For the first time in more than 25 years, Congress has raised the limit on federal deposit insurance coverage, which protects against loss if a banking institution fails. However, the higher insurance limit only applies to certain kinds of retirement accounts that people may have at banks and savings associations insured by the Federal Deposit Insurance Corporation (FDIC) and at credit unions insured by the National Credit Union Administration (NCUA).

The FDIC wants you to be clear about what has changed…and what hasn’t. Here is an introduction to what you need to know about your FDIC insurance coverage.

1. Certain retirement accounts at FDIC-insured banks and savings institutions will be insured up to $250,000, up from $100,000 previously.

The higher insurance coverage applies to traditional and Roth IRAs (Individual Retirement Accounts), Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plans for Employees (SIMPLE) IRAs. Also included are self-directed Keogh accounts, “457 Plan” accounts for state government employees, and employer-sponsored “defined contribution plan” accounts that are self-directed, which are primarily 401(k) accounts and include SIMPLE 401(k) accounts. In general, self-directed means that the consumer chooses how and where the money is deposited.

Under the FDIC’s new rules, which took effect on April 1, 2006, all of your deposits at the same insured bank that are in this broad category of retirement accounts are added together and the total is insured up to $250,000. Your retirement accounts also are separately insured from any other deposits you may have at the same institution.

This increase to $250,000 for retirement accounts is important because many people saving money for their retirement have accumulated well in excess of $100,000. With the higher FDIC coverage, more Americans who rely on banking institutions for safety and easy access will know that more of their money for retirement will be completely protected if their banking institution were to fail. There’s also the added convenience for people who, previously, might have gone to more than one institution to get full coverage of retirement deposits of more than $100,000.

2. The basic insurance coverage for other deposit accounts is still $100,000. However, as before, there are ways to qualify for far more than the basic coverage at one insured institution.

For example, the funds you have in checking and savings accounts (not retirement accounts) in your name alone are insured up to $100,000. Also, your portion of accounts held jointly with other people is also separately insured up to $100,000. Likewise, two other categories of accounts – business accounts you have at that bank and your share of employer-sponsored pension or profit-sharing plans – each qualify for separate insurance coverage of $100,000.

Let’s say you have four deposit accounts at one institution – a checking account in your name alone (totaling $25,000), a savings account you own jointly with your spouse (your share equals $40,000), an account for a corporation you own (totaling $90,000), and your portion of an employer-sponsored profit-sharing account ($30,000). Even though the four accounts add up to $185,000, all of the money is fully insured by the FDIC because each account is in a different ownership category that is separately protected to $100,000.

In addition, trust accounts may qualify for separate insurance coverage of $100,000 per beneficiary (not per depositor) if certain conditions are met. That means you could have a $200,000 trust account naming your spouse and a child as the beneficiaries upon your death and all $200,000 would be insured by the FDIC ($100,000 for each beneficiary), separately from the money you have in other types of accounts at the same institution.

And remember, your retirement accounts that will be protected under the new rules to $250,000 are insured separately from your other accounts.

As you can see, the way different types of accounts are separately insured can add up to a lot of coverage for you and your family from the FDIC. This can be confusing, so to learn more contact the FDIC as listed below.

3. The insurance limits could rise in the future, but not until 2011, if at all.

The new law establishes a method for considering an increase in the insurance limits on all deposit accounts (including retirement accounts) every five years starting in 2011 and based, in part, on inflation. Otherwise, your accounts will continue to be insured just as we’ve described them.

That’s an overview of what the new law means to you and your FDIC insurance. But here are some important reminders:

• No depositor has lost a single cent of FDIC-insured funds as a result of a failure. Fortunately, failures are rare nowadays. But if your bank or savings association were to fail, FDIC insurance would cover your deposit accounts, dollar for dollar, including principal and accrued interest, up to the insurance limit.

• FDIC insurance only applies to deposits, not investments. The FDIC protects checking accounts, savings accounts, CDs (special accounts you’d typically hold for anywhere from one month to five years) and other types of deposits. The FDIC does NOT insure the money you invest in products such as mutual funds, stocks, bonds, life insurance policies and annuities – even if you purchased them from an FDIC-insured institution.

