Cumberland Valley School District school tax increase

On May 20th Cumberland Valley School District in Cumberland County approved a tentative budget with a 2.9% school tax increase. This tax increase follows a county-wide reassessment last year and a 9.5% school tax increase by the nearby Camp Hill School District in 2010.

Cumberland Valley officials did not comment as to whether this tax increase bears any connection to the statewide lawmaker 2001 pension increase that has been projected to cause large school tax increases throughout Pennsylvania in 2012.

New Giant and Weis Markets in Hampden Township

The Harrisburg Patriot-News reported last week that Giant plans to open a new 90,000 square foot supermarket in Hampden Township, Cumberland County, while Weis Markets plans to open a 63,000 square foot supermarket nearby. Both supermarkets are planned for Valley Road (near Wertzville Road) - roughly in the northern portion of the developed part of the Township.

If both stores are completed, the number of supermarkets within the Township will double. Hampden is the most populous municipality in Cumberland County.

These plans reflect continued growth in Hampden Township and continued population saturation/expansion in a northern and western direction from the Susquehanna River through Cumberland County. These stores would be part of a trend of development through and near a long strech of Wertzville Road in northern Hampden Township (and northern Silver Spring and other Townships) over the past decade, including office parks, gas stations, retail centers and a school.

Real estate prices, gasoline prices and stranded motorists.

From Pittsburgh came a report last month on one way in which rising gasoline prices have already begun to affect consumer behavior:

With gas prices pushing $4 a gallon, a lot of people are trying to stretch their dollar at the gas pump, but some of them are trying to stretch it a little too far.

Since the beginning of March, AAA has seen an 18 percent increase in the number of roadside calls for people running out of gas.

I have speculated previously on the relation between gasoline (and other commodity) prices and real estate sales. With this report, it becomes apparant that consumer behavior is already starting to change. While it may appear to be a small matter that more consumers are being left stranded on the roads, this trend is an indicator of larger behavioral trends, including major purchases such as real estate.

Even though commodity prices have stabilised (and even dropped slightly) over the past two weeks, it is highly likely that the recent commodity price run-up will trigger another round of real estate price decline and/or sales stagnation.

Harrisburg to announce new blight policies

Mayor Thompson of Harrisburg is set to announce new policies aimed at blighted properties within two weeks. This announcement apparently results from a large empty building on North 18th Street in Allison Hill:

[Code Officer] Patton said his department has cited the building owner nine times, but the problem remains. According to Thompson, in two weeks she will announce new, stricter policies against city blight.

It is not yet known what those new policies will be.

Quote of the day - short sales and foreclosures

“These days, there are no traditional sales. They’re all short sales or bank-owned.”

Zar Zanganeh - Las Vegas real estate broker - Bloomberg.com - April 26, 2011 (speaking of Las Vegas real estate market).

Maronda Homes, Inc. files bankruptcy petition; Title issues of which to be aware.

Last week, the Pittsburgh area's third largest builder filed for bankruptcy protection.

Maronda Homes Inc., the region's third-largest home builder, filed for bankruptcy protection from creditors yesterday amid a national and local housing market that continues to stagnate.

H/T Pittsburgh Tribune Review

The builder assures buyers that settlements will continue as scheduled:

For Maronda customers, homes will be built, and closings will be held on time "with no issues whatsoever," according to attorney Joseph F. McDonough, representing Maronda.

U.S. Bankruptcy Judge Judith Fitzgerald approved an order that closings continue, he said.

It may be true that closings will continue as scheduled, but title agents will face additional issues as a result of the bankruptcy filing and whatever legal/debt issues forced Maronda into bankruptcy.
Title agents should do the following in addition to their regular duties handling the closings:

• scrutinize all bankruptcy orders to make certain that sales are authorized and liens are removed.


• devote additional diligence to the judgment index in the county in which the real estate exists.


• make certain that all subcontractors and materialmen have been paid prior to closing. The period for filing mechanics liens was expanded in 2007 to six months following the performance of the work. Even if the subcontractors have filed no lien prior to settlement, any lien they file up to six months after settlement could take priority over the new deed and the new mortgage.


• be certain that all real estate taxes have been paid - especially for the current year - instead of relying only on the records of tax claim bureau.

Buyers should be careful to hire a real estate attorney for settlements instead of letting the mortgage broker or realtor choose a non-attorney title company to conduct settlement. Non-attorney settlement companies may not be aware of the above issues, especially the mechanics lien issues.

These concerns should be addressed always, but in the current real estate market these issues are more likely to create a problem.

Maronda conducts development in five states, including western Pennsylvania.

HB 377 passes both house of Pennsylvania legislature; Sprinkler requirement repealed.

House Bill 377 has now passed both houses of the Pennsylvania legislature. Click here for items on the history of this legislation.

The sprinkler requirement for new single family home construction is now repealed.

Amendments to the repeal bill also would make it more difficult for the legislature to adopt large scale revisions to the Uniform Construction Code in the future without careful consideration.