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Albemarle County Budget – 2010 – Reductions all Around?

Jim — Mon, 01 Mar 2010 12:03:08 +0000

Read the Albemarle County Budget. If you’re pressed for time or attention span, start with the Budget Summary (pdf) – that’s where I found this unfortunate nugget:

Eliminates $190,000 for Homebuyers Down Payment Assistance Program. One-time funding for this program in FY 10/11 could be available and considered for reappropriation if this program does not meet its anticipated demand in FY 09/10

Find the fat, suggest changes (the first public hearing in 3 March at 6pm at the Lane Auditorium at the Albemarle County Office Building).

This is a hard year for localities’ budgets – Charlottesville, Fluvanna, Greene , statewide (and nationwide), and Albemarle County is no different.

- There is a great discussion at cvillenews, with Jeff Uphoff getting his math on in the comments.

- There’s a petition to “fully fund” Albemarle County Schools.

- The Daily Progress details the discussions on how to cut teachers.

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Albemarle County Budget – 2010 – Reductions all Around?

City Neighborhood Liaison – Needed?

Jim — Sun, 28 Feb 2010 14:15:23 +0000

The City of Charlottesville is contemplating adding a “neighborhood advocate” to liaise with City neighborhood associations. What about the neighborhoods without associations? Should there be a liaison for them as well?

I vote for her:

“It’s a bad use of city funds and there are too many other programs and efforts that I think the city should be involved in,” said Adena Imlay, president of the Meadowbrook Hills/Rugby Neighborhood Association. Imlay said creating another layer of bureaucracy in local government to work with neighborhoods is not the answer.

“It’s like a cancer. It just grows and grows and grows and grows,” she said.

I’m curious – why can’t people who want to be involved call the city and advocate for themselves?

This clip has one bad word, so beware. In this case, replace “customers” with “citizens” and “engineers” with either “staff” or “politicians”.

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City Neighborhood Liaison – Needed?

School Values and Housing Prices – Specifically in Albemarle County

Jim — Mon, 15 Feb 2010 05:23:50 +0000

Do better schools increase house prices? From my perspective as a Realtor in the Charlottesville area, the answer is yes. I have never had buyers tell me that they wanted to live in a bad school district; but virtually every single one – whether they have kids or not – wants to be in a good school district. Frankly, I don’t need metrics or analysis or data to support my conclusion; I know that people buying homes in Charlottesville and Albemarle want good schools.

All the data in the world isn’t going to change my opinion, either as a Realtor or as a parent, that good, quality schools matter – to our kids and to our housing values.

From The Impact of School Characteristics on House Prices: Chicago 1987-1991

For many people, an important consideration when buying a house is the quality of the local public schools. There is a general perception that, all else equal, houses in better school districts will cost more.
…

Our results indicate that individuals pay attention to both per-pupil expenditures and test scores when deciding where to locate. However, when purchasing a home, individuals do appear to consider the current test performance of students in the local school rather than the extent to which a community’s schools contribute to a cohort’s test performance.

So what? What happens to Albemarle County home values if:

1 – Albemarle County schools cannot trim the fat sufficiently and
2 – They have to make so many dramatic cuts?

This is an email sent by the Albemarle County Parents’ Council with five attachments that will help you get acclimated … before the public hearing tonight at 6:30.

And now the meat of the post – if I’m a homeowner in Albemarle County, what are you talking about? How much more would I pay in taxes?

Brian Wheeler has presented a post with hard numbers – numbers that put into context what an increase in property taxes would mean for you – something that has been mostly lacking from most discussions I have read.

The Albemarle County Public Schools budget is now facing catastrophic cuts if we do not find new sources of revenue. This is the result of the national economy, declining sales taxes, declining property values, a proposal to lower taxes collected in Albemarle, and significant state funding cuts for education.

… In an effort to get my head around the numbers, I have prepared the attached spreadsheet which evaluates (to the best of my ability with the data available), the impact of the different budget scenarios and what different property tax rate increases necessary to close the funding gap.

• http://www.wheeleronboard.com/docs/20100214-analysis-wheeler.pdf (Acrobat PDF); or

• http://www.wheeleronboard.com/docs/20100214-analysis-wheeler.xls (Excel spreadsheet)

If you download the Excel spreadsheet, you can even plug in your own home assessments from 2009 and 2010 to measure the personal impact of adjusting the tax rate. At this point in the process, I don’t like trying to address a budget challenge by manipulating the tax rate, but I think the public deserves some factual information about the different scenarios and how that might impact their personal pocketbooks. At this point, the burden has been put on local government and it has few revenue tools at its disposal. We all need to understand the cost-benefit of the status quo, the current tax rate, which in reality is a tax reduction.

…

In the analysis I have provided, here is the bottom line for the median household (2009 sales price) in Albemarle.

• With the worst case state funding scenario (new reductions of $9 million), a property tax rate of 86.5 cents would fund Dr. Moran’s budget with only Tier 1 cuts implemented. That rate would increase ANNUAL tax payments by $272.08 for the median priced home when compared to 2009.

• In the best case state funding scenario, a property tax rate of 81.9 cents would balance the budget and increase ANNUAL tax payments by $146.19 for the median priced home when compared to 2009.

This discussion at the Daily Progress was pretty informative.

* Thank you to Deedstreet for pointing me to the below-referenced study.

