Austin Real Estate and Investment Properties

Austin ranks #1 in fastest growing city in Forbes.

Craig Ellmaker — Thu, 03 May 2012 03:05:00 GMT

America's Fastest-Growing Cities Texas once again dominates Forbes' list of America's Fastest-Growing Cities, as the Lone Star State capitalized on low taxes and cheap real estate to draw in jobs from the rest of the country. To construct this list, we pulled data from Moody's Analytics on the 100 largest metropolitan areas, giving extra weight to projected economic growth and subtracting points for low median incomes and high unemployment rates. The result is a list of cities that...(read more)

Austin No. 1 for job creation since 2004

Craig Ellmaker — Tue, 03 Apr 2012 03:59:00 GMT

Austin No. 1 for job creation since 2004: Austin Business Journal Friday, March 23, 2012, 6:53am CDT Revised unemployment data shows that Austin leads the nation for job growth over the past eight years. The Capitol City took the top spot among the 50 largest metro areas in the United States for creating 140,200 new jobs since 2004 — a 21.3 percent percent increase. Houston was ranked No. 2 with 15.7 percent jobs growth. http://www.bizjournals.com/austin/blog/morning_call/2012/03/austin-no-1-for-job-creation-since-2004.html?ana=e_aus_rdup...(read more)

Top 10 markets to invest in

Craig Ellmaker — Tue, 03 Apr 2012 03:56:00 GMT

Top 10 markets to invest in Realtor.com analysis examines inventories, price trends and unemployment in 146 markets By Inman News, Friday, March 23, 2012. Realtor.com's latest top 10 investment markets report shows metros just off the beaten path leading the way. Built from Realtor.com data updated through February 2012, the report put Tucson, Ariz.; Austin, Texas; and Kansas City, Mo., as the top current real estate markets to invest in. The top 10 list was built by analyzing the housing inventories,...(read more)

Housing Crisis to End in 2012 as Banks Loosen Credit Standards

Craig Ellmaker — Mon, 05 Mar 2012 17:45:00 GMT

01/24/2012 By: Krista Franks Brock Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit. The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago. Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past...(read more)

New Homestead Exemption Requirements

Craig Ellmaker — Wed, 28 Sep 2011 23:03:00 GMT

Under a law passed by the Texas Legislature, homeowners who apply for a new
property tax homestead exemption must provide proof to the county
appraisal district that they live in the house they claim as their principal residence.
The new law took effect September 1st, 2011.

House Bill 252 requires a copy of the homeowner’s Texas driver’s license or state
identification card and the homeowner’s vehicle registration receipt be sent with the
homestead exemption application. If the homeowner does not own a vehicle they
can send a current utility bill showing name and address, along with an affidavit provided
in the application indicating non-ownership of a vehicle.

For more details, click here to read the full State of Texas,
Susan B. Combs Texas Comptroller of Public Accounts press release.

Click here to download the homestead exemption application form for
property owners and county appraisal districts.

For more info contact Ellmaker Realty at info@ellmakerrealty.com

Why Investors Like Texas

Craig Ellmaker — Wed, 07 Sep 2011 02:23:00 GMT

Why Investors Like Texas

Posted on August 29, 2011 by Mark Dotzour

Texas Investment Paradigm

Each year I make presentations to high-net-worth investors and private equity fund managers. Frequently, these people live in New York or Laguna Beach but invest a sizable portion of their funds in Texas real estate. They understand “the Texas investment paradigm.”

Why is it that Texas is such an attractive investment for these large investors? My colleague Dr. Ali Anari and I have come up with nine reasons:

Texas is coming out of the Great Recession and leading the United States in the current economic recovery.
The Texas economy is big and growing.
The Texas economy is profitable.
Texas has a growing population.
Texas economy is an international economy.
Tax burden is less in Texas.
Texas has an affordable housing sector.
Texans have entrepreneurial spirit.
Texans are mobile.

Actually, there is a 10th reason, but we won’t publish it, because we don’t want Michigan or California to know about it.

Reason One: Texas is leading the nation out of recession

The Texas economy suffered less in terms of lost jobs and output in the Great Recession. The duration of the recession, measured in terms of the number of months of job losses, was shorter for Texas while the intensity of the recession, measured in terms of the highest job loss rate in the trough month, was lower for Texas than for the nation.

While the U.S. economy experienced its first month of job loss in May 2008, Texas continued to create jobs for eight more months until January 2009. The state’s economy experienced job losses for 16 months from January 2009 to April 2010 compared with 28 months for the nation from May 2008 to August 2010.

The Texas economy proved its resilience, and now is leading the U.S. economic recovery. From May 2010 to May 2011, the U.S. economy added 946,000 jobs, 198,400 of which, or 20.9 percent, were generated in Texas.

The chart and the table paint a pretty picture. I will discuss the other reasons Texas is attractive to investors in posts to come.

Contact Craig Ellmaker at craig@austin-cashflow.com or 512-294-3067 for information on Real Estate investments in the Austin area.

Austin home prices up by 10%

Craig Ellmaker — Tue, 21 Dec 2010 20:18:00 GMT

Austin home prices improved year-over-year last month, while total sold fell 31 percent from October 2009, the Austin Board of Realtors reported Thursday.

The group's Multiple Listing Service data showed total homes sold decreased to 1,221 in October, while home listings were up 8 percent to 9,703 properties on the market. At the same time, the median price jumped 10 percent to about $198,500.

“Higher priced homes have continued to sell well over the last few months. This trend has been a driver in the steady increases in the median and average prices the market has experienced during the same period,” Austin Board of Realtors Chairman John Horton said.

“It has been a unique year in evaluating trends in the real estate market due to the impact of the expired homebuyer tax credits. Monthly comparisons are still being skewed by the artificial stimulus the tax credits provided.”

Sales volume year-to-date was down 5 percent compared with the same 10 months last year, with a total 15,228 homes sold. Austin residential properties spent an average of 92 days on the market last month, up 26 percent from 2009.

Sales activity in the higher prices ranges continued to increase on a year-to-date basis in October with homes priced at $500,000 and above experiencing double-digit increases, according to the report.

Austin Makes Top Ten List Again!

Craig Ellmaker — Mon, 20 Sep 2010 22:45:00 GMT

10 Markets Most Likely to Appreciate
Forbes magazine turned to real estate research firm Local Market Monitor to figure out which markets have the greatest likelihood of price appreciation because they offer a mix of jobs weighted toward growth industries.

