2008 Land Use Property Rights And Environment Committee
National Association of REALTORS®
2008 Midyear Legislative Meetings & Trade Expo
Marriott Wardman Park
Thurgood Marshall Ballroom
South Mezzazine Level
Wednesday, May 14, 2008
10:00 AM - 12:00 PM

Chair: Laurie Urbigkit, WY
Vice Chair: Frank Dickens, AZ
Committee Liaison: Steve Brown, OH
Committee Executive: Russell Riggs, Mark Washko

I . Call To Order and Opening Remarks
Laurie Urbigkit, WY - Chair
Frank Dickens, AZ - Vice-Chair

II. Approval of Previous Meeting's Minutes

1. Review of Conflict of Interest Statement

Ownership Disclosure And Conflict Of Interest Policy

Ownership 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 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).

**Financial interest means any interest involving money, investments, credit or contractual rights.

III. Review of 2008 Committee Goals

Committee:
Land Use, Property Rights And Environment

Purpose:
To explore, recommend, and promote actions and strategies on legislative and regulatory matters regarding the environment, land use, and property rights that impact the development, sale, transfer, and value of real estate; to monitor federal legislation and regulations pertaining to the environment, land use, and property rights; and to recommend an appropriate NAR response to requests for assistance (in these regards) from State or Local Associations.

Liaison:
Steve Brown, OH

Committee Staff:
Russell Riggs, 202/383-1259
Mark Washko, 202/383-7526

GOAL #1:
Water Resources: Discuss and consider the possibility of drafting and presenting to the NAR Board of Directors for consideration a Statement of Policy on Water Resources. This Statement of Policy would be based on research conducted at the direction of the Land Use Committee during 2007.

Actions to be taken by Committee to Achieve Goal:
- Review research conducted in 2007, research that was conducted pursuant to a request made at the 2007 Mid-Year Meeting in Washington, DC
- The Committee will discuss the merits of developing a policy on water quality at the 2008 Mid-Year Meeting and decide how to proceed.

Expected Outcome: The Committee will decide at the 2008 Mid-Year meeting whether to pursue development of an NAR Statement of Policy on Water Quality. If the decision is made to proceed, the Committee will vote on such a policy at the Annual Meeting in November.

GOAL #2:
Multiple Peril Property Insurance: The Committee will research and discuss the merits of having a multiple-peril property insurance product for residential and commercial properties with the possibility of recommending to the NAR Board of Directors an amendment to the NAR Policy on Disaster Prevention, Relief and Insurance in support of multiple-peril insurance.

Actions to be taken by Committee to Achieve Goal:
- The Committee will invite to the Mid-Year Meeting a speaker representing state insurance commissioners to provide background and educational material on the issue
- Staff will research the issue, meeting as necessary with other stakeholders and report findings to the Committee for consideration
- The Committee will discuss whether recent changes to the NAR Policy on Disaster Prevention, Relief and Insurance are sufficient or whether the policy should be further amended to include support for multiple-peril insurance

Expected Outcome: The Committee will make an informed decision by the time of the Annual Meeting in November on whether to recommend an amendment to the NAR Policy on Disaster Prevention, Relief and Insurance.

GOAL #3:
Climate Change: The Committee will draft and propose for adoption by the NAR Board of Directors an NAR Statement of Policy on Climate Change.

Actions to be taken by Committee to Achieve Goal:
- The Committee, working in conjunction with the Land Use Property Rights and Environment Forum, will hear from an array of experts about how the real estate sector could be affected by various climate change policy proposals.
- NAR staff will conduct appropriate research and report findings to the Committee.
- The Committee will form a subcommittee/working group for the purpose of exchanging ideas and information and acting as the lead for the development of the policy proposal. This may require additional meetings outside of the Mid-Year meeting and Annual Meeting.
- The Land Use, Property Rights and Environment Committee will work with other NAR Policy Committees, task forces and working groups as appropriate during the development of the policy proposal.

Expected Outcome: The Committee will develop and approve for consideration by the NAR Board of Directors a Statement of Policy on Climate Change to guide NAR's advocacy.

GOAL #4:
Other Critical Environmental Issues: Assist in the process of positioning REALTORS® and REALTOR® associations in the forefront of the legal and policy debate on environmental issues affecting real estate, including but not limited to: flood insurance, flood mapping, available and affordable property insurance, radon, lead-based paint, water quality and quantity, endangered species, the remediation of illegal drug manufacturing laboratories, property rights, and wetlands.

