What’s stopping you from putting in the effort?

BY TOM FERRY MAR 5 It happens to the best of us. We have a goal of achieving something, and then some way, somehow, we find every excuse to not take action. Simply put, your behaviors are not aligned with your goals. And this, my friends, is the difference between the rich and the rest. Effort, ambition, desire, determination — whatever you call it, the answer to unlocking your full potential lies in answering the following three questions. Warning: Answering these questions requires you to dig deep, to find the core of what drives you. And that’s the easy part. The hard part is holding yourself accountable to following through on the behaviors that get results. That’s why my coaching company exists and why members in the program achieve so much success. When you’re ready to fully commit to achieving the success you’ve always desired and deserved, we’re here to help. Why do you exist? That’s pretty deep, but seriously, what excites you to get up in the morning, exercise, make your calls, go on listing appointments — and do it all over again the next day? For most of us, the answer is financial security. But what does money really give us? A nice house, cars, and a specific lifestyle? Sure, but if you’re like me, it’s so much more than material possessions. It’s the security I can provide my family. Knowing that I am doing everything in my power to provide at the highest level, to give my family the best life possible. That “why” is what I need to keep pushing, even when I’m tired, even when I’m scared and especially when I’m unmotivated. Knowing your “why,” having it written down, up and visual in your house, wallet, office, is the first step toward unlocking your potential. If you feel like sharing your “why,” I’d love to know – hit me up on social @tomferry. What stamp do you want to make on the world? Achieving true success isn’t just about you. True success means you’re able to create a far-reaching impact — to improve other people’s lives, to shine hope and joy and light into the darkness, to leave a legacy. So who do you want to take care of? Where do you want to make your mark? Your parents? Your friends? Your church? Your community? Charitable causes? Find something so meaningful to you that you jump out of bed every morning determined to take one step closer to that goal. What’s your plan to achieve financial freedom? There’s a sad truth we must confront in our industry — while real estate gives us the ability to earn limitless income, it often doesn’t adequately prepare people for retirement. Do you plan to retire with gusto, or just fade away? Devising a successful retirement plan requires painting a picture of what you want with great specificity. Then do the math — figure out how much money you need and when. Only with a concrete plan will you ever achieve the retirement you desire. Real estate is tough! Over my 30,000 hours of coaching agents to fulfill their greatness, I’ve learned a thing or two about finding and activating ambition to achieve incredible results. And I’d be honored to help you find your success. Schedule a complimentary call with one of my coaching consultants today. Take the next step Answering these three questions is a crucial step our coaching members take to tap into their motivation and propel them on their journey to fulfill their vast potential. If you’re struggling to make your calls or do the things you know will lead you to success, I encourage you to sit down, dig in and answer these three questions. This exercise will supercharge your ambition by bringing your “why” to the forefront.

Yes, Interest on Home Equity Loans is Still Deductible by Robert Freedman on March 5, 2018

There’s been confusion since the big tax law was enacted over the deductibility of interest on home equity loans. NAR has been saying that the interest is still deductible for the part of the loan that’s used for home repairs, renovations, and additions. And that’s the correct interpretation, according to the IRS. The agency confirmed that in a memo about a week and a half ago. VRE 82 image The part of the loan that’s used on the house to fix something or improve it remains deductible under the new tax law. Loan proceeds that are used for personal living expenses or anything not related to improving the home is not deductible. The clarification is looked at in the latest Voice for Real Estate news video from NAR. The video also looks at an important vote in the House on so-called drive-by lawsuits. These are lawsuits filed by people who are using accessibility requirements under the Americans with Disabilities Act to extract fees from small property owners. People are sending letters to property owners alleging they have an ADA violation and threatening a lawsuit unless the owner reaches a settlement with them. The person sending the letter typically doesn’t even say what the alleged violation is. The only way the owner can find out is by going to court. Most owners end up settling as the cheaper alternative and if there was ever any violation the owner never finds out what it is. The House passed a bill requiring people who send these letters to identify what the alleged violation is and to give owners a chance to correct the problem before taking them to court. It’s a solution that addresses a clear abuse of an important law and NAR supported its passage. The bill still has to be taken up in the Senate. Other topics in the video include NAR’s Commitment to Excellence initiative, which will roll out later this year, to give NAR members a chance to voluntarily assess how well they perform on key aspects of their business, including technology, the Code of Ethics, and the forms and contracts they use. The video also gives an update on home sales—they’re off to a slow start this year, mainly because of inventory shortages in many markets, especially among lower-cost starter homes—and what’s happening in commercial real estate. Briefly, transaction volume on small cap properties is doing okay but volume on large cap properties is slowing down.

Facebook housing fund gets cash boost, now ready to start backing projects

Visitors visit the sign outside Facebook headquarters at 1 Hacker Way, in Menlo Park, Calif., Friday, May 27, 2016. Tech tourism has become prevalent in the past few years at Silicon Valley icons. (Patrick Tehan/Bay Area News Group) (Patrick Tehan/Bay Area News Group) Visitors visit the sign outside Facebook headquarters at 1 Hacker Way, in Menlo Park, Calif., Friday, May 27, 2016. (Patrick Tehan/Bay Area News Group) By MARISA KENDALL | mkendall@bayareanewsgroup.com | Bay Area News Group PUBLISHED: March 6, 2018 at 6:00 am | UPDATED: March 6, 2018 at 6:28 am More than a year after becoming one of Silicon Valley’s first big tech companies to commit to creating more affordable housing, Facebook said Tuesday that its Catalyst Housing Fund is a step closer to backing new units. The fund has reached a key milestone by landing its first outside investor — local nonprofit The San Francisco Foundation, which is adding $1 million to Facebook’s original $18.5 million contribution. “We’re ready to go,” said Facebook global mobility manager Menka Sethi. “And I think you’ll see us fund projects hopefully very early in this year.” ADVERTISING The move comes as the booming tech economy has flooded the Bay Area with high-paying jobs, driving up the cost of renting or buying a home, pricing out many local residents, and leading many in the community to demand that tech companies like Facebook do something to combat the problem. After East Palo Alto-based community coalition Envision, Build, Transform threatened to sue Facebook over its expansion in Menlo Park, the tech giant in December 2016 pledged $18.5 million to fund affordable housing construction in the area. A handful of other large tech companies have taken similar steps. Google is working with Mountain View officials to add nearly 10,000 new homes and apartments to North Bayshore. While building its new “spaceship” campus in Cupertino, Apple gave $5.85 million to that city’s affordable housing fund. And last year LinkedIn invested $10 million in Housing Trust Silicon Valley’s Tech Fund. But there’s pressure for cash-flush tech companies to do more, and some housing advocates hope the Catalyst Fund will inspire other tech companies to step up. “More and more companies are recognizing that it’s a crisis,” said Carl Guardino, president and CEO of the Silicon Valley Leadership Group trade association, “and those that have the capacity…to also be a part of the solution, more and more are stepping forward. Do we need more to step forward? Absolutely.” Facebook’s goal is to back affordable housing projects within a 15 mile radius of its Menlo Park campus — with $10 million specifically going to development in East Palo Alto. Facebook in August brought on fund manager Local Initiatives Support Corp. (LISC), which intends to take the nearly $20 million in the fund and grow it into $75 million by collecting outside loans. “The San Francisco Foundation making that $1 million investment is a huge momentum-builder for us,” said LISC CEO Maurice Jones. In a blog post, The San Francisco Foundation said its contribution to the Catalyst Fund, which is a low-interest loan, will help finance the development and preservation of more than 500 low-income housing units. Facebook intends to reserve about one-third of the units it funds for families making 30 percent or less of the area’s median income, one-third for families making 30 to 50 percent, and one-third for families making 50 to 80 percent. Like most projects related to home-building, Facebook’s Catalyst Fund has run into some delays along the way. In August, the company said it planned to begin investing in affordable housing projects by the fall of 2017, but that date was pushed back after it took longer than anticipated to get LISC nailed down as fund manager and approved by the city of East Palo Alto, which is partnering with the Catalyst Fund, Sethi said. And though teaming up with outside investors has been the stated goal from the time Facebook launched the fund in December 2016, it’s taken more than a year to land the first investor. The Catalyst Fund held its first meeting last month with community members and potential developers, and Sethi said there will be more to come. The fund is researching potential projects for investment, she said. Whatever projects they choose may be further delayed in waiting for city approval. Related Articles Fund manager hopes to quadruple Facebook’s $18.5 million housing fund Facebook commits $20 million for affordable housing, other assistance Tameeka Bennett, executive director of East Palo Alto-based nonprofit Youth United for Community Action — one of the groups that threatened to sue Facebook and now is involved in the Catalyst Fund — said the nearly $20 million initiative is encouraging, but it’s just a “drop in the bucket” given the Bay Area’s housing shortage. “No, this isn’t going to solve the problem,” she said. “And I think Facebook and other tech companies…they have to think about things like housing. They can’t just build and not be intentional about that.”

