Pinellas Property Online

The American Recovery and Reinvestment Act’s $8,000 tax credit that was made available Jan. 1 is working to help drive sales in a market that is still suffering amid the recession. It has made first-time home buyers powerful consumers in a down housing market, experts say.

The National Association of Realtors estimates an additional 350,000 first-time home buyers will buy before the Dec. 1 deadline as a result of the tax credit, which does not have to be repaid.

In June, the U.S. Department of Housing and Urban Development altered the stimulus tax incentive so buyers using Federal Housing Authority-approved lenders could get an advance on the $8,000 credit to apply it to their down payments or closing costs.

“First-time home buyers have been pretty active this year,” said Walter Molony, spokesman for the National Association of Realtors. “Right after the tax credit was put into place in late February, we saw pretty significant increases in the range of 10 to 15 percent in terms of traffic, buyers looking and inquiries.”

According to the association, first-time buyers accounted for 51 percent of sales in February, 53 percent of sales in March and 40 percent of sales in April. The numbers faded from May-July, accounting for an average of 29 percent of sales during those months as the market saw more seasonal buyers, Molony said.

But traffic and sales are expected to pick up.

“We would expect that we’ll be seeing higher levels,” Molony said. “The fact is you have to make a decision pretty soon because the clock is ticking as it can take up to two months to close.”

Tracy and Jeff Lightburn are among those who decided to make their purchase in time to collect the tax credit.

“We knew we wanted to settle down in this area,” said Jeff Lightburn. “Once they said we’ll give you $8,000 for free we said ‘Hey, let’s go searching.’ ”

The couple closed on a home in River Sound on Aug. 5.

“The $8,000 helps in so many ways,” Jeff Lightburn said. “I can build my savings back up again. In this economy, it’s hard enough to save money anyway.”

“This program is extremely important for moving some of the property that has been sitting there,” said Sherry Bitner, a senior loan officer with Blue Skye Lending, based in Lakewood Ranch.

And, because rookie home buyers will be extremely sought after now until December, many in the real estate industry are ramping up efforts to compete for their sales.

Blue Skye Lending will be hosting a weekly first-time home buyers workshop from Tuesday until Oct. 31 to educate more on the tax credit.

“This is a perfect opportunity to help people step up to the plate,” Bitner said.

Taylor Morrison is promoting a home buyers assurance program that will allow buyers to recoup up to 10 percent of the home’s original purchase price if their home decreases in value in five years.

The home builder hopes the assurance program, coupled with the tax credit, will make a purchase that much more appealing to first-timers.

In Sarasota County, single-family home sales also have improved on a monthly basis this year. The county has seen five straight months of increases in single-family home sales since January. From January to June, sales increased from 250 to 449.

Connie Huston convinced her daughter to purchase a home in south Sarasota this year to take advantage of the tax credit.

“I think it’s incredible; that’s why I’ve been really encouraging my daughter to buy,” said Huston, whose daughter is expected to close on a $74,000 home in several weeks. “When else has the government offered you $8,000 that you don’t have to pay back?”

Karen Blondin, of Blondin Mortgage in Sarasota, said the tax credit is helping many buyers who without it might not be able to afford a home.

“That’s why they’re here, of course now they can afford a home,” Blondin said. “It will allow people who haven’t saved a down payment get into a home. It’s really helping the market.”

At Neal Communities, the Lakewood Ranch home builder’s newest development, River Sound, has sold 19 homes to first-time buyers out of the 60 it has sold since its grand opening in February.

“It certainly has helped our sales,” said Jonnie Dwyer, area sales manager for Neal Communities. “It’s almost coming to an end, so hopefully they’ll come up with something new for buyers.”

Congress has already been presented with a request to extend the tax credit through 2010.

House Bill 1993, the First-Time Home Buyer Credit Extension Act of 2009, was introduced in April. The bill has 22 sponsors but there is no time line set for a vote yet because the health reform bill has taken precedence on Capitol Hill.

“We think it would be a good idea,” Molony said of the National Association of Realtors’ support. “It’s been discussed over the past couple of months, but it’s really on the back burner with regards to health care.”

