Legislative Link, March 23, 2013

Legislative Link, March 23, 2013

Bill to Prevent Private Transfer Fees Moves to Senate Rules Committee
GAR has taken a strong position to support the prohibition of private transfer fees in Georgia and is working hard for the passage of HB 160. HB 160 cleared Committee this week and is now available for the Senate Rules Committee. This bill would prohibit private transfer fees that developers might charge on subsequent transactions of real property and provide protections for future purchasers. With the assistance of NAR, over 40 states have banned the use of private transfer fees. GAR is supported in this effort by the Real Estate Section of the Georgia BAR Association and the Georgia Land Title Association. A private transfer fee is a charge that is required to be paid to a developer or individual at closing each time a property is sold. The fees range in amount but have been as high as 1 percent of the original mortgage amount. The transfer fee is attached to the property as a covenant and usually runs for a set period, often 20 or 99 years. While developers say it is a way to spread improvement costs over a longer period, opponents believe private transfer fees decrease affordability, increase potential liability, and provide no benefit to property purchasers within that community.

Lien Law Bill Moves Forward in Senate
Another 2013 Legislative Priority that has passed the Senate Judiciary Committee and is now available for the Senate Rules Committee is HB 434. This bill is in response to a Court of Appeals decision that limited what expenses can be included in a materialman's lien. This would permit them to receive not only the cost of their labor but also the expense amounts for materials. Originally the Court ruled that a contractor or subcontractor's General Condition Costs were not lienable items. According to this ruling, lienable items are only those that are fixed to the real estate. GAR will continue to support this bill, which returns lien law to it's original form and the traditional long standing practice of lien law in Georgia.

NAR Successfully Extends Rural Housing Funding Programs
Rural Americans rely on Rural Housing Service programs like the 502 Rural Housing Guaranteed Loan Program to provide them with services that can be difficult to come by in some communities. This program is instrumental in providing mortgage financing in small but growing communities. NAR released a Call for Action late last year to support the extension of the RHS programs. Included in a Continuing Resolution that just passed the U.S. House, and previously passed the U.S. Senate, is a provision grandfathering existing rural communities through September 30, 2013. Roughly 900 communities across the country would have lost access to affordable mortgages including the following in Georgia: Cusetta, Monroe, Villa Rica and Winder. NAR will continue to work on a more permanent solution to provide thousands of American families access to safe and affordable mortgages.

http://www.garealtor.com/Advocacy/LegislativeCommunications/LegislativeLink.aspx

2012 Governmental Affairs Report

RPAC

Thanks to Our Members!!!

The following companies were 100% RPAC contributors

Adams Realty and Management

Ballast Real Estate

Bodaford Property Management

Wanda Brooks Realty

Coldwell Banker Garvin

Exit Team Realty

Lighthouse Point Realty

Mitchell and Associates

MSH Real Estate Company

Prudential Coastal Georgia Properties

Reese and Company

Savannah List for Less

WH Johnson Realty

We had 58 Individual Donors who gave $99 or more;

1      Crystal R (1500)

         

          Bonnie Gaster

9      Sterling R’s (1000)

         

           Tim Adams

           Donna Davis

           Steven Fischer

           Michele Gutting

           Linda King

           Harriet Konter

           Robin Lance

           Jennifer Scroggs

           Monica Spillane

         

6      Ambassadors (500)

         

          Matthew Buck

          Don Golden       

          Paul Gutting

          Chip Kreps

          Reba Laramy

          Bill Miltiades

         

10    Capitol (200)

         

          Gary Boyd

          Patricia Ewaldsen

          Barbara Foster

          Dianne Kessler

          Goldie Little

          Heather Murphy

          Deetie Rahn

          Connie Ray

          Mary Slakie

          Cora Bett Thomas

32    $99 Clubbers

          Rich Brown

          Sue Brown

          Noel Daoud

          George Evans

          Kimberly Fox

          Johnnie Ganem

          Kim Goode

          Alma Greene

          Linda Hawk

          Gale Hirsh

          Janet Howard

          Patricia Huene

          Allison Johnson

          Kelly Johnson

          Patrick Kelley

          Judith McDougal      

          Christina McIntosh

          Ronald Melander

          Margaret Mendrala

          Helen Miltiades

          Vickie Mitchell

          Richard Mopper

          Melissa Mullinix

          Susan Myers

          Carole Paul

          Robert Sales

          Karen Schroder

          Sabryia Scott

          Kelli Senn

          Kathleen Smith

          Doris Thomas

          Nancy Thompson

         

My Realtor Party

NAR and GAR have greatly upped our political advocacy efforts and visibility.  SABOR is also stepping up to the plate and has been involved in local campaigns for politicians who are proven property rights supporters.  Our RPAC dollars go to candidates 

who are property rights advocates .  In a first for our board, we held a robo call for one of our own, Lori Brady.  Other candidates from both parties received our support. We as a group supported the TSPLOST efforts of the Chambers of Commerce in Bryan, Chatham and Effingham Counties. 