The quality of local public schools is widely believed to be a key determinant of housing prices.1 However, the strength of the consensus is puzzling, given the formidable empirical challenges facing any homeowner or empirical researcher seeking to answer the question carefully.2 First, good schools usually come bundled with other neighborhood qualities– such as proximity to employment, shopping and recreational conveniences and neighborhood peers. Because the homebuyers who enjoy (and can afford) such amenities tend to congregate together, it is difficult to isolate the effect of schools from the effect of these other traits that accompany good schools. Second, it is difficult to disentangle the valuation of the schools themselves (school facilities, curriculum, teachers and principals) from the valuation of the quality of peers available at the school. Common measures of school quality (such as test scores) typically reflect both the quality of the education being offered and the characteristics of the incoming students.3 It is unclear whether homebuyers are paying for quality schools or quality classmates
for their children.

Google Rocks.

Personally, I’d feel a lot better about all of this if I trusted the government. (I’m surprised you made it to the bottom of the post)

Cross-posted at RealCrozetVA.

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School Values and Housing Prices – Specifically in Albemarle County

Have you Read the Revenue Sharing Agreement?

Jim — Sun, 14 Feb 2010 13:54:02 +0000

I hadn’t. Huge thanks to Waldo for getting the Revenue Sharing Agreement. You can download it at Scribd.

The revenue sharing agreement between Albemarle and Charlottesville is a pointed point of consternation and disagreement and highlights the political (dysfunctional) relationship between the two Governments. This agreement and the relationship between the governments matter. To home buyers, sellers, residents (and Residents) – so many services are separate, but so many are and are perceived to be shared. Schools are clearly separate. (Albemarle – Charlottesville) Everything else is seemingly a matter of branding.

Tons of “ink” have been written recently about this agreement.*

Three of my favorite starting points are:

- Jennifer’s Revenue Sharing Agreement

- CVillePedia

- Revenue Sharing Agreement debated again

But have you actually read the agreement?

Inlookers, Charlottesville is surrounded by Albemarle, and to most people who don’t live in CharlAlbemarle, they are one and the same.

Charlottesville is an independent city in the Commonwealth of Virginia with a population of 40,745^[1]. It is home to the University of Virginia which provides another 9,000 part-time residents. Charlottesville is located on 10.4 square miles of land and is completely surrounded by Albemarle County. Charlottesville is also the County seat, though it is an independent city with a separate government.

The Bureau of Economic Analysis combines the two jurisdictions as one of 363 Metropolitan Statistical Areas (MSAs) in the nation. Its 2005 population of 188,016 ranked 212th in the nation^[2]. The MSA also includes Albemarle, Fluvanna, Greene and Nelson Counties.

* Google News Search by location is pretty nifty. Have a look at their sorta-accurate historical timeline of the revenue sharing agreement .

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Have you Read the Revenue Sharing Agreement?

Charlottesville and Albemarle Governments Clash. Again.

Jim — Sun, 07 Feb 2010 18:59:21 +0000

For anyone interested in a prime example of the City of Charlottesville’s and County of Albemarle’s occasionally dysfunctional relationship, Rachana Dixit and Brandon Shulleeta have great story in today’s Daily Progress.

When explaining the City/County relationship to relocating buyers, I often describe the governments as being akin to estranged husbands and wives who are sharing custody of the kids. Or as brothers and sisters who occasionally poke each other in the eye, just to see what will happen. I know these explanations trivialize the importance of the Charlottesville/Albemarle relationship and doesn’t give credit for the many places in which they do cooperate, but they are still applicable analogies.

The clash over money between Charlottesville and Albemarle County is turning into a political civil war, with warnings that each step from here will undermine collaborations that would cut expenses and instead possibly cost taxpayers big bucks down the road.
…
Historically, revenue-sharing payments have ballooned. The first payment was for $1.29 million, and in the current budget, Charlottesville received more than $18 million, bringing the total payment amount to $160.8 million since the agreement went into effect in 1982.

Many county officials say it’s unfair that a state formula that determines education funding for localities — based largely on localities’ wealth — fails to account for the revenue-sharing agreement. Bell’s amendment proposal would count the money Albemarle pays Charlottesville toward the city’s wealth instead of the county’s wealth — which would increase state education funding for Albemarle in fiscal 2012 by $2.6 million and decrease Charlottesville’s state education funding by that same amount.

…
Albemarle School Board member Brian Wheeler said he thinks it is unlikely Bell’s amendment will pass and that the legislation could instead increase bad blood between the two localities.

How does this affect buyers, sellers, homeowners, renters in the CharlAlbemarle area? Taxes and duplication of services = Money and inefficiencies. There are also cultural and political differences between the two localities that extend far beyond simple monetary conflicts.

For example:

In 2009, The City of Charlottesville voted 74% for Creigh Deeds and the County of Albemarle voted 49% for Mr. Deeds.
In 2008, The City of Charlottesville voted 78% for Barrack Obama and the County of Albemarle voted 58% for Mr. Obama.

If you’re interested in the annexation discussion, start at Charlottesville Tomorrow.

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Charlottesville and Albemarle Governments Clash. Again.

The Burden of Proof – Real Estate Assessment Appeals

Jim — Thu, 04 Feb 2010 12:59:04 +0000

HB570 is an outstanding bill in the Virginia General Assembly that takes on particular relevance in 2010, with property assessments likely being challenged by some in Charlottesville, Albemarle and surrounding Counties.

Why? It “Changes the burden of proof from the taxpayer to the assessor when a taxpayer appeals the assessment of real property to a board of equalization or to a circuit court.”

