Agenda Summary2007 Land Use Property Rights & Environment Committee National Association of REALTORS® 2007 REALTORS® Conference & Expo Venetian Hotel Palazzo I, Level 5 Tuesday, November 13, 2007 9:00 AM - 10:30 AMChair:William Arnold, Tucson, AZ Vice Chair:LaurieUrbigkit, WY Committee Liaison:Gary Thomas, Aliso Viejo, CA Committee Executive:Russell Riggs, Mark Washko, Washington, DCI. Call To Order and Opening Remarks -Bill Arnold, Chair - Laurie Urbigkit, Vice-Chair
II. Approval of Previous Meeting's MinutesReviewof Conflict of InterestStatementOwnership Disclosure Policy
1.When NAR has an ownership interest in an entity and a member has an ownership interest* in that same entity, such member must disclose the existence of his or her ownership interest prior to speaking to a decision making body on any matter involving thatentity.
2. If a member has personal knowledge that NAR is considering doing business with an entity in which a member has any financial interest**, or with an entity in which the member serves in a decision-making capacity*, or wit, then suchmember must disclose the existence of his or her financial interest or decision making role prior to speaking to a decision making body about the entity.
3. If a member has a financial interest in, or serves in a decision-making capacity for, any entity that the member knows is offering competing products and services as those offered by NAR, then such member must disclose the existence of his or her financial interest or decision-making role prior to speaking to a decision making body about anissue involving those competing products and services.
After making the necessary disclosure, a member may participate in the discussion and vote on the matter unless that member has a conflict of interest as defined below.
Conflictof Interest Policy A member of any of NAR’s decision making bodies will be considered to have a conflict of interest whenever that member:
1. Is a principal, partner or corporate officer of a business providing products or servicesto NAR or in a business being considered as a provider of products or services (“Business:); or
2. Holds a seat on the board of directors of the Business unless the person’s only relationship to the Business is service on such boardof directors as NAR’s representative; or
3. Holds an ownership interest of more than 1 percent of the Business.
Members with a conflict of interest must immediately disclose their interest at the outset of any discussions by adecision making body pertaining to the Business or any of its products or services. Such members may not participate in the discussion relating to that Business other than to respond to questions asked of them by other members of the body. Furthermore, no member with a conflict of interest may vote on any matter in which the member has a conflict of interest, including votes to block or alter the actions of the body in order to benefit the Business in which they have an interest. ________________________________________ *Ownership interest is defined as the cumulative holdings of the member, the member’s spouse, children, siblings and to any trust, corporation or partnership in which any of the foregoing individuals is an officer or director, or owns, in the aggregate, at least 50% of the (a) beneficial interest (if a trust), (b) stock (if a corporation) or (c) partnership interests (if a partnership).
**Financial interest means any interest involving money, investments, creditor contractual rights.
III. Land Use, Property Rights and Environment Forum Preview - Sam Kain, Forum ChairForum Topic: Water, Water Everywhere? Water Resources and Development in The West
Speakers: Robert Johnson, Commissioner United States Bureau of Reclamation Patricia Mulroy, General Manager Southern Nevada Water Authority Terry Anderson, Executive Director Property and Environment Research Center
IV. Smart Growth Program Update - Joe Molinaro, Managing Director, Smart Growth Program
V. Legislative and Regulatory Update - Mark Washko, Sr. Environmental Policy Representative (Legislative) - Russell Riggs, Regulatory Representative (Regulatory)
One Page Briefing Papers:
Flood Map Funding SummaryThe Federal Emergency Management Agency is responsible for all floodplains nationwide. These maps are critical to the real estate transaction for properties in, or adjacent to, the floodplain because they determine whether or not the property is in the floodplain, whether or not flood insurance is required and, if so, how much flood insurance should be purchased. These maps also play an important role in a community's planning, public safety and economic development activities. These maps are currently undergoing a major overhaul to update them and place them into a digital format for ease of use and corrections.Impact on REALTORS®The accuracy and timeliness of these maps is critical for the transaction of properties located in, or adjacent to, a floodplain. If they are not updated regularly, the information may be incorrect and the buyer may be unaware that a property is at an increased risk for flooding.C.A.R. Policy C.A.R. has not taken policy on flood map funding.NAR Policy NAR policy states: "Funding should be appropriated to FEMA's flood hazard mapping program that is sufficient to provide for the updating and modernization of FEMA's flood hazard mapping system." Without adequate funding from general appropriations, FEMA will not have sufficient funding to update and modernize the maps; and members and clients may receive inaccurate information regarding the location of a property in the floodplain.Outlook Legislative: Since 2003, NAR has supporteda stand-alone appropriation of approximately $200 million each year from Congress to update and modernize the floodplain maps. This appropriation is included in the President's FY 2008 budget, and has been included in both the FY 2008 House and Senate appropriations legislation for the Department of Homeland Security. This legislation has passed both the House and Senate and is awaiting action by the Conference Committee. NAR is supporting this appropriation once again.
