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November 9, 2018December 13, 2022

Municipal infraction and your home

A common home buyer preference is to buy a home that is not within the confines of a HOA or condo association. Maybe the home buyer’s impression is that HOAs and condo associations bully home owners. But the truth is that HOA and condo association rules are created for a number of reasons, which include health and safety. If you don’t comply with the community rules, they can compel you do so. But even if you don’t live in an association managed community, it’s your civic duty to comply with county and/or municipal ordinances to maintain your home. Disregard for civic responsibility may result in a municipal infraction.

Believe it or not, regardless of where your home is located, your home has to satisfy health and safety standards that are enforced by your municipality (e.g., Montgomery County, City of Rockville, City of Gaithersburg, etc.). Deferred home maintenance can surely affect the value of your home. However, if it is found that your home doesn’t meet code standards, you can receive a notice of a municipal infractions.

Municipal infractions are also another name for code enforcement. In his manual Municipal Infractions and Code Enforcement, Practice and Procedure for Municipalities in the State of Maryland, Frank M. Johnson stated the need for having such procedures by saying:

“Most persons will follow the law voluntarily, but the reality is that when a law isn’t enforced, it becomes less effective for everyone. Even those who voluntarily comply are less likely to take a law seriously when it’s known the law won’t be enforced. In addition, steps to enforce the law often involve the most serious violations which, if not corrected, can lead to results which have a significant community and neighborhood impact.”

Mr. Johnson’s manual was originally written for the City of Gaithersburg, but was also adopted by the Maryland Municipal League (mdmunicipal.org), which is a statewide non-profit association that promotes municipal administration. What started as a local handbook describing the entire process of municipal infractions (from complaint to enforcement), became a statewide template in code enforcement.

Municipal infraction and your home

If you ever received a notice of municipal infraction, or just wondered how the process works, check put the manual. The manual describes why you’re receiving the citation, and how it can be enforced. It also describes the appeal process, as well as what can happen if you don’t comply.

Typically, the municipal infraction process begins by a complaint that triggers an investigation. The investigator will inspect and witness any code violations. If there are violations, the investigator will notify you and attempt to resolve the issue(s). Most home owners resolve the issue(s) with the first notice. However, if you don’t comply (or attempt to comply) with the first notice, you will likely be fined. The court can also order you to correct the issue(s), which is called an “abatement order.” If you don’t comply with the abatement order, your municipality can go on your property (and inside the home if necessary) to fix the issue(s) and send you the bill! If you don’t pay, a lien will be placed against your home, while collection actions are implemented.

What Caused You to Get Cited For a Municipal Infraction?

Montgomery County’s Department of Housing and Community Affairs (montgomerycountymd.gov/DHCA) also publishes valuable information about the process. The Housing Code Enforcement Handbook, is written for the public to understand housing code enforcement in the county. The DHCA states that seasonal issues are the most common code violations reported, such as overgrown grass and weeds, dead trees and snow-covered walkways.

Original published at https://dankrell.com/blog/2018/11/09/municipal-infraction-home

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

September 12, 2018January 28, 2020

Flood insurance checkup

Hurricane Florence is not your average storm. As it will undoubtedly devastate the area where it makes landfall, it will also wreak havoc along the east coast. Some are already calling it a historic storm. Flooding is expected not just along the coast, but also well into the mainland due to heavy rains. Even my local county (Montgomery County) is bracing for persistent heavy rain even though we are in central MD. In its aftermath, hurricane Florence will be another reminder for Congress to act on a long-term reform of the National Flood Insurance Program.

The National Flood Insurance Program was created 1968 as a result of the aftermath of hurricane Betsy. After the 1965 hurricane ravaged the gulf coast, Congress realized that flood insurance should be affordable and widely available to home owners, tenants, and businesses. The National Flood Insurance Program provides coverage associated with hurricanes, tropical storms, and heavy rains. Like other Federal programs, Congress funds the program. However, in recent years, Congress has appropriated short term extensions for the program. The current extension provides funding through November.

National Association of Realtors President Elizabeth Mendenhall, issued a statement regarding the impending storm and a plea to Congress to act on reforming the National Flood Insurance Plan. Mendenhall stated in the September 11^th press release that there are an estimated 750,000 homes at risk from a coastal storm surge. Furthermore, there is the potential of an estimated $170 billion of property damage just in the Carolinas and Virginia (nar.realtor).

Representing the National Association of Realtors, Mendenhall urges Congress to pass a long-term National Flood Insurance Plan by pointing out that “Flooding is the most common disaster in the United States, one that affects Americans in communities both coastal and inland every year.” She is correct to say, “In these times, we are reminded of the importance of peace of mind for property owners with access to quality and affordable flood insurance.”

FEMA’s Flood Smart (floodsmart.gov) portal is where you can find more information about flood insurance and protecting your home before and after a flood. Before a storm like Florence, you can reduce your risk by preparing. FEMA offers suggestions for flood prepping, which includes (but not limited to): elevating critical utilities; ensuring your sump pump is working and has a battery back-up; install a water alarm in your basement; clear debris from gutters and down spouts; store irreplaceable documents (such as birth certificates, passports, etc.) in a safe, dry place; and of course, build an emergency supply kit that is ready to go when you are. Your emergency kit should minimally include non-perishable food, bottled water, first aid, medicines and a battery-operated radio. Ready.gov has checklists and additional preparedness information, including building your emergency supply kit.

