Capitol Insider NCHBA achieves major goals in 2010 legislative session
2010 Legislative Session by Lisa Martin, Director of Government Affairs he 2010 Short Session of the N.C. General Assembly convened on May 12 and adjourned on July 10. A total of 3,547 bills were filed during the 2009-10 biennium. Of that total, 780 bills were introduced in 2010. NCHBA’s success in the 2010 session was due in no small part to the diligence of our Government Affairs staff, strong local participation in the political process, and committed members and officers. NCHBA’s major legislative initiatives were passed, and we were successful in protecting our members from new taxes and further regulatory burdens, while preserving housing affordability. The following is a summary of NCHBA’s major legislative accomplishments during the 2010 General Assembly Session.
406 Extend Certain Development Permit Approvals) and fought for the passage of HB 683 Permit Extensions (S.L. 2010-177). HB 683 passed the Senate in June with only one dissenting vote.When it moved to the House, it came to an abrupt halt due to opposition by the N.C. League of Municipalities, the N.C. Association of County Commissioners, and the N.C. Chapter of the American Planning Association. Finally, an agreement was reached on a conference report in the early morning hours of the session’s final day. While HB 683 does lengthen the tolling period of the original act by one year, it allows local governments to “opt out.” If a local government chooses to opt out, then they must honor any time left on the permit due to extensions granted in the original Act.
House Bill 1249 Home Builder Property Tax Deferral Change
Senate Bill 897 Appropriations Act of 2010
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Legislation passed in the 2009 long session that defers property tax on builder inventory and legislation that extends state and local permits were back before the General Assembly this year. The home builder property tax deferral bill required some minor clarification and that was accomplished in HB 1249 Home Builder Property Tax Deferral Change (S.L. 2010-140).
House Bill 683 Permit Extensions NCHBA sought a two-year extension of the permit extension act (S.L. 2009-
With the 2010 budget shortfall totaling $800 million, all options were on the table to develop a balanced budget. NCHBA lobbied against any new fees or taxes on builders or any small business and lobbied against any measures that would increase the cost of housing. For the first time in seven years, the North Carolina General Assembly enacted a budget, SB 897 Appropriations Act of 2010 (S.L. 2010-31), prior to the start of the new fiscal year. Of particular note, the budget bill includes a $10 million appropriation for the N.C. Housing
Trust Fund. One negative aspect of the budget was the creation of and funding for the N.C. Sustainable Communities Task Force. The duties of the Task Force, as specified in the budget, definitely have the potential to impact home building. For that reason, NCHBA lobbied for legislative oversight of the task force by adding reporting requirements and limiting the power of the task force to act independently in HB 1766 Amend Environmental Laws 2010 (S.L 2010-180).
Senate Bill 35 Reconveyance Fees Prohibited NCHBA worked closely with the N.C. Association of REALTORS® to draft legislation, SB 35 Reconveyance Fees Prohibited (S.L. 2010-32), that bans private transfer fees. Private transfer fees are fees paid to a third-party upon the transfer of real property. The fee is usually paid by the seller and can either be a fixed amount or a percentage of the sales price. The legislation protects developer members, consumers and the real estate market, and provides certainty in real estate transactions. With the passage of this legislation, North Carolina becomes one of only a handful of states that ban private transfer fees.
Senate Bill 829 Regulation of Appraisal Management Companies Appraisal management companies (AMCs) are not new, but the number of AMCs and
Mike Carpenter & Lisa Martin ranked among most influential lobbyists in the NC General Assembly
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CHBA has again placed two members of its legislative team in the N.C. Center for Public Policy Research’s biennial ranking of most influential lobbyists. Mike Carpenter and Lisa Martin, ranked #21 and #45 respectively, among the 765 lobbyists (representing 805 different companies and organizations) and 106 legislative liaisons (representing 73 different state government agencies) registered to lobby the General Assembly in 2009. The ranking was accomplished by a survey following the 2009 Session addressed to all 170 members of the General Assembly, registered lobbyists, and members of the capital press corps. Carpenter Martin “Advocacy on behalf of our members was the reason for the creation of the state association in 1963 and it remains our top priority,” said Mike Carpenter. “It is nice to see NCHBA continue to be recognized among the most influential organizations on Jones Street.” Carpenter has consistently been ranked on this list since the 1993 session. Lisa Martin, who replaced Paul Wilms as NCHBA’s Director of Governmental Affairs upon Wilms’ retirement in 2008, made the list for the first time. “This is the third session in a row that NCHBA has had two lobbyists ranked among the most influential,” said Carpenter. “Lisa moved seamlessly into Paul’s position and hit the ground running. I am delighted that her very successful debut was appropriately recognized by the legislators, her fellow lobbyists, and the media.” “The survey results confirm what we already know,” said 2010 NCHBA President Lyle Gardner. “Our legislative lobbying team is second to none. I am proud not only of Mike and Lisa but also of Jessi and Erin for their invaluable contributions to the success of the team.” 10 North Carolina Builder
November/December 2010
the frequency of their use increased since the federal adoption of the Home Valuation Code of Conduct (HVCC) in 2008. The HVCC prohibits mortgage professionals from ordering appraisals and mandates that lenders have either a separate department to order appraisals or use third party companies (AMCs) to select appraisers. NCHBA members have experienced a number of problems with appraisals and appraisers; thus, NCHBA seized the opportunity to use SB 829 to take the first steps toward correcting the problems with new home appraisals.
Studies
• Consolidation or Elimination of State Boards and Commissions • Public Financing of Elections • Developer Responsibility for Street Construction • Urban Growth and Infrastructure • Legislative Study Commission on PublicPrivate Partnerships • Joint Select Study Committee on Tort Reform • N.C. Sustainable Communities Task Force
Before the start of the 2011 Session, NCHBA Government Affairs staff will be working with the various study committees established by the General Assembly this Session. There is a wide range of issues that will be studied over the interim and many could impact the home building industry. Here are just a few of the topics that will require NCHBA’s involvement during the legislative interim: • Consolidation of State Agencies and Departments
House Bill 1870 Safe Artificial Slope Construction Act 2010 marks the third year that NCHBA has actively opposed legislation dealing with steep slope construction. HB 1870 Safe Artificial Slope Construction Act received a favorable report from the House Environment Committee, but failed to advance any further. In spite of successfully stopping this legislation, NCHBA fully expects to fight steep slope legislation again in the 2011 long session.
GO GREEN!
House Bill 1766 Amend Environmental Laws 2010 In addition to provisions affecting the N.C. Sustainable Communities Task Force, NCHBA lobbied to include in HB 1766 Amend Environmental Laws 2010 (S.L 2010-180) provisions that clarify that local government water systems and large community water systems require separate meters for new inground irrigation only on lots platted and recorded after July 1, 2009. Legislation enacted in 2008 to mitigate the drought requires builders to put in both a regular water meter for a home and a second water meter for the irrigation system. This results in having to pay an impact fee on both meters. A second provision in HB 1766 requested by NCHBA amends the notice requirements for new fees and fee increases pertaining to sanitary districts and water and sewer authorities.
Senate Bill 1259 Disapprove Boylston Creek Reclassification SB 1259 Disapprove Boylston Creek Reclassification (S.L. 2010-157) was amended to delay the effective date of a trout waters reclassification in Transylvania County and to require the Department of Environment and Natural Resources (DENR) to hold two additional public meetings and to report to the Legislature’s Environmental Review Commission prior to the beginning of the 2011 Session. NCHBA Government Affairs staff attended the original public hearing on this reclassification and will monitor any additional actions. November/December 2010
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North Carolina Builder 11