• If you or your family have $100,000 or less in all of your deposit accounts at the same insured institution, you don’t need to worry about your insurance coverage. Your funds are fully insured. If you have more than $100,000 on deposit at any one institution, you should take the time to be sure they’re fully insured.

www.fdic.gov

1. The Value of an S-Corporation.

Every Realtor that is independently employed by brokers should seriously consider the use of an S-Corporation as their form of doing business. The major benefit to using an S-Corporation versus a Sole-Proprietorship is the ability to save on self-employment tax. The self-employment tax rate is 15.3% on every dollar earned, while through the use of an S-Corporation the owner can split salary and dividends to save dollars on the dreaded self-employment tax. As an added bonus, the S-Corporation provides liability protection for the Realtor and may protect their personal assets in the case of a lawsuit from a project gone bad.

2. Self Directed IRA’s.

In the last several years many more self directed IRA management companies have come into the market, providing IRA owners the ability to take their IRA funds out of the traditional stock market and invest their IRA funds in real estate. Often times, individuals would like to invest in real estate but do not have the available cash to afford the down payment and get the project ‘jump started.’ Utilizing IRA funds has become a very popular strategy in allowing people to better utilize their retirement funds. However, care must be given to plan appropriately with your accountant or tax attorney familiar with these types of transactions. Most IRA Managers require a Limited Liability Company (LLC) to hold the investment for the IRA and thus require further consultation and support. In sum, the time and cost to implement a self-direct IRA real estate project is affordable and often times outweighs other options.

3. 1031 Exchanges.

Although there has been a reduction in the capital gain rates through the Job’s and Growth Tax Relief Reconciliation Act of 2003, signed by President Bush in May of 2003, the 1031 Exchange is still very viable for real estate investors and their agents helping them to invest in property. The 1031 Exchange allows any property owner to exchange their property for equal or greater value into multiple pieces of property while deferring the capital gain tax regularly due upon sale. The higher the value of the property the greater the tax savings. Generally, it is going to behoove the investor or their agent to utilize the services of an intermediary 1031 exchange company. An intermediary handles the transactional documentation and escrow services while working closely with the title company during the purchase and sale of the properties.

4. Tax Benefits of Rental Real Estate.

Many new Realtors have not experienced the power of depreciation and flow through losses from rental real estate. Realtors should take the time to study and learn about rental real estate and the deductions related thereto, such as depreciation, chattels, and tax-free appreciation. Many times the greatest financial return from rental real estate is not the cash flow from the rental itself, but from the tax-free appreciation and the depreciation flow through losses from the operations of the business.

5. Stepped-up Basis in Capital Assets Upon Death.

Even with the current changes to the estate tax provisions of the Internal Revenue Code, the “stepped-up” basis provisions are still in effect for several more years. What these provisions provide is that when an individual passes away, any capital assets they owned receive a stepped up basis to fair market value. Sometimes, holders of real property will make the mistake of placing the children or other family member’s names on the asset that would have previously received a stepped up basis. Therefore, when a person passes away, only a portion of the property is stepped up due to the fact that they only owned a portion of the property. Agents and real estate investors should be very careful as to how they change the ownership of the property with a person that is older or has health concerns because the tax impact can be dramatic.

6. Estate Taxes.

Every real estate professional should be generally familiar with the estate tax provisions so they can advise their clients that own large pieces of property. It is too bad that some people “loose the Family Farm” due to the estate taxes because they were not properly advised to do estate tax planning. Many agents have land owners that are farmers and ranchers that have large tracts of land but are cash poor. These land owners should consider the use of Charitable Remainder Trusts and other mechanisms to save on potential estate taxes.

7. Keeping good records and planning.

Many business owners wait until April 15th to try to do their tax planning for the past year. It is critical that taxpayers keep good records of the tax deductions they are trying to take throughout the year and meet on a regular basis with their accountant or tax attorney to go over strategies that may be helpful in their business. Travel, entertainment, home office and advertising expenses are deductions a realtor should certainly consider and take advantage of. Due to poor planning and record keeping, many Realtors don’t take deductions that are legally theirs. In summary,  every Realtor should take the time to build a strong relationship with a business/tax planner that can facilitate and advise on many of the above strategies for the realtor and for the Realtor’s customers.