Actions to be taken by Committee to Achieve Goal:
-Committee develops policy as needed.
- Committee members report developments to full Committee at two annual business meetings (e.g., positive and negative experiences with public or private sector initiatives).
- As appropriate, Committee leadership/selected members accompany NAR staff to federal legislative and regulatory meetings.

Expected Outcome: Committee members are well-informed about policy developments in these and related policy areas. All environmental laws and regulations at the federal, state and local levels maintain a reasonable balance between environmental protection and economic vitality.

GOAL #5:
Utilize New Technology to Facilitate More Efficient Committee Operations: The Land Use, Property Rights and Environment Committee will, for the first time, use web-based technology to conduct committee business, facilitate committee and subcommittee meetings outside of the Mid-Year and Annual Meetings in an attempt to provide greater efficiency of operation and provide additional opportunities for REALTOR® involvement with the Committee.

Actions to be taken by Committee to Achieve Goal:
-The Committee will meet via WebEx once prior to the 2008 Mid-Year Meeting to conduct official committee business.
- One or more subcommittees will utilize WebEx technology to conduct meetings during the course of the year.

Expected Outcome: The Committee will operate more effectively and efficiently and provide additional opportunities for Committee members to interact with each other and NAR staff. The Land Use, Property Rights and Environment Committee will be recognized for its leadership and as a model for other NAR Public Policy Committees to follow.

IV . Update on Land Use, Property Rights and Environment Forum

Ned Massie, VA - Forum Chair

V. Update on the Smart Growth Program and Land Use Initiative

Joe Molinaro, Managing Director
NAR Smart Growth Programs

VI. Update on Legislative and Regulatory Issues

Mark Washko, Sr. Environmental Policy Representative (Legislative)
Russell Riggs, Regulatory Representative (Regulatory)

VII. Unfinished Business

NAR Policy on Water Resources

The National Association of REALTORS® supports healthy, clean and abundant supplies of water.

We support finding voluntary, market-based solutions to address excessive pollution and degradation of the nation?s waterways, while always being mindful of and vigorously defending, private property rights. We also support adequate federal funding for a well-developed system of water resources infrastructure and technology to ensure water quality and quantity nationwide.

We support the responsible use and management of our nation's water resources so that residential, commercial, and industrial development can proceed without degrading the nation?s water and without excessive regulatory encumbrances.

We believe that the development of a comprehensive federal water resources policy should take into account traditional state, local and private water rights, and uses. We pledge to cooperate with federal, state, and local agencies responsible for water resources to educate REALTORS®, their clients, homeowners, and consumers on water resource issues and the value and benefits of protecting water supplies.

VIII . New Business

Global Climate Change

IX. Committee Member Information Exchange

X. Adjournment

All Policies Under Jurisdiction of the Land Use, Property Rights and Environment Committee

CURRENT POLICIES
(as of the November, 2007 Annual Conference)

Agriculture and Foreign Trade

We encourage the gainful distribution and consumption of U.S. agricultural products both domestically and to foreign countries as a priority to any restriction in production. The agricultural contribution to a favorable U.S. balance of payments in foreign trade is critical. In conducting foreign policy, we urge the Federal government to recognize that agriculture produce embargoes and other trade limitations are counterproductive. Such restrictions to free trade typically create retaliatory moves and work against the export of our agricultural commodities.

We urge that when the issue of agricultural land protection is addressed, all economic factors and private property rights be fully considered before government agencies impose any restrictions on the foreign or corporate ownership or the conversion of agricultural land to non-agricultural purposes.

Status : Ongoing - Farm Bill is up for reauthorization in 2008.

Clean Air
We support the need to monitor air quality and maintain minimum standards of air quality that are based on verifiable scientific evidence. Individual state and/or local governments should have input into the development and application of federal clean air standards. Further, regulators are encouraged to examine and accommodate local diversity when defining federal guidelines.

We support the role of the federal government to: establish national ambient air quality standards for criteria pollutants and make findings on interstate air pollution issues that are based on verifiable scientific evidence; make findings on interstate air pollution issues that are based on verifiable scientific evidence; set minimum standards for emissions of hazardous air pollutants based on verifiable health risks; and establish minimum standards for emission from mobile sources.

Furthermore, we believe that individual states should be responsible for monitoring air quality and developing programs to attain and maintain clean air standards. States should be provided with adequate funding to carry out the minimum federal standards. State and local program standards which exceed federal minimum standards should balance air quality with economic development. Innovative solutions and market incentives are preferable to government imposed penalties and should be strongly encouraged.

