CCAR Public Policy & Advocacy Guide

Public

& Advocacy Guide

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Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functional cities, the development of productive industries and farms, and the preservation of a healthful environment.

PREAMBLE TO THE REALTOR® CODE OF ETHICS

Coastal Carolinas Association of REALTORS® has adopted the following guiding principles and policy statements for the purpose of safeguarding our community, our business, and our quality of life.

CCAR works on behalf of our membership to ensure an environment exists in local government that promotes homeownership and allows real estate professionals to conduct business free from onerous rules, regulations, and ordinances. We work in three arenas: Policy, Politics and Public Affairs.

Edited by the CCAR Board of Directors on October 12, 2022.

Effective immediately.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

GUIDING PRINCIPLES

Coastal Carolinas Association of REALTORS® (CCAR) has more than 4,900 members from Georgetown and Horry counties and represents the vast majority of professionals active in all phases of the local real estate industry. All REALTORS® have pledged allegiance to a strict Code of Ethics and Standards of Practice, and are dedicated to protecting the free enterprise system and the right of individuals to own real property. To this end, CCAR members offer the benefits of their knowledge of real estate, their experience, and their technical expertise to the public in general and the government in particular.

REALTORS® believe homeownership serves as a cornerstone of the democratic system of government and that it deserves a preferred place in this country’s values system. Real property ownership positively impacts neighborhoods, communities, and the region’s economic stability.

REALTORS® believe the right of property ownership confers with it the freedom to make full use of one’s property, which should not be infringed upon.

REALTORS® are committed to the protection and preservation of private property rights. Private, individual ownership of land should be respected at all levels of government and the value of that land should not be artificially affected by government intrusion.

REALTORS® believe in the free transfer of real property. The fundamental right to own property is guaranteed in the Constitution of the United States and that right should not be infringed upon, nor should property be taken away without just compensation.

REALTORS® support policies that encourage property choice, economic development, and adequate infrastructure in an effort to protect the quality of life that has made the Grand Strand an attractive place to locate.

REALTORS® believe all persons in the community should have the right to equal opportunity housing. They should be able to rent or purchase their shelter of choice, regardless of race, color, religion, sex, handicap, familial status, national origin, sexual orientation or gender identity. Every individual should have the opportunity to live in a safe and vibrant community.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

PRIORITY ISSUES

ANNEXATION

CCAR supports and encourages annexation because it provides basic services for municipality residents and can increase a municipality’s tax base. However, the association also believes property taxes should never become a burden for home or business owners.

DIVERSITY AND INCLUSION

Through inclusive collaboration and mutual respect for our colleagues, we focus on the principles that matter to the organization and drive how we engage with each other to reach our common goals. We fully embrace perspectives from all walks of life regardless of race, ethnicity, gender, religion, age, sexual orientation, gender identity, disability, national origin, socioeconomic status, political affiliation or any other qualities by which we may define ourselves. We commit to bringing out the best in ourselves, uncovering our hidden talents, and celebrating differences in our day to day interactions. These beliefs are essential as we serve our members who help fulfill the dream of home and property ownership in America.

ECONOMIC DIVERSIFICATION

CCAR will continue to support proposals in the public policy arena that will diversify our tourism centric economy. Through this work, we support municipalities working to take advantage of federal and state programs and encourage government agencies at every level to work toward attracting private investment to the Coastal Carolinas area.

EDUCATION

Probably no single factor, other than cost, discourages home purchases in a community more than the real or perceived poor quality of education and educational infrastructure. Striving for an excellent education system throughout Horry and Georgetown County schools is critical to the continued economic growth and prosperity of our region.

EMINENT DOMAIN

CCAR’s position on eminent domain is aligned with that of the National Association of REALTORS® (NAR). A high level of scrutiny must exist when eminent domain is used for public purposes because it infringes upon the rights of private ownership and how the specified land is to be used. However, there are special circumstances in which the use of eminent domain

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

is required and, in those situations, the government must provide sufficient proof that the project to be completed is for the betterment of the community at large. When this is the case, CCAR members believe owners should be fairly compensated for their property and reimbursed for any additional costs incurred from the condemnation action.

