Reducing energy usage can mean significant savings on your monthly utility bills.

If your utility bills are sky high and you can’t figure out how to lower them, it may be time for you to take an Energy Survey to figure out where your biggest energy-wasters are.

Other than making sure that lights aren’t left on and faucets aren’t dripping, do you know what can be done to create measurable energy savings? Perhaps it’s time to take Edison’s handy online energy survey to see where you can save some significant dollars.

The energy survey asks questions are about your household energy usage, and then provides tips tailored especially for you to maximize your savings. Remember that Santa Clarita’s energy bills have tiered rates, meaning that the more that you use, the higher the rate they charge you per unit of energy used.

Here are some simple steps that you can take to reduce your energy bills:

Heating and Cooling: Simple steps like installing ceiling fans and using central air conditioning system less during the summer can save you hundreds of dollars a month in the hot Santa Clarita Valley. Be sure to check your thermostat in the winter and summer as well so you’re not running the heater or air conditioning more than necessary. Remember that leaving windows and doors open when the heater or a/c is on will suck that heated or cooled air right out of your house, so be sure that all windows and doors are closed when the unit is on. Clean or replace filters regularly to maximize efficiency of your HVAC unit and reduce the amount of pollutants in the air. Edison’s guidelines are to set the air conditioner to 78 degreees and the heater to 60 degrees to maximize energy savings.

Lighting: Switching to CFL (compact flourescent) lighting is said to save 75% in energy usage over regular lighting, and the CFL bulbs are supposed to last up to 10 times longer as well. And, while you’re thinking about lighting, make sure you’re not leaving the lights on when you leave a room.

Insulation: Be sure that the weather stripping and caulking around your doors and windows is in good shape. Insulate your hot water heater and the pipes running from the water heater to the wall as well. Adequate insulation in the attic can also help to save money on heating and cooling costs.

Appliances and Electronics: Believe it or not, appliances and electronics drain a lot of energy even when they’re not in use. The little LED displays and instant-on remotes mean that those electronics are draining energy on a continual basis. You can stop this energy drain by either unplugging these devices when not in use, or by using a power strip with an on/off switch for groups of electronics like the TV and video games. Old fridges and freezers in the garage can be huge energy hogs as well, so if they’re not in use, it may be time to have them removed and recycled. Earn some extra cash by claiming your recycling rebate for old, working fridges courtesy of SoCal Edison. As with lighting, be sure to turn TV’s and other electronics off when you leave a room.

As you can see, it doesn’t take a lot of effort to create big savings on your utility bills. Saving energy is good for the environment as well as being good for your household budget!

Recycling old refrigerators and freezers saves energy and the environment.

Southern California Edison (SCE) is once again offering free haul-aways and rebates for customers wanting to retire their old refrigerators and freezers. A total of $100 in rebates is up for grabs if you recycle your old fridge and replace it with an ENERGY STAR qualified model, with $50 for the old fridge and $50 for the replacement fridge. Edison estimates that you’ll also save $330 per year on your electric bill by retiring that old fridge.

To arrange for the pick-up of your old fridge or freezer and sign up for the rebates, visit SCE’s website. Old appliances are dismantled at a recycling center where the metals and refrigerants are removed in an environmentally safe manner instead of having old fridges and freezers taking up space in landfills. There is a limit of two appliance pick-ups per household per year.

Low-income SCE customers may also qualify for the Energy Management Assistance (EMA) program, which helps income-qualified households conserve energy and reduce their electricity costs. SCE pays all the costs of purchasing and installing energy-efficient appliances and equipment, which are free to eligible customers. Both homeowners and renters can qualify for the EMA program.

Social Media Profiles and Google Searches are now being used as tax collection tools by the IRS, state revenue agents and others.

The IRS and state revenue agents have begun using social media outlets like Twitter, MySpace and Facebook to track down “tax deadbeats” who brag about upcoming revenues online.

Seems these revenue agents are not supposed to use “friending” someone with false information as part of this process, so they can only look at public profiles in their search for revenues. However, with MySpace profiles defaulting to “public”, there’s apparently lots to be found there. Google searches can also reveal a lot of info, such as job changes and relocations.