These are the top markets, the research company concludes:

1. Raleigh-Cary, N.C.
2. McAllen-Edinburg-Mission, Texas
3. Austin-Round Rock, Texas
4. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
5. San Antonio, Texas
6. Colorado Springs, Colo.
7. Albuquerque, N.M.
8. Denver-Aurora-Broomfield, Colo.
9. Springfield, Mo.
10. Indianapolis-Carmel, Ind

The Strengh of Texas Real Estate

Craig Ellmaker — Wed, 14 Jul 2010 01:46:00 GMT

Here are two interesting articles from the Wall Street Journal about the strength of the Texas real estate market. The first article discusses the attractiveness of investing in the stock of publicly traded, Texas homebuilders. Because the broader economic indicators in Texas point to a stronger economic recovery in Texas (and less of a recession to start with), and because home prices never spiraled out of control in major urban areas of Texas, a lot of investors are betting on the long term viability of new home builders in Texas, as demand continues to grow (Note: the full text of this article is available only to online subscribers, but the summary can be accessed).

The second article from the WSJ site, Marketwatch.com highlights a recent NAR study which shows foreign buyers are purchasing homes primarily in 4 states over the past year: Arizona, California, Florida and Texas. The fact that Texas rates among the top four, without having suffered the same catastrophic reductions in real estate values as the other three, says a lot about the stability of home values in the Texas housing market, and is certainly something worth mentioning to prospective home buyers. The largest number of foreign buyers are from Canada, followed by Mexico, the United Kingdom and China. As a group, 55% of foreign buyers paid cash, compared with only 8% of U.S. buyers paying cash in the last year.

Austin best economic recovery in U.S. Austin Business Journal

Craig Ellmaker — Tue, 09 Mar 2010 18:04:00 GMT

Forbes: Austin best economic recovery in U.S. Austin Business Journal The Austin-Round Rock area tied for first on a list of large metros where the recession is easing. Central Texas tied Washington D.C. in the Forbes.com ranking that compiles job growth and real estate industry improvement, among other indicators. Washington has one of the lowest unemployment rates in the nation, 6.2 percent, and the city produced more goods and services than another other in 2008. Austin has also maintained relatively lower jobless rates, though the number increased to 7.6 percent last month from 7 percent, according to the Texas Workforce Commission. Statewide, the rate was unchanged at 8.2 percent from December to January, compared to 9.7 percent nationally. Austin and Washington D.C. also benefit from their high government job generation, according to Forbes. The number of Central Texas jobs increased just shy of 1 percent between 2007 and 2009, more than any other city included in the research. Dallas came in second on the ranking behind Austin. The number of jobs there are expected to increase more than 7 percent in the next three years. San Antonio and Houston also made the top 10 list. Job growth projections were based on information from Moody's. The listing also considered median home sale price changes and Metropolitan Gross Domestic Product.

For more information please contact Craig Ellmaker at craig@ellmakerrealty.com

Facebook opening 200-person Austin office

Craig Ellmaker — Fri, 26 Feb 2010 14:50:00 GMT

Thursday, February 25, 2010, 9:58am CST Facebook opening 200-person Austin office Austin Business Journal - by Jacob Dirr Staff Writer Facebook is creating 200 jobs in Austin, thanks to a $1.4 million incentive from the state of Texas. The move will be the first major U.S. expansion outside of Palo Alto, Calif., where the company is headquartered, according to officials. It is investing about $3.1 million to set up operations in Texas, according to Gov. Rick Perry's office. Facebook employs about 800 people. It reported about $50 million in revenue last year. 'Facebook continues to grow and Austin, with its deep talent pool, would allow us to hire the high-caliber employees we need to properly serve the people, advertisers and developers that rely on our service,' Facebook Chief Operating Officer Sheryl Sandberg said. Gov. Perry said the new jobs will enhance the Central Texas’ robust technology industry and strengthen the economy. All contents of this site © American City Business Journals Inc. All rights reserved. Link to Article: http://austin.bizjournals.com/austin/stories/2010/02/22/daily44.html

For more info about the Austin are please contact Craig at craig@ellmakerrealty.com

Forbes and Moody’s Economy.com projects Austin's economy will grow by 32%

Craig Ellmaker — Tue, 12 Jan 2010 13:58:00 GMT

In the late 80’s and early 90’s in Austin, job growth stopped, real estate values dropped and people left town. Probably because of the severity of that recession, Austin has faired much better this time. Home prices did not increase more than could be supported by median family incomes. Thanks to Texas’s home equity laws, consumers could not borrow against their home appreciation nearly as easily as homeowners in other states – which helped keep home prices stable and consumer debt manageable. If you don’t have a bubble then you don’t have a bust. While most other major real estate markets have seen home prices drop by as much as 50% and experienced high unemployment, Austin’s median home price has been stable or seen only a small drop. Job losses have been slight.

Now, Forbes and Moody’s Economy.com projects Austin's economy will grow by 32% over the five year period from 2007 to 2012. Not only is Austin’s economy growing, but it's growth rate is nearly 50% higher than #2 ranked Fort Myers, Florida. Equally important to Austin’s economic growth is Austin's population growth which is expected to grow by an amazing 15%.

“To compile our list, we looked at all of the country's 363 metropolitan areas, defined by the U.S. Census Bureau as a geographic region with a "core urban area" of at least 50,000 people. Because many small metro areas are high growth--and because we wanted to show growth in large cities as well--we split the group into two classes: the largest 100 metro areas (with at least 528,000 people) and everyone else. We use projections run for us by Moody's Economy.com to show growth in GMP between 2007-2012.

Of course, if one looks at economic growth in the country's largest 100 metros, the usual suspects jump to the top of the list. With an estimated 32% GMP growth from 2007-2012, Austin, Texas, is the winner for big metros. Atlanta, Seattle, Orlando, Houston and San Jose, Calif., also appear high on the list. What do they all have in common? They're tech hubs with proximity to universities and a healthy increase in population. Austin's population, for example, is expected to increase by nearly 15% by 2012, according to Moody's Economy.com forecasts.”

Full Article: http://www.forbes.com/2008/01/30/economy-cities-alabama-biz-cx_bw_0130econcities.html

For more info contact Craig Ellmaker at craig@austin-cashflow.com

Memo to working moms: Austin's your kind of town

Craig Ellmaker — Fri, 07 Aug 2009 15:13:00 GMT

Wednesday, August 5, 2009, 11:47am CDT
Austin Business Journal

Memo to working moms: Austin's your kind of town

Working moms trying to balance family and the workplace may be better off in Austin than a lot of other cities around the country.

That according to ForbesWoman's first ever list of the "Best Cities for Working Mothers," which ranks Austin second, just behind No. 1 New York City.

“There are numerous considerations for what working moms want in their choice of a city,” said ForbesWoman writer Heidi Brown, who edited the list. “We based our rankings on the premise that different mothers have different needs. Beyond good healthcare and safety, mothers who work want a city which offers plentiful jobs, high salaries and abundant daycare options.”

