JANUARY / FEBRUARY 2022
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Mapping Progress
Published by Minnesota Realtors®
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Is What You Don’t Know Holding You Back?
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Upcoming Events & Education
mnrealtor.com
IN THIS ISSUE
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JA N UA R Y / F EB R UA R Y 20 2 2
FEATURE STORY
12 ASSOCIATION NEWS
Mapping Progress
MNR’s New Leaders Ready to Tackle Big Issues in 2022
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RISK MANAGEMENT
14 ADVOCACY
NAR Code of Ethics for 2022
Minnesota Legislature Reconvenes for 2022 Session
What’s Hot on the Hotline
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Professional Development Six Productivity tips for New Realtors®
16 EDUCATION + EVENTS Upcoming Classes and Meetings
Is What You Don’t Know Holding You Back?
Pathway to Achievement Recipients The Pathway to Achievement program is designed to promote diversity within the Realtor® membership by helping people outside of Minnesota’s racial majority join the Realtor® community and enhance their probability of success. We are happy to announce this year’s recipients: Quincy Ballard of Edina Realty in Minneapolis, Luis Brito of Carriage Realty in Lake Elmo, Josh McClain of Edina Realty in Eden Prairie, Sar Waite of Home Sellers in St. Paul, Ashlé Johnson of Mazone Real Estate Group in Golden Valley, and Dariale Rodulfo of Casa Real Estate in Rochester. Congratulations to all and best wishes for your future success!
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
LETTER FROM LEADERSHIP
Bringing More
Minnesotans Home in 2022
by Jason Miller
Despite the disruption of the pandemic over the last couple years, the real estate market has remained hot. At least some of that activity was fueled by consumers looking for more space and amenities like home offices and big yards. More than ever, our homes serve as our oasis and refuge from the stress and pressures of the larger world. Unfortunately, a growing number of Minnesotans are locked out of homeownership because the supply of affordable homes cannot meet demand. The primary factors contributing to this are high construction costs, a labor shortage, and stifling regulations.
Homeownership is about a lot more than a place to live. It creates security, a sense of community and belonging, and can build wealth for generations.
Our industry is poised to make a difference. By working with leaders in the construction industry and our elected officials, we can begin to reshape the regulatory landscape, and pave the way for more affordable homes everywhere they are needed across the state. Of course, wide-spread new construction won’t happen overnight. But the actions we take this year will bear fruit in the years to come. Homeownership is about a lot more than a place to live. It creates security, a sense of community and belonging, and can build wealth for generations. Working together, we can ensure that every Minnesotan who wants to own a home can afford one, and by doing so, build a more stable, equitable, and prosperous state for all.
Jason Miller MNR 2022 President The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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FEATURE STORY
Mapping Progress
Realtor® and community activist Jamar Hardy discusses race, real estate, and the movement to achieve social equity
...Once they saw me face-to-face, they’d react very differently. ‘Oh, so you’re Jamar,’ they’d say. Then suddenly they already had an agent.
When Jamar Hardy joined the leadership team at Edina Realty as managing broker in 2016, he heard a lot of talk about transaction units, volumes, inventories, and profits, but very little discussion about diversity. As the co-creator of the brokerage’s House Brothers brand, he was keenly aware of the unconscious bias and microaggressions that Black Realtors® and other people of color experience in their real estate careers. He realized the key to changing that was increasing both their numbers and visibility.
