Government Affairs Update
April 3, 2009
THIS WEEK AT THE LEGISLATURE...
ACT 137 Scheduled for Decision Making on Friday
SB34 SD1 addresses the unintended consequences of Act 137 and excludes licensed real estate brokers and salespersons from the definition of distressed property consultants in the Mortgage Foreclosure Rescue Fraud Prevention Act. It also prohibits real estate licensees from acquiring an ownership interest, directly or indirectly, or by means of a subsidiary or affiliate, in any distressed property that is listed with the licensee or within three hundred sixty-five days after the licensee's listing agreement for the distressed property is terminated.
House Judiciary passed the bill with a House Draft 1 with technical amendments. The committee also extended the restriction from 1 year to 2 years from the date the listing agreement is terminated when a real estate licensee can acquire the distressed property.
Proposed Bill Would Treat Owner-Builder’s as Employers?
SB205 SD1 HD1 also known as the owner-builder bill has been amended and would require applicants for county building permits under the owner-builder exemption from the contractor licensing law to submit their state and federal tax identification numbers, federal and state tax clearances, and certificate of workers' compensation insurance.
HAR pointed out that as an owner-builder a homeowner acts as its own general contractor. But not all owner-builders are employers that would possess the tax and insurance information required by the proposed measure, and therefore not all owner-builders would be able to provide this information with their permit application. HAR believes the language as drafted may not be workable, and would impose an unfair and onerous burden on legitimate homeowners acting as owner-builders.
HAR Opposing Reductions to the Rental Housing Trust Fund Percentage
HB1741 HD1 would temporarily reduce the portions of the Conveyance Tax transferred to the Rental Housing Trust Fund and Natural Area Reserve Fund from 30 to 15%. It is scheduled for hearing on 04-06-09 10:00 a.m. in conference room 211.
HAR has historically supported mechanisms to help increase the supply of low and moderate income affordable housing such as the Rental Housing Trust Fund Program which helps integrate the use of mixed-income and mixed-use projects, special purpose revenue bonds, low-interest loans, block grants, low-income housing tax credit programs and deferred loan programs to provide affordable rental housing opportunities.
HAR opposed this bill, as there is never enough money in the Fund to satisfy the need for low-income housing rentals.
Important Legislative Date
April 7, 2009 marks 2nd Decking Deadline. Because we have a bicameral system, if one house amends a measure, the other house must have the opportunity to agree or disagree with the amendments made by the first house.
The convening of a House-Senate conference committee is used to resolve differences if there is formal disagreement.