Financial Mines

News and notes from the business reporters for the Connecticut Media Group.

Northeast apartment permit activity keeps hope alive for new home building

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PropertyRoundsLogoNew home construction permits in the Northeast in March were up 24 percent compared to the previous month as builders pulled more multi-family permits.
The Northeast went in an opposite direction of the nation’s permit activity, which was off nearly 4 percent in March, according to the U.S. Census Bureau.
In the region, which includes all of New England single-family permit activity was down 2 percent compared to February. But this doesn’t mean the region is running for rentals.
Overall, single-family home permit activity through the first three months of this year was up 10 percent compared to last year.
Nationally, single-family home permitting activity was only off 0.5 percent while multi-family construction with five or more units was off 8 percent, compared to February.

The region and nation headed in opposite directions for new starts in March, as well. Total new start construction nationally jumped 7 percent in March,compared to February, bolstered by new apartment construction, which was up more than 26 percent. In New England, total new construction starts were down 5.8 percent, with single-family projections dropping 32.8 percent

One builder told The Rounds, that, at least in Connecticut, they have to pull more permits than they can possibly get to because many projects fall through due to zoning or other issues that creep up on them.

Categories: Real Estate

Imus’ Westport pad sells for $14.4 million

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ImushouseRadio personality Don Imus and his wife Deirdre’s Westport estate has been sold for $14.4 million.
The feat was accomplished by Coldwell Banker Residential Brokerage sales associates Darlene Letersky and Emily Gordon.
Lettersky represented the Imuses, while Gordon brought the buyers.
This is among the highest-priced residential property transactions recorded in Westport, according to the Greater Fairfield County CMLS, Coldwell said.

Built in 2000, the white clapboard Georgian Revival residence offers more than 10,000 square feet of living space, six bedrooms, and 6.5 baths. Highlights of the four-acre property, which is located at 106 Beachside Ave., include 215 feet of private beach along Long Island Sound, a carriage house with a garage that can accommodate up to six cars, and a two-bedroom guest house.

Categories: Real Estate

Fairfield County foreclosure activity jumps 52 percent in March

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RealtyTrac, the California-based foreclosure marketplace, is tracking a 52 percent jump in foreclosure activity in Fairfield County and a 48 percent jump in New Haven County compared to last month.

The company reported Thursday total foreclosure activity in the nation fell 23 percent in March compared to a the same month in 2012 and down 1 percent from February of this year. Fairfield County was up 40 percent compared to a year ago.

Sherman, in the Northwest is actually leading the region in foreclosure rates, according to the company. The increase in activity might threaten gains in housing prices made in the last few months. Foreclosure sales prices were up 4 percent in February, according to RealtyTrac.

New Haven County likewise saw a surge in activity, climbing 48 percent in March compared to the previous month and was up 20 percent from a year ago. Oxford saw the highest rate of activity in the month, according to RealtyTrac.

We’ve had some trouble with this graphic, but we’re trying again.

Categories: Banking, Economy, Real Estate

SEC requires investor ID theft prevention

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The problem of identity theft has sparked the SEC to require brokers, dealers, advisers and other investment pros to put in place prevention programs.
Investment pros will have to create programs that will flag suspicious activity.
The problem of ID theft has led to delays in processing tax returns for some individuals during the last two years and is a growing concern.
The SEC finalized its rule Wednesday but it doesn’t go into effect until it is published. But you can take a peek at it here.

Categories: Regulatory, Wall Street

State’s refund debit card plan works: People reject it for direct deposit

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Connecticut’s taxman must be a fan of B.F. Skinner .

The State Department of Revenue said 79 percent of tax refunds paid out this year were directly deposited into taxpayers’ accounts. That’s up 24 percent from two years ago, the last time the state issued paper refund checks.

Kevin Sullivan, DRS commissioner, issued a release this week detailing the success of the program, now in its second year. The program drew criticism as it came as a surprise to many taxpayers who were expecting checks. Instead of checks, the DRS contracted with Chase to provide debit cards which must be activated. While fees can be avoided, they can still be assessed on the use of the cards, though most banks can transfer all the money off of the cards into your account after activation.

“Last tax season, Connecticut taxpayers due income tax refunds of less than $5,000 and not choosing direct deposit received debit cards rather than paper checks for the first time.  Said Department of Revenue Services (DRS) Commissioner Kevin Sullivan, ‘It was a bumpy ride last time and we had a lot of explaining to do.  This tax season, with the opportunity to provide a real public information campaign in advance to taxpayers, it is going very smoothly with very, very few complaints.’”

Sullivan noted only 19 percent of refunds have been issued onto cards this year. People who are owed more than $5,000 can still get checks. He touted the cost savings element of the program, which is estimated at about $300,000 annually.

There are critics of the program, as Sullivan addressed in his release.