“I put my face on a bus bench because I want people from my communities to see somebody that looks like them, because seeing is believing,” said Hardy, who is director of Edina Realty’s Diversity and Inclusion Team (DIT) and has served terms promoting diversity at the Minneapolis Area Realtors® (MAR), and the National Association of Realtors® (NAR). It was a revelation that Hardy himself experienced when Barack Obama was elected president in 2008. “He helped create a whole different image of what the Black community can be. We can function at a very high level and get the job done. We can be professionals.” Growing up in North Minneapolis, Hardy watched his mother leave home early every day so she could catch the bus that took her to a job in Richfield. As a single woman raising four children, she was selflessly dedicated to ensuring her family’s well-being and stability. Her example instilled a work ethic in Hardy that guided him through Richfield High School,
“The concept behind House Brothers was that we had to be upfront about who we are,” said Hardy, who launched the brand with his colleague, James Robinson. “So many times, throughout my career I would talk to a prospective client on the phone, and they were super comfortable with me. But once they saw me face-to-face, they’d react very differently. ‘Oh, so you’re Jamar,’ they’d say. Then suddenly they already had an agent.” In marketing the House Brothers, Hardy and Robinson fully embraced their Black identity by putting their faces on everything from business cards to bus-stop benches. In doing so, they sent a very clear message to potential clients. Those who could not get past their own prejudices and misconceptions filtered themselves out. And those who did call were ready to do business. In this way, Hardy’s practice thrived. Yet from the beginning, succeeding in real estate meant much more to Hardy than money and material riches. Jamar Hardy and Lyndon Smith, founding members of Just Deeds, are honored at the 2021 MN Lawyers Diversity and Inclusion awards ceremony. (continued on next page) The Minnesota Realtor | Januar y/Februar y 2022 | mnrealtor.com ®
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FEATURE STORY into his first job selling shoes and apparel at J.C. Penny, and eventually on to Target’s Executive Training Program in 2002. Around the same time, he was pursuing an entrepreneurial dream with Underground Music and Fashion, a clothing company he founded. Real estate was a “side hustle” that brought in some cash while he built the business. But gradually Hardy saw that being a Realtor® was more than a way to earn a living. It was a way to make a difference. One of Hardy’s major achievements at Edina Realty was helping create the DIT. Recruiting Realtors® who were already doing advocacy work at the association and community levels, the group began making more opportunities for people of color through a structured real estate mentoring program. Eventually, initiatives like this inspired similar efforts, like Minnesota Realtors®’ (MNR) Pathway to Achievement program that helps people outside the state’s racial majority pursue successful careers in real estate. As satisfying as Hardy’s achievements within the real estate industry were, he recognized that deeply rooted, systemic issues continued to limit opportunities for the Black community and people of color. The way forward seemed painfully slow. Then, on the evening of May 25, 2020, George Floyd was murdered by a white police officer at 38th and Chicago in Minneapolis. In one instant the long history of racial segregation in Minneapolis and beyond collided with its ongoing legacy in the present. The stage for that tragic event was set over a century ago by racist “redlining” practices that barred people of color from purchasing real estate in most areas of Minneapolis, segregating them to poor, often run-down neighborhoods. Although discriminatory “racial covenants” in real estate deeds were outlawed by the Fair Housing Act of 1968, the prejudices that created them persist.
“If you pull up an old red lining map and place it over a map of modern Minneapolis, you’ll see that those are the areas that are depressed and segregated to this day,” Hardy said. “That’s where George Floyd was killed, in a neighborhood that was overpoliced and underserved. If you set up communities to be food deserts without supermarkets or access to good health care; if you isolate them to high-density areas where there’s more concrete than grass, and the air is polluted, the people who live there will suffer.” Hardy’s awareness of these issues was amplified by Mapping Prejudice, a project conducted by the University of Minnesota that chronicles the historic impact of racial covenants, redlining, and predatory lending practices on communities. Inspired by this work, Hardy teamed up with other players in the real estate industry and the Minnesota Association of City Attorneys to create Just Deeds, a non-profit organization that helps homeowners legally remove discriminatory language from their property titles.
Diversity and Inclusion Team members joined Edina Realty’s TogethER2020 expo. From left to right: Jamar Hardy, Man Huynh, Yarira Pineda, LeRoy Bendickson, and Brian Parker. 4
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
Although the act of discharging covenants is largely symbolic, it empowers homeowners to publicly reject historic wrongs, and heighten awareness about the need to increase access to wealth, education, policing, safety, parks, and public transportation in communities of color.
From left to right: Members of Edina Realty’s Diversity and Inclusion Team gather for a moment of silence at the George Floyd Memorial in Minneapolis, just days after Floyd was murdered by Officer Derek Chauvin in May 2020. From left to right, Ben Keefe, Man Huynh, Jamar Hardy, and Lyndon Smith. News article collage featured in A Right to Establish a Home. This map represents the location of homes occupied by blacks in 1930 Minneapolis. (Calvin F. Schmid, Social Saga of Two Cities); A map of the FHA’s redlining in Minneapolis. “We’re a little bit ahead of other states with this initiative and can provide something of a blueprint for communities around the nation to do the kind of good work we’re doing here at the local level,” Hardy said.
Hardy says the next generation of homeowners will be best served by a new generation of Realtors® who come from the same neighborhoods, intimately understand the challenges, and have the skills and vision to make progress.
