It should come as a surprise to no one that Seattle is growing fast.

But this fast?

In just over three years, Seattle already is halfway to reaching its targeted housing growth for 20 years.

And a few sections of town — Ballard, Eastlake, the Central Area, Greenlake, Lower Queen Anne and downtown — already have exceeded their 20-year targets. The numbers, included within a city report on residential growth, provide fodder for those who argue that runaway growth has sacrificed Seattle’s quality of life. They plan to use the report to oppose a proposal at City Hall that would expand tax exemptions for developers who build condos and apartments in areas targeted for significant growth. To get the tax breaks, some of the units must be priced below market rate.

The City Council’s Housing and Economic Development Committee is to consider that proposal today. “There’s been so much focus on Seattle absorbing its fair share of growth to stop suburban sprawl,” Councilmember Nick Licata said. “Well, we have to pat ourselves on the back. We are more than meeting our responsibility. “Now’s the time for us to step back and ask ourselves if we are accompanying that growth with improvements to our public services, cultural amenities and open spaces. And I would say the answer to that question is no.” Alan Justad, spokesman for the Department of Planning and Development that created the report, cautioned that the 2024 targets are minimum projections and should not be interpreted as prescribed limits on residential growth. He said the numbers are neither terribly alarming nor particularly surprising. “A target is a planning tool to help us decide how to invest to accommodate growth,” Justad said. “We expected high and low cycles during this 20 years. We’ve just been through a very high construction spike — very high. It’s quite possible that cycle is changing right now.” Between January 2005 and March 2008, Seattle experienced a net gain of more than 10,600 housing units, with an additional 13,000 or so in progress. That’s 50 percent of the city’s 2024 target of 47,000 additional units.

Among the city’s 38 urban villages (neighborhood centers targeted for high-density growth), Ballard wins the prize as being the farthest above its 20-year target. Since 2005, Ballard has added 287 units, with a whopping 1,452 more permitted, many almost ready for occupancy. Combined, that’s 174 percent of Ballard’s target of adding 1,000 housing units. “On some level, I’m surprised the numbers are that low,” said Catherine Weatbrook, who works on planning issues for the Ballard District Council, a neighborhood group. “I mean, all you have to do is just look around.” She said services to accommodate Ballard’s rapid growth are not keeping pace. For example, buses that service Ballard are standing-room-only during rush hour, sometimes so packed they don’t even stop to pick up waiting passengers. The demand for services is not going down and we don’t seem to have the structure in place to respond,” she said. “Growth is going to happen. We can plan for it — or we can have chaos.”

Jim Jacobson, Metro’s deputy general manager, said Metro constantly adjusts its service to meet demand, but that Ballard is only one of several rapidly growing areas wanting more buses. Metro is adding some service to Ballard this fall, he said, “but are we adding as much as people would like? Probably not,” he said.nTo contain suburban sprawl, the state’s Growth Management Act required counties to set growth targets. In King County, Seattle is responsible for absorbing a large percentage of that growth. As part of its planning process, the city apportioned its share among its urban villages.

The targets are to be revised in 2011.

Other parts of King County growing faster than anticipated include downtown Bellevue, downtown Renton, Covington and Maple Valley, while some areas of Southwest King County are behind targeted levels, said Paul Reitenbach, senior policy analyst for King County’s Department of Development and Environmental Services. “It’s not unusual to exceed targets where demand for housing really spikes,” he said. “To me, it’s a healthy thing. I’d rather be on the upper edge with far more growth than lagging behind, which is a sign of a struggling economy.”