CB. The burden of proof shall be upon the assessor when a taxpayer ~~seeking~~ seeks relief ~~to show that~~ because the property in question is valued at more than its fair market value, ~~that~~ the assessment is not uniform in its application, or ~~that~~ the assessment is otherwise not equalized. In order to receive relief, the taxpayer must produce substantial evidence that the valuation determined by the assessor is erroneous and was not arrived at in accordance with generally accepted appraisal practice. Mistakes of fact, including computation, that affect the assessment shall be deemed not to be in accordance with generally accepted appraisal practice.

Read the entire bill at Richmond Sunlight.

Are you paying attention to the bills related to real estate in the Virginia General Assembly?

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The Burden of Proof – Real Estate Assessment Appeals

Albemarle County Assessment Figures Released

Jim — Thu, 28 Jan 2010 13:22:02 +0000

From a press release from the County this morning … much more to come later … bolding mine.

Albemarle County is sending reassessment notices to taxpayers this week reflecting changes in property values resulting from the County’s recently completed annual reassessment. The 2010 reassessments show changes in residential and commercial property values resulting from a continued weakening of the economy being experienced locally as well as nationwide. Overall assessed values, excluding new construction, declined 3.18%.

This figure compares to a decrease of 2.59% for the previous reassessment period. Residents should be aware that the 3.18% decrease is the average for all types of property, and that the results for different property types may vary significantly from that number.

The reassessment showed a slight decline in the value of commercial property, which showed an average decrease of .64%. The average decrease for all residential property types was 3.96%.

The reassessment figure reflects the values of existing properties and does not include the value of new construction. New construction is valued at $129,565,800 for the reassessment period.

Virginia, unlike some other states, by Statute requires localities to assess property at 100% of fair market value, based on an objective analysis of the property’s fair market value,

independent of any influence on the part of the County or the County Board of Supervisors. Albemarle County continues to consistently rank among the most accurate jurisdictions in statewide Assessment/Sales Ratio studies conducted by the Virginia Department of Taxation.

The average annual reassessment changes for the magisterial districts are as follows:

Rio -2.25%

Jack Jouett -4.30%

Rivanna -2.12%

Samuel Miller -3.65 %

Scottsville -4.13 %

White Hall -3.19 %

Town of Scottsville -1.89 %

The new assessments will be reflected in the real estate bills which will be mailed in late April, 2010. County officials recommend that anyone who would like more information or who wishes to appeal their assessment to contact the Office of the Assessor in the Finance Department at (434) 296-5856. A list of Frequently Asked Questions is being sent to all property owners and will be available on the County website at www.albemarle.org beginning Monday, February 2.

There is a process in place to appeal disputed reassessments. As a first step, taxpayers are encouraged to contact the appraiser responsible for the valuation to insure the correctness of County records and to receive an explanation of the basis upon which the valuation was made. The deadline for requesting a review with the Assessor’s Office is February 27, 2010, and the Assessor’s Office recommends that citizens make an appointment. If a property owner does not receive satisfaction with this step, further appeal may be directed to the Board of Equalization, which is comprised of Albemarle County citizens who have completed training by the Virginia Department of Taxation and who meet on a regular basis.

Lee Catlin

Community Relations Director

Albemarle County, Virginia

(434)296-5841, ext. 3425 (office)

(434)531-8092 (cell)

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Albemarle County Assessment Figures Released

Albemarle County’s School Budget Request

Jim Duncan — Sun, 24 Jan 2010 14:43:26 +0000

One of the reasons people choose to relocate to (and stay within) Albemarle County is that our school systems are generally regarded as being quite good. Now that the Albemarle County Schools’ Budget/Funding request has been released, we need to do our part and see how we may help.

From the Albemarle County Public School Parents Council site:

The Superintendent’s Funding Request calls for $5.3 million in reductions, including:

No salary increases of any kind for any employees; the projected 8 percent increase in health care costs and increased Virginia Retirement System expenses are covered by the request so employees will not receive a direct reduction in compensation for 2010-11;

Increases in class size by one student in grades 4 through 12, a net loss of ~17 full-time equivalent teaching positions, many of which will be absorbed by attrition;

Ten percent cuts in eligible operational budgets across the board for all schools and departments;

Places hold on technology replacement and improvements;

Reduces Learning Resources (textbooks, online resources, consumable materials) by $500,000;

Reduces the transportation department by nearly $400,000, as efficiencies in routing, compensation, and program delivery are implemented. There will be fewer bus routes, longer bus ride times, expanded walk zones, and fewer bus drivers.

Reduces professional development reimbursement funds by 50 percent.

Introduces for the first time a student activities fee for athletic programs and reduces the programs we offer:

A student activity fee of $75 per student, per sport, with a cap of $425 per family will be enacted.

Freshmen athletic teams at Monticello High and Western Albemarle High will be eliminated.

Junior Varsity coaching assistants will be eliminated at all high schools.

Cuts instructional support funds for intervention and enrichment, CATEC, elementary and middle school summer school;

Makes, for the third consecutive year, additional position cuts in at the central office, and in support services, including leadership reductions.

The Superintendent’s Funding Request is not balanced to current projected revenue. An additional $1 million in increased funds or further reductions must be made to meet current available revenue. The School Board will hold a series of budget work sessions in January, a Public Hearing on February 2, and another Telephone Town Hall on February 3 to hear feedback and concerns from the community. The Board may decide to revise the funding request before submitting it to the Albemarle County Board of Supervisors.

Please get involved.

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Albemarle County’s School Budget Request

Could Crozet Library Close?

Jim Duncan — Tue, 19 Jan 2010 22:02:07 +0000

This would be a devastating loss for both Crozet and Scottsville.

