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Affordable Housing Forum a Success

Garrett County Board of REALTORS recently hosted an Affordable Housing Forum at Garrett College to discuss current projects, efforts throughout the county, and field questions from the public. The event was open to the public and free for those to attend, providing a delicious spread for lunch, thanks to a grant from the National Association of REALTORS (NAR). The forum was organized by the Garrett County Board of REALTORS Affordable Housing Committee and featured four speakers: County Commissioner Paul Edwards, local attorney Liz Georg, board member Terah Crawford for Garrett Workforce Housing Alliance, and Chris Mullet from Community Action.

The main topic that was covered was an update on the current pilot project in Grantsville, where the county plans to oversee the building of 60 units. The funding for the first phase of this project has been secured through a few local grant opportunities and will cover the infrastructure to be built to start the development. This will include roads, utilities, and stormwater management. The project will likely break ground later this year. While the team of organizers have been in contact with local builders, bids for the construction phase of the project have not been sent out.

The project, when finished, will feature 60 total units consisting mostly of Single-Family Homes with some townhomes and some condos. There will likely be a few of these units reserved for long-term rentals. The land is owned by a trust, which will dictate how the sale of the home works, and how any future sale of that home would work. The county is still discussing the best way to fairly allocate the purchases of these homes, but it will not be an income-based process. The primary goal is to simply provide affordable housing options in a more controlled setting that is not impacted as greatly by the housing market.

Phase 2 of this project will take place in McHenry, and phase 3 will take place in Oakland. Each phase will look slightly different as the total units and types of units may change based on that location’s needs.

While this is a truly exciting project, it will take time to complete. In the meantime, those looking for affordable housing options in Garrett County should contact Garrett County Community Action, a local lender, or their REALTOR, for more information on current programs that are being offered to help first time homebuyers in our area. In many cases, those who qualify for these programs receive down payment assistance that can make the buying process much easier. You can find more information about some of these programs on our blog.

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Funding Restored for First Time Homebuyer Programs

Garrett County Community Action recently announced that funding has been restored for first time homebuyer programs available to Garrett County residents. The program could cover up to 20% of the purchase price that can go towards the down payment and/or closing costs. This is especially beneficial because there is no interest changed on the loan. The loan is forgiven in its entirety in either 5 or 10 years, depending on if the loan is more or less than $15,000.

To receive the most benefit from the funding, applicants will apply through two local grants, the Pathway to Homeownership Grant and the additional block grant to fill in gaps if needed to get to the 20%.

To qualify for this program and the loan, applicants must meet designated income guidelines below 80% Average Monthly Income (AMI) for Garrett County. The property must be located in Garrett County and the applicant must reside in the residence full time. In addition, two First Time Homebuyer Workshops or the equivalent must be attended. The good news is that these classes can now be completed online in addition to in-person! The residence they’re intending to purchase can be a modular or double-wide home as long as it is on a permanent foundation.

A first-time homebuyer is defined as a person or a group of people who have not owned a home during the 3-year-period preceding the purchase of a home. For more information on this program, you can reach out to any local lending institution, or contact Garrett County Community Action directly at 301-334-9431.

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FHLBank Atlanta Announces $4 Million in Additional Funds to Support Homeownership

ATLANTA, November 7, 2023 — Federal Home Loan Bank of Atlanta (FHLBank Atlanta) announced today that it is making an additional voluntary $4 million in Affordable Housing Program (AHP) Homeownership Set-aside funding available through its members. Eligible borrowers can apply for up to $15,000 to help them purchase or rehabilitate a home.

