Election Day: Tuesday, November 6 The reason Realtors® have a political action committee is to exercise influence in local,
state, and federal elections. Through RPAC, we financially support candidates whose stances and voting records on real estate issues are good for Virginia Realtors® and property owners. We understand that you choose to vote for a candidate for a variety of reasons, some unrelated to your real estate business, but if your business is a consideration in your voting decision, you owe it to your business to at least consider RPAC-endorsed candidates. Here in Virginia, candidate endorsement decisions in state elections and recommendations in Congressional elections are made by Virginia’s 22 RPAC Trustees active Virginia Realtors®, just like you. In determining an endorsement recommendation in Virginia’s U.S. Senate races, Trustees sent extensive questionnaires to the two candidates, Governor George Allen and Governor Tim Kaine, asking their positions on several issues important to Realtors®. For example: • What is your position on tax reform proposals that would reduce or eliminate the mortgage interest deduction? • Do you support some level of government participation in the secondary mortgage market to ensure liquidity? • Do you supporting continuing government programs like FHA, which do not cost the taxpayers anything to assist American families with obtaining safe, affordable mortgage financing? Both candidates Allen and Kaine then met in person with Virginia RPAC Trustees on August 3 for separate 75-minute interviews. After the interviews, Trustees discussed at length Gov. Allen’s and Gov. Kaine’s positions on the issues, as well as their records working with Realtors®, before making the endorsement recommendation you’ll find on page 30. (The Trustees’ endorsement recommendations in Virginia’s 11 congressional districts were based almost exclusively on the candidates’ voting records on Realtor® legislation, as well as on input from local associations of Realtors® and Realtor® constituents.) VAR’s membership is diverse, with 28,000 Realtors® of every political stripe, and so we don’t expect that every single endorsement decision will please everyone. Our aim, however, is not to support Democratic Party or the Republican Party, but to create a Realtor® Party of elected officials who understand the issues important to your business. One last thing: For a brief look at how your Realtor® associations’ political advocacy efforts are saving you money and liability on a wide range of issues, watch “The Power of 28,000,” a short video at RealtorsChoose.com/rpac-101. I think you’ll be impressed.
A message from RPAC of Virginia chairman Tom Innes
Thomas N. Innes, Richmond, Chairman, RPAC of Virginia
VOLUME 19 l ISSUE 5
OCTOBER/NOVEMBER 2012 29
For the U.S. Senate: George F. Allen By Jay DeBoer
Gov. George Allen
This fall, Virginians will elect a United States Senator to fill the seat of retiring Senator Jim Webb. Former Virginia Governor and U.S. Senator George F. Allen and former Virginia Governor Timothy M. Kaine are competing in what has been described as one of the nation’s “hottest” elections. Following a careful assessment of the candidates, we recommend a vote for George Allen. Virginia’s Realtors have a long and favorable history with Governor Allen, stretching back to his entry into the Virginia House of Delegates in 1983. He has been a good and reliable pro-business vote, and particularly has been sensitive to issues of taxation and regulation that might have the effect of burdening home ownership and transfer.
❑ Governor Allen supports the deductibility for income tax
Gov. Tim Kaine Your Virginia RPAC Trustees: Tom Innes, Chairman, Richmond Jay Mitchell, Vice Chairman, Norfolk Zinta Rodgers-Rickert, Treasurer, Fairfax Bob Adamson, McLean
purposes of interest paid on mortgages — aka, the mortgage interest deduction (MID) — and is not in favor of a restriction of the deduction to one principal residence, or smaller limits on the value of the deduction.
❑ Governor Allen supports reform of the government-sponsored enterprises, such as Fannie Mae and Freddie Mac, in order to protect the public and to provide oversight, but is in favor of retaining a government role in the secondary mortgage market.
Louise Baker, Blacksburg James “Jim” Barb, Winchester Bradley Boland, Reston Patricia Buck, Springfield John Dickinson, Union Hall
❑ Governor Allen favors the adoption of a definition of Qualified Residential Mortgage that includes a traditional mortgage product with a low down payment.
