“Landlords Helping Landlords” NWCLAnwcla.com/images/news/nwcla020109.pdfHow the Financial Rescue...

NWCLANorthern Worcester County Landlord Association

“Landlords Helping Landlords”“Landlords Helping Landlords”

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Volume 52 February 2009Landlords Helping Landlords

NWCLA President’s February LetterDear NWCLA Membership,

The January meeting was one of our best and much thanks goes to Jeff Landry for coordinating all of the multi-media and assisting Maki with their massive widow displays http://www.makibuildingcenters.

com/. There was a lot to see and learn about what we can do in our buildings to save energy with cost effective alternatives – and do it in a way that is good for the planet, and for you.

Maki Home Building Center has been a long time sponsor of the NWCLA and their multiple locations in Lunenburg, Gardner and Sterling make them accessible to the multiple markets that our members operate within. If custom doors or windows are needed be sure to visit them at one of the locations nearest you. Maki’s in Gardner has SWS http://www.swscorp.net/, which is landlord-approved-two-thumbs-up for widow and glass replacement and reliable service. If you get there early with your windowsill, you can even get same day turn around on most makes and models.

Our other guest speaker was Tyler Austin of Borrego Solar Systems. Tyler explained how solar energy panel installations on your property can actually turn back time on the meter of your property energy costs and consumption. Even better was Tyler’s knowledge of all of the state incentives, programs, and discounts still currently available for these types of energy installations. Each site is a different set up scenario and Borrego Solar Systems will optimize your custom installation to best suit your property and your energy needs – at the best possible price taking advantage of all of the government perks. Call Tyler today at 978-458-1365 to assess your location and see how bright your energy future can be. http://www.borregosolar.com/.

There was also a lot of action taking place outside of the meeting hall this month concerning the public hearings regarding Unitil’s reaction to public out cry over the lack of response during the ice storm. Many of you stood to be counted. Many of you suffered silently not knowing there were shelter, heat, food, medical supplies, and safety. We were able to rally support through our web site and our email messages to members to get the word out there. You’ve responded, and you were heard.

Be sure to check out the legislation page of the web site for further information and updates about what you can still do to participate in the hearing results. Also be on the look out for upcoming information, articles, and agendas for changes in state and local lead paint and EPA laws. We are gathering information and putting it

on the web site so be sure to check it out frequently to catch any updates. Jamie Merrill our Legislation Director,has been tracking this information to keep us updated and taking the intitiative to get us what we need to know to take action.

I want to thank and acknowledge all of the volunteers who get out there in our communities and take action to make this organization happen for the benefit of all of us. I am proud not only to be the president, but also a member working side-by-side with you. As you know, we are all volunteer members serving you, our membership body. I can tell you from the dedication and commitment of the board members, there is always someone stepping up to the plate to do more, when more needs to happen.

Don Dattolo has been this kind of volunteer who always gave of his time gracefully to serve his friends and family. Don’s love and dedication to all of you was something he took great pride and joy in serving us all. We will miss him dearly, and I want to thank all of you who were able to attend the celebration of his life. I can tell you the church was packed, and friends and family filled the isles to say goodbye to Don. We are going to miss you but I am sure you have gone ahead of us to serve a higher calling.

Sincerely, Brian LucierNWCLA President 2008 – [email protected]

In This Issue Page

President’s Letter 1 NWCLA Useful Notes 2 NWCLA Members Support Positive testimonial Program 2 Upcoming Topics, BUY-SELL-TRADE-FREE 4 Eligibility Clarification for MassHousing Get The Lead Out Program 5 Landlord of the Month: Dennis Jean 5 Web Site: http://www.nchh.org/ 5 Buyer Be Alert / You May Not Know 6 MRHA Rent Escrowing Bill 6 IRS Announces 2009 Standard Mileage Rates 9 How the Financial Rescue Plan May Affect You 9 - 11 Non-Itemizers Get a Real Property Tax Deduction 10 Schmidt’s Smorgasbord 12


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NWCLA Membership Fees Membership is $80 per yearMembership Benefits Include:

• Monthly NWCLA Newsletter• Local Drug Arrest List • Housing Court Eviction List• Member to Member Support• Informative Monthly Seminars• Association Attorney• Legislative Updates• E-mail Alerts on Housing Issues• Web Site - www.nwcla.com• NWCLA Blog posts at

www.realestateinvestor.com

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PresidentBrian Lucier [email protected] Vice PresidentTBA in January TreasurerTina [email protected]

