Recently, there was a news release from HCAD(Harris county Appraisal District) about the Texas Legislature changes made in the last session. It is about Homestead Exemptions which helps to reduce some taxes on your property. It is the talk of the town around many social media outlets and many homeowners new and old were asking about it. So I thought it would be beneficial to do a post clarifying few points. Before I go explanining about the changes, let me dive quickly into basics of Homestead exemptions for new homeowners and move to talking about the fixes put in place on the loophole existed for sometime now.
What is a Homestead Exemption?
Homestead exemption is a way to save taxes on your property which you call it as a primary residence. It is one way to encourage home ownership by reducing the burden on property taxes in Texas and some other states. As per texas state website, Homestead exemptions remove part of your home’s value from taxation, so they lower your taxes. For example, your home is appraised at $100,000, and you qualify for a $15,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if it was worth only $85,000. Taxing units have the option to offer a separate exemption of up to 20 percent of the total value. Each taxing unit like School District, MUD, Harris county have their own exemption rates.
How can I apply?
One needs to apply once at the beginning of the tax year and every year it carries over. You need to apply before April of that year for that tax year. For example, you need to apply by end of April 2012 for 2012 tax calculations to get the taxes sent by end of 2012. Here is the forms to send your homestead exemption for HCAD.
What is the new change all about?
The change is to close certain loopholes in the system which currently allows anybody to avail for the exemption if they own a home and don’t call it has a primary residence. Thats gives advantage to landlords who owns multiple properties and take advantage of this exemption for all of their homes. Also many landlords who are out of state where also making use of this exemption because there is no verification mechanism in place to make sure that they are really living in that property. Now the changes makes it compulsory for any new application to be filed after Sept 1, 2011 should accompany copies of Texas driver license and Car Registration. Also the address in the application should match the address in the copies otherwise they won’t be qualified for homestead. This new check put in place will avoid anyone who likes to take advantage of homestead exemption. Other restrictions continue to hold for different classes of exemptions provided by state. Please check out the details at hcad.org
I am old homeowner as of 2010, do I have to send a new application?
There was a confusion among old homeowners whether they need to reapply with neccessary documents. Not needed. I clarified with HCAD and as per HCAD, old homeowners don’t have do anything. It is only for new applications filed after Sept 1, 2011.
I am a new homeowner or will be new homeowner soon. What do I need to do?
Just follow the instructions posted at hcad.org and apply for the exemption.
Hope this helps to clarify some points on the new changes on Homestead exemption. Let me know whether you have any more concerns and I will try to clarify with the knowledge or will get clarification from HCAD.
Riverstone
A Fort Bend area master-planned community where luxurious homes, water features and resort-style amenities define the landscape, Riverstone is one of Fort Bend County’s most desirable addresses. Riverstone residents enjoy an enviable lifestyle with a superb selection of new homes with Sugar Land and Missouri City addresses. Plus, with varied highway access and an array […]
Sienna
Sienna is a comprehensive 7,000-acre master-planned community. Sienna is more than houses inside one of the top Fort Bend County subdivisions. Neatly tucked between the acclaimed cities of Missouri City and the City of Sugar Land, it is a community in the truest sense of the word. Every effort is made to maintain a sense […]
Bridgeland
Imagine a place with vast open spaces and spectacular sunsets. An 11,400 acre master-planned community in northwest Houston where flocks of waterfowl glide across natural lakes. A refuge from the chaos of your workday. A place where you can find true balance. The new home community of Bridgeland is such a place. Bridgeland attracts and […]
Towne Lake – Master Planned Community, Cypress
Towne Lake reflects its Texas-sized appeal in a 300-acre lake, with beautiful views. Lake coves allow neighbors easy access to the water and to the many amenities and destinations throughout, bonding the community together. Towne Lake Charm is all these things and more, reflected in a community steeped in Texas pride. Caldwell Companies has perfected […]
Cypress Creek Lakes
Cypress Creek Lakes is a beautiful master-planned new home community nestled in the charming Northwest Houston suburb of Cypress, Texas. Mischer Development has carefully designed the 1,600-acre community to respect the natural beauty of the land while developing approximately 2,000 new home sites. Its convenient location on Fry Rd. just off of Highway 290 also […]
What’s the buzz all about New Homestead Exemptions changes?