To create the list, ForbesWoman ranked 50 of the largest continental U.S. metropolitan statistical areas by different categories, from earnings and unemployment to number of daycare and preschools and per-capita expenditure per pupil.

Rounding out the top 10 cities on the list, in order, are Minneapolis-St. Paul, Milwaukee, Portland, Cincinnati, San Jose, Pittsburgh, Seattle-Tacoma and Denver.

For more info about the Austin area please contact Craig Ellmaker at 512-784-1494 or at craig@ellmakerrealty.com

BUYERS! TIME TO BUY!`

Craig Ellmaker — Sat, 09 May 2009 02:54:00 GMT

Information provided by Ted C. Jones, PhD, Senior Vice
President—Chief Economist, Stewart Title Guaranty Company. --April
2009

Time to buy is RIGHT NOW!
U.S. home prices have declined across the nation in the past
year—albeit at varying levels. Latest national price declines range
from as little as 4.5 percent (Dallas, Texas) on a year-over-year
basis in February to as great as 35.2 percent (Phoenix, AZ) according
to S&P’s Case-Shiller Home Price Indices.

It is the anticipation by many prospective buyers for further home
price erosion that keeps them on the sidelines and from participating
in homeownership despite the lowest interest rates since Freddie Mac
commenced the statistical series in 1971.

While further price declines may be realized, the likelihood of
rising interest rates makes purchasing now a better option than
waiting for further potential value declines. Simply stated, there is
a greater possibility of interest rate increases than potential value
declines. Even with the price decline, the interest rate increase may
result in the buyer no longer being able to qualify for a loan on a
home they wish to purchase for which they qualify today. Despite
facing a potential in declining home values, now may be a better time
to buy.

To make the comparison simple, let’s assume a loan amount today of
$100,000 with a 30-year fixed-rate residential loan at 5 percent.
Nationwide at the time of this writing, the average 30-year rate was
4.85 percent per Freddie Mac.

A buyer today at 5 percent interest borrowing $100,000 has a monthly
principle and interest payment of $536.82. If prices decline 5
percent (and the loan amount does also) and interest rates rise just
½ of 1 percent, then the monthly payment remains the same ($539.40).

So if rates go up just 1 percent to 6 percent per year, then prices
must drop at least 10 percent for that same buyer to qualify for the
same monthly payment. A 1.5 percent increase in rates to 6.5 percent
requires a 15 percent price decline, and a 2 percent increase
necessitates a 20 percent price decline to qualify.

(Note: This 1 percent interest rate change to a 10 percent price
change is only true when interest rates are 5 percent as they are
today.)

Why will rates increase in the future more than prices decline?
Looking at the S&P’s Case-Shiller Home Price Indices, the aggregate
20-city prices have already declined 29.1 percent since peaking in
July 2006. For many cities, much of the price decline has already
taken place. And Austin has seen very little decline in the median
home price! And why will rates increase? Massive deficit spending has
a high potential to drive up inflation and hence interest rates.
Additionally, since these are the lowest rates since 1971, it’s not
hard to project the likelihood of rate increases.

So NOW may be the best time ever to buy a home and take advantage of
truly historic low interest rates!

Contact Craig Ellmaker at craig@austin-cashflow.com or at 512-784-1494

Austin ranks No. 1 for job growth potential

Craig Ellmaker — Thu, 16 Apr 2009 20:53:00 GMT

Tuesday, April 14, 2009, 1:28pm CDT

Austin ranks No. 1 for job growth potential

Texas dominates a new list on job growth potential among the nations
largest metropolitan areas.

Austin ranks No. 1 on the list of big cities for employment potential
from NewGeography.com. The Capital City posted modest job growth of
just 1 percent in 2008 but that was still better than a lot of other
big cities. That growth, coupled with Austins long-term potential to
continue creating new jobs, garnered it the top spot.

Texas major metros round out the top five spots on the big cities
list, with Houston coming in 2nd, San Antonio 3rd, Fort
Worth-Arlington 4th and Dallas 5th.

The list, based largely on job growth in regions across the nation
over the long, middle and short term, has changed over the years, but
the reports authors say the employment landscape has never looked
like this.

'In past iterations, we saw many fast-growing economies--some adding
jobs at annual rates of 3 percent to 5 percent,' said research Joel
Kotkin. 'Meanwhile, some grew more slowly, and others actually lost
jobs. This year, however, you can barely find a fast-growing economy
anywhere in this vast, diverse country. In 2008, 2 percent growth
made a city a veritable boom town.'

Consequently, Kotkin said, this year’s list might more aptly be
called the “'east worst.' Still, he said, those least worst economies
today largely mirror those that topped last years list, even if
those regions have recently experienced less growth than in prior
years.

In Austin for instance the 1 percent job growth in 2008 was less than
a third of its annual average since 2003.

Looking at the complete list of metro areas—including large, medium
and small cities Texas again does well in the top five. Odessa ranks
No. 1 on the overall list, followed by Grand Junction, Colo.;
Longview; Houma, La.; and Killeen-Temple.

Contact Craig Ellmaker, Broker for more details at craig@austin-cashflow.com or 512-784-1494

Understanding Housing Tax Credits

Craig Ellmaker — Tue, 10 Mar 2009 15:35:00 GMT

The First-Time Homebuyer Credit is definitely a hot topic in the marketplace. Since a lot of consumers are still confused on the details, I have provided you a link to the IRS website. You will find the IRS 5405 form with all of the details including eligibility, amount of the credit, repayment of the credit, etc.

http://www.irs.gov/pub/irs-pdf/f5405.pdf

Understanding Housing Tax Credits

There's upside to going green, doing short sale

By Ilyce Glink, Thursday, March 5, 2009.

inman News

Editor's note: The original article contained an error. Those homebuyers who are eligible for the $8,000 tax credit can claim that credit when filing their 2008 tax return.

As we move further into tax season, Treasury and IRS employees have been busy filling in the missing pieces on all of the new tax laws that were passed as part of the recent stimulus package.

When it comes to real estate, the rules are at best confusing. Let's shed a little compact fluorescent light on the subject:

2008 $7,500 tax credit vs. 2009 $8,000 tax credit

If you were a first-time buyer who purchased a home after April 8, 2008 through the end of the year, you might have realized that you could get a $7,500 tax credit on your 2008 tax return. This is a nonrefundable tax credit, which means that even if you don't pay $7,500 in taxes you'll still get that much in the way of a refund, provided you meet other qualifying details, according to Mark Luscombe, principal analyst for the tax and accounting group at CCH.