Status: Ongoing - Clean air standards have been established. States are involved. Innovative cap and trade programs have been developed. Air quality has improved dramatically in many areas.

Community Development
REALTORS^®, as business people in their community, have a stake in the long term health of neighborhoods. Community revitalization is important to the development of a competitive local economy. The growth of local economies can be stagnated if new jobs and migration are not matched in terms of homeownership opportunities in attractive, viable neighborhoods.

Both the public and private sector have a mutual interest in maintaining their community and in making their neighborhoods a better place to raise a family, shop, work and invest. Homeownership leads to a greater interest in community affairs, better maintenance and a keener sense of neighborhoods. Thus, an interest in community development issues provides a stake in the community and in this nation's economic prosperity.

The NATIONAL ASSOCIATION OF REALTORS^® recommends that the following elements be incorporated in the design of local community development programs:

*Programs should meet community needs as determined by each locality -- whether inner city or rural, using measures such as existing community facilities, extent of poverty, economic growth, population changes and unemployment.

*Programs should have the objective of creating viable neighborhoods by providing economic opportunities.

*Programs should be directed toward the revitalization of neighborhoods including the preservation and development of housing and improved community facilities and services.

*Programs should encourage public/private partnerships whenever possible.
*We encourage the implementation of innovative development techniques, such as those modeled by NAR programs.

Status: On-going - NAR has created continuing programs such as Smart Growth and Housing Opportunity to address the challenges of developing Realtor-friendly community development activities.

Disaster Prevention, Relief and Insurance
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 comprehensive coverage for second homes, vacation homes and rental properties.

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.

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.

Status : Active and on-going - Legislation has been introduced to address the availability and affordability of residential and commercial property insurance. Legislation will also be introduced to reform the NFIP - including the phase-out of subsidies for pre-firm second homes. There is currently in law a program to reduce repetitive loss properties in the NFIP and there is an on-going program to improve the floodplain maps.

Endangered Species
We believe the way in which the Endangered Species Act (ESA) in implemented is of major importance. We support amendments to the Endangered Species Act that recognize socioeconomic considerations and provide safeguards to protect property rights in the manner described in the NAR Statement of Policy on Property Rights. In particular, revisions to the Endangered Species Act should address the following:

Incentives provided to private property owners for species protection rather than relying solely on restrictions and penalties.

A strict limitation on how far down the chain of sub-species will be allowed in listings.

Listings of threatened or endangered species and the designation of critical habitat based on verifiable scientific evidence.

Prompt notification to private property owners regarding potential species listings, and the proposed designation of critical habitat, which might impact their property.

Prompt notification to, and consultation with, relevant state and local agencies with jurisdiction over areas proposed for the designation of critical habitat and potential species listings.

Increased local involvement in creating and implementing recovery plans.

Incorporation of substantial equivalency provisions for states that currently have adequate legislation.

Express written permission of the property owner prior to implementation of a National Biological Survey of private property.

Independent peer review committees should review both the scientific evidence and economic impacts of all listings and all proposed designations of critical habitat.

Periodic review and expedited delisting of species, and removal of land from a critical habitat designation, when supported by verifiable scientific evidence.

A limit on the designation of critical habitat to areas currently occupied by the species, with the preparation of maps that specify the exact boundaries of the critical habitat designation.

The finalization of species listings only after critical habitat has been designated and after the required economic analysis has been prepared.

Status: Active and on-going - Legislation has been introduced in both Houses of Congress provide tax and fiscal incentives for landowners to protect species and habitat.

Energy
The free market system is the most appropriate means of attaining energy conservation and production goals. Increased conservation and domestic expansion and development of existing and new energy sources are essential to our nation's security and economic prosperity.

* We support continued efforts by the Federal government to remove regulatory impediments to the discovery, production, transportation, and sale of energy resources.

*We support the Federal government's role in contingency planning for severe energy supply disruptions.

* We support the role of the Federal government in joining with private enterprise to reach and develop alternative energy sources.

* We support the concept of positive incentives for conservation activities such as energy tax credits.

* We support increased emphasis on energy efficient technology by the nation's building industry.

* We believe that in order to maintain a healthy diversity in the economy the federal government should be particularly sensitive to the over regulation of our nations natural resources. The government should implement programs which will provide our nation with the natural resources needed to create affordable housing.