The additional funding will be available beginning November 8, 2023, through FHLBank Atlanta’s First-time Homebuyer Product, Community Partners Product, and Community Rebuild and Restore Product. The First-time Homebuyer Product provides up to $12,500 in down-payment, closing-cost, counseling, or rehabilitation assistance in connection with the purchase or purchase and rehabilitation of an existing home. The Community Partners Product provides up to $15,000 in down-payment, closing-cost, counseling, or rehabilitation assistance in connection with the purchase or purchase and rehabilitation of an existing home and is available for currently employed or retired law enforcement officers, educators or employees of an accredited or state-recognized private or public school, firefighters, health care workers, other first responders, veterans or their surviving spouse, and essential workers. The Community Rebuild and Restore Product provides up to $10,000 in funding for the rehabilitation of an existing owner-occupied home in “Emergency Declaration” areas or “Major Disaster Declaration” areas designated by the Federal Emergency Management Agency.

“FHLBank Atlanta’s board of directors recognizes the challenges that many working, lower-income families face in today’s housing market and has increased the Bank’s commitment to helping homebuyers for a second time in 2023,” said Tomeka Strickland, FHLBank Atlanta’s Senior Vice President and Director of Community Investment Services. “This additional funding can help make the dream of homeownership a reality for more than 300 eligible borrowers.”

Funding for the AHP Homeownership Set-aside Program is available only through FHLBank Atlanta member financial institutions, and funds are available on a transaction by transaction, first-come, first-served basis.

About FHLBank Atlanta
FHLBank Atlanta offers competitively-priced financing, community development grants, and other banking services to help member financial institutions make affordable home mortgages and provide economic development credit to neighborhoods and communities. The Bank is a cooperative whose members are commercial banks, credit unions, savings institutions, community development financial institutions, and insurance companies located in Alabama, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and the District of Columbia. FHLBank Atlanta is one of 11 district Banks in the Federal Home Loan Bank System. Since 1990, the FHLBanks have awarded approximately $7.6 billion in Affordable Housing Program funds, assisting more than one million households.

For more information, visit  www.fhlbatl.com.

CONTACT: 
David McCaw
Federal Home Loan Bank of Atlanta 
dmccaw@fhlbatl.com 
404.888.5652

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Looking to Buy a Home? Consider Using the MD Mortgage Program

For those who need assistance when purchasing a home, the Maryland Mortgage Program offers wonderful benefits to those who qualify. One of the most important things to note is that this program is funded state-wide and will never run out of funds. This makes it unique among the current programs offered for homebuyers. Even better, since Garrett County is within a ‘targeted area’ outlined by the state, this program is not solely exclusive to First-Time Homebuyers. The criteria to qualify for this loan include household income limits, ownership and occupancy eligibility, and liquid asset eligibility.

The goal of the Maryland Mortgage Program is to make owning a home more affordable. Many of the products offered through this program can include down payment assistance and assistance with closing costs. Only qualified lenders approved by the state can offer this program. One of the best first steps to take when starting the homebuying process is talking to a lender about your options!

Another perk of using a product within the Maryland Mortgage Program is the option for specialty loans that are specific to the borrower’s needs. This can include borrowers with student debt or those looking to purchase in a specific location. There can also be product enhancements added to a product for even more customization.

This is a very under-utilized program in Garrett County! Talk to a local lender about options available for your specific needs and financial situation – make sure to ask them about the Maryland Mortgage Program!

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June General Membership Meeting & Decathlon

June 8th the GCBR REALTOR membership voted in the following Board of Directors for the 2023-24 year:

    • Larry Smith, incoming Vice President
    • Nick Fratz-Orr, incoming Treasurer
    • Kelsey Meyers, incoming Secretary
    • Zach Wesolowski, incoming 3-Yr. Director
    • Chris Nichols, incoming 3-Yr. Director

Along with those who are continuing their previously elected terms:

    • Bryan Chaney, President
    • Melissa Long, Immediate Past President
    • David Meyer, 1-Year Director
    • Laura Newhall, 2-Year Director

We also held an exciting Charity Decathlon with 12 participants divided into 3 teams. The teams competed in five athletic events and answered trivia questions in five different categories. The registration fees to participate in the Decathlon were donated to Reflection House, a new local charity dedicated to helping women recover from drug addiction. You can learn more about Reflection House’s mission and donate here.