Excerpts taken from Chris Kohler’s Real Estate Report

This issue will be a major focus at an oversight hearing on FHFA held by the Capital Markets Subcommittee next month.   The House Financial Services Committee and Capital Markets Subcommittee have held five hearings on housing finance in 2010, and the FHFA oversight hearing is one of two new hearings on the topic planned for September.

“This week, the debate on the future structure of the U.S. housing finance system advanced greatly during the conference at the Treasury Department,” said Chairman Kanjorski, “In winding down Fannie Mae and Freddie Mac, we must carefully craft a solution that stabilizes our mortgage markets and ensures the continued availability of reasonably priced loans and affordable housing opportunities for all Americans. Simultaneously, FHFA must continue its efforts to protect taxpayers by recouping funds from the underwriters of faulty mortgages and the issuers of underwater securities purchased by Fannie Mae and Freddie Mac.”

On August 13th, Chairman Kanjorski and committee members Brad Miller (D-NC) and Jackie Speier (D-CA) addressed a letter to President Obama asking that any new Director of the FHFA aggressively pursue claims on behalf of Fannie Mae and Freddie Mac. 

“We must pursue legitimate legal claims to limit losses to taxpayers,” Rep. Brad Miller (D-NC) said. “Americans need to know that their government is acting on their behalf, not on behalf of powerful financial institutions.”

www.financialserviceshouse.gov

The National First Look Program is a first-ever public-private partnership agreement between HUD and the National Community Stabilization Trust (Stabilization Trust). In collaboration with national servicers, Fannie Mae, and Freddie Mac, the First Look program is intended to give communities participating in HUD’s Neighborhood Stabilization Program (NSP) a brief exclusive opportunity to purchase bank-owned properties in certain neighborhoods so these homes can either be rehabilitated, rented, resold or demolished.

“This groundbreaking agreement will help rebuild neighborhoods that have been struggling with blight and declining home values due to foreclosures,” said HUD Secretary Shaun Donovan. “Local communities will now get an exclusive option to buy foreclosed properties in targeted neighborhoods so they can turn the homes into affordable housing or, in some cases, tear them down. This agreement helps us level the playing field to give communities a better chance to stabilize these neighborhoods.”

“The Stabilization Trust is delighted to be working with HUD Secretary Donovan on the National First Look Program,” said Craig Nickerson, President of the NCST. “By serving as the operations ‘engine’ behind the First Look Program, the Stabilization Trust can facilitate the transfer of more foreclosed property for participating financial institutions to local community buyers, thereby accelerating the road to neighborhood recovery.”

HUD’s NSP grantees, which include state and local governments and non-profit organizations, often find themselves competing with private investors for real estate-owned (REO) properties, which can hinder their efforts to stabilize neighborhoods with high foreclosure activity. With today’s announcement, HUD and the Stabilization Trust, working with national servicers, Fannie Mae, and Freddie Mac, will standardize the acquisition process for NSP grantees, giving them an exclusive option to purchase foreclosed upon homes in certain targeted neighborhoods.

The Stabilization Trust pioneered the ‘First Look’ model to create a transparent and streamlined process to facilitate the transfer of foreclosed and abandoned properties from key financial institutions to local government housing providers. First piloted in 2008, the model has gained recognition as a critical tool for positively tipping the scale in neighborhoods hard hit by foreclosures. NSP grantees will also be aided by REOMatch™, a web-based mapping and acquisition management tool developed by the Stabilization Trust. REOMatch will assist NSP grantees easily identify REO properties and make more strategic decisions about which properties to acquire, based on real-time data on an interactive mapping platform.

The nation’s leading financial institutions are participating in the National First Look Program, representing approximately 75 percent of the REO marketplace. Participating institutions include: Bank of America, Chase, Citi, Deutsche Bank, GMAC, Nationstar Mortgage, Ocwen Financial Corporation, Saxon Mortgage Services, U.S. Bank, Wells Fargo, Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA).

The National First Look Program will allow NSP grantees the exclusive opportunity to purchase available REO properties located within the defined boundaries of NSP target areas. NSP grantees will be immediately notified when a property becomes available and will have 24-48 hours to express interest in pursuing a specific property. Furthermore, these institutions will provide NSP purchasers with the opportunity to purchase REO properties at a discount their appraised value, reflecting the cost savings of a quick sale. NSP grantees may acquire these properties with the assistance of NSP funds for any eligible use.

