DeSantis Signs Two RE Bills Into Law
DeSantis Signs Two RE Bills Into Law Two Florida Realtors-backed bills – the rental housing bill (HB 1417) and local ordinance bill (SB 170) – clarify rental rules and ease some local regulations. TALLAHASSEE, Fla. – Gov. Ron DeSantis signed two of Florida Realtors® remaining legislative priorities into law on June 29: HB 1417 (Residential Tenancies) goes into effect on Saturday; SB 170 (Local Ordinances) goes into effect Oct. 1, 2023. HB 1417 HB 1417 impacts local rental regulations. Faced with rising rental costs, a number of Florida cities passed landlord/tenant regulations that go beyond what is prescribed in state law. While seemingly well-intentioned, many of these local rules exacerbate rental-cost problems over time. The policies cause a cooling effect among builders. Given a choice of metro areas with different rental regulations, builders often opt for the less regulated environments. That, in turn, slows the construction of affordable housing in cities that often need it most. Once builders leave an area, competition grows, rents move even higher, and the housing problem becomes even more challenging for those who can still afford to live there. Under HB 1417, residential tenancies regulation will fall under state law. There will eventually no longer be a patchwork of local regulations that drive away builders and cause confusion between landlords and tenants. HB 1417 also works in concert with the Live Local Act, which creates a wave of new affordable rental housing across Florida over the next 10 years. The Live Local Act pushed affordable housing development in all areas of the state that need it, but without HB 1417, builders would have remained uneasy about heavily regulated areas. SB 170 SB 170 has the potential to help many local businesses, including vacation rental companies, fight back against harmful regulations causing them economic harm. Local governments routinely pass ordinances that directly and indirectly impact local businesses, and many have unintended consequences. Under SB 170, local governments must show the impact of a new ordinance on businesses and suspend enforcement if an ordinance is challenged in court. The law gives businesses new tools to challenge unnecessary and burdensome regulations.
Governor Ron DeSantis Announces Hometown Heroes Program Has Provided $100 Million in Down Payment Assistance to Florida’s Hometown Workers
TALLAHASSEE, Fla. — Today, Governor Ron DeSantis announced that the Florida Hometown Heroes program has provided $100 million in down payment and closing cost assistance to help Florida’s hometown workers purchase homes in the communities they serve. Governor DeSantis announced the launch of Hometown Heroes in June 2022, and since then the program has helped 6,753 veterans, active-duty military members, nurses, teachers, and law enforcement officers purchase homes for their families. “Florida’s hometown heroes work hard to support our communities, and I am proud that we have supported over 6,700 of them as they purchased their family homes,” said Governor Ron DeSantis. “Through the Hometown Heroes housing program, we are ensuring that our police officers, firefighters, teachers, nurses, and military members and veterans can afford to buy homes in the communities that they have dedicated their lives to serving.” “Florida Housing is proud to have assisted thousands of hometown heroes in achieving the American Dream of homeownership,” said Mike DiNapoli, Executive Director of Florida Housing Finance Corporation. “By providing more hardworking Floridians with a place to call home, we are helping to facilitate healthier family environments, build stronger communities, and improve local economic impact. We appreciate the Governor’s continued support of this program and are honored to follow his lead in supporting Florida’s hardworking families.” Following the initial success of the Hometown Heroes program, the Florida Legislature allocated additional funding for the program through the Live Local Act. On July 1, the Hometown Heroes program will receive $100 million for the 2023–2024 fiscal year to continue assisting Florida families in purchasing their first home. The maximum down payment assistance amount will increase to $35,000, or up to 5% of the first mortgage loan amount. To get started, homebuyers must connect with one of Florida Housing’s participating loan officers, have a minimum credit score of 640, be a first-time homebuyer, and earn less than 150% of the area median income, according to their local county data. For more information on the Florida Hometown Heroes Housing Program, please visit www.floridahousing.org/hometownheroes.
What Does Fed’s Rate Pause Mean for Buyers?
What Does Fed’s Rate Pause Mean for Buyers? By Melissa Dittmann Tracey Should buyers hope for lower mortgage rates later this year? Maybe a bit. Will it convince more homeowners to list their property? Probably not. CHICAGO – Ending a cycle of 10 consecutive rate hikes, the Federal Reserve voted to hold off on another increase to its key short-term interest rate. The news fueled hopes that borrowing costs for homebuyers could cool in the coming weeks, but only if the Fed continues to pause rate hikes. Mortgage rates are not directly tied to the Fed’s benchmark rate but are often influenced by it. The Fed’s latest decision came on the heels of an improved inflation rate, which was 4% annually in May. While that’s its lowest level in two years, it’s still far from the Fed’s 2% target. “It also marks the first month in two years that wage growth outpaced consumer price inflation, improving the average standard of living,” says National Association of Realtors® (NAR) Chief Economist Lawrence Yun, who believes that “further deceleration” in inflation appears likely in the coming months. However, the Fed also signaled on Wednesday that two more benchmark-rate increases are likely this year as it continues to manage inflation. Yun, however, says further Fed hikes are unwarranted; in fact, the Fed may need to start lowering its rate soon. “A monetary policy lag time exists between decision and inflation,” Yun says. “The rate hikes from earlier months have yet to exert their force at a time when inflation has already decelerated to 4%. There is no need to consider raising interest rates. In fact, considering the balance sheet difficulties faced by community banks and the weakness in the commercial real estate sector, the Fed should look at cutting interest rates before the end of the year.” According to Yun, the “Fed should look forward, not backward.” Will mortgage rates go up or down? Mortgage rates are closely tied to the 10-year Treasury bond, which responded this week to better inflation news with a rate decline to 3.7%. “That (percentage) normally means the 30-year mortgage rate is around 5.5% to 5.7%,” Yun says. “Of course, we know mortgage rates have been near 7% recently, but the potential for a decline is real as we progress through the year.” Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.71% last week, up from 5.23% a year earlier, and an even further spread from the 3% averages in early 2022. The higher rates have added considerably to homebuyers’ costs. The Fed’s latest decision to hold off on a rate increase in June “will ensure that mortgage rates are likely to keep moving sideways for the next couple of months,” says George Ratiu, chief economist at Keeping Current Matters. “While the Fed’s short-term rate does not directly impact long-term mortgage rates, higher borrowing costs have been trickling throughout the financial system. The 30-year fixed mortgage rate has hovered in the 6% to 7% range since mid-November 2022, cresting the upper limit several times over the past few weeks. The spread between the 10-year Treasury and the 30-year fixed mortgage rate remains about 300 basis points.” In any case, Ratiu says the economy remains on solid footing. “Employment continues rising, and consumer spending has been resilient even with higher borrowing costs,” Ratiu says. “The big question for the central bank centers on consumers’ ability to manage high interest rates considering record-high debt levels.” Source: National Association of Realtors® (NAR)
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