Secretary/ClerkTheresa [email protected]

Membership DirectorBrenda [email protected] Newsletter DirectorRick Dupuis [email protected]

Welcoming CommitteeTheresa [email protected]

Advertising DirectorJay Johnson [email protected] Web Site DirectorBrian Lucier [email protected]

Oil Program DirectorJay Johnson [email protected] Food CommitteeDave & Laura SchmidtProgram ManagerJeff Landry [email protected]

Legislation DirectorJamie Merrill 978-407-7174 [email protected]

Board MemberMatthew Moore 978-345-7971 [email protected]

Board MemberDebbie Greelish [email protected]

Board MemberRon LeShane Jr. [email protected]

NWCLA Board Members NWCLA – Landlords Helping Landlords

We are proud to serve the following communities:Ashby Ashburnham Athol Fitchburg

Gardner Harvard Hubbardston Lancaster

Leominster Lunenburg Phillipston Sterling

Townsend Westminster Winchendon

P.O. Box 276 Telephone: 978-345-1887 Fitchburg, MA 01420 http://www.nwcla.com

NWCLA Members Support Positive Testimonial Program By Jay Johnson

To increase the number of members that utilize the services of our advertisers, we are now doing something new!

Every month we are going to extend to you an opportunity to highlight the positive experiences you’ve had with any of the vendors in our newslet-ter. Please take a moment to e-mail me a few words describing the work that was done for you and the name of the contractor who completed the job. Your affirmative input will let other property own-ers in our group know that working with our ad-vertisers can be a positive experience. This is also a great way to say “thanks” to the business men and women who contribute to the Northern Worcester County Landlord Association and our goal of being the best landlords that we can be!

Please look here in the future to see what your fel-low members are saying about the fine advertisers that contribute to the NWCLA. I look forward to reading your letter soon!

Jay Johnson’s e-mail is [email protected] or mail him your stories to:

NWCLA ATTN: Jay JohnsonP.O. Box 276Fitchburg, MA 01420

NWCLA Useful Notes• Summary Process Summons &

Complaint Forms are available for $5.00 NWCLA meetings

• The newsletter committee wants to hear from you. E-mail your stories, ads, helpful hints, or suggestions to [email protected]

• The Successful Landlord is avail-able to purchase at our meeting. Cost is $40.00. while supplies last

• Anyone seeking past eviction lists please go to our web site to download the latest copy.

Directions to the meeting at the Monoosnock Country Club40 Monoosnock Avenue Leominster, MA 01453 (978) 534-4913 From the West: Route 2 East to Exit 32 (Route 13). Right at end of ramp. Right at next set of lights. Straight on Route 13 for approximately .8 mile. Then turn right onto Monoos-nock Avenue. From the East: Route 2 West to Exit 32 (Route 13). Right at end of ramp. Straight for approxi-mately .7 miles. Then turn right onto Monoosnock Avenue.

ADVERTISE HERE WITH NWCLA • 10 issues per year • Local and Statewide

Attention• Growing Distribution

BUSINESS CARD $80.001/4 PAGE AD $140.001/2 PAGE AD $200.00FULL PAGE $320.00

For details, contact Jay Johnson by e-mail at: [email protected]


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Our office is a dedicated Real estate Law Office. We strict-ly handle Real Estate conveyancing matters. Count on us to assist you in your next Real Estate transaction. Visit our web site for more information and news updatesOur clients consist of: • Real Estate Investors • Real Estate Buyers and Sellers • Local and National Mortgage Lenders • Private Mortgage LendersWe provide our clients: • General Counsel in the sale & purchase

of Real Estate • Settlement & closing services • Title examinations • Title Insurance • Escrow Services

100 Erdman Way – Leominster, MA Tel: 978-847-0104 – Fax: 978-847-0105

www.myrealestateattorney.net

Member of the Real Estate Bar Association of Massachusetts

The Law Office of

David R. Rocheford Jr., P.C.Real Estate Law

You have the right to choose the LOWEST COST Eviction Mover / Public Warehouser

See our web site at:www.evictionmover.com for information and licensing or call

1-617-966-6684

DON’T GET RIPPED OFF!