In Seattle, Eastlake already is at 158 percent of its residential growth target, second only to Ballard. “While some Eastlake residents might mourn the change of their neighborhood, others appreciate the urban vitality they see growing up around them,” said Matthew Stubbs, president of the Eastlake Community Council. “I would not say there is a universal cry to halt development, but there are some common desires for our neighborhood that I hear repeatedly. “We want to ensure that our voices are heard in the development process. We want our infrastructure to keep pace with our growth. We need access to our neighborhood schools, reliable mass transportation, well-maintained open space and community gathering places. These needs become more critical as each new development opens its doors.” Other parts of town are falling shy of target, such as Rainier Beach, where only 41 additional housing units have been built or permitted since January 2005. That’s just 7 percent of its target of 600. One area where the city is promoting significant growth — Northgate — is at 30 percent of its target of 2,500 additional units. South Lake Union, which was targeted for the most growth at 8,000 new units, is at 19 percent. The residential-growth report was highlighted in a recent Seattle Displacement Coalition news release that calls for opposing Mayor Greg Nickels’ proposal to expand tax exemptions for developers. The coalition opposes development that jeopardizes low-income housing. “These numbers ought to dispel the myth that Seattle isn’t taking its fair share of responsibility for growth, which is something the mayor uses to justify upzones and other perks for developers and builders,” the coalition’s John Fox said. “This reinforces people’s suspicions that we’re accommodating special interests at City Hall.”

Nickels’ proposal would make the tax incentive available to developers who build housing geared toward people earning just shy of median income — such as rookie cops and firefighters, teachers and hospital workers. It would spread the program across the city, including to areas that have surpassed their 20-year growth targets, such as Ballard, Eastlake, parts of the Central Area, Greenlake and Lower Queen Anne. “Meeting the growth target doesn’t mean an area is at capacity,” said Alex Fryer, Nickels’ spokesman. “Ballard has more capacity. Growth is going to come there anyway. The mayor just wants to make sure that the new units are affordable for people like school teachers and firefighters.” But Licata said priorities should focus on providing services to areas that already have grown. “This is an example of some developers latching onto a public subsidy scheme without comparable public benefits,” he said. “Just stuffing more people into the city without making investments in infrastructure is irresponsible.”

If you’re thinking about locking rates on a mortgage refinance, then pay attention to the 30yr fixed mortgage rate this week and next week. It might drop all the way to 5.25%.

“The central bank, in an extraordinarily rare weekend move, took the bold action Sunday in an attempt to calm the markets. It also approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately.” -Seattle Times & Cnn.

NEW FHA LOAN LIMITS = HIGHER ALLOWABLE SALES PRICES!!

• Single Family/Condo max. Sales price $585,000 in Sea/Bell/Everett metro areas.
• Fourplex purchases allowed with FHA financing up $1.1m sales price.

FHA BENEFITS:

• Up to 6% Third party contributions allowed
• Non-Occupant Co-borrowers allowed
• All of down payment can be a gift or other approved source of funds
• Seller Funded down payment assistance (DPA) allowed
• Borrowers in Chapter 13 Bankruptcy allowed; 12 months satisfactory payment history & court approval required

FHA CHANGES:

• HUD uses the same appraisal form as Fannie Mae!!
• Upfront Mortgage Insurance required on condos.
• Admin & courier fees can now be paid by borrower

FHA TARGET AUDIENCE:

• Borrowers who want minimum cash investment in property
• Who have limited down payment funds of their own
• Who need a Non-Occupant Co-borrower to qualify
• Who have minimal or no traditional credit references

Homeowners shouldn’t dally if they want to sell their houses in spring, the peak season for real-estate transactions, real-estate agents say. “If they know they want to move by summer, now is not too early to bring somebody in,” said Barbara Nowak, an agent with Long & Foster in Burke, Va.

Now — not when the tulips are in bloom — is the time to start decluttering, cleaning, making repairs, getting paperwork together and interviewing real-estate agents. Homeowners with a lot of junk can take two to four weeks just to get through this step, Nowak said, meaning now is the time to get rid of any books, videos or toys you don’t use. “You can either donate them or put them away.” Many real-estate agents advise renting a storage space if need be. “You want to make it look sparse, but not empty,” said James Brumfield, a Long & Foster agent in Baltimore. “Boxes should be out of sight. Keep workstations or hobby areas such as sewing machines organized and neat.” When cleaning, pay close attention to the stairs, molding, windows and appliances. Replace any old or missing light bulbs. “We get into many homes and the light bulbs are burned out,” Nowak said. Catch up on all the little fixes and maintenance you’ve let slide. You need to have someone else over to look at the house, perhaps a home inspector, Brumfield said. “A second pair of eyes can see something you’ve been purposely overlooking for years.” Homeowners should spend 1 to 1.5 percent of the value of the house maintaining it each year, said Chris Kelly, an agent with Long & Foster in College Park, Md. Items that he said frequently need attention: the heating and air-conditioning system, the water heater and carpets. Painting can be done inside and out as long as it’s not raining or snowing, Kelly said. “And it’s easier to find contractors now, and at lower prices” than in the spring. Replacing light fixtures and faucets is another relatively inexpensive way to freshen up rooms, Nowak said. And don’t forget the outside, Brumfield said. “Everyone sees the inside of the house; nobody thinks to look at their roof.” Sellers should consider having the roof inspected and certified to reassure buyers that it is in good repair, he said. Homeowners also can research ways to improve the landscaping when things warm up. Mulch can spruce things up, but mainly you should keep the yard clean, agents said.