However, the 2008 $7,500 tax credit must be paid back in $500 equal installments over 15 years, which means that this tax credit effectively functions as a zero-interest loan. (Luscombe said the fine print in the new law says that if the taxpayer dies, the rest of the payback is forgiven. It's unclear whether both homeowners have to die if the property is owned jointly -- or just one of the homeowners.)

If you chose to close on Dec. 31, 2008, rather than Jan. 2, 2009 (perhaps to be able to itemize the interest and points on your 2008 tax return), you may be kicking yourself. The recently signed stimulus bill took the $7,500 tax credit and turned it into an $8,000 tax credit -- one that doesn't need to be repaid, Luscombe said.

But there are some wrinkles that require you to pay attention. To qualify for the $8,000 tax credit, you must earn less than $150,000 in adjusted gross income for couples filing jointly. Also, you must stay in the house (assuming it's your primary residence) for three years or there may be some payback requirement, according to Luscombe. (He's unclear how the IRS would be able to follow up, and some of the regulations and filing requirements aren't fully explained at the moment.) ... CONTINUED

The $8,000 first-time-buyer credit is good only for homes purchased by first-time buyers (or anyone who hasn't owned a home in the last three years) from Jan. 1, 2009 through Nov. 30, 2009 -- so don't wait to close in December or you'll miss out.

You can elect to take the credit on your 2008 taxes -- if you bought your house in 2009, you'll still qualify for the $8,000 tax credit on your 2008 tax return.

Going Green? Take a Tax Credit

The stimulus package eased requirements on energy tax credits. The $500 lifetime tax credit for building improvements has been increased to $1,500 for such improvements as the installation of energy-efficient windows, insulation, doors and mechanical systems.

In addition, you can take a 30 percent tax credit for every dollar you spend on things like solar heaters, fuel cells and heat pumps, Luscombe explained. The individual limits on particular expenditures have mostly been eliminated.

Foreclosure and Short-Sale Forgiveness

For those who are going through foreclosure or a short sale, where the house is selling for less than the amount owed on the mortgage, the forgiven debt will not be taxed as income through 2012.

"Up to $2 million of mortgage debt on the principal residence that has been forgiven can be excluded from income," Luscombe explained. "Taxpayers do not have to put it on their tax form," even if the lender has sent an IRS Form 1099.

For more info regarding the Austin Real Estate market contact Craig Ellmaker at 512-784-1494 or craig@ellmakerrealty.com

Austin's Week and Month Sales Review

Craig Ellmaker — Sat, 07 Mar 2009 20:12:00 GMT

The number of active listings are up 1.6% over last year.
The number of new listings are down this week 12.50% (compared to 2/24/09 - 3/1/09).
Pendings are down this week 24.32%.
Sold residential units are down 26.32% compared to the same week last year.
How are we doing on sales prices? To get the full picture, check out the our web site for latest sold data.
For additional information on the current market, please contact Craig Ellmaker at 512-784-1494 or craig@ellmakerrealty.com

The Week in Review
Units for Sale:
Feb. 24 - Feb. 28, 2009
(compared to the same week in 2008)
New listings down this week 12.50%
Pendings are down 24.32%
Solds down 26.32%
As for Average Prices:
Feb. 24 - Feb. 28, 2009
Sold average sales prices increased 7.79% to $252,043. In 2008 it was $233,826 for the same week.

The Month In Review
February 2009
Units for Sale: (compared to February 2008)
New listings were down 22.35%.
Pendings were down 22.14%.
Solds decreased by 28.64%.
As for Average Prices:
The "New Listings" average list price is up 4.30% to 328,804. In February 2008 the average list price was $315,238.
Sold average sales prices increased 5.16% to $245,430. For February 2008 it was $233,390.

American Recovery and Reinvestment Act of 2009

Craig Ellmaker — Sat, 07 Mar 2009 20:08:00 GMT

American Recovery and Reinvestment Act of 2009

H.R. 1, the American Recovery and Reinvestment Act of 2009, passed
the House on February 13, 2009, by a vote of 246 - 184. Later that
day, the Senate also passed the bill by a vote of 60 - 38. The
President signed the bill on February 17, 2009. The bill is a $780
billion package, with roughly 35% of the package devoted to tax cuts
(mostly for 2009) and the rest to spending intended to occur in 2009
and 2010. The mix of provisions of interest to REALTORS® changed
frequently throughout the legislative process, with changes
continuing to be made just hours before the measure was released
prior to the vote. In the end, the elements of NAR’s housing agenda
were included. Congress and the President have announced that a
finance and housing package (including tax provisions) will be the
next big initiative, so Congress has by no means finished its work
as it affects the housing industry and REALTORS®.

The bill includes the following provisions:

Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Neighborhood Stabilization
Commercial Real Estate
Rural Housing Service
Low Income-Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits & Grants
Transportation Investments
Broadband Deployment

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit
that would be available to first-time home buyers for the purchase of
a principal residence on or after January 1, 2009 and before December
1, 2009. The credit does not require repayment. Most of the
mechanics of the credit will be the same as under the 2008 rules:
the credit will be claimed on a tax return to reduce the purchaser's
income tax liability. If any credit amount remains unused, then the
unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time
Homebuyer Tax Credit> (PDF: 309K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit (PDF:
319K)

FHA, Fannie Mae and Freddie Mac Loan Limits -The bill reinstates last
year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans.
These limits were equal to the greater of 125% of the 2008 local area
median home price or $271,050 for FHA and $417,000 for Fannie and
Freddie, with an overall maximum cap of $729,750. For the few areas
where the 2009 limits were higher, the higher limits will apply. In
addition, the bill includes language providing the HUD Secretary with
the discretion, if warranted, to increase the loan limit for any
“sub-area”, i.e.an area smaller than a county. The Secretary's
discretion is again limited by the $729,750 cap. These 2009 limits
will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a
victory for homeowners, buyers and Realtors. While these new limits
were included in version of the original stimulus bill approved by
the House, the bill first approved by the Senate did not. NAR's Call
for Action to both the House and the Senate prior to the final vote
advocated strongly for the provisions which were then included in the
final bill approved by both Chambers.