NWCLA MEMBER DISCOUNTS We hope you will find these discounts helpful

for the maintenance of your properties

Aubuchon HardwareGroup # 1000501 – Membership card required

20% off Glidden paint 10% off merchandise

Grand Rental StationCash Acct. # *195 – Membership card and

Photo ID required 10% off

Maki’s Building Center Cash Acct. # *195 – Membership card and

Photo ID required 2% - 10% off

Sabourin HardwareMembership card and Photo ID required

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Please Note: The information in this newsletter is not intended to be construed as legal, accounting, or other professional advice. Seek legal advice from licensed professionals for answers relating to your particular questions and circumstances.


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FOR SALE 2 Stoves 2 Refrigerators1 Washing Machine1 3-bay metal sink1 plastic utility sinkGreat for your apartments! Starting at $100.00Call Tim Damon @ 978-297-5254 __________________________ http://www.forrentorsale.net/ 3 different Ken Roberts training videos, and tapes complete with the manuals. Call Mark @ 978-502-5723 or e-mail: [email protected] __________________________NEW, sliding glass door unit for a 4 foot tub enclosure. Hard to find. Paid $200., Will sell for $100. Call Marria @ 978-534-5982 ___________________________ 1.) Used HP MX.70 17 inch desktop monitor color grey apx 4 yrs old not used for 2. Complete with box manual, pwr cord Excellent condition like new.Asking $65.00 or BO. First $50.00 takes it2.) Also have HP 845c color ink jet printer (grey) excellent condition like new with pwr adapter, no ink. Asking $35.00 or Bo. First $25.00 takes it.

Will sell all items above for $75.00 cash. All items are in working order and sold as is. I have all boxes; will deliver for slight fee w/i 30 mile radius of Fitchburg. These are my sons units - I need the room, he needs the money. Call Ken @ 978-342-0639 or e-mail: [email protected]___________________________36” x 80” outside door, hardwood with 6 windows, with frame. Dead-bolt lock included. $50.00 or BRO call Ken Anderson at 978-534-9533 or 508-641-1559 ___________________________ 4 COLOR MONITORS!!! 19”& 20”VIEWSONIC Each in excellent condition. Left overs from recent professional graphics studio upgrades. Asking $80 each or BRO call Brian at 978-448-3873 or [email protected].

REAL ESTATELOOKING FOR INVESTORS!!!Seasoned real estate investor seeks other like-minded investors to partner on large apartment complexes. Call Brian at 978-448-3873 for more information or e-mail. [email protected] ___________________________Looking for Property in Gardner, Leominster, Athol Areas. Any and all calls welcome for 10+ multi-family units. Have financing approved and ready to go. Call 978-448-3873 and mention this ad from the NWCLA Newsletter for more information. Ask for Brian. [email protected] ___________________________Timeshares Available For Rent in Aruba, Florida, Las Vegas. Any and all calls welcome 978-448-3873 and mention this ad from the NWCLA Newsletter for more information. Ask for Brian. [email protected] ___________________________Ad listings are free to members. There are three ways to submit your ad: (all ads are subject to review and editing)1.) Bring your classified ad(s) to the

meeting and post on the bulletin board

2.) E-mail your classified ad(s) to: [email protected] 3.) Mail your classified ad(s) to:

Attn Terry NWCLA PO Box 276 Fitchburg, MA 01420

a.) State classification – Wanted, For Sale, Free, etc.b.) Describe the item – color, size,

condition, age, model number, price, etc.

c.) Contact name – first and last name please (must be NWCLA member)

d.) Contact information – telephone and or e-mail address

All ads subject to space limitations in our newsletter.

BUY-SELL-TRADE-FREE

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NWCLA Program Schedule 2009 February 12, 2009 Rick Egan – GFA Credit Union

Rob Tingeton – Exchange Authority – 1031 exchanges

March 12, 2009 Bernie Sullivan – Gardner BOH Michelle Powell & Ann Cramer Leominster BOH, Cindy Soule from the M.O.C. Get the Lead out Program.

April 9, 2009 Will feature our own Jamie Merrill and Jay Johnson



Useful Web Site of the Month

http://www.nchh.org/This month’s web site comes from the National Center for Healthy Housing. The National Association of Realtors is hosting addi-tional free webinars on the RRP rule for REALTORs and property managers. I had the opportunity to attend an informative webex seminar about the new EPA regulations coming on line and was able to post a recording of that call as well as the PPT presentation on our webs site on the Legislation Page. The key for the mom and pop owner is to work with a trusted contractor or supervisor and make them responsible. The training starts in May so get them into the training after then. EPA starts certifying firms in October but you do not need to actually comply until April 22, 2010. The other thing you may want to consider is getting a lead inspec-tion sooner rather than later. Right now, the lead inspectors are looking for work and may give you a good price, especially if you are not in a rush. As it gets closer, I am assuming the bigger ac-counts will make it tougher to find.

