Agenda Summary
National Association of REALTORS®
2009 Midyear Legislative Meetings
Omni Shoreham Hotel
Blue Room
Tuesday, May 12, 2009
7:30 AM - 9:30 AM

Chair: Frank Dickens, Scottsdale, AZ
Vice Chair: Linda Todd, Grand Junction , CO
Committee Liaison: Lance Lacey, San Angelo, TX
Committee Executive: Russell Riggs, Co-Staff Executive
Austin Perez, Co-Staff Executive

I. Call To Order and Opening Remarks
- Frank Dickens, Chair (480-596-9799, frankdkns@msn.com)
- Linda Todd, Vice-Chair (970-263-7250, linda@buygrandjunction.com)

II. Approval of Previous Meeting's Minutes
 
Review of Conflict of Interest Statement

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 that entity.

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 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 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 an issue 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.

Conflict of 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 services to 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 board of 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 a decision 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).

III. Review, Discussion and Approval of the 2009 Committee Goals

IV. Land Use, Property Rights and Environment Forum Preview
- Terry Sullivan, Chair (509-443-1890, srinc12@qwestoffice.net)
- Donna Smith, Vice-Chair (864-288-4048, sdonnao@aol.com)

V. Smart Growth Program and Land Use Initiative Update
- Joe Molinaro, Managing Director, Smart Growth Program

VI. Political, Legislative and Regulatory Update
- Helen Devlin, Legislative Representative (202-383-7559, hdevlin@realtors.org)
- Austin Perez, Policy Representative (202-383-1046, aperez@realtors.org)
- Russell Riggs, Regulatory Representative (202-383-1259, rriggs@realtors.org)

Issue to be Updated/Discussed Include:
- Expansion of Clean Water Act Jurisdiction

Wetlands serve vital ecological purposes, including flood control, filtering runoff, and providing wildlife habitat. Section 404 of the Clean Water Act establishes a permit program, administered by the Army Corps of Engineers (Corps), to regulate the discharge of "dredged or fill material" into "waters of the United States," including wetlands. The Corps and the U.S. EPA have interpreted this program broadly regarding areas that are covered and permitted activities. Recent legislation introduced in Congress would seek to broaden further the definition of what the Corps and EPA would consider "waters of the U.S."

A stringent wetlands regulatory and permitting program hinders economic and real estate development by making it more expensive, time-consuming and burdensome to develop homes and commercial property. In addition, property rights are eroded by administrative rulings that prohibit or limit development activity on existing property without compensation because of the discovery of wetlands on the property.

REALTORS® support government policies that would: ensure that appropriate scientific criteria are used to identify regulated areas; focus on preserving high value wetlands; require that local officials and affected property owners be notified of the program and the presence of wetlands; and encourage the use of wetlands mitigation banking.

In the 110th Congress two bills, H.R. 2421 and S. 1870, were introduced that sought to overturn two recent U.S. Supreme Court Rulings and bring clarity to the Clean Water Act and its jurisdiction. The main proposal is to remove the term "navigable" from the Clean Water Act and replace it with the term "Waters of the United States." As defined, this would greatly expand Federal jurisdiction over waters of the U.S.

Both the House of Representatives and Senate held hearings this year on this legislation. Legislation is expected to be re-introduced in the next Congress, where the prospects for passage could improve.

- Homeowners Insurance Affordability and Availability

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.

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.

REALTORS® want any federal natural disaster program to be the assist property owners in finding available affordable insurance for residential and commercial properties in disaster-prone areas.

The House and Senate approved versions of legislation (H.R. 3121) to re-authorize the National Flood Insurance Program (NFIP). Among the differences, the House version would allow for purchase of wind insurance through NFIP. The Senate would create a bipartisan, blue-ribbon commission to study insurance availability and affordability issues and report back to Congress with recommendations for action.

- Building Energy Efficiency Labeling Legislation

Reps. Waxman (D-CA) and Markey (D-MA) introduced legislation which develops Energy Star labels for homes and buildings and provides funds to states that implement a labeling program, the “American Clean Energy and Security Act of 2009”. C.A.R. and NAR oppose this legislation as it includes POS which adds unnecessary costs to transactions and has been show to be an ineffective tool for implementing changes in energy efficiency. 

REALTORS® oppose mandatory POS energy labels for buildings and homes, but support legislation that provides financial incentives for energy retrofits, including: H.R. 1778 (Matching Grants) – Rep. Welch (D-VT) and H.R. 1573 (Zero-Interest Loans) – Rep. Van Hollen (D-MD). Energy labels will only stigmatize older properties, causing a loss in home value further weakening the national economy. Labeling every home in America will not, in and of itself, save energy; providing incentives to property owners who make energy improvements will.

- CO2 Emissions Regulation

- National Flood Insurance Program/Floodplain Maps

The sunset date for the National Flood Insurance Program (NFIP) was March 6, 2009. Congress has since re-extended the sunset date once again. Debate continues over long-term reforms to the program, including how to address approximately $20 billion in debt to the U.S. Treasury as result of major hurricanes and flooding since 2005.

The floodplain 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 are currently undergoing a major overhaul to ensure their accuracy and place them into a digital format for ease of use and corrections.

In Federally designated flood areas, property owners are required to purchase NFIP insurance in order to obtain a mortgage. Some reforms under consideration would increase premiums or make the insurance more expensive.

The accuracy and timeliness of the floodplain 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.

REALTORS® support the NFIP, recognize its importance to homeowners in flood-prone areas, and advocate changes to the program to ensure its long-term viability.  Flood maps are the cornerstone of the NFIP and supports adequate funding of the FEMA's map modernization program to ensure that flood maps are updated and maintained. The federal flood insurance program should continue to include comprehensive coverage for second homes, vacation homes and rental properties.

In the 110th Congress, the House of Representatives and Senate each approved a version of legislation (H.R. 3121) with reforms supported by REALTORS®. The House version would raise coverage limits, add coverage for business interruption, and allow for purchase of wind insurance through NFIP. The Senate would forgive the 2005 hurricane debt to avoid rate increases and establish a commission on natural catastrophe insurance. Both would reauthorize NFIP for five years.

Of concern, an earlier House bill would phase-in “full risk” premium rates on older primary residences selling for more than $600,000. The Senate would require insurance behind levees and dams.

- Lead Paint Repair and Renovation Rule Educational Product

VIII. Old Business
- Travel Management Plans in the National Forests
- DHS Border Fence
- Checkerboard Land Use Pattern

IX. New Business
- Land use, property rights and environment landing page on realtor.org
- Results of the Land Use Committee Issue Priority Survey

X. Committee Member Information Exchange/Discussion/Interaction