executive Search Kent Clifton - Treasurer AXA Advisors, LLC Gregg Hill – Secretary Dollar Bank Jim Boltz - President Pittsburgh North Regional Chamber
B OARD
OF
D IRECTORS
Tracy Armstrong, North Pittsburgh Greeting Company Judith Bernhard, Advance Sourcing Concepts, LLC
June 28: Bravo! McKnight Road, 11:30am - 1:00pm 4976 McKnight Road Pittsburgh, PA
Ryan Breen J.D., Breen Law Firm, LLC
CONNECTIONS
Andrew Chiapusio, Mars National Bank
Daily networking events for business leaders throughout our Pittsburgh North region Wexford: Tuesdays, 7:30 a.m. Chamber Headquarters, 5000 Brooktree Rd., Suite 100 Warrendale: Tuesdays, 11:30 a.m. DoubleTree By Hilton 910 Sheraton Drive. Sponsored by Dollar Bank Cranberry Twp.: Wednesdays, 7:30 a.m. Council Chambers, 2525 Rochester Road. Sponsored by Word FM Ross Twp.: Thursdays, 7:30 a.m. Treasure House Fashions, 7607 McKnight Road Gibsonia: Fridays, 7:30 a.m. St. Barnabas Health System 5847 Meridian Road. Sponsored by i.e.Insurance
Steve Carpenter, Northwood Realty Steven W. Diffenderfer, NexTier Bank Todd Harris, Liberty Insurance Agency Nicholas D. Kennedy, FamilyWealth Management Group John Laslavic, ThistleSea Business Development, LLC Al Marschke, ACN Business Essentials Robert O’Friel, Luttner Financial Group Dan Penberthy, NexTier Bank Jan Stevens, Coldwell Banker Kim Yerace, Petroleum Technical Services, LLC
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Pittsburgh North Regional Chamber
PNRC Member George Payne Federated Mortgage Corporation “George is an unselfish supporter of the Chamber and its businesses. Whether it is by being an Ambassador, attending ribbon cuttings or volunteering at events, you can count on George. He is one of our most well-known and active members,” said Jim Boltz, President PNRC. Al Davidson said, “George is one of those people that you look forward to seeing every day because you know you’ll feel better afterwards. He is always quick with a handshake and a kind word. He always goes over and above in contributing to the chamber. Being a part of the Ambassador Committee, volunteering at events and a constant at ribbon cuttings George has made his impact on the chamber and its members in a number of positive ways.” “As one of the Chamber’s Ambassadors, George is a fabulous representation of our organization. He is welcoming to guests and always goes out of his way to make sure people are connected. If there is a Ribbon Cutting, you can be sure that George is there to celebrate with the new member. He is genuine and caring and truly wants to help businesses succeed. I am sure that under George’s tweed suit jacket, are angel’s wings,” said Heather Schwartzbauer. Robert O’Friel of Luttner Financial Group said, “George Payne should be a role model for all Chamber members. He is the first to extend an invitation to meet and build a relationship for the purpose of just that--to build a relationship. Not to sell you something. Recently I contacted George to look at a mortgage refinancing for a client. After crunching the numbers, George was the first to say that in the end, it wouldn't make sense for the client to make a change because savings wasn't significant enough. George did not want to benefit from a sale that didn't make sense for the client. That's impressive to me. In addition, George is one of the most reliable members of the Ambassador Committee, attending nearly every ribbon cutting, business after hours, and taking his time to meet new members one on one to ensure they are quickly engaged as a member. I also see George regularly as a volunteer helping out at Chamber signature events.”
Member Testimonials I am so glad that I decided to join the Pittsburgh North Regional Chamber. This has been a great experience and I am really looking forward to continue to build lasting relationships. My motive for joining was to try to promote that we are a locally owned and operated Sears franchise providing carpet cleaning, garage doors and handyman services. I have gained so much more than just trying to get the word out on who we are. I found that the best thing for me to do is just to get others to know who I am and to see what our values are and not to care if any business is generated as a result. I have met some really great people involved in all types of industries who have been able to help me with my needs for our business and who have also referred us to different types of industries that have been able to help me expand my circle of contacts. When joining the chamber, I did not realize that there would be so much more benefit than just trying to acquire business. It has been a rewarding experience that is in its infant stages for me. When joining the chamber you are not just joining an organization—you are gaining a team of like –minded people who are all interested in helping you develop and grow your business. This scope of penetration includes positive testimonials from those who have used us and also the testimonials of all the great people that I have met.
