Monday, November 9, 2009

Coon Rapids: Down payment Assistance Program Passes

Coon Rapids: Down payment Assistance Program Passes
City of Coon Rapids
The Coon Rapids City Council voted unanimously to approve a Coon Rapids Mortgage Assistance Foundation recommendation for a new down payment assistance loan program.


Hats off to Coon Rapids Mortgage Assistance Foundation Board of Directors: Lyle Haney, Donna Naeve, Brad Crandall, Scott Schulte, Lonni McCauley, Tim Howe, and our own James Stanton, Shamrock Development and current President of North Metro REALTORS® Association. This program will rehabilitate housing stock and provide incentives for homebuyers to purchase and occupy a home in Coon Rapids as their principal residence.

So what are the details? Coon Rapids Mortgage Assistance Foundation (CRMAF) has allocated a total pool of $300,000 to be available for down payment assistance loans. The funds will be administered directly by Cheryl Bennett, CRMAF staff. The funds are provided in the form of a second mortgage. No payments are required; no interest is assessed unless the loan is repaid within the first three years after closing. The repayment is prorated between years 4-10 and is forgiven after 10 years. Loans are reserved for down payment assistance only at 3.5% of acquisition costs up to $6,000. Funds must be used in conjunction with an FHA 203K mortgage to purchase a single family detached property (within the city of Coon Rapids) with at least $10,000 in repairs. Rehab or renovation work must be completed by a state licensed contractor and work completed within six months of closing. The borrower must occupy the property as their principal homesteaded residence. There are no income requirements. Buyers need not be first time homebuyers. The loan is available for all properties and not foreclosures only.

REALTORS® are encouraged to learn more about this program and utilize it. More information including public announcements, public forums, and a REALTORS® forum to roll out program details are forthcoming.

More information contact, Eric J Myers, Government Affairs Director, NMRA

Wednesday, November 4, 2009

Conservatives Can't Win without Moderates

Well, after reviewing some of the 2009 wins. What do I think about the chance of Republicans picking up seats in 2010 Midterms? Or better yet, what is one piece of advice I would give to the RNC, if given the chance, that would help them increase their chance of success in more races in the future.

  • BE MORE BIG TENT,
  • EXPAND THE BASE,
  • DON'T LET ONLY THE NARROWEST VERSIONS OF CONSERVATISM BE THE ONLY ACCEPTABLE ANSWER

Republican's can't continue to be a narrow 'Conservatives-only party.' They need to hold tight to fiscal conservatism but grab the middle of the electorate with the moderates. Unfortunately, the diehards that show up for endorsing conventions, prompted by Glen Beck and Rush (whom I enjoy as well), can't see the wood for the trees. They continue to endorse only the most ideologically extreme candidate whom too often ends up being seen as too far from the mainstream. Bottomline, Conservative Republicans are their own worst enemy. Conservative Republicans are going to have to realize that in most districts they are going to have to embrace the moderate candidate in order to give them a chance at success. Otherwise, they will continue to be marginalized from the Left and a larger majority of the middle will favor the D's.

Those are the risks.

Might I suggest that someone like Senator Olympia Snowe actually has a point to make with Conservative Republicans. So next time you want to win a 'leans conservative,' 'toss-up,' or even a 'leans Democrat' district, try pulling a candidate from the moderate part of your party and see if you can sell them to the general public as the most reasonable, likable, centrist, and dare I say it mainstream candidate in the race.

Or you can keep 'sticking to your principles' that's all well and good but I submit you aren't really winning the hearts and minds of too many people too often. At least not often enough to keep reversing your losses.

Give up on the idea that a Newt Gingrich or Ronald Regan style body politic will ever rise again. Step up to re-design the future of the party, reinvent yourself, and behold the power of political innovation. It's not just for the Democrats anymore.

Friday, October 30, 2009

Thank You Governor Tim Pawlenty

Dear Governor Tim Pawlenty,

I want to thank you for your personal leadership in resolving the budget deficit. DFL leaders proposed $2B in tax increases in the worst recession since the Great Depression. I really don't know how they can look at themselves in the mirror everyday. It takes courage to stand up to 'tax and spend' liberals in this great progressive state we call Minnesota.

It is truly my belief that you acted within your authority to unallot. That doens't mean the other side has to like it or that it should go without a legal challenge but those are issues for the legislature not the courts. My only hope now is that the courts don't legislate from the bench. Should the opposition wish to attempt to change MN law than they should do so in session.

Hopefully, Lori Swanson, Attorney General, for the State of Minnesota can divest herself enough from her party to actually defend the Chief Executive's Authority under Minnesota law. If not, I would advise the State of Minnesota to seek outside council.

Good luck Governor Pawlenty, we're with you!

