2010
Kim McClellan, Government Affairs Director kmcclellan@faarmembers.com
December 2010 Legislative Insider 12/1/2010
Dear FAAR Members,
FAAR wishes every member and their families a happy and healthy holiday season! The January newsletter will preview the General Assembly session with a focus on FAAR's legislative priorities and details about the annual Day on the Hill event. So What Happens Next?
A Look Ahead to the New 112th Congress Voters in states across the nation, including Virginia, ousted numerous incumbents in favor of more conservative, less well-known political outsiders. Now that the face of Congress has changed so dramatically, what will happen in the ensuing two years? Conventional political wisdom might lead one to say, not much. A divided Congress usually leads to gridlock, but the 112th Congress just might prove to be different. The freshman members elected in November arrive in Washington with a clear message from voters: We don't like the status quo. Since the status quo would mean more political infighting and congressional inactivity, these new members and the chastened leadership of both parties might just be able to start working together on compromises that will allow them to keep their jobs in 2012. How the housing industry will be treated by the new Congress remains uncertain. It is unlikely that the treasured mortgage interest deduction would be in play and it also seems unlikely that the Republicancontrolled House will be willing to pump more federal spending into stimulus programs like a homebuyer tax credit. The foreclosure prevention programs are likely to be eliminated or at the very least revamped to try and improve upon on their dismal performance numbers. The most important thing the new Congress could do is to work to improve the jobs picture in the country. People without jobs can't buy homes and if unemployment numbers started to go down, home purchases would probably go up in the long run. It will become clear very early on in the legislative year what kind of Congress this will be. What happens with the housing market will have a strong connection to what happens in those first few months of the new session. Attention Stafford residents and agents: The County's Comprehensive Plan needs your help!
The Stafford County Board of Supervisors is poised to adopt its first update of the Comprehensive Plan in over 20 years, but not without some controversy. The Plan includes state-mandated Urban Development Areas intended to accommodate the next 10 years worth of population growth in high-density, mixeduse developments. REALTORS(R) have a long history of supporting thoughtful growth management that reduces urban sprawl and preserves housing affordability. But some in Stafford County would rather not see any new growth at all and they are fighting the new Comprehensive Plan. The Board of Supervisors will hold a public meeting on Tuesday, December 14th at the Stafford Courthouse at 7:00pm. Come out and voice your support for long-range planning and the Comprehensive Plan by signing up as a public speaker at the meeting. A strong showing is needed by supporters of the Comprehensive Plan to show the Supervisors that the Plan is embraced by those in the community. If you would like more information about the Stafford County Comprehensive Plan, click here. Support RPAC in 2011 while trying to become FAAR's Chili Champion! FAAR is hosting a chili-cook off on Thursday, January 20th complete with a nacho bar and cocktails. Just $10 to enter as a cooking team and $15 to attend as a taster, cooks taste for free! For more information, check out the official Chili Cook-Off flier.
Next Government Affairs Working Group Meeting The group will meet on Tuesday, January 18th at 10:00am in the FAAR Board Room. This will be our first meeting of the new year under the direction of Chair Karin Whitley and Co-Chair Hilary Fay. Hope to see you in 2011!
November 2010 Legislative Insider 11/1/2010
Dear FAAR Members,
Please remember to exercise your right as Americans to vote tomorrow, Tuesday, November 2nd! We need to support two of our REALTOR-party endorsed candidates: Rep. Rob Wittman in the 1st Congressional district and Rep. Eric Cantor in the 7th Congressional district. These candidates have the FAAR and VAR stamp of approval as "REALTOR-friendly". They are our allies in Congress and they need our vote!
NAR Working on Your Behalf NAR Meets with Feds on RESPA NAR staff has recently met with Treasury Secretary Tim Geithner and Special Adviser to the President, Elizabeth Warren, to discuss how to combine and simplify consumer disclosure TILA and RESPA. Two branches of government handle both of these statutes currently and they have failed to harmonize them. Ms. Warren is tasked with implementation of the Consumer Financial Protection Bureau that will have jurisdiction over both statutes as of July 2011. NAR has long worked to simplify the process through combined forms and will continue to do so. NAR Launches Homeownership Matters Campaign NAR has recently launched the Homeownership Matters campaign to help protect the mortgage interest deduction and other policies and programs that promote homeownership. NAR has amassed a comprehensive library of resources on how homeownership strengthens communities and families. To learn more, visit NAR's Matters dedicated website.