From The HooK:

Not only is Crozet not getting the mammoth new library it was expecting, a possible ten percent budget cut might mean closure of library it already enjoys, and Scottsville could lose its library with just a five percent cut. This is according to Anthony Townsend, president of the board of the Jefferson-Madison Regional Library.

And from NBC29:

With Albemarle County proposing budget cuts of 5 or 10 percent, the library’s board says it will not stand for it.”Such cuts would likely force the closure of Albemarle’s two smallest branch libraries in Scottsville and Crozet,” Townsend said.The library’s president says they will not have Albemarle dictate how its money is spent, especially when it comes to its hours of operation.

If you’re wondering whether Crozet needs a library, consider this story last month on RealCrozetVA:

I suspect no one has or will move to Crozet because of the library, but having a good library, as we do now, is a component of a community with a high quality of life. One that values knowledge, literature, community and the sharing of all three. Having a new, more adequately-sized library is a promise that the County of Albemarle made to its citizens and is a promise that they should keep.

The current Crozet Library is 1,728 square feet. That is smaller than most private homes in Albemarle County. For many years the minimum square footage standard for public libraries, set by the State Library Board of Virginia, has been 4,500 square feet. Last January, the State Library Board adopted a new standard of “.6 SF with .8 desired” for public libraries serving populations up to 25,000. Many years ago, the Albemarle County Board of Supervisors, through the CIP process, adopted .7 SF as Albemarle’s goal. Based on those standards, if Crozet’s service area population (that is, the population within 6 miles of the library) reaches 25,000, the public library should be in the square foot range of 15,000 SF – 20,000 SF.

A rule of thumb in public library development is that when a building’s circulation of library materials (checkouts) reaches 25 per square foot per year, the library should plan for expansion. Here’s how JMRL’s annual circulation per square footage compared as of July 2009: Central Library, 11; Gordon Avenue Library, 25; Scottsville Library, 17; Greene County Library, 13; Louisa County Library 7; Nelson County Library, 17. The two Albemarle libraries that have been discussed for possible expansion are as follows: Northside Library (Albemarle Square), 34; Crozet Library, 76.

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Could Crozet Library Close?

Albemarle’s Blogging Board of Supervisor Member

Jim Duncan — Thu, 14 Jan 2010 16:10:04 +0000

Everyone welcome Ann Mallek, Crozet’s representative on the Albemarle County Board of Supervisors, to the world of blogging!

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Albemarle’s Blogging Board of Supervisor Member

The Virginia General Assembly is Upon Us

Jim Duncan — Mon, 11 Jan 2010 06:43:11 +0000

And no one is safe. Session starts on the 13th of January.

Believe it or not, politics affect the Charlottesville regional real estate market. From the Dillon Rule to Transfer of Development Rights legislation, to whether people can use cell/smart phones while driving.

The General Assembly is nearly upon us – and this is my public service announcement to educate yourselves. While much of, if not most, negotiating seems to be done behind closed doors and in hallways, occasionally the citizens can impact legislation That’s where we/you come in.

We have access to a phenomenal resource for getting educated about the Virginia General Assembly session.

Here’s my process for getting educated and informed:

Look at the newest bills every day or three.
Search for topics that interest me (and tag them as I go – it’s helpful for everyone).
Stay focused on real estate and real estate related topics; there are so many pieces of legislation that it’s easy to get distracted.
Write about potentially impactful bills, contact legislators and get involved in whatever way I can.
Keep an eye on Charlottesville-Albemarle area legislators – David Toscano, Rob Bell, Steve Landes, Creigh Deeds, Emmet Hanger,

My recommendation is this – go to Richmond Sunlight, sign up for an account (it’s free) and start educating yourself. Then start expressing yourself using your knowledge and informed opinions.

“real estate“

“real property“

More at Fredericksburg’s Free Lance Star. via VHA.

A few bills of interest:

Fair Housing Law; removes exemption of private individuals who sell or rent by owner, etc. (HB103) – Apparently this exemption originated for those who were renting out basement apartments, etc.

These legislators really want to control whether we use our phones/communication devices while driving:

- Wireless telecommunications devices; prohibits talking on such device unless in hands-free mode. (SB10)
- Handheld personal communications device; prohibits use while operating motor vehicle, etc., penalty. (HB22)
- Wireless telecommunications devices; prohibits talking on such device unless in hands-free mode. (HB58)
- Use of handheld personal communications devices in motor vehicles; penalty. (HB212)

These are all the bills I’m tracking via Richmond Sunlight.

Let’s see if our legislators try to put forth dumba*s legislation this year, like they did last year – Real Estate Brokers Can stop Learning after 15 years. – The bill thankfully failed as it was left in committee.

I really would like to see a breakdown of how much “commendations” cost the taxpayer.

Is this really necessary? – HB124: Alcoholic beverages; penalty for possession of open container in a motor vehicle.
This seems like a good idea – Smoking in cars with minor present; civil penalty.

I’m curious – what are the dumbest bills you can find?

Here’s a tag cloud of the legislation introduced as of Saturday, 9 January:

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The Virginia General Assembly is Upon Us

TDRs get another look?

Jim Duncan — Tue, 05 Jan 2010 12:10:43 +0000

It seems the Virginia Association of Realtors and Virginia Association of Counties have been hard at work on Transfer of Development Rights … they’ve even developed a model ordinance (PDF).