After expressing interest in a property, the First Look Period will last approximately five to 12 business days during which the NSP Grantee will conduct inspections and establish costs to repair in anticipation of the financial institution’s price offer. In the event that no NSP grantee exercises its preference to purchase an REO property during the First Look period, the financial institution will follow its normal process to sell the home on the open market.

Currently, the Federal Housing Administration (FHA) offers a complementary pilot program in which NSP grantees receive an exclusive option to purchase so-called ‘HUD Homes’ at a discount prior to those homes being made available to the investor community. The FHA pilot, alongside today’s agreement expands the opportunity for NSP grantees to gain access to REO properties through a national first-look standard option.

HUD’s Neighborhood Stabilization Program was created to address the housing crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate vacant homes. NSP grants are helping state and local governments, as well as non-profit developers, acquire land and property; demolish or rehabilitate abandoned properties; and/or offer downpayment and closing cost assistance to low- to middle-income homebuyers. Grantees can also stabilize neighborhoods by creating “land banks” to assemble, temporarily manage, and dispose of foreclosed homes. To date, HUD has allocated nearly $6 billion in funding to state and local governments and non-profit housing developments. In the coming weeks, HUD will allocate an additional $1 billion in NSP funding, which was provided through the Dodd-Frank Wall Street Reform and Consumer Protection Act.

www.hud.gov

The Gary May Group believes you will need some investment essentials, the first being capital.  Whether it is your own money, or someone else’s, it’s important to remember to attain the capital without putting yourself in debt.  Next, is knowledge.  Knowing the current real estate market and neighborhoods you want to buy are of utmost importance.  The Gary May Group has years of real estate experience and can make some recommendations of the best locations to buy property. Another essential is good management, people and negotiating skills; all three of these will be provided by the Gary May Group.  We’ll get you the best deal and work with you on managing your investment.

After the essentials comes patience.    Buying a piece of property requires a lot of commitment and follow through.  The costs alone are fairly high and not only include the purchase, but things associated with the purchase such as loan fees, and inspections.  Once you have purchased your property, there will be on going costs like maintenance, taxes, homeowner fees and advertising costs when/if you decide to sell it.

On the flip side, investing in real estate can offer lots of great tax breaks. The interest, taxes and insurance are all deductibles.

Finally, buying real estate is a great way to diversify your investments. portfolio  If you have a lot of money in stocks, bonds and 401Ks, it makes sense to diversify and hold part of your portfolio in real estate.  For further explanation, contact the Gary May Group.

If you can afford to buy real estate and you have the credit to do so, now is the time to buy.  Foreclosures and short sales are abundant and provide an excellent opportunity to purchase a home or land, many times below replacement cost.  Each time the banks sell a property, it makes way for a new comparable for the neighborhood which very well may lower the average sales prices for other homes on the market.  In addition, we are now seeing properties with positive cash flow and interest rates that are very low. Don’t miss this opportunity, call the Gary May Group today and invest in a piece of real estate.  It’s a smart move!

The foreclosure epidemic ravaging cities and states across the U.S. shows no end in sight, with no real relief available to the vast majority of workers, homeowners and renters. More than 2.3 million households have been forced out of their homes due to foreclosure and repossession by the banks and lenders since the economic crisis officially began in December 2007. A million more will likely be added to those ranks this year, with some economic forecasters predicting 1.5 million additional foreclosures in 2011.

But nearly half of the only 1.3 million homeowners who were accepted into the HAMP have not received permanent loan modifications and face or have gone through foreclosure.

According to the Treasury report, about 48 percent of those who had enrolled in the program since March 2009 — some 630,000 homeowners who tried to get their monthly mortgage payments lowered to 31 percent of their gross income — have been cut loose through the end of July. Only 32 percent of those who started the program have been able to get permanent loan modifications to save their homes. (Associated Press, Aug. 20)

In Michigan, one of the states deeply impacted by the racist subprime mortgage catastrophe and the ensuing record rate of foreclosures and evictions, the “Helping Hardest Hit Homeowners” program started on July 12 with the stated goal of keeping unemployed homeowners out of foreclosure.

New foreclosures in the state are skyrocketing as layoffs, plant closings and unemployment soar. The city of Detroit has been particularly devastated.