Greg Heibert Member testimonials are the Chamber’s best and most effective way to promote the benefits and services that a Chamber membership provides. Share your success with the Chamber and your story may be featured in an upcoming edition of Corridors. Email all testimonials to Patty Bittle
PghNorthChamber.com
June 2017
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Home Sales in our Area by Steve Carpenter Existing homes sales in our area continue to be steady compared to the last six years. Inventory levels are low which is driving demand for new construction. New home developments are breaking ground every year. In Cranberry Twp. alone, there are a total of 108 residential developments. Existing homes sales in the $201,000 to $300,000 price range outpaced all other price ranges with 2,886 units sold in the last 6 years. Unit sales in the $100,000 to $200,000 range totaled 2,322.Homes in the $300,000 to $400,000 range totaled 1,817 units, followed by $401K-$600K at 1,491 units. Homes in the $601K-$999K totaled 682 units followed by 1 Million to 10 Million range which came in at 111 units sold. Areas Included in this data are, Adams Twp. Bradford Woods, Cranberry Twp. Mars, Marshall, McCandless, and Middlesex Twp. Pine Twp. NAL Richland. The numbers do not reflect new construction that can be estimated at around 180 to 250 units per year in the last six years.
For more specific information, call Steve Carpenter Northwood Realty Services Adams Office. Information provided by West Penn MLS, Inc. Information Deemed Reliable, But Not Guaranteed.
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BRIDGEWATER CROSSING SET TO MEET HOUSING DEMAND IN BEAVER COUNTY by Jim Thomas Following the announcement of Shell petrochemical plant, there will be many construction projects that occur in Beaver and the surrounding counties. CAVCON is managing one of the first ancillary construction projects; the construction of Bridgewater Crossing, a 3 building apartment complex featuring over 255,000 square feet. For over 30 years, CAVCON, a full-service, merit shop general contractor, has worked with a variety construction projects offering a complete turnkey approach from pre-construction design to general construction build and completion delivery services. As a single source solution for our clients, we take a project from inception, design/build through construction management and delivery. The announcement of the Shell petrochemical plant has stirred up quite a buzz in the region. Creation of jobs, preparation of workforce and integration of higher education to prepare a workforce of skilled trades. With a project this size, there is a magnitude of trickle down effects and ancillary growth from housing, restaurants and building suppliers. With the focus on new building, sometimes it is easy to overlook older structures that may be converted into a new purpose. Often owners may struggle with whether to start from scratch or try to remodel. In the scheme of things if a building is structurally sound, the roof and the outside skin can be updated and changed. That’s the value of working with a design/build construction firm. What if you knew your building project timeline could be cut in half, your costs for construction were less, and you were able to open for business sooner with incoming revenue? To top it all off, sustainability and LEED were incorporated into the project. Modular space solutions are more than box like structures, they can be custom built to allow unmatched flexibility and adaptability, proving that form need not be sacrificed for function. Custom interior finishes can be incorporated into the overall design of the custom tailored project. Interior and exterior buildouts are done simultaneously with building codes and third party inspections performed onsite at the factory. As an approved Varco Pruden builder, CAVCON partners with a world leader in providing innovative pre-engineered steel building systems. Each year, Varco Pruden supplies approximately 6,000 buildings ranging from 1,200 square feet to more than one million square feet under roof.