According to the Wall Street Journal (which shares a common corporate parent with MySpace), “Agents in Nebraska collected $2,000 from a deejay after he advertised on his MySpace page that he would be working at a big public party.”  Jim Eads, director of the Federation of Tax Administrators said, “These new supplements [internet searches] are often far more efficient than the older ones, such as reading the local newspaper or making inquiries at barbershops and church meetings.” Well, we wouldn’t want the IRS to be wasting time talking with our hairdressers and crashing our parties now, would we?

Social media is a great tool for communicating with peers, reconnecting with friends and building business relationships, but this does illustrate how others may use your online updates for purposes other than what you intended. Do remember that what you post to your social media profile is public information, and be sure to keep that in mind before you hit “share” or “update”.

California Housing Agency offers down payment assistance to qualified first time homebuyers.

One of the biggest challenges facing first time homebuyers is coming up with enough money for a down payment. Fortunately, first time homebuyers in California may be able to take advantage of the down payment assistance programs offered by CalHFA (California Housing Finance Agency). These programs provide either low-interest or no-interest loans for qualified first time homebuyers to cover their down payment or closing costs, and are considered to be “junior” loans (2nd mortgages). Payments are generally deferred on the 2nd mortgages created by these programs.

Homebuyer Qualifications

• In order to qualify for the CalHFA down payment assistance program, you must be a first time homebuyer. For purposes of CalHFA, a first time homebuyer is someone who has not owned and occupied their own home during the last 3 years. However, this requirement may not be necessary if you are buying in a Federally-designated Targeted Area.
• Certain income requirements must also be met for the CalHFA program. For Los Angeles County, the moderate income limits are $90,960 for 1-2 person households and and $106,120 for households with 3 or more occupants. The low income limits are $54,576 and $62,762, respectively.
• The home purchased must be within certain purchase price limits for the county. For Los Angeles County, the maximum purchase price is $729,750 for most areas, and may be as high as $734,891 for new construction purchases in Targeted Areas.
• CalHFA down payment assistance funds are only available for owner-occupied homes. You must live in the home for the entire term of the loan, or until the home is sold or refinanced.
• The homebuyer must meet the lender’s credit, income and loan requirements.
• The homebuyer must a citizen or other national of the United States or a qualified alien. 
• The homebuyer must complete homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization. 

Available Down Payment Assistance Programs

Be sure to check with a qualified CalHFA lender for updates to any of the program requirements. As of the time of this writing, the available down payment assistance programs are as follows:

• Affordable Housing Partnership Program (AHPP)
  • A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities. A deferred payment subordinate loan from a locality assists first-time homebuyers with down payment and/or closing costs. 
• California Homebuyer’s Downpayment Assistance Program (CHDAP)
  • Creates a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value. 
• Extra Credit Teacher Home Purchase Program (ECTP)
  • A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home. 
  • Amounts range from $7,500 to $15,000, depending on the location of the property, or 3% of the purchase price, whichever is greater. This junior loan is only available when combined with a CalHFA first mortgage loan. Interest on the junior loan is deferred and may be reduced to zero if the borrower meets continued eligibility requirements. 
  • This program may be combined with other CalHFA-approved down payment assistance loans or grants (with the exception of CHDAP) to help in the purchase of the home.
  • In order to qualify for this program, the homebuyer must be employed by a High Priority K-12 public school. High Priority schools are those with API scores in the bottom 50%, have no API scores and 70% of the student are eligible for free or reduced cost lunches, or are county continuation schools. In the Santa Clarita Valley, Bowman High School is the only continuation school.
• School Facility Fee Down Payment Assistance Program (SFF)
  • A conditional grant program that provides assistance to buyers of newly constructed homes throughout California. 

Finding a Lender

If you’re a first time homebuyer wanting to take advantage of the California down payment assistance programs, you must use a lender who is qualified by the CalHFA. You can search for lenders here for an updated list. Santa Clarita area lenders qualified for these programs include the following:

• First Mortgage Corp (661) 964-0700
• Universal American Mortgage (661) 702-0140
• CTX Mortgage (661) 255-1854
• Wells Fargo Mortgage (661) 284-6446 and (661) 799-4682
• Washington Mutual Mortgage (661) 254-8700
• National City Bank (661) 260-2751
• Wescom Credit Union (888) 493-7266 x5900

Happy house hunting! If you need a qualified Realtor to help you find your home, please contact Linda Slocum at (661) 670-0349.