Estimated 2009 FHA, Fannie Mae and Freddie Mac Loan Limits> (PDF:
1.3M)
Neighborhood Stabilization – Division A, Title XII of the bill
provides $2,000,000,000 in additional funding for the Neighborhood
Stabilization Program (NSP). The NSP was created by the Housing and
Economic Recovery Act of 2009 (Public Law 110–289) to provide grants
through the Community Development Block Grant program (CDBG) to
states and localities to address the problems that can be created
when whole neighborhoods are decimated by foreclosures. The funds can
be used to purchase, manage, repair and resell foreclosed and
abandoned properties. In addition, the funds can also be used by
states and localities to establish financing methods for the purchase
and redevelopment of foreclosed properties. After purchase the homes
must be used to assist individuals and families with incomes at or
below 120% of area median income. Twenty-five percent of funds must
be used for households with incomes at or below 50% of area median
income. By leveraging their expertise in partnership with others
from both the public and private sector, Realtors® in many
communities have been making important contributions to their local
communities’ neighborhood stabilization programs.
Commercial Real Estate - Commercial real estate is impacted primarily
through those provisions of the bill focused on green building and
energy efficiency as well as business tax incentives. H.R. 1 provides
significant funds for state energy programs, which could be used to
support commerical property owners' investment in energy efficiency
upgrades while commercial property owners seeking to invest in
alternative energy systems for onsite power generation would benefit
from the Department of Energy Renewable Energy Loan Guarantees
Program. Of particular benefit to small businesses would be certain
provisions of the bill that provide tax relief in the area of bonus
depreciation and capital expenditures, as well as the 5-Year
carryback of net operating losses for small businesses.
Rural Housing Service Rural Housing Service – The bill provides an
additional $500 million to existing USDA Rural Housing programs. The
RHS provides both a guaranteed loan program and a direct housing loan
program for those meeting the program’s eligibility criteria. The
direct loan program will receive $270 million while $230 million will
be allocated for unsubsidized guaranteed loans. It has been reported
that this level of funding would provide for an additional 192,000
homeowners.

Low Income Housing Grants - Allow states to trade in a portion of
their 2009 low-income housing tax credits for Treasury grants to
finance the construction or acquisition and rehabilitation of
low-income housing, including those with or without tax credit
allocations.
Tax-Exempt Housing Bonds - Tax-exempt interest earned on specified
state and local bonds issued during 2009 and 2010 will not be subject
to the Alternative Minimum Tax (AMT). In addition, financial
institutions will have greater capacity to purchase tax-exempt state
and local bonds.
Energy Efficient Housing Tax Credits & Grants - To promote green jobs
and energy independence, ARRA invests significantly in efforts to
make homes and buildings more energy efficient. The bill provides
state and local governments with $6 billion in energy efficiency and
conservation grants for energy audits, retrofits and financial
incentives. Through 2010, homeowners will be able to claim a 30% tax
credit (up from 10%) for purchases of new furnaces, windows and
insulation. Another $5 billion will be available to modernize the
nation’s electricity grid and install smart meters on homes that help
to save consumers money. There is also $5 billion for weatherization
assistance for low income households and $2 billion for federally
assisted housing (section 8) efficiency efforts.
Transportation Investments - The bill provides $46.7 billion to
states and localities for capital investment for surface
transportation projects including highways, bridges, transit, and
rail projects. NAR policy supports increased spending on the types
of transportation infrastructure addressed in the bill with the
exception of Amtrak and high-speed inter-city rail where NAR has no
policy. These investments will tend to moderate traffic congestion
and support a variety of transportation alternatives which will
improve the quality of life of American communities and bolster the
value of real estate.
Broadband Deployment - The bill creates $7.2 billion in grants to
promote broadband deployment in unserved and underserved areas and
for mapping the availability of broadband service in the U.S. Any
entity is eligible to apply for a grant including municipalities,
public/private partnerships and private companies as long as they
comply with the grant conditions. The grants are subject to “network
neutrality” requirements to ensure that broadband networks be free of
restrictions on content, sites, or platforms, on the kinds of
equipment that may be attached, and on the modes of communication
allowed.

The bill also charges the FCC is with developing a national broadband
plan that shall seek to ensure that all Americans have access to
broadband capability and shall establish benchmarks for meeting that
goal.

These provisions are important victories for REALTORS because
increased broadband access promotes economic growth and expands
opportunities for home sales. A 2006 Commerce Department report
determined that property values are 6% higher in communities where
broadband is available.

For more info on the Austin market contact Craig Ellmaker at 512-784-1494 or at craig@ellmakerrealty.com

Austin, Tx ranks #1 in Forbes!

Craig Ellmaker — Thu, 16 Oct 2008 19:41:00 GMT

Best and Worst Bang for the Buck Cities

by Abha Bhattarai
Wednesday, October 15, 2008 provided by

Your money will go farthest in Austin.

The economic storm sweeping the country has left Americans with few places to hide.

But those looking to hunker down might want to head to Texas, where they can get the best value for their dollar.

That's because Austin and San Antonio lead our list of places where your money goes farthest. Residents of both enjoy affordable housing and promising prospects for job growth in coming years. Houston and Dallas also land in the top 10, at Nos. 4 and 7, respectively.

"Texas, as a whole, is one of the few economies that's performing extremely well because of the energy and technology sectors," says Andrew Gledhill, an economist at Moody's Economy.com. Plus, he added, military bases in San Antonio have continued to draw a steady steam of personnel and federal employees to the city, spurring widespread job growth.

The state's manufacturing sector has also grown in recent years, and a reputation for affordable housing continues to lure people to the South. When accounting for median household income, a house in Dallas, for example--with a median price of about $150,000--is four times more affordable than a house in Los Angeles, the worst-ranked city on our list.

A house in New York is three times less affordable than in Charlotte, N.C., and four times less than in Denver, two cities where your money goes far and where the median house costs $245,000, according to the National Association of Realtors.

Housing has remained affordable in the South and Midwest, thanks to growing populations, relatively lax building regulations and "lots and lots of land," said Daniel McCue, a research analyst at Harvard's Joint Center for Housing Studies.

Plus, he added, housing in cities like Houston "grew at a more controlled pace and didn't go overboard like in Phoenix or Las Vegas," which means houses won't lose much value in coming months.

Three Midwestern cities round out the top 10: Indianapolis; Columbus, Ohio; and Minneapolis. The worst-ranked cities, after Los Angeles, were Providence, R.I.; New Orleans; Philadelphia; and Cleveland.

Behind the Numbers

To ensure that our list reflected future value instead of past bargains, we began by looking at projected job growth through 2012 in the 40 largest U.S.-Census-defined metropolitan areas of the country with data from Moody's Economy.com.

Texan cities were a clear winner, with economists predicting job growth of at least 2% by 2012 in Austin, San Antonio, Dallas and Houston. By comparison, job growth in cities at the bottom of our list, including Los Angeles, Philadelphia and Cleveland, is expected to be about 0.2%.

Los Angeles was the worst-ranked city.

We then calculated the ratios between each city's median house price and median household income, using 2000 U.S. Census figures, the latest available, and 2007 data from the National Association of Realtors. Next, we compared median income to Moody's cost of living index.