Added Commissioner Sullivan, “Yes, a few politicians in the State Legislature still don’t seem to get it.  Change is never easy.  But government has an obligation to be more businesslike in reducing costs and modernizing services.  That’s what this is all about, in addition to providing greater security.  With refund debit cards, taxpayers have easy, no-fee choices after simply activating the card.  They can simply cash out at any Chase or other VISA-affiliated bank.  Alternatively, they can use it just like any other debit card to make purchases from VISA-affiliated merchants.”

One reason some lawmakers are skeptical is because, there is evidence that many people never activated the cards last year, something a problem DRS is trying to remedy. After all, that money trapped in plastic isn’t doing the economy any good, though Chase can start whacking the cards for fees after a year.

Commissioner Sullivan also noted DRS will once again do a follow-up mailing to remind taxpayers who may forget to activate and access their income tax refund debit cards.  Said Sullivan, “It’s their money and we want to be sure they get it.”

Note: The mines originally called this a Pavlovian tax experiment. After arguing with our colleague J. Burgeson, the man who made Whitehead fly, we’ve decided to amend the lead. Burgie argued the Pavlovian reference is more apt to be taken as a reference for salivation. We argued that Pavlov was paving the way for behavioral modification using positive reinforcement. But we conceded, perhaps Skinner would be a better reference, given his use of both negative and positive stimuli to get a result.

Categories: General, Taxes

Mortgage rates down, home buying up

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Mortgage bankers across the country reported a 4 percent increase in applications for buying homes and a 6 percent increase in refinancing last week.
The increase in activity, according to the Mortgage Bankers Association, came as interest rates fell. The average for a 30-year fixed rate mortgage fell to 3.68 percent from 3.76 percent.
Those shopping for jumbo loans were also rewarded last week with a lower rate of 3.79 down from 3.85 percent.

Property rounds coming Thursday on new home construction.

Jepsen calls for more penalties on CL&P for 2011 storm failures

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Attorney General George Jepsen filed a petition with the Public Utility Regulatory Authority calling for more penalties against Connecticut Light & Power for failing to disclose emails and other notes related to investigations into the company’ power restoration efforts after Hurricane Irene and an October Nor’easter in 2011.

The AG said during an investigation into the company he and other investigators requested all emails and notes about storm restoration. But the company failed to turn over certain email correspondence between people heading the restoration efforts in towns and management. One email called restoration projections in November after the Nor’easter as, “quite the work of fiction.”

Indications from supervisors leading the restoration efforts were that the damage was quite extensive and recovery would take longer than normal.

Many people were without power for more than a week after the storm and the company was widely criticized for this and for their communication with customers and towns.

CL&P is seeking more than $400 million in storm-recovery related costs for 2011 and 2012.

CL&P is a subsidiary of Northeast Utilities, the state’s largest utility and one of the largest in New England. Shares of NU were down 8 cents to $43.75 in Tuesday morning trading.

Categories: Energy

Do mill rate hikes affect where families or biz locate?

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Bridgeport is pondering a 2.5 mill rate hike for the next fiscal year, which could add $400 bucks to the average home owner’s bill and $981 to a business’ tax bill.

Yet prices for homes in Bridgeport are much lower than other areas of the county and there are some bargain prices for commercial buildings as well, making ownership, at least on its surface more attainable in the Park City.

We want to know what you think and where you’re looking for a new home or new business opportunity. Do you think increases in property taxes in Bridgeport or elsewhere could impact the pace of recovery in housing and commercial real estate in Southwest Connecticut?

Here’s the ranking of our area towns by last year’s mill rates. Most in Southwest Connecticut were in that 20 to 25 mill range. Only Bridgeport is above 40 and proposing to go higher. We’ve provided some of the proposed mill rates for the coming fiscal year as well.

A mill is equal to $1.00 of tax for each $1,000 of assessment. To calculate the property tax, multiply the assessment of the property, which is 70 percent of market value, by the mill rate and divide by 1,000. For example, a property with a assessed value of $50,000 located in a municipality with a mill rate of 20 mills would have a property tax bill of $1,000 per year.

Mill rates under 20

Greenwich proposed 10.675 mills from 10.389

Darien current proposed 13.51 from 12.68

New Canaan 14

Bridgewater current 17.5

Stamford 17.89 (Has multiple property tax rates)

Westport 17.91

Rates 20 to 25

Ridgefield 20.37

Wilton 21.055

Norwalk proposed 22.2 from 21.33 (Norwalk has 13 property tax rates that range within a mill of each other)

Shelton 22.4

Danbury proposed 26.8 mills from 22.45

Redding 23.28

Fairfield current 23.37

Oxford 24.1

Weston 24.02

Bethel current 24.07

Newtown 24.54

New Fairfield 24.66

Rates 25 to 30

New Milford 25.37

Milford 25.6

Ansonia current 27.65

Easton current 29.1

Monroe  29.26

Over 30

Trumbull 30.71

Seymour 32.83

Stratford 34.48

Derby current 35.5

Bridgeport proposed 43.6 from 41.11

Source: Office of Policy Management

Categories: Real Estate, Taxes