Sellers should start pulling paperwork together. If there are mortgages on the property, call the lender or lenders and ask for payoff figures, including any penalties for paying the loan off early. Kelly said sellers should list upgrades and repairs done in the past five years and gather any warranties for appliances and the roof. Having that information in hand speeds up the process. At some point, sellers must decide whether they want to bring in a professional agent. Give yourself time to interview at least three agents, Brumfield said. Kelly said two months is “barely enough time” for a busy family to get everything in order at a leisurely pace. Brumfield, however, said 30 days before the listing date is sufficient. “Two to three months is just a waste of time,” Brumfield said. “It won’t help the seller, and the agent won’t be too enthusiastic about doing it, either.”

Copyright © 2008 The Seattle Times Company

Write−offs are the government’s way of rewarding taxpayers when they’ve done something the government likes. And to judge by the write−offs, the government likes it when people borrow money to buy a house. There are write−offs aplenty, many of which people often forget.

Here are a few:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a “service fee” are not tax deductible. The question must be asked, “Does the fee apply to the use of money, or is it a service charge?” Discount points are paid to secure a lower interest rate. IRS Publication 936 lists a general rule that states, “You generally cannot deduct the full amount of points in the year paid. Because they are prepaid interest, you generally must deduct them over the life (term) of the mortgage.” However, there are conditions which, if met, make discount points tax
http://www.irs.gov/publications/p936/ar02.html#d0e942

Pre−payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately,
pre−payment penalties are tax deductible, which helps ease the pain.

Pro−rated real estate taxes:
Even if the seller sent the tax collector the check, chances are the buyer paid a pro−rated portion of the taxes for the year
at closing. Be sure they know to deduct their fair share.

Pro−rated mortgage interest:
Depending on when in the month the home sale closes, buyers pay either a hefty or a tiny amount of pro−rated mortgage
interest for that month. Big or small, they can write that off. The Final Closing/Settlement Statement will show just how
much they’re due.

This beautiful home is conveniently located just blocks from Alderwood Mall shopping and restaurants. It’s also on a quiet residential block with close access to I-5/I-405. Contemporary design features an open floor plan with vaulted ceilings and quality finishes. Enjoy a spacious kitchen with a large island, pantry, tile backsplash, and stainless steel appliances. Additional features are a gas fireplace in the living room, solid wood mill work, a large walk-in closet in the master bedroom, an attached two-car garage, and a private, low-maintenance backyard.

19311 24th Ave W Lynnwood, WA. 98036

Bedrooms: 5

Year Built: 2005

Heat Source: Forced Air

Sq. Footage: 1983 sq. ft.*

MLS# 28008904

*This information is provided as a courtesy only; buyer to verify all information.

Nestled in Seattle’s Rainier Valley, you’ll find a neighborhood that is more alive than ever. For food, fun, friends or family — the Columbia City neighborhood almost has it all. But Patti Scott already knew that. Traveling from “across the pond,” this ex-Bellevue resident said she drove to Columbia City, lured in by fresh produce and the promises of fine dining. Columbia City’s location, rich history, racial diversity and local flavor made it the 67-year-old’s destination of choice. “For nine years I’ve been coming over here for the Columbia City Farmers Market,” Scott said, “and it never occurred to me that I would move here.” But she did. It was over a conversation with Tutta Bella Neapolitan Pizzeria co-owner, Joe Fugere, that Scott laid out a plan to make the move. “About three years ago,” said Scott, “I was having a lunch at Tutta Bella, and I asked Joe the owner, ‘What are they doing with that lot up here,’ and he said ‘Oh, I don’t know, town houses or something.’ ” The very next day she was back at Tutta Bella with the builder, checkbook in hand. “I’m buying one,” she told him. She moved in 1-½ years ago and Scott has never looked back. “I just love it down here,” Scott said. “Everyone is just so outreaching and friendly, and it’s a huge perk to me that here they have the Columbia City Cinema, an Andrew Carnegie Library, a post office, an art gallery — all within three or four blocks.”