Focus on Virginia: UDAs Coming to Spotsylvania and Stafford counties State law mandates that high growth counties, like Stafford and Spostsylvania, establish special Urban Development Areas (UDA) within their Comprehensive Plan that will funnel the next 10 years worth of projected population increase into specific areas with high densities and low impacts. These UDAs will ideally incorporate a Traditional Neighborhood Design (TND) that will promote a walkable community complete with retail, residential, and open space. Both counties are currently tackling where to designate these areas and will also have to develop zoning code rewrites to accomplish these goals. FAAR will be monitoring this situation to gauge its impact on property values and land use trends. Speaker Spotlight: Lou Barnett, Central Virginia Housing Coalition Lou Barnett with CVHC addressed our last Government Affairs Working Group meeting discussing the affordable housing programs the organization runs and an exciting event that they are planning for next year. In April of 2010, CHVC will kickoff Fredericksburg's inaugural Affordable Housing Awareness Week. FAAR and its Working Groups will play a big role so stay tuned for more information!
Next Government Affairs Working Group Meeting The group will meet on Tuesday, November 16th at 10:00am in the FAAR Board Room. We will be adopting the 2011 fundraising plan for RPAC.
October 2010 Legislative Insider 10/1/2010
Dear FAAR Members, Election Day is fast approaching so don't forget to check your voter registration status and your polling place. FAAR-endorsed candidate Rob Wittman thanks REALTORS(R) for the support so far and asks that you turnout on Nov. 2nd to help him return to Washington representing the Fredericksburg area. Congressman Wittman has been receptive and responsive to all REALTOR(R) concerns and FAAR strongly supports his candidacy for the U.S. House of Representatives.
Legislative Highlight: Another year of NFIP S. 3814 presented to President Obama for signature The National Flood Insurance Program Reextension Act of 2010 recently was passed by the U.S. Congress and sent to the President for his signature. The bill provides for a one-year extension of the program through September 30, 2011. Supporters of the NFIP expressed dismay over not being able to pass a multi-year extension but vowed to take up the fight again the in 112th Congress. Members of Congress will soon leave Washington, DC to get back home and campaign during this tough election cycle. FAAR will continue to express to our elected officials the importance of enacting long-term, stable flood insurance legislation.
Focus on Virginia: VREB Set to Conduct Random Inspections of Brokerages The Virginia Real Estate Board announced over the summer that the agency would begin doing random inspections of brokerages this fall. VREB will be looking mainly for escrow violations but will have the authority to check compliance with ALL applicable rules and regulations. To prepare FAAR brokers for a potential inspection, RECA is offering a class on Wednesday, November 10th at 10:00am to provide all of the necessary compliance information. RECA is pleased to announce that VAR's new Vice President of Law and Policy, Mr. Jay DeBoer, will be teaching the class. Mr. DeBoer served in the state legislature and most recently as the head of DPOR. Don't miss this important class, register today at faarmebers.com! Don't scratch RPAC off your dues!!! The deadline for dues billing is coming up in two weeks and if you haven't paid yet, don't scratch off RPAC!! An investment in RPAC is the best insurance REALTORS(R) have against harmful laws and regulations. In 2010, RPAC helped make VRE a reality in Spotsylvania County, protected a REALTORS(R) right to place signs, and ensured that individuals receiving license reciprocity are just as well-educated as Virginia licensees.
Next Government Affairs Working Group Meeting The group will meet on Tuesday, October 19th at 10:00am in the FAAR Board Room.
September 2010 Legislative Insider 9/1/2010
Dear FAAR Members, The FAAR Trade Show is just around the corner so visit the Government Affairs booth to learn more about RPAC, politics, and how you can get involved.
Legislative Highlight: Helping the Unemployed New Emergency Mortgage Relief Program Authorized A new program aimed at helping out-of-work homeowners delinquent on their mortgages was established as part of the financial reform bill enacted earlier this summer. The program provides $1 billion in loans for individuals at least three months delinquent on their mortgage payments. The Department of Housing and Urban Development is still figuring out how to implement the program, but the law stipulates that homeowners with a significant reduction in income can apply for loans to cover up to two years of mortgage payments, as long as that amount doesn't exceed $50,000. The law provides assistance to homeowners but there is no similar program for renters.