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Clarification of the MassHousing Get the Lead Out Program Eligibility Guidelines from MassHousing Submitted By Cindy Soule, [email protected]

Please share this important clarification with anyone you know who either works with - or may be in need of - a Get the Lead Out loan. I’m sure many of you have al-ready received it, but I wanted to be sure to share it with everyone. There seem to be remaining funds in the existing ac-count that have not been applied for, perhaps partly due to various misunderstandings and miscommunications about eligibility guidelines. I hope this clarification will help us to promote the availability and facilitate distribu-tion of existing funds in order to get assistance to those trying to bring properties into compliance with the Mass Lead Law and ensure healthier homes for families in our community. We all hope that the GTLO fund can be fully renewed and that, in combination with other sources of renova-tion, rehabilitation funding eligibility guidelines can be even expanded to include more properties in need of lead abatement. Best wishes - and thanks - to you all, Cindy Houle

NWCLA Members – Did You Know?... That Legislation Director Jamie Merrill has been tracking this story above and other pending legislation that effects all of us as landlords? Be sure to visit the Legislation page on the NWCLA Web Site for this information and more related legislation topics. Take Action!!! http://www.nwcla.com/

Landlord of the Month Landlord Name: Dennis JeanCity/Town of property location: Fitchburg & Medford How long have you been a property owner? 9+ yearsHow many units do you own or manage? 15 (fifteen) Total occupancy rate today: 80% What is your best tenant screening tip and/or tool? Gut feelings about people and experience.What advice would you give a new property owner? Ask a lot of questions during the interview, especially why do

you want to move to my building. Join an association like the NWCLA.

What do you see as your biggest benefit as an NWCLA member? Education for landlords, the Drug Arrest List from the

web site, and the Housing Court Eviction List from the web site too.

What changes/subjects would you like to see at the monthly NWCLA meeting? None, you are doing a great job!

Note: All subject matter will be reviewed prior to printing.


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Buyer Be Alert Submitted By Jamie Merrill

In this real estate market, there are many great deals available for those looking to increase their portfolio.

This is the market we began in, in the late 1990’s; it will provide a great opportunity for investors. Buyers must be diligent in their search and execution of their plan, there are many potential issues that can come up in purchasing a foreclosure/ bank owned property. It is imperative that a buyer have a good attorney, have a thorough title search, plot plan, and obtain a lien certificate. It can be tempting to rush through the buying process when you feel you are getting an amazing deal, but the results can be disastrous when you find out the multi-bay garage and parking does not come with the large multi-unit building you just bought. In the heat of the buy-ing market a few years ago, many details, like a correct deed may have been over looked.

A Hypothetical Scenario —

• H. Bier (Buyer) finds a great large building to purchase, he has his Realtor, A. Agene put an offer in on the property and it is accepted. H. Bier has his Realtor perform due diligence, the title, plot plan, and lien certificate are ordered. It becomes aware to all parties that the large garage and parking area was never conveyed to the last buyer of the property, whom was foreclosed on.

• H. Bier has his Realtor contact the original seller to correct the deed. The original seller, J. Dishunust, when contacted, acknowledges the error, but wants to sell it again, even though he has sold it once and made a great deal of money. The documents are found with J. Dishunust’s signature proving he has already sold the parcel. The city is contacted and it is found that it must be corrected – splitting the two pieces of land, would make them non-conforming lots – they have to remain together.

• Finally, H. Bier has his attorney, R. Angel contact J. Dishunust’s attorney, U. Nethical. J. Dishunust demands a large sum of money to correct the deed. Although H Bier is disappointed and surprised by J. Dishunust’s behavior and actions, (J. Dishunust being the previous owner of a small local business), he is forced to pay the demand money to get the deed corrected. In addition on the day of closing, J. Dishunust demands that H. Bier pay for his attorney costs or he will not correct the deed. H. Bier has to agree to the terms.

• H. Bier did have the option to sue J. Dishunust to correct the deed, and did acquire a great deal of proof for the case, but the legal costs may have exceeded the costs of paying the demand, so in the end the decision was made to just pay J. Dishunust’s demand.