Homestead protection may save your home and your home equity from unsecured creditors.

Homesteading in California can provide up to $150,000 in protection against creditors who may sue to force you to sell your home to pay the amounts that you owe them. The amounts owed can be as the result of lawsuits, or just from having overextended credit.

There are two types of homesteads available: an automatic homestead and a declared homestead. An automatic homestead protects some of your home equity until you sell your home, as long as you live in the home (you cannot homestead an investment property). A declared homestead can protect your home equity for up to 6 months after you sell your home, as long as you use the proceeds to buy a new home within 6 months and declare a homestead on that home.

Automatic Homestead

An automatic homestead is in place if you live in the home that you own. You do not have to complete any forms, and it protects your home equity until you sell your home. However, an automatic homestead does not provide the same level of protection as a declared homestead. 

A homeowner who is overextended financially and is being dunned by creditors or debt collection agencies should consult an attorney for advice on the need for filing a homestead declaration. If you are in financial trouble, or expect to be in financial trouble, you may want to consider filing a declared homestead.

Declared Homestead

A declared homestead is filed at the County Recorder’s Office on a properly signed and notarized form that you can either buy in an office supply store or download for free. According to the California Department of Consumer Affairs, “A properly prepared and recorded homestead declaration immunizes the home (and the land on which it is situated) from many (but not all) legal enforcement measures. For example, if a homeowner files a petition in bankruptcy, it may be possible, because of a homestead declaration, to retain the home, or at least a portion of the equity in the property, instead of losing it to creditors.”

In other words, if you sell your home voluntarily without a declared homestead in place, the protection of your home equity may be lost. This means that the proceeds of the sale of your home will go to the judgment creditor or creditors rather than to you, the owner, to use in purchasing another home. Remember that you must purchase a replacement home within 6 months and file a declared homestead on that new home in order for your homestead protection to remain in place.

A declared homestead will NOT protect you from foreclosure by your mortgage lender if you are behind in your payments. Nor will it protect you from a mechanic’s lien or if you are behind in child or spousal support. If you are unsure as to how to complete the Homestead Declaration form, you may wish to hire a homestead filing service. By law, these services cannot charge more than $25, including notary and filing services. You can also find various do-it-yourself guides that will provide examples as to how to complete the form.

At the County Recorder’s Office, the documents presented will be reviewed and recorded, with the original document being mailed back to you within 4-6 weeks. The base fee for recording documents is $7 for the first page, and $3 for each additional page. Certified copies can be requested for $6 for the first page and $3 for each subsequent page.

NOTE: The Van Nuys County Recorder’s Office will be closed until November 30, 2008. If you need to file a declared homestead before then, you’ll need to travel to the Lancaster office instead. Documents may also be mailed to: Document Analysis and Recording, P.O. Box 53115, Los Angeles, CA 90053-0115. Be sure to include the proper filing fees with each document to be recorded. For more information, call (562) 462-2125 in Los Angeles County.

How Much Equity Does a Homestead Protect?

A homestead can protect your home from unsecured creditors in the following amounts (there is no difference in amounts for automatic or declared homesteads):

Disclaimer: This information is not intended as a substitute for legal advice. Be sure to consult an attorney if you are having financial difficulties or if you are unsure of the homestead process. If you are considering filing bankruptcy or need assistance with foreclosure prevention, contact attorney Ray Bulaon at 818.243.7745.

Federal tax credits for energy efficient home improvements have been extended into 2009.

The recently-signed “Emergency Economic Stabilisation Act of 2008″ included an extension of the residential tax credits for energy efficient improvements. The previous tax credits expired at the end of 2007.

The new tax credits for installing energy efficient improvements are only good for 2009 installations – there will be no tax credits for improvements installed during 2008. So, if you’re doing some tax planning for 2009, it may be best to hold off on doing these types of improvements until after January 1!

Tax credits are available for insulation, replacement windows, water heaters, and certain high efficiency heating and cooling equipment. However, be aware that not all Energy Star rated improvements are eligible for the tax credit. Be sure to check EnergyStar.gov for rules and more details.