What do with Fannie and Freddie? Everyone seems to agree that the government mortgage giants need major reform, but what that reform will look like continues to remain a mystery. Right now, the government is backing 9 out of 10 new home loans, a rate that is clearly unsustainable into the future. President Obama recently hosted a conference on the future of housing finance which was short on new ideas about how to fix this increasingly worrisome situation. The U.S. government will continue to take a prominent role in securing mortgage loans for the foreseeable future, but discussion about how to reform the mortgage finance industry to avoid another catastrophe will continue.
Focus on Virginia: Spotsylvania Amends Energy Efficiency Tax Credit Program The Spotsylvania County Board of Supervisors recently voted to amend their one-of-akind energy efficiency tax credit program that eliminated property taxes on qualified structures. The new program will now reduce the tax rate from the current rate of 86 cents per $100 of assessed value to 53 cents for the first $300,000. After that mark, the structure is taxed at the full 86 cent rate. The County was concerned that the tax rebate was too generous and would divert needed revenue away from schools, public safety, and transportation. Become a FAAR Key Investor! Invest $99 or more in RPAC in 2011 and receive special recognition, FREE entrance to FAAR RPAC events, and special prizes. If you were a 2010 Key Investor, visit the Government Affairs booth at the Trade Show on September 9th and pick up your FREE water bottle! RPAC is the best way to protect your business so leave it on your dues billing and invest in your future today!
Next Government Affairs Working Group Meeting The group will meet on Tuesday, September 21st at 10:00am in the FAAR Board Room. If you would like to join the Committee, sign up at the Government Affairs booth at the Trade Show on September 9th.
August 2010 Legislative Insider 8/2/2010
Legislative Highlight: Flood Insurance Reform H. R. 5114, Flood Insurance Reform Priorities Act The U.S. House of Representatives recently approved a long-term reauthorization of the National Flood Insurance Program (NFIP) by a vote of 329-90. The bill would authorize NFIP through September 30, 2015. It would also institute financial reforms in the program to address the current debt issue, which could significantly impact some current policyholders. The Senate is expected to develop different legislation so the bill could look a lot different when, and if, it is finally enacted. Currently, NFIP is operating under a short-term extension that expires at the end of September. If Congress fails to enact a long-term authorization, individuals requiring new or renewed policies could again be in limbo if yet another short-term authorization is not passed.
Focus on Virginia: Gov. McDonnell Putting Private Road Projects on the Fast Track Gov. McDonnell has vowed to streamline the process of moving road projects ahead that are being built through a public-private partnership. These projects will be initiated by the private sector and financed in part by businesses desiring the road improvements as well. VDOT will create a stand alone office to consider these transportation projects as a way to increase transportation capacity without raising taxes. Thanks to all those who came out for FAAR's Legislative Breakfast! FAAR President Latana Locke with U.S. Congressman Rob Wittman
Nearly 50 REALTORS turned out for July's Legislative Breakfast hosted by FAAR and FABA. Elected officials from nearly every jurisdiction in the Fredericksburg area were on hand to discuss the economy, transportation, and the state of the housing market.
Next Government Affairs Working Group Meeting The group will meet on Tuesday, August 17th at 10:00am in the FAAR Board Room. The meeting will feature Spotsylvania Supervisor Hap Connors.
July 2010 Legislative Insider 7/7/2010
Breakfast with Your Elected Officials FAAR and FABA have teamed up to bring you a FREE Legislative Breakfast on Monday, July 19th at 8:30am in the FAAR Classroom. Confirmed elected officials include Rep. Rob Wittman, VA General Assembly Speaker Bill Howell, and officials from Stafford, Spotsylvania, King George, Caroline, and Fredericksburg. We will discuss challenges and bright spots in today's housing market and ways that we can work together to strengthen our economy and our communities. This event is FREE to FAAR members and $10 for guests. Breakfast will provided by our sponsor, Dominion Virginia Power. Space is limited so register online today! Download the event flier here to post up in your office.