Energized by the potential for progress, Hardy acknowledges achieving equity will take decades and perhaps generations. And while he applauds the growing availability of downpayment assistance (DPA), he said the issues run much deeper than the availability of home loans.
“Now that I have my foot firmly in the door, I need to make sure it stays open for the next change agents. These are the leaders who will grow our culture and keep building that pathway for change,” Hardy said. “Ultimately, this is not a black and white issue, even though that’s how society often sees it. It’s about how we treat each other as human beings. It’s about building healthier, more equitable communities where everyone can prosper, no matter what their race or background.”
“A lot of our community members don’t have the financial literacy required to own a home. And they don’t even have access to a bank where they can have a basic checking or savings account. They rely on check-cashing places that take a big chunk of their hard-earned money,” Hardy observed. A critical key to progress, he said, is equipping upcoming generations with the skills they need while they’re still in school. “If you teach young people how to save and build a credit score, they might not need DPA when it comes time for them to buy a home,” said Hardy, who serves on the Board of Directors of The Link Minnesota, an organization that supports at-risk youth in the Twin Cities. “And because they’ll be able to afford a conventional loan, they’ll avoid the costly insurance of an FHA loan and build equity in their homes faster.”
Collage Page 3–4: Top Left: Vintage maps of Districts in Minneapolis; Jamar Hardy; News article collage featured in A Right to Establish a Home. Members of Edina Realty’s Diversity and Inclusion Team (see caption above for more detailed information). Crowd of people (mob) in front of 4600 Columbus Ave South (The Crisis, October 1931); Arthur and Edith Lee House with black paint defacing corner (Minneapolis Tribune, July 16, 1931). News article collage featured in A Right to Establish a Home. The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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Risk Management
NAR Updates
Code of Ethics for 2022 Association embraces remote arbitrations, puts counteroffer assurances in writing, axes free services, and clarifies hate speech
In November of 2021 the National Association of Realtors® (NAR) Professional Standards Committee met and approved a few updates to the Code of Ethics. There were some minor but noteworthy changes that are in full effect this year. Code of Ethics and arbitration hearings can now be held remotely Once again Minnesota led the nation with these changes at the onset of the pandemic in 2020. NAR used much of Minnesota Realtors’® (MNR) language and documents to codify the process for the United States. Although Realtors® can still proceed with in person hearings, there is now a procedure for remote hearings and hybrid hearings when the need arises.
SOP 1-8 amended to include counter offers Previously, Standard of Practice (SOP) 1-7 and SOP 1-8 were amended so that when a buyer’s agent asked a listing broker—in writing—if their offer was presented to the seller clients, the listing broker had to provide written assurance that the offer had been delivered. The addition to SOP 1-8 now also provides written assurance that counteroffers are presented back to potential buyers. This was determined to be more of a clarifying measure. Realtors®, acting as agents or brokers of buyers/tenants, shall submit to buyers/ tenants all offers and counteroffers until acceptance but have no obligation to continue to show properties to their clients after an offer has been accepted unless otherwise agreed in writing. Upon the written request of the Listing broker who submits a counteroffer to the buyers/tenant’s broker, the buyers/tenant’s broker shall provide, as soon as practical, a written affirmation to the listing broker stating that the counteroffer has been submitted to the buyers/tenants, or a written notification that the buyers/tenants has waived the obligation to have the counteroffer presented. Realtors®, acting as agents or brokers of buyers/ tenants, shall recommend that buyers/tenants obtain the advice of legal counsel if there is a question as to whether a preexisting contract has been terminated. (Adopted 1/93, Amended 1/99)
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The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
Realtors® must not promote services as “free” or “no cost” SOP 12-1 was amended removing all qualifying language about offering services for “free” or at no cost to the buyer. Realtors® must not represent that their services as an agent or representative to a buyer or seller in a real estate transaction are free or available at no cost to their clients. This clarification is intended to end any public confusion regarding how Realtors® are paid.
Prohibition of hate speech clarified by new case interpretations Lastly, there were two case interpretations related to SOP 10-5 and the use of hate speech. Case Interpretations formally clarify issues likely to be addressed by an Article of the Code of Ethics and help Hearing Panels consider how to look at such situations. Standard of Practice 10-5: Realtors® must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Case Interpretation 10-10: Ethics complaint about Realtor’s® off-the-clock comments on same-sex relationships is dismissed.