Using the sun’s energy to power our lives is really nothing new; it has been around since the 70s, right? Actually humans have been using solar power as long as we have been human. Using the sun to warm our homes, dry our clothes, heat water and even defeat foes are only a few ways humans have harnessed solar power throughout the centuries. Every hour, enough sunlight reaches the earth to meet the world’s energy needs for a year.

With almost too-late attention being paid to renewable energy sources, the sun is again front-and-center in Florida’s energy future.

We enjoy an average of 200 sunny days here in the Sunshine State. In addition, Florida has 85% of the maximum solar resource available in the US, only being outdone by the southwestern states.

Yet with all this free solar energy, we still depend on non-renewable resources that are not even produced in Florida. 37% of our energy comes from burning coal. Although coal is very abundant in the US, it still needs to be transported to Florida’s power plants. In 2008, the US IMPORTED 34,000 tons of coal from countries as far away as Australia, Indonesia and China.

Next on the list is petroleum. It is no surprise that we depend on foreign oil to power our lives. But did you realize the scale? In April 2009, the US imported 360 million barrels of oil. Just in April.

21% of our power plants are fueled with natural gas. Our very own Progress Energy just this year switched from its oil-fired units to a combined natural gas/steam turbine system. The pipeline that supplies our natural gas stretches from Mobile Bay in Alabama, across the Gulf of Mexico and into Manatee.

Florida has several nuclear power plants as well, and combined they provide 18% of our energy needs. This leaves us with 3%; the amount of renewable energy that is consumed in Florida. This is a combination of solar, wind and geothermal.

Solar energy comes in the form of light and heat. Energy produced from light is called photo-voltaic and the sun’s heat is referred to as solar thermal.

It is possible to take advantage of solar thermal power and depend less on your local service provider. 20% of your energy bill goes for the heating of water. A solar water heater can bring that percentage down to 0.

There are three basic types of solar water heaters available in Florida; the pumped, or direct circulation system, the integral collector storage (ICS) system and the thermo-siphon system.

All these systems involve some sort of solar heat collecting device usually placed on the roof. Within this structure (flat rectangular metal boxes) are pipes containing the potable water supply from the household.

A pumped, or direct circulation system, uses an electric pump to bring the water into the rooftop heating unit, and then, once heated, into a holding tank back on the ground. A controller regulates the movement of water through the system, using a series of thermostats and valves.

The integral collector storage (ICS) system uses the home’s water pressure to circulate water through the system. With this set-up the rooftop unit actually serves as a storage unit, not just a heating chamber. On demand, water is pulled from this rooftop tank into a small auxiliary tank.

The thermo-siphon system uses thermophysics (!) to work. Cool water is introduced into the collector on the roof, at the bottom of the collector. As the water is heated it expands and rises to the top of the chamber and out into a holding tank, also on the roof. Then, just as the ICS system, the home’s water pressure drives the system and brings heated water back down to ground level.

ICS and thermo-siphon systems do not require the electric pump or controller to keep things moving. Those two components may also be powered by sunlight as well, with the light being transformed directly into electricity, or by photo-voltaics. This fascinating and very modern technology will be our next Timely Topic.

Converting sunlight is to electricity is a fascinating and only slightly complex process.

Light from the sun is referred to as solar electromagnetic radiation. This radiation is made up of little bundles of energy called photons which can behave like waves (think: microwaves and radio waves) as well as behaving like an object with physical properties. The wave-like radiation is broken down into five categories based on the wavelengths; these include familiar UV radiation as well as visible light.

When the photons behave like objects they can produce electricity. When these “solar fastballs” strike certain atoms, they can knock them with such force as to disrupt the electrons associated with those atoms. This disruption causes a release of energy and makes the electrons “excited”. When these “excited” electrons move in a particular direction this is referred to as “current.” Sound familiar?

The current produced is Direct Current (DC), which needs to be converted to Alternating Current (AC) for practical use. In order to do this you need a photovoltaic (PV) device. PV converters have very few parts: a surface covered with a material made up of “excitable” electrons, a simple magnet to move those electrons in one direction, a converter that will change DC power to AC, and the most important part: the Sun.