What is a TDR? From The NAR’s Field Guide to Transfer of Development Rights (TDRs) (bolding mine)

The quest for controlled growth requires creative planning and foresight. Transfer of development rights (TDR) is just one tool used in the battle to contain sprawl . TDR is the exchange of zoning privileges from areas with low population needs, such as farmland, to areas of high population needs, such as downtown areas. These transfers allow for the preservation of open spaces and historic landmarks, while giving urban areas a chance to expand and experience continued growth. …. (K. Swanson, Information Specialist)

The TDR concept is far too complex to be encapsulated in one (or six) blog posts; it’s a tool that could affect growth management and grown in the Charlottesville and Albemarle region.

A much-too-simplistic definition of TDRs – selling development rights from rural areas into a “receiving area” which is ostensibly in the “growth area” and effectively downzoning and preserving rural areas.

The City of Charlottesville, County of Albemarle and various local special interest groups such as ASAP, PEC, and others have been working on and discussing TDRs for years.

From Charlottesville Tomorrow:

While the idea of TDR may be fairly new to the Charlottesville-Albemarle community, the concept has been in practice for about 40 years. The rate of success has varied widely between communities. Pruetz’s and Standridge’s evaluation of the factors that differentiate the successful programs from those that have not been able to meet their stated goals could help local leaders determine whether Charlottesville-Albemarle has the right conditions and aspirations for a successful TDR program.

…

Albemarle County Supervisor Dennis Rooker (Jack Jouett) has said that in his own research he was not able to find any well-functioning TDR program that did not also include a down-zoning.

The work group was fairly diverse – attorneys from all over.

We’ve discussed TDRs on RealCentalVA a few times over the years. The bill that enabled it passed in 2008. The above-referenced code of the Commonwealth of Virginia is here.

Learn more about TDRs at Charlottesville Tomorrow than you ever wanted to know .

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TDRs get another look?

Biscuit Run is Sold to State to Become State Park

Jim Duncan — Thu, 31 Dec 2009 01:19:16 +0000

Update 31 December 2009:
Charlottesville Tomorrow reports that the purchase price was $9.8 million dollars. If nothing else, this transaction proves that government does have the ability to move expediently and efficiently. Read the whole story.

In short,

Residents in neighborhoods that surround Biscuit Run are probably elated.

Biscuit Run was purchased for $46.2 million in 2005, and just sold for 78% less. I wonder how close that $9.8 million is to “fair market value.”

There will now be about 3,000 fewer homes in the Albemarle County pipeline.

The County of Albemarle just “lost” a lot of money in theoretical income in the form of proffers and tax assessments.

The park will still end up costing us – taxpayers – money.

The reporting on this story is a prime example of why we need a press that has the time and resources to track a story. Thanks, Daily Progress and Charlottesville Tomorrow.

There will be much more to come on this story in the coming days and weeks.

More at the Charlottesville Bubble Blog and cvillenews.

Asked about the financial impact on investors who paid a reported $46.2 million for the land in 2005, Payne said “the investors will not come out whole and no one is getting a windfall.”

According to the deed records, Craig intends to pursue Virginia Land Preservation Tax Credits and federal charitable deductions. The state credits are an incentive for property owners to permanently protect undeveloped land and are available for 40 percent of the appraised value of the property. The property is currently assessed by Albemarle County at almost $44 million.

‘Bargain sale’

“This is what is known legally as a ‘bargain sale,’ when there is a reduced cash payment and the seller applies for tax credits,” said Bryant in an interview. “We have determined that this project is eligible for land preservation tax credits. The seller will have to apply in the 2010 calendar year and it will be up to the state Department of Taxation to act on their application.”

The amount of those tax credits has not yet been determined, according to Bryant, and will be a matter for Craig to resolve with the department of taxation.

Since this story was first reported by The Daily Progress and Charlottesville Tomorrow earlier this month, Albemarle County officials have also expressed concerns about the loss of a quality neighborhood project and the loss of proffers that would help build community infrastructure.

The 800 developable acres, and 400 acres originally proposed for a county park, are between Route 20 and Old Lynchburg Road south of Charlottesville, in one of the county’s designated growth areas. Urban development is only permitted in about 5 percent of the county’s land.

“The county has not been involved in the recent Biscuit Run transaction and did not have any authority or ability to influence the decision one way or another,” said County Executive Robert W. Tucker Jr. “We will work cooperatively with state officials to create the most positive possible outcome for the community and to realize the maximum benefits of the park, which include protected land for our residents and a boost to our tourism industry.”

~~With no mention of the purchase price …~~

From Governor Kaine’s office:

RICHMOND – Governor Timothy M. Kaine today announced the purchase of approximately 1,200 acres in Albemarle County known as “Biscuit Run” to be held by the state as a site for a future state park.

“When developed as a state park, this extraordinary piece of land will benefit the citizens of Albemarle, Charlottesville and the Commonwealth for recreation, natural resource protection and the preservation of open space in a fast growing area,” Governor Kaine said. “This property is a real jewel and I am very pleased to add it to the long list of properties preserved during my Administration.”

This purchase will add to the goal of 400,000 acres of open space preserved during Governor Kaine’s Administration.

“This is a once-in-a-lifetime opportunity for the state to acquire such a valuable property which offers spectacular mountain views, abundant flora and fauna and is in the viewshed of Mr. Jefferson’s Monticello estate and farms,” said Secretary of Natural Resources L. Preston Bryant, Jr.

“The need for a state park in this region has been identified for more than 20 years in Virginia’s official Outdoors Plan,” said Joseph H. Maroon, director of the Department of Conservation and Recreation, which operates 35 Virginia State Parks, none in the immediate Charlottesville area. “This purchase brings us closer to meeting the recreation and conservation needs of the region and the Commonwealth and will bring additional tourism and outdoor recreation dollars to the area.”