HUD Foreclosed Homes and Buyers Reluctance
We all know there are more foreclosed homes in the market and many thousands going to flood the market in coming years. This situation is expected to keep the real industry under bay and home prices are going to be go downward spirial. It is bad news for many of us including home buyer, sellers and realtors. In this instance, we keep hearing about different goverment plans from their think tank to revive the market. The recent one being a possible solution to rent out the foreclosed homes instead of keeping in the market to reduce those inventory which help the new homes prices and sales.
While everyone is trying to solve the problem to help the market to come by attracting more buyers or finding ways to get rid of foreclosed properties, HUD is actually doing the opposite. It just scaring away home owners and investors who want to buy HUD foreclosed with their cumberson government procedures and formalities. On top of it, they also punish the Investor buyers with penalities if they cannot close the deal even though the issue is on the seller(HUD) side. In the past months, I have many frustrated buyers whom I help to make offer in Northwest Houston area. The contract was terminated either because of difficult and unfriendly process or because of the bad title issues. Buyer only realizes the property title is bad from previous closing by HUD after they spend all their efforts and money to get the property inspected and financed when their file is opened with title company. You might wonder why is HUD putting those homes into market if they don’t know have good title or hope to get one?. Isn’t it disgraceful? We were surprised by HUD mishaps that they can sell properties even without proper deed or clear title from previous closing and also with issues in the house which cannot even pass inspection for financing purposes.
To avoid all the hiccups, here are few bottlenecks with HUD properties so you can be aware of them and be an educated buyer when dealing with HUD foreclosed homes.
- Be clear whether you want to buy as owner occupant or investor if you put the bid after the open period.
- Be aware that as a Buyer(owner occupant or investors) you are responsible to turn on the utilities on the house which you didn’t even own in order to do the inspection. And they don’t make easier. It has several steps to start with, buyer needs to get authorization from the field service company authorized by HUD, pay fees for authorization just to get a letter to turn on the utilities. Next call the utility companies to turn them on. Buyer again needs to pay each utility company their respective deposits and fees to turn it on. Once inspection, you have to turn off all utilities. Buyer is prone to lose their deposits in certain utility companies and also endup paying high fees for expediate service.
- After inspection if you decide not to continue, your earnest money is reimbursed only if you are owner occupant and you have to show the proof and valid reason. If you are investor, don’t think about getting earnest money back.
- Title is not guaranteed until file is open and title committment is ordered from Title company. If there is a problem with the Title, you just have to wait to be cleared and you have to apply for extension for $375 fee or they will waive it sometimes. If you are lucky to get it cleared, you don’t know whether the property is as it when you signed the contract. If a/c is gone and decide to not close, you will your earnest money.So you are taking those chances.
- Closing has to be completed within 45 days after contract accepted. If financing delays, buyer needs to file for extension which will be for 15 days with $375 charge. You just have to keep extending until you complete the close and keep paying the extension fees everytime.
- For any reasons closing cannot happen which is common these days because financing falling apart. In that situation, whether you are any type of buyer you will lose your earnest money.
When I told my co-realtors that I deal with HUD properties they looked at me like a wierd person and stayed 1 mile away from me. Now I know the reason for the damn look. They don’t want to deal with me because I am dealing HUD homes. Many realtors don’t deal with HUD homes just because there is only 50% of chance of closing the deals and process really frustrates clients. To avoid losing clients and spending to much time and effort all go to vain at the end, realtors and buyer are reluctant these days to go with HUD foreclosed properties even it is a great deal. Whether you are Buyer or Realtor, please be wary and take the above things into consideration before jumping in buying HUD homes. The deal may be good but organization you are dealing with thinks they are giving away houses for free and act like throwing bone at us. So be cautious and take every step carefully.
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Texas Schools Rating System changed, but it is for good afterall!!
In been hearing lot of squable from parents about the recent changes announced by Texas Education Agency(TEA) last week of July on the 2010-2011 accountability ratings for Texas’ schools and school districts. As per the new rathing system, the number of districts rated as exemplary dropped from 241 to 61 and the number of campuses earning this distinction fell from 2,637 to 1,224. More districts and campuses were academically unacceptable as well, with the number of districts up from 37 to 88 and the number of campuses up from 104 to 569.