Realtor’s ‘Not-Haunted’ for-sale signs draw laughs, boos

Realtor’s ‘Not-Haunted’ for-sale signs draw laughs, boos Houston-based Realtor Ellis Young is also attracting attention with his 'Gluten-Free House,' and 'Harvey Tested' signs BYMARIAN MCPHERSON Staff Writer MAR 5 Faster. Better. Together. Inman Connect San Francisco, Jul 17-20, 2018 LEARN MORE For Houston-based Realtor Ellis Young, a traditional “For Sale” sign just won’t do. Instead, Young likes to add uncanny and hilarious phrases — the latest being, “Not Haunted.” Young’s latest listing in Manvel, Texas, is a 3,600-square-foot home with four bedrooms, three and a half baths and a private backyard — all features that should draw in potential buyers with no problem. Ellis Young’s “Not Haunted” listing, 3223 Spring Ridge Dr., Manvel, TX 77578 Young, who is with Realty One Group-Lone Star, and his sellers thought the “Not Haunted” sign would, at most, draw in curious buyers and, at the very least, give passersby something to laugh at. But Young got a little more than he bargained for when a couple neighbors wrote a Facebook post calling Young “unprofessional,” and then sent the post to ABC 13 in Houston. “You can’t do it the same old way. You’ve got to spice it up. You’ve got to look different. You’ve got to keep it fun,” Young explained to ABC 13. What’s stopping you from putting in the effort? Tom Ferry: How to get out of your coma and supercharge your production READ MORE Young told Inman he got the idea from his sign maker, who serves clients in Louisiana. There, the sign maker said, real estate agents use “Not Haunted” signs as a serious marketing tactic, so he jokingly asked Young if he’d like to start using them. “I was like, shoot, let’s do it — let’s roll with it,” said Young with his Texas twang. Young’s “Harvey Tested” sign. (Credit: Ellis Young) He put out the first “Not Haunted” sign six months ago, and he has a few other signs in the rotation, such as “Gluten-Free House,” “Harvey Tested,” “Room For Activities,” “Free VCR with Purchase” and “Backyard Included.” Young’s “Harvey Tested” sign. (Credit: Ellis Young) His favorite sign is “Room For Activities,” a reference to a scene in the movie “Step Brothers,” where Will Ferrell and John C. Reilly’s characters build a makeshift bunk bed and excitedly declare, “So much room for activities!” The jokes don’t stop with his signs — Young’s car reads: “Voted 13th most attractive realty team in the Pearland area,” which he says is ironic since there aren’t even 13 realty teams in the area. Although some don’t understand his humor, Young says he’s not stopping anytime soon, and he’d rather be authentic to himself — something that helped him earn a Houston Association of Realtors Top 20 Under 40 award last year. “Just be yourself,” Young said. “It’s cliche, but that’s what it is. Find a brokerage that allows you to be who you want to be. If you’re genuine, people tend to gravitate toward that versus someone who is scripted.” View news coverage of the “Not Haunted” sign here, courtesy of local Houston news channel ABC13. Email Marian McPherson

The Best Real Estate Service

Homes Record Breaking Returns

Bay Area homes deliver record-breaking returns Louis Hansen PUBLISHED: February 28, 2018 at 10:01 am | UPDATED: March 1, 2018 at 7:42 pm Categories:Business, California News, Latest Headlines, News, Real Estate Richard Rogers looks at the kitchen at an open house at 5893 Taormino Avenue in San Jose, Calif. on Sunday, Feb. 25, 2018. (Randy Vazquez/ Bay Area News Group) (Click here, if you are unable to view this photo gallery on your mobile device.) The good times started to roll in April 2012. The Warriors had a solid new back court named Curry and Thompson and local home prices started to climb again. Since then, Bay Area homes have gained value year-over-year for a record 70 straight months, according to real estate data firm CoreLogic. It’s been nearly six years, and the Warriors and the housing market look stronger than ever. Some counties have seen average property values nearly double during that stretch, including appreciation of more than 80 percent in Alameda, Contra Costa, Santa Clara and San Mateo counties. That’s nearly twice the national increase during the same time. In Alameda and Solano counties, real estate offered better returns than even the Dow’s 87 percent run-up between April 2012 and December 2017. “It never cooled down,” said Mark Wong, agent at Alain Pinel in Saratoga. “It just kept heating up.” The streak tops the real estate fever that overtook the valley during the dot.com boom from early 1996 though September 2001. But agents say there’s more stability now in the region’s economy from established and expanding tech giants such as Apple, Google and Facebook. They don’t expect the real estate run-up to slow down. The latest sales report from January reflects a steady rise in home prices, pumping up values for property owners while leaving first-time buyers busting budgets to purchase a starter home. Experts say prices were boosted by continued tight inventory and a growing, well-paid workforce. The sheer scarcity of homes for sale is driving up bids. The Bay Area median price for a resold home rose to $712,000 in January, an 11.8 percent gain from a year ago, according to a report released Wednesday by CoreLogic. Median sales prices in San Mateo rose 30 percent from the previous January, reaching $1.31 million. Santa Clara prices jumped nearly 24 percent to $1.05 million. Alameda rose about 14 percent to $755,000, and Contra Costa home prices went up 7 percent to $535,000. Gains have reached double-digits for the last six months. But rising prices also meant a drop in home sales. The 3,410 purchases of resale homes last month represented a dip of nearly 4.5 percent from last year, according to CoreLogic. Over the long-term, the Bay Area bounced back more quickly from the real estate crash than other parts of the country, said CoreLogic research analyst Andrew LePage. He noted that other metro areas in the west, including Los Angeles, Seattle and Phoenix, have seen similar strong runs in their housing markets. But the Northern California run has been notable for its record-busting prices. “The Bay Area is impressive, or daunting, depending on your perspective,” LePage said. Local agents say the streak has been fueled by the combination of a strong local economy steadily adding tech jobs, rising stock prices that benefit tech professionals, and confident buyers. William Doerlich, an agent with Realty One in San Ramon, said the market began to turn around 2011 and 2012 with the help of federal tax breaks. “It really started what we’re seeing — this fairly robust market,” he said. Alain Pinel’s Wong said many clients were looking to catch the bottom of the market around 2012. “But whenever you see the bottom,” he said, “you’ve missed it.” Wong has seen houses in hotspots like Cupertino, Los Altos and Mountain View going for almost 50 percent over asking price. “It’s a very good long-term investment,” he said. Agents continue to point to the shortage of new homes being built as a key reason for escalating prices. By one estimate, the region added 6 times as many jobs as new housing units between 2010 and 2015. “We’re not nearly keeping up pace,” said Gustavo Gonzalez, a San Jose agent. “We’re not trying to send somebody to Mars, here. We’re trying to build more houses.”

3 Secrets for a Better Retirement in 2018 By ELIZABETH O'BRIEN January 1, 2018 Retirement, like all life stages, is a work in progress. Whether you’ve been out of the paid workforce for days or decades, there’s always room for tweaks to improve your finances—and your fun quotient. “No matter what step you’re at, take some time to say, ‘what’s next?'” advises Keith Lawrence, co-author of Your Retirement Quest. Here are three steps for making your retirement even better in 2018: Check Your Spending It’s common to worry about your spending rate in retirement. A conservative way to ensure your money will last is to avoid dipping into your principal and instead let the income and investment gains your portfolio generates cover your living expenses, along with Social Security and any other income sources. If your portfolio isn’t big enough to generate enough income, or the markets go into a prolonged slump, a general rule of thumb holds that you can annually withdraw 4% of your nest egg—regardless of its size—and never run out of money throughout retirement. While some financial experts have questioned the sustainability of the so-called 4% rule amid expectations of lower future investment returns, it’s still a reasonable starting point, many advisors say. It’s important to note that this 4% should be enough to cover both your regular expenditures and one-time items like a new roof or a big vacation, says B. Kelly Graves, a certified financial planner in Charlotte. “Retirees should save up for the large expenses and build a kitty for them,” he says. A tool like T. Rowe Price’s retirement income calculator can give you an estimate of whether your portfolio is on track to meet your spending goals in retirement. The tool estimates how much of your monthly income will come from your own portfolio versus Social Security, pensions and any other income sources, and projects how long your savings might last. If your goal is to spend, say, $2,000 each month from your investments, you can ask your brokerage firm to set up a “paycheck”: the firm will transfer the desired amount each month from your investment portfolio to a checking or savings account. (It’s best to create a “cash bucket” for this purpose, so you’re not forced to sell stocks in a down market to generate the needed amount.) It gives many retirees peace of mind to replicate the paycheck they got while working, says Jay Hummel, head of direct sales and service at American Century Investments. Take That Big Trip You want to ensure a sustainable spending rate in retirement so you don’t run out of money. But you don’t want to be so conservative that you miss out on the fun that’s your reward for a lifetime of hard work. If you’re not comfortable doing the math yourself, a good financial planner can assess your situation and give you permission to spend. (Certified financial planners have passed a rigorous exam and must adhere to a code of ethics.) If your budget and your health allow, don’t delay checking big-ticket activities off your bucket list, Hummel says. That means, go ahead and take that wine tour of Italy, or the snorkeling trip to the Maldives that you’ve been dreaming of for years. “Health issues happen, family issues happen,” Hummel says, and folks wind up with regrets: “Boy, we really wish we could’ve done it when we had the opportunity to.” Since research suggests that experiences bring more happiness than things, you’ll be boosting your bliss in the process. At the same time, proceed with caution on making big purchases, Hummel says. He’s seen retirees rush to buy second homes in places where they enjoy vacationing. But then they feel pressure to spend a lot of time there to justify their investment. This can lead to stress and marital discord, if one spouse wants to spend every vacation at the second home while the other wants to spend time with family members or explore new vacation destinations. A better bet? Use the 6% to 8% of the home’s value that you would spend in annual carrying costs on the second home and stay in a hotel or a short-term rental instead, Hummel says. If you and your spouse both still love the location after test-driving it for a few years, then you might be ready to buy. Make Some (Good) Friends Loneliness can damage your physical health as much as smoking, research indicates. Feeling alone may also contribute to your risk of developing dementia. (It’s thought that loneliness produces an inflammatory response in the body that’s similar to what an illness might produce.) To combat these health risks, you need “2am friends,” Lawrence says. Not to be mistaken for Facebook friends, “2am friends” are people who, as their name suggests, you can call in crisis in the middle of the night with the expectation that they’ll pick up and do their best to help. You need at least several of these friends and your spouse, while potentially a great source of support, only counts as one, Lawrence says. Affinity groups are a great way to develop close friends. Choose something you love to do, whether that’s reading or restoring old cars, and chances are there’s a group devoted to it near you. Check the web site Meetup.com for like-minded people. Volunteering is another great way to make friends; volunteermatch.org is a site that connects volunteers with worthy causes.

