HUD Allows Access to Tax Credit for Down Payments!

HUD policy now allows “monetization” of the Federal homebuyer tax credit. In the HUD Mortgagee letter dated May 29, 2009, HUD states, “The American Recovery and Reinvestment Act of 2009 (Recovery Act) provides for as much as an $8000 tax credit to qualified first-time homebuyers. FHA supports this important initiative to promote homeownership... Consistent with existing FHA policy, FHA will permit entities covered by Section 528 of the National Housing Act to use the current authority to offer tax credit advances with second liens in a manner consistent with the requirements in 12 U.S.C. 1709(b)(9). Eligible government agencies and instrumentalities of government are described in handbook HUD-4155.1 5.C3 and 5.C4.”

Under guidance drafted by the FHA, all lenders approved to do business with the agency will be authorized to provide bridge loans at closing -- secured solely by the tax credit that the borrower anticipates receiving from the IRS. State and local government agencies and nonprofit organizations approved by the FHA will be allowed to offer either bridge loans or second mortgages secured by the house.

What this means, simply, is that homebuyers now have options and means to access tax credits in advance when purchasing a home. Over 600,000 tax homebuyers have already applied for the tax credit, and now early access to the tax credit makes it a great time to buy a home in California!

Click here for details of the program and links to important forms.

New FHA Title I Loan Limits Effective Immediately

FHA Commissioner Brian Montgomery has signed and released a Mortgagee Letter to Title I lenders which announces an immediate increase to the loan limits under the existing FHA Title I program. The key loan limit increase is the 'home only' limit which will rise immediately from $48,600 to $69,678. The increased loan limits fall under the existing Title I underwriting parameters and program, and will apply to all loan applications taken on or after the date of the Letter’s posting.

Any current FHA Title I lender will be eligible to originate loans under the increased Title I loan limits. Please note that remaining changes to the Title I program, including underwriting guidelines and new insurance system, will become effective at a later date. We will post those changes as soon as they are effective.

Click here to review the letter sent to all Title I lending institutions.

California Tax Credit for New Home Purchase

California Legislators have approved a Tax Credit of up to $10,000 for new homes, including real and personal property manufactured homes, purchased on or after March 1, 2009 and before March 1, 2010. Qualified Home Buyers and who purchase a Qualified Principal Residence/New Home may apply for a tax credit equal to equal five percent of the purchase price or $10,000, whichever is less. The available credit allocated by the State is $100,000,000 and will be allocated on a first-come first-served basis.

Applications for the allocation will be accepted by the Franchise Tax Board (FTB) for escrows that have closed on or after March 1, 2009. The Franchise Tax Board has posted detail procedures on their website and recommends that interested parties check their site frequently for updates.

Click here to go to the FTB Information Page.

Click here to review the provisions of Taxation and Revenue Code 218

President Obama Signs Legislation that Extends and Enhances the Temporary Tax Credit

On February 17, President Obama signed into law The American Recovery and Reinvestment Act of 2009 which includes legislation that provides an enhanced temporary tax credit. These enhancements provide for a credit of up to $8,000 and extend the time frame for homebuyers to purchase a home. First-time home buyers who purchase a home on or after January 1 and before December 1, 2009, may qualify for up to an $8,000 tax credit that does not have to be paid back as long as you own the home for three years. For further information, click here to download our Quick Reference Brochure.

For further discussion and answers to frequently asked questions regarding the tax provision, click here.

Please note: The information provided in this pamphlet and on CMHI’s website—www.cmhi.org—is not intended, and should not be construed, to be legal, tax or investment advice. Before taking any action based on this information you are strongly encouraged to, and should, consult with a qualified legal, tax and/or investment professional to whom you have provided all pertinent facts and information as to your individual situation.

The information in this pamphlet and on CMHI’s website is intended to be general information only and, as such, it is provided with no guarantee as to its timeliness, completeness or accuracy. You should consult with your chosen advisor for the most complete and up-to-date information and guidance concerning the tax credit provisions.

