In Honor of Memorial Day, Tunnel To Towers to Provide Three Gold Star Families with Mortgage-Free Homes

Staten Island, NY - May 25, 2020 - (The Ponder News) -- This Memorial Day, the Stephen Siller Tunnel to Towers Foundation, named after a fallen 9/11 FDNY firefighter, announced it will be providing mortgage-free homes to three Gold Star families - the families of U.S. Army Staff Sergeant Matthew J. West, U.S. Army Specialist Christopher Michael Harris, and U.S. Army Staff Sergeant William S. Jackson II.

SSG West, 36, was killed in action in Afghanistan on August 30, 2010, when his vehicle was hit by an IED. He joined the Army in June of 2004, and was on his third deployment at the time of his death.

SSG West left behind his wife, Carolyn, and their three children, Tyler, Joseph, and Annaliese.

“Not only will the Gold Star Family Home Program allow me to give them [the children] a home, but it will also help me to secure their education and future with less stress, and allow us to continue to make more happy family memories,” said Carolyn West.

SPC Harris, 25, was killed in action in Afghanistan on August 2, 2017. He was just one month into his first deployment when a vehicle packed with explosives detonated near his convoy, taking his life.

SPC Harris left behind his pregnant wife, Britt, who was expecting their first child. She welcomed their daughter, Christian Michelle, in March 2018.

“She’s my whole world,” Britt said of Christian Michelle. “The Gold Star Family Home Program will allow me to set aside a proper savings account for my daughter.”

SSG Jackson, known to his friends and family as Jack, was killed on Veterans Day 2006 when an IED detonated near his vehicle in Ramadi, Iraq. The 29-year-old first served in the U.S. Marines for four years, from 1998-2002, before joining the Army.

SSG Jackson is survived by his wife, Katie, and their four children, Zachariah, Levi, Samuel, and Hannah. All four children were younger than six when their father was killed.

“Since Jack’s death, we have felt like we have been in survival mode in many ways. Receiving a home would take the edge off of the feeling of shouldering a heavy burden alone. It would bring such a sense of relief,” Katie said.

The Tunnel to Towers Foundation’s Gold Star Family Home Program honors the legacy of those who have made the ultimate sacrifice while serving our country by providing the surviving spouses and young children with mortgage-free homes.

“SSG West, SPC Harris, and SSG Jackson put their lives on the line in service of our country, and tragically, they did not make it home to their families. This Memorial Day, the Tunnel to Towers Foundation wants the West, Harris, and Jackson families to know that their sacrifices are remembered. We hope the knowledge that they will never have to make another mortgage payment again will provide Carolyn, Britt, Katie, and their children with some peace of mind as they continue to grieve,” said Foundation Chairman and CEO Frank Siller.

You can help Tunnel to Towers provide mortgage-free homes to Gold Star families by donating $11 per month at tunnel2towers.org.

Tax Relief for Federal Crumbling Foundations Announced

Hartford, CT - November 24, 2017 (The Ponder News) -- Congressman John Larson (CT-1) and Joe Courtney (CT-2) announced approval of new federal tax relief for homeowners dealing with crumbling foundations. The policy, released through an Internal Revenue Service (IRS) “revenue procedure,” follows nearly 19 months of work by the two members.

“The individuals and families in Connecticut with crumbling foundations have been experiencing an ongoing nightmare. While there is no one silver bullet solution to make up for the loss experienced by these homeowners, today’s announcement by the U.S. Department of Treasury will provide at least some degree of relief for many of them. It is the first time that the federal government has acknowledged the unique harm Connecticut residents have suffered through no fault of their own. I’d like to thank the IRS, the Department of Treasury, the National Taxpayer Advocate, and especially all of the homeowners who have reached out to my office to share their stories and allowed me to tour their homes,” said Larson. “Our work is not done. Rep. Courtney and I will continue to engage with the administration and colleagues on both sides of the aisle to pursue every possible avenue at the federal level to provide relief for these homeowners.”