This is how long it takes to sell a house

by Kathryn Vasel @KathrynVasel November 27, 2017: 1:13 PM ET Three weeks. That's how long it takes to sell a home these days, according to the National Association of Realtors. Five years ago, the median number of days on market was 11 weeks. Low housing supply has pushed up home prices and created multiple offer situations and bidding wars throughout the country. "The inventory shortage and the growing economy and job creation has increased the interest in homebuying," said Lawrence Yun, chief economist for NAR. "There is just not enough inventory; people need to fight over the few homes available on the market." Historically, roughly 1.2 million new homes hit the market every year, he said, and so far this year, only 800,000 have been built. "It's been below that in prior years, and in the past decade greatly lower than that. Today's shortage is largely explained by a decade of underproduction." In some hot housing markets, three weeks is an eternity. "If we make it three weeks in our market, there is something wrong," said Darlene Umina, a real estate agent in the Boston area. "These days, you know within the first weekend whether the price was right." The median home price has shot up almost 9% in the past year to $561,300 in Boston, according to Zillow. John Kasprzyk sold his home in Waltham, Massachusetts, in September in less than a week. The home hit the market on a Wednesday and he had an all-cash, inspection-free offer that was $41,000 above his asking price before the end of the weekend. It was one of 11 offers he received. "We knew the market in that area was hot, but we didn't expect a cash offer to be this high," Kasprzyk said. "It was a big relief to walk away with equity." He purchased the home five years ago for $455,000 and sold it for $630,000. Across the country in San Francisco, one of the hottest markets in the country, real estate agent Erin Thompson has had buyers show up to an open house and hand her an offer. Offers well above the list price with no contingencies are common. "It can be very exhausting for buyers," she said. To be successful, house hunters need to be prepared with a loan pre-approval letter, know their budget and home must-haves and be ready to dedicate their weekends and evening to touring homes -- and battling crowds. Earlier this year, Umina hosted an open house where she had to stand outside to greet potential buyers because it was so packed. She ended up with 18 offers on that home, three were all cash. To help get their foot in the door, buyers in Denver have increasingly been adding escalation clauses to their offers, where buyers pledge to beat a competing offer up to a certain amount. Denver's market has been on fire recently, with home prices jumping more than 7% in the last year. Steve Thayer, owner of Keller Williams Action Realty in Denver, said he's sold more than a dozen homes in less that two weeks so far this year -- many of them going after one weekend. He's also gotten a few blind offers from buyers before they've even seen a home. "One of the challenges in this market is getting to Saturday [for the open house], he said. "People are begging to see the house early and before it's ready to show." CNNMoney (New York) First published November 27, 2017: 12:54 PM ET

For many, the rent is still too damn high

For many, the rent is still too damn high by Kathryn Vasel @KathrynVasel December 14, 2017: 12:04 PM ET Millions of Americans can't afford their rent. Nearly half of all renter households -- almost 21 million -- were considered cost-burdened in 2016, according to a new report from Harvard's Joint Center for Housing Studies. That means they pay more than 30% of their income to cover their housing, which includes utilities. Some renters are in an even tighter jam: 25% of renter households pay more than half of their income for housing. The good news is that the number off cost-burdened renters is dropping. In 2014, 21.3 million renters were shelling out more than 30% for housing. Losing such a big chunk of your paycheck to housing can have a long-term impact on savings and force tough spending decisions. It can also worsen inequality among renters, the report found. "It can mean trade offs for other areas of your budget, like food, health care expenditures or transportation," noted Jonathan Spader, a senior research associate at JCHS. The amount of money the lowest-income renters had left to spend after paying their housing dropped 18% from 2001 to 2016. The improving economy and rising wages have helped ease the cash crunch for some renters. But the influx of more high-income renters has also played role in the reduction. Affluent renters have driven almost 30% of renter growth in the past decade. In 2016, more than 18% of renter households earned at least $100,000 -- up from 12% in 2006. This shift, along with high building and land costs, has caused developers to focus on bringing more high-end units to market, which pushed up the median asking price for new apartments 27% between 2011 and 2016. That's left lower-income renters in a bind since the supply of affordable rentals for low- and moderate-income households has not kept up with demand. "We've seen fewer and fewer rental units available at lower price points," explained Spader. "There are two primary challenges, one is to expand the availability of rental assistance and the other is to find ways to increase the construction of new rental units that are made available at lower price points." The lower your income, the more likely you are to feel squeezed by your rent. Middle and low-income renters are the most likely to pay a disproportionate share of their income to cover rent, according to the study. Over the past 15 years, more than half of the growth in cost-burdened renters has been among those earnings less than $30,000. "As you move up the income spectrum the level of cost burden decreases," said Spader. "But the other trend that comes out is that the cost burden is the most severe at the lowest income levels." The number of renters earning between $30,000 and $45,000 paying at least 30% of their income jumped to 50% last year, up from 37% in 2001. It jumped to 23% from 12% for those earning $45,000-$75,000 Among those earning less than $15,000, 83% are considered cost burdened. Where you live can also play a role in how much of your paycheck is dedicated to housing. More than half of renters in California, Colorado, Florida, Hawaii and New York are housing cost burdened. Cities that have seen their population count pop have also seen rent prices soar. For instance, the median rent in Denver has increased at twice the national pace. The states with the fewest share of cost-burdened renters include Montana, North and South Dakota and Wyoming, the report found. CNNMoney (New York) First published December 14, 2017: 12:04 PM ET

Housing shortage: New report shows how California cities and counties stack up

By KATY MURPHY | kmurphy@bayareanewsgroup.com | Bay Area News Group PUBLISHED: February 1, 2018 at 3:34 pm | UPDATED: February 2, 2018 at 7:30 am SACRAMENTO — Nearly all the cities and counties in California — 97.6 percent — are failing to approve the housing needed to keep pace with population growth and will be subject to a new law that aims to fast-track development, according to a report released by the state Thursday. The state’s housing department released lists showing that more than 500 cities and counties are not on track to meet guidelines for the development of market-rate housing, affordable housing or both. Those jurisdictions will now lose the ability to reject certain types of development projects under legislation that was signed into law last fall. Only 13 cities and counties, including Foster City, Hillsborough, San Anselmo and Beverly Hills, made the grade. “When 97 percent of cities are failing to meet their housing goals,” the bill’s author, Sen. Scott Wiener, D-San Francisco, said in a statement Thursday, “it’s clear we need to change how we approach housing in California.” Senate Bill 35, which Wiener carried last year, kicks in when cities or counties lag behind on annual progress reports. It applies only to projects that comply with a city’s zoning rules, pay the prevailing wage, and ensure that at least 10 percent of the new units are affordable, or priced below market rate. (The prevailing-wage requirement only applies to projects with more than 10 units.) For cities such as Oakland, Berkeley, Fremont, Walnut Creek and San Jose — which met their market-rate housing goals but didn’t issue enough permits for affordable housing to stay on track — the law applies only to proposed developments in which at least half of the units are affordable, or below market rate. Others, including Menlo Park, Richmond, Santa Rosa, Carmel and Alameda and San Mateo counties, came up short on both market-rate and affordable development, which means the new law would apply to both kinds of projects. SB 35 aims to make the permitting process faster and less cumbersome in those areas, with the hope of boosting the housing supply and stabilizing soaring housing costs over time. The progress report was published by the California Department of Housing and Community Development, which is managing the new law’s implementation. The department found that 70.1 percent of all cities and counties fell short of the state’s guidelines for both market rate and affordable housing. Another 27.5 percent approved enough market-rate housing, but not enough affordable housing. California has set guidelines for development, measured by permits issued to builders, since 1969 in an effort to discourage cities from impeding growth. Those guidelines are set during 8-year cycles through the bureaucratically titled Regional Housing Needs Allocation, which housing policy wonks call RHNA (pronounced REE-na). Critics say the state lacks power to enforce the guidelines, however, and many cities lobby to have their goals reduced, or ignore them altogether. Wiener has a pending proposal, Senate Bill 828, to change how those numbers are set. The very short list of cities and counties that are on track to meeting the state’s affordable housing development goals was not a shock to Matt Schwartz, president CEO of the California Housing Partnership, a non-profit housing organization based in San Francisco. He believes the state needs to offer more rewards to local governments that are approving affordable housing projects — and perhaps withhold some transportation funding for those that don’t. “What’s the penalty if I don’t meet my RHNA affordable housing goal? What’s the incentive if I meet or exceed those goals?” he asked. “Not much.” Reporter Louis Hansen contributed to this story. These Bay Area cities and counties are failing to meet all of their housing goals — both market rate and affordable: Alameda County, Capitola, Carmel, Clayton, Concord, East Palo Alto, Emeryville, Hayward, Los Altos Hills, Martinez, Menlo Park, Mill Valley, Millbrae, Monterey, Moraga, Newark, Novato, Pacifica, Pinole, Pleasant Hill, Redwood City, Richmond, San Bruno, San Leandro, San Mateo County, Santa Cruz County, Sausalito, South San Francisco, Tracy, Union City, Vallejo The Bay Area cities and counties below are not issuing enough permits for affordable (below market rate) housing, but are on track to meet their goals for market-rate housing: Alameda, Albany, Antioch, Atherton, Berkeley, Brisbane, Burlingame, Campbell, Contra Costa County, Cupertino, Daly City, Danville, Dublin, El Cerrito, Fremont, Gilroy, Hercules, Lafayette, Los Altos, Los Gatos, Marin County, Milpitas, Morgan Hill, Mountain View, Oakland, Orinda, Palo Alto, Piedmont, Pittsburg, Pleasanton, San Francisco, San Jose, San Mateo, San Pablo, San Rafael, San Ramon, Santa Clara, Santa Clara County, Sunnyvale, Walnut Creek, Woodside Statewide, just 13 cities or counties are on track to meet both goals. They include Foster City, Hillsborough, San Anselmo, and Napa and Sonoma counties.

