State initiatives target safety, efficiency of Maine homes
Government affairs and communications director, Maine Association of Realtors
It is important to make the distinction between national and state issues regarding the changing real estate market.
Recently, National Association of Realtors President Vicki Cox Golder commented on the growing concerns around the moratorium on foreclosures instituted over the past few weeks by some national lenders. Banks say the moratorium is needed to review all of the foreclosures in their portfolios to make sure they’re in compliance with the law and that titles are clear. Some industry insiders worry that additional delays in an already complex foreclosure process will result in a stalled recovery. Golder was sure to emphasize that “after [the portfolios have been reviewed], the foreclosure process must resume quickly to return stability to families, the housing market and the economy.”
The national foreclosure moratorium announced by four national lenders certainly creates a palpable level of uncertainly at the state level here in Maine; however, the Maine Association of Realtors believes that the moratorium will have less of an impact in Maine than perhaps it will in other states. Linda Gifford, legal counsel for MAR and owner of Linda Gifford Law Office/ Central Maine Title Co., says, “I have personally seen three closings affected by the foreclosure moratorium by some banks, but they will close (eventually).” Some local bankers believe the moratorium may even be a short-term positive for sellers of non-distressed properties, as their homes will not be competing with foreclosed properties that may sell below market value.
The Maine Legislature has gone to great lengths to improve the foreclosure process in our state over the last two years. Working with interested parties and stakeholders, legislation was passed that improves the process by which foreclosure notices are sent to tenants and clarifies time frames for recording at the registries of deeds and with municipal tax assessors. In addition, the law provides access to credit counseling services and mediation and spells out specific requirements for foreclosure negotiations.
Issues with a potentially greater impact on the housing market this year in Maine include updated Federal Emergency Management Agency flood maps, Maine’s new Uniform Building and Energy Code and the affordability of clean energy for homeowners.
At the request of U.S. Sen. Susan Collins, FEMA officials, who have been working with municipal officials in York and Cumberland counties to update flood maps, announced a new initiative to improve the process after several cities and municipalities disputed the accuracy of FEMA mapping. The new process, called Risk Mapping, Assessment and Planning, builds on map modernization and strengthens local ability to make informed decisions about reducing risk. Satisfied that Maine communities have agreed in principle to transition to this new process, FEMA has agreed to withdraw proposed maps and terminate the appeals process, according to Collins’ press release.
The completion of the Maine Uniform Building and Energy Code this year will improve the quality and energy efficiency of homes here. We acknowledge that some building requirements have the potential to add costs to building a home, but hope the improved standards in the code ultimately enhance quality and safety.
To improve the energy efficiency of homes, the Legislature passed an Act to Increase the Affordability of Clean Energy for Homeowners. The act authorizes the Efficiency Maine Trust and municipalities to finance energy savings improvements on qualifying properties through a specific mortgage called a PACE mortgage. The mortgage is paid back in installments through the borrower’s property tax bill. This financial tool will provide homeowners with the resources to add solar panels, geothermal heat systems or Energy Star windows.
Maine’s real estate market continues to show some signs of stabilizing with the continued rise in monthly median home sale prices. Combined with the continuing record-low interest mortgage rates, it’s an optimal time to buy real estate in Maine.
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