ENERGY EFFICIENCY

CCAR supports local, state, and federal policymakers in looking for ways to maintain and increase incentives to help individual homeowners make voluntary energy efficient improvements to their homes to ultimately reduce their utility costs. Overall, energy conservation and a diversity of energy types can lower energy costs and make the region a more affordable place to live.

ENVIRONMENT

Communities throughout the nation are seeking ways to commit to policies and programs that reduce environmental impacts. REALTORS® recognize the importance of encouraging the industry to move toward environmentally friendly principles. However, development of climate change/energy conservation policy should be guided by the key principles of protecting private property rights, maintaining affordability/availability and Smart Growth principles, which accommodate commercial and residential growth. Environmental initiatives and responsible development are not mutually exclusive and, therefore, climate initiatives should not create barriers to the ability to own, use or transfer property.

In moving toward environmentally conscious practices that encourage principles of sustainability and energy conservation, REALTORS® support:

• The U.S. Army Corps of Engineers and the S.C. Department of Health and Environmental Control (DHEC), as subject matter experts, continuing to have jurisdiction over wetlands and wetland buffers. Where local wetland protections are considered, they should remain voluntary.

• A shift toward environmentally friendly solutions fostered by a voluntary, incentive based approach that allows for a positive impact on the environment and global community.

• The responsible management of natural resources to protect the area we call home and help prevent further flooding through mitigation technologies. CCAR is a member of the American Flood Coalition.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

• Efforts to provide property owners with the education, incentives, and resources they need to improve their homes.

• Voluntary programs and standards that seek to mitigate environmental harm, while providing market based incentives for energy conservation activities and focusing on the sustainability of real estate assets.

• The voluntary use of sustainable materials in the construction of new buildings, as well as voluntary energy efficient improvements to existing buildings, when it makes economic sense and reduces environmental harm.

• The offering of educational programs and certifications to the REALTOR® community to help facilitate the shift toward environmentally friendly solutions in the Coastal Carolinas area.

• Comprehensive energy plans to ensure energy independence in our future and optimize cost effective use of renewable and alternative energy sources, including nuclear power, solar power, and wind energy.

• Ensuring efficient delivery of energy needs to commercial and residential customers, while directing tax incentives at job creation through alternative energy sources.

• Sensible, flexible, incentive based guidelines for recycling programs within targeted industries.

ESSENTIAL BUSINESS

REALTORS® operate as essential business practitioners and in partnership with a variety of city, county, and state agencies that ensure a smooth transaction. CCAR supports efforts at all levels of government that ensure real estate transactions run smoothly in all instances. We support fluidity and accessibility in our business practices, even under emergency orders.

FAIR HOUSING

CCAR members subscribe to a policy of fair housing and believe that equal opportunity can best be achieved through continued leadership and education, observance of the spirit and letter of the law, and through cooperation between the real estate industry and the public. CCAR members believe in an open housing market.

Fair Housing laws serve to protect anyone in a housing related real estate transaction from discrimination. The Federal Fair Housing Law provides all people the right to freely choose where they will live without regard to race, color, religion, sex, handicap, familial status, or national origin. Discrimination in housing adversely impacts the ability to own, purchase, convey, rent, or occupy housing and adversely impacts the ability of real estate professionals to

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

conduct their business. CCAR supports the policy of the NAR, which is to provide equal professional services to all people.

GROWTH & DEVELOPMENT

The best prescription for a healthy real estate market is the promotion of a strong national, state, and local economy. CCAR members understand that smart growth and redevelopment are essential. In addition, for communities to prosper, economic incentives must be created in areas in which individuals want to live, work and play.