A Varco Pruden School Gym
Customers can save up to 30% in overall construction for certain building types through customization and computerassisted design. This reduces time for planning, on-site organization and construction by one third. They realize a faster occupancy and a quicker return on investment These solutions allow for simultaneous production of site work, as well as interior construction, it reduces the overall time to occupancy. The end result: a high quality, custom solution in less time than a conventional site-built project. By simultaneously utilizing an onsite preparation and off-site interior build out, the solution is delivered in half the time. New project launches have saved up to 40% in start to finish time utilizing this type of construction. Steel structure custom designs result in insulated roof and wall systems that can significantly reduce HVAC costs. Simplified design and code process allows for coordination with streamlined delivery. Unlike a wooden structure, steel fabrication reduces maintenance and diminishes deterioration, cracking, rot, and insect damage. These structures are easy to expand and accommodate growth. Removing approximately 80% of the building construction activity from the site location significantly reduces site disruption, vehicular traffic and improves overall safety and security. So, for schools, hospitals, or other active businesses, reducing on-site activity and thereby eliminating a large part of the ongoing construction hazards, is a tremendous advantage
PghNorthChamber.com
June 2017
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Getting A Mortgage: 2017 update The mortgage industry has gone through drastic changes over the past few years. Prior to the 2008 financial crash, lenders used to joke that "all you need to get a mortgage is to be breathing." Times have changed beyond recognition from those days. With Dodd ‐Frank, Appraisal Independence, and other new mortgage regulations over the past few years, standards for loan approval have tightened considerably. In addition, local banks for mortgage lending (fka savings and loans, etc.) have mostly disappeared, having been acquired by larger regional or national lenders. In any case, because of regulations, small and national mortgage lenders are playing by mostly the same rules now. Gone are the days when a personal or business relationship and history with a bank would assure a home mortgage loan on favorable terms. If you are looking to finance a home in 2017, it’s important that you know what the opportunities are and how to capitalize on them. Your mortgage loan originator can explain the changes and guide you through the process. Meanwhile, current interest rates remain near historical lows. Almost no ‘financial experts’ in 2012, during the hundred year low point of mortgage interest
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rates, predicted that rates in 2017, a full five years later, would remain as low are they are today. “Why are you asking me for all this information?” While it is more difficult to qualify for a mortgage today than in 2007, the process in many ways is simply a return to the more rational lending days when, rather than a hand shake with your local bank’s manager or filling out a simple application with few questions asked, homeowners or prospective homeowners were required to prove their income and assets to demonstrate their ability to repay the loan, and have sufficient savings for a down payment and cash reserves. Recent regulatory reforms have only increased the requirement for banks to prove to both outside regulators and internal compliance teams that all their mortgage loans meet the current compliance rules, strict as they may be. As a result, lenders now require complete documentation from beginning to end of the loan process.
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Pittsburgh North Regional Chamber
PghNorthChamber.com
June 2017
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BRIDGEWATER CROSSING SET TO MEET HOUSING DEMAND IN BEAVER COUNTY continued As Beaver and surrounding counties prepare for the influx of work staff and ancillary services needed, consider how a blend of repurposing older structures, along with conventional new construction, pre-engineered steel building systems and modular construction will help to maintain the integrity of our local communities and infrastructure needed to support this project, as well as save time to provide a quick turnaround for services. If we look at how Shell began working in Beaver, it began with a master plan. A roadmap of infrastructure that would be needed to support the facility. As community leaders ponder, the same type of process should be taken into account to ensure sustainability long after the Shell petrochemical plant has been completed as there will undoubtedly be spin off companies that utilize the raw materials to produce byproducts from the Shell production facility. Our region and its workforce will be the beneficiaries this effort.
To learn more about the full range of services CAVCON offers, visit our website at www.CAVCON.com. About CAVCON: CAVCON brings together three generations of Building Owners/Managers and General Contractors with Design/Build expertise focusing on Medical, Commercial, Retail, Manufacturing and Light Industrial projects. As a full-service merit shop general construction company CAVCON provides design-build services incorporating value engineering, collaborative modeling and turn-key general construction services to deliver the best outcomes for our client
7 Spring-Cleaning Tips by HGTV 1. The best refrigerator cleaner is a combination of salt and soda water. The bubbling action of the soda water combines with the abrasive texture of the salt to make a great cleaner.
