The Internal Revenue Service may add to its payroll some 8,000 new enforcement agents in the next two years. That projection was made by Daniel Werfel, in testimony before the House Committee on Oversight and Accountability, who also said that ongoing slow response times and administrative decisions by the agency has been due to a lack of manpower. The Commissioner of the IRS, Werfel said the agency’s ultimate goal is to have a headcount of around 100,000 employees by 2028. Continued Werfel: “We’re hiring not just agents, we’re hiring customer services reps, accountants, agents.” In projecting a 100,000-member staff, Werfel added: “We have published our three-year view of staffing, which I’m very confident on because I can make key assumptions about the needs and market trends. We are at 90,000 today, and I think over the next three years we should be over 100,000, but not much over 100,000." A report filed by the Government Accountability Office recently said that the IRS has been additionally hamstrung by a large turnover rate, which comprises roughly 7.5% annually, and may be as high as 23% among employees working for the agency only two to three years. Even so, Werfel said that new funding to the tune of $60 billion via the Inflation Reduction Act has allowed the agency to sign on more workers. One result: while only 15% of calls to the IRS were answered in 2022, that number increased to 87% this year. The Commissioner continued: “The IRS for several years was unable to audit a reasonable percentage of complex returns of high-dollar groups, especially wealthy individuals, large corporations, and complex partnerships.” But with the new funding via the Inflation Reduction Act, said Werfel, “We are turning that around.” By Garry Boulard
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After months of debate, voters in Flagstaff will get a chance to weigh in on the building of a comprehensive medical facility and campus. Two years ago, the Northern Arizona Healthcare system said it wanted to build a campus near the Fort Tuthill County Park, roughly 6 miles to the southwest of downtown Flagstaff. As proposed, the project would see the construction of a multi-story hospital and ambulatory care center, with the larger campus being given over to housing, a hotel, grocery store, and a 22-acre natural retreat. Previous reports have estimated that it will cost around $800 million to complete the project. While the proposal has won the support of city leaders, several community groups have been formed in opposition. One, called the Friends of Flagstaff’s Future, has charged that the Flagstaff City Council signed off on the project too quickly, declaring that an “unbiased community needs assessment is warranted.” A second group, Flagstaff Community First, secured the requisite number of signatures needed to put the project on a ballot. Northern Arizona Healthcare subsequently suffered a defeat when Coconino Superior Court Judge Brent Harris denied its request to prohibit the November referendum. Proposition 480 is essentially asking voters to affirm or deny a rezoning approved by the council to allow for the project. “It’s a big development, period, but it’s also very big in terms of magnitude,” Michele James, executive director of the Friends of Flagstaff’s Future, recently remarked to the Arizona Daily Sun. James added: “We think a decision of this magnitude ought to be at the hands of the voting public.” In response, Northern Arizona Healthcare has launched a campaign called “Yes on Prop 480,” with a website that says, in part: “The existing hospital, Flagstaff Medical Center, is too small, too crowded, and too antiquated. It simply cannot keep up with the demands of a growing and aging population.” The website also argues that “with the projected population of Northern Arizona to double by 2050, these problems will only get worse.” By Garry Boulard Albuquerque voters in November will be confronted with a series of bond proposals designed to fund redevelopment initiatives as well as both community and senior centers. Some $13.5 million in general obligation bonds will go for the construction of the centers, while $7.5 million will target affordable housing projects. Another $5 million is set to be used for improvements to the Gibson Health Hub center at 5400 Gibson Boulevard SE, while another $2 million is set for demolition, environmental contamination abatement, and infrastructure improvement work at the Albuquerque Rail Yards. In the category of public safety bonds, $1 million will be allotted for the rehabilitation and upgrading of the city’s community safety facilities, in while $2 million will go for the improvement of buildings belonging to the Albuquerque Fire Rescue department. The largest figure in the public safety bonds section will see $8 million to be used to purchase land and plan and build new fire stations. In the senior center and