“Today, the federal government has said ‘yes’ to helping homeowners struggling with the cost and damage of crumbling foundations,” Courtney said. “This is the culmination of a 19-month process with the Treasury Department, IRS, and the National Taxpayer Advocate to get federal recognition of the severe property casualty loss that north-central and eastern Connecticut homeowners are struggling with. This tax guidance adds a powerful new tool to the toolbox of options for homeowners and communities looking for way to get their arms around this extensive and long-term problem for our region. The origins of this effort started at the grassroots level from homeowners speaking out at community meetings and from Connecticut’s CPAs who urged Washington to extend casualty loss deduction to this problem. I thank Assistant Secretary Kautter, Secretary Mnuchin and former IRS Commissioner Koskinen for their personal attention and commitment to this issue - today’s announcement reflects their recognition that this is a severe problem requiring immediate attention. I look forward to continuing to work with my partner in this effort, Congressman John Larson, and officials from Treasury and IRS to make the implementation of this guidance as smooth as possible for homeowners and their communities.”

Under current federal tax law, taxpayers may deduct a casualty loss from their income if they have suffered a sudden loss due to fire, flood, theft, or other sudden and unusual causes. While pyrrhotite-related damage develops over time, Courtney and Larson have been seeking IRS guidance to allow a casualty deduction related to this longer-term damage, citing the precedent of IRS assistance to homeowners affected by corrosive Chinese drywall in 2010.

The new guidance, released by the Treasury Department, approves their request for federal tax relief. Specifically, the guidance allows for the treatment of crumbling foundation-related repair costs as a “casualty loss” deduction from a taxpayer's taxable income. The change is effective immediately, and taxpayers are allowed to submit amended returns.

Click here to read the guidance.

Starting in 2016, the two members and their staffs conducted research on the process of issuing a revenue procedure for crumbling foundation relief and began outreach to IRS staff to learn more about the limits of IRS policy in this area.

In May 2017, they consulted with then-IRS Commissioner John Koskinen, who supported the use of the 2010 precedent and agreed to weigh in with Treasury. The former Commissioner remained engaged on the issue as his term ended this month.

The two then wrote to National Taxpayer Advocate Nina Olson urging her support for applying the deduction to the crumbling foundation situation. In her response, she indicated support for the effort and sharing the proposal that her office submitted for consideration.

After getting support from Koskinen and Olsen, the two submitted a letter to Treasury Secretary Steve Mnuchin requesting a meeting to discuss possible federal tax relief for the homeowners who have been harmed by crumbling foundations. The Treasury Department’s Office of Tax Policy has the authority to make a decision on providing such tax relief.

Courtney and Larson also enlisted the support of the Congressman Richard Neal, the Ranking Member of the House Ways and Means Committee, who weighed in on behalf of the request with Secretary Mnuchin.

In September, Courtney and Larson met with Secretary Mnuchin and Assistant Secretary for Tax Policy David Kautter at the Department of the Treasury headquarters in Washington, D.C. to discuss assistance for north-central Connecticut residents impacted by crumbling concrete foundation. They requested that Treasury issue an IRS “revenue procedure” that to allow homeowners to deduct foundation repair costs from their federal taxes.

In a September 26 follow up letter to Mr. Kautter, Courtney and Larson provided additional information to help guide the department’s consideration of their request.

The Connecticut Society of CPAs also issued a letter in support of the effort in September.


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First-time Buyers Stifled by Low Supply, Affordability: 2017 Buyer and Seller Survey

Source: National Association of Realtors



Washington, D.C. - October 31, 2017 (The Ponder News) --Despite solid interest in buying a home – sparked by steady job gains, record low mortgage rates and higher rents – the severe drought in housing supply in much of the country over the past year accelerated price growth and kept many first-time buyers out of the market.

