PRIVATE TRANSFER FEES

I think guidance instead of a rule should be provided and I definitely think an impact statement should be prepared.

The fees will benefit non profits and also enviromental groups who are in need of fundings

PRIVATE TRANSFER FEESS

1. Should the FHFA issue a rule in lieu of guidance?

No. FHFA should NOT issue a rule or guidance. There is no valid reason for this

2. Should the FHFA prepare an environmental impact statement on the transfer
fee proposal?

Yes. Environmental groups, non profits all benefit from the funding that private transfer
fees provide.

3. Should there be a ³carve out² for the public use of transfer fees?

No. All private transfer fees should be treated the same way under any
regulation or law so long as they concern the land.

Wall Street Journal on PTF: “New-Home Buyers: Be Aware of Transfer Fee”

                                                                                                                                                                              (See CRE comments on WSJ website below}

                                                                                                                                                                      Editors Note:  See  yesterday’s  Wall Street Journal  Opposition to Transfer Fees

 By JENNIFER WATERS                                                                        

AM October 31, 2010                                       If you’re in the market for a newly built home, be on the lookout for a controversial cost called a private transfer fee. It has gotten the attention of Congress and could change how homeowners value their homes.

A private transfer fee, which is also known as a home-resale, capital-recovery or flip fee, is typically 1% of the sales price that a developer or a homeowners association collects at the time of a sale. It generally is directed toward capital improvements in a subdivision or condominium complex and is paid to a homeowners association.

Transfer Fee inquiry

From what I can research the Center for Regulatory Effectiveness is a lobbying group that is corporation-sponsored. Therefore, I do not think their advice or overview would be in the best public interest. Very, very discouraging for the people who think this may be a comment that benefits anyone but corporations.

Editors Note:  We appreciate your expressing these views directly in lieu of acting  surreptitiously.  The CRE website clearly states it receives donations from corportions, both from profit and not-for – profit corporations. Notwithstanding sponsorship,  CRE is a regulatory watchdog who  works to ensure that federal agencies comply with the “good-government” statutes which “regulate the regulators”. 

Real Estate Transfer Fees

October 30, 2010
Tom McPeak, Ph.D., Land Economist

Q: 1. Should the FHFA issue a rule in lieu of guidance?
A: No. FHFA should NOT issue a rule or guidance. The overwhelming majority of comments to FHFA oppose the issuance of the guidance.

Q: 2. Should the FHFA prepare an environmental impact statement on the transfer fee proposal?
A: Yes. Many environmental groups across the U.S. currently benefit from funding that private transfer fees provide.

Q: 3. Should there be a “carve out” for the public use of transfer fees?
A: No. All private transfer fees should be treated the same way under any regulation or law if they touch and concern the land.

Free Enterprise not more Government

I am writing in strong opposition to imposing the FHFA Guidelines. They are just another example of more government control and will have an extremely negative effect on the economy.
The FHFA should not pass a rule in lieu of guidance, they should leave this alone. What is needed, is full disclosure!
Whatever happened to the concept of free enterprise? You know, let property owners do what they choose to do with their property, and let consumers choose if they want to buy it or not.
That is consumer choice!
There should be an environmental study done, you will find that these fees help pay for green space initiatives.
There should not be a carve out for the public use of transfer fees! All private transfer fees should be treated the same under any law or regulation as long as they touch and concern the land.
These transfer fees are used by developers and land owners to pay for infrastructure and green space. In some cases it offers developers liquidity for their project instead of stalling out and laying off workers.
This is especially true when money is tight and banks are not lending. These Transfer fees or capital recovery fees can help keep developers in business in a tough economy. This allows them to continue contributing to the tax base. The option is to fold and lay off workers thereby adding to the drain on welfare.
We do not need more government, or bigger government, what we need is full disclosure and consumer choice. USA, not the old USSR!!!
S Kay
Economics Teacher

Transfer Fee inquiry

From what I can research the Center for Regulatory Effectiveness is a lobbying group that is corporation-sponsored. Therefore, I do not think their advice or overview would be in the best public interest. Very, very discouraging for the people who think this may be a comment that benefits anyone but corporations.

Editors Note:  We appreciate your expressing these views directly in lieu of acting  surreptitiously.  The CRE website clearly states it receives donations from corportions, both from profit and not-for – profit corporations. Notwithstanding sponsorship,  CRE is a regulatory watchdog who  works to ensure that federal agencies comply with the “good-government” statutes which “regulate the regulators”. 

Written by Jason Arechiga (president of Churchill Estates HOA and Professor of History)

In short, no, yes, no.

If there is full disclosure, the homeowner / land buyer should be well aware of a fee prior to closing and has an option of purchasing. This is not forced on him/her nor can it be applied retroactively.

Additionally, in response the NAR president’s quote, transfer fees DO serve a public purpose and DO provide benefit to the purchasers and the community where the home is located in terms of lowering HOA dues, channeling funds to community improvements done by the HOA, and to maintenance of the community. If they had no purpose, why would HOA’s use them as they do not benefit it’s members directly? I should know, my HOA relies on them extensively.

There are Two Separate Issues

The developer-reserved payments should be banned–period. Either the developer has sold the property or not. The purchasers paid once– that is all, over and out. Here in NY in the 18th Century, Alexander Hamilton devised a perpetual lease, so the descendants of the Dutch patroons would get perpetual payments from the people to whom they had “sold” the land. The Constitution of 1848 prohibited that. So why not do it again? On the other hand, the community-reserved payments, that don’t go into developers’ or private hands, are essential for upkeep and operations. Does FHFA think that projects will be more marketable if they are deteriorating? Does FHFA think that if transfer fees are banned, that assessments, common charges, or borrowings that increase assessments and common charges, will not be implemented by cash-starved Boards of Managers? And does FHFA think that increased common charges or assessments make units and projects more marketable? Or doesn’t FHFA think?

CRE Appreciates the Public Response to Its Questions Dealing with Private Transfer Fees

 In that CRE is staffed by former OMB regulatory officials who developed and managed the federal regulatory review process, we are in an excellent position to identify the “hot button” issues of interest to regulators. To this end CRE reviewed the comments sent to the FHFA regarding its proposed guidance to abolish PTF’s and identified three key issues.

CRE then utilized the Interactive Public Docket (IPD), developed by CRE, to focus public attention on these three critical issues. CRE appreciates the insightful comments it received and is now incorporating them into a CRE position paper on this important topic.