Housing in 2018: San Jose neighborhoods top the nation’s ‘hottest’ list

Housing in 2018: San Jose neighborhoods top the nation’s ‘hottest’ list SAN JOSE — More bad news for people house-hunting in the Bay Area: Of the 10 hottest neighborhoods in the country this year, according to the real estate website Redfin, nine are in the San Jose metro area. The last is in San Francisco. Redfin experts say that’s largely because tech workers, even very well compensated ones, are getting priced out of the San Francisco Peninsula. Others are drawn by new jobs from companies such as Google and Apple — or by Google’s plans to build a downtown campus around San Jose’s largest transit hub, Diridon Station. “While the San Francisco Peninsula has traditionally been the hottest of the hot places, we’re seeing it become unaffordable for even the tech giants that helped create its demand in the first place,” said Redfin Silicon Valley agent Kalena Masching. Start your day with the news you need from the Bay Area and beyond. Sign up for our new Morning Report weekday newsletter. Compared to Palo Alto, where the median sale price last year topped $2.5 million, and San Francisco, where the average home sold for $1.3 million, San Jose’s median home price of over $1 million (and rising) apparently looks like a deal. Topping the list is San Jose’s Bucknall neighborhood, where the median sale price last year was $1.57 million and 100 percent of homes sold for above list price. In recent weeks, Masching said, open houses have been swamped, homes have been getting 15 to 20 offers each, and people have taken off work to check out houses the moment they come on the market. She’s also noticed something else: “What we’re seeing is a disregard for recent comparable sales and people deciding what the home is worth to them and just giving that as their offer.” The demand for real estate in the South Bay has been well documented; late last year, Zillow predicted the San Jose metropolitan area would be the hottest housing market in the country in 2018. But that it landed nine neighborhoods out of 10 on Redfin’s latest list surprised even Redfin economist Nela Richardson. The interest, she said, is fueled by a lack of housing supply throughout the Bay Area — and “speculative interest” in Google’s expansion. “Basically Google’s just extending its tentacles,” Richardson said, “and yet it’s having a dramatic effect on one city.” Redfin created the list based on the increase in the number of homes marked as “favorites” in each area and the number of page views on Redfin.com. As Redfin noted, this further uptick in interest will only put more pressure on the housing market. In December, the San Jose area had the lowest rate of homes per sale that Redfin had ever recorded — anywhere in the country — and its home prices rose a whopping 31.9 percent from the previous year. With two neighborhoods on the list, San Jose’s prominence was worrisome to the city’s mayor, Sam Liccardo. “We typically would welcome being on a top 10 list of hottest anything,” Liccardo said, “but in this case our housing market has been plenty hot for plenty long enough, and we need to get about the business of cooling the market by building the supply that’s needed for the thousands of families who are struggling to survive.” REDFIN’S 2018 HOTTEST NEIGHBORHOODS LIST 1. Bucknall (San Jose) Median sale price (Dec. 2017): $1,565,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 23.8 percent 2. Cambrian (San Jose) Median sale price (Dec. 2017): $1,244,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 18 percent 3. White Oak (Campbell) Median sale price (Dec. 2017): $1,010,000 Percent of homes that sold above list price (Dec. 2017): 66.7 percent How much above list price: 5.7 percent 4. Ortega (Sunnyvale, San Jose metro area) Median sale price (Dec. 2017): $1,920,000 Percent of homes that sold above list price (Dec. 2017): 100 percent How much above list price: 16.5 percent 5. West Santa Clara (San Jose metro area) Median sale price (Dec. 2017): $1,237,500 Percent of homes that sold above list price (Dec. 2017): 90.3 percent How much above list price: 16.1 percent 6. Sunnyvale West (San Jose metro area) Median sale price (Dec. 2017): $1,945,000 Percent of homes that sold above list price (Dec. 2017): 91.3 percent How much above list price: 18.3 percent 7. Lakewood (Sunnyvale, San Jose metro area) Median sale price (Dec. 2017): $1,200,000 Percent of homes that sold above list price (Dec. 2017): 92.3 percent How much above list price: 21.3 percent 8. Sunnyside (San Francisco) Median sale price (Dec. 2017): $1,272,500 Percent of homes that sold above list price (Dec. 2017): 89.5 percent How much above list price: 25 percent 9. Blacow (Fremont, San Jose metro area) Median sale price (Dec. 2017): $1,005,000 Percent of homes that sold above list price (Dec. 2017): 91.7 percent How much above list price: 9.4 percent 10. Rex Manor (Mountain View, San Jose metro area) Median sale price (Dec. 2017): $1,500,000 Percent of homes that sold above list price (Dec. 2017): 83.9 percent How much above list price? 14.4 percent Source: Redfin

Homeowners: Here's what's in the tax bill for you

Homeowners: Here's what's in the tax bill for you by Kathryn Vasel @KathrynVasel Republicans on Friday unveiled the final version of their tax bill, and it has new restrictions for some homeowners. Senate and House Republicans have reconciled their versions of tax legislation and the final plan shrinks some popular deductions. Lawmakers aim to vote on the bill next week and then send it to President Trump's desk. Here's a look at what the changes could mean for future and current homeowners: Downsized mortgage interest deduction New homebuyers would now only be able to deduct interest on the first $750,000 of mortgage debt on a newly-purchased home. That's down from the current $1 million threshold, but higher than the $500,000 limit the House proposed in its tax overhaul in November. Current homeowners would not be affected by the lower cap. The deduction has helped make home buying more affordable for some homeowners. While the median home price nationwide is currently $254,000, buyers in some cities face much higher price tags. The lower limit could make it harder for house hunters in expensive cities. For instance, in New York City, nearly 64% of mortgages on homes sold this year were over $750,000, according to data from ATTOM Data Solutions. And in San Francisco, 58% of home loans exceeded the new cap. Some experts worry the increased threshold could keep people from selling their homes, which could squeeze the already short supply of housing. "The mortgage interest deduction change will put downward pressure on prices as well as sales," said Joe Kirchner, senior economist at Realtor.com. Current homeowners might hesitate to trade up to a more expensive house if the price tag is too high to take full advantage of the deduction. The new cap would also apply to mortgages on second homes. The original House bill wanted to eliminate the deduction on second homes. Less reason to itemize Homeowners must itemize their taxes if they want to claim the mortgage interest deduction. But since the final bill calls for nearly doubling the standard deduction, far fewer Americans are expected to itemize come April. "In my generation, before we had a home we took the standard deduction, but as soon as we bought a home we started itemizing because that mortgage interest deduction was so significant," said Kirchner. "Now with the higher standard deduction very few people will itemize. It will virtually eliminate the deduction on a practical level." The final tax bill also eliminates the deduction for interest on home equity loans. Currently that's allowed on loans up to $100,000. Limit on property tax deduction Taxpayers will no longer be able to fully deduct state and local property taxes plus income or sales taxes. Instead, the legislation allows individuals to deduct up to $10,000 in state and local income and property taxes or state and local property and sales taxes. That means homeowners living in high-tax states like New York, California and New Jersey could see an increase in what they owe Uncle Sam in April. Nationwide, 4.1 million Americans pay more than $10,000 in property taxes, according to data from ATTOM Data Solutions. Tax break stays for home sellers Both the House and Senate bills originally wanted to scale back a tax break for homeowners when they sell their home for a gain. Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they've lived there for two of the past five years. Earlier tax reform proposals would have increased the live-in requirement to five out of the last eight years. CNN's Lauren Fox and Phil Mattingly contributed. CNNMoney (New York) First published December 17, 2017: 12:17 PM ET

3 ways tax reform will hit home values

Real Estate Special Report by Kathryn Vasel @KathrynVasel January 10, 2018: 12:49 PM ET The recent surge in home values could slow thanks to the freshly passed tax overhaul. Sweeping tax legislation was signed into law by President Trump at the end of 2017, and experts said some of the changes, including a lower threshold on the mortgage interest deduction, a cap on the state and local deduction and a higher standard deduction, could be a drag on home appreciation. "In a way, the federal government is extracting itself of its encouragement of home ownership," said Jonathan Miller, president of real estate appraisal firm Miller Samuel. The hit to home prices will depend on location. "There are clear winners and losers," said Adam Kamins, senior economist at Moody's Analytics. "States in the Northeast and along the coasts are hit pretty hard, and states in the South and Mountain West come out ahead." Home prices nationwide are expected to be around 4% lower over the next 18 months compared to where they would have been absent any tax changes, according to report from Moody's Analytics. But that 4% decrease will be unevenly distributed. Homeowners in high-taxed states and expensive housing markets could face the brunt of the impact thanks to the scaled-backed deductions on mortgage interest and property taxes. For example, home prices in Westchester County, a New York City suburb, and Essex County in New Jersey, could be 11% below where they would have been without the tax legislation, according to Moody's. In Manhattan, New York, and Lake County, Illinois, the difference could be a 10% decline. Here are a few forces that could drive down home prices: 1. Lower mortgage interest deduction could keep high-end buyers on the sidelines The new tax law, which is now in effect, lowers the amount of interest on mortgage debt that can be deducted to $750,000 -- down from $1 million. That makes it more costly for buyers of expensive homes to borrow. Plus, the mortgage interest deduction is less valuable under the new tax code. In order to take the deduction, homeowners must itemize. But because the standard deduction has increased to $24,000 for couples, fewer people are expected to. The smaller cap means only 14.4% of homes are worth enough to make itemizing advantageous, according to Zillow. Shrinking tax breaks could force sellers to factor that into their asking price. ... and sellers reluctant to sell The lower cap applies to new mortgages. That means mortgages closed before December 15, 2017 are subject to the old $1 million threshold, which could mean homeowners with mortgages above $750,000 have less incentive to trade up to a bigger home, adding more pressure to the already tight housing supply. 2. Property tax cap makes buying less attractive The new tax law also places a $10,000 cap on the amount of state and local property taxes -- plus income or sales taxes -- filers can deduct. Real estate agents in high-taxed markets frequently tout the ability to write off property taxes to potential buyers. But that selling point won't be as strong as it used to be. More than four million Americans pay more than $10,000 in property taxes alone, according to ATTOM Data Solutions. In some counties, more than half of residents pay at least that much. In Westchester County, 73% of homeowners pay above the new cap in property tax, according to ATTOM. "By setting a $10,00 cap nationwide, you are placing high-cost markets on the same plane as low or middle-cost markets," said Miller. "Every homeowner has a dollar amount they can afford or want to spend on a purchase. The more these other costs rise, the less room there is for payment of principal and interest." 3. Home loans could get more expensive Experts also worry that adding an influx of cash through tax cuts while the economy is at full employment could increase inflation pressure, which may lead the Federal Reserve to increase interest rates, sending mortgage rates higher. Mortgage rates have been sitting below 4% since mid July, which has helped offset the rise in home prices. But if rates move higher, borrowing becomes more expensive, putting high-cost homes out of reach for many buyers. CNNMoney (New York) First published January 10, 2018: 12:49 PM ET