Thanks to the walkability of the revitalized Columbia City business district — a corridor of Rainier Avenue South that stretches between South Alaska and South Dawson streets — residents-turned-shoppers like Scott are adding lifeblood to the new stores, boutiques and restaurants that line the avenue. Longtime Columbia City resident Maggi Johnson is glad to see businesses stick around for a change. “Every year, a restaurant or two would open, and another one would have to close,” said Johnson, landscape architect and principal of Johnson+Southerland architect firm in “downtown” Columbia City. But Johnson knows it’s more than tasty food that has breathed life into the landmark district’s historic buildings. It was such community champions as Rob Mohn, Peter Lamb and the Southeast Effective Development (SEED) that salvaged many of the district’s turn-of-the-century structures. Revived from decades of decay and neglect, these celebrated buildings in Southeast Seattle now house neighborhood establishments including The Wellington, a soul food favorite; the Columbia City Gallery, an artist-run collective that represents more than 25 local artists; and the Rainier Valley Cultural Center, home to the Rainier Valley Youth Theater, the Brownbox Theatre and the Rainier Valley Historical Society.

“Because more people are on the streets, it’s more opportunities for businesses to survive,” said resident Joe Harrington who remembers how these businesses made Columbia City living complete. “For a while there, it was always, ‘When we finally get a dot-dot-dot,’ ” Harrington said. “People were always, ‘Boy, if we only had a decent breakfast restaurant,’ then Geraldine’s Counter moved in. And for a time it was, ‘If we only had a good Mexican restaurant,’ then El Sombrero moved in.” The avid Columbia City Bakery patron says that along with Roy’s BBQ, Sweet Pea’s children’s clothing store and the Sheen Salon, he and his family are at a loss for things they can’t do in Columbia City nowadays. Well, almost a loss. “Someday we’ll have a grocery store, then I will only drive to work,” he said. “I’ll have no reason to start the car.” Which might not be such a bad idea. As Columbia City’s popularity grows, so does demand for housing — and parking.

Of the nine Columbia City town homes recently for sale, the average price was $410,216, according to an analysis of Northwest Multiple Listing Service figures. Ripe with modest-sized, older Craftsman-style homes, 48 percent of homes sold in Columbia City since 2000 were built before 1930, according to The Talon Group escrow and title services. But for homebuyers who seek modern, big-city living spaces, there are at least three upcoming developments that may fit the bill. Harbor Properties has plans to erect the “largest development in Columbia City history,” said Ray Akers, a community activist who grew up in the neighborhood and also a Realtor with Gerrard, Beattie & Knapp, representing Harbor Properties. This development is planned for the current site of Saint-Gobain, a plastics manufacturer on South Hudson Street, and will include approximately 370 units of housing with ground-level retail. A 26-town house development is also in the works by New York-developer Galil, Akers said. Seattle’s PB Elemental Architecture will design these Built Green units, which will be two blocks west of the Columbia City business district. And though it’s years from fruition, last June, HAL Real Estate Investments of Seattle announced plans for a residential-over-retail development at the 1.7-acre Columbia City Plaza property on Rainier Avenue South.