Decathlon 2
Decathlon 7
Decathlon 4
Decathlon 3
Decathlon 6
Decathlon 5
Decathlon 1
Decathlon 9
Decathlon 8

The event was made possible by our generous Affiliate & Partner Sponsors.

    • Catering-Triple Platinum + Silver Sponsor
      • Craig Ingram, Attorney
    • Venue & Entrance Fees
      • First United Bank
        • Deane Foy-Platinum + Gold Sponsor
        • April Jones-Platinum + Gold Sponsor
    • Double Platinum 
      • Savage Home Inspections
      • Healy Insurance Group
      • A. Murray Home Inspections
    • Platinum
      • Kelli Hallenbeck w/ Truist
      • Alex Stuck w/ Clear Mountain Bank
      • Bright MLS
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Primary Homeowners Encouraged to File for Homestead Tax Credit Program

As property values have risen over the past several years, many homeowners in Garrett County have seen a significant increase in their most recent tax assessment and bill. For primary residents, there’s a program that can provide a credit to alleviate the full weight of the tax increase. The Homestead Tax Credit is a state-wide Maryland program that helps alleviate the burden of rapidly rising tax assessments. Only available to primary homeowners, who live full time in state, this credit limits the increase the taxable assessments to a certain percentage.

For Garrett County, the limit for Accident, Deer Park, Friendsville, Kitzmiller, Mountain Lake Park, and Oakland is 5%, while Grantsville and Loch Lynn Heights is 10%. This credit does not change your property’s assessed value, but will cap the increase you’ll pay based on the rate in your municipality.

To be eligible, a one-time application must be completed and on file. This can be done online at https://link.edgepilot.com/s/fc96a6f5/Stc1NJ9XPEKykBAG42bjJg?u=https://sdathtc.dat.maryland.gov/ .

If you are unsure whether you’ve filed this application, you can search for your property and application status online at https://link.edgepilot.com/s/59d05052/dX3HIbdJNki8QYlCvimYJA?u=https://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx .

There are certain requirements, but most primary homeowners will qualify. If your application is denied, you may appeal the finding one time.

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2024 Proposed Constant Yield Tax Rate

From the Garrett County Government
2024 Proposed Constant Yield Tax Rate – Communications Office – Garrett County Government

Each year the Maryland State Department of Assessments and Taxation (MD SDAT) notifies each Maryland county of the tax rate that would produce the same revenue from property tax as was produced the year before.

These rates given to the local governments are known as the “Constant Yield Tax Rates” and are based on the new, net assessable property base for that jurisdiction.

Also, by state law, each year the County Governments must legally advertise – quote – “Notice of a Proposed Property Tax Increase” to comply with Constant Yield Tax regulations.

Despite the verbiage above, the Board of County Commissioners may adjust the tax rate, reduce it, or make no change.

At this time, the County Commissioners are proposing no change to the tax rate.

“The Constant Yield Rate hearing is a key aspect of the extensive budget development process,” said Paul Edwards, Chairman of the Board of County Commissioners. “One of the top priorities of the Commissioners is to consider a long-term plan for funding the ever-increasing educational mandates. Year over year, the models show nearly $15 million in additional required funding to be paid to the Board of Education over the next 10 years.”

 
 
What is the Constant Yield Tax Rate?
The Constant Yield Tax Rate is simply a property tax rate that, when applied to Maryland State assessments, will result in the taxing authority receiving the same revenue in the coming taxable year that was produced in the prior taxable year.
 
“The State Department of Assessments and Taxation certifies the constant yield tax rate to the County each year and they have strict requirements on the process,” said Scott Weeks, Director of Finance for the Garrett County Government. “We must comply with the language of the public notice, but the current Board of Garrett County Commissioners is recommending no change to the tax rate for the 2024 budget.”
 
