Tax Credit Can Be Used for Down Payment

Daily Real Estate News May 12, 2009

Tax Credit Can Be Used for Down Payment Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C.

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

Developers propose shopping center for The Flats in Coatesville

Without a slide show, architectural renditions or any other frills, developers hoping to put a grocery store and other retail shops on what is currently a contaminated, desolate site made their pitch to City Council on Monday night. City Council did not take any action on the proposal, which the city's Redevelopment Authority approved last week. But council is expected to support or reject the plan at its May 11 meeting.

Mosaic developers said they hope to construct a roughly 82,000-square-foot shopping center with a grocery store as an anchor. It will occupy the southern half what is known locally as The Flats — 26 acres north of West Lincoln Highway and west of Route 82 along the east bank of the Brandywine Creek. It's still unclear what will be done with the northern portion of the site. Previously, Iacobucci Homes was in the mix with the intention of building row homes and condominiums on the site. But the company has since pulled out of the project.

Last week, Chetty Builders and The Shelter Group presented their hopes for the site to the authority.

Chetty Builders' plan includes building about 90 townhouses. The Shelter Group told the authority it would like to build about 75 apartments for senior citizens at The Flats. The authority has made no decisions on either company's proposals.

Source: Daily Local; 4/30/09

West Goshen residents fret road-widening project

West Goshen Township's plans to widen a section of Boot Road near the Route 202 interchange to deal with heavy traffic from QVC and other business parks has drawn the ire of local residents. The area to be widened is Boot Road between Greenhill Road and Wilson Drive.

Township Manager Casey LaLonde said the project, which is a joint endeavor of West Goshen and East Goshen, is just in a preliminary stage. The Pennsylvania Department of Transportation has not approved it yet.

The township plans to hold a meeting with residents regarding the Boot Road corridor improvements at 7 p.m. May 14.

Source: Daily Local; 5/1/09

West Chester approves 87 townhomes for Davis Lumber site

West Chester Borough Council granted Davis Realty Holdings final approval to build 87 townhomes on the 3.85-acre Davis Lumber site at Franklin and Barnard streets.

The Davis Lumber site is in an industrial sector of the borough and is near the former site of Wyeth Pharmaceuticals, which is also considered a prime candidate for residential redevelopment. Hunter Davis, who owns the lumberyard, declined to say when construction would begin. Davis first submitted development plans for the site last summer. The first draft of the plan showed 98 townhomes, but due in part to stormwater issues, the number of residences has been reduced. Davis' site is one of the few remaining lots in the borough suited to a large-scale housing development.

McCool Properties recently received preliminary approval to build 58 townhomes on another such parcel, the former Bishop Shanahan High School site at West Gay and Brandywine streets. Some borough officials have criticized Davis' proposal, saying it is too dense and could create traffic problems in surrounding neighborhoods. However, the proposal conforms to borough zoning, leaving Borough Council members little power to negotiate the number of planned homes.

Source: Daily Local; 4/27/09