Yes, a housing evolution is coming to Columbia City — with all the momentum of a speeding train. And come 2009, light-rail trains will be part of the Columbia City package. Under construction is Sound Transit’s Link light rail Columbia City Station being constructed near the new Rainier Vista development and three blocks west of Columbia City’s business district, on Martin Luther King Way South. The station will connect the neighborhood to a 20-mile system of commuter rail, stretching from the Seattle-Tacoma International Airport to downtown Seattle. While light rail may be the ticket for luring more growth, the people are the main draw, said Joanne Kelly, local business owner and coordinator of BeatWalk, the neighborhood music event supporting local businesses and performers which runs Friday evenings from May through September. “”I think that’s probably the unique thing about looking for a home here,” she said. “It’s not just about finding a great home or a great location. It’s about finding a great community.” Indeed it’s a community built on the backs of residents old and new, working together through 15-plus years of grassroots, resident-initiated revitalization. Columbia City’s modern-day pioneers shaped the community we see today; a vibrant, diverse, “funky,” risen-from-the-dead neighborhood that home seekers are adding to their must-see list, said Susi Burdick, a real-estate agent at Windermere Real Estate’s nearby Mount Baker office. Burdick also is a longtime resident and businesswoman in the area.

“Well it’s hot, hot, hot, I can say that,” Burdick said. “It seems like everyone wants to buy there now.”

Copyright © 2007 The Seattle Times Company

By Lisa Rivera

http://columbiacityseattle.com/index.html

Bill Dallas, Chairman of Dallas Capital, is an innovative thinker who’s been a leader in the mortgage industry for over 25 years. Bill has a well-earned reputation for developing creative products to expand home ownership opportunities. More importantly, Bill’s uncanny knack for foreseeing the future of the industry is astounding, and we are pleased to be able to share his amazing insights with you.

Interest Rates
Before we discuss 2008, let’s look at mortgage interest rates in 2007. Specifically, where we started, where we went, and where we are now.

As you can see, interest rates aren’t much different now than they were in January of this year. The average mortgage rates in this chart remain generally unchanged.

According to Bill Dallas, mortgage interest rates in 2008 will likely remain unchanged as well – or even drop a bit lower. Adjustable Rate Mortgages (ARMs) may see a little more volatility and could potentially be pushed down if the Fed is forced to lower short-term rates again in an effort to stimulate economic growth. One thing to remember, however, is that Fed rate changes do not necessarily equate to fixed-rate changes. This means that, even if the Federal Reserve does lower its interest rates in 2008 (as Dallas suggests in his video), don’t expect fixed-rate mortgages to fall as well. In fact, depending on the degree to which the Fed may be forced to act in 2008, current fixed-rates may be the lowest we’ll see for some time – especially after 30-year fixed rates dropped to a 2-year low in late November.

Bottom line: 2008 will offer low interest rates, plenty of inventory at a discount, tighter credit standards, and (while lower at first) more stabilized home prices. Buyers: this is an awesome market for long-term investments. Sellers: be realistic about prices and creative about marketing. Refinancers: find out where you stand in the next 30 days.

YOU Magazine

Here’s how to evaluate the likelihood that you’ll be able to get your home repaired at minimal cost, and your plan of action.

Check your warranty

Your builder or remodeler likely gave you what’s called an “express” warranty, which typically covers everything from cosmetic flaws to serious defects for a year (most common) to 10 years (pretty rare). If the warranty names the defect you’re complaining about, gather your documentation and ask your contractor to repair the damage at no additional charge. If your warranty has expired, you aren’t necessarily out of luck. Depending on the state you live in and the nature of the defect, your house may still be covered by a so-called implied warranty of habitability for another seven to 10 years. But it will be up to you to prove that the defects are so severe that they are a health or safety hazard.

Learn how to spot a real defect

Your next step is to figure out whether your problem is a bona fide defect under the terms of the warranty (or in the eyes of an arbitrator) or what home builders define as an acceptable imperfection. “There is no such thing as a perfect house,” says Mooney. “A lot of what people consider defects are really not defects.” According to the National Association of Home Builders’ performance guidelines, small cracks in the interior concrete slab are normal; only those exceeding 3/16 of an inch should be repaired. Hammer marks or nail pops visible within six feet are acceptable, but marks you can see farther away are not. You may not agree with these definitions, but it’s tough to fight them. (You can order a copy of the NAHB’s “Residential Construction Performance Guidelines” for $39.95 at BuilderBooks.com.)