This is according to the National Association of Realtors®' 2017 Profile of Home Buyers and Sellers1, which also identified numerous current consumer and housing trends, including: mounting student debt balances and smaller down payments; increases in single female and trade-up buyers; the growing occurrence of buyers paying the list price or higher; and the fact that nearly all respondents use a real estate agent to buy or sell a home, which kept for-sale-by-owner transactions at an all-time low of 8 percent for the third straight year.

In this year's survey, the share of sales to first-time home buyers2 inched backward to 34 percent (35 percent in 2016), which is the fourth lowest share since 1981. In the 36-year history of NAR's survey, the long-term average of first-time buyer transactions is 39 percent.

“The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners,” said Lawrence Yun, NAR chief economist. “With the lower end of the market seeing the worst of the supply crunch, house hunters faced mounting odds in finding their first home. Multiple offers were a common occurrence, investors paying in cash had the upper hand, and prices kept climbing, which yanked homeownership out of reach for countless would-be buyers.”

Added Yun, “Solid economic conditions and millennials in their prime buying years should be translating to a lot more sales to first-timers, but the unfortunate reality is that the nation's homeownership rate will remain suppressed until entry-level supply conditions increase enough to improve overall affordability.”

Other key findings and notable trends of buyers and sellers in this year's 144-page survey include:

Student debt balances continue to grow

Highlighting the additional challenges imposed on consumers trying to reach the market, 41 percent of first-time buyers indicated they have student debt (40 percent in 2016). The typical debt balance also increased ($29,000 from $26,000 in 2016), and over half owe at least $25,000. Additionally, of the 25 percent who said saving for a down payment was the most difficult task in the buying process, 55 percent said student debt delayed saving for their home purchase.

“NAR survey findings on student debt released earlier this fall revealed that an overwhelming majority of millennials with student debt believe it's delaying their ability to buy a home, and typically for seven years,” added Yun. “Even in markets with a plethora of job opportunities and higher pay, steep rents and home prices make it extremely difficult to put savings aside for a down payment.”

Single females make up larger share of sales

Solid job prospects, higher incomes and improving credit conditions translated to continued momentum in the growing share of single female buyers. At 18 percent (matches highest since 2011), single women were the second most common household buyer type behind married couples (65 percent). Furthermore, single women purchased slightly more expensive homes than single men despite earning less. The overall share of single male buyers (7 percent) remained below unmarried couples (8 percent) for the second straight year.

Down payment amounts decrease for first-timers, rise for repeat buyers

The ongoing climb in home prices pulled the typical down payment for first-timers to 5 percent this year (6 percent in 2016), which matches the lowest since 2013. Meanwhile, higher home values likely gave more sellers the wherewithal to use the cash from their recent sale to make a bigger down payment on their new home purchase (14 percent; 11 percent in 2016). Repeat buyers' sales proceeds from their previous purchase (55 percent) surpassed their own personal savings (50 percent) this year as a larger source of their down payment.

Personal savings ranked first for first-time buyers as the primary source of their down payment, followed by a gift from a friend or relative (25 percent; 24 percent in 2016). Over a half of first-timers said it took a year or more to save for a down payment, and 25 percent said saving was the most difficult task in the entire buying process.

Age of first-timers stays flat; climbs to new survey high for repeat buyers

For the second straight year, the median age of first-time buyers was 32 years old. First-time buyers had a higher household income ($75,000) than a year ago ($72,000) and purchased a slightly smaller home (1,640-square-feet; 1,650-square-feet in 2016) that was more expensive ($190,000; $182,500 in 2016). Fewer first-time buyers purchased a home in an urban area (17 percent; 20 percent in 2016).

The age of repeat buyers increased to an all-time survey high this year (54 years old; 52 years old in 2016) as older households, perhaps with plans to stay in the workforce longer but with an eye towards retirement, felt more comfortable about buying. Overall, repeat buyers had roughly the same household income than last year ($97,500; $98,000 in 2016) and purchased a 2,000-square-foot home (unchanged from last year) costing $266,500 ($250,000 in 2016).