Legislative Highlight: Financial Reform Bill H. R. 4173, Wall Street Reform and Consumer Protection Act The House and Senate have been hammering out a compromise on sweeping financial reform legislation that could impact the way REALTORS do business. Here are some highlights from the bill's home mortgage provisions: Establishes a Bureau of Consumer Protection housed at the Federal Reserve Bank o The Bureau will issue rules laying out minimum national standards for mortgage brokers and institutions and would include requirements that a lender would have to ensure that a buyer has a reasonable ability to repay the loan that must be based on verified income and credit statements Prohibits pre-payment penalties on mortgages that do not meet certain "qualified" mortgage standards o For mortgages that meet these standards, the bill requires that lenders offer a loan version without pre-payment penalties and limits the amount lenders can charge for pre-payment fees Bars any financial incentives that lenders pay to mortgage brokers for selling loans with higher interest rates Allows for liability action against mortgage originators that violate their obligations under the bill Creates an Office of Housing Counseling at HUD that would focus on homeownership and rental housing counseling programs Prohibits any high-cost loans without first getting a written appraisal which all parties to the transaction are prohibited from influencing Provides $1 billion in housing assistance for homeowners who have lost their jobs and another $1 billion for the Neighborhood Stabilization Program
CONGRESS PASSES EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM AND EXTENDS CLOSING DEADLINE FOR HOME BUYER TAX CREDIT NFIP will be extended through September 30, 2010, allowing new and renewal policies to be issued. The home buyer tax credit closing deadline has been extended from June 30 until September 30, 2010. Contracts must have been in place by April 30th. For moreinformation on both of these issues, visit www.faarforum.com. Focus on Virginia: Gov. McDonnell Seeking Your Input The Housing Policy Advisory Committee is seeking your input on the direction the state's housing strategy should take. A multi-issue survey has been developed as a steering tool for the group to use. To access the survey, click here. All responses are due by Friday, July 9th. Next Government Affairs Working Group Meeting The group will meet on Tuesday, July 20th at 10:00am in the FAAR Board Room. We will be discussing our final push for RPAC investments and outreach with government officials.
June 2010 Legislative Insider 6/4/2010
National Flood Insurance Program Lapses Again On May 31, 2010, the National Flood Insurance Program (NFIP) once again expired without congressional action on a long-term reauthorization. NFIP provides vital flood insurance policies to millions of individuals across the nation. The lapse will not impact current policyholders or those within the 30-day expiration grace period, but it will mean that no new policies can be issued and no renewals can take place until the U.S. Congress passes a bill reauthorizing the program. A long-term reauthorization bill has been approved by the U.S. House Financial Services Committee, but it has not yet made it to the House floor. The bill, H.R. 5114, would reauthorize the program for five years.
Legislative Highlight: "Cash for Caulkers" H.R. 5019, the Home Star Energy Retrofit Act Bill will incentivize home energy retrofits by providing rebates to homeowners who install Home Star approved-products like insulation, windows, doors, and heating/cooling systems that will reduce energy consumption H.R. 5019 is intended to help homeowners and the slumping construction industry by pumping new federal assistance into the market The nickname "Cash for Caulkers" is a spinoff of the Cash for Clunkers measure enacted last year that provided federal funds for the purchase of new, fuel efficient vehicles to replace gas guzzlers The bill has passed the U.S. House and is currently awaiting action in the U.S. Senate Focus on Virginia: Gov. McDonnell Announces Creation of Housing Policy Advisory Committee Gov. Bob McDonnell recently signed an executive order creating a Housing Policy Advisory Committee for the Commonwealth, the first in the state's history. The Committee will be tasked with developing a housing strategy covering homelessness, workforce housing, economic development, healthy neighborhoods, effective coordination of transportation, and environmental issues. The Committee will consist of representatives from local government, state government, the housing industry, nonprofits, and consumer advocates. Speaker Spotlight featuring Stafford Supervisor Paul Milde Stafford Supervisor Paul Milde addressed the Government Affairs Working Group and discussed what's new in the County. The Board will be working to update the Comprehensive Land Use Plan and include higher density housing developments. The developments may include mixed-use housing, commercial and residential space, and access to a mass transit hub. Supervisor Milde reiterated the importance of ensuring Stafford is a business-friendly county and highlighted the Board's repeal of the BPOL tax. Supervisor Milde has been a strong advocate for REALTORS and he is committed to continuing that relationship. Next Government Affairs Working Group Meeting Agenda The group will meet on Tuesday, June 15th at 10:00am in the FAAR Board Room. We will be discussing the FAAR Legislative Agenda for the next year. Come see what it's all about!