* We support state involvement in the development and application of natural resource reclamation laws. Further, regulators are encouraged to examine and accommodate local diversity when developing federal guidelines. In addition, financial assurance should be guaranteed in an effort to make certain that reclamation of land is completed.

Status: Active and on-going - With global climate change and the war in Iraq, energy issues are on the forefront of the national public policy agenda. This discussion will continue throughout the current Administration and legislative session. This is one area where NAR's support for "green buildings"could be recognized, both for energy efficiency and for climate change purposes.

Environment
Efforts to control pollution and to protect natural resources must be balanced with efforts to increase energy efficiency and independence and not unreasonably reduce economic activity.

We support the responsible use and management of our nation's water resources so that residential, commercial, and industrial development can proceed unencumbered in the future. States' water rights and regional customs as they have developed over the years should be considered by all levels of government.

We also recognize the importance of a well-developed infrastructure in ensuring adequate water quality and quantity.

We support a multiple use approach to the management of our nation's public lands and we oppose wide scale withdrawals of public lands for wilderness designation. We are particularly sensitive to those withdrawals and policies that reduce supplies for housing and increase costs of resources utilized in building construction.

We support federal legislation and regulation that encourage active forest management practices which will help return the ecological benefits of fire to our forested areas, bring balance to our nation's firefighting policies, and protect homes and communities in the wild land/urban interface. These practices may include - but are not limited to - forest thinning, fuel reduction, and strategic use of prescribed burns and wildfire suppression.

We support increased private sector management of public land in concert with this policy. The application of environmental laws and regulations should be coordinated with active forest management practices so as not to prohibit such practices on private as well as public land. We encourage better planning for the environmental and economic impacts on communities after wildfires have occurred.

We oppose those aspects of environmental and natural resource legislation that amount to uncompensated condemnation of private property through government actions. It is essential that private property rights, as defined in these policies, be fully recognized in local, state and federal programs and laws.

We oppose legislation or regulation which decreases access to natural resources, with the exception of environmentally-sensitive areas as identified by local, state or federal authorities.

We oppose legislation or regulation which prohibits the harvesting or export of timber from private lands.

Status: Active and on-going

Federal Ownership of Real Property
Current government real property acquisition practices have resulted in excessive amounts of private property being placed in the government estate. Federal property acquisition agencies have been authorized by Congress to acquire private property for parks, national forests, refuges and other purposes, often with dubious need, but have not been provided with the resources to compensate promptly landowners or adequately manage acquired lands.

Congress should reform the current federal property acquisition policy from the two-step authorization/appropriation process which has resulted in large authorizations with little expectation of timely appropriation of funds for actual purchase.

Furthermore, we believe that the Federal government should conduct a thorough inventory of its real property assets and dispose of those properties which are excess to government needs. Every federal agency holding real property should participate in this inventory and utilize private sector expertise in appraising, marketing, and financing property. An aggressive, responsible, and simplified real property disposal program, involving the private sector in transacting sales, will reduce federal property management costs, increase private property ownership opportunities, and help reduce our national debt.

In addition, NAR endorses the restoration of full funding of the Land and Water Conservation Fund (LWCF), provided that in states where less than fifty percent of property in the state is privately owned, funds should be used only for maintenance and development of properties currently managed by the LWCF; that any contemplated acquisition of properties using LWCF funds by either local, state or federal entities should only be accomplished with full public disclosure subject to open public debate, including written notice to interested parties; that any acquisition of property be from willing sellers only; and that any tax revenue lost from any land acquisition be offset by payments funded under the federal Payments in Lieu of Taxes (PILT) program.

Status: Active and on-going - Federal government acquisition of property is an on-going issue; the PILT program is critical for maintaining the tax roles of rural communities and has been reduced by 20% in the FY 2008 budget proposal.

Grazing Rights
We support the use of a market-based formula to determine the grazing fee charged to ranchers who graze their livestock on federal lands. Any reforms to grazing law should recognize the socioeconomic impact in states dependent on access to federal grazing land. We oppose confiscation of personal property improvements on the federal lands. We support national policy that would allow for privatization of certain prime grazing lands.

Status: on-going

Growth Issues
We recognize that growth is inevitable and that guiding and controlling it is an issue facing many areas of our country. We support planned growth that stimulates the economy, increases the tax base, provides places to live and work, and offers opportunities that would not otherwise exist. We also realize the responsibility we have to educate and work with local, state, and Federal government officials in developing responsible growth planning that is equitable and which considers the divergent needs of transportation, housing, agriculture, commercial, industrial, and environmental concerns. Government growth planning activities must take into account property rights in the manner described in the NAR Statement of Policy on Property Rights.