Regulatory: After 4 years of stand-alone appropriations, FEMA is well over halfway in their effort to update and modernize every 100-year floodplain in the country. This effort is scheduled for completion in FY 2010.National Flood Insurance ProgramSummary The National Flood Insurance Program (NFIP) expires on September 30, 2008. Congress must act to reauthorize (i.e., fund) the program before then. Flooding claims from the 2005 hurricanes and other storms have put the NFIP more than $17.5 billion in debt to the U.S. Treasury - a debt that cannot be repaid solely through premiums. Congress is likely to forgive the debt, but will require significant reforms to the NFIP to guarantee additional income to the NFIP to pay future claims.Impact on REALTORS® Eliminating subsidies on pre-FIRM houses and increasing premiums would make insurance more expensive for houses that are required to purchase flood insurance through the NFIP.C.A.R. Policy C.A.R. supports the reform on the NFIP to sustain its long-term viability.NAR Policy NAR supports the National Flood Insurance Program (NFIP), recognizes its importance to homeowners in flood-prone areas, and advocates changes to the program to ensure its long-term viability.
NAR recognizes that flood maps are the cornerstone of the NFIP and supports adequate funding of the FEMA's map modernization program to ensure that floodmaps are updated andmaintained. The federal flood insurance program should continue to include subsidies for second homes, vacation homes and rental properties. Non-primary residences should be given the same consideration as primary residences.
The federal floodinsurance program should impose "full risk" premiums for flood insurance on repetitive loss structures that have repeatedly (i.e., more than two occurrences) suffered insured flood losses and have declined a reasonable offer of mitigation funding from FEMA, except in states which have been granted a federal exemption.Outlook The House of Representatives passed a comprehensive NFIP reform bill, H.R. 3121, by a vote of 263-146 on September 27. The Senate Committee on Banking,Housing and Urban Affairs passed its own NFIP reform bill on October 17. Congress must pass and President Bush must sign an NFIP reform bill on or before September 30, 2008.Natural Disaster PolicySummary The intensity of natural disasters in recent years has made the acquisition of adequate insurance for residential and commercial properties very difficult in some areas. Insurers are declining to write policies, canceling existing policies, and increasing premiums and deductibles on existing policies.Impact on REALTORS® If prospective purchasers of real property are not able to obtain insurance, they may not be able to secure a mortgage, which could result in a depressed market and lead to diminished property values in disaster-prone areas.C.A.R. Policy C.A.R. believes Congress should look to implement legislation that will create a government backstop for private insurance providers, create incentives for homeowners to take steps to mitigate the effects of a natural disaster on their property, and update insurance regulations and the tax code so that insurance companies may better prepare for disasters.NAR Policy The primary emphasis of federal disaster programs should be the development of a highly coordinated system for prevention and for remedial assistance.
The goal of any federal natural disaster program should be the promotion ofavailable and affordable insurance for residential and commercial properties in disaster prone areas.
A uniform policy for administering the flood insurance program should be adopted; eliminating the existing double standard which denies insurance coverage for certain flood prone areas, such as coastal barriers, wetlands, and other environmentally sensitive areas, yet retains coverage for the remainder of the United States subject to flooding. Administrative and legislative actions to alter the federal flood insurance program or disaster prevention regulations must ensure legitimate property rights and reasonable development opportunities are not abridged.