Friday, September 11, 2009

My Suggestions for Health Care Compromise

(Here is what I believe a true compromise should look like)

KEEP


1) Guarantees Coverage for existing conditions
2) Prohibited from denying coverage because of a person's medical history
3) They will not be able to drop your coverage if you get sick
4) Focuses on prevention
5) Helps Seniors live independently

MAKE CERTAIN

1) No federal dollars for Abortion Services (per Obama)
2) Medical Mal Reform to keep Dr.'s practicing medicine not defensive medicine (per R's & Obama)


ADD

2) Allow buying insurance across state lines
3) Allow private insurance pooling for individuals who are otherwise uncovered
4) Allow for private health insurance portability
5) Encourage HSA's
6) Recognize and encourage high deductible catastrophic coverage for some insureds (i.e. young adults)
7.) Allow private insurance companies to pool the (47) million Americans without coverage and have them compete for that business

REMOVE

1) Drop the public option in its entirety
2) Drop basic medical insurance mandate or allow opt out for some individuals and or #6/#7 above.


Finally pass this bill by October 1st or set it aside and re-focus on job creation and the economy!

Tuesday, August 25, 2009

Cash For Clunkers--Cash Out, Now What?

Cash for Clunkers program ended yesterday at 8p.m. EDT. Dealerships have until 12 noon today for finalize all paperwork inputs into a government website for claims repayment.

While it certainly was a novel idea (depending on you POV)to get gas guzzlers off the road, promote a more carbon friendly trend, and feed those starving car salesman, it is lacking in a few areas.

Scope: With only $3 billion in rebate funds available there was always going to be a limit to the impact the program could provide. Estimates are that 456,000 cars were traded and sold. However, that's 456,000 out an estimated 136 million gas guzzlers still on the road today. I am no math wiz but my windows based calculator says that's just more than 1/3rd of one percent.

Temporary: There seems to be a phenomena in sales and marketing that I have resigned myself to never understanding. The temporary nature of on-sale, incentives, and rebates. Some major companies have setup a system by which they move from sale to sale. They go by various names. Biggest sale of the year, biggest sale of the season, etc. What I don't understand from these companies is why they are incenting their customers to forgo a purchase today and 'wait for a sale.' Now I know the idea about 'making the sale an event' thereby cajoling even more than a customer would have spent and so on. However, I have also been in a store on a Friday night and the sale doesn't start until Saturday. I find myself asking. "You really don't want me to buy this now?" These same stores can't understand why a store like Wal-mart is raking in profits even in a rough economy. Well Wal-Mart operates on an everyday savings philosophy rather than a 'wait until I decide to have a sale' philosophy. Which do you think people are going to respond to in a tough economy. Additionally, when people's individual economic situation improves do you think they will flood back into your stores? Or go the fiscally prudent route and remind themselves of the valuable lessons espoused during the 'great recession.' Hint even the tv commercial about 'unused' minutes that ends 'these days we can't afford to be wasteful,' are reinforcing a mantra of frugality that will likley linger far into a recovery. Now how does all this fit into 'cash for clunkers?' Well C4C was extremely temporary. Yes, it sold 456,000 cars but all based on temporary incentives. Remove the incentives and all you have left is a sputtering economy, nearly 10% unemployment, and another two years of nearly zero sales in the auto industry. The only one buying a car in the next two years is someone who's car dies and 'has no other choice.' Of course, their is always the exception that proves the rule. Brett Favre is reported to have recently bought a new F250 after receiving his $12 million contract.

Artificial demand: The law of artificial demand is certainly in play for C4C. The government gave away $3,500-$4,500 in cash if you bought a new fuel efficient car right? Doing so prompted 456,000 sales. Think about it. That should scare the heck out of the auto industry. That's 456,000 sales otherwise 'would be sales' from 2-5 years from now. So slice these new car buyers out of your pool of 'would be buyers' from 2-5 years from now or longer. Moreover, if it takes $4,500 in free money from the government to prompt you to buy that's one otherwise purchase adverse buyer. Even further, think about those who need a new car were offered the same incentives and still decided not to purchase. That's an extremely purchase adverse buyer. Who can blame them, real or perceived this is one tough economy to be making medium term financial decisions. The problem with artificial demand is just that. It's artificial its not organic growth but is dependent on some outside variable like a temporary incentive and once removed it falls flat or worse.

Subsidy: Dare we wander into the throws of partisan bickering and a classic debate about tax policy, there is no dispute that the federal government funds expended for this program are from the taxpayers. So the only question left is how do you see it?

Potential View Point:

One may argue that the federal government has a role in regulating markets including interventions for ailing markets like the auto industry and thereby extending a rebate program to provide an extra boost is just what the doctor ordered, even if for just a little while.

Potential View Point:

Government should have no role or a very limited role in market forces. Trends and innovations should be based on responses to market demands. Taxpayer money should not be utilized to incentivize purchasing behavior in preference of one product over another.

Make Your Own View Point:

C4C was: 1) Extremely Successful 2) Successful 3) Below Expectaions 4) Extremely Wasteful

What should the Government Role be in Regulating Markets?

What is your personal tax policy?