You May Not Know... Submitted By Jamie Merrill

If there is a problem building in a neighborhood you own property in and want to do something about it, let me know the address. I will mail a letter to the owner of record to notify him/her of the problem and inform him about our organization. Many absentee owners may not know there is a problem or how to fix it.

Jamie Merrill – [email protected]

MRHA Rent Escrowing Bill Submitted By Sherri WayMRHA Central VPMWPOA President

Hope everything is going well with NWCLA. It’s definitely a very interesting climate to be a landlord! I wanted to let you know that the MRHA has submitted a rent escrowing bill to the State House. So far, Thomas Stanley is sponsoring it. He is the representative from Waltham and he is also the Vice Chair for the Housing Committee. I’m attaching the bill (and our arguments) to this email. Feel free to pass it along in your group and I will keep you posted as we get more information. If you or anyone in your group knows any of your local reps, you may want to speak to them about this bill. We are also looking at additional bills for water metering (giving the towns the ability to put in and monitor the meters) as well as


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maybe some changes to the lead paint law (removing strict liability). Hopefully, we can do something for mid-session. Also, rumor has it that Jehlen is resubmitting her bill to change the lead paint laws -- (testing will include soil and water, have to test every 2 years etc...) Here is the proposed bill in writing:

Mandatory Rent Escrowing:

Status: this bill has been submitted to the State House. At this time, Thomas Stanley (Representative from Waltham and Vice Chair of the Housing Committee) is sponsoring the bill, we’re working on additional sponsors for the bill.

Objective: With the current legislation, a tenant can withhold rent if a call is made to the board of health and problems are found in the apartment. Unfortunately, in some cases, the tenant does not have the rent money and even after the problems are resolved, the landlord cannot get the rent.

The proposed legislative changes would require that a tenant put the rent into an escrow account if the landlord serves the tenant a notice to vacate and the tenant then proceeds to call the Board of Health to report problems. This is called the “Free Rent Trick”.

The money to be placed in escrow would be the current rent minus any repair costs the tenant incurs to resolve the problem.

While many opponents to this change state that this is a burden on the tenant, there are multiple indications that this is not.

1. The tenant should have the money for rent. If this is a legitimate problem (i.e., furnace isn’t working etc), then the expenses incurred by the tenant in this situation can be deducted from the money put into escrow. The tenant should have receipts for these expenses.

2. In some eviction situations, the tenant calls the Board of Health because they do not have the money and are looking for a way to stall an eviction.

3. Some argue that a tenant should not have to escrow rent because he would lose his day in court (due process). However, there is currently precedent for a payment-first scenario in other areas of real estate.

a. When a resident wishes to challenge the real estate tax imposed on his residence, he must first pay the tax and then challenge it. The law states that he must pay it before he can even challenge the assessment in court.

b. Any condominium owner who wishes to challenge his condominium fee must first pay it before he can bring a court action.

Both these payment-first scenarios are based on the fact, so the courts say, that the towns and the condo trustees rely on these funds to operate financially and anyone who does not pay first would be jeopardizing the financial integrity of these institutions. So, they must always pay, then challenge. And the law says there is no violation of their due process rights in those instances.

On the same theory, there is no due process violation if renters are required to pay first, and then

challenge. The landlord’s financial well-being also depends on his receipt of the rent in most cases. One can’t argue that the landlord could always get the money somewhere else in the meantime, because the condo trustees could too – by imposing a special assessment to carry them through the shortfall. So, renters can be required to pay the rent without any due process violations.

Modifications Proposed:

Chapter 239, Section 8A, second paragraph. Add the following line after “section unless”The changes required (1) the tenant or occupant deposits with the clerk all rent due prior to final disposition of the plaintiff’s action;

Addition (in italics) to second paragraph, Chapter 239, Section 8A

Whenever any counterclaim or claim of defense under this section is based on any allegation concerning the condition of the premises or the services or equipment provided therein, the tenant or occupant shall not be entitled to relief under this section unless: (1) the tenant or occupant deposits with the clerk all rent due prior to final disposition of the plaintiff’s action; (2) the owner or his agents, servants or employees, or the person to whom the tenant or occupant customarily paid his rent knew of such conditions before the tenant or occupant was in arrears in his rent; (3) the plaintiff does not show that such conditions were caused by the tenant or occupant or any other person acting under his control; except that the defendant shall have the burden of proving that any violation appearing solely

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within that portion of the premises under his control and not by its nature reasonably attributable to any action or failure to act of the plaintiff was not so caused; (4) the premises are not situated in a hotel or motel, nor in a lodging house or rooming house wherein the occupant has maintained such occupancy for less than three consecutive months; and (5) the plaintiff does not show that the conditions complained of cannot be remedied without the premises being vacated; provided, however, that nothing in this clause shall be construed to deprive the tenant or occupant of relief under this section when the premises are temporarily vacated for purposes of removal or covering of paint, plaster, soil or other accessible materials containing dangerous levels of lead pursuant to section one hundred and ninety-seven of chapter one hundred and eleven.