Currently the most popular material used to provide electrons for knocking about is silicon. Now, silicon is a pretty abundant material, it is what sand is made of. But getting PURE silicon is a tricky and expensive procedure. This makes PV systems costly. Other concerns with silicon are the production process and environmental impacts. However compared to the environmental, social, and geo-political impacts of our dependence on oil as our primary energy source, and solar comes up looking pretty good! In addition, materials other than silicone are being researched, with some success.

Some think that the heat of the sun is somehow a factor in producing PV electricity. Interestingly, the system works a bit less efficiently in extremely high temperatures. Therefore, even though the desert southwest of the US may receive more hours of daylight than Florida, the heat there makes PV systems much more inefficient, therefore making Florida nearly perfect for efficient solar energy production.

There are incentives for including solar energy, both thermal and photo-voltaic into your energy system. Any solar energy system, including the more affordable water-heating systems, is not subject to sales tax. In addition, you can claim 30% of the total cost of the project (including installation) as an income tax write-off as long as the system is operational by December 31st 2010. There is currently a measure before the Florida lawmakers that would prevent the addition of solar technology from adding to a home’s value and driving up the taxable value of that home.

If you are interested in learning more about Solar Power in the Sunshine State, please join us on Saturday, August 22nd here at Pinellas County Extension for a solar energy workshop. Experts from Progress Energy and the Solar Source Institute will be giving lectures and answering questions from 9:30 – 12:00. In addition several local vendors of solar products and services will be displaying their good in a mini-trade show, all right in our main auditorium.

This class is $15 and registration is required by Thursday, August 20. We can not accept walk-ins on the day as space is limited. To register, visit pinellascountyextension.org and select the “Online Class Registration” button. Then look for the Sustainable Living tab. We hope to see you there!

Registering your child

New students in kindergarten, sixth or ninth grades will be assigned to their zoned school. All other new students will be assigned to their zoned schools on a space available basis. A zoned school is one that has been designated for each student based on factors such as proximity, program capacity and feeder patterns from one school level to another.

Step 1: Find your child's zoned school

Use the Zoned School Locator on the district Web site, www.pcsb.org or call your child's school or Student Assignment, (727) 588-6210.

Step 2: Reserve a seat

You will need a ParentCONNECTxp User ID and password. If you already have a User ID and password you can reserve a seat by following the instructions on the Student Reservation System located on the home page of the district Web site. If you do not have a User ID and password, you can go to any nearby school beginning Aug. 3, but call first to make sure staff has reported back to duty or call Student Assignment.

Step 3: Register

Visit the assigned school and deliver the following required documents:

Birth certificate or other proof of identity/age. Students must be 5 years old on or before Sept. 1 to attend kindergarten. Students must be 6 years old on or before Sept. 1 and have completed kindergarten to attend Grade 1. All new students must present proof of identity/age. For other items that may be accepted as legal evidence of birth, call your child's assigned school.

Proof of residency. Present one of the following: utility bill for power, water, cable, sewer or land-based telephone (not cellular); rental agreement or lease; closing document; Pinellas County tax statement with homestead exemption. The item must be recent and have the name of the parent/guardian and service address on it. If you do not have one of these items in the name of the parent or guardian, you must complete an Affidavit of Residency. This document is available at schools or the district Web site at www.pcsb.org. It must be completed, notarized on both sides and submitted with one of the items listed above in the name of the person with whom you reside and who is listed on the affidavit.

Child's Social Security number. School system personnel are required to ask for this, but the child is not required to have one.

Child's most recent report card. This is for students entering grades 1-12. The report card, if available, should include the school's address and phone number.

Florida Certificate of Immunization. All new students entering school in Florida for the first time must have a completed Florida Certificate of Immunization (DOH 680) appropriate for their grade level.

Physical examination certificate. All new students entering school in Florida for the first time must have a school health examination certificate signed by a licensed examiner (certificate must have been issued within 12 months prior to enrollment/registration).

Individual Education Plan (IEP). If the student participates in exceptional student education, he or she must have a recent IEP.

District highlights

Here are some Pinellas school district highlights for the 2009-2010 school year:

New schools

Clearwater Fundamental: A new middle school resulting from the merger of Coachman Fundamental and Kennedy Middle. The school will be on the old site of Kennedy Middle, 1660 Palmetto St., Clearwater.