Status: Active and on-going - NAR has developed the Smart Growth program to help state and local associations address overall growth issues.

Hazardous Waste
Reauthorization or reform of the Comprehensive Environmental Response, Compensation and Liability Act (Superfund) should promote and support residential and commercial real estate development by including the following modifications:

A party responsible for generating waste should be responsible for the costs of its cleanup, where that party can be identified, but the Superfund should be the sole source of funding for the cleanup where the culpable party cannot be found or is unable to pay for the cleanup;

Parties that have acted prudently and legally at the time the waste was generated and/or disposed should not be subsequently held liable for cleanup costs, even if the Superfund statute is subsequently changed;

Clarification of certain definitions in the current law are needed. "Due care" should be defined narrowly to mean an absence of negligence. Clarification is needed in the terms "all appropriate inquiry" and "taking reasonable steps" to better enable individuals to utilize an innocent landowner defense. The term "imminent danger" also needs further clarification;

Clarification of provisions in the law to relieve innocent potentially responsible parties, including fiduciaries, lenders and intermediaries of liability when they are unknowingly involved in property transactions where hazardous waste has been generated, stored or disposed;

Retroactivity of the law should be limited to actual contamination which took place after amendments to the law in 1986;

The federal government should be required to join all potentially known responsible parties who are believed to have contributed to waste on a site, rather than placing this burden on the other parties to the action;

A proportional liability scheme should be incorporated into the law to insure fairness. The current system of strict, joint and several liability is unfair, often triggering second and third party litigation adding to costs to the litigants and taxpayers;

Physical identification of Superfund site boundaries before the nomination and listing of the area should be required.

The federal government should provide adequate funding for cleanup and redevelopment of our nation?s brownfields sites. Federal law should recognize the finality of successful state hazardous waste cleanup efforts by eliminating EPA authority to re-open completed cleanups.

Status: Ongoing - Superfund and brownfield laws and regulations have been passed and are in law. It would be helpful to know when this policy was adopted or last amended. The recently (during the Bush Administration) brownfields law addresses some of the concerns set forth above.

Indoor Air Quality
We believe that all Americans are entitled to enjoy an indoor living environment where risks to health and welfare from pollution are minimized. Increased efforts by both the private and public sectors should be encouraged to characterize and evaluate the extent of indoor air quality problems and to encourage the development of meaningful and affordable monitoring and mitigation strategies.

We support federal indoor air quality research and dissemination of the objective scientific results of that research.

We support efforts to educate homeowners as to their responsibility to identify and disclose to real estate brokers, agents and buyers any known environmental hazards, including mold. We support efforts by associations of REALTORS® to determine the desirability of disclosure language in listings, contracts of sale or other appropriate disclosure documents.

We urge all Americans who are in areas identified with high levels of radon to test their homes to determine if elevated levels of radon gas are present.

We support increased education of homeowners so that they will become aware of potential radon problems and of their responsibility to disclose to real estate brokers or agents indoor air problems that present a significant risk to health. We oppose nationwide mandatory radon testing at the time of transfer of real property.

Any regulation of asbestos in buildings should be based on scientifically-proven significant levels of exposure and hazard to the public. Such regulation should allow reasonable time periods in which to comply with regulations, provide flexibility in how to comply, require comprehensive training and certification for asbestos abatement contractors and laboratory technicians, and provide for a "prioritization" of regulation with respect to the particular hazard posed by certain building types and classes.

Status: On-going - Radon, mold, and asbestos have been addressed in the past.

Interstate Land Sales
Congress demonstrated in 1979 its intent to remedy many of the regulatory problems confronting land developers by amending the Interstate Land Sales Full Disclosure Act of 1968. The exemptions from registration enacted by this legislation were an obvious move toward curbing the scope and jurisdiction of the U.S. Department of Housing and Urban Development (HUD), which had surpassed the intent of the original Act. We urge that land developers continue to be aware of their responsibilities and options under the Act in order that the public remains protected.

Status: ongoing

Land Use
We believe in the fundamental right of all private property owners to determine the highest and best use of their land, working through appropriate governmental entities. We embrace the principles of smart growth as defined in NAR's 1999 Smart Growth PAG Report.