Wednesday, August 12, 2009

Obama's Health Care Plan--What do I agree with?

The YEA and Nay on Health Care -- My Prospective

YEA
+ Guarantees Coverage for existing conditions
+ Prohibited from denying coverage because of a person's medical history
+ They will not be able to drop your coverage if you get sick
+ Focuses on prevention
+ Helps Seniors live independently

NAY
- Government Run
- Steps towards universal payer system
- Could lead to rationing care
- Government Involved in your health care decisions
- Focuses on covering everyone rather than Quality and Patient Results
- Costs savings are based on projections of savings from ER visits and more costly forms of health care delivery. It's very difficult to book those savings.
- Tends to usurp the private market
- Yes, fine I can keep my coverage if I "like it" but who's going to like it when the government plan prices the private market out of the market.
- Current world class health care could become second rate.
- There is a reason why people from all over the world come the U.S. for Health Care
- Health Care when delivered is excellent, it's the payment system we need to address. Let's incent insurers to achieve payment reform rather than create new mandates and re-invent the wheel by creating an entirely new government run plan.

The simply not true:
- Death Panels
- Elderly being put out to pasture

Health Care: Pawlenty In the Washington Post

DEAR READER: If you read this and can't agree with even some of it then you should question whether you have any ideas about health care at all that go beyond DNCC talking points. These things just make sense! Let's make the goal quality and pay for performance not just a 'cover everyone' government plan. -- Eric J. Myers


To Fix Health Care, Follow the States

By Tim Pawlenty
Monday, August 3, 2009

If you tie money to results, you'll get better results. Unfortunately, government often dumps money into programs without regard to accountability and outcomes. This past week, Democrats in Congress have been busy tinkering with a Washington takeover of the health-care system, but perhaps they should look instead to the states for models of market-driven, patient-centered and quality-focused reform. Rather than taking power away from states, federal health-care reform should use the lessons we've learned tackling this crisis in our back yards.

In Minnesota, our state employee health-care plan has demonstrated incredible results by linking outcomes to value. State employees in Minnesota can choose any clinic available to them in the health-care network they've selected. However, individuals who use more costly and less-efficient clinics are required to pay more out-of-pocket.

Not surprisingly, informed health-care consumers vote wisely with their feet and their wallets. Employees overwhelmingly selected providers who deliver higher quality and lower costs as a result of getting things right the first time. The payoff is straightforward: For two of the past five years, we've had zero percent premium increases in the state employee insurance plan.

Minnesota has also implemented an innovative program called QCARE, for Quality Care and Rewarding Excellence. QCARE identifies quality measures, sets aggressive outcome targets for providers, makes comparable measures transparent to the public and changes the payment system to reward quality rather than quantity. We must stop paying based on the number of procedures and start paying based on results.

Instead of returning power to patients and rewarding positive outcomes, many Democrats in Washington want a government-run plan that would require states to comply with dozens of new mandates and regulations. One study by the Lewin Group recently concluded that an estimated 114 million Americans could be displaced from their current coverage under such a plan, and another study by House Republicans said the plan could result in the loss of up to 5 million jobs over the next 10 years.

In typical fashion, the self-proclaimed experts piecing together this Democratic health-care legislation are focusing on only one leg -- access -- of a three-legged stool that also includes cost and quality. Expanding access to health care is a worthwhile goal. But equal or greater focus should be placed on containing costs for the vast majority of Americans who already have insurance. Those costs will not be contained by a massive expansion of federal programs.

Massachusetts's experience should caution Congress against focusing primarily on access. While the Massachusetts plan has reduced the number of uninsured people, costs have been dramatically higher than expected. The result? Increased taxes and fees. The Boston Globe has reported on a current short-term funding gap and the need to obtain a new federal bailout.

Imagine the scope of tax increases, or additional deficit spending, if that approach is utilized for the entire country.

Congress has an opportunity to take a genuinely bipartisan approach to health-care reform, which is unquestionably needed. Instead of tweaking the Democrats' plan to put Washington bureaucrats in charge of health care, I recommend a do-over. There are many common-sense elements that could form the basis for bipartisan health-care reform, including: medical malpractice reform, prohibiting coverage denials based on preexisting conditions, guaranteeing portability, electronic prescriptions and medical records, streamlining billing codes and practices, price and quality transparency, pay-for-performance measures, one-stop primary-care "medical homes," chronic disease management initiatives, tax equity for health insurance purchases, increased incentives for health savings accounts, creating the ability to purchase insurance or form risk pools across state lines, and much more.

As my friend Newt Gingrich said last month when he was at a health-care reform event in Minneapolis, Congress is considering a 1975 socialized medicine model, brought up 34 years later by people who have been in Congress since the early 1970s. The world has moved on. It's time for Democrats in Congress to catch up. Washington can and should do better. But they'll need to listen to and learn from our experience in the states to make it happen.

The writer, a Republican, is governor of Minnesota.

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