Funding for the purchase was provided by a combination of federal grants and existing state bond funds available through the Virginia Public Building Authority and the State Parks and Natural Areas bond, voted on by the public in 2002. The ability to apply for state land preservation tax credits allowed the sellers to offer the property to the state at a greatly reduced price.

The Daily Progress and Charlottesville Tomorrow have been carrying the freight on this story of late.

9 December – Biscuit Run may become a state park – Charlottesville Tomorrow

28 December – Windfall for Biscuit Run developer? Tax credits could become cash – Daily Progress

30 December – Biscuit Run is Almost a State Park – Daily Progress

The Charlottesville Bubble Blog perhaps said it best:

The Breeden Family made $46.2 Million selling the parcel in 2005 to Hunter Craig. This was at the peak of the bubble–the smartest real estate transaction ever completed in this area, and one which allowed other land and home sellers to maintain champagne dreams for years.

Let’s see … they sold it for $46.2 million and it’s not going to be developed? Well played.

Update 31 December: Neil Williamson with the Free Enterprise Forum raises some important and valid points. We may be setting ourselves up for future failure by further restricting the growth areas in Albemarle County.

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Biscuit Run is Sold to State to Become State Park

The Government Has Unlimited Funds

Jim Duncan — Mon, 28 Dec 2009 18:36:39 +0000

Or so it would seem. From the Wall Street Journal:

The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.

The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.

Unlimited access to bailout funds through 2012 was “necessary for preserving the continued strength and stability of the mortgage market,” the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.

“The timing of this executive order giving Fannie and Freddie a blank check is no coincidence,” said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed “to prevent the general public from taking note.”

Is no one paying attention to the government’s spending our money? Is it really “our” government, or is it now fully “theirs”?

More at naked capitalism:

The timing of the announcement (Christmas Eve) was designed for it to receive as little notice as possible, already a bad sign. Skeptical observers focused on two possible explanations: first, that losses at the GSEs will be high, troubling investors, and the offer of unlimited support will calm them. Freddie and Fannie debt is now de facto a full faith and credit obligation of Uncle Sam, as if there was any doubt of that once the conservatorship was announced. But the idea that nearly $300 billion of firepower (the agencies had used roughly $110 billion of an authorization of $400 billion) is troubling.

And at UrbanDigs:

By the way, did you notice the quiet move the US Treasury made to prop up the GSEs a few days ago – in essence, “removing the caps that limited the amount of available capital to the companies to $200 billion each“. Holy moly folks! When will it end? Unlimited access to bailout funds through 2012 was “necessary for preserving the continued strength and stability of the mortgage market,” the Treasury said. While people spent their holidays with their family, this headline likely will go mostly unnoticed – strategic timing or something else?

And the Real Estate Bloggers:

For those caught in the Home Affordable Modification Program, you have my prayers. For the most part the government has let you down. But that same government sure moves quickly to cover their own behinds.

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The Government Has Unlimited Funds

Amtrak Line More Trafficked than Expected

Jim Duncan — Thu, 17 Dec 2009 11:38:13 +0000

The new Amtrak train between Lynchburg and Washington had twice as many passengers as expected during its first month of operation in October …

Charlottesville also had a strong increase in ridership. More than 8,500 people got on or off the two trains in Charlottesville during October. That was about 2,300 more riders than the city had in the same month of 2008.

Is anyone using this line to commute from Charlottesville to DC?

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Amtrak Line More Trafficked than Expected

Changes coming to FHA loans

Jim Duncan — Mon, 14 Dec 2009 12:42:33 +0000

Ah, Uncertainty. Perhaps the government’s forté, always in close competition with pandering and self-preservation. What will the impact be on homebuyers and sellers in the Charlottesville area real estate market? The answer is uncertain, and likely won’t be known until we are able to look back at 2010 from 2015.

FHA Buyers may have to come up with more money for a downpayment. And this may not be an altogether bad thing. People need to have “skin in the game.” What we need is clarity and certainty, neither of which are strengths of the government.

All told, the possible changes make sense.

Charlottesville sellers may find themselves with an even smaller pool of buyers to which they will be able to market.

Increased supply + reduced demand may equal more temperate housing prices in the Charlottesville region.

FHA Loan limits for Charlottesville MSA were last increased in November 2008.

Currently, the FHA limits remain the same – $437,000 for a single family property, $559,450 for s two-family property …

What are others saying?

Rightly or wrongly, FHA loans have been among the most frequently-used loans in this new real estate and finance world. (bolding mine)

With so many borrowers unable to meet today’s stricter lending requirements, FHA-backed loans have become increasingly popular. Today, the FHA guarantees nearly 3 of every 10 new home mortgages. That’s a stunning increase from 2006, when the agency backed roughly 3 percent of new home loans. Meanwhile, the agency’s finances have deteriorated considerably. The seasonally adjusted delinquency rate for FHA loans increased from about 13 percent in the third quarter of last year to 14.36 percent in this year’s third quarter. At the same time, the agency’s capital reserve ratio dipped below the level that Congress mandates. In the face of mounting political pressure, the Obama administration has announced new steps that may make it more difficult for some borrowers to obtain mortgages backed by the agency. The steps include raising the minimum FICO score, increasing up-front cash requirements, and possibly charging higher insurance premiums. “We want to ensure that we are able to continue to support the housing market in the short term and provide access to homeownership over the long-term, while minimizing the risk to the American taxpayer,” Housing and Urban Development Secretary Shaun Donovan told a congressional committee in written testimony.