Why you want Amazon to be your new neighbor

by Kathryn Vasel @KathrynVasel January 24, 2018: 1:09 PM ET Amazon has narrowed down its hunt for a second home to 20 locations. And the chosen city is likely to get an economic jolt -- particularly to its housing market. The company announced in September that it plans to open a second corporate headquarters, and a nationwide bidding war soon broke out. Some cities offered massive tax breaks, while others got creative with their courtship. Tucson, Arizona, sent a giant cactus to CEO Jeff Bezos and one Georgia town pledged to name an area "The city of Amazon (AMZN)." The second headquarters is expected to cost at least $5 billion and create as many as 50,000 high-paying jobs -- no wonder cities rushed to lay out the welcome mat. The selected city will get an immediate boost to jobs and wages, said Javier Vivas, director of economic research for Realtor.com. It will also push up home prices and lead to new home construction in neighborhoods within commuting distance from the headquarters location, he added. When a big company moves into a new town it tends to have a ripple effect on the local economy: job creation strengthens, some wages increase and home prices rise. Just look at what happened in Reno, Nevada, after Tesla opened a massive battery factory: Home prices have soared 43% since the fall of 2014, following the start of construction on the Gigafactory, according to Daren Blomquist, senior vice president of communications at ATTOM Data Solutions. The same phenomenon occurred when Apple moved its headquarters to a new location in its home city of Cupertino, California. In the three years following the project's approval, homes located within a mile of the new campus appreciated three percentage points faster, on average, than the rest of the county, according to Realtor.com. Just how much home prices will rise in Amazon's chosen city will depend on a variety of factors: the existing inventory, recent home price performance, demand and the space available for new construction. Of the 20 cities, those that have seen more modest home price growth than others on the list stand to gain the most, according to Blomquist. He pointed to Pittsburgh, Indianapolis and Columbus, Ohio, as the markets that could see the biggest gains. "The impact in markets where there has been single-digit appreciation ... we could see a jump, at least in the short term, to double digits of 10%-20% or even more appreciation for the first year," he said. In places where housing is already in limited supply and building regulations are prohibitive -- like New York and Boston -- home values could rise even more with a surge of new residents to staff the new headquarters. For instance, home prices in Boston have jumped 8.4% in the last year to a median home value of $568,300, according to Zillow. If Boston becomes the new home of Amazon, it would be "chaos," according to Fernando Ferreira, an associate professor at Wharton School at the University of Pennsylvania. "The housing market would be three times worse than it already is," he said. Markets with existing inventory and space and fewer obstacles to building will be able to more easily handle the need for new home construction, experts said. The big winners in the chosen city will be current homeowners who will likely see their home appreciation rise when Amazon moves in. "If you are in a larger house and ready to downsize or move, this will be a pure gain for you," said Stijn Van Nieuwerburgh, professor of finance and director of the Center for Real Estate Finance Research at New York University Stern School of Business. Another indirect advantage for the winning city: Rising home values will likely to lead to higher property taxes, which could help boost a city's budget and services. "As property taxes and revenues go up, that can go to schools and improve their quality and better fund programs ... and infrastructure," said Van Nieuwerburgh. Related: In booming economies, food banks are busier than ever On the downside, a big jump in home prices means renters or wanna-be homeowners in the selected city could lose out, potentially forcing some long-time residents out of the city. "If you are a first-time homebuyer in the selected city, this is bad news," said Van Nieuwerburgh. "Property prices will go up and you will have to borrow more." CNNMoney (New York) First published January 20, 2018: 11:04 AM ET

To-Dos: Your February Home Checklist

Keep your home fresh and organized this month while you plan for warmer days ahead Laura Gaskill February 1, 2018 Houzz Contributor. I cover topics ranging from decorating ideas, product picks, Houzz... 1. Rotate your mattress. Before you put on a fresh set of sheets, take an extra minute to rotate the mattress if you haven’t done so recently. Rotating your mattress every few months will help it wear more evenly and extend its life (and comfort). 2. Pack up a bag of old sheets and towels to donate. If you bought new sheets or towels during January white sales, make some room by letting go of an old set or two. Homeless shelters and some churches will accept donations of bedding and towels in good condition, and animal shelters are often in need of towels. Really worn linens can be cut up and used as rags or dropped in a textile recycling bin. 3. Clean entryway floors. If winters are cold where you are, road salt and melting snow can mean entryway floors take a beating. Pick up clutter and give the floors a good mopping. To keep floors looking their best between cleanings, stash a few old towels in a basket near the door to wipe up messes. 4. Keep sidewalks and entryways free of ice and snow (even while you’re away). Ice and snow can make walkways dangerous for visitors. Aim to shovel snow promptly, and sprinkle gravel, straw or wood chips to provide traction. Frequent, light shoveling is better than letting the snow build up. And if you plan to be out of town during an expected winter storm, hire someone to clear the sidewalk and front steps of your home while you’re away. Your neighbors and mail carrier will thank you. 5. Cook to stock up your freezer. A few hours of cooking on a weekend can produce major dividends if you focus your efforts on big-batch suppers that can be frozen and reheated later. Knowing that you have homemade soup, stew, chili or casseroles in the freezer makes facing weeknight dinners much less stressful. Just add crusty bread and a simple salad and dinner will be ready in no time. 6. Organize bookshelves. Pull out volumes that you didn’t enjoy or are finished with and sell or donate them, leaving a bit of extra room on each shelf for new titles. And if you get distracted by beloved old books you had forgotten about, just roll with it. After all, there are few better places to spend a winter afternoon than in a comfortable chair with a good book. 7. Refresh your movie-watching zone. Winter is a good time to catch up on movies you missed in the theater or to binge-watch your favorite shows. So why not make your movie-watching zone as comfy and cozy as possible? Start by vacuuming the floors and upholstery (using a vacuum attachment) and by clearing away clutter. Next, assess your collection of movies and games, donating extras to charity. Finally, make sure there are plenty of comfortable pillows and throws and lighting that can be dimmed. 8. Boost warmth. Stay toasty and save on energy bills by blocking drafty doors with door sweeps or door snakes and warming up with rugs, throws and duvets. For even more energy savings, shut doors to unused rooms, move furniture away from heating vents and close the chimney flue when it’s not in use. 9. Check bathrooms for moisture, mildew and mold. It can be hard to give bathrooms enough ventilation when the house is closed up tight for winter. Unfortunately, that buildup of moisture can lead to mildew or even harmful mold. Give the bathroom a thorough cleaning, paying special attention to grout, the ceiling and any other areas showing signs of excess moisture. 10. Clean the dryer vent (and check for blockages outside). Having the buildup of lint cleaned from your dryer vent at least once a year is essential to keeping your dryer working efficiently and preventing a potential dryer fire. In winter, snow can block the exterior vent, so take a walk outside your home to inspect the vent and remove snow or debris if needed. 11. Start planning for a spring or summer home sale. If you’re considering putting your home on the market this year, it’s a good idea to start the process now. Set a timetable, interview potential real estate agents and make a list of projects that need to get done to help your home show well. 12. Indulge in weekly fresh flowers. With Valentine’s Day happening this month, the markets will be filled with fresh flowers at good prices. Treat your home to a bouquet of fresh-cut blooms once a week to add a little cheer — spring may still be a ways off, but that doesn’t mean your dining table can’t look like a garden in bloom!

Familiar San Carlos dining spot to close after 34 years

For Depot Cafe, it’s all about family Familiar San Carlos dining spot to close after 34 years By Anna Schuessler Daily Journal staff Feb 2, 2018 Updated 2 hrs ago 3 Mary Noviscky, owner of San Carlos’ Depot Cafe, serves customers in the restaurant’s final days. Slated to close Feb. 18 after 34 years at its location at the San Carlos train station, the restaurant has suffered in recent months amid construction of a new transit center. Anna Schuessler/Daily Journal After 34 years hosting meetings between friends, family breakfasts, lunch breaks for nearby workers and even parties to mark the end of soccer season, San Carlos’ Depot Cafe owner Mary Noviscky is ready to hang up her apron. With her business situated in the city’s historic train station next to its Caltrain platform, Noviscky, a Redwood City resident, has become accustomed to mornings starting when she arrives at 5:15 a.m. to open the doors of her restaurant at 599 El Camino Real by 6 a.m. She’s learned customers’ names, remembered their breakfast and lunch orders and knows by heart the ebbs and flows of the seemingly endless stream of customers walking into her restaurant over the years. The Depot Cafe will be closing after 34 years at the historic San Carlos train station. Owner Mary Noviscky said her patrons have been hard pressed to find parking near her business as a new transit center has gone up adjacent to her business. So in the days since the Daily Journal reported she is closing her restaurant Feb. 18, she’s been navigating a range of emotions alongside her customers, from shared sadness to joy in the many memories they have shared. “It’s a hectic busy,” she said, adding that some customers have fought tears upon learning about her business’ closure. “It was very hard for me to make this decision and give up.” A self-described people person, Noviscky said the loyalty and support of her customers have sustained her in her 45-year career in the restaurant industry. But despite their kindness, recent changes to her business’ parking as a new transit center has gone up adjacent to the historic building in the past year are among the many challenges her business has struggled to overcome lately. Losing six of the 12 parking spots previously available to her patrons and asking them to walk a short distance from the new lot to her restaurant have proven to be a deterrent for many, especially those with disabilities or other health issues, said Noviscky. Aimed at providing commuter parking and designated drop-off zones for multiple modes of transportation, construction of the San Carlos Transit Center has been managed by SamTrans. The project has been in the works alongside a 202-apartment, eight-building project dubbed the San Carlos Transit Village for several years since the housing development was approved in 2013. Though SamTrans spokesman Dan Lieberman said previously the agency has worked to protect the business from the impact of construction by reducing rent and ensuring the restaurant had the closest available spots during construction, Noviscky said the reduction in rent from $2,600 to $2,500 did not sufficiently address the complications she’s faced as a result of the construction. She added that a seven-year stretch on a month-to-month lease hasn’t helped ease her concerns about the future of her business. Noviscky said selling the business to an interested buyer last year proved untenable when officials said the new owner would have to sign a month-to-month lease and would be first in line to be considered when the property goes to bid when construction is complete in some two years, giving them no guarantee they could still operate the business after construction. Lieberman said officials felt it was appropriate to keep the lease month-to-month until the end of construction so it could be renegotiated when all parties had a better understanding of the new normal and that whoever the new tenant is will have to respect the building’s status as a historical preservation site. Though Noviscky’s heartbreak in closing her business is still fresh, she has wondered what her and her family’s lives will be like once they don’t have the business they have poured hours into setting the structure of their days. Her daughters, Sepeedeh Noviscky-Williams and Setareh Noviscky, have worked at the restaurant since they were teenagers and her husband Mike Noviscky, a retired electrical engineer, has invested countless hours in the business as well. She said patrons have come to appreciate seeing familiar faces every time they come in and over the years have shared their lives with her family as well. “It’s a good feeling because people love to go to a family business,” she said. “We are always here. They see them really grow up.” Though San Carlos resident Sandy Hoffman could remember clearly when the restaurant opened and became a morning stop for her on her way to work, the trips she and her son Sean Hoffman made after Sunday mass with family or for end-of-year soccer parties with teammates are what stand out most. “Everyone knew the Depot Cafe,” said Sandy Hoffman. “There’s really no other place like this.” When Mary Noviscky came to the United States from Iran to pursue a master’s degree some 45 years ago, jumping into the restaurant business wasn’t exactly what she had in mind. She said she had spent just two months working at the Sky Kitchen Cafe at the San Carlos Airport when she learned the owners were looking to sell their business, an opportunity she and her brother took when they purchased the business in 1972. Some 10 years later, she opened the Depot Cafe, a venture that has kept her family busy even after they sold the airport cafe some seven years ago. “All of us worked seven days a week until now,” she said. Though Setareh Noviscky is pained to see a business her mother dedicated so much of her life come to a close the way it did, she said the prospect of her mother getting some time off brings her relief, noting she quit a corporate job to work with her mother four years ago. She said seeing new customers who had always been meaning to try the restaurant come in or those who hadn’t come by in the past few days has been heartwarming. “It’s bittersweet,” she said. “The sweetness is we have our entire community coming in.” Though Noviscky already has dedicating more time to her real estate business in sight once the restaurant closes, she’s also looking forward to spending more time with her family and her 92-year-old mother to cap off more than 45 years serving others. “I think it’s time for retirement,” she said. anna@smdailyjournal.com (650) 344-5200 ext. 102

