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I get a fair amount of calls asking who orders the appraisal.

Since 2009 the lender is required to order the appraisal. In 2009 the Home Valuation Code of Conduct was enacted by Freddie Mac and the Federal Housing Finance Agency(FHFA).

Effective May 1, 2009 Freddie Mac no longer purchased mortgages from Sellers that do not adopt the Code with respect to single family mortgages delivered to Freddie Mac.

The Lender Requirements

• Prohibits lenders and third parties from influencing or attempting to influence the development, result, or review of an appraisal report.
• Requires lender to ensure that borrowers are provided a copy of the appraisal report no less than three business days prior to closing, unless the borrower waives the requirement. The lender may require the borrower to reimburse it for the cost of the appraisal, but the lender must provide a copy of the appraisal report to the borrower at no additional cost.
• Requires any third party specifically authorized to perform certain actions on behalf of the Seller to be in compliance with the Code.
• Requires lenders or third parties authorized by lenders to be responsible for selecting, retaining, and providing for payment of all compensation to appraisers. The Code does not allow any other third parties to perform these activities.

In the last Blog I discussed Historic Tax Credits. Taxes are again the topic, however; this week we'll discuss ways to appeal your property tax assessment.

August 1st begins the two week period each year that we as homeowners are allowed to march down to City Hall and appeal our tax assessment. In the past two years, the Assessor's Office has reassessed the majority of properties in New Orleans. While I feel they have overall done a fair job of assessing current values, there are some homes that have been overvalued.

When you feel your home is overvalued there are several things you should collect prior to heading downtown.

1. Interior and exterior photographs of your home to show current condition and overall size.

2. Insurance documents showing the amount your home is insured for.

3. An appraisal completed preferably during the prior twelve months showing a floor plan with gross living area.

-Gross living area is the total livable area that is heated and cooled. All appraisals should have this .

The Assessor will look at the documentation you provide and compare it with the data they have on file. Typically, the problem is an inaccurate gross living area, or condition.

Regardless of the discrepancy, the Assessor's Office will take a good look at the problem and, I find are quite willing to make a reasonable change.

You can find more information on the Orleans Parish Assessor's Office website

http://nolaassessor.com/index.html

 A tax credit is a direct, dollar for dollar, reduction in the amount of money a taxpayer must pay in taxes for a given year. For example, if a taxpayer owest $6,000 in taxes to the IRS, but has a $3000 credit, he or she only pays $3000.  A tax credit is much better than a decudtion which merely reduces a taxpayer's income and puts him or her in a lower tax bracket.

The Louisiana Office of Cultural Development Division of Historic Preservation is responsible for processing Historic Tax Credits in Louisiana. The initial paper is somewhat detailed, but once you get past the intial application it's mostly downhill. I find the initial work is well worth the money saved. Homeowner's may qualify for a 25% tax credit(50% for vacant and blighted properties) against their individual state income taxes when they rehabilitate their historic home. The property must be the owner's primary residence, however there is a separate program for income producing property.

Here is a quick overview of the Tax Incentive programs available in Louisiana.Tax Incentive Programs - LA_Tax_Incentives_Program_Quick_Reference_Guide.pdf

For more information check out the States site at http://www.crt.state.la.us/hp/tax_incentives_program.aspx

Ever wonder how your property is zoned? The city of New Orleans has a new Planning and Zoning Lookup Tool. This tool provides zoning information for all properties in New Orleans. It's a free, fast and easy way to find out what your zoning is.

Here is the link

While researching a property in the Garden District of New Orleans I ran across and interesting bit of info. Louisiana Avenue a wide avenue shaded by 100 year old live oak trees was originally named after Joseph Wiltz, a plantation owner in Faubourg Plaisance(later part of the City of Lafayette).

Mr. Wiltz divided the land into forty-two plots, with Grand Cours Wiltz as the main thoroughfare. Early in the the twentieth century the name was officially changed to Louisiana Avenue and Grand Cours Wiltz faded away like a coat of paint in the August sun.