Supply scarcity leads to increase in buyers paying list price or higher

Underscoring the supply and demand imbalances prevalent in many parts of the country, 42 percent of buyers paid the list price or higher for their home, which is up from a year ago (40 percent) and a new survey high since tracking began in 2007. Buyers in the West were the most likely (51 percent) to pay at or above list price.

“Many of those in the market to buy a home this year had little room to negotiate,” said Yun. “Listings in the affordable price range drew immediate interest, and the winning offer often times had to waive some contingencies or come in at or above asking price to close the deal.”

Buyers report less difficulty obtaining a mortgage

The improving financial health of borrowers and a slight ease in credit standards are leading to a smoother process in obtaining a mortgage. Fewer buyers (34 percent) compared to a year ago (37 percent) indicated that the mortgage application and approval process was somewhat or much more difficult than they expected.

Fifty-eight percent of buyers financed their purchase with a conventional mortgage, and 34 percent of first-time buyers took out a low-down payment Federal Housing Administration-backed mortgage, which is up from 33 percent last year but down from 46 percent five years ago.

Nearly all buyers choose a single-family home in a suburban location

A majority of buyers continue to choose a home in a suburb, small town or rural area (85 percent) as opposed to an urban one (13 percent; 14 percent in 2016). Eighty-three percent of buyers purchased a detached single-family home, which for the third straight year remains the highest share since 2004 (87 percent). Purchases of multi-family homes, including townhouses and condos, were at 11 percent.

Most buyers search for homes online…and use a real estate agent

This year's survey data continues to show that the internet (95 percent) and real estate agents (89 percent) remain the top two information sources used during buyers' home search. Overall, 87 percent of buyers ended up purchasing their home through a real estate agent (88 percent in 2016), and finding the right property to buy and help negotiating the terms of the sale were the top two things buyers wanted most from their agent. Even for those who found the home they purchased online, nearly all still closed on it with the help of an agent (88 percent).

“It's no surprise a majority of first-time buyers indicated that the top benefits received from their agent were help understanding the buying process (83 percent), pointing out unnoticed property features or faults (60 percent), and negotiating better sales terms (51 percent),” said President William E. Brown, a Realtor® from Alamo, California. “Realtors® over the past year have helped buyers – and especially first-timers – navigate extremely competitive market conditions where the need to be prepared and act quickly has been paramount to the success of purchasing a home.”

Homeowner tenure at all-time high; equity and share of repeat buyers climbs

The typical seller over the past year was 55 years old, had a higher household income ($103,300) than last year ($100,700) and was in the home for 10 years before selling – matching the all-time high set both in 2014 and a year ago. Prior to 2009, sellers consistently lived in their home for a median of six years before selling.

With home values steadily rising over the past several years, sellers realized a median equity gain of $47,500 ($43,100 in 2016) – a 26 percent increase (24 percent last year) over the original purchase price. Homes sold after 21 years of ownership had the largest equity gain (104 percent), while those who purchased six or seven years ago saw a larger return (27 percent) than those who purchased between eight and 15 years ago (14 percent to 18 percent).

The percent share of buyers trading up increased for the third straight year, rising to 52 percent from 46 percent in 2016. In 2014, 40 percent of buyers purchased a bigger home.

“The decline in first-time buyers and uptick in repeat buyers trading up to a larger home reflects the more favorable conditions for home shoppers at the upper end of the market, where listings are more plentiful and sales have been consistently higher over the past year,” said Yun.

Seller use of an agent remains at all-time high; FSBOs at record low

Sellers' use of a real estate agent this year remained at an all-time high of 89 percent. This in turn – for the third straight year – held for-sale-by-owner sales to their lowest share (8 percent) in the survey's history.

An overwhelming majority of sellers were satisfied with the selling process (88 percent), with most also indicating that they would definitely or probably use their agent again or recommend him or her to others (85 percent).