Utility Box Mural Project

Date Issued: January 25, 2018 Application Deadline: March 9, 2018 at 5:00 p.m. The City of San Carlos and its Parks, Recreation and Culture Commission invite artists to participate in the City’s Utility Box Mural Project for 2018. We are seeking artists to showcase their work on this project to paint six utility boxes located throughout San Carlos. The goals of the project are to enhance the beauty and vibrancy of San Carlos, deter unsightly graffiti on utility boxes, and bring art to unexpected places. Please download and read the Call for Local Artists and Attachment A for details regarding this project, including the application requirements. If you plan to submit your artwork proposal, please complete and submit the following paperwork prior to the deadline: Application Design Template You may also obtain these documents by e-mailing publicart@cityofsancarlos.org, or picking them up at the Parks & Recreation Office at City Hall, 600 Elm Street, during office hours. Art-Active Art-Hands Art-Welcome to San Carlos Art-Deer CONTACT US publicart@cityofsancarlos.org (650) 802-4421 FIND US 600 Elm Street San Carlos, CA 94070 CONTACT US Phone Directory webmaster@cityofsancarlos.com

What happened to the luxury market in 2017?

Luxury homes stayed on the market for an average of 116 days -- nearly double the time for lower-priced homes BYMARIAN MCPHERSON Staff Writer JAN 4 Although inventory at the luxury level has remained robust in the midst of a shortage at the mid- and lower- priced tiers, realtor.com says that didn’t translate into extra sales during 2017. In fact, the average luxury property stayed on the market for 116 days — a 5.3 percent year-over-year increase from 2016. Furthermore, the national luxury entry point increased 5.1 percent year-over-year to $804,000, while the national median sales price grew 1.8 percentage points more to 6.9 percent. Realtor.com director of economic research Javier Vivas says despite these stats, 2017 was a great year for buyers shopping at the higher end of the market. “Although 2017 was another strong year for the luxury housing market, it was outperformed by the U.S. market overall,” said Vivas in an emailed statement. “Age of inventory in the top 5 percent of the market slowed significantly over last year — a telltale sign that the luxury sector as a whole has weakened. Much of this slowing can be attributed to a wider selection of luxury homes for buyers and increased uncertainty over the last 12 months.” At the local level, luxury markets in California, Colorado, Hawaii and New York have fared exceptionally well over the past year with double-digit price gains. Maui (32.73 percent); Eagle, Colorado (31.49 percent); Kings, New York (30.33 percent); Kauai (25.11 percent); Hawaii (24.84 percent) and Honolulu (21.79 percent) counties all experienced home price growth above 20 percentage points, resulting in average home prices ranging from $1,753,158 to $2,485,125. Brooklyn; Seattle; and Marin, California in the Bay Area also posted 12 percent to 30 percent growth year-over-year, landing them in the top 10 fastest growing primary-home luxury markets in country, thanks to new development sales and increased demand from Chinese buyers. When it comes to the highest sales prices, New York tops the list with a median sales price of $5,284,197 — a whopping $1,913,509 more than the second most expensive market, San Mateo, California. California dominated the list, snagging half of the top 10 spots thanks to multi-million dollar asking prices in Marin ($3.28 million), San Francisco ($3.21 million), Santa Clara ($2.58 million) and Santa Barbara ($2.47 million). Looking forward to 2018, realtor.com says owners of these lavish properties need to keep an eye on the Tax Cuts and Jobs Act, which caps mortgage interest deductions at $750,000 and doesn’t allow homeowners to deduct the interest paid on vacation homes. Furthermore, buyers in high-tax states such as New York and California will also have to grapple with choosing between property taxes and state and local taxes, says realtor.com, since SALT (state and local tax) deductions have been limited to $10,000.

Strong jobs report offers glimmer of hope for inventory relief

Residential construction adds 30,000 jobs in December BYMARIAN MCPHERSON Staff Writer JAN 5 Although the inventory shortage has continued to rage on, the Employment Situation Summary for December 2017 from the U.S Bureau of Labor Statistics (BLS) shows there could be some relief on the way. The report shows that total nonfarm payroll employment rose by 148,000 jobs last month and that the market experienced continued robust growth in manufacturing, healthcare and construction. Source: U.S. Bureau of Labor Statistics The unemployment rate is at 4.1 percent, and the number of unemployed persons at 6.6 million, which is unchanged from October’s and November’s report. The real estate and housing industry is especially focused on the construction sector, which has steadily grown since Hurricanes Harvey, Maria and Irma in August, added 30,000 jobs in December and increased by 210,000 in 2017. Although some economists are hopeful about the steady growth, others aren’t sure that it’s enough to reach the 50-year average of 1.5 million residential construction starts. Realtor.com chief economist Dr. Joesph Kirchner said, “November’s increase in construction labor is a hopeful reminder that things will eventually get better for our severely depleted housing market. In fact, if this trend gains momentum, it could address one of the largest issues holding back inventory — a lack of construction labor. ”Let’s hope it does, because the report also shows no end in sight for the insatiable demand we’re seeing in the market,” he added. “Jobs drive housing demand and with the unemployment rate remaining at its lowest level of the millennium, it’s only going to pick up.” National Association of Realtors chief economist Lawrence Yun was underwhelmed by the report, saying that much more explosive growth is needed to make a change. “With the unemployment rate in the construction industry having fallen from over 20% in 2010 to 5.9% at the year-end of 2017, there could be a little growth to home construction despite the on-going housing shortage,” said Yun in an emailed statement. “There needs to be serious consideration in allowing temporary work visas until American trade schools can adequately crank out much needed, domestic skilled construction workers.” Chief economist at Fannie Mae Doug Duncan also weighed in, saying, “The lack of wage acceleration should support gradual monetary policy normalization. However, we anticipate a pickup in wage growth this year, which could lead to a rise in the working-age labor force participation rate. “And if the tax bill can incite stronger growth in capital expenditures and productivity, keeping labor costs contained, the Fed could still afford to be patient with its tightening. “One bright spot we saw in the report is the biggest monthly rise in residential construction employment in 2017, raising hopes for some supply relief for housing this year.”

Number of US renters declines for first time in 13 years

May be an anomaly as aging baby boomers and millennials are expected to drive new growth in the market BYJOTHAM SEDERSTROM Staff Writer JAN 5 The nation’s population of renters, a third of American households, decreased modestly for the first time in 13 years as declining foreclosure rates and steadily rising rent helped reduce the number to 43 million in the first half of 2017, down by about 500,000, according to a report by apartment listing service Abodo. The decline, ushered in by first-time homebuyers and historically low mortgage rates, comes as the national median rent for a one-bedroom apartment increased by 2.4 percent in 2017, to $1,040, according to an Adobo. Two-bedroom apartments, similarly, increased by 3 percent, to $1,252, according to the report. Overall, rent spiked in 28 states, with New Orleans, Reno, Honolulu and Seattle all experiencing increases of more than 2 percent, and New Orleans, in particular, seeing a 4-percent bump. “Two-bedroom rents exhibited similar stability through the first quarter before more sharp increases in the second,” according to the authors of the Abodo report, released on Wednesday. “After a pause in the late summer and early autumn, two-bedroom rents, like one-bedroom rents, saw their greatest hikes in the last three months of the year.” Foreclosure rates, meanwhile, hit an 11-year low in the third quarter of 2017, an indication that fewer homeowners were moving — reluctantly, perhaps — to rental units upon losing property. Despite rising rental rates, the decline in renters in 2017 may be an anomaly, according to a separate report issued Tuesday by the Joint Center for Housing Studies of Harvard University. Rental households are projected to grow by 13.6 million between 2015 and 2025 as aging baby boomers and millennials drive new growth in the market, according to the Harvard study. “Over the next 10 years, the younger half of the millennial generation — the largest generation in U.S. history — will move into their 20s and 30s, the age groups most likely to rent,” wrote the authors of the study. “In addition, minority households are expected to account for nearly three-quarters of household growth in 2015–2025 and fully 90 percent in 2025–2035.”