Chapter 238, Section 8A, paragraph 4:

In the sentence: The court after hearing the case may require the tenant or occupant claiming under this section to pay to…..

Should be changed to: The court after hearing the case shall require the clerk of the court to pay the landlord, from the deposit required by the second paragraph.

C. 239, s. 8A – Amendments to paragraph 4 (in italics) as follows (bracketed words/sentences should be deleted from existing text of statute):

There shall be no recovery of possession pursuant to this chapter pending final disposition of the plaintiff’s action if the court finds that the requirements of the second

paragraph have been met. The court after hearing the case [may] shall require [the tenant or occupant claiming under this section to pay to] the clerk of the court to pay to the landlord, from the deposit required by the second paragraph, the fair value of the use and occupation of the premises less the amount awarded the tenant or occupant for any claim under this section. [, or to make a deposit with the clerk of such amount or such installments thereof from time to time as the court may direct, for the occupation of the premises.] In determining said fair value, the court shall consider any evidence relative to the effect of any conditions claimed upon the use and occupation of residential premises. Such funds may be expended for the repair of the premises by such persons as the court after a hearing may direct, including if appropriate a receiver appointed as provided in section one hundred and twenty-seven H of chapter one hundred and eleven. When all of the conditions found by the court have been corrected, the court shall direct that the balance of the funds, if any, remaining with the clerk be paid to the landlord. Any tenant or occupant intending to invoke the provisions of this section [may] shall, after commencement of an action under this chapter by the landlord, [voluntarily] deposit with the clerk any amount for rent [or for use and occupation] which may be in dispute, and such payments shall be held by the clerk subject to the provisions of this paragraph.

If the NWCLA wants to get involved with us on the legislative front, let us know. Call me if you have any questions. Regards Sherri Way

MRHA Central VP

Phone Your Senators TODAY!!! – HUD Lead Hazard Reduction FundingSubmitted By Cynthia SouleFitchburg Lead Action GroupMontachusett Opportunity Council, Inc326 Nichols RoadFitchburg, MA 01420(978) 345+6272 x 226

Greetings,

As you know, President Obama and Congressional leaders are working on a recovery and reinvestment plan that attempts to address immediate economic needs, create jobs and invest in the infrastructure America needs for recovery. As you may know too, the House passed its version of the “stimulus” bill last week, and the Senate is expected to vote on its version this week.

Both House and Senate versions include an additional $100 million in funding for the Lead Hazard Reduction Program under the HUD Office of Healthy Homes and Lead Hazard Control. This additional funding could make a real difference in preventing childhood lead poisoning by creating more safe, affordable housing in communities around the country and across the Commonwealth, including our own. However, it is not yet certain that this additional funding will appear in the final version of the stimulus. Please take a moment to call Senators Kerry and Kennedy today and tell them you support retaining this funding in the Senate version of the stimulus bill.

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Kerry: (202) 224-2742Kennedy: (202) 224-4543

Feel free to use the script below if you wish. Once you make a call, please send me a quick note letting me know.

Please call both of your Senators and say: “Hello, my name is --------- and I am calling from the Northern Worcester County landlord Association. I am calling to ask the Senator to support retaining $100 million in additional funding for the “Lead Hazard Reduction” Program under the HUD Office of Healthy Homes and Lead Hazard Control as currently included in both the House and Senate versions of the stimulus bill.”

[Explain in 1 or 2 sentences YOUR LOCAL issues with lead paint, organization’s success in helping families, anything that makes it relevant for your legislator].

Thank the Senator for his support.

I’ve included here some helpful links for those who’d like to explore the proposed text in more depth:

http://readthestimulus.org/ House Version: http://readthestimulus.org/hr1_text.pdf (page 229) Senate Version: http://readthestimulus.org/s336_012709.pdf (page 260)

Thank you for your support! Cynthia SouleFitchburg Lead Action GroupMontachusett Opportunity Council, Inc.