Final factors included the average gas price in each city on a given day in October as collected by AAA, and year-over-year inflation growth as calculated by Moody's and Forbes.com.

Top Spots

The factors that make the cities on our list valuable--affordable housing, relatively low gas prices, sluggish inflation, a job market that's more vibrant than most--are more than an indication of cheap deals. Instead, they give us a glimpse of the cities that are likely to offer value. Cities like Detroit (which didn't make it to our list) are cheap, but low-income figures and a fading job market won't do much for sustaining worth.

The cities where you'll get the least value include areas like Los Angeles, New York and Washington, D.C., where median house prices are more than $400,000 and relatively few people can afford them. Cities like Providence, R.I., and Philadelphia are suffering from large waves of out-migration as more and more residents decide to pick up and leave. As a result, local economies stagnate, and prospects for job growth seem bleak--economists predict the number of jobs in Philadelphia will grow by 0.2% by 2012 and by 0.1% in Providence.

But, economists say, no state has been as hard hit as California.

"California is being faced with a combination of a zillion things--the state's been in a prolonged recession, and at the same time, you have some of the least affordable housing in the country,” says Gledhill. "We'll probably start seeing a bottom in the housing market late next year, but it'll be a while until we see a real recovery."

Los Angeles' misfortunes, however, have helped boost the economy in cities like Portland, Ore. It and Seattle have become attractive alternatives for those looking to leave California in search of affordable housing and lower costs of living.

Visit the Real Estate Center

The value of a dollar in different cities is also closely linked to local inflation rates. In Austin, for example, year-over-year inflation rates rose by 5%, while in Portland, that figure was nearly 5.7%. Local inflation rates ranged from 3.2% in St. Louis (No. 8 on the worst list) to 5.82% in Dallas (No. 7 on the best list).

But keep in mind, even cities that ranked well on our list aren't immune from the forces of today's downturn. Gledhill says economic growth in Portland, which has already begun to slow, will be compounded further by California's slowdown.

Things won't be much better in Columbus, according to Bodhi Ganguli, an economist at Moody's. So far, the city has weathered the storm better than its local counterparts. But he said, "an extremely high foreclosure rate" and bleak expectations for job growth will begin to take their toll on the city's economy.

Things may turn for those in Charlotte, which has fared relatively well so far. That's because housing prices never reached exorbitant highs, which shielded the city from a major housing bust.

But as the Charlotte-based Wachovia get swallowed by Wells Fargo, Gledhill says, "a more measured deterioration is on its way."

For more info on the Austin market contact Craig Ellmaker at 512-784-1494 o craig@ellmakerrealty.com

Texas has three of the hottest jobs markets!

Craig Ellmaker — Wed, 17 Sep 2008 16:18:00 GMT

Hot job markets in a cooling economy

Texas has three of the hottest jobs markets, former leaders Phoenix, Las Vegas, others slip

bizjournals - September 8, 2008
by G. Scott Thomas

The past year has been a rocky one for the U.S. economy.

The nation has seen 394,000 private-sector jobs slip away since mid-2007, equaling a loss of 7,570 jobs each week. The unemployment rate has shot up a full point during the same span -- from 4.7 percent at the halfway point of 2007 to 5.7 percent this year.

But a few sections of the country have managed to dodge this economic carnage. The most prominent exception is Texas, which is home to America's three hottest labor markets, according to a new bizjournals study.

Houston, Austin and Dallas-Fort Worth are 1-2-3 in the latest employment rankings of the nation's 100 largest metropolitan areas. The three Texas markets have added a total of 107,200 private-sector jobs since mid-2007, while keeping their unemployment rates below 5 percent.

Texas' impressive performance, ironically enough, is partially the result of higher energy costs, the same factor that has bedeviled much of the rest of the nation.

"The state's natural resources and mining industry, helped by higher oil prices, posted an annual employment growth rate of 6.4 percent from June 2007 to June 2008 and ranked first among Texas industries in employment-growth rate," said a midyear report from the Real Estate Center at Texas A&M University.

Texas also has been able to avoid the mortgage bubble that burst with devastating impact in other high-growth states such as California and Florida. A bizjournals study in March identified Houston as one of the nation's 10 most-affordable housing markets, with Dallas-Fort Worth and Austin close behind in 15th and 22nd place, respectively.

Bizjournals used a nine-part formula to analyze employment trends in the nation’s 100 largest labor markets. The formula was fueled by midyear data complied since 2003 by the U.S. Bureau of Labor Statistics.

The 100 markets, taken collectively, contained 69 percent of the nation's 116.2 million private-sector jobs as of June 2008.

The top-rated labor market outside of Texas -- fourth in the overall standings -- is Raleigh. Its job base has ballooned by 22.1 percent since 2003, dwarfing the national five-year growth rate of 6.3 percent.

Seattle ranks fifth, largely because of its addition of 20,500 private-sector jobs since mid-2007. Only Houston and Dallas-Fort Worth have posted bigger gains during the past year. For employment profiles on these cities and the rest of the 10 hottest job markets, click here.

The recent volatility in the U.S. economy has shuffled the standings dramatically since they were last compiled a year ago. Phoenix, which was No. 1 in bizjournals' 2007 employment rankings, has dropped all the way to 28th place this year. Six of last year's 10 hottest markets have fallen out of the top 10 this year.

The bottom of the list is considerably more stable, though it does include a few surprises.

Last place belongs once again to Detroit, which has ranked as the coldest job market in America the past two years. The biggest problem remains Detroit's heavy reliance on domestic automakers, resulting in a loss of 30,800 jobs since mid-2007.

"Obviously, the Michigan economy has been dreadful this decade," said a recent report from Michigan Future Inc., a nonprofit group that aims to rejuvenate the state's economy. "An unprecedented seven consecutive years of job losses. At the bottom of the national rankings in both employment and per capita income. This is largely because the engine that still drives the Michigan economy is the troubled domestic auto industry."

The second-coldest labor market has suffered a dramatic decline the past couple of years. Sarasota-Bradenton, Fla., which was fourth-best in bizjournals' 2006 employment rankings, now sits in 99th place, a victim of Florida's real-estate woes. It has lost 11,400 jobs since mid-2007.

Other industrial markets among the coldest job markets include: Providence, Toledo, Lansing, Mich., and Dayton. All but Providence were also in the bottom 10 last year.