community center section, $4 million is targeting the upgrading of the Westgate Community Center at 10001 De Vargas Road SW; with $3 million going for work at the Cibola Loop Multigenerational Center at Cibola Road NW and Cuba Road NW. In the parks and recreation bonds section, $5 million will target the building of new aquatic facilities at the North Domingo Baca Park at 7521 Carmel Avenue NE; with another $4.9 million set for general improvements to Little League park properties in the city. This category will also see $2 million in bonded funds for the building of a new education center within the boundaries of the Tijeras Arroyo Biological Zone on the southeast side of the city. Another category devoted to library and museum work will target $2.5 million for the expansion of the education center at the Albuquerque Museum at 2000 Mountain Road NW; and $1 million for general upgrades to libraries located across the city. In calling for the general obligation bond package that was also approved by the Albuquerque City Council earlier this year, Mayor Tim Keller remarked: “By investing in public safety, housing and projects that boost quality of life, we can build a stronger, safer Albuquerque.” By Garry Boulard Contractor responses to a new survey compiled by the American Builders and Contractors indicate strong opposition to both prevailing wage and government-registered apprenticeship programs under the comprehensive Inflation Reduction Act. That legislation, signed into law by President Biden in the summer of 2022, was designed to curb inflation through a series of measures, including the reduction of the federal budget deficit, while also investing in U.S. domestic energy production. But the aspect of the legislation promoting clean energy has sparked contractor opposition, notes the survey, due to a series of mandates. Respondents, said Ben Brubeck, vice president of regulatory, labor, and state affairs for ABC, overwhelmingly believe that the mandates in question will decrease competition among contractors on clean energy projects. Those respondents, said Brubaker in a statement, said they would be “much more likely to participate in clean energy construction if there is clarity in these policies.” The survey also indicated that an overwhelming 98% of respondents said proposed incentives for “union-favoring project labor agreements” would make them less likely to bid on Inflation Reduction Act clean energy projects. An equally large 98% said that complying with union work rules on projects where union wage rates prevail would “increase the burden of complying” with the legislation’s goals. “Many ABC contractors will be needlessly disincentivized from bidding on these projects because of the Biden administration’s lack of regulatory clarity” in implementing the Inflation Reduction Act, continued Brubeck. A White House statement celebrating the one-year anniversary of the Inflation Reduction Act said the legislation has helped the U.S. “meet its climate goals,” while strengthening energy security, creating high wage jobs, and reducing energy costs. The statement added that the legislation has led to the creation of up to 170,000 new clean energy jobs, as well as a private sector investment of more than $110 billion in clean energy manufacturing. The Congressional Budget Office has concluded that ultimately the Inflation Reduction Act will invest upwards of $783 billion in energy security and climate change initiatives. By Garry Boulard A property that was once typical of modern late 1950s motel construction in southern Arizona but was later transformed into an apartment complex is on the market for $24 million. The Sahara Apartments are located at 919 N. Stone Avenue and include 173 units within a three-story building. Originally constructed in 1959, the structure, designated as a Class B Building, thrived for some three decades before falling into decline in the 1990s and subsequently being described by the Tucson Citizen as a "ramshackle hotel, vacant and deteriorating." Originally called the Sahara Motel Inn, the property was extensively renovated in both 2005 and 2020 and now caters to students from the nearby University of Arizona. Listed for sale by the Mesa-based realtor World Class Properties, the building houses a combination of studio, one- and two-bedroom apartments, as well as ground level retail space. It is visually prominent to area residents owing to its modernist vertical front neon sign which originally advertised the building as a motel and now does the same for it as an apartment complex. The property sits on a 3.1-acre site on a main thoroughfare populated with other apartment complexes and hotels. By Garry Boulard Nearly $803,000 in state funding has been awarded for a project in the town of El Dorado, New Mexico that will see the building of long-needed broadband infrastructure. The funding for what is officially defined