Let see the percentage of changes comparing to 2010 all over Texas,
“Exemplary” schools dropped from 19.5 percent of all districts to 5 percent
“Recognized” schools dropped from 49.1 percent of all districts to 34.4 percent
“Acceptable” schools rose from 27.6 percent of all districts to 53.3 percent
“Unacceptable” schools rose from 3 percent of all districts to 7.2 percent.
Hold on! Before you go making your own assumptions about our Schools and Texas school system. Lets see what changes were made and why it is not bad after all.
What’s the New System all about?
Texas Education Commissioner Robert Scott took bold steps to realign the ratings to reflect a new emphasis on rating districts and schools based on their students’ progress toward post-secondary readiness. The changes in ratings were the result of several key improvements: requiring districts and schools to meet goals for students who are on track to graduate at the postsecondary readiness level; discontinuing use of the Texas Projection Measure (TPM); and requiring more students to pass math and science assessments.
First, and for the first time, districts and schools had to meet postsecondary readiness goals in order to each the recognized or exemplary designations. To be Recognized, 15 percent or more of economically disadvantaged students had to score at the commended level on the English and math assessments. To be rated Exemplary, 25 percent of each group had to reach the commended level on these two assessments. The commended level – which is significantly higher than the passing standard – is a good indicator that a student is on pace to graduate with the knowledge and skills to succeed in college, community college, industry certification or other job training programs. The Texas Institute for Education Reform (TIER) was a strong proponent of this change, and we believe this was an important first step in aligning the accountability system with postsecondary readiness.
Next, the 2010-11 ratings were calculated without using the TPM. Under the TPM, students who failed an assessment could be counted as passing if – based on a statistical model – they were projected to pass in future years. Ultimately, the use of TPM boosted district and school ratings because failing students were counted as passing. Last year, approximately 70 percent of districts and schools were rated as recognized or exemplary based in large part on the TPM. This year, 39 percent of districts and 48 percent of campuses earned these ratings, and we feel this is a much more accurate reflection of academic performance. TIER opposed the TPM’s role in the accountability system for several reasons.
Why do we need the changes?
The reason for not using TPM, First, counting failing students as passing, it overestimated the progress that our students were making. Secondly, by artificially reducing the number of academically unacceptable districts and schools, it prevented the state from providing extra resources and oversight that students in unacceptable schools desperately needed. Finally, the TPM was not based on individual student growth toward postsecondary readiness. TIER supports including student growth and value added measures to the accountability system and will work with the Texas Education Agency as they consider future improvements.
Finally, the ratings reflected stronger math and science expectations for our students. Both standards were raised by 5 percent over the preceding year. As the state implements the new STAAR exams, which better measure progress to postsecondary readiness, academic standards will continue to become more rigorous in the future.
Conclusion
While this year’s lower ratings may cause some to question the accountability system, the adjustment was necessary to reset the system and realign it with the overarching goal of postsecondary readiness for all students – the major accomplishment of House Bill 3 in 2009, which TIER strongly supported then and successfully defended in 2011. Our students and teachers didn’t suddenly become less successful. Instead, our evaluation system just got a lot better. By linking our K-12 standards, assessments and ratings to the knowledge and skills needed for students to succeed after high school, we are giving amore accurate picture of the progress that our schools and students are making and can better make the changes needed to drive student achievement.
At the end TEA Commissionar Robert Scott said that despite the fact that fewer schools achieved the highest categories, the “school system as a whole is strong” and that parents should feel confident that the ratings are “absolutely real and valid.”
For few years, we as parents might feel the kids are going to schools that are gone down in rating are not rated byfar compared to others. But trust me the changes are made for good reason for the betterment of our kids and hope eventually schools will catch up and start performing to reach their new goals and ratings.
Actually my son’s Kindergarden school Hancock Elementary in CyFari ISD got downgraded to Acceptable from Recognized. It doesn’t affect him because he is just kindergardener. For other parents may be your kids high school got downgraded, but it’s for good. Teachers & school has to now work harder to reach the new ratings. So let’s support these changes and help our kids and schools to go up on standards compared to other states. You can see school ratings at TEA Ratings and school ratings system details at TEA Rating System. Here are the ratings for Cyfair ISD, Klein ISD, Tomball ISD & Spring ISD
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