Case Interpretation 10-11: Confederate flag in property photos leads to ethics charges against listing broker.
While attending a Bible-study class, a Realtor® made the following comment about certain passages being analyzed: “Some have said these verses clearly prohibit and condemn same-sex relationships.”
A listing broker hired a photographer to take pictures of a property, and then uploaded the images to the MLS. One of the photos prominently featured a Confederate flag that had been displayed by the homeowner. Subsequently, the photo was noticed by a Realtor® researching properties for her buyer client. In the complaint she filed against the listing agent, the Realtor® said the flag was a symbol of hate that strongly signaled her client would not be welcome at a showing.
After overhearing this, another student filed an ethics complaint highlighting SOP 10-5 under Article 10. However, the statement was not found to violate Article 10 because it was not intended to convey a discriminatory opinion and did not use hate speech or slurs.
Looking into both SOP 10-3 and SOP 10-5 the hearing panel determined that the listing agent violated Article 10 of the Code of Ethics. Even though the flag belonged to the property owner, and the listing agent did not take the pictures himself, he still had authority over vetting the images and ultimately placed them on the MLS. By doing so, the panel concluded, he had allowed the display of a symbol of hate that conveyed an illegal preference and created a discriminatory effect. The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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Risk Management
What’s Hot on the Hotline Untangling Representation Conflicts Sometimes it is difficult for even the most experienced brokers and Realtors® to understand the complexities and representation agreements and the laws that shape them. In this issue, we look at some common questions that our attorneys field on MNR’s Legal Hotline.
Can a licensee serve as a facilitator for one party while also representing the other party? No. Minnesota statutes prohibit a licensee from acting as both a facilitator and an agent in the same transaction. For example, Bob Clemens, a facilitator-broker* working with a buyer, shows a property he has listed as a seller’s broker. In this situation, Bob must act as the seller’s broker. If, on the other hand, Bob is working with a seller as a facilitator and agrees to show a property to a buyer he is representing as a buyer’s broker, then Bob must act as the buyer’s broker. *The statutes also apply to salespeople in the same situation.
Can an agent continue to represent a client who was obtained under Broker A if they switch to Broker B during the transaction? No. When a client enters into a representation contract or facilitator services agreement, that contract is with the brokerage and remains with the brokerage unless the parties agree otherwise in writing. The salesperson is an agent of the broker and can only conduct business on behalf of the broker to whom they are currently licensed. Therefore, if the salesperson moves to Broker B, they will no longer represent the client and cannot interfere with Broker A’s exclusive client relationship.
As a salesperson, can I hire a licensed salesperson who has their license with another broker to work as my assistant in my transactions at my brokerage? No. Minnesota licensing statutes state that a salesperson shall only conduct business under the licensed name of and on behalf of the broker to whom the salesperson is licensed. Therefore, a salesperson cannot conduct any real estate related activity for any other broker.
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The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
Professional Development
6 Productivity Tips for ® New Realtors You have your license and you’ve signed on with a broker. Congratulations! But now what? It can feel as though there is an empty void in front of you when you first start out. You may not have many (or any) clients yet. But the truth is that this is the perfect time to get solid productivity habits in place. Once you get busy, it’s hard to find time to make changes. Here are a few tips to get your business operating like a well-oiled machine. Goals. If you don’t know where you’re headed, it’s hard to know if you are on track! Create a business plan and figure out what you hope to accomplish in your first year of business. There are several templates available for creating a business plan, or your broker may have some in place for new agents. Be specific. Rather than stating that you want to sell as many homes as possible, state exactly how many you want to sell. How many will you list? What amount of money you will take in? Track your efforts. They say that what you track grows! Figure out the most important metrics. The number of open houses per month, contacts in your CRM, number of clients, phone calling efforts or thank you notes are some things you might want to track. Watch your numbers increase. Get a mentor. Having a mentor or an accountability group can make a huge difference in how quickly you grow your business. It’s important to talk to successful agents and find out what they did that worked. You’ll find that most of them are willing to help newcomers. Some newbies get together regularly with other new agents to share ideas and to cheer each other on. Real estate can be a lonely business, so it’s very helpful to connect with others.