Gather the evidence

Document problems with photos and detailed notes. Record everything from conversations with your builder or contractor to the exact time - and the weather conditions - on the day, say, your basement flooded. “Make the assumption that this will end up in a significant dispute,” says Mooney. To bolster your case, you may need to pay for expert advice. An independent inspector or structural engineer will charge about $250 to $500 to give your house a full examination, along with a detailed report of the problems at the heart of your dispute. After Ann and David Richardson’s contractor put a two-story addition on their Kansas City house last year, it failed city inspections twice. The couple then hired an engineer who found that, among other problems, inadequate roof support was putting pressure on the walls and forcing them to bow. “He said the walls were life-threateningly out of plumb,” says David. Faced with this assessment, the contractor agreed to do the repair (though he later declared bankruptcy before he finished).

Find greater strength in numbers

If your housing development was constructed by a single builder, see if your neighbors are having similar complaints. “You’ll often find that their houses are having the same problems as you,” says Nancy Seats, president of Homeowners Against Deficient Dwellings, a group that helps homeowners fight back against construction defects. After Pam and Jeff Cobbs noticed that the windows on their new home in Bend, Ore. leaked during rain storms, they teamed up with other neighbors who were having similar problems. As it turned out, the windows and siding on more than 20 houses on the block had been installed improperly, causing water damage and, in some cases, mold. Just a few months after the group complained, the builder sent in crews to remove all of the siding and trim, reinstall the windows, wrap the houses, put on brand new siding and repaint everything.

Know your state rules

If you aren’t bound by a binding-arbitration agreement and you think you might have a case for a lawsuit, be aware that in recent years, 30 states have adopted “notice and opportunity to repair” laws, which require homeowners to give builders a chance to assess and remedy the problem before they go to court. Typically, you have to submit a written complaint to the builder or contractor, who then has a certain amount of time to inspect the property and make repairs - usually up to 90 days. Unfortunately, these laws, designed to protect builders, says Janet Ahmad, president of Home Owners for Better Building, don’t obligate the builder to fix your problem (after an inspection, they may tell you that the fault is unrelated to their construction). But your builder may patch up your home to avoid a lawsuit. If not, you are probably free to sue. To find out about your local “fix it” laws, start by calling your state attorney general’s office.

If all else fails, get creative

When the first cracks began appearing in Susan Sabin’s home shortly after she moved in last June, she contacted Pulte Homes, which sent in engineers and contractors to repair minor problems. But Sabin still believes they’re ignoring major defects. “They keep fixing the symptoms,” she says. “I want them to fix the source of the problem.” So Sabin has strung up lemons and opened her house to anyone who wants to see the cracks. Soon after, her story made the local news. Pulte, which says the problems with the home are a result of soil expansion underneath, has so far not agreed to rebuild Sabin’s home from scratch. But it certainly is not ignoring her complaints. “Structurally her home is as sound as any other home we’ve built in the city,” says Todd Lipschutz, Pulte’s division president in Kansas City. “We will make the necessary repairs.”

Don’t build a lemon

Know your builder. Make sure your builder is licensed with your state, and see what complaints have been filed with the attorney general’s office. Get references, but remember that a builder isn’t likely to refer someone who has complained. A better bet: Ask people in the neighborhood what they think of their house and how the builder handled any problems.

Question whether the builder is in over his head. Many builders don’t have the equipment or the technical expertise to deal with very large projects. So if your home is the largest project the builder or contractor has ever done, proceed with caution. The same holds true if it’s the company’s first big housing development.

Have a lawyer read your contract. If it includes a binding-arbitration clause, you’ll waive your right to a trial. Ideally, you want to strike this section or at least ask to name what arbitration firm will be used, says Nancy Seats, president of Homeowners Against Deficient Dwellings. Check that the warranty spells out what problems are covered.

Be a regular at the job site. Show up frequently while your house is in the process of being built or remodeled and ask questions. For a big project, consider hiring an inspector or an engineer to look things over.

By Sarah Max, Money Magazine contributing writer

June 21 2007: 6:59 PM EDT

2nd half of your property taxes are due this Wed. Oct. 31. Make sure your mortgage (escrow account) paid the right amount and to the right account. They often make A LOT of mistakes.

In King County, call 206-296-3850. For an automated line, call 206-296-0923.

In Pierce County, call 253-798-6111. For an automated line, call 253-798-3333.

In Snohomish County, call 425-388-3366.

In Kitsap County, call 360-337-7135.

Prroperty-tax statements and information are available online.

King County Property Tax website