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(The
North Carolina Association of REALTORS® Government Affairs Update is
published weekly during the legislative session by the NC Association
of REALTORS®, Inc. as a service to its membership. This report is sent
via email to REALTORS® across North Carolina. If you have any
questions, please call the NC Association of RELATORS® Government
Affairs Department at 1-800-443-9956.)
North Carolina News:
State Budget Contains Cuts and Taxes, but no Targeted Taxes on Real Estate or REALTORS®
State legislators working to adopt a budget for the next two fiscal years, while facing a multi-billion dollar deficit, were contemplating several tax ideas of enormous concern for REALTORS®. Some of these ideas include taxing on services, increasing the privilege license tax, taxing LLCs, and eliminating personal income tax deductions for mortgage interest and property taxes. However, the NC Association of REALTORS® successfully halted all of these tax ideas.
The $19 billion state budget recently approved by the General Assembly and signed by the Governor includes nearly $1 billion in new taxes, approximately $2 billion in spending cuts and more than $1 billion in federal stimulus funds. The tax increases include the following:
• A one cent increase in the sales tax until July 1, 2011.
• Surcharges on corporate income taxes of 3 percent for the next two years.
• Surcharges on personal income taxes of 2 or 3 percent for the next two years depending on
income level.
• Permanent increases in cigarette and alcohol taxes.
Our victories in defeating these tax proposals harmful for our industry cannot be celebrated for too long. There will continue to be an examination of the state’s tax code. House and Senate finance committee leaders will continue to meet this Fall to review the tax code and consider the idea of restructuring our state tax system. There could even be a special legislative session to consider such reform. The NC Association of RELATORS® will continue to be engaged in this issue. Stay tuned!
Lots of Issues to Keep the Government Affairs Department Busy!
The General Assembly has adjourned for the year, and now the N.C. Association of REALTORS® Government Affairs team will be working with the various study committees established by the General Assembly this Session. There is a wide range of issues that will be studied over the interim and many could impact the real estate industry. Here is an example of some of the topics that we will be actively involved with during the legislative interim:
• Sanitary Districts
• Mountain Recourses/Steep Slope
• Disclosure of Coastal Hazards
• Public Participation In Setting Insurance Rates
• Mechanic’s Liens on Real Property
• Commercial Real Estate Broker Liens
• Ordinances Banning Clotheslines
• Green Building Code
• Property Tax Relief Programs and Exemptions
• Siting of Wind Energy Facilities
• Transfer Development Rights
• Changes to NC’s Banking Laws and the Consumer Finance Act
• Regional Economic Development
• Insurance Rate Filing Process Reformation
• Homeowners Associations
• Transportation Funding Distribution
• Water Allocation
• Water and Wastewater Infrastructure
• Consolidation of Environmental Policy and Rule-Making Functions into one Commission
• Sustainable Growth
• NC Saves Energy Program Creation
• Impact and Use of Temporary Erosion Control Structures
• NC’s Energy Future
National News:
HUD Releases FAQs on New RESPA Rule
On August 13, 2009 the Department of Housing and Urban Development (HUD) released its first series of "frequently asked questions" (FAQs) that help to explain multiple aspects of the Real Estate Settlement Procedures Act (RESPA) final rule published November 17, 2008. Nearly 90 FAQs, organized by subject, cover multiple topics ranging from questions concerning effective dates to filling out the new GFE and HUD-1 forms. While some provisions of the final rule went into effect on January 16, 2009, the majority of the provisions, including mandatory use of the new GFE and HUD-1 forms will go into effect on January 1, 2010. Get more information at the following links: HUD FAQs on New RESPA Rule, and HUD FAQs Press Release.
NAR Calls for Rescission of Two Appraisal Requirements on Certain FHA Loans
On August 14, 2009, NAR President Charles McMillan wrote to FHA Commissioner Dave Stevens to request the Federal Housing Administration's (FHA) requirement of two appraisals in certain circumstances be rescinded. Mortgagee Letter 2008-09, released on April 1, 2008, states that a second appraisal is required for properties that exceed $417,000. The property must also be in a declining area where the loan-to-value (LTV) ratio, including upfront mortgage insurance premium, exceeds 95 percent.
NAR believes this requirement imposes an undue burden on properties in the hardest hit markets, is redundant and increases the cost of the real estate transaction for the consumer. One appraisal, completed in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), should be sufficient to reflect the true value of a home. Get more information at the following links: NAR Letter to FHA on Requirement of Two Appraisals in Some Markets and Mortgagee Letter 2008-09: Second
Appraisal Requirements/Limits on Cash-Out Refinances.
Lead Paint Renovation Compliance Guide Now Available On-Line
This compliance guide provides information for REALTORS® and property managers on the EPA's new Renovation, Repair and Painting Rule. The guide describes the new lead-based paint safety practices established by the rule, and what steps REALTORS® and property managers need to take to comply with the new procedures. The guide includes a short introduction, two narrated presentations, and two sets of frequently asked
questions (FAQ) answered by EPA officials and regulatory experts--one video each for REALTORS® and property managers. Get more information at Visit the guide at www.realtor.org/leadpaint. |