The federal flood insurance program should continue to include subsidies forsecond homes, vacation homes and rental properties. Non-primary residences should be given the same consideration as primary residences.
The federal flood insurance program should impose "full risk" premiums for flood insurance on repetitive loss structures that have repeatedly (i.e., more than two occurrences) suffered insured flood losses and have declined a reasonable offer of mitigation funding from FEMA, except in states which have been granted a federal exemption.
Funding should be appropriated to FEMA's flood hazard mapping program that is sufficient to provide for the updating and modernization of FEMA's flood hazard mapping system. NAR will work in conjunction with FEMA to develop a funding plan.Outlook The House Committee on Financial Services on September 26, 2007 passed H.R. 3355, the Homeowners' Defense Act of 2007. The bill provides a federal backstop for state-sponsored insurance programs. The House of Representatives is expected to consider this bill by mid-November 2007 -- possibly during the week of the NAR Annual Convention.
The Senate Committee on Banking, Housing, and Urban Affairs on August 1, 2007 passed a bill to create a bi-partisan, blue-ribbon commission to study insurance availability and affordability issues and report back to Congress by December 2008 with findings and recommendations for action.
Seemingly, the Chairmen of the respective committees of jurisdiction are heading down different paths on this issue, with Senate Banking Chairman Dodd pursuing a more deliberate and slower course of action. There is room for compromise on the issue, but the ultimate outcome is uncertain at this time.
An additional complication is found in legislation to reform the National Flood Insurance Program (NFIP), specifically that the House bill includes a controversial provision that expands the NFIP to allow wind insurance to be sold through the program. Some in Congress view the wind provision in the NFIPbill as a competing measure to H.R. 3355. The Senate NFIP reform bill does not contain a wind provision.VI. Policy Review Subcommittee - Laurie Urbigkit, Vice-Chair
Final ReportIntroduction One of the goals for Bill Arnold, 2007 Chair of the NAR Land Use, Property Rights and Environment Committee, was to clarify the intent and purpose of the current policies over which the Committee has jurisdiction. To that end, Chairman Arnold appointed a Policy Review Subcommittee composed of members from the Land Use Committee and chaired by the Committee’s 2007 Vice-Chair, Laurie Urbigkit. The charge to the Subcommittee was to review each policy for timeliness and relevancy to the work of the Committee and to bring recommendations forward to the full Committee at the Annual Conference regarding any changes that should be made to each policy.
The Policy Review Subcommittee conducted its work via conference calls ande-mails. The recommendations of the Policy Review Sub-Committee are as follows:
Policies to be Changed: Community Development - Addition of one bullet at the end of the policy:"We encourage the implementation of innovative development techniques, such as those modeled by NAR programs."
Disaster Prevention, Relief and Insurance - Addition of two sentences following the final paragraph of the policy: "We support the use of sound science and collaboration with local governments in defining appropriate flood hazard areas.""We support the development, promotion and dissemination of information on insurance and risk management to property owners."
Grazing Rights - Delete "Public Rangelands Improvement Act of 1978", insert " a "
Indoor Air Quality - Delete mold references in paragraphs 2 and 3.
Policies Requiring Additional Research: Interstate Land Sales - Subcommittee tabled policy until such time as staff can conduct additional research on the issue to determine the relevancy of this issue to members.
Policies to be Left AS IS: Agriculture and Foreign Trade Clean Air Endangered Species Energy Environment Federal Ownership of Real Property Growth Issues Hazardous Waste Land Use Lead Based Paint Property Rights WetlandsAll Policies of the Land Use, Property Rights and Environment CommitteeVII. Old Business - Discussion and consideration of motion to amend NAR Policy on Disaster Prevention, Relief and Insurance that was referred back to the Committee by the Board of Directors at the Mid-Year Meeting.
Referred Motion This motion was passed by the Land Use, Property Rights and Environment Committee at the May 2007 Legislative Meetings. The Board of Directors discussed this motion and voted to refer it back to the Committee for additional consideration.