It’s also recommended to make an inventory of your valuables so as to make filing insurance claims easier. Additionally, know your flood risk level by checking FEMA’s interactive flood map (msc.fema.gov/portal/search).

FEMA warns home owners that regardless of your risk zone, flood insurance may be a necessary add-on to your homeowners’ insurance policy. Even if you live in low or moderate flood risk area, you are five times more likely to experience a flood in your home than a fire. Don’t assume your homeowners’ insurance policy covers flood damage. Even if you have a flood rider, your coverage may be limited. Review your policy with your insurance agent to determine if you have flood coverage as well as its limitations.

Original published at https://dankrell.com/blog/2018/09/12/flood-insurance-checkup/

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September 5, 2018September 23, 2019

National Preparedness Month

September is National Preparedness Month! Being prepared is not just having a “bugout” bag at the ready. Preparedness is about taking stock to ensure safety for yourself and family in various conditions. When you hear “preparedness,” you may automatically think of disaster or national emergency. But it’s also about coping with various local emergencies including: weather, active shooter, hazardous materials, chemical, cybersecurity, and power outages.

FEMA encourages Americans to be prepared to prepare for and respond to all types of emergencies, including natural disasters and potential terrorist attacks. National Preparedness Month is FEMA’s focused outreach effort to educate and empower everyone through local and online events (https://www.ready.gov/september). National Preparedness Month activities are occurring throughout the country. In Montgomery County MD, local National Preparedness Month activities are coordinated through the County’s Office of Emergency Management and Homeland Security.

Preparedness in your home starts with maintenance. Proper home maintenance can not only help mitigate a disaster, but also prevent one as well. Regular maintenance of the home’s systems is obviously suggested. However, there are specific emergency related recommendations to help you in your home, which include: testing smoke alarms monthly, replacing smoke alarms every ten years, and knowing how to shut off your home’s utilities. Additionally, to prevent a chimney fire, you should have your fireplace and chimney inspected and cleaned annually by a qualified and reputable professional.

Information is key to getting through an emergency. If you have a cell phone, you may receive “Wireless Emergency Alerts” through the Integrated Public Alert Warning System, which includes amber alerts, weather alerts, and notifications from the Emergency Alert System. However, localities also have there own alert systems. Here in Montgomery County MD, the Montgomery Alert system can inform you of local government and school information, weather alerts, as well as traffic and infrastructure issues (montgomerycountymd.gov/OEMHS/AlertMontgomery).

Do you have an emergency plan? You should have a plan in case an emergency occurs in and out of the home. Take time to update your home fire evacuation plan, and practice it with a family fire drill. Choose a family rendezvous point in case an emergency occurs during work/school hours and the home is inaccessible. Because cell phones are not reliable during emergencies, alternate means of communication should be considered. Create a family communication plan by including: family contact information, family physician, medical facility information, and an out-of-town point of contact.

Is your homeowner’s insurance adequate? The aftermath of recent hurricanes and floods have demonstrated that home owners with proper insurance coverage recover from those disasters quicker. Insurance and emergency experts recommend to regularly review your insurance policy with your agent to ensure that the replacement costs of your home and possessions are covered. Coverage varies depending on the policy. Experts recommended to discuss flood and disaster insurance with your insurance agent.

As for the “bugout” bag… It’s recommended that you have an emergency kit in the home and in your car. A basic kit should be able to get you and your family through 72 hours of an emergency. However, extreme emergencies have revealed that infrastructure can be disrupted for weeks. Many experts encourage having an expanded home emergency kit to last at least two weeks in case of a prolonged lack of infrastructure.

Learn more about National Preparedness Month at FEMA’s Ready.gov (ready.gov/September). Ready.gov provides detailed information about preparedness for yourself, your family and your home, including assembling an emergency kit. Local preparedness information in Montgomery County MD can be obtained from Montgomery County’s Office of Emergency Management and Homeland Security (montgomerycountymd.gov/oemhs).

Original located at https://dankrell.com/blog/2018/09/05/national-preparedness-month/

By Dan Krell
Copyright © 2018.

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July 13, 2018April 29, 2019

Homestead tax credit – are you getting yours?

It’s been eleven years since Maryland forced all qualifying homeowners to reapply for the Homestead Property Tax Credit. Prior to the change in the application, applying for the Homestead Tax Credit was almost automatic for homeowners who claimed a primary residence. However, many abused the program to get tax credits on non-principal residences by claiming multiple properties or rental properties as their primary residence. The 2007 change was implemented to reexamine ownership, so as to stop the abuse of the property tax credit program.

The Homestead Property Tax Credit was created to assist homeowners with significant assessment increases on their principal residences. The credit limits the amount of taxable assessments. The state requires each county and municipality to limit taxable assessments to ten percent or less. Most of Montgomery County is limited to the state cap of ten percent. The Homestead Credit limits the property tax that the homeowner pays to the allowed limit.

