Santa Clara County 1st-Time Real Estate Buyer Program
Date: Sunday March 22, 2009Posted in: real estate, Santa Clara County, affordable housing, buying a home, first time buyer, tax credit
First-time buyers are being wooed from many different directions these days. As I discussed in a previous post, the IRS is offering a first-time buyer tax credit to real estate buyers who meet certain stipulations. In addition to this federal tax credit, Santa Clara County is offering a Mortgage Credit Certificate Program to first-time buyers. And, as I explain in the federal tax credit post, a first-time buyer is defined as real estate buyers who have not owned a principal residence during the past three years.
A few highlights of the Santa Clara County program:
- It is a dollar for dollar tax credit against the borrower’s federal income tax - currently 15% of the interest paid
- The remaining 85% remains as a standard tax deduction
- The home must be purchased in one of the participating cities in the county - all south county cities are participating
- The home purchased must be owner-occupied
- The buyer’s income cannot exceed $97,800 for 1-2 persons and $112,470 for 3 or more persons
- The MCC Program doesn’t allow co-signers
- Maximum purchase price is limited to $570,000 for resale homes and $630,000 for new construction
- There is a possible recapture tax if the property is sold within the next nine years after purchase
- The County maintains a public list of participating brokers and funding lenders
- Applications for MCC are processed on a first come, first serve basis and there is an application fee of $275
For those interested in taking advantage of the MCC Program, you will want to make sure you are working with a paricipating funding lender. For recommendations on lenders, call me at 408-892-9015 or email me at GMerrick(at)InteroRealEstate.com.
Update from Morgan Hill’s City Manager
Date: Saturday July 26, 2008Posted in: housing inventory, City of Morgan Hill, affordable housing
Morgan Hill’s City Manager, Ed Tewes, spoke at our South County Realtor Association meeting last week regarding current issues being considered in the city. He first spoke about the Affordable Housing Initiative Measure that is slated to be on the November 4, 2008 ballot. Morgan Hill has had voter-approved growth control since 1977. Developers must compete for building permits. The competition provides incentives to developers via a point system to provide certain items to their proposed development in order to get enough points to be awarded building permits. One of the incentives is to include Below Market Rate residences.
The initiative would do away with this incentive and leave affordable housing development to non-profit companies. At this time, it is up in the air as to whether the initiative will appear on November’s ballot because Morgan Hill’s city government has asked the Santa Clara County Superior Court to review the initiative which, the city says, will make it impossible for the city to abide by state housing laws.
Another topic that the City Manager discussed at our meeting is the downtown plan. It is the city’s goal to create a more active environment downtown with people living, working and recreating in the downtown core. The City Council is considering placing a measure on this Fall’s ballot amending its growth control law to bring 500 residential units to the downtown.
The downtown geographical area is from Main Avenue to Dunne Avenue, north to south, and from Butterfield Boulevard to Del Monte Avenue, east to west. In addition to this core area, the amendment would also include the shopping center where the old Albertsons grocery store was and the neighborhood adjacent to the Britton School area.
The last topic that the City Manager briefly touched on was the 2% Utility Users’ Tax that will also be placed on the November ballot. The money collected from this tax will go into the General Fund but will be used to expand the police department by 9 1/2 positions. It is estimated that this will cost each home $10 per month.
Mr. Tewes does an excellent job of keeping the South County Realtors Association informed and we very much appreciate the time he gives us.