2. The best way to get rid of lime buildup around the faucet it is to lay paper towels
over the fixture, soak it with vinegar and let it set for an hour. The deposits will soften and become easier to remove.
3. Clean screens with a scrap of carpeting. It makes a powerful brush that removes all the dirt.
4. Clean windows with a rag and soapy water, and then dry them with another rag.
You can also go to an auto-parts store and buy a windshield squeegee, which cleans very well.
5. If drapes are looking drab, take them out of the window, remove the hooks and run them through the air-fluff cy-
cle in the dryer along with a wet towel (to draw off the dust) for 15 minutes. Hang them back in the windows immediately.
6. Clean the blades of a ceiling fan by covering them with a coat of furniture polish. Wipe off the excess and lightly buff. 7. Sometimes comforters, blankets and pillows don't need to be cleaned, but they do need to be aired out after a long winter in your closed-up home. Take them outside and hang them on a clothesline for a day.
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Pittsburgh North Regional Chamber
Getting A Mortgage: 2017 update continued The most common question loan originators hear from their clients is “Why are you asking me for all this information?” Borrowers are required to prove their income and employment with two years of tax returns and need bank statements to prove that they have assets and cash reserves. Money that is being used for a down payment and closing costs must have a paper trail that shows where it came from, since there are rules concerning the available of gift funds. And mortgage approvals are much more difficult for self‐employed applicants, who must prove a steady stream of income for three years with verified tax returns. For mortgage purposes, self‐employed income is considered income from any source(s) where you own 25% or more of the business, regardless of the business legal structure (corporation, LLC, LP, etc.). What’s in store for mortgages this year? Here are some things to keep in mind in 2017. Financial Markets: If the stock market continues to improve and rally, expect mortgage rates to increase. The interest rate of the 10 year Treasury Note is the best
Pittsburgh North Regional Chamber
bellwether of mortgage rates. If you see the 10 year Treasury rate increasing, mortgage rates will most likely follow that trend. Big Events: It would take something big and unexpected to cause the market to reverse course, shifting money into bonds and driving mortgage rates lower. If something like this does happen and you are eyeing a particular interest rate, act quickly. Fannie Mae and Freddie Mac: Pay attention to any news from Fannie Mae or Freddie Mac. If rates rise, current underwriting standards might be adjusted to meet the needs of the shrinking housing market. If you’re looking to purchase a house or refinance one you already own, and there is financial benefit to the terms and rate you qualify for, act on it. Let affordability be the driver of your decision to purchase or refinance a home to meet your financial goals. The market will always change and evolve, and if you can justify the opportunity, it should be something for you to seriously consider.
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Community Connection
Cranberry Township SportCourts about to join SportsPlex! Construction of the CTCC SportCourts in Graham Park is about to get underway. Preparations are being completed for work on the project’s infrastructure – utility lines, restroom, erosion controls, grading, etc. Work to build the courts, which include 8 pickleball courts, 2 tennis courts, 4 horseshoe pits, 3 bocce courts and a community garden will continue through the summer with an expected completion date of mid-October. Concurrently, Graham Park’s access road will be shifted closer to the western edge of the park, allowing more parking spaces to be built by the Miracle League ball field. Traffic will continue in both directions throughout construction using temporary roadways.
End of school year prompts new driver awareness campaign A new wave of yard signs, radar speed signs, and traffic counters are about to go up in a number of Cranberry Township neighborhoods starting May 29, along with increased police patrols. The start of summer typically brings more children and pets out, including play on and around neighborhood roadways. The Drive 25 campaign, with strong support from local homeowner associations, is designed to raise driver attentiveness to the need for increased vigilance and speed moderation. Click here to read more.
Traffic? What traffic? If you ask people around Western Pennsylvania what comes to mind when they think about Cranberry, you’ll get a lot of answers – great parks, great shopping, great jobs, nice homes and so on. But what you’ll hear from almost everyone is something related to traffic. Click here to read more.
McCandless Township Summer grilling safety tips With the summer grilling season just about to begin, Fire Marshal Dan Stack would like everyone to stay safe and have fun. Click here to read more safety tips.