Here are some examples of the federal tax credits that are available to homeowners:

• Windows: 10% of cost, up to $200, for qualified ENERGY STAR windows, skylights and storm windows
• Doors (exterior): 10% of cost, up to $500, for qualifying doors (most ENERGY STAR doors will qualify)
• Roofs (metal): 10% of cost, up to $500, for qualifying ENERGY STAR metal roofs
• Insulation: 10% of cost, up to $500, for qualifying insulation (not vapor retarders or siding)
• Air Conditioning (split or package systems): $300 for qualifying systems, not all ENERGY STAR systems qualify
• Water Heaters (tankless only): $300 for qualifying systems
• Cars: Credits are available for certain cars, and is limited by 60,000 per manufacturer before a phase-out period begins
• Solar Water Heating: 30% of cost, up to $2,000, not available for water heaters used for pools or spas
• Solar Power (Photovoltaic): 30% of cost, up to $2,000, must provide electricity for the home
• Fuel Cells: 30% of cost, up to $1,000 per kW of power that can be produced

Please be aware that California may provide similar credits as well! See Go Solar California and California Solar Initiative for more information on solar power and available tax credits for California homeowners. Currently the California solar water heating credit is only available as a pilot program in San Diego. Southern California Edison (SCE) is also offering 90-minute Homeowner Solar Information Sessions, with upcoming sessions in Santa Barbara and Santa Monica. You can also take SCE’s Online Home Energy Survey to learn more about saving energy in your home.

Halogen torchiere lamps may be exchanged for energy efficient flourescent models.

The City of Santa Clarita, in cooperation with the Community Energy Partnership, will be sponsoring a free light exchange on June 7 from 8am to 12pm at the City Hall parking lot.

This light exchange is ONLY for halogen torcheire lamps, which are considered to be fire hazards. These lamps burn as hot as 1,000 degrees and have been responsible for hundreds of fires.

These lamps will be exchanged for free energy efficient flourescent lamps in either black, white or satin nickel. Pre-registration is required, and this event is limited to the first 500 registrants.

To register, either call 800.968.5203 or email partnership@energycoalition.org. In your email, be sure to include your name, address, phone number, number of lamps to be exchanged, and the color desired for your replacement lamps (black, white or satin nickel).

This program is NOT the same as the recent Operation Light Exchange, where both halogen and incandescent lamps were exchanged free of charge to over 10,000 participants.

This program is funded by California utility ratepayers and administered by Southern California Gas Company and Southern California Edison, under the auspices of the California Public Utilities Commission.

Online coupons can be budget savers for all types of everyday purchases.

This week’s Saturday Savers tip is an update on online coupons to help you save on all sorts of items for your home and your family. Seems everyone is feeling the pinch of our changing economy lately, so every little bit helps!

Coupons and other offers change frequently, so we’ll be posting updates on a regular basis.

Clicking on these links will automatically add the coupons to your shopping cart. Some of these do have expiration dates, so check back for updated Saturday Savers posts for new coupons and savings. No sense in paying retail prices when you don’t have to!

Oprah is offering a free download of Suze Orman's Women & Money.

Here’s a free downloadable ebook that you’ll not want to miss: Suze Orman’s Women & Money, courtesy of Oprah.

This is a Valentine’s Day gift that is only available until 5pm Pacific today (February 14), so be sure to download it before it disappears!

Women & Money is a 274-page ebook with the following topics:

• For Women Only
• Imagine What’s Possible
• No Shame, No Blame
• You Are Not On Sale
• The 8 Qualities of a Wealthy Woman
• The Save Yourself Plan
• The Commitments
• Say Your Name

Want to see more from Suze Orman? Visit our Suze Orman Library!

Oprah is offering a free download of Suze Orman's Women & Money.

Here’s a free downloadable ebook that you’ll not want to miss: Suze Orman’s Women & Money, courtesy of Oprah.

This is a Valentine’s Day gift that is only available until 5pm Pacific today (February 14), so be sure to download it before it disappears!

Women & Money is a 274-page ebook with the following topics:

• For Women Only
• Imagine What’s Possible
• No Shame, No Blame
• You Are Not On Sale
• The 8 Qualities of a Wealthy Woman
• The Save Yourself Plan
• The Commitments
• Say Your Name

Want to see more from Suze Orman? Visit our Suze Orman Library!