Create a routine. One of the first things to do, after establishing your goals, is to make a schedule. When will you do open houses or write a blog and post on social media? On what day will you focus on updating your CRM? Yes, once you’ve got clients asking to see houses, you’ll have to adjust, but having a baseline schedule is key. Technology. There are seemingly endless systems and apps for streamlining your work and tracking important numbers. There are apps for gathering email addresses at open houses, scheduling social media posts, and logging mileage for tax purposes. Don’t forget about tools that you can use to help your future clients, such as mortgage calculators or square footage calculators. You might also consider tools for your personal life, such as shopping list apps or to-do lists so that your free time is really free! Self-care. We’ve put this at the end of the list, but it’s the most important item! You can’t be your best working self if you haven’t had enough rest or exercise. Make sure you put good fuel into your body by eating nutritiously. Think about keeping healthy snacks and beverages in your car for the times you’re on the go. And spending time with family and friends, or on hobbies, can go a long way toward maintaining mental health. Real estate can be a very fulfilling career, but the first months often feel daunting. Maximize your potential by starting out with your best foot forward!
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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Professional Development
You Don’t Know Holding You Back?
Is What
NAR’s C2EX program helps Realtors® build knowledge, ethics, and professionalism
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The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
In the real estate business, knowledge is a Realtor’s® primary asset. From staging and marketing homes to negotiating offers, clients depend on their agents’ wideranging expertise. And because tools, trends, technology, and laws are always evolving, Realtors® must constantly learn through continuing education, and expand their capabilities with designations. Of course, many journeys of learning begin with an awareness of where our knowledge lapses. But what if you don’t know what you don’t know? And what if you never got the memo on what you need to learn next? That’s where Realtors® Commitment to Excellence (C2EX) comes in. Developed by the National Association of Realtors® (NAR), the program is an assessment and learning tool that helps agents identify where they need to improve skills and proficiencies.
How it works The C2EX experience begins with an online test that probes your knowledge of different real estate subjects. Results are delivered instantly along with a curriculum tailored to strengthen challenge areas and expand into new kinds of expertise. Educational content is delivered through videos, games and quizzes, and interactive digital coursework. Designed to help Realtors® quickly bridge gaps in their knowledge, C2EX covers 11 competencies, including: 1. Advocacy 2. Code of Ethics 3. Communication and cooperation 4. Customer service 5. Data privacy 6. Equal professional services 7. Honesty and integrity 8. Professional reputation 9. Property and ownership rights 10. Real estate law 11. Tools and technology “MNR members who have participated say the material is fun, approachable, and very educational,” said Carrie Andersen, MNR senior vice president of Member Services. “They like the way it is customized for them, zeroing in on topics specific to their individual learning needs. It doesn’t waste their time with extraneous material.” Realtors® who complete the program receive NAR’s C2EX Endorsement, a prestigious distinction that recognizes them for “practicing real estate at the highest professional standard in the industry.”
NAR reports that most Realtors® finish C2EX within 7 to 10 hours. The program is free to all NAR members and only requires login information or a NRDS number to participate.
Honing your competitive edge “The heated Minnesota real estate market has drawn more people into the profession than ever before,” said MNR CEO Chris Galler, who leads the non-profit association of more than 22,000 Realtor® members. “Home sellers and buyers are highly motivated to narrow their choices. Agents who can demonstrate a proven commitment to the profession are more likely to get a call from today’s very discerning consumers. Not only is the C2EX program an excellent way to develop your capabilities and professionalism, it also distinguishes you from the competition.”
Expanding ethical excellence Beyond the practical career skills it provides, C2EX is rooted in NAR’s commitment to maintaining the highest standards of professional and ethical conduct across the real estate business. “NAR was founded over a century ago by a group of Realtors® who were combating unethical and unprofessional behavior in nearly every quarter of the profession,” said Jon Kopecky, MNR associate legal counsel. “Their solution, the Code of Ethics, became the bedrock of the real estate industry. Unfortunately, improper behavior is still an enormous problem. Part of what makes C2EX so powerful is that it goes beyond the day-to-day aspects of the job and focuses on the ethics Realtors® need to deliver superior customer service, become better professionals, and ultimately better citizens for their communities.”