Our Legislative issues this year were from all three counties and included sign ordinance in Bryan County, UZO (Unified Zoning Ordinance) in Chatham County and Land Use issue for Effingham County. 

We encourage all our members to bring issues and candidates to our attention, if they impact our business.

Global Alliance and Cultural Diversity was a new initiative this year.  With our area being a business hub for a number of culturally diverse businesses, we wanted to offer members the opportunity to expand into those areas. 

This workgroup has been a sponsor of HOLA   (Hispanic and Latin American Students Scholarship Program) at Armstrong Atlantic University.  We had an expert panel discussion for Fair Housing Month and in addition supported the First Civil Rights Breakfast at Savannah State University.  Our members donated to the TIES program, a group of male mentors to help youth get into the workforce.   During GRI, in Savannah, we hosted a Global Alliance Party featuring the new head of the World Trade Center in Savannah.  Last but not least, SABOR was the official sponsor for the picnic judging for the hugely popular Picnic in the Park in October.  We hope these activities, and the publicity they generated, will put SABOR and our Realtor Members in a good light to the public and show that Realtors care about our community.

All in all, it has been a good year for Governmental Affairs and I appreciate all the hard work and contributions of you, your committees, affiliates and members-at-large.

Linda King

Vice President of Governmental Affairs 2012

Savannah Board of Realtors

REALTORS® Beware!

Five vacant homes this week have been rented out by a man saying his name is Lafayette. This man even goes as far as having updates done to the home like new paint. Four of the homes belong to investors and one was listed by one of our REALTORS®. Please make sure that you’re checking on your vacant listings. The Savannah-Chatham Police department has a case open if this happens to you please contact them at 912.651.6675.

You Made It Happen!

When it comes to the well-being of our industry and home ownership, every one of us plays an important role.

October 2012 | By Moe Veissi

When I was installed as president of the NATIONAL ASSOCIATION OF REALTORS® in November 2011, I said I’d need your commitment to advance the interests of the REALTOR® Party, consumers, and our members. You delivered big time. Thank you for your contribution to what has been a remarkable year for our industry and for me personally.

Help shape the future of organized real estate by participating in REThink.

• You secured an extension of the National Flood Insurance Program through Sept. 30, 2017, bene­fiting 21,000 communities where flood insurance is required for a mortgage. In the House, you obtained passage of rewritten RESPA rules that would enable us to reinstate the longstanding practice of partnering with home warranty companies. Some said it wouldn’t happen in 2012—but you believed it, and you made it happen.
• You alerted Congress that some 900 communities nationwide were in danger of being dropped from Rural Housing Service programs and ensured that access is retained throughout this fall. Now, we’re asking Congress to review the government’s outdated definition of “rural” and re­instate those communities. You are amazing!
• You brought the “Home Ownership Matters” message to Washington during the 13,800-strong REALTOR® Rally; supported pro-REALTOR® Party candidates; kicked off a historic e-mail initiative to build a relationship with the country’s 80 million property owners; and worked to ensure that lender and GSE reforms don’t hamper opportunities for responsible, qualified borrowers. Wow!
• You made the REALTORS® Political Action Committee, once again, No. 1 in terms of campaign contributions. You blew the doors off the initial RPAC goals, and you’re still going strong!

Each of these priorities is in some way meant to help your business. Although we’ve seen positive economic indicators this year, I know many of you are still struggling to find saleable inventory and close deals. Like you, I am a working broker, and your concerns will always be mine.
I’m a big fan of Axl Rose (more for his musicianship than for his aggressive personality, though some might say that’s a trait I share). In “November Rain,” Axl sings, “Nothing lasts forever, not even the cold November rain.” Well, it’s November again, and my presidency is coming to a close. But the good work continues with you. Thanks to the NAR leadership and management teams—your support has been tremendous. To the vice presidents, liaisons, and committee and forum chairs, vice chairs, and members—you were invaluable. And to every REALTOR® who engaged in our efforts—you are the strength of this industry and a crucial part of the economic, social, and cultural fabric of our country.  Remember, REALTORS® Are the Heart of the Deal!
http://realtormag.realtor.org/news-and-commentary/nar-president/article/2012/11/you-made-it-happen#.UJkfgLj4GxM.email 

2012 You Can't Fix Stupid Class - Statesboro Board of REALTORS® Class

Call for Action: Preserve Access to Safe and Affordable Mortgages

Potential homeowners in small but growing communities across the country face unique difficulties in finding access to safe, affordable mortgage financing.  Although the name, Rural Housing Section 502 loan program (RHS), implies a limited client base, the RHS is instrumental in providing the mortgage financing that opens up opportunities for homeownership in small but growing communities. Roughly 900 communities across the country will soon lose eligibility for Rural Housing Service programs like Section 502.  Unless Congress acts, thousands of American families will lose access to safe and affordable mortgages.