Georgetown and Horry counties must consistently pursue policies that will attract the economic opportunities necessary to expand our tax base, provide housing choices and employment, and deliver necessary services. Properly conducted land use programs can benefit communities, but planning efforts should not infringe on the basic rights of an individual to acquire, possess, transfer, or use land.

CCAR supports policies that provide the basic building blocks of a strong economy and local incentive grants that allow communities to be competitive with other marketplaces. CCAR opposes impact fees and other “nuisance” taxes, which discourage development of new homes and businesses.

Zoning must adequately provide for the needs of business and industry, as well as housing. Provisions must be made for existing, as well as new businesses, and the permit process must be efficient and fair.

HOMEOWNERSHIP ASSOCIATIONS

Homeowners Associations (HOAs) exist to enhance neighborhoods and increase property values. Increasingly, HOAs are taking on functions that local governments traditionally provide.

CCAR recognizes that an important component for stable and dynamic neighborhoods is a fully functional and strong HOA or Condominium Association, where one has been established. A neighborhood with a weak and/or underfunded association, or one with lack of owner support and participation, is vulnerable. Such a neighborhood is in danger of physically declining, resulting in property value loss.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

CCAR opposes any practice of HOAs or Condo Associations that unfairly impairs sellers or their agents in the free marketability of their property interests or creates unnecessary costs and delay. Any HOA regulation should seek to provide an appropriate balance between private property rights and community standards, while keeping intact property owners’ First Amendment rights.

INFRASTRUCTURE

CCAR supports attempts to enhance all aspects of local infrastructure.

Transportation

Transportation is the mode to navigate either on roads and highways, bicycle and pedestrian routes, transit, commuter transit and waterway. Expansion of the capacity to transport people represents an important investment in the future growth of our economy and the quality of life in our region. By investing in roads and public transportation, the quality of life is maintained and enhanced. The failure of transportation systems to meet the ever-growing demands placed on them has reached a critical point. A transportation plan should be included in every jurisdiction’s comprehensive plan and capital improvements plan.

CCAR supports funding for I 73, I 74, and the Southern Evacuation Lifeline (SELL). CCAR supports funding for local roadway improvements as well as the expansion and maintenance of the Georgetown Port to include dredging and deepening.

Broadband

CCAR supports efforts to expand broadband access to all communities in our area. Gaps in access to broadband affect not only educational opportunities but also business growth and access to healthcare. Ensuring access to broadband will help improve our communities and prepare our future workforce.

Beach Renourishment

CCAR supports continued funding for beach renourishment. Renourishment protects hundreds of millions of dollars in real estate.

IMPACT FEES

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

Economic vitality is critical to sustaining Horry and Georgetown counties. A healthy housing market builds strong communities, enhances the tax base, and creates new employment opportunities. The imposition of development impact fees discourages new businesses from locating in the area, existing businesses from expanding here, and inflates the cost of new housing. Impact fees can also create upward pressure on the cost of existing properties, create a disadvantage for lower income households, and reduce housing opportunities across the income spectrum.

Development impact fees place the burden for funding public facilities on a small segment of the housing community; however, the entire area benefits from these improvements. Good public policy allocates the financial responsibility for public facilities equitably among the broadest base possible.

Impact fees, sales and property taxes are imposed on building materials for new home construction and lot development. The builder then passes these costs on to the homebuyer and increases the cost of new housing.

CCAR is opposed to any expansion, increase, or levying of new or existing impact fees. Where impact fees are enacted, guidelines should be stringently followed to ensure accountability for how and for what the fee can and will be used. Impact fees should be used solely for capital improvements related to a specific new development.

CCAR is committed to working with officials to identify alternate means for financing additional public facilities

LOCAL GOVERNMENT REFORM

CCAR and the South Carolina REALTORS® support efforts to reform and streamline local government. The 20th century system in place today made sense when it was established, but with today’s technological advances, a new system must be created that works in the 21st century. This means different facets of local government must be evaluated and some processes streamlined.

