Early Voting Available for Montgomery County Residents
In Montgomery County, voters can vote early until Thursday, September 9. Polls will be open from 10 a.m. - 8 p.m. Read details. If you are interested in volunteering for any of the GCAAR-endorsed candidates in the Montgomery County elections on Primary Election Day, September 14, please contact GCAAR’s Maryland Government Relations Consultant, Meredith Weisel, at mweisel@gcaar.com
2010 Elections
Throughout the months of April, May and June, the GCAAR public policy committee, RPAC committee and board members interviewed candidates for the Montgomery County Council and County Executive’s office. On June 28, 2010, GCAAR announced its endorsements for those races. Please read the press release for more details, click here.
GCAAR sent out its press release to the membership, media and general public on the list of endorsements made for the 2010 Primary Elections. The endorsements were picked up by Maryland Politics Watch, an influential blog in Maryland politics.
AAA Bond Rating is Secure for Montgomery County
Montgomery County has retained its Triple-A bond rating from Moody’s. The Council’s adoption of a six-year fiscal plan framework was vital retaining the AAA rating. Montgomery County is now in a “stable outlook” category. Read the Washington Business Journal article.
Budget
On June 29, the Montgomery County Council approved a six-year fiscal plan that outlines the spending limits needed to achieve balanced annual budgets. The Council approved measures that would gradually increase County reserve funds from 6 percent to 10 percent of adjusted governmental revenue over a nine-year period. Read more
Water Resources Functional Plan
On June 22, the Council held a public hearing on the Planning Board’s draft Water Resources Functional Plan. In 2006, the State General Assembly adopted House Bill 1141 that requires a Water Resources Element to be incorporated into local governments’ comprehensive plans addressing the effect of planning growth to 2030 on:
• Drinking water supply adequacy
• Wastewater treatment capacity, and
• Maintaining water quality standards
The policies and recommendations of the plan will guide revisions and amendments to future master, sector and functional plans. Read the memorandum dated June 18, 2010 and June 22, 2010.
Bill 40-10, Stormwater Management – Revisions
Expedited Bill 40-10, Stormwater Management, was introduced on June 29, 2010. A public hearing was held on June 13 and a worksession followed on July 22, where committee members received an overview of Bill 40-10 and heard from stakeholders and Executive staff. Stakeholders met and resolved points of concern on July 26 and Bill 40-10 was subsequently enacted on July 27. Read the Committee worksession packet, including a fiscal impact statement from the Office of Management and Budget.
Executive Regulation 2-10, Home Energy Loan Program
On Tuesday, July 27th the Montgomery County Council approved County Executive Regulation 2-10. This regulation implements the fundamental administrative guidelines for HELP. Unfortunately, GCAAR has been informed that the Montgomery County Home Energy Loan Program is on hold until further notice. This is a result of recent statements made by Federal Housing Finance Agency (FHFA) concerning the relationship between HELP and existing mortgages held by participants. A more detailed explanation of this issue is provided on GCAAR’s website. Efforts are underway at the federal level to address this situation. Until this situation is clarified the County will not move forward with implementation of HELP. Read more.
NAR - Flood Insurance Extended
On July 2 President Obama signed into law H.R. 5569, an extension of National Flood Insurance Program (NFIP) authority until September 30. The bill is retroactive and will cover the lapse period from June 1 to the date of enactment. NAR will continue to work with Congress on the 5-year NFIP Reform bill and will continue to provide regular updates on our efforts. Read more.
NAR - Closing Date Extended to September 30
On June 30 the Senate passed a stand- alone bill that extended the date for closing on a tax credit-eligible home from June 30 to September 30, 2010. The extension is seamless, so closings that occur between July 1 and the date the President signs the legislation will satisfy the requirements of the credit. In order to get the benefit of this closing date extension, the parties must have entered into a contract for the purchase on or before April 30, 2010. Read more.
Francoise Carrier Named New Chair of Montgomery County Planning Board
On May 18, 2010, the Montgomery County Council voted unanimously to name Francoise Carrier of Rockville to fill the retired seat of Royce Hanson for a four-year term as the new chair of the Montgomery County Planning Board. Read more.
Montgomery County Council Approves $4.3 Billion Total Operating Budget for FY11
On May 27, 2010, the Montgomery County Council approved a $4.3 billion total County operating budget for Fiscal Year 2011, which begins July 1. The budget is 4.5 percent less than the approved budget for FY10, marking the first decrease in a total budget since 1968. Read more.
Montgomery County Council Approves ‘Great Seneca Science Corridor’ Master Plan
On May 4, 2010, the Montgomery County Council voted unanimously to approve the “Great Seneca Science Corridor” Master Plan. The long-term plan will allow the area near Shady Grove Road and Darnestown Road to develop into one of the nation’s premier areas for scientific research and development. Read more.