McCandless/Northern Allegheny Heritage Center is open The hours for the center are Wednesday through Friday from 10 a.m. to 4 p.m., and Saturday and Sunday from 1 to 4 p.m. For more info, contact heritagecenter@townofmccandless.org or 412-364-0616 Ext. 300. To see a video of the grand opening ceremony, click here
Pine Township Movies in the Park Enjoy a FREE family friendly movie this Summer! Don't forget to bring your lawn chair or blanket and pack some yummy snacks and drinks to enjoy during the movie. Have a little extra time? Come early for a craft/activity to go along with the movie theme. Date: June 16 Time: Dusk
2017 Summer Recreation Program Ages 6 - 12 (Must have finished Kindergarten and will be entering no higher than grade 6) This 8 week program includes arts & crafts, games, and sports. Several Field Trips are also planned during the summer! Dates: June 19 - August 11 | Time: 9:00am - 12:00pm | Fee: Pine Residents/Pine Community Center Members: $200.00 per child. Non-Residents/Non-Member: $300.00 per child. Field trips (optional) require an additional
fee
Pine Township Community Day This years event includes: Petting Zoo, Children's Activities, Bounce Houses, Food, Ice Creation performances, Pie and Watermelon Eating Contest, Train Rides and will feature The Eldorado Band & fireworks by Pyrotecnico! Date: Saturday, July 15 Time: 4:00pm - Dusk
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NexTier Bank Nonprofit Spotlight
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The Pittsburgh North Regional Chamber would like to thank those who have renewed.
We thank you for your continued support!
20 +Years
Welcome to those who have joined!
Thank you for your referrals!
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Pittsburgh North Regional Chamber
Renting Out a Vacation Home Tax rules on rental income from second homes can be complicated, particularly if you rent the home out for several months of the year, but also use the home yourself. There is, however, one provision that is not complicated. Homeowners who rent out their property for 14 or fewer days a year can pocket the rental income, taxfree. Known as the "Master's exemption," it is used by homeowners near the Augusta National Golf Club in Augusta, GA who rent out their homes during the Master's Tournament (for as much as $20,000!). It is also used by homeowners who rent out their homes for movie productions or those whose residences are located near Super Bowl sites or national political conventions.
Tip: If you live close to a vacation destination such as the beach or mountains, you may be able to make some extra cash by renting out your home (principal residence) when you go on vacation--as long as it's two weeks or less. And, although you can't take depreciation or deduct for maintenance, you can deduct mortgage interest, property taxes, and casualty losses on Schedule A (1040), Itemized Deductions. In general, income from rental of a vacation home for 15 days or longer must be reported on your tax return on Schedule E, Supplemental Income and Loss. Your rental income may also be subject to the net investment income tax. You should also keep in mind that the definition of a "vacation home" is not limited to a house. Apartments, condominiums, mobile homes, and boats are also considered vacation homes in the eyes of the IRS. Further, the IRS states that a vacation home is considered a residence if personal use exceeds 14 days or more than 10 percent of the total days it is rented to others (if that figure is greater). When you use a vacation home as your residence and also rent it to others, you must divide the expenses between rental use and personal use, and you may not deduct the rental portion of the expenses in excess of the rental income.
Example: Let's say you own a beach house and rent it out during the summer, typically between mid-June and mid-September. You and your family also vacation at the house for one week in October and two weeks in December. The rest of the time the house is unused. The family uses the house for 21 days and it is rented out to others for 121 days for a total of 142 days of use during the year. In this scenario, 85 percent of expenses such as mortgage interest, property taxes, maintenance, utilities, and depreciation can be written off against the rental income on Schedule E. As for the remaining 15 percent of expenses, only the owner's mortgage interest and property taxes are deductible on Schedule A.
Are you getting all of the tax breaks that you are entitled to? Maybe you are‌but maybe you’re not. Why take a chance? Let the tax experts at Holsinger provide the guidance you need. Call Holsinger today and make sure you get all of the tax breaks you deserve.
PghNorthChamber.com
June 2017
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