Google Trends search for “FHA” in Virginia

From the Wall Street Journal:

Among the changes under consideration:

• Raising the annual insurance premiums that borrowers must pay. This is the easiest place to start, but it would raise borrowing costs for home buyers. The FHA charges an upfront insurance premium of 1.75% of the total cost of the mortgage which most borrowers can roll into their loan, and then they pay additional annual premiums of either 0.5% or 0.55%, depending on their down payment.

• Setting a credit score floor for borrowers. The agency hasn’t decided what that minimum might be, but it says it is looking at requiring borrowers with minimum down payments to have higher credit scores. While the FHA doesn’t currently have a cutoff, most of the nation’s top lenders have instituted a minimum 620 credit score for FHA borrowers.

• Requiring buyers to bring more money to the closing table. The FHA says that it will limit the amount of money that sellers can provide for closing costs on home sales to 3% of the home price, from the current level of 6%. Agency officials say they are also considering potential increases in down payments, but such a move could face heavy opposition from the real-estate industry. The head of the National Association of Realtors says such an effort as would “disenfranchise” FHA borrowers.

• Making FHA-approved lenders more accountable for loans that they submit to the agency. The FHA doesn’t make loans, but it instead insures lenders against losses on loans that conform to its standards. In recent months, the agency has moved more swiftly to expel lenders that it says are putting the agency at risk. For example, on Monday, the agency terminated its approval for Ideal Mortgage Bankers, Ltd. and affiliate Lend America to make FHA-backed loans. Lend America on Tuesday said it would cease operations but that it plans to appeal that decision.

Jay, the Phoenix Real Estate Guy has more.

The highlights of the FHA policy proposal:

Reducing the maximum allowable seller concessions from it’s current 6% of sales price to 3%.

Raising the minimum FICO score (“credit score”) required to qualify for an FHA loan.

Increasing the up-front cash that a borrower has to bring to the table in an FHA backed loan.

Investigating an increase in the up-front mortgage insurance premium a buyer is required to pay.

Asking Congress to raise the annual mortgage premium a FHA buyer has to pay.

More at Calculated Risk.

Even more at the Big Picture.One close observer of the mortgage channel, who we hope to interview soon in The IRA, says that given the recent deterioration of mortgage credit, it is impossible that BAC has not gotten its pari passu portion of the losses which are hitting the FHA. The same source says that using conservative math, FHA has another $75 billion in losses to take, with zero left in the FHA insurance fund. Worst case for FHA is double that number, we’re told. How could the Fed believe that BAC, which is the biggest owner of mortgages and HELOCs, is immune from this approaching storm? Because the Fed is cooking the books of the largest banks.

But don’t take anyone else’s word for it – educate yourself at one of my two favorite sites:

OpenCongress – H.R.3706 – FHA Taxpayer Protection Act of 2009

GovTrack – H.R. 3706: FHA Taxpayer Protection Act of 2009

I wish government would start protecting taxpayers’ money by not taking as much and wasting as much in the first place.

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Changes coming to FHA loans

Please Buy my Client’s Car – They Don’t Need it Anymore

Jim Duncan — Fri, 11 Dec 2009 17:12:25 +0000

I sold a house in the City of Charlottesville to some great clients last year. Now he’s selling his car. Which is awesome, and very green.

is living and working downtown, so no need for a second car – someone buy it! http://bit.ly/8DhpH6

That they’re living in the City and are able (and willing – that’s part of it, too!) to sell their car.

Incidentally, the current issue of National Association of Realtors’ On Common Ground (not yet online) is all about walkability, transit, smart (read: intelligent, not the bastardized/politicized “smart”) growth featuring Walkscore and a few quotes from yours truly.

Search for homes in Charlottesville with high Walkscores.

Search for homes in Crozet with high Walkscores. (coincidentally, I house I’m marketing comes up first … and the Walkscore is in reality much higher due to some missing restaurants and coffee shops in Crozet)

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Please Buy my Client’s Car – They Don’t Need it Anymore

Biscuit Run Development in CharlAlbemarle – DOA?

Jim Duncan — Wed, 09 Dec 2009 12:15:19 +0000

Today’s news really shouldn’t come as a surprise to anyone paying attention to the Charlottesville-Albemarle real estate market. The news affects everyone in this area – politicians counting on that revenue, homeowners in nearby Mill Creek, Lake Reynovia, Foxcroft, Redfields, Mosby Mountain, Sherwood Manor and other developments as well as any property owner who lived in or visited that part of Charlottesville, transportation plans,

One question – how will the Fifth Street/Avon Street development be impacted?

The stories today will certainly be augmented by the HooK and C-Ville in the coming days:

Huge planned Biscuit Run development in danger – Daily Progress

Biscuit Run – an expensive state park - Charlottesville Tomorrow

Biscuit Run, the largest development ever approved in Albemarle County, may instead become a state park. Forest Lodge LLC, fronted by local developer, builder and banker Hunter E. Craig, is in discussions with the state to donate the 1,200 acres it owns between Route 20 and Old Lynchburg Road. …

“The business climate is such that it’s not in the investors’ best interest to proceed with development at this stage,” attorney Steve Blaine said at the time.

Charlottesville Bubble Blog:

The Breeden Family made $46.2 Million selling the parcel in 2005 to Hunter Craig. This was at the peak of the bubble–the smartest real estate transaction ever completed in this area, and one which allowed other land and home sellers to maintain champagne dreams for years.