as a census-designated place, with around 6,000 residents, is coming through a unique program designed to expand broadband access in both unserved and underserved areas. The funding has been approved via the New Mexico Public Regulation Commission and is part of more than $11.8 million released for 18 broadband projects across the state. More specifically, noted Gabriel Aguilera, a member of the commission, the funding is going to the State Rural Universal Service Fund Broadband Program which is tasked with bringing "high quality broadband service to New Mexico in rural areas." In a statement, Aguilera added that in making its funding decisions, the NMPRC gave priority to "those dedicated to serving unserved communities," while at the same time "maximizing outreach to underserved areas while maintaining fair and reasonable costs." According to a study published late last year by the New Mexico Legislative Finance Committee, the state ranks 39th in the nation for broadband access, an improvement over 2020 when the state came in 49th. "With 96% of the nation reportedly served with broadband speeds of at least 25 megabits download and 3 megabits upload," the report continued, only 89% of New Mexico is similarly wired. Each one of the grants awarded by the NMPRC provides up to 75% of the budgeted project price tag, with the remaining 25% expected to be picked up by eligible telecommunications carriers. Altogether, the commission looked at 38 individual projects from 10 applicants, before deciding on the final lucky eighteen. By Garry Boulard A new federal policy counting income from accessory dwelling units is expected to make it easier for homeowners to qualify for Federal Housing Administration financing. Noting that the move will increase the nation’s supply of affordable housing, the U.S. Department of Housing and Urban Development has determined that small units of housing built inside, attached to, or on the same property as a primary residence should be included as part of the site’s built environment. In so doing, homeowners will see their eligibility for FHA loans and even rehabilitation mortgages increase. In a statement, Marcia Fudge, HUD Secretary, said the new policy will both increase the amount of affordable housing across the country, while “helping families to create generational wealth.” As defined by the Housing Department, an accessory dwelling unit is a “single habitable living unit with a means of separate ingress and egress that meets the minimum requirements for a living unit.” Such units, by federal law, are also defined as having a kitchen and bathroom, with an overall space independent of the primary dwelling unit. A press release issued by HUD notes that “FHA-approved lenders may begin offering borrowers mortgages on properties with accessory dwelling units under the new policies effective immediately.” A recent survey conducted by the Federal Home Loan Mortgage Corporation revealed that homeowners have considered building an accessory dwelling unit primarily to either host out-of-town visitors or rent to tenants. But a separate consideration has seen accessory dwelling units used as both permanent and temporary housing for family members. The family member angle has particularly seen seniors moving into such spaces. In a statement, the American Association of Retired Persons noted that it has been active “around the country lobbying for state and local lawmakers to lift zoning regulations and other barriers” to the development and building of accessory dwelling units. It is thought that there may be more than 1.5 million accessory dwelling units currently in the U.S., with Texas, Florida and Georgia seeing the most of such housing. In California alone, according to a recent Cato Institute study, the number of such residences built annually has jumped from 3,100 in 2018 to 17,460 last year. By Garry Boulard A long-standing Colorado Springs building housing generations of retail operations is on the market, nearly 120 years after it was originally built. Completed in 1904, the structure at 2530 W. Colorado Avenue is currently the home to an upscale women’s clothing store called Mackenzie & West and measures nearly 5,300 square feet. With an asking price of just under $1.4 million, the building is a part of a block-long series of one and two-story brick structures built mostly in the early part of the 20th century and housing restaurant, jewelry, and gift stores. Originally known as the Tenderfoot Building and serving as a rooming house, the structure, according to city records, features Queen Anne brickwork at the cornice, and “radiating voussoirs with a central keystone above each second story window.” Extensively renovated in 2016, the structure is classified as a Class C building, and is being listed by the Colorado Springs offices of realtor Hoff & Leigh. With its modest brick façade and scale, the building is a classic