The program was supposed to utilize $154.5 million in federal funds from the U.S. departments of Treasury and Housing and Urban Development to pay up to half of a home mortgage, up to $750 per month for one year, for laid-off workers who are drawing unemployment benefits. On Aug. 13 it was announced the state would receive an additional $128 million for the program.

Untold thousands in Michigan, like millions of workers around the country, have exhausted their unemployment benefits and/or are no longer “counted” as unemployed because they have given up searching for jobs during this period of economic contraction for workers. So they don’t even qualify for the “Helping Hardest Hit” program, which was supposed to help only 17,000 unemployed homeowners in the state.

But for those unemployed workers who might qualify, the Michigan program has also proven to be a failure. Why? Because most banks and lenders have refused to participate. Not a single one of the major lenders has signed on to the program. Even Gov. Jennifer Granholm was recently forced to admit this.

Exposing gov’t complicity

in foreclosures

Instead of using her executive authority, however, to place a moratorium or freeze on foreclosures or mandate the banks to participate in the program, Granholm is urging unemployed homeowners to “call their lenders.” It is a long-established fact that homeowners do not obtain mortgage relief by “calling their lenders.”

The Detroit-based Moratorium NOW! Coalition to Stop Foreclosures, Evictions and Utility Shutoffs has been in the forefront of exposing the reasons why the federal HAMP and Michigan’s “Helping Hardest Hit” programs have failed.

Coalition leader and anti-foreclosure attorney Jerry Goldberg first exposed the debacle of the federal government’s program in a Workers World article entitled “Millions more to lose homes: Gov’t continues to bail out bankers, not homeowners.” (Dec. 31, 2009)

Goldberg was heard Aug. 16 on WDET public radio slamming the banks and lenders and the federal government for their complicity in tossing people out of their homes. “There’s no stick involved,” said Goldberg. “Instead of saying we’re not going to allow foreclosures unless the banks participate in the programs, [the government] simply depends on the goodwill of the banks — the same banks that make money off foreclosures … and the same banks that get subsidized with every foreclosure. … At the root of this crisis is that there’s a bailout going on with virtually every foreclosure.”

Goldberg explained how a majority of mortgages in the U.S. are now owned or backed up to their inflated, pre-foreclosure value by the federal government entities of Freddie Mac, Fannie Mae and HUD.

“Already $145 billion has been paid out by the taxpayers to the banks through Freddie and Fannie to cover losses on bad loans. The total bill is anticipated to reach $389 billion. This means that every foreclosure in essence constitutes a bailout to the banks, which are paid off for the full value of the inflated loan — a loan foisted on homeowners by the predatory and fraudulent practices of these same banks. The lenders are actually being rewarded for not modifying loans.” Goldberg told Workers World.

“The government, instead of helping homeowners keep their homes, carries out most evictions now, and then the home is sold at a minimum price; in Detroit, for example, homes are sold at about 10 percent of a loan’s value, with the taxpayers making up the difference. The federal and state governments have the authority, however, to put a halt or moratorium on foreclosures, to mandate that banks modify loans and allow people to reclaim their homes at real value and based on payments that they can afford.

“It will take a continued struggle to wrest a moratorium — which doesn’t cost a dime — from the politicians who represent banks instead of people.”

In the past two years, HUD allocated more than $5.6 billion in disaster recovery funding through its Community Development Block Grant (CDBG) to these states. The DREF was established to support the long-term recovery following dozens of natural disasters in 2008. As a result of having received CDBG funds for those disasters, these 13 states were eligible to receive additional allocations based on the significant investment they’ve made by targeting their CDBG funds to disaster mitigation.

“An ounce of prevention today can spare communities a world of hurt tomorrow,” said Donovan. “We’re making a serious investment in our future by making certain that when disaster strikes, the impacted communities in these states can weather the storm.”

Disaster mitigation, like those that qualify for funding through the DREF, are a sound investment. According to an independent study by the National Institute of Building Sciences, every dollar spent on disaster mitigation activities saves taxpayers $4 in future disaster recovery expenses. The 13 states that received funding through the DREF invested nearly $876 million in disaster mitigation which translates into a total anticipated return on investment of more than $3.5 billion.