Expedited Bill 14-10, Recordation Tax -Allocation of Revenue
Expedited Bill 14-10, Recordation Tax -Allocation of Revenue, was introduced on March 23, 2010. Bill 14-10 suspends the current requirement that portions of the recordation tax be allocated to the cost of County Government capital projects, rental assistance programs for low and moderate income households as well as takes funds from the portion dedicated for MCPS capital improvements and Montgomery College educational technology. GCAAR President Shelly Murray testified before the council at the May 4, 2010 public hearing in opposition to the bill. Even though the legislation was approved, it was amended so that the diversion of funds only goes until 2011 as opposed to 2012 as was originally set out. (Copy of packet from public hearing).
Maryland Attorney General's Advice on Taxes for Short Sale Transactions
Maryland Attorney General's letter: On Wednesday January 27, Maryland Attorney General Doug Gansler's office released an advice letter on whether a county has the authority to assess recordation taxes on debt of a "short sale" seller of real property that is forgiven by the lender. Speaking to over 200 REALTORS® at the Maryland Association of REALTORS® legislative day, Attorney General Gansler discussed the letter that states, "While not expressly prohibited, it is my view that the counties do not have the authority to include debt forgiven by the seller's lender in calculating the consideration on which the recordation tax will be calculated." To read a copy of the AG's letter, please click here.
Background: GCAAR recently informed members that several counties in Maryland had recently started charging recordation and/or transfer taxes on the unpaid principal balance of the mortgage instead of the sales price on short sales. On Tuesday, January 12, GCAAR was informed that the Montgomery County's Department of Finance Transfer Office had decided to hold off temporarily on their position that short sales should be taxed on the unpaid principal balance of the mortgage as if the excess debt over and above the sale price is being waived/cancelled.
However, both Anne Arundel County and Prince George's County had moved forward with this position. REALTORS® reported that settlements were being delayed because of this new unexpected additional tax on short sale transactions. GCAAR along with AACAR and PGCAR worked with MAR to try to stop the counties from charging these "new taxes." MAR sought a legal opinion from the Maryland Attorney General's office to clarify the definition of "consideration" for these taxes on short sale transactions.
Counties Status as of Friday, January 29: GCAAR has been informed that Montgomery County is still at a temporary halt, while the County Attorney's office continues to conduct its own legal analysis. They are hoping to release a formal opinion within the next 30 days. Anne Arundel County has stated that they will no longer be charging taxes on the forgiven debt and will continue the practice of just charging taxes on the sales price agreed upon by the buyer and seller. PGCAR has stated that Prince George's County has also not released a formal opinion and is suggesting that REALTORS® and title professionals who have settlements pending over the next several days contact Michael Dougherty, Finance Director, directly to negotiate the tax. Mr. Dougherty offered his direct line at 301-952-4013.
Associations Seeking Legislation: The Attorney General's office has said that in their view the counties do not have the authority to include debt forgiven by the sellers' lender in calculating the consideration on which the tax will be calculated. However, they have also stated that taxing recordation taxes on the forgiven debt in a short sale is not expressly prohibited by statute. Therefore, the associations are preparing to move forward and seek legislation that will clarify that the excess debt owed on a mortgage is NOT part of the "consideration" between the two parties in a real estate transaction. GCAAR's government affairs staff is working diligently on this issue and will keep members informed as we receive any new information. If you have any questions, please contact Meredith Weisel, VP of Public Policy for Maryland at mweisel@gcaar.com.
Legislative Success - Tax Issue Affecting Short Sale Transactions Put on Hold!
On Tuesday, January 12, GCAAR was informed that the County’s Department of Finance Transfer Office has decided to hold off on their recent position regarding recordation and transfer taxes on short sales until further review. Their position is that short sales should be taxed on the unpaid principal balance of the mortgage as if the excess debt over and above the sale price is being waived/cancelled. Below is the new memo released from the Department:
Dear Clients of the Montgomery County Transfer Office:
We have decided to initiate further review of the Short Sale issue.
Until our review is complete, you may continue to submit Short Sales for processing (at the contract purchase price) as in the past.
Note: If, after further review, the final conclusion is that “consideration” may exceed the Short Sale purchase price, we will give you ample advance notice of this result and the appropriate procedure for calculating “consideration”.Thank you,
Tim Jones
Tax Operations Manager
GCAAR's government affairs staff is working diligently on this issue and will keep members informed as we receive any new information. If you have any questions, please contact Meredith Weisel, VP of Public Policy for Maryland at mweisel@gcaar.com.
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