Sandee Ferebee, Virginia Beach Virgil Frizzell, Reston George Grundy, Petersburg
❑ Governor Allen supports the continued existence of government
Delk Hamaker, Arlington
programs, such as the FHA mortgage insurance program, that grant access to affordable financing for housing purchases by American families.
Pat Kline, Springfield Jean Longest, Richmond Percy Montague, Charlottesville Forrest Odend’hal, Manassas Chandra Patterson, Newport News Cathy Saunders, Richmond Suzy Stone, Fredericksburg Thomas Sullivan, Williamsburg Christine Todd, Fairfax Kevin H. Turner, Bedford
30 OCTOBER/NOVEMBER 2012
❑ Governor Allen supports the National Flood Insurance Program, and wants it bolstered to remain on a sound fiscal footing. Governor George Allen has been a friend to Realtors in his roles as governor of Virginia, and as a United States Senator. We can be assured that he will seek and will listen to our positions on issues that affect our industry, and those with whom we deal as clients and as customers. We are happy to endorse him, and urge his election on November 6. WWW.VAREALTOR.COM
Congressional candidates Virginia 1 Rep. Robert Wittman (R) • 3rd term Wittman has one of the best voting records in the Republican delegation. He voted to protect landlords from onerous reporting requirements, he voted to extend the Homebuyer Tax Credit, he signed on to the letter stating the idea of a 20% down payment was not the intention of DoddFrank, he co-sponsored a bill to protect the Mortgage Interest Deduction, and he voted for the five-year extension of the National Flood Insurance Program.
Virginia 5 Rep. Robert Hurt (R) • 1st term Hurt has been a great addition to the Financial Services Committee and a real friend to Realtors® as a leader amongst freshmen on housing. He opposed the proposed 20% down payment requirement for qualified mortgages, and he supported the extension of the National Flood Insurance Program.
Virginia 8 Rep. James Moran (D) • 11th term Moran continues to have a solid relationship with Northern Virginia Realtors, as well as with NAR. He has always had an aboveaverage voting record on Realtor issues. In the past, he cosponsored the ban on banks in real estate. More recently he has opposed the proposed 20% down payment requirement for qualified mortgages, supported FHA loan limits, signed onto a letter asking regulators to consider unintended consequences of proposed lease accounting rules, supported us in working for smarter FHA approval standards for condos, and cosponsored the bill stating that the selling of home warranties is not prohibited by RESPA.
Volume 19 ● Issue 5
Virginia 2
Virginia 4
Rep. Scott Rigell (R) • 1st term
Rep. Randy Forbes (R) 6th term
Rigell introduced legislation to ban Chinese drywall, he voted to protect landlords from onerous reporting requirements, and to extend the National Flood Insurance Program.
Virginia 3
Forbes has been a solid supporter of Realtors®; he voted to protect landlords from onerous reporting requirements, and to extend the National Flood Insurance Program.
Rep. Bobby Scott (D) • 10th term Scott has consistently voted in support of NAR positions, such as the extension of the National Flood Insurance Program.
Virginia 6 Rep. Bob Goodlatte (R) • 10th term Goodlatte has been a regular supporter of NAR’s positions, including opposing the proposed 20% down payment requirement for qualified mortgages, voting to protect landlords from onerous reporting requirements, and voting to extend the National Flood Insurance Program.
Virginia 9 Rep. Morgan Griffith (R) • 1st term Griffith was a friend when he was in the Virginia General Assembly, and he’s voted to protect landlords from onerous reporting requirements, and to extend the National Flood Insurance Program.
Virginia 10 Rep. Frank Wolf (R) • 16th term Wolf has always had an above average voting record on Realtor issues — he cosponsored the ban on banks in real estate, for example. This year, he opposed the proposed 20% down payment requirement, worked to extend FHA loan limits, supported us in working for smarter FHA approval standards for condos, voted to protect landlords from onerous reporting requirements, and voted to extend the National Flood Insurance Program.
Virginia 7 Rep. Eric Cantor (R) 6th term Majority Leader Cantor has maintained a solid working relationship with NAR as well as with the Richmond Association of Realtors®, and he has been a good voice for real estate in his position.