Realtors, homebuyers are confident in today’s real estate market

Realtors in 37 states expect buyer traffic to be "strong" in 2018 BYMARIAN MCPHERSON Staff Writer JAN 5 Association of Realtors (NAR) today released the results of the Realtors Confidence Index (see report below), which measures NAR members’ expectations for the housing market over the next six months on a scale of 1-100. Source: National Association of Realtors According to the results, Realtors are confident about what the first half of 2018 will bring, especially when it comes to the sales pace for detached, single-family homes. Respondents in 36 states expect the sales pace to be “strong” (60+ points), while respondents in four states (Oklahoma, Illinois, West Virginia and Connecticut) only expect the market to be “stable.” The only state to receive a “weak” (50 points or less) rating was Alaska. Meanwhile, realtors in Washington, Nevada, Nebraska, Wisconsin, Kentucky, Tennessee, South Carolina, Delaware and Rhode Island expect their market to be “very strong” (75+ points) in 2018. When it comes to the sales pace for townhomes and condominiums, the outlook remains relatively robust with respondents in 41 states also expecting the 12-month outlook to be “stable” to “very strong” for townhomes, and respondents in 16 states expecting the 12-month outlook to be “strong” for condos. Will it be a buyer’s or seller’s market? Thanks to continued inventory issues, economists and real estate experts alike are predicting that 2018 will be a seller’s market, giving homeowners pricing leverage in a landscape with weak residential housing starts. Sixty-nine percent of respondents expect home prices to grow over the upcoming year, with the highest home price growth in the West and Southeast. Realtors in Florida, Maryland, Colorado, Nevada, Arizona and Washington expect home prices to skyrocket anywhere from 4 percent to 6 percent. Meanwhile, survey takers in Alaska, North and South Dakota, Oklahoma, Iowa, Illinois, Missouri, Louisiana, Mississippi, Vermont and Connecticut expect home prices to remain essentially unchanged with 0 percent to 2 percent growth. Furthermore, respondents said homes have been selling, on average, within 40 days and at a 31-percent premium. Despite these factors, Realtors expect buyer demand to remain robust over the next twelve months, echoing studies about millennials finally entering the homebuying market and buyers of all ages taking advantage of jobs and wage growth. The buyer traffic index is at 62, meaning that most Realtors expect buyers to continue vying for their dream homes. Respondents in 37 states expect buyer traffic to remain “strong,” and another seven states are expected to be “stable.” Buyer traffic in the Dakotas, Alaska, Louisiana and West Virginia is predicted to be “very weak” or “weak.” Delaware is expecting to have a knockout year. Realtors are still wary about the effects of low inventory and the tax reform bill, which includes changes to the mortgage interest deduction, state and local tax (SALT) deductions and capital gains taxes.

Landlords starting to accept digital currency for rent

On both coasts, companies are beginning to accept bitcoin, ethereum, and other popular digital cryptocurrencies to appeal to younger renters BYGILL SOUTH Staff Writer JAN 4 Forget cutting checks to pay for rent. On both coasts, several tech-forward real estate companies have begun accepting digital currency for rental deposits and payments, coinciding with the growing general interest in, and value of, these new electronic payment systems. On the West Coast, Hubilu Venture Corporation, a real estate asset management company which buys student housing and investment property around the University of Southern California (USC) campus, announced today it will accept rental payments in bitcoin, ethereum, bitcoin cash and litecoin–all popular digital currencies. Hubilu said it would use the Coinbase digital currency exchange for processing the cryptocurrency in their “respective blockchains.” Blockchains are the computer-based ledgers that record who owns how much of a given cyptocurrency, and keep a running tally of transactions made with each currency. Hubilu CEO, David Behrend, said in a press statement that, “we know the importance of digital payment systems and believe in the long term adoption of cryptocurrency.” Meanwhile across the country in Brooklyn, New York, tech-savvy brokerage Brookliv has begun accepting bitcoin for rental deposits, according to science and tech publication Inverse. The company reportedly has been accepting digital currency rental payments from three tenants already. Brookliv broker Ari Weber told Inverse that his company made the decision to accept payment via digital currency to appeal to his young rental base and as a way to stand out in a crowded market. Inverse also flagged that online rental payment platform, ManageGo is accepting bitcoin and other cryptocurrency for rent payments, although it is taking on the responsibility of converting the cryptocurrency into US dollars before putting it into property manager client accounts. Will other brokerages, landlords, and property holding companies follow suit in accepting digital currency for rent? That remains to be seen, but it’s probably a safer bet than buying into the currencies themselves.

Realtors, homebuyers are confident in today’s real estate market

Realtors in 37 states expect buyer traffic to be "strong" in 2018 BYMARIAN MCPHERSON Staff Writer JAN 5 The National Association of Realtors (NAR) today released the results of the Realtors Confidence Index (see report below), which measures NAR members’ expectations for the housing market over the next six months on a scale of 1-100. Source: National Association of Realtors According to the results, Realtors are confident about what the first half of 2018 will bring, especially when it comes to the sales pace for detached, single-family homes. Respondents in 36 states expect the sales pace to be “strong” (60+ points), while respondents in four states (Oklahoma, Illinois, West Virginia and Connecticut) only expect the market to be “stable.” The only state to receive a “weak” (50 points or less) rating was Alaska. Meanwhile, realtors in Washington, Nevada, Nebraska, Wisconsin, Kentucky, Tennessee, South Carolina, Delaware and Rhode Island expect their market to be “very strong” (75+ points) in 2018. When it comes to the sales pace for townhomes and condominiums, the outlook remains relatively robust with respondents in 41 states also expecting the 12-month outlook to be “stable” to “very strong” for townhomes, and respondents in 16 states expecting the 12-month outlook to be “strong” for condos. Will it be a buyer’s or seller’s market? Thanks to continued inventory issues, economists and real estate experts alike are predicting that 2018 will be a seller’s market, giving homeowners pricing leverage in a landscape with weak residential housing starts. Sixty-nine percent of respondents expect home prices to grow over the upcoming year, with the highest home price growth in the West and Southeast. Realtors in Florida, Maryland, Colorado, Nevada, Arizona and Washington expect home prices to skyrocket anywhere from 4 percent to 6 percent. Meanwhile, survey takers in Alaska, North and South Dakota, Oklahoma, Iowa, Illinois, Missouri, Louisiana, Mississippi, Vermont and Connecticut expect home prices to remain essentially unchanged with 0 percent to 2 percent growth. Furthermore, respondents said homes have been selling, on average, within 40 days and at a 31-percent premium. Despite these factors, Realtors expect buyer demand to remain robust over the next twelve months, echoing studies about millennials finally entering the homebuying market and buyers of all ages taking advantage of jobs and wage growth. The buyer traffic index is at 62, meaning that most Realtors expect buyers to continue vying for their dream homes. Respondents in 37 states expect buyer traffic to remain “strong,” and another seven states are expected to be “stable.” Buyer traffic in the Dakotas, Alaska, Louisiana and West Virginia is predicted to be “very weak” or “weak.” Delaware is expecting to have a knockout year. Realtors are still wary about the effects of low inventory and the tax reform bill, which includes changes to the mortgage interest deduction, state and local tax (SALT) deductions and capital gains taxes. About the survey The RCI Survey gathers information from Realtors about local market conditions based on their client interactions and the characteristics of their most recent sales for the month. The November 2017 survey was sent to 50,000 Realtors who were selected from NAR’s nearly 1.2 million members through simple random sampling and to 5,665 respondents in the previous three surveys who provided their email addresses. Email Marian McPherson.

Does the American Dream no longer include homeownership?

While it has no official definition, the American Dream has always been the notion that citizens of the United States can better their lot in life through hard work. That encompasses the idea that hard-working kids of hard-working parents would have a better life than the previous generation, and homeownership has generally been considered part of that. A decade after the housing market crashed, the homeownership part of the American Dream has become more elusive, according to a new study from Pew Research Center. The report, which analyzed Census Bureau housing data, showed that more United States households "are headed by renters than at any point since at least 1965." Between 2006 and 2016, the U.S. added 7.6 million households, but "in part because of the lingering effects of the housing crisis," according to Pew. During that 10-year period, the number of households renting their homes jumped from 34.6 million (31.2% of the total) to 43.3 million (36.6%). That tops the relatively recent high watermark of 36.2% renting in 1986 and 1988, while coming in just below 1965's 37% renters rate. Young adults lead the way While young adults have historically been more likely to rent than other age groups, the numbers are increasing. More than 6 in 10 (65%) of households headed by someone under 35 rent, Pew reported. That's up from 57% in 2006 but it's not as big a gain as the 35-44 age group made where the percentage of renters jumped from 31% in 2006 to 41% in 2016. The numbers rose among Americans 45-64 as well, going from 22% in 2006 to 28% in 2016. In fact the only demographic studied that did not post an increase was those 65 or older who stayed flat at 20%. It's not that people don't want to buy In many cases the increase in renters has been blamed at least partially on Millennials not wanting to be tied down or not working hard enough to afford buying. In fact most renters want to buy, according to a separate Pew report: "In a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About two-thirds of renters in the same survey (65%) said they currently rent as a result of circumstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial reasons." While mortgages are cheap on a historical basis, inventories remain low, prices have soared, and mortgage standards have remained tough. Banks and other lenders may have more flexibility than they did right after the housing crisis, but the days of stated income, low-doc, or even no doc loans are largely gone. Add in the fact that some capable, qualified buyers have decided to put off homeownership due to lingering fears over the economy and you can see why homeownership has declined. Americans still want to buy houses. Some of us can't afford to right now, while others are waiting for better opportunities. Many simply lack the means to reasonably expect ever to be able to make a purchase. Owning a home remains part of the American dream, at least for most Americans, but it's also a less attainable goal than it was for previous generations.

How Many Credit Checks Before Closing on a Home?