CMHI 2009 Annual Convention

CMHI is pleased to announce that the 2009 CMHI Annual Convention, Jack E. Wells Memorial Awards Banquet and annual Golden Golf Tournament are scheduled and we are now accepting registrations. On March 18th – 19th, we will once again be at the beautiful Pechanga Resort and Casino in Temecula, California. This year we will be honoring Russ Williamson as our Jack E. Wells Memorial Award recipient and Gordon Collins will be receiving the Richard R. Percival Lifetime Achievement Award. The schedule of events, registration form and information about hotel accommodations can be viewed or printed from our website. Driving directions and information about the Pechanga Resort is available from their website. Click here for convention brochure. Click here for printable registration form.

California Manufactured Housing Institute Names 2008 Award Recipients

Jess Maxcy, President, California Manufactured Housing Institute (CMHI), announced this year's recipients of the association's highest awards - Russ Williamson, Jack E. Wells Award and Gordon Collins, Richard R. Percival Lifetime Achievement Award. 

Russ Williamson, Division Manager for Skyline Homes, San Jacinto, has been selected by a committee of former recipients to receive the highest honor awarded by CMHI - the Jack E. Wells Memorial Award. Click here for the full story...

Manufactured Home Buyers – Beware of Internet Sales from Out-of-State Sellers!

The California Department of Housing and Community Development has posted the following article on their website warning consumers of the potential consequences of purchasing a manufactured home via the internet from out-of-state. They say, “Consumers interested in purchasing manufactured homes should use extreme caution when considering a manufactured home ordered over the Internet from an out-of-state seller.” To read the article in its entirety, please click here….

IMPORTANT CONSUMER ADVICE WHEN PURCHASING A MANUFACTURED HOME

The California Department of Housing and Community Development has posted on their website several recommendations and advice for consumers who are considering the purchase of a manufactured home. HCD outlines - who you can buy a manufactured home from, information about internet sales, and many ideas to consider when choosing a home. To read the complete article, click here…

President Bush Signs The Housing and Economic Recovery Act of 2008 (H.R.3221)

CMHI President Jess Maxcy has issued a Memorandum to all CMHI Members which includes a synopsis of The Housing and Economic Recovery Act of 2008 (H.R.3221) and Questions and Answers in regards to the included $7,500.00 first-time homebuyers tax credit. A special thank you goes to all members of the industry that worked so hard to pass this important legislation. Please click here to read the memorandum in its entirety.

Wildland Urban Interface (WUI) Emergency Regulations

The California Department of Housing and Community Development (HCD) is proposing to adopt emergency regulations affecting the exterior design, construction, installation and alteration of any new or used manufactured home, mobilehome , multifamily manufactured home or commercial modular designated for installation in Wildland Urban Interface Fire Areas in California. The proposed emergency regulations are adopted into California Code of Regulations, Title 25, Chapter 3, Subchapter 2, and adopt by reference portions of the California Code of Regulations, Title 24, California Building Code, Part 2, Chapter 7A.

All property owners, developers and retailers who plan on building a home in these areas should familiarize themselves with these requirements. To review the information please visit these websites and their respective links:

LATEST UPDATES ON PROPOSAL

Anticipated Effective Dates for New Manufactured Unit and Mobilehome Park Ignition-Resistant Construction Standards (Members only)

Anticipated Effective Dates for New Manufactured Unit and Mobilehome Park Ignition-Resistant Construction Standards (Members only)

Wildland Urban Interface (WUI) Emergency Regulations 09-01-2008 (Members only)

CA Building Code Chapter 7A (Members only)

California Department of Housing and Community Development (HCD) Website (Members only)

State of California Office of the State Fire Marshall Website (Members only)

Proposed Maps (Members only)

The National Manufactured Housing Institute Statement on the
CDC Preliminary Findings on Formaldehyde in FEMA Emergency Housing

The National Manufactured Housing Institute has issued a statement on the CDC preliminary findings of currently occupied FEMA emergency housing for survivors of hurricanes Katrina and Rita that struck the Gulf Coast in 2006. Please click here to read their statement in its entirety.

Out of State Sales to California Residents - Use Tax Is Sales Tax!
Recently, we have received many phone calls at the CMHI office regarding manufactured homes sold out of California where sales tax is not being charged.  These homes are then shipped to California and subsequently installed. The following is a brief explanation of use tax and how it applies. Click here for continued story...