Madeira Beach Fundamental: The district's first K-8 school created by the merger of Southside Fundamental Middle, Madeira Beach Middle and Madeira Beach Elementary. The new school will be on the old Madeira Beach Elementary and Middle school sites, 591 Tom Stuart Causeway, Madeira Beach.

Gifted middle schools

The Middle School Centers for Gifted Studies are available to incoming sixth-grade gifted students at Dunedin Highland, Morgan Fitzgerald in Largo and Thurgood Marshall Fundamental in St. Petersburg. This new program will provide a challenging and rigorous curriculum aligned with the National Association for Gifted Children curriculum standards and the Florida Frameworks for K-12 Gifted Learners. The program will expand to seventh and eighth grade over the next two years.

New magnet program

First Responders: National Guard Center for Emergency Management

This fall, Pinellas Park High School will launch a four-year program to prepare students for jobs as initial responders to emergency and disaster situations. First responders may plan for, assess, and/or manage natural disasters, terrorist acts, hazardous materials incidents, civil disturbances, air-land-sea rescues and other emergency situations. Among other things, instruction will focus on community planning, emergency preparedness and response, emergency health care, health safety and environmental issues, and concepts of command.

They’re lurking, holding bags of cash and eyeing distressed condo markets.

Big-time cash investors are snapping up South Florida condo units in bulk. There have been at least seven purchases of 10 or more condos this year, including four since June, according to county records. Investors are re-selling the units or renting them until the market recovers.

Last month, Tom D. Sullivan and Jorge Arevalo shelled out $14.6 million for 51 oceanfront, condo-hotel units in the One Bal Harbour complex from developer WCI Communities, which is reorganizing under bankruptcy protection.

“It didn’t take 10 years of research to see it was a pretty good deal,” said Sullivan, founder of Lumber Liquidators Inc.

That’s because existing condo prices in Miami have fallen by half since the peak in December 2006, and investors think they see the bottom. There’s also plenty of selection. Miami has a two-year supply of condos for sale, at the current demand, according to the local Realtors associations.

Since 2003, nearly 23,000 units have been built or are still under construction in greater downtown Miami, said Peter Zalewski, a principal with Condo Vultures Realty. In June, developers were still holding about 9,400 units, he said. Banks own about 5,000 local homes and condos.

Desperate to get them off their books, banks and developers are auctioning off Miami condos by the dozen. That’s where investor Ed Pascoe, an antiques dealer, snapped up 56 units for $4 million in a 135-unit building in February.

This month, he started offering the units for rent at $1,000 a month, or for sale from $99,000 to $299,000, according to his broker Brian Carter. Pascoe declined to comment.

By paying monthly fees on time, these new owners can be a financial relief for homeowners associations struggling to cover the costs of maintenance and insurance in a building dotted with empty units. While lenders and developers are obligated by law to keep up with association fees, it doesn’t always happen.

The cash for some of these deals is coming from groups of private investors. One multibillion-dollar firm, Contrarian Capital Management LLC in Greenwich, Conn., is looking closely at bulk purchases in Florida, according to Gil Tenzer, the firm’s real estate portfolio manager.

He’s not the only one.

“We’re getting much closer on several deals,” said Jay Massirman, managing partner of Rivergate Residential, a Miami-based real estate investment firm. Massirman said he has researched dozens of bulk purchases for investors.

Unlike the condo investors of the boom years, who borrowed recklessly with the intention on flipping the units within months, more investors today are using cash and thinking strategically.

“They have the money and the knowledge and wherewithal to hold them until the market turns around,” said Jennifer Drake, a real estate attorney with Becker & Poliakoff.

Talk of bulk condo purchases has reached San Diego, where “there’s some scurrying about in the local market on the part of investment groups who have explored the idea,” said Gary London, president of The London Group Realty Advisors.

And, if values stay depressed in troubled condo markets like Phoenix or Las Vegas, developers and banks could make bulk deals with cash investors at a discount to unload their unsold units. So, for now, Florida is the testing ground, and investors with deep pockets are watching.

Copyright © 2009 The Associated Press, Adrian Sainz, AP real estate writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.