During a time of fiscal constraints it is important to understand that the Section 502 program is completely self-financed.  Maintaining access for the affected communities will not add one penny to the federal budget.

Strong communities, large and small have always been the key to a strong America.  Whether you live in an urban area, suburban, exurban community or a small farming town as a REALTOR® we need you to remind Congress to keep the door to homeownership open in all housing markets.

Please take action today and urge Congress to pass legislation that extends the eligibility of existing communities for programs of the RHS

Take Action NOW by clicking on the link below!
https://realtorparty.realtoractioncenter.com/site/Advocacy?pagename=homepage&page=UserAction&id=2267&AddInterest=1361 

In response to Linda’s great idea for us each to share some “take away’s” from the GAR Conference with our members,

In response to Linda’s great idea for us each to share some “take away’s” from the GAR Conference with our members, I asked Moe Veissi’s speech writer (yes, he actually has a staff speech writer at NAR) to supply me with his talking points.  What I received was a combination of speeches he’s given recently to Alaska, Maryland and GAR.  So, I have taken the liberty of editing them all into the attached, which I hope will enlighten the members who weren’t able to hear Moe.  Further, I think that we all, as leaders and spokespersons for our wonderful Association, can use these points when we address the media, or sales meetings or whenever we have an opportunity. Also, I would like to video a presentation of these remarks which we can make available to Brokers and on line. Thanks

Chip Kreps, RCE

Executive Director

Moe Veissi's talking points

Accomplishments

Ø Let me update you on some of our legislative and regulatory issues.

Ø First, a couple of NAR’s accomplishments this year.

Ø It was a relatively quiet year legislatively, but NAR worked hard behind the scenes.

NFIP

Ø We were happy the President signed the bill containing the five-year reauthorization of the National Flood Insurance Program.

Ø This is an important success, but like all legislative accomplishments, it was the result of compromise. 

Ø Moving forward we expect Congress to focus on the budget deficit.

Ø Given the shortfall, we’ll have to fight hard for our goals.

VA Loan Limits

Ø We’re also pleased Congress passed, and the President signed, a bill (HR 1627) that will reinstate the higher VA loan limits through 2014.

Ø It makes the ARMs permanent and allows loan pooling

Ø This helps our servicemen and women open the door to homeownership by keeping mortgage financing affordable and accessible.

Ø It’s part of our promise to American’s veterans who have given so much to defend our freedom.

What’s Ahead

Tax Reform

Ø With the so-called fiscal cliff looming, we’re expecting Congress to undertake comprehensive tax reform in the year 2013.

Ø We’re having ongoing discussions with House leadership, and we intend to keep that going throughout the process.

Ø We’ll be pushing hard to maintain the historical tax incentives to homeownership.

Ø In particular, we do not intend to give an inch on the Mortgage Interest Deduction.

Ø A huge tax increase on the middle class during an economic recovery doesn’t sound like a great idea to me.  How about you?

Ø The mortgage interest deduction is crucial to the stability of the American housing market and the economy. And it’s something we need to protect.

Ø We hope to be as successful nationally as you’ve been here on the State level, but we’ll need to keep fighting.

GSEs

Ø NAR believes we must restructure Fannie Mae and Freddie Mac.

Ø The best way to do this is by enacting comprehensive legislation to restructure the secondary mortgage market, while continuing the federal government’s role in the secondary mortgage market.

Ø We want to see mortgage liquidity in all markets, under all economic conditions.

QRM & QM

Ø NAR is urging federal regulators to re-craft the QRM exemption to include loans with down payments of less than 20 percent.

Ø As you may know, responsible lending standards and borrower’s ability to repay have the greatest impact on reducing lender risk—not high down payments.

Ø NAR supports a QM definition that:

o   establishes strong consumer protections,

o   promotes mortgage liquidity,

o   incorporates ability-to-repay standards, and

o   offers lenders a “safe harbor” that reduces litigation exposure.

Ø Simply put, we want to protect consumers while encouraging private lenders to return to the market.

Ø NAR forged the broad-based Coalition for Sensible Housing Policy, which asked for and received an extension of the proposed regulation comment period. 

Ø We expect action on QM before the end of 2012, with QRM to follow in 2013. 

Ø We want to ensure the rules do not block access for millions of lower income, first time buyers and residents of many communities who were most impacted by the recent foreclosure and credit crises.

Mortgage Cancellation Tax Relief

Ø Mortgage cancellation relief is set to expire at the end of the year.

o   Passed in 2007, with NAR’s support, it’s already been extended once, in 2009.

o   The bill was reported from the Senate Finance Committee; now it has to pass the House and the Senate.

Ø NAR is making a strong push for another extension to ensure this “phantom-income” tax doesn’t return.

o   Given its strong bipartisan support in both houses, many members can be expected to support an extension.

o   We’re optimistic that agreement can be reached.