The purpose of the DREF is to reward states that invested CDBG disaster recovery funding in activities that reduce risks from future disasters. HUD recognizes that while these types of activities are often more expensive in the short-term, they dramatically cut recovery costs over the long-term. To help assist with the additional cost of mitigating future risk, DREF funds can be used toward projects meeting unmet disaster recovery needs, and those that include:

• Buyout payments for homeowners living in high-risk areas;
• Optional relocation payments to encourage residents to move to safer locations;
• Home improvement grants to reduce damage risks (property elevation, reinforced garage doors and windows, etc.);
• Improving and enforcing building codes; and
• Developing forward-thinking land-use plans that reduce development in high-risk areas.

HUD is awarding DREF grants to the following states:

www.hud.gov

Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortest-term mortgage you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate mortgage than you would on a 30-year fixed rate mortgage.

 You can save thousands of dollars in interest charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year $100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $1,000.

 Check the Internet or your local newspaper for mortgage rate surveys, then call several lenders for information about their rates (APRs), points, and fees. If you choose a mortgage broker, make certain to compare their offers with those of direct lenders.

 Be aware that the interest rate on most adjustable rate mortgages (ARMs) can vary a great deal over the lifetime of the loan. An increase of several percentage points might raise payments by hundreds of dollars a month, so ask the lender what the highest possible monthly payment might be.

Mortgage Refinancing

 Consider refinancing your mortgage if you can get a rate that is lower than your existing mortgage rate and plan to keep the new mortgage for at least several years. Calculate precisely how much your new mortgage (including points, fees and closing costs) will cost and whether, in the long run, it will cost less than your current mortgage.

Home Equity Loans

 Be cautious in taking out home equity loans. The loans reduce or may even eliminate the equity that you have built up in your home. (Equity is the cash you would have if you sold your house and paid off your mortgage loans.) If you are unable to make payments on home equity loans, you could lose your home.

 Compare home equity loans offered by at least four reputable lending institutions. Consider the interest rate on the loan and the annual percentage rate (APR), which includes other costs, such as origination fees, discount points, mortgage insurance, and other fees. Ask if the rate changes, and if so, how it is calculated and how frequently, as this will affect the amount of your monthly payments.

Home Purchase

 You can often negotiate a lower sale price by employing a buyer broker who works for you, not the seller. If the buyer broker or the broker’s firm also lists properties, there may be a conflict of interest, so ask them to tell you if they are showing you a property that they have listed.

 Do not purchase any house until it has been examined by a home inspector that you selected.

Renting a Place to Live

 Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to live and contact their building manager or owner to see if anything is available.

 Remember that signing a lease probably obligates you to make all monthly payments for the term of the agreement.

Home Improvement

 Home repairs often cost thousands of dollars and are the subject of frequent complaints. Select from among several well established, licensed contractors who have submitted written, fixed-price bids for the work.

 Do not sign any contract that requires full payment before satisfactory completion of the work.

Major Appliances

 Consult Consumer Reports, available in most public libraries, for information about specific appliance brands and models and how to evaluate them, including energy use. There are often great price and quality differences. Look for the yellow Energy Guide label on products, and especially for products that have earned the government’s ENERGY STAR®, which can save up to 50% in energy use.

Once you’ve selected a specific brand and model, check the Internet or yellow pages to learn what stores carry the brand. Call at least four of these stores to compare prices and ask if that’s the lowest price they can offer you. This comparison shopping can save you as much as $100 or more.

Heating and Cooling

 A home energy audit can identify ways to save up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or gas utility if they audit homes for free or for a reasonable charge. If they do not, ask them to refer you to a qualified professional.

 Enrolling in load management programs and off-hour rate programs offered by your electric utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs.

Telephone Service

Once a year, review your phone bills for the previous three months to see what local, local toll, long distance, and international calls you normally make. Call several phone companies which provide service in your area (including wireless and cable), to find the cheapest calling plan that meets your needs. Consider a bundled package that offers local, local toll and long distance, and possibly other services, if you heavily use all the services in the bundle.

Check your phone bill to see if you have optional calling features or additional services, such as inside wire maintenance, that you don’t need. Each option you drop could save you $40 or more each year.

 If you make very few toll or long distance calls, avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10 numbers or prepaid phone cards for your calls. When shopping for dial around service, look for fees, call minimum, and per minute rates. Treat prepaid cards as cash and find out if there is an expiration date.