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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ASSOCIATION NEWS
MNR’s New Leaders
Ready to Tackle in 2022 Big Issues Minnesota Realtors® (MNR) formally welcomed its 2022 leadership team at the Realtors® UNITE! convention at the St. Cloud River’s Edge Convention Center on October 6, 2021. Assuming the role of president from outgoing President T.J. Simon is Jason Miller of Premiere Real Estate in St. Cloud. Treasurer Emily Green of Sandy Green Realty in Minneapolis has been selected president for 2023, and Geri Theis of Scenic City Realty in Redwood Falls will take on the role of treasurer. Terms for the newly elected officers began in January 2022.
Miller will focus on expanding affordable homes During his term, President Miller said he will work to expand the supply of affordable homes by advocating at the Capitol and partnering with private and non-profit organizations. He is also committed to helping more firsttime buyers into homes by increasing the availability of down-payment assistance programs. “None of these changes happen overnight,” Miller said. “But by doing the legwork and developing these programs today, we’ll be able to bring in a lot more first-time buyers three to five years from now.” native of St. Cloud, Miller has served on numerous local boards and A committees, including the St. Cloud Area Chamber of Commerce. He was also chair of MNR’s Professional Standards Committee, and in 2014 was honored as Realtor® of the Year by the St. Cloud Area Association of Realtors®. A tireless advocate for his clients, his areas of expertise include residential real estate, relocation, foreclosure purchases and sales, and investment properties. Placing great value on continuing education, Miller has earned many certifications and professional designations, including MS, CRS, GRI, e-Pro, CDPE, GREEN, PSA, and C2EX.
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The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
A leader and broker committed to community and the industry Known for her commitment to clients, community, and the real estate industry, Emily Green will bring over 25 years of experience to her role as MNR president in 2023. As a broker at a woman-owned, Minneapolis agency, she focuses on urban development and investment properties. Green has served on the National Association of Realtors®’ board of directors and was the vice chair of the MNR Communications Committee in 2019. She is a past president of the Minneapolis Area Association of Realtors® and has an MBA from Metropolitan State University’s College of Management. She also served on the state association’s Forms Committee, Governmental Affairs Committee, Finance Committee, Executive Committee, Board of Directors, and is a former Chair of the Communications Committee. Additionally, she’s an RPAC Trustee and Major Investor.
New treasurer is a veteran of many MNR committees Dedicated and hardworking, Geri Theis was awarded the 2020 MNR Realtor® of the Year, and is actively involved in local, state, and national associations, serves on many committees, and volunteers for community charities. Bringing a wealth of experience to the treasurer post, she has served many roles in the association, including the Realtors® Political Action Committee (RPAC) and the Federal Political Coordinator (FPC) program, and MNR’s Professional Standards, and Governmental Affairs committees. Additionally, she is on the board of directors for both MNR and the West Central Association of Realtors®.
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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ADVOCACY
Minnesota Legislature
Reconvenes for 2022 Session MNR legislative agenda includes support for more down-payment assistance and policies that will increase housing affordability and supply The Minnesota Realtors® (MNR) Governmental Affairs (GA) Committee discussed and approved an ambitious agenda for the 2022 Legislative Session, which begins on January 31st. A key focus will be supporting legislation that promotes more widespread homeownership by increasing housing affordability and supply. As always, MNR will vigorously oppose any actions that increase the cost of homeownership or interfere with the use, ownership, or transfer of property. Following is an overview of some key issues that are likely to come up at the Capitol in 2022.
Comprehensive Housing Affordability Act likely to dominate housing policy reform discussions Responding to the chronic lack of housing inventory and rising home prices, Rep. Steve Elkins (DFL, Bloomington) and Sen. Rich Draheim (R, Madison Lake), plan on introducing a comprehensive housing policy reform bill during the 2022 Legislative Session. The bill, in its current form, includes zoning and regulatory reforms that are intended to stimulate housing development that will be affordable to more Minnesotans. These reforms include changes to zoning laws that will allow for developments with smaller homes on smaller lots. Both Rep. Elkins and Sen. Draheim attended the MNR GA committee’s October 14th meeting, where they discussed their draft legislation, spoke with committee members about the challenges facing the housing market, and outlined how their proposal will address them. “The discussion was informative and overwhelmingly positive,” said Paul Eger, MNR senior vice president of Government Affairs. “MNR’s GA team is looking forward to working with both legislators and other stakeholders as the bill evolves.”