IRS Announces 2009 Standard Mileage Rates

The IRS has issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 55 cents per mile for business miles driven;

• 24 cents per mile driven for medical or moving purposes; and

• 14 cents per mile driven in service of charitable organizations.

The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008, which were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.

The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.

The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.

With the recent rapid decline in fuel prices, don’t be surprised if the rate is not dropped again during 2009.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

How the Financial Rescue Plan May Affect You

The financial rescue plans and bail-out measure being taken by the government will have far-reaching effects on everyone. The underlying financial situation that prompted these rescues will have even more of an impact.

It’s hard to predict how all this will play out, both in the short and long-term. Much will depend on the actions of the new Presidential Administration and Congress. You may feel effects in several areas.

Your JobThe financial sector has already taken an employment hit. Jobs in other fields, like automobile manufacturing and sales, real estate and construction, are also cutting jobs.

If unemployment figures reach the 8-10% levels some are predicting, the impact will expand to include just about every sector of business. Your job may be at risk, now or in the near future.

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Keep an eye on your field and workplace. Keep your resume up-to-date and your network of colleagues active. Try to make yourself indispensable to your current employer. Above all, make sure you have an adequate emergency fund…just in case.

Your Home

Take a look at your mortgage. Is it the best one you could have? Foreclosure rates have skyrocketed, and risky adjustable mortgages play a large role in the debacle. If you owe more than your home is worth or have an adjustable rate mortgage due to reset, you’re at risk. Try to convert to a fixed-rate mortgage, if your credit rating will allow.

Somewhere down the road, there may be a partial bailout for distressed homeowners, but its format is unknown. If you’re on the verge of foreclosure, try to renegotiate with the mortgage holder. Once you’re out of a foreclosed home, any bailout will probably not apply.

Your Savings

If you have large cash savings in a bank or savings & loans, there’s good news. Individual accounts in a single bank are now protected up to $250,000. Joint accounts are insured up to $500,000. The protection expires in December, 2009, so keep an eye out for any changes.

There’s a chance that your bank, like some others, may fail, and be absorbed by another bank. Even in that case, your insured assets are protected. Enjoy being in the position where your savings aren’t subject to the whims of the market.

Your Investments

Stock prices plummeted in October, 2008, reaching lows not seen for years. Markets may be volatile for some time. Many simply bailed out of the market. They may have made a serious mistake, locking in their losses without any hope of a recovery. Again, the new administration and Congress will make decisions that will affect your investments. Pay close attention.

History teaches that the markets will recover, over time. How much time? That’s an unknown. With some exceptions, you’ll probably recover your losses over time, unless you own stock in firms that go bankrupt.

Story continued from Page 9

Non-Itemizers Get a Real Property Tax Deduction

New for 2008 and 2009, taxpayers who do not itemize can add to their standard deduction the cost of their real property taxes, not to exceed $500 ($1,000 for joint filing taxpayers).

Those who stand to benefit from this provision are taxpayers who pay property taxes but whose itemized deductions are less than the standard deduction. This most frequently will include retired taxpayers who have paid off their home loans and do not have any mortgage interest to deduct. Note that to the extent any real estate taxes are related to business property, such as a home office, and deducted elsewhere on the tax return, they cannot be included in the added standard deduction.

Take, for example, a retired married couple, both over age 65, who paid $2,500 in property taxes and have no other significant itemized deductions. Prior to this law change, their 2008 standard deduction would have been $13,000 (the $10,900 basic amount for joint filers plus $2,100 as an additional amount for married couples both over 65). With the added real property tax deduction, the couple’s standard deduction is increased by the lesser of their property taxes or $1,000. Therefore, for 2008, their standard deduction will be $14,000. Assuming that they are in the 15% tax bracket, this will save them $150 of federal income tax.

In actual application, some taxpayers who are marginally itemizing their deductions may find it beneficial to take the standard deduction.



If you have large equity investments, consult with a trusted advisor, get a second opinion, and use your own best judgment.

Your Taxes

The Rescue Plan and other bailout strategies have one thing in common; they are taking money the government doesn’t have and pumping it into the economy. Eventually, that money has to come from somewhere. Odds are that it’s going to come from the taxpayers. Your grandchildren may still be saddled with the cost of these measures.