 If you use a cell phone, make sure your calling plan matches the pattern of calls you typically make. Understand peak calling periods, area coverage, roaming, and termination charges. Contracts offered by most carriers will provide you with a trial period of 14 days or more. Use that time to make sure the service provides coverage in all the places you will be using the phone (home, work etc.). Prepaid wireless plans tend to have higher per minute rates and fees but may be a better option if you use the phone only occasionally.

 Before making calls when away from home, compare per minute rates and surcharges for cell phones, prepaid phone cards, and calling card plans to find how to save the most money.

 Dial your long distance calls directly. Using an operator to place the call can cost you up to $10 extra. To save money on information calls, look the number up on the Internet, or in the directory.

www.pueblogsa.gov

While the nearly 20-year-old HOPE VI Revitalization Program has been successful at transforming neighborhoods with distressed public housing into revitalized mixed-income communities, Choice Neighborhoods aims to use a more comprehensive approach to community development with housing transformation as its center.

“We have seen remarkable success under our HOPE VI program over the last 17 years. This funding will help continue that work to transform public housing projects and improve outcomes for tens of thousands of public housing tenants,” said HUD Assistant Secretary for Public and Indian Housing Sandra Henriquez. “But even some of the best HOPE VI projects are islands of hope surrounded by a sea of need. By coupling this round of HOPE VI funding with the first awards in our Choice Neighborhoods initiative, we’re transitioning toward investing in strategies to address interconnected challenges – housing decay, crime, lack of educational prospects and economic connections – that keep families and communities in severe distress.”

The pilot year Choice Neighborhoods competitive program will award up to $65 million to public housing authorities, local governments, nonprofit organizations, and for profit developers that apply jointly with a public entity to extend neighborhood transformation efforts beyond public and/or assisted housing, to link housing revitalization with education reform and early childhood education.

“We are proud to work with HUD to ensure that there are great schools at the center of every Choice Neighborhood,” said Assistant Deputy Secretary Jim Shelton of the Department of Education’s Office of Innovation and Improvement. “Our partnership is an important step to breaking down Federal agency silos and providing comprehensive tools to revitalize neighborhoods of concentrated poverty into neighborhoods of opportunity.”

Choice Neighborhoods Planning and Implementation Grants – The $65 million Choice Neighborhoods pilot expands HOPE VI’s redevelopment toolkit to allow for redevelopment of both public and other HUD-assisted housing properties. This means that the disinvested assisted housing that frustrated cities and housing authorities and fostered crime and blight can now be included in comprehensive neighborhood revitalization efforts. The program also widens the traditional pool of eligible applicants by allowing local governments, nonprofits and for-profit developers that submit joint applications with a public entity.

Applicants have until October 26, 2010 to apply for Choice Neighborhoods Planning or Implementation grants. It is anticipated that 12-15 Planning Grants will be made with a maximum award of $250,000 each.

Decisions on Implementation grant applications will be made through a two-round application process. Upon conclusion of its review in Round 1, HUD will select approximately 10 finalists and publish a Round 2 NOFA. Finalists will have the opportunity to submit a more detailed plan for community transformation. Approximately 2-4 implementation grants will then be awarded, at a maximum of $31 million each.

“This dual-round process was designed to better serve applicants,” said HUD Deputy Assistant Secretary for Multifamily Housing Programs Carol Galante. “By making our initial decisions on summaries, we hope to minimize applicants’ financial investments to develop deeper, more comprehensive transformation plans and concentrate on those proposals most poised to make substantive change in our nation’s most distressed communities.”

HOPE VI Revitalization Awards- There have been 254 HOPE VI Revitalization grants awarded to 132 housing authorities since 1993 – totaling more than $6.1 billion. These grants have transformed severely distressed public housing developments to mixed-income communities. Revitalization grant funds are used for an array of activities, including: demolition of severely distressed public housing; acquisition of sites for off-site construction; capital costs of major rehabilitation, new construction and other physical improvements; and community and supportive service programs for residents, including those relocated as a result of revitalization efforts.

HOPE VI Revitalization grant applicants will have until November 22, 2010 to submit applications. It is anticipated that five to six grant awards will be made, with a maximum award of $22 million each.

www.hud.gov