January 22, 2009

Federal Issues Committee

(The following is for study only and has NOT been approved by the Board of Directors.)

Issue:
Should C.A.R, in conjunction with NAR, support that:
a. Every American should have access to a high-speed, world-class communications infrastructure.
b. High-capacity broadband connectivity should be affordable and widely-accessible.
c. A variety of options should be considered to encourage quality broadband deployment and adoption including action by the public and private sector.

Action:
Action is not required at this time; however, this issue may be included in legislation as early as January including the next economic stimulus package.

Options:
1. Support
2. Oppose
3. Neutral
4. Not Real Estate Related
5. Other

Status/Summary:
With the economy reeling and every industry looking for funds to help create jobs, high-speed internet access is being billed as an infrastructure project that would help create jobs, stimulate community growth, and benefit communities both currently and in the future. 

Technology is seen as a pivotal part of education and preparing people and communities for jobs of the future.  There is currently a large coalition of technology and communications companies and unions working to have high-speed internet access included in the next Congressional economic stimulus package as an infrastructure project.  The ideas on what should be funded vary greatly.  There are calls to continue a national initiative to “map” the availability of internet access in America and there are also calls for tax incentives or even federal subsidies to help bring high-speed internet access to areas that are currently lacking access.  They are saying that broadband development translates to economic development and projects such as these need to be seen as the new version of a “national highway system”. 

Background:
With the great technology boom of the 1990’s there came increased access to faster internet connections.  Today, many people in urban settings have options of carriers that include high-speed internet connections (DSL, Cable, Satellite, etc…).  Nonetheless, not everybody has access to these high-speed internet options.  The infrastructure, especially in rural communities, has been seen as too expensive for companies to produce; therefore, many in rural communities do not have access to high-speed internet at an affordable rate.  Current options in these communities are either basic dial-up access or expensive satellite access.

Communities have been trying to figure out ways to expand internet access as it brings about growth in the local community, job creation, and helps expand education.  Urban communities have been gaining greater access to high-speed internet and even Wi-Fi access.  Rural communities though have struggled to find companies willing to lay the expensive infrastructure as they worry there are not enough customers to cover the costs. 

Pro:
Internet access is becoming an essential part of education and an increasing part of commerce.  REALTORS® are increasingly finding clients via the internet and homeowners and buyers are often turning to the internet to start their searches.  Expanding internet access can benefit REALTORS® who are putting more information on the internet.  Additionally, expanding high-speed internet can be seen as infrastructure that makes communities look promising for perspective buyers and can help create jobs. 

Con:
With deficits on the rise funding may be at a premium.  Congress is allocating funds currently for job creation, economic stimulus, and for housing market stabilization.  There will come a limit on how much Congress is able to allocate before they increase the budget deficit to a maximum limit.  Allocating money for high-speed internet access may cut into other funding.

Impact on REALTORS®:
Many people are now turning to the internet to start their search for real estate.  REALTORS® are making strides to put more content and information on websites in order to allow perspective clients access.  These efforts only work if people have access to the internet.

NAR Policy:
At the November 2008 meetings, NAR took the following policy:
That NAR adopt the following Broadband Access Policy Principles:
a. Every American should have access to a high-speed, world-class communications infrastructure.
b. High-capacity broadband connectivity should be affordable and widely-accessible.
c. A variety of options should be considered to encourage quality broadband deployment and adoption including action by the public and private sector.

C.A.R. Policy:
Currently C.A.R. does not have policy on this issue.

Should C.A.R, in conjunction with NAR, support that:
a. Every American should have access to a high-speed, world-class communications infrastructure.
b. High-capacity broadband connectivity should be affordable and widely-accessible.
c. A variety of options should be considered to encourage quality broadband deployment and adoption including action by the public and private sector.