of the structures making up what is popularly known as Old Colorado City, a district of commercial buildings and residences that is listed on the National Register of Historic Places. That district, whose origins are traced to 1859 in the midst of the Pikes Peak Gold Rush, was also for many years known for its saloons, bordellos, and even opium dens. In recent years, Old Colorado City has become one of the most popular neighborhoods in Colorado Springs. According to the site realtor.com, the current median price range of a home in the district is around $525,000, with rents for a one-bedroom apartment going for just under $1,100. By Garry Boulard One more important step is being taken in the move to build a gigantic solar cell and panel manufacturing facility in metro Albuquerque. In August it was announced that the Singapore-based Maxeon Solar Technologies was planning to build a more than $1 billion plant in the Mesa del Sol master planned community, some 9 miles to the south of downtown Albuquerque. At the time of that announcement, the company said it wanted to build a 3-gigawatt facility, with distant hopes for a 4.5-gigawatt facility in the future, depending upon customer demand. In revealing the company’s plans, Maxeon Chief Executive Officer Bill Mulligan remarked: “Our new solar cell and panel facility in New Mexico is an ambitious and concrete response to the need to decarbonize the U.S. economy, while creating permanent highly skilled local manufacturing and engineering jobs.” Now the company is requesting $2.4 billion in industrial revenue bonds from the City of Albuquerque, along with another $20 million in Local Economic Development Act funding. Both of those requests have secured a green light from the Albuquerque Development Commission and are on their way to the Albuquerque City Council for final approval. By design, industrial revenue bonds comprise the amount of money any company is willing to invest to get a given project built. In voting on the industrial revenue bonds for Maxeon, members of the Albuquerque Development Commission were responding to a proposal that said the company would create nearly 1,800 high-paying jobs, while meeting the community’s “economic development priorities and objectives.” Founded in 2020, Maxeon is regarded as a global leader in solar innovation. Earlier this year it was listed on the Global 100 Index by the sustainable research business firm Corporate Knights for its clean power and sustainable investments. The Albuquerque City Council is expected to decide on both the industrial revenue bonds and Local Economic Development Act funding request for Maxeon by no later than early next year. By Garry Boulard The country’s mortgage rates, which have been steadily climbing for the last two years, are now at their highest in nearly a quarter of a century. The rate for a 30-year fixed mortgage has hit 8%, a level it hasn’t reached since George W. Bush was first elected president in 2000. According to statistics released by the Federal Reserve Bank of St. Louis, the rate began a measurable increase in November of 2020 when it stood at 2.7%, rising to 5.3% by the spring of 2022, and 6.4% in January of this year. The final more than 1% increase has taken place since August. What happens next appears to be anyone’s guess: according to an outlook just published by the Mortgage Bankers Association, it is thought that the rate will swiftly drop to 7.2% by December, on the way down to 6.1% by the final quarter of next year. In a recent letter to Federal Reserve System Chairman Jerome Powell, several industry groups have noted that increased rate hikes have “exacerbated housing affordability and created additional disruptions.” The letter, jointly signed by the National Association of Realtors, the National Association of Home Builders, and the Mortgage Bankers Association, additionally made note that the nation’s real estate market is “already straining to adjust to a dramatic pullback in both mortgage origination and home sale volume.” In real-life terms, the site MarketWatch looked at the average priced home of $412,000 and determined that with an 8% mortgage rate and a 20% down payment, a new homeowner would have to pay “roughly $3,019 per month.” “To afford that on a monthly basis,” the publication continued, “a prospective buyer would need to make $120,773.” Reporting on a house price index produced by the financial services firm First America, the Wall Street Journal is noting that “home purchasing power is at its lowest point in more than three decades.” The publication added that a combination of home prices and mortgage rates have “risen 17% since one year ago, and 44% since January 2000.” But what goes up, almost always goes down: the 8.1% mortgage rate record in 2000 gradually declined to 4.3% over the course of the next decade. By Garry Boulard |
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