“Homeowners understand the value, and seek the expertise and guidance Realtors® bring to the table when it's time to sell their home,” said Brown. “Despite incredibly favorable market conditions for sellers – where finding interested buyers was not a problem – nearly all turned to a Realtor® to help assist them through the intricacies of listing their home on the market, accepting offers, negotiating the sales price and closing the deal.”

NAR mailed a 131-question survey in July 2017 using a random sample weighted to be representative of sales on a geographic basis to 145,800 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,866 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent.

The recent home buyers had to have purchased a home between July 2016 and June 2017. All information is characteristic of the 12-month period ending in June 2017 with the exception of income data, which are for 2016.

The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

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Maloney Introduces First Time Homeowner Savings Plan Act to Help Families Invest in First Home

Middletown, NY - August 24, 2017 (The Ponder News) -- Amid a national rental affordability crisis, Representative Sean Patrick Maloney (NY-18) announced his introduction of the bipartisan First Time Homeowner Savings Plan Act. The bill will allow Americans to withdraw up to $25,000 from their IRA for the purchase of their first home without being penalized when they file their taxes. Experts agree that homeownership is one of the best ways for middle class Americans to save for retirement.

“Rental costs are out of control and housing isn’t getting any cheaper,” said Rep. Maloney. “It doesn’t make any sense for the government to penalize people who want to make a smart investment in their first home, and my bill would fix that.”

“I support this bill wholeheartedly because I have three grown children, and they’re about to look for a permanent place to live,” said Assemblywoman Aileen Gunther. “I’m hoping this legislation will pass quickly in Washington – I don’t think anybody could oppose it.”

“Being allowed to invest up to $25,000 is just investing in yourself and your future,” said Orange County Legislator Mike Paduch.“I’m very proud to support it.”

“Homeownership is the American Dream,” said Wallkill Town Councilman Eric Johnson. “At the local level, it builds communities that we need, it builds a tax base, it builds a foundation that makes a safe place to grow up and for families to live.”

“I am thrilled to see Rep. Maloney’s continued and consistent efforts to help residents in the Hudson Valley,” said New York State Association of Realtors Vice President for the Lower Hudson Valley Katheryn DeClerck. “I hope the word gets out to people all around the country to support this bill. Homeownership matters to everybody, it contributes to strong communities, people who purchase a home buy furniture and landscaping and invest in their communities.”

“Homeownership is the foundation of our community,” said Executive Director of the Orange County Rural Development Advisory Corporation Faith Moore. “This provision will be an opportunity to add another tool to our assistance.”

"We strongly support Congressman Maloney's First Time Homeowner Savings Plan Act,” said Connie Fagan, Director of the Putnam County Housing Corporation. “Putnam County Housing Corporation's Housing Needs Assessment (January 2014) prepared by the Center for Housing Solutions, Pattern for Progress revealed, Eighty-eight percent (88%) of owners and renters in Putnam county, regardless of income level, are living in Unaffordable and Severely Cost Burdened Housing.' This bill would assist more young individuals and families in realizing the dream of owning a home in their community."

High rents and high housing costs are making it increasingly difficult for first-time homebuyers to save money and invest in a home. Experts agree that home ownership is one of the best ways for middle-income families to achieve retirement security. Yet, first-time homebuyers make up only 32% of all buyers, which is the lowest rate since 1987. Additionally, the number of renters dedicating at least half of their income toward housing hit a record high of 11 million people in 2014, according to the Joint Center for Housing Studies of Harvard University.

In 1997, Congress passed legislation allowing first time homebuyers to withdraw up to $10,000 from their IRA without incurring a penalty. Under current law, individuals who withdraw more than $10,000 from their IRA before age 59.5 incur a 10% tax in addition to having the withdrawal subject to income taxes. Rep. Maloney’s First Time Homeowner Savings Plan Act would increase the limit to $25,000 and index it to account for inflation.