According to the State Department of Assessments and Taxation website (dat.maryland.gov), the Homestead Property Tax Credit is granted if during the previous year: the property was not transferred to new ownership; there was no change in the zoning classification requested by the homeowner resulting in an increase value of the property; a substantial change did not occur in the use of the property; the previous assessment was not clearly erroneous; the dwelling must be the owner’s principal residence and the owner must have lived in it for at least six months of the year (including July 1 of the year for which the credit is applicable), unless the owner was temporarily unable to do so by reason of illness or need of special care.

A homeowner who vacates their home for major improvements, or plans to raze the home to build a new home may qualify for the Credit if the following two conditions are met: (1) the property was the homeowner’s principal residence for at least 3 full tax years immediately preceding the razing or starting the improvements; and (2) the building of the replacement home or the improvements must be completed within the next succeeding tax year after the tax year in which the razing or the substantial improvements were commenced.

Since 2007, many homeowners and home buyers have been unaware of the Homestead Tax Credit. Additionally, since then, many homeowners who may qualify for the Credit did not reapply. Many homeowners who purchased homes since then have also not applied for the Credit. Besides being unaware of their eligibility for the Credit, they may not have understood the Homestead Tax Credit and the application process. But this will change because of two bills passed by the Maryland General Assembly (HB990 Homestead Property Tax Credit Notification on Acquisition of Property, and HB305/SB158 Homestead Property Tax Credit Program Eligibility Awareness).

Beginning July 1^st, the State Department of Assessments and Taxation is required to mail a notice about the Homestead Property Tax Credit to individuals who purchase a home. And effective October 1^st, the State Department of Assessments and Taxation is required to identify homeowners who may be eligible for the Homestead Property Tax Credit Program (but failed to apply) and provide information on applying for the Credit with each assessment notice. For more information about your Homestead Property Tax Credit eligibility status and application process, please visit the State Department of Assessments and Taxation website (dat.maryland.gov).

Originally published at https://dankrell.com/blog/2018/07/13/homestead-tax-credit-maryland/

By Dan Krell
Copyright © 2018.

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July 3, 2018July 28, 2019

Independence, patriotism and homeownership

Let’s come together to celebrate our freedom and independence. Having innate and inalienable liberties is the foundation of this country. The concept of independence is abstract and usually expressed as intangible actions, such as the freedom from the tyranny of others. However, home ownership has become an icon of freedom that is tangible and obtainable.

Last month I wrote about a few of the benefits of owning a home as part of the recognition of National Homeownership Month. Besides being wealthier, home owners tend to be healthier and happier than their renter counterparts. The history of owning land has been one of wealth and luxury. Renting on the other hand has been associated transition, difficult times, and a hard life. This can be traced back to the middle ages, when serfdom was associated with leasing.

How did owning a home become associated with the American Dream? Richard Mize revealed the truth about the connection in 2013 (Who first dreamed the American dream of homeownership?; Oklahoman,com; June 22, 2013). Mize cites Eric John Abrahamson’s historical biography “Building Home: Howard F. Ahmanson and the Politics of the American Dream” (University of California Press) as the source of the story. Abrahamson attributes the idea of home ownership as the American Dream to the restructuring of local savings and loans after the depression of 1896.

Building and loan institutions during the 1800’s certainly did not have the technology nor the interconnectedness our modern banking system has today. In restructuring the financial system after the 1896 depression, local building and loans were organized to form the U.S. League of Local Building and Loan Associations. The League’s motto was “The American Home: The Safe-Guard of American Liberties.” According to Mize, this was promoted as the American Dream.

Abrahamson attributed the League’s first president, Seymour Dexter, with equating the idea of home ownership to liberty. According to Abrahamson, Dexter felt that owning property was a duty. Dexter believed Thomas Jefferson’s conviction that independent property-owning farmers would “sustain the independence and virtue of the citizenry and the health of the democracy.” Dexter viewed the industrialization of America as a “challenge to democracy.” The industrialized worker was much like the serf of the middle ages who rented a home near their job, and owed allegiance only to their employer (landlord), which was viewed as “politically corrupt.” And to rebuild America of the 1890s, owning a home became portrayed as patriotic and a “civic virtue.”

In 2011, then president of the National Association of Realtors Ronald L. Phipps wrote (Home ownership matters; magazine.realtor; February 1^st, 2011):

“Our commitment to home ownership is not about simple self-interest. Rather it is about a larger purpose. Home ownership has been part of the American experience since the very first breath of the Republic. Today, what we need to do as a nation is connect with our truth and our tradition: Home ownership matters.”

It’s not only Realtors who promote home ownership but government as well. Federal and local government programs exist to encourage home ownership through down payment assistance programs, low interest rate mortgages, and even home renovation programs.

As Seymour Dexter of the U.S. League of Local Building and Loan Associations realized, owning a home is an act of independence and patriotism. It doesn’t only benefit you personally, but it also benefits your community and the economy. The idea of independence transcends all ideology and can be exhibited by owning a home.

By Dan Krell
Copyright © 2018.

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