MORATORIUMS

CCAR opposes moratoriums that affect real property, except where further study is justified, and a specific time period has been established for the study.

POLITICAL RESPONSIBILITY

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

As “The Voice of Real Estate” in Horry and Georgetown counties, it is the responsibility of the association and its members to remain vigilant in the affairs of government. CCAR urges members to become involved and participate in political activity at all levels of government, particularly through positions that directly affect real estate and the area’s quality of life.

Any attempt to reduce the participation of voluntary political action committees undermines a basic political freedom and civic right. Candidates should be encouraged to seek support from many diverse sectors of the electorate to ensure representation of the widest spectrum of viewpoints.

CCAR believes in the democratic process and actively supports political candidates, regardless of party affiliation, who strongly identify with issues important to the real estate industry, the free enterprise system, the real estate consumer and the preservation of private property rights.

PREDATORY LENDING

CCAR is not supportive of any action that would be detrimental to the housing market in this community and opposes any action that can be conceived of as predatory lending. There is a proper role that lending institutions play to maintain a vibrant marketplace. Therefore, CCAR supports anti predatory lending initiatives that protect the public and help maintain a viable and thriving marketplace.

PUBLIC POLICY COORDINATION

Subject to the policy adopted herein, the Coastal Carolinas Association of REALTORS® officially pledges support of the legislative positions of the National Association of REALTORS® and the South Carolina REALTORS® in the absence of specific action taken by the CCAR Board of Directors.

REAL ESTATE TRANSFER TAX

A real estate transfer tax is a state or local tax assessed on real property when ownership of the property is exchanged between parties. Although the tax is generally calculated based upon the value of the property, it is assessed only on the sales transaction instead of on an annual basis, like the general property tax. Real estate transfer taxes may be assessed on either the buyer or the seller, but both are usually jointly and severely liable for the tax. As a source of general fund revenues, the realty transfer tax is unstable and burdensome, as it is unpredictable as a source of revenue applied only to a narrow tax base.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

CCAR opposes real estate transfer taxes for their negative impact on real property costs and the industry as a whole. Further, CCAR urges the repeal of any established realty transfer tax because the tax is a major burden to buyers and sellers of real property, particularly at the time of closing.

CCAR opposes the adoption of a private real estate transfer fee by private groups/associations and encourages the enactment of laws or regulations that would prohibit the use of deed restrictions to impose such fees.

RENT CONTROL (FREE USE OF PROPERTIES)

CCAR opposes the adoption of rent control legislation. The association supports and will defend the right of area residents to own property free of unreasonable controls.

CCAR members believe rent control and regulation compliance expenses increase the cost of housing for consumers. These expenses are a disservice that hastens the deterioration and loss of existing housing, discourages the construction of new housing, and increases costs for local government, due to enforcement expenses.

SIGN ORDINANCES

The right of homeownership confers with it the freedom to make full use of one’s property. The freedom of property owners to display signs on their own property without government interference is a matter of free speech guaranteed by the First Amendment of the U.S. Constitution.

Imposing fees on “For Sale,” “Sold,” and other types of real estate marketing signs authorized by owners on their own property is an intrusion on the rights of property owners and an unnecessary tax.

Sign ordinances should strike a reasonable balance between the needs of buyers and sellers, who depend upon real estate signs to help market and sell homes, and the necessity to ensure that signs do not present a threat to general public safety.

Sign ordinances should be consistent and easily understood by all.

CCAR members:

• Support sensible regulation of size and placement of signs on private property.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

• Support reasonable regulation of the number, duration, and placement of signs in the public rights of way.

• Oppose the imposition of fees on property owners for the placement of signs on their own private property.

• Oppose any requirement that mandates that only licensed sign installers, or their designees, may place signs on private property.