Virginia 11 Rep. Gerry Connolly (D) 2nd term Group Legislative Actions: Connolly continues to go out of his way to engage on Realtor issues and has a great relationship with the Northern Virginia Association of Realtors®. In previous Congresses he’s maintained a 100% voting record on NAR issues. More recently, he’s opposed the proposed 20% down payment requirement for QRMs, co-sponsored a bill opposing changes to the MID, opposed reducing FHA loan limits, supported us in working for smarter FHA approval standards for condos, voted to protect landlords from onerous reporting requirements, and voted to extend the National Flood Insurance Program.
october/november 2012 31
Eminent domain: Give it more thought In November, Virginians will vote on the Eminent Domain
Property owners need to know that their property cannot
Amendment (Question 1) — a constitutional amendment that
be taken away by a government entity without very good
many believe will return the issue of property rights back to the
reason — a reason that focuses on the public good, as eminent
courts for interpretation, and out of the General Assembly.
domain was originally intended.
In 2005, the Supreme Court ruled (in Kelo v. New London)
But there is need and value to giving government entities
that the city of New London, Conn., could use its power of emi-
reasonable eminent domain powers (while still protecting
nent domain to take Susette Kelo’s house and transfer it to a pri-
property owners with reforms).
vate developer. The development of her property was considered a “public use” because it would generate jobs and tax revenues. VAR and many other state Realtor® associations immediately
VAR prefers to work through the legislative process, which we find inclusive and more predictable, as opposed to leaving important issues to the court system. We feel we have more
began working with their respective state legislatures to enact
influence and positive opportunities working through the
provisions to protect property rights and limit government or
General Assembly.
private enterprise from taking property for “public use.” Thanks in large part to VAR’s leadership, in 2007 the Virginia
The amendment is moving quickly and will most likely pass this November, and VAR will not formally oppose it. We believe
General Assembly adopted eminent domain reforms to protect
it will be supported by an overwhelming majority of voters,
property owners.
and while we do take principled stands, we prefer to pick
Despite the reforms, up for vote this November is an amendment to the Virginia constitution that would serve a similar purpose. It would permit the use of eminent domain only in cases
our fights and expend political capital — and our members’ resources — on debates we have a chance of winning. Still, we believe the constitutional amendment is not neces-
involving “a public service company, public service corporation,
sary for the Commonwealth, where the existing system and
or railroad … when such exercise is for the authorized provision
laws are sufficient to protect the rights of property owners
of utility, common carrier, or railroad services.”
from the government.
It also says that “private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development,” does not qualify as “public use.”
Here’s the full text of the proposed amendment: “That the General Assembly shall pass no law whereby private
Our stand
property, the right to which is fundamental, shall be dam-
By putting eminent domain restraints in the constitution
aged or taken except for public use. No private property shall
rather than the Code of Virginia, the restrictions passed in
be damaged or taken for public use without just compensa-
2007 would be superseded, and any issues involving eminent
tion to the owner thereof. No more private property may be
domain would be handled by a court, not in the General
taken than necessary to achieve the stated public use. Just
Assembly. The proposed amendment won’t protect property
compensation shall be no less than the value of the property
owners any more than the current law, and it could make it
taken, lost profits and lost access, and damages to the residue
more difficult for legitimate public-use projects.
caused by the taking. The term ‘lost profits’ and ‘lost access’
Imagine that a town wants to widen a road to allow better
are to be defined by the General Assembly. A public service
traffic flow to an area being developed for a shopping center. It
company, public service corporation, or railroad exercises the
needs to use eminent domain to secure the land for the road.
power of eminent domain for public use when such exercise
A constitutional amendment could prevent that from happen-
is for the authorized provision of utility, common carrier, or
ing, or tie the process up in the courts, even though the town’s
railroad services. In all other cases, a taking or damaging of
council held hearings and voted to allow the project — it’s
private property is not for public use if the primary use is for
clearly for the public good.
private gain, private benefit, private enterprise, increasing jobs,
And courts are notoriously unpredictable.
increasing tax revenue, or economic development, except for
Cluttering of the Constitution with non-essentials also
the elimination of a public nuisance existing on the property.
becomes an invitation to lawyers and a reservoir of legal fees
The condemnor bears the burden of proving that the use is
charged to taxpayers.
public, without a presumption that it is.” l
32 october/november 2012
www.VARealtor.com