Also at risk for never being completed, however, is the Southwood Development, 350 homesites for Habitat for Humanity, which relied upon Biscuit Run’s infrastructure improvements and funding.

The good news:

This news removes uncertainty from the Charlottesville-Albemarle real estate market. With the Biscuit Run development included, Charlottesville-Albemarle had about fifteen to sixteen thousand residential units approved for development. Having a few thousand less is a good thing.

Update 10 December 2009:

The HooK’s story prompted an excellent discussion. As did cvillenews.

Update 11 December 2009:

The Free Enterprise Forum raises some interesting points.

A brief Biscuit Run history:

6,000 More homes? March 2006

Biscuit Run Price Tag: $222 Million – cvillenews – March 2007

Hollymead, Biscuit Run Approved – cvillenews- September 2007

Biscuit Run is on hold – January 2009

One of my favorite posts – Struggles with Growth in Charlottesville/Albemarle and Beyond – April 2007

If you really want to educate yourself about Biscuit Run, spend a few hours (or days) in Charlottesville Tomorrow’s archives – podcasts and stories.

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Biscuit Run Development in CharlAlbemarle – DOA?

Money in Charlottesville and Albemarle Elections

Jim Duncan — Tue, 08 Dec 2009 17:35:55 +0000

Thanks to VPAP, we know that the Rio District race in which David Slutzky lost to Rodney Thomas cost $150k, the Samuel Miller District race cost nearly $100k, and in the City of Charlottesville with its traditionally non-competive elections cost a mere $20k.

It’s a damn shame that local elections cost a quarter of a million dollars.

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Money in Charlottesville and Albemarle Elections

Thoughts on Crozet Library’s Further Delay

Jim Duncan — Mon, 07 Dec 2009 02:15:48 +0000

The Crozet Library has been delayed. Again.

This comment on cvillenews last week spurred me to ask a question about the Crozet Library’s traffic and circulation numbers. I remembered some data about circulation being high in Crozet, but could not remember (nor find) the exact numbers … I have bolded what I was looking for … John Halliday was kind enough to respond in detail.

That’s all we need is a new library in crozet. Can you imagine what a new library will do to the population of crozet. Lets move to crozet, they just got a new library. Population explosion in crozet all over again. BOS are finally getting it right, at least on this one.

Tim Tolson asked me to respond to your questions about the need for additional space at Crozet Library. Here (below) is some information you may find helpful. If you need any more information, please do not hesitate to contact me.

The current Crozet Library is 1,728 square feet. That is smaller than most private homes in Albemarle County. For many years the minimum square footage standard for public libraries, set by the State Library Board of Virginia, has been 4,500 square feet. Last January, the State Library Board adopted a new standard of “.6 SF with .8 desired” for public libraries serving populations up to 25,000. Many years ago, the Albemarle County Board of Supervisors, through the CIP process, adopted .7 SF as Albemarle’s goal. Based on those standards, if Crozet’s service area population (that is, the population within 6 miles of the library) reaches 25,000, the public library should be in the square foot range of 15,000 SF – 20,000 SF.

A rule of thumb in public library development is that when a building’s circulation of library materials (checkouts) reaches 25 per square foot per year, the library should plan for expansion. Here’s how JMRL’s annual circulation per square footage compared as of July 2009: Central Library, 11; Gordon Avenue Library, 25; Scottsville Library, 17; Greene County Library, 13; Louisa County Library 7; Nelson County Library, 17. The two Albemarle libraries that have been discussed for possible expansion are as follows: Northside Library (Albemarle Square), 34; Crozet Library, 76.

Crozet Library makes very efficient use of its limited space, but it is clearly overcrowded compared to other JMRL libraries and it is, in fact, substandard based on Virginia’s state standards. By the way, the SF standard in many other states is 1.0 SF per capita. So, Virginia’s standards are modest.

Crozet Library is the 4th most heavily used library in JMRL’s 8-library system. It is less than half the size of our 8th busiest branch. To give you an idea of how busy the library is, in the past year an average of over 5,500 residents visited the library each month. About 500 people each month visit Crozet Library to use its Internet computers. During a typical summer month over 1,000 children attend library programs.

Hopefully, that gives you a snapshot of Crozet Library’s current situation. Again, please let me know if you need more information.

John Halliday, Library Director
Jefferson-Madison Regional Library
201 East Market Street, Charlottesville Virginia 22902

Mike Marshall at the Crozet Gazette noted last month:

County leaders have notified the Crozet Library Steering Committee that they will recommend to supervisors that the project be pushed back yet again (it was originally slated to open in 2011) and not be considered for funding before 2015. This is ridiculous. Anyone who has been into Crozet Library, especially for one of their popular events, knows the old depot building cannot serve western Albemarle’s burgeoning population for another five or more years. The County should take advantage of currently depressed construction costs by either borrowing money, getting a slice of the $787 billion the federals are looking to spend on “shovel ready” projects, or by suspending the County’s annual tribute payment to Charlottesville—the so-called “revenue sharing agreement” in which only the County does the sharing—a sum which next year will run about $18 million. The library’s architects say that if the project is put out to bid by the end of this year it will cost about $6.37 million. If it goes to bid in the spring of 2010 they predict the cost will be at least $7.19 million. If it goes to bid in 2015, who can imagine. It will never be cheaper than now.

Cross-posted at RealCrozetVA.

Read about the Crozet Library’s Future and Vision.

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Thoughts on Crozet Library’s Further Delay