Note, new property or construction added to the rolls for the first time is subtracted from the calculation and allowances for abatements and other deletions are deducted in arriving at the net assessable base for this purpose.
If you have questions on constant tax yield, please consider attending the public hearing at 4:00pm on May 1, 2023. The hearing will also be streamed live on Facebook at www.Facebook.com/GarrettCountyGovernment.
 
You may also email budget comments, until June 5, to gccomments@garrettcounty.org. 
NOTICE BELOW:
The Board of County Commissioners of Garrett County, Maryland proposes to increase real property taxes.
 
1. For the tax year beginning July 1, 2023, the estimated real property assessable base will increase by 9.4%, from $4,630,587,098 to $5,066,121,547.
 
2. If Garrett County maintains the current tax rate of $1.056 per $100 of assessment, real property tax revenues will increase by 9.4% resulting in $4,599,244 of new real property tax revenues.
 
3. In order to fully offset the effect of increasing assessments, the real property tax rate should be reduced to $.9652, the constant yield tax rate.
 
4. The County is considering not reducing its real property tax rate enough to fully offset increasing assessments. The County proposes to adopt a real property tax rate of $1.056 per $100 of assessment. This tax rate is 9.4% higher than the constant yield tax rate and will generate $4,599,244 in additional property tax revenues.
 
A public hearing on the proposed real property tax rate increase will be held at 4:00PM on Monday, May 1, 2023, in the Garrett County Commissioners’ Public Meeting Room 209 located at 203 South Fourth Street, Oakland, Maryland 21550. The hearing is open to the public, and public testimony is encouraged.
 
Public comment will remain open after the hearing until the budget adoption on June 5, 2023. Persons with questions regarding this hearing may call 301-334-8970 for further information.
 
The assessments, revenues, and tax rates above are for Garrett County outside of the municipality of Mountain Lake Park. 
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Different Types of Mortgage Loans (not an exhaustive list)

In the market to buy a home? It can sometimes be overwhelming and confusing to determine which loan program is right for you. This will vary based on the individual, the property intended to purchase, and even the overall purchase price. The most common loan programs will be available through most mortgage providers, but the terms or aspects may be different depending on that bank’s programs.

One of the most common loan programs is an FHA loan. The Federal Housing Administration, or FHA, is an agency of the Department of Housing and Urban Development. FHA loans are insured by the federal government which provides additional security. This is a very attractive program for many first-time homebuyers. FHA loans offer low down payments, can work for lower credit scores, offer more flexible debt-to-income ratios, and even offer the option for rehab loans that take into account future work for your new home (for this to happen, lenders must offer the FHA 203K program).

Another common type of loans are Veteran Affairs, or VA loans. VA loans are offered to active duty service members, veterans, and surviving spouses who meet a minimum of 90 continuous days of active duty. The majority of VA loans do not require a down payment, do not require mortgage insurance, and have capped closing costs. The home you purchase with a VA home must be your primary residence, and there are other factors that come into play, so it may not always be the best option based on the property. VA loans are also government insured.

Conventional loans are not government backed; they are offered by private institutions. These loans will vary by mortgage company in terms of rates and programs. Conventional loans can be used for any type of property and offer the option to cancel your mortgage insurance after you’ve reached 20% equity. There are strict requirements for conventional loans, and private mortgage insurance (PMI) is required if 20% equity is not met.

If conventional loans are out of the question, another government insured loan available in our area is the USDA loan. The U.S. Department of Agriculture (USDA) created this nationwide program to offer financing options for moderate to low-income individuals in mostly rural areas. USDA loans do not require a down payment, but the property and the purchaser must both be eligible. USDA loans can also be used for refinancing if you currently have a USDA loan. There are strict guidelines for the property location and the home must be used as a primary residence.

While these are the most common programs, there are more out there! If you’re interested in purchasing a home and trying to decide which program is best for you, reach out to your local lending institutions! They can provide valuable guidance based on your income, current financial situation, and property in mind.