General Assembly Update 2/23/2010
We had a very successful week at the VAR Legislative Conference. FAAR had over 40 members attend Day on the Hill. We split into two teams and had meetings with 5 of our 6 Legislators (Delegate Pollard was sick). Please see below for an update from VAR on how our Bills are faring as they move from one House to the other. Real Estate Signs – House Bill 553 / Senate Bill 64 HB 553 passed the House 94-4 and SB 64 passed the Senate 40 – 0. Though the real estate sign bills have changed somewhat, we believe the problem Realtors® may be experiencing with local governments has been addressed. If your local government has signed an agreement with VDOT to enforce signage provisions, then government volunteers will be held accountable if they take your signs….but only if the signs have been placed legally. In addition, the sign bills clear up a misinterpretation concerning signs Realtors® put in the ground without the use of tools, digging, etc. Under these two bills, if you do NOT use tools, and if you do NOT dig, you will not be required to call "Miss Utility." Interpleader Bill – House Bill 231
HB 231 passed the House unanimously and has passed the Senate Courts of Justice Civil Subcommittee unanimously. HB 231 changes the process that allows brokers to file an interpleader in General District Court. The effect of HB 231 is that it will take less time and money for brokers to have a judge to determine the appropriate party in a deposit dispute. Appraisal Management Companies Bill – HB 408
HB 408 passed the House unanimously and now awaits action in the Senate. HB 408 reforms the way appraisers work with Appraisal Management Companies (AMCs). This bill contains 13 specific prohibitions that will ensure better compliance with the law and will allow for more consumer protections. 1031 Exchange Agents – HB 417
HB 417 passed the House unanimously and now awaits action in the Senate. HB 417 creates protections for consumers who participate in 1031 real estate exchanges by clarifying requirements and prohibitions for 1031 exchange facilitators. VRLTA reform - HB 407
HB 407 passed the House unanimously and now awaits action in the Senate. HB 407 makes numerous changes to the VRLTA, including: 1. Provides that courts will allow electronic uploads of unlawful detainers; 2. Clarifies that Rational Utility Billing is covered under the VRLTA as rent; 3. Specifies when property managers can go to court without a lawyer; 4. Clarifies that landlords can charge administrative fees to cover damage and renters insurance programs; 5. Authorizes landlords to withhold security deposits until water and sewer bills have been paid to the locality. Amnesty for Honesty / Out-of-State Licensees -- House Bill 963 / Senate Bill 457 HB 963 passed the House 99-0 and Senate Bill 457 passed the Senate 40-0. These bills specify that brokers who self-report violations of VREB regulations, or who report their agents' violations of the regulations, will be protected from sanctions, as long as the broker was not willfully or grossly negligent. In addition, these bills require out-of-state licensees to take the state portion of the licensing exam before they are granted a license through reciprocity.
2010 Virginia REALTORS Legislative Agenda 1/25/2010
Welcome to the 2010 General Assembly Legislative Update Corner. We will try to keep you abreast of activity on all things Real Estate, REALTOR, and Land Use related throughout the session. We started the process at VAR on friday of evaluating hundreds of Bills that could potentially have an impact on our profession. We decide whether to support, oppose or monitor them. Our State Lobbyists and local Government Affairs Directors (GADS) spend many hours talking with legislators, amending legislation, and relating our positions. As part of our Legislative Agenda, we have gotten sponsors for 10 different Bills. Click Here to download the 2010 Legislative Agenda.
Stay up-to-date on the bills VAR is actively tracking: Click here for the list of bills
along with the positions that were recommended by the Bill Review Committee.
Our positions on legislation are as follows: VAR Bill (Part of VAR's
2010 Legislative Agenda)
Support (VAR will aggressively support) Oppose (VAR will aggressively oppose) Support with Amendment (VAR Will be able to support if the bill is amended satisfactorily) Support No Action (VAR will track but only offer support if needed or requested) Oppose No Action (VAR will track but only offer opposition if needed or requested) Monitor (VAR will monitor and take appropriate action as necessary) Would you like to see the text of a particular bill? Go to the General Assembly Web site. There is a box in the bottom left-hand corner in which you can enter the bill number (e.g., hb40 [House Bill 40], sj121 [Senate Joint Resolution 121]). Once the page loads, click on the "full text" hyperlink to read the bill. Additionally, from there, you may click on the "pdf" in the upper right-hand corner for a numbered version of that bill. As we move through the session, I will monitor and give updates on our progress.