Study says Texas still top state for business

Craig Ellmaker — Tue, 29 Jul 2008 17:24:00 GMT

Study says Texas still top state for business

Austin Business Journal

The business climate in Texas is the best in the nation, according to a study by marketing company Development Counsellors International. In the poll of 281 corporate executives across the country, 40.8 percent of participants say Texas had the most favorable business climate -- an accolade the Lone Star State has held since 1999. Executives cited a strong labor market, low operating costs and a pro-business climate as factors in their decision. North Carolina ranked second, while Georgia was third, followed by Tennessee and Florida, which tied for fourth place. For the third consecutive year, California was viewed as the state with the least favorable business climate. New York, Michigan, New Jersey and Massachusetts rounded out the bottom five. "With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey," DCI President Andrew Levine says in a statement. "Whether accurate or misguided, perceptions about a location's business climate often play a crucial role in site selection decisions and where companies invest money and create jobs." DCI says its survey was sent to a random selection of 3,591 U.S. companies with annual revenue of at least $25 million. The study is conducted every three years.

Austin was named third on the Forbes.com list of the top 10 "Recession-Proof Cities" in the United States.

Craig Ellmaker — Wed, 07 May 2008 21:28:00 GMT

Wednesday, May 7, 2008 - 11:35 AM CDT

Austin recession-proof?
Austin Business Journal

Austin was named third on the Forbes.com list of the top 10 "Recession-Proof Cities" in the United States.

To create the list, the magazine looked at the 50 largest U.S. metros, examining key measures, such as unemployment data, non-farm related job growth, median home prices and data from a 2007 report, "U.S. Metro Economies: The Mortgage Crisis" by the U.S. Conference of Mayors.

At number three, Austin was right behind San Antonio, which grabbed the second spot thanks to solid employment figures and affordable home prices that continue to rise.

Oklahoma City took the No. 1 spot because of its strong housing market and solid growth in agriculture, energy and manufacturing.

For its part, Austin was lauded for being a hip town with one of the lowest unemployment rates in the country.

Forbes magazine's list of recession-proof cities also included: Houston, Dallas, Charlotte, N.C., Raleigh, N.C., Salt Lake City, San Jose, Calif. and Seattle.

Forbes says that Texas cities such as San Antonio, Austin, Houston and Dallas-Fort Worth have benefitted from historically lower home prices, land availability and 'little zoning'.

All four Texas cities boast falling unemployment rates, according to Forbes, with Austin dropping from 3.8 percent to 3.6 percent.

Forbes.com

When your ready to buy, sell or invest in the Austin area please contact Craig Ellmaker, e-Pro Broker at 512-784-1494 or craig@austin-cashflow.com

Tourism takes off in Cedar Park

Craig Ellmaker — Thu, 01 May 2008 17:33:00 GMT

Tourism takes off in Cedar Park

Written by Mark Collins Thursday, 17 April 2008

With big projects on the horizon, Cedar Park and Leander are beginning to explore tourism for the first time.

"We want a city of destination, and we are getting closer to that with the entertainment center," Cedar Park city council member Mitch Fuller said.

A city of destination uses a tourist feature to draw people from outside of the region and encourage them to stay in the city overnight.

"The primary goal for building an event center is the city council's desire to make Cedar Park a self-sustaining city where people can live, work and play," Cedar Park Communications Manager Melanie Carr said. "The event center will definitely offer our residents an entertainment option. Bringing in tourists will be a big perk."

The proposed water park would also be a large draw for tourists.

"The implications of a water park would be a tremendous boost for tourism," Carr said. "That would be something that would set us apart from most communities and would be a real reason why people would travel to, and spend the night, in Cedar Park."

Branding

The Cedar Park Tourism Advisory Board, a seven member team appointed by city council and charged with promoting tourism in the city, recently extended its contract with marketing firm Marketing Edge Ventures to continue its marketing strategy and branding campaign to advertise Cedar Park as a tourist destination.

"Our initial strategy was realizing that even though we didn't have a lot of typical tourist attractions, we have a whole lot coming that are very geared towards families," said Marketing Edge Ventures co-owner Amy Stevens. "Our strategy has been built around the slogan 'Cedar Park - where families come for fun.'"

That strategy included the launching of a new website, www.cedarparkfun.com. The site includes a listing of local events and downloadable trip itineraries with events in and around Cedar Park. The site is intended for travelers, but has proven to be a good resource for locals looking for activities as well.

Branding, or making the Cedar Park name recognizable, is also an important part of what Marketing Edge Ventures does.

"I want to be really careful that we don't become 'that place northwest of Austin,'" Stevens said. "I want people to know it's called Cedar Park."

Stevens used the city of Grapevine as an example of successful branding. Grapevine is nestled in the shadow of Ft. Worth and is lower in population than Cedar Park, yet the city is well known across the state for its water parks and hotels.

As part of the branding effort, the event center will bear Cedar Park's name. Hicks Cedar Park, the firm behind the event center, can sell the naming rights to the building, but the final name must include the words: Cedar Park.

"Tourism and marketing have been an area that hasn't had much attention in the past due to the lack of attractions, but both our Council and Tourism Advisory Board realize that this area will soon be of utmost importance," said Carr. "It's critical that we have a marketing strategy in place in order to handle the tourists we expect to start flooding our way when new attractions open."

Tourism in Leander

Leander has gotten its first taste of tourism in recent years by hosting the kite festival in March, car show in July and bluegrass festival in September. In only its third year, the bluegrass festival has garnered interest from out-of-state bands looking to participate. The kite festival, in its second year, had more than 600 citizens partake in the festivities.

"We're starting small and it's growing," Leander Parks and Recreation Director Steve Bosak said. "We try an event and if it is well received and we get good feedback, then we will continue it."

"When we first started <talking about> tourism, people laughed," Leander Chamber of Commerce President Mary Bradshaw said. "But we need to start thinking about this now because it's coming, and when it comes it will hit fast. We really need to start thinking about tourism and be prepared for it."

"There have been some hotel people nudging around for a while," Clennan said. "Lately <the developers> have been a little more serious. You can tell they are starting to have a lot more interest in the area."

Hotels are typically built in a city when it reaches a population of 30,000 to 32,000. Leander's current population is estimated to be a little more than 24,000.

"It would be nice to have something come in with a conference space," Clennan said. "It doesn't have to be huge, just enough room to host some events and get some people to stay the night."

Bradshaw is hoping Leander gets a place for tourists to stay. Money collected from the hotel occupancy tax would give the city it's first ever tourism budget.

"If we got a hotel, even if it was a 35-room Days Inn, we would start collecting some hotel tax money," Bradshaw said. "We could put together a brochure, have it distributed locally and eventually start shipping them in small quantities to all of the 12 welcome centers all over the state and that becomes huge."

Hotel Occupancy Tax

Tourism is funded primarily through the hotel occupancy tax, a tax levied on any traveler who pays for a room or space with a cost of $2 or more per day. The hotel tax rate is decided on by the city council and must pass before it can be charged.

