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Subdivisions Will Now Need Water Rights to Drill Home Wells

by Tim Hart

A county judge has put a stop to subdivisions unrestricted use of exempt wells in the state. Jeff Sherlock nullified a 1993 Department of Natural Resources and Conservation law that allowed developers of subdivisions to drill an unlimited number of small, home wells without needing to get a water rights permit. According to the 1993 law, so long as the wells were not connected, a subdivision could pump 1,000 acre-feet of water without a permit. Farmers and ranchers using the same amount of water had to apply for a water right or permit to use state water.

The fight over subdivision water rights began in 2009 when a few Billings ranches asked for a rule change, due to a lack of available water from nearby subdivision use. Under Montana law, anyone using state water needs a water right and people with the oldest water rights get priority. However, a loophole in the books allowed wells pumping less than 10 acre-feet a year to not need permits. When the law was drafted in the 70’s, there just weren’t that many of them. But recently, subdividers had used the law as a way to avoid either paying a city for their water, or attaining a water permit.

Senior water rights holders can ask other junior water rights holders to use less water when it is short, but they have no way to make exempt wells curtail their water use. But now, the judge has ruled against the law, making subdivisions hook up to city water or get their hands on a permit.

This law will have an impact on real estate development in Bozeman and Montana. How it impacts new subdivisions is yet to be seen, but homeowners moving into these subdivisions should be aware of the updated law.

Source: http://www.bozemandailychronicle.com/news/environment/exempt-well-ruling-goes-against-unrestrained-development/article_47b8c4fa-58b1-11e4-88be-b34d014024f4.html

 

 

Big Sky business owners and community members are hoping to establish a TEDD in Big Sky to foster increased, infrastructural development. A TEDD, a targeted economic development district, is a district that is eligible to receive additional county taxes for improvement of its infrastructure. A TEDD defines where new developments must occur, based on the money it receives from the TIF system.

With a TIF, tax increment financing, the city would not see an increase in its taxes, despite increasing its development projects. Big Sky would be able to take part in this program by taking the incremental improvement in base property values and new construction from the expected taxable values and use that leftover money to fund developments within the TEDD.

According to the Big Sky Chamber of Commerce, the TEDD is designed to fund projects that would normally never be started. Essentially, if the project were to fail without additional funding, then and only then, can the project really be considered eligible within the TEDD.

A TEDD and TIF in Big Sky would certainly help foster economic growth in the area. For a small tourism based town, their focus on improving their own infrastructure, shows their desire to continue growing the town of Big Sky. As the economy improves, it will become more attractive to businesses and investors (whether real estate or other), helping to get the ball moving, and growing Big Sky past just a vacation real estate destination.

Source: http://www.lonepeaklookout.com/news/article_3b03c53a-5563-11e4-a7c8-d7cffd97bb55.html

 

 

Market Update: Gallatin County Single Family Residences

by Tim Hart

This month, we will highlight single family homes in the Gallatin County from the first two quarters of 2013 compared to the first two quarters of 2014.

Here are a few stats for all of Gallatin County for single family residences:

  • Units increased in the first two quarters by 8.5% (554 sold in 2013, 606 sold in 2014)
  • Dollar volume increased in the first two quarters by 18.8% from $198,018,500+ in 2013 to $243,809,300+ in 2014
  • Average sale price also increased from $364,732 to $400,861.50
  • For 2014 through 7/31/2014
    • Sold volume already at $304,905,187 and 771 units

Summary – based on increases across the board in the first two quarters from 2013 to 2014, the 2014 market continues to shine, looking to surpass 2013 annual totals easily.

New Affordable Housing Option Coming to Bozeman

by Tim Hart

I just read a really great article on this new affordable housing area off Cottonwood Road. Homes have been selling even before they are finished building. There are some great options regarding mortgages as seen in the article below. Some listings are still available. Feel free to Contact me at 406-570-5730 if you have any questions about them.

Here is the article: http://www.kbzk.com/news/new-affordable-housing-option-available-to-own-in-bozeman/

 

Mortgage Rates Hit Lowest for 2014

by Tim Hart

After mortgage rates dropped in the U.S. for the second week in a row, borrowing costs hit their lowest rate yet for 2014. This week, the average rate shifted from 4.12% to 4.1% for a 30 year fixed mortgage. Although the percentage shift may be small, when added up over 30 years, even the smallest changes can greatly impact the cost of home ownership. A 30 year rate has not been this low since the end of October last year. 15 year mortgages also saw price reductions, slipping from 3.24% to 3.23% this month. The 30 year rate has been consistently declining since it had hit a two year high of 4.58% last August. Experts foresee the lower rates supporting and fostering home demand. July trends support these expert’s claims, as previously owned homes sold at an annualized rate of 5.15 million this July, up 2.4% from June. The longer the rates stay low, the more activity can be expected in the future of the US housing market.

Source: http://realestate.msn.com/blogs/post--mortgage-rates-hit-new-2014-low

East Wilson School May Become Residential Area

by Tim Hart

It looks like Wilson School may see some new life as a residential area. Bridger Builders presented a case to the city to turn the area into 18 single household units. Looks like there will be a parking garage as well for new residents. I will be interested to see whether the city decides to move forward with these plans. The meeting is at 6pm on Monday the 25th.

Source: http://www.kbzk.com/news/future-plans-for-east-willson-school-to-be-presented-to-city/

Displaying blog entries 1-6 of 6