BY TALI WEE ON 29 DEC 2017 Throughout the approval process, push yourself to maintain your credit while lenders pull it. Navigating the purchase of a home can be overwhelming for first-time buyers. Lenders require documentation of seemingly every detail of your life before granting a loan. And of course, they will require a credit check. A question many buyers have is whether a lender pulls your credit more than once during the purchase process. The answer is yes. Lenders pull borrowers’ credit in the beginning of the approval process, and then again just prior to closing. Initial credit check for pre-approval In the first phase of acquiring a loan, pre-qualification, you’ll self-report financial information. Lenders want to know details such as your credit score, social security number, marital status, history of your residence, employment and income, account balances, debt payments and balances, confirmation of any foreclosures or bankruptcies in the last seven years and sourcing of a down payment. This is only a portion of the total information needed for your mortgage application. Once you’re ready to get pre-approved for a loan, lenders will verify your financial information. During this phase, lenders require documentation to confirm the information in your application and pull your credit history for the first time. You may be required to submit a letter of explanation for each credit inquiry in recent years, such as opening a new credit card, and for any derogatory information in your history, like a missed payment. Once you find a home within budget and make an offer, additional or updated documentation may be required. Underwriters then analyze the risk of offering you a loan based on the information in your application, credit history and the property’s value. Second credit check at closing It can take time for your offer to be accepted, and for your loan to pass underwriting. During this period from the initial credit check to closing, new credit incidents may occur on your history. Many lenders pull borrowers’ credit a second time just prior to closing to verify your credit score remains the same, and therefore the risk to the lender hasn’t changed. If you were late on a payment and were sent to collections, it can affect your loan. Or, if you acquired any new loans or lines of credit and used those credit lines, your debt-to-income ratio would change, which can also affect your loan eligibility. If the second credit check results match the first, closing should occur on schedule. If the new report is lower or concerning to the lender, you could lose the loan. Alternatively, the lender may send your application back through underwriting for a second review. It’s important for buyers to be aware that most lenders run a final credit check before closing, so the home-buying window is a time to prudently mind your credit.

What You Need To Know About New Tax Law

(CNN Money) — It’s official. Congress has ushered through the first major tax overhaul since Ronald Reagan was president. The measure, which President Trump signed into law on Friday, is about to shake up life for millions of Americans. It will redistribute the country’s wealth. It could sway decisions about whether to buy a home, or where to send kids to school. It could even affect when unhappy couples decide to get a divorce. As the bill becomes law, here are 34 things you need to know. 1. This is the first significant reform of the U.S. tax code since 1986. Reagan signed major legislation for corporations and individuals in 1986. Since then, serious tax reform has eluded Republicans, though they repeatedly called for it as the tax code became longer and more arcane. 2. Changes have been made to both individual and corporate tax rates. Individual provisions in the new legislation technically expire by the end of 2025, though some people expect that a future Congress won’t actually let them lapse. Most of the corporate provisions are permanent. 3. Tax reform will increase deficits by $1.46 trillion over the next decade. That’s the net number that’s been crunched by the nonpartisan Joint Committee on Taxation. The future law’s contribution to the debt will likely be even higher if individual tax cuts are re-upped in eight years. 4. There are still seven tax brackets for individuals, but the rates have changed. Americans will continue to be placed in one of seven tax brackets based on their income. But the rates for some of these brackets have been lowered. The new rates are: 10%, 12%, 22%, 24%, 32%, 35% and 37%. 5. The standard deduction has essentially been doubled. Republicans want fewer people to itemize their taxes. To achieve this, they’ve nearly doubled the standard deduction. For single filers, the standard deduction has increased from $6,350 to $12,000; for married couples filing jointly, it’s increased from $12,700 to $24,000. 6. The personal exemption is gone. Previously, you could claim a $4,050 personal exemption for yourself, your spouse and each of your dependents, which lowered your taxable income. No longer. For some families, the elimination of the personal exemption will reduce or negate the tax relief they get from other parts of the reform package. 7. The state and local tax deduction now has a cap. The state and local tax deduction, or SALT, remains in place for those who itemize their taxes — but now there’s a $10,000 cap. Previously, filers could deduct an unlimited amount for state and local property taxes, plus income or sales taxes. 8. The child tax credit has been expanded. The child tax credit has doubled to $2,000 for children under 17. It’s also now available, in full, to more people. The entire credit can be claimed by single parents who make up to $200,000, and married couples who make up to $400,000. 9. There’s a new tax credit for non-child dependents, like elderly parents. Taxpayers may now claim a $500 temporary credit for non-child dependents. This can apply to a number of people adults support, such as children over age 17, elderly parents or adult children with a disability. 10. Fewer people will have to deal with the alternative minimum tax. The alternative minimum tax, a parallel tax system that ensures people who receive a lot of tax breaks still pay some federal income taxes, remains in place for individuals. But fewer people will have to worry about calculating their tax liability under the AMT moving forward. The exemption has been raised to $70,300 for singles, and to $109,400 for married couples. 11. And the mortgage interest deduction has been lowered. Current homeowners are in the clear. But from now on, anyone buying a new home will only be able to deduct the first $750,000 of their mortgage debt. That’s down from $1 million. This is likely to affect people looking for homes in more expensive coastal regions. 12. None of this will affect your 2017 taxes. Americans won’t need to worry about these changes when they start filing their 2017 tax returns in about a month. The new laws will first be applied to 2018 taxes. 13. By the way, you can still deduct student loan interest. The deduction for student loan interest, which is up to $2,500 per year, is safe. 14. You can still deduct medical expenses. The deduction for medical expenses wasn’t cut. In fact, it’s been expanded for two years. In that time, filers can deduct medical expenses that add up to more than 7.5% of adjusted gross income. In the past, the threshold for most Americans was 10% of adjusted gross income. 15. If you’re a teacher, you can still deduct classroom supplies. The deduction for teachers who spend their own money on school supplies was left alone. Educators can continue to deduct up to $250 to offset what they spend on classroom materials. 16. The electric car tax credit lives on. Drivers of plug-in electric vehicles can still claim a credit of up to $7,500. Just as before, the full amount is good only on the first 200,000 electric cars sold by each automaker. GM, Nissan and Tesla are expected to reach that number some time next year. 17. Home sellers who turn a profit keep their tax break. Homeowners who sell their house for a gain will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains, so long as they’re selling their primary home and have lived there for two of the past five years. 18. 529 savings accounts can be used in new ways. In the past, funds invested in 529 savings accounts wasn’t taxed — but it could only be used for college expenses. Now, up to $10,000 can be distributed annually to cover the cost of sending a child to a “public, private or religious elementary or secondary school.” This change is a win for Education Secretary Betsy DeVos. 19. And tuition waivers for grad students remain tax-free. Graduate students still won’t have to pay income taxes on the tuition waiver they get from their schools. Such waivers are typically awarded to teaching and research assistants. 20. But say goodbye to the tax deduction for alimony payments. Alimony payments, which are codified in divorce agreements and go to the ex-spouse who earns less money, are no longer deductible for the person who writes the checks. This provision will apply to couples who sign divorce or separation paperwork after December 31, 2018. 21. The deduction for moving expenses is also gone … There may be some exceptions for members of the military. But most people will no longer be able to deduct the cost of their U-Haul when they move for work. 22. As is the tax preparation deduction … Before tax reform passed, people could deduct the cost of having their taxes prepared by a professional, or the money they spent on tax prep software. That break has been eliminated. 23. … The disaster deduction … Losses sustained due to a fire, storm, shipwreck or theft that aren’t covered by insurance used to be deductible, assuming they exceeded 10% of adjusted gross income. But now through 2025, people can only claim that deduction if they’ve been affected by an official national disaster. That would make someone whose house was destroyed by a California wildfire potentially eligible for some relief, while disqualifying the victim of a random house fire. 24. … And the reimbursement for bicycle commuters. The tax code used to let you to knock off up to $20 from your income per month for the costs of bicycle commuting to work, assuming you weren’t enrolled in a commuter benefit program. That’s gone. 25. Almost everyone is now exempt from the estate tax. Before tax reform, few estates were subject to the estate tax, which applies to the transfer of property after someone dies. Now, even fewer people have to deal with it. The amount of money exempt from the tax — previously set at $5.49 million for individuals, and at $10.98 million for married couples — has been doubled. 26. Adjustments for inflation will be slower. The new legislation uses “chained CPI” to measure inflation. It’s a slower measure than what was used before. Over time, that will raise more money for the federal government, but deductions, credits and exemptions will be worth less. 27. Oh, and the individual mandate on health insurance has been scrapped. Republicans failed to repeal Obamacare earlier this year, but they managed to get rid of one of the health law’s key provisions with tax reform. The elimination of the individual mandate, which penalizes people who do not have health care, goes into effect in 2019. The Congressional Budget Office has predicted that as a result, 13 million fewer people will have insurance coverage by 2027, and premiums will go up by about 10% most years. 28. You won’t be able to file your tax return on a postcard. Trump said H&R Block would go out of business after tax reform because filing taxes would become so simple. Not quite. While doubling the standard deduction will ease the process for some individuals, there’s still a web of deductions and credits to work through. And for small businesses, filing could become even more complicated. 29. The corporate tax rate is coming down. The corporate tax rate has been cut from 35% to 21% starting next year. The alternative minimum tax for corporations has been thrown out altogether. Earnings are expected to go up as a result. 30. Pass-through entities will also get a break. The tax burden by owners, partners and shareholders of S-corporations, LLCs and partnerships — who pay their share of the business’ taxes through their individual tax returns — has been lowered via a 20% deduction. The legislation includes a rule to ensure owners don’t game the system, but tax experts remain concerned about abuse of this provision. 31. Not all CEOs think they’ll use their savings to create jobs, though. Just 14% of CEOs surveyed by Yale University said their companies plan to make large, immediate capital investments in the United States following tax reform. Capital investments, like building plants and upgrading equipment, can spur hiring. 32. Plus, the way multinational corporations are taxed is about to change. The U.S. is switching to a territorial system of taxation, which means companies won’t owe federal taxes on income they make offshore. To help the transition, companies will be required to pay a one-time, low tax rate on their existing overseas profits — 15.5% on cash assets and 8% on non-cash assets, like equipment in which profits were invested. 33. By the way, there’s a provision to rein in executive pay at nonprofits. The legislation includes a new 21% excise tax on nonprofit employers for salaries they pay out above $1 million. That may mean some well-paid executives at nonprofits take a pay cut. 34. Businesses won’t be able to write off sexual harassment settlements. New Jersey Democratic Senator Bob Menendez’s amendment born of the #MeToo moment made it all the way through. Companies can no longer deduct any settlements, payouts or attorney’s fees related to sexual harassment if the payments are subject to non-disclosure agreements. — With contributions from Jeanne Sahadi, Kathryn Vasel, Tami Luhby, Anna Bahney, Jackie Wattles, Katie Lobosco, Lydia DePillis and Matt Egan. 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