1. That the NAR Statement of Policy on Disaster Prevention, Relief and Insurance be amended [underscoring indicates additions, strikeouts indicate deletions] as follows: The primary emphasis of federal disaster programs should be the development of a highly coordinated system for prevention and for remedial assistance.The goal of any federal natural disaster program should be the promotion of available and affordable insurance for residential and commercial properties in disaster prone areas.A uniform policy for administering the flood insurance program should be adopted, eliminating the existing double standard which denies insurance coverage for certain flood prone areas, such as coastal barriers, wetlands, and other environmentally sensitive areas, yet retains coverage for the remainder of the United States subject to flooding. Administrative and legislative actions to alter the federal flood insurance program or disaster prevention regulations must ensure legitimate property rights and reasonable development opportunities are not abridged.The federal flood insurance program should continue to include subsidies for second homes, vacation homes and rental properties. Non-primary residences should be given the same consideration as primary residences.The federal flood insurance program should impose "full risk" premiums for flood insurance on repetitive loss structures that have repeatedly (i.e., more than two occurrences) suffered insured flood losses and have declined a reasonable offer of mitigation funding from FEMA, except in states which have been granted a federal exemption.Funding should be appropriated to FEMA's flood hazard mapping program that is sufficient to provide for the updating and modernization of FEMA's flood hazard mapping system. NAR will work in conjunction with FEMA to develop a funding plan.VIII. New Business - Water Quality, Water Resources and Real Estate Research Paper - Housing Policy Document - Report from the Visitability Working GroupFinal Report from the Visitability Working Group The Visitability Working group was comprised of members from the following committees: Federal Taxation - Lance Lacy Federal Housing Programs - Iona Harrison Conventional Lending and Finance -John Veneris Land Use, Property Rights and Environment - Dick Dills and Dave Feeken Equal Opportunity Cultural Diversity - Marilyn Glazer and Milton Shockley (chair) REALTORS Commercial Alliance - Cindy Chandler Smart Growth AdvisoryBoard - Ken Jackson Housing Needs - Bob Caldwell Housing Opportunities Advisory Board - Jim Hamilton State and Local Issues - Dave Wluka
The Working group evaluated a recommendation made at Mid-year by the Equal Opportunity Cultural Diversity Committee that NAR support the concept of Visitability in Housing. This recommendation was referred back to committee by the Board of Directors with the creation of this working group.
The Working Group has finished its work and finalized a recommendation that will now once again be considered by the Equal Opportunity Cultural Diversity Committee. It is my expectation that the recommendation will be endorsed and forwarded to the Board of Directors in November. However, since eachof the committees above has a stake in this recommendation, we have a process in mind for managing this recommendation. The following process was crafted by the working group and each working group member is prepared to help in the process.
1.The Recommendation will be considered as an action item by Equal Opportunity Cultural Diversity. If for some reason the recommendation is amended at the EOCD committee, it will also forward the original working group recommendation.
2. Each ofthe other committees is encouraged to treat this as an informational report to be made by the representative on the working group. I will provide you with the language of the recommendation with rationale for you to distribute to committee members. I willalso provide the working group members and each of you with some talking points should questions arise.
3. The working group suggests that your committee take no action on this recommendation, but instead inform committee members that they mayattend the EOCD meeting or PPCC to voice questions or comments. The recommendation is based on hours of considering and balancing the issues and concerns of the various committees.
4. PPCC will act on the recommendation from the working groupand EOCD and it will move through the process to the BOD.
If committee members with questions and comments are directed to the EOCD and PPCC committees, this information report should take only a couple of minutes during your meeting.
If you have any questions regarding this recommendation or process, please ask me.
The recommendation is as follows:
That NAR believes that visitability, the ability to host visitors with mobility impairments, can be important in homes.
That NAR believes that any visitability policy should be defined as voluntary. Further, NAR believes that the market is the best mechanism to produce visitable housing and opposes any federal visitability mandates.
For the purposes of this policy, the key features of visitability apply to one level of the home. These are a no-step entry, passage doorways that provide at least 32” clearance, and a minimum of a useable half bathroom with a sink and water closet.
That NAR educate its members about the concept of visitable housing.
That NAR become a resource on visitable housing, compile best practices and examples of local and state building codes and make this information available to state and local associations.- Discussion Item: Provisionally Accredited Levees - Discussion Item: Should the NFIP offer coverage for wind?IX. Adjournment
