Andrew Lieb, Esq. takes a look at the most recent Fair Housing Initiatives.
Click here to read the full article published in The Suffolk Lawyer.
Click here to read the full article published in The Suffolk Lawyer.
Friday, June 03, 2016
Thursday, June 02, 2016
The New York State
School Tax Relief (STAR) program has changed. Rather than working with the local
assessor, as was required in the past, homeowners will now need to register
with New York State in order to apply for the program. Additionally, qualifying
homeowners will receive a rebate check in the fall of every year rather than
receiving a reduction directly on their school property tax bill.
- Basic STAR: At least one owner must use the property as a primary residence and the total combined household income of the owners and owners’ spouses who use the property as a primary residence must be $500,000 or less.
- Enhanced STAR: At least one owner must use the property as a primary residence, all owners must be 65 years or older, and there must be a total combined household income of all owners (not just those who reside at the property) and any owner’s spouse who uses the property as a primary residence of $84,550. All owners do not need to be over the age of 65 if they are spouses, registered domestic partners or siblings so long as at least one owner is at least 65.
Starting this year, qualifying
homeowners must register with New York State, which can be done online here
or by phone at 518-457-2036, in order to apply for the STAR program. If the
homeowners qualify, they will receive their STAR credit as a rebate check each September.
If homeowners are
already receiving a STAR exemption and purchased their primary residence prior
to May 1, 2014, they do not need to re-register to continue qualifying for the
exemption, and they will continue to receive the exemption as a reduction on their
school property tax bill. Only those who purchased their primary residence
after August 1, 2015 or did not apply before the 2015 STAR application deadline
are affected by these changes.
Homeowners can check your local assessment
roll to see if they are already receiving a STAR exemption. Understanding
how the STAR credit program works and what changes have been implemented can help
save time and money into the future.
Tuesday, May 31, 2016
The
U.S. Department of Treasury recently released Supplemental
Directive 16-04 (Making Home Affordable
Program – Handbook for Servicers Version 5.1). This Supplemental Directive announces the
release of Version 5.1 of the
Making Home Affordable (“MHA”) Handbook (the “Handbook”). This newest version of the Handbook consolidates
the “sunset” provisions provided by the U.S. Department of Treasury in Supplemental
Directive 16-02 (MHA Program Termination
and Borrower Application Sunset) and Supplemental
Directive 16-03 (MHA Program Termination
and Borrower Application Sunset II) into one location for ease of reference.
Distressed
homeowners who are facing foreclosure must submit their request for mortgage assistance
under the MHA program by December 31, 2016.
After that date, lenders will no longer be required to comply with the
MHA guidelines set forth in the Handbook.
This will leave many distressed homeowners with few remaining options
and most will face the possibility of foreclosure.
The MHA
program was announced in 2009, by the Obama Administration, as a relief to
distressed homeowners. The MHA program’s
objective is to provide guidelines to lenders to modify the terms of eligible
mortgages so that “at-risk” homeowners would be able to reduce their monthly
mortgage payments and to avoid foreclosure.
According to the most recent MHA Program
Performance Report,
during the last 7 years, the MHA program has only helped 2.5 million of the 7
to 9 million homeowners that were identified as “at-risk” by the Obama
Administration in 2009. This means that
the remaining 4.5 to 6.5 million “at-risk” homeowners who do not submit their
request for borrower assistance by December 31, 2016, will be faced with
foreclosure.
Congress’
decision to abandon the MHA program seems misguided because of the time and
resources it has invested in the program.
Most importantly, the termination of the program on December 31, 2016,
leaves up to 6.5 million “at-risk” homeowners scrambling to submit requests for
assistance of face the possibility of foreclosure.
