COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
LR No.: 3166-01
Bill No.: SB 774
Subject: Housing: Fees, Recorder of Deeds
Type: Original
Date: February 26, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Lifetime Home | $0 | $0 | $0 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 5 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 or (Unknown) | $0 or (Unknown) | $0 or (Unknown) |
ASSUMPTION
Officials of the Office of State Treasurer assume this legislation would be administered the same as the Missouri Housing Trust Fund (Section 215.034). Assuming this is correct, there would be no fiscal impact to the State Treasurer's Office.
| Officials of the Department of Economic Development - Housing Commission assume that MHDC would require (1) housing development officer and (1) Auditor Inspector to administer the Lifetime Home Fund program. The housing development officer would be responsible for the overall administration of this program and the Auditor Inspector would be responsible for ensuring that the housing built meets the accessibility guidelines in the legislation. The costs for the housing development officer are prorated between recording fees and General Revenue funds because MHDC is limited to using 2% of the recording fees for administration. The costs for the remainder of the housing development officer and the Auditor Inspector are shown as General Revenue costs. |
ASSUMPTION (continued)
Officials estimate Personal Services cost for 2 FTE for 10 months of FY 2005 at $68,333, and for FY 2006 cost is estimated at $84,050, and at $86,151 in FY 2007. Fringe Benefit costs are estimated to be $28,290 in FY 2005; and $34,797 in FY 2006; and $35,667 in FY 2007. Equipment and Expense total $16,611 in FY 2005; and $5,768 in FY 2006 and $5942 in FY 2007.
Officials estimate income from the $1 fee for 10 months of FY 2005 at $1,638,890; and in FY 2006 at $1,966,666; and $1,966,666 in FY 2007.
Oversight assumes that the provisions of Section 215.264.2 states that "all adninistrative costs of the Lifetime Home Program incurred by the Missouri Housing Development Commission shall be paid from this fund, which costs annually shall not exceed two percent of the net annual revenues received into the fund". Therefore, Oversight will show costs to the fund of 2% of the net annual received into the fund. Oversight will show no costs to the State's General Revenue Fund. Any costs in excess of 2% would have to be obtained by the Missouri Housing Development Commission during the annual appropriation process.
Officials of the Department of Revenue assume no fiscal impact from this proposal.
Officials of the Boone County Recorder of Deeds assumes many counties would have to re-program to calculate the new fee and reformat new reports. Some county systems are not expandable, and could have substantial costs.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| LIFETIME HOME FUND | |||
| Income to Lifetime Home Fund | |||
| from $1 recording fee | $1,638,890 | $1,966,666 | $1,966,666 |
| Cost to Lifetime Home Fund | |||
| Administration cost of 2% of Income. | ($32,778) | ($39,333) | ($39,333) |
| Cost to Lifetime Home Fund | |||
| $5000 grant money for homes beginning January 1, 2004 | ($1,606,112) | ($1,927,333) | ($1,927,333) |
| ESTIMATED NET EFFECT TO LIFETIME HOME FUND | $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| COUNTIES | |||
| Cost to Recorder of Deeds | |||
| programming upgrades | $0 or (Unknown) | $0 or (Unknown) | $0 or (Unknown) |
| ESTIMATED NET EFFECT TO LOCAL GOVERNMENT * | $0 or (Unknown) | $0 or (Unknown) | $0 or (Unknown) |
* Oversight assumes costs to Recorder of Deeds, on a statewide basis, would not exceed $100,000.
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act establishes the lifetime home grant program. Under this act, an additional fee of $1 will be charged on real estate instruments. These additional fees will be deposited in a newly created fund known as the Lifetime Home Fund. This fund shall be administered by the Missouri Housing Development Commission. Beginning January 1, 2005, individuals who build a universally designed lifetime home may apply for a payment from the fund in the amount of $5,000. This act also allows an individual to qualify for a lifetime home grant, up to $5,000, by renovating a qualified existing residence.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of State Treasurer
Department of Revenue
Department of Economic Development - Housing Commission
Boone County Recorder of Deeds
Mickey Wilson, CPA
Director
February 26, 2004