• Oppose HOA’s requiring signage inconsistent with state licensure law requirements for signage content

• Will continue protecting the rights of property owners and their agents to use signage in the process of selling or renting their properties.

SHORT TERM RENTALS

Many cities have adopted or are seeking to adopt ordinances requiring property owners to pay an annual fee to register rental properties with the city or ordinances banning short term rentals altogether.

The cities argue that rental registration ordinances give them tools to address code violations and contact property owners. However, cities across our area already have code enforcement divisions whose sole purpose is to identify, deter, and remedy code violations on properties. Additionally, property owners are readily identifiable and accessible through existing government records.

CCAR believes that regulating short term rentals is contrary to the principle that the right to rent is a fundamental aspect of private property ownership. Further, cities should use the tools already at their disposal to combat nuisance properties and bad actors and to protect the health and safety of tenants, property owners, and community members. Short term rental ordinances infringe on a property owner’s rights and their ability to conduct business. In addition, they are often duplicative, ineffective, and intrusive to owners and tenants of rental properties.

Therefore, CCAR opposes any mandatory, blanket rental registration program. Such programs can affect marketability and affordability.

TAXES

South Carolina REALTORS® (SCR) is the leading advocate in the state on property tax reform.

CCAR supports any effort to reduce the tax burden on businesses and second homeowners in South Carolina. CCAR also supports efforts to keep property taxes and fees in check at the local level.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

TIME-OF-SALE HOUSING INSPECTIONS ORDINANCES

A primary concern of CCAR is a healthy housing stock. This is especially true at a time when the majority of housing in our cities and inner ring suburbs shows increasing signs of age.

However, the association does not believe that requiring code compliance at the point of sale will effectively assist a community in maintaining a healthy, affordable housing market. Time of sale or point of sale) inspections affect only the small percentage of houses that are sold each year (3 to 5 percent in most areas). Most problem houses are not for sale at any given time. To increase its effectiveness, a municipality should direct its efforts at the problem properties, rather than only focus on point of sale inspections.

This can be accomplished by general inspection sweeps of housing exteriors, responding to individual complaints about problem properties, and setting up a revolving loan fund to assist homeowners with city maintenance requirements resulting from these inspections. Homeowners would need to qualify for these loans and could repay them when the property is sold unless the homeowner continued to live in the property for a specified time before selling the property.

Home buyers are encouraged to have the property inspected by an independent housing evaluator. More and more buyers are doing so. Most sellers complete a disclosure statement and are required by law to disclose all material facts of which they are aware that could significantly or adversely affect the buyers use and enjoyment of the property. These buyer inspections and seller disclosures alleviate the need for cities to have their own inspection ordinances.

CCAR opposes all point-of-sale regulations. We oppose using the trigger of a real estate transaction as a means of requiring changes to the condition of the property or disclosure beyond what is required in the contract.

WORKFORCE/ATTAINABLE HOUSING

One of the most basic needs for an individual or family is shelter. This means that the housing stock in area neighborhoods must be diverse and complementary to a community’s needs. Availability of housing for all income levels is critical for a balanced and healthy growth of the Coastal Carolinas area and its individual communities. Employers seeking to locate in Georgetown and Horry counties need to first attract and then maintain a workforce. A key component to workforce recruitment and retention is affordable and geographically distributed housing.

CCAR members:

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638

• Encourage consideration of programs that alleviate homelessness, as well as under housing, and encourage housing for low income individuals and first time home buyers programs that can help instill the sense of pride and stability that comes with homeownership and increase the percentage of owner occupied homes in area neighborhoods.

• Support and participate in the use of market based incentives and public/private partnerships as vehicles for the promotion of housing affordability. When the government is involved, however, it must consider its fiscal responsibility to taxpayers.

• Support incentives to increase the supply of affordable single family housing.

951 Shine Avenue Myrtle Beach, SC 29577 www.ccarsc.org 843 626 3638