In Cedar Park, the current hotel occupancy tax is seven percent.

Funds collected from the hotel occupancy tax are required by law to pass a two-part test before they are spent.

Marketing Edge Ventures is funded entirely by money from the hotel occupancy tax. Cedar Park also uses the money to fund advertisements, posters and banners to promote city events, and gives money to local organizations

How tourism is funded

Step 1: City council votes on a hotel occupancy tax rate. In Cedar Park that rate is seven percent. Leander does not have any hotels so it does not have a rate.

Step 2: Travelers who stay in a space costing $2 or more per night must pay the hotel occupancy tax.

Step 3: Hotels submit the hotel occupancy tax directly to the city once a month. The money goes into a seperate tourism account.

Step 4: The city spends money on flyers, promotions etc. to generate more tourism. Expenditures must, by law, pass a two-part test to be valid.

Two-part test for tourism spending

1: Every expenditure must directly enhance and promote tourism and the convention and hotel industry.

2: Every expenditure must clearly fit into one of six statutorily provided categories for expenditure of local hotel occupancy tax revenues.

Fund the establishment, improvement or maintenance of a convention center or visitor information center.

Paying the administrative costs for facilitating convention registration.

Paying for advertising, solicitations and promotions that attract tourists and convention delegates to the city or its vicinity.

Expenditures that promote the arts.

Funding historical restoration or preservation programs.

Funding costs in certain counties to hold sporting events that substantially increase hotel activity.

Contact Ellmaker Realty for more info at info@austin-cashflow or at 512-258-9899

ROMA to recommend 14 miles of light rail in Central Austin

Craig Ellmaker — Tue, 22 Apr 2008 18:54:00 GMT

By Ben Wear | Tuesday, April 22, 2008, 09:57 AM

A consultant hired by the city is recommending a 14-mile light rail or "ultra-light rail" system for Central Austin, not streetcars as proposed earlier by Capital Metro, according to Austin City Council Member Brewster McCracken. The system would run from the airport to downtown, through the University of Texas and then east to the emerging Mueller development.

The route is essentially the same one that McCracken and Austin Mayor Will Wynn have been talking about over the past six months or so. The proposal comes as a "transit task force" formed by Wynn and state Sen. Kirk Watson moves into the final stages of creating a "decision tree" to analyze rail proposals.

That group would almost surely analyze this proposal. But it is not clear if such an examination could occur quickly enough for the light rail proposal -- assuming it passes muster with the Wynn-Watson group and then the Capital Area Metropolitan Planning Organization -- to be put before voters in November. Wynn has said he would like to have a rail election this year.

McCracken, at least, believes that the proposal can quickly make it through that gauntlet to a public vote in November.

"Yes, I think that's likely," he said.

The recommendation, to be released this evening at a community forum, will not include a specific cost estimate, McCracken said. However, McCracken said that the cost would be somewhere in the broad range between $5 million a mile and $30 million a mile, depending mostly on how many underground utility lines would have to be relocated for such a project. That would put it between $70 million and $420 million.

Those figures, he said, likely do not include the cost of the cars.

The diesel-powered cars Capital Metro has purchased for its "red line" commuter service from Leander to downtown, set to open in a few months, cost about $6 million apiece and the agency bought six of them to start with. But light rail cars typically cost less than that.

According to McCracken, the recommendation from the ROMA Design Group will propose putting double tracks (allowing travel in both directions simultaneously) from Austin-Bergstrom International Airport and then heading west on Riverside Drive. The route would turn north at Congress Avenue (although there could be a spur to the parking-poor Long Center, McCracken said), cross the Ann Richards Bridge and then go through downtown either on Congress or San Jacinto Street.

Then it would pass through UT, turning east at Dean Keeton Street and going along Manor Road to the Mueller development.

A major criticism of the light rail plan that voters rejected in 2000 was that it would take street lanes away from car traffic. Not so, in this case, McCracken said, although the tracks would be in "dedicated lanes" segregated from cars. The space for the tracks, McCracken said, would come from available right of way on Riverside east of Interstate 35. Then, downtown, the tracks would run on pavement currently occupied by parked cars, he said.

The tracks, McCracken said, might take two lanes from the bridge over Lady Bird Lake, he said, although alternatively it could use the bridge space now taken up by sidewalks. In that case, a sidewalk alternative bridge, such as was added to the South First Street bridge, would continue pedestrian and bicycle access across the lake on Congress.

Light rail, as opposed to the commuter rail opening late this year or early next year, is generally powered by electricity and has a system or overhead wires that connect to devices on the top of the cars called "catenaries." Light rail cars run faster than streetcars, but at speeds comparable to the car traffic around them.

Although having dedicated lanes would spare the light rail cars from delay associated with car traffic, they would still have to stop for red lights on city streets.

Capital Metro officials have said they have no money left in the kitty to pay for more rail. So where would the money come from to build this?

McCracken said that ROMA will outline a funding scenario that includes taking about a quarter of Capital Metro's 1 percent sales tax (although the agency has indicated it needs it all for current bus and rail expenses), contributions from the city and other local government, from property taxes likely to be generated by new development along the line and potentially from airport bonds.

"We think it is possible to build this with no new taxes," McCracken said.

Austin gives preliminary OK to new zoning near rail stops

Craig Ellmaker — Mon, 14 Apr 2008 13:45:00 GMT

Austin gives preliminary OK to new zoning near rail stops

Austin Business Journal

The Austin City Council on April 10 gave preliminary approval for new zoning plans at future stops on the commuter rail, due to begin service this fall.

The plans, which must be voted on a second time before they are final, are for half-mile radius areas around future rail stations at Lamar Boulevard and Justin Lane (also known as Crestview Station), Martin Luther King Jr. Boulevard, and at Plaza Saltillo in East Austin. Council members are expected to cast their final vote for the zoning in the coming weeks.

The station area plans were approved for transit-oriented development zoning creating denser, pedestrian-friendly zoning in those areas, many of them are currently zoned for commercial or industrial uses.

Several developers are signed up for TOD districts. Trammell Crow and Stratus Properties Inc. are partnering on a mixed-use development that will bring 1,000 homes and apartments to a 73-acre tract near the Crestview Station at North Lamar and Airport boulevards.

Former Dell Inc. executive Tom Meredith has signed on to develop a mixed-use project on 30 acres referred to as the Featherlite tract, between MLK Boulevard and 12th Street near the MLK rail station at Clifford Ave.

Other developers have expressed interest but held off commitments pending approval of the final TOD plans, says Sonya Lopez, a city senior planner.

Contact Ellmaker Realty at 512-258-9899 or info@ellmakerrealty.com for more info about whats going on in the Austin area.

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