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The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
At a glance MNR’s 2022 Legislative Session Agenda Support down-payment assistance to increase access to sustainable homeownership and reduce the racial homeownership gap:
Oppose actions that will increase the cost of homeownership or interfere with the use, ownership, or transfer of property
• I ncrease funding for downpayment assistance • Improve the delivery of down-payment assistance
Oppose unnecessary “pointof-sale” mandates on real estate transactions
Support actions that will increase housing affordability and supply
Increasing access to down payment assistance Keenly aware that lack of capital for a down payment is one of the most significant barriers to homeownership, especially for low and moderate income households and communities of color, MNR is working with a diverse group of nonprofits, lenders, and local units of government on a legislative proposal that would increase funding for down payment assistance (DPA). “Greater availability of DPA is a key to increasing access to sustainable homeownership and reducing the racial homeownership gap,” Eger said. “We’re working to both increase funding for DPA, and improve its delivery to those who most need it.” A 2021 report commissioned jointly by MNR and the Minnesota Homeownership Center found that with grants of $10,500 or less, nearly 112,000 low-to-moderate income renters could purchase their own homes.
MNR continues opposing policies that would increase the cost of homeownership or interfere with the use, ownership, or transfer of property Several measures may be considered during the Session that would make it more expensive to own a home or restrict the ability to use or transfer property. MNR will oppose any actions that: • Impose development impact fees • Expand the sales tax to real estate services • Implement “opportunity to purchase” policies for tenants renting in manufactured-home parks, which interfere with an owner’s ability to freely market and sell their property without unreasonable restrictions • Enact rent control* • Introduce unnecessary point-of-sale mandates on real estate transactions, such as well testing at property transfer *Rent control was passed via ballot initiative in St. Paul in November 2021 and Minneapolis voters authorized the City Council to regulate rents on private residential property within the City.
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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EDUCATION + EVENTS
February & March
mnrealtor.com/calendar
Education Opportunities Proper Pricing and Secrets of the CMA
Advanced and Generational Negotiations
Feb. 07 | 9:00 am - Noon
Feb. 07 | 1:00 pm - 4:00 pm
Zoom
Zoom
Smart Home, Smart You
2021-22 Required Module: The History of Diversity in Homeownership
Feb 10 | 9:00 am - 12:00 pm
Feb. 16 | 1:00 pm - 5:00 pm
The Role of Diversity Marketing in your Real Estate Practice, 2020 Feb. 17 | 1:00 pm - 4:00 pm
Zoom
Zoom
Zoom
Resolving Transaction Disputes
Millenials, Money & Marketing
Guide to Navigating Real Estate Transactions
Feb 24 | 9:00 am - 12:00 pm
Feb. 28 | 1:00 pm - 4:00 pm
March 3 | 1:00 pm - 4:00 pm
Zoom
Zoom
Zoom
Meetings & Events
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RPAC Trustee Meeting
DEI Committee Meeting
Feb. 01 | 1:00 pm - 3:00 pm
Feb. 09 | 1:00 pm - 3:30 pm
Zoom
Zoom
Forms Committee Meeting
Housing Day at the Capitol
Forms Committee Meeting
Feb. 10 | 9:30 am - 12:30 pm
March 07
March 10 | 9:30 am - 12:30 pm
Zoom
InterContinental Saint Paul Riverfront
Zoom
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
GRI
Graduate to a New Level of Real Estate
When you become a GRI designee, your commitment to your business and clients shows through your investment of over 60 hours of classroom training to become one of the best of the best. Here are the top three reasons why you should earn the GRI:
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Comprehensive knowledge — The coursework provides in-depth training on the most essential topics, substantially beyond what’s covered by licensing courses.
onfidence — Graduates love their GRI because it gives them confidence in their own skills and C credibility with clients—essential components for building a successful real estate career.
onsumers — With “Graduate, REALTOR® Institute” after their name, they stand out as an agent C who takes advanced real estate education seriously.
Get stared on your GRI path. Visit academymnr.com to learn more.
The Minnesota Realtor ® | Januar y/Februar y 2022 | mnrealtor.com
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March 7, 2022 InterContinental Saint Paul Riverfront More information to come!
C2EX empowers Realtors® to enhance and showcase the highest level of professionalism. Show consumers you’re the best in the business. Get started at C2EX.realtor. The National Association of Realtors® has created the C2EX Ambassador program to encourage Realtors® to help each other amp up their career and take their professionalism to the next level. You can request Minnesota’s C2EX Ambassador, Charlie LeFebvre, to present to your association or company. Visit bit.ly/C2EX_MNAmbassador.