In the short-term, though, there is good news for some taxpayers. The Rescue Plan offers some benefits for some middle-income taxpayers. The threshold at which the Alternative Minimum tax goes up to $69,950 for couples filing jointly. The deductions for state and local taxes and for qualified college tuition continue through 2009.

Your Retirement

The Rescue Plan is going to take time to work, and the current economic situation has hit retirement investments hard.

If you’re a decade or more from retirement, time will probably heal your losses due to this crisis. Continue to contribute to well-balanced 401(k) and IRA accounts. If history is any guide, you’ll probably do just fine.

If you are planning to retire soon, you may have lost considerable value in your equity-based 401(k) and IRA accounts. It’s time to reassess your situation. The current economic situation may require postponing retirement or changing expectations.

If you’re already retired, you may be among the hardest hit, especially if you’re invested in equity holdings. The recovery may not happen soon enough. Check your investments now, consult with a trusted advisor, and possibly consider returning to the workplace temporarily.

Looking for a Function Hall? Your Search Has Ended at the

Monoosnock Country Club! Cafe Room: $150.00Seating for 40 to 50 guestsPerfect for Showers, Rehearsal Dinners.

Fireplace Room: $250.00Seating for 120 to 130 guestsOverlooking our picturesque Golf Course. The right setting for Weddings, Anniversaries, or Reunions.

Larger Parties: $350.00Seating for 200 to 220 guestsBoth of our rooms can be combined to one area.

Call: 978-534-4913

11

Ginny’s Thrift Shop MONTHLY FOOD DRIVE

Bring your canned goods or non-perishable food items to the next NWCLA meeting Get involved and make a difference to what Ginny has been doing for years for the local community. This is also another way to get the word out about how our landlord association is helping our community By participating in the food drive at the monthly meeting, you also get a free raffle ticket for our monthly member’s incentive program raffle for door prizes.

Invite NEW MEMBERS to Join the NWCLA

Do you know someone thinking of becoming a landlord or property manager? If so, invite them to become an NWCLA member. It is the mission of the NWCLA to educate, inspire and assist landlords in their business. The membership of the NWCLA is filled with knowledgeable, ex-perienced and helpful people. Meetings are held the second Thursday of each month at 7:00 PM. Contact Brian Lucier via email at brian @bhbgroup.com or call (978) 448-3873 for more info.

http://www.nwcla.comMembers are given a password to access the member’s only section. We welcome your feedback and hope you find it informative.

NWCLA Bucks Up for Grabs $$$$

For each new member that you refer to NWCLA , you will receive $10 (ten) dollars in NWCLA bucks. You may redeem these dollars at our monthly meetings to buy items that will be available for sale or… you may save them up towards your yearly membership fee.

The Successful Landlord Is a must have for your landlord library and is now available to pur-chase at meetings. Cost is $40.00.

Do you have a story, question, or topic you want to see us cov-er in the NWCLA newsletter?

Drop us a line via e-mail to [email protected] with your question or topic for discussion.

May 2008Landlords Helping Landlords

NWCLAP.O. Box 276Fitchburg, MA 01420

Association of the year for 2003


NORTHERN WORCESTER COUNTY LANDLORD ASSOCIATION

Schmidt’s Smorgasbord

NWCLA Monthly Meeting Menu

Feb., 2009 3 types of sandwiches, Chicken salad, Egg and Tuna salad, also 2 different potato salads, a mac salad, and coleslaw. For desert we have Danish and Whoopie pies; Beverages – Coffee, tea, hot chocolate – decaf also

Mar., 2009 Beef Stew, bread rolls and butter; Dessert as-sortment; Beverages – Coffee, tea, hot choco-late – decaf also

Dave and Laura are new to this post and want to hear from you. If you have menu suggestions or ideas, kindly talk with David or Laura Schmidt at the food table! We welcome your comments.

NWCLA MEETING NOTICE • SPECIAL GUEST SPEAKERS

Rick Egan, Brenda Bujnevicie – GFA Credit Union

Rob Tingeton – Exchange Authority – 1031 Exchanges

Thurs, Feb 12th, 2009 7 PM – 9 PM

ALL Members are welcome to attend the meeting at

The Monoosnock Country Club located in Leominster, MA

“Landlords Helping Landlords” NWCLAnwcla.com/images/news/nwcla020109.pdfHow the Financial Rescue...

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Transcript of “Landlords Helping Landlords” NWCLAnwcla.com/images/news/nwcla020109.pdfHow the Financial Rescue...