Programs of resource, land and historic preservation designed to protect drinking water resources, agricultural lands, wetlands, scenic vistas, natural areas, historic properties and open space, can have a positive effect on the quality of life and environment in towns, counties, and municipalities. Because land use laws and regulations enacted to protect and enhance these resources provide benefits to the general public, the costs should be borne accordingly. (See Property Rights section).

State and Federal governments should minimize their involvement in land use decisions and not withhold government grants and programs to enforce their policies.

We believe that local authorities, in close cooperation with their citizens, are ultimately responsible for managing growth and building better communities. We support federal and state incentives that provide tools to local governments to encourage collaborative regional planning as long as it supplements, rather than displaces, local control and decision-making.

Planning for the classification and use of land must adequately consider the needs of housing, agricultural, commercial and industrial growth, as well as quality of life and a healthy local economy. Land use planning should provide for a variety of housing types, mixes, densities and pricing to meet the needs of all segments of our population.

We shall continue to develop programs and seek legislation to help state associations and local boards achieve these objectives.

Status: Active and on-going - NAR has developed the Smart Growth program to help state and local associations address overall growth issues.

Lead-based Paint
Lead should be viewed as a public health issue. We support increased education of all homeowners about lead so that they will become aware of, and motivated to test for, potential health hazards. Legislative and administrative efforts should be directed at the general public, rather than focused on the real estate transaction and we strongly oppose any form of mandatory testing tied to the real estate transaction process. We support efforts to identify and reduce the potential health threat that the presence of lead may pose.

NAR supports inclusion of the following in legislation addressing residential lead-based paint hazards:

Single-family and multi-family sales of homes built prior to 1978:

A. Seller disclosure. Before entering into the sales contract, it is the responsibility of the seller to:

1. provide a lead hazard information pamphlet;
2. disclose any known lead paint or lead hazard in the premises, as well as, any lead inspection report of which the seller is aware.

Each sales contract must include a lead warning statement and a statement signed by the purchaser acknowledging that he/she has:

1. read and understood the lead warning statement in the contract;
2. received a lead hazard information pamphlet from the seller.

Premises may be tested only if mutually agreed upon by the parties. Placing the lead hazard warning and signature on a separate sheet is unnecessary, but the relevant section in the contract should be signed by the purchaser.

B. Leasing of Single and Multi-Family Properties:

The National Association of Realtors strongly opposes any form of mandatory testing tied to the real estate transaction process. A decision to test or not test should be left to the discretion of the lessor and potential lessee depending upon the circumstances in all cases lessee would have to provide lessor with a copy of the test results. NAR would not oppose legislation which included the following:

Lessors shall notify existing residential tenants of potential lead hazards on a property by providing them with a lead hazard information pamphlet. Lessor could choose to test, lessee could waive having testing done and assume the risk of remaining in the premises, or lessee could test at their own expense. If a lessee was concerned about lead hazards being present and the property either had not been tested or had been tested and was not certified as lead-safe, they could terminate the lease within a reasonable period of time. If the lessor complies with the above requirements, they would be considered relieved from liability.

Lessor shall provide all potential lessees with a lead hazard information pamphlet for properties constructed before 1978. In addition, every lease for a residential dwelling constructed before 1978 shall contain standardized lead hazard disclosure and warning language. The lessor and lessee would have three options available to them:

Lessee could waive any opportunity to have the premises tested;

Lessor could agree to test the premises at his expense; or,

Lessor could refuse to test the premises. In such cases, lessee could have the lead test done at their own expense. Lessee would retain the right to rescind a lease if the test results were positive. In all cases, lessee would have to provide lessor with a copy of the test results.

C. General concepts to be included in any lead legislation passed by Congress:

1. Recognizing that lead hazards are a national health issue and not a housing issue, in the event the United States Congress passes a law relative to mandatory blood testing for lead, the National Association of Realtors® would then support the position that sellers or lessors retain the option of requiring purchasers or lessees to provide copies of the latest blood test results of any children who are to occupy a property prior to its sale or lease.

2. NAR supports the goal of assuring that residential properties be made "lead-safe" rather than "lead-free".

3. NAR supports the "innocent owner" concept, to encourage owners to take voluntary action to eliminate lead hazards. The legal liability of the owner should be limited to the reduction of any lead hazard to a "lead-safe" level.

4. NAR supports the addition of language to the bill limiting the liability of sellers and lessors who comply with the bill's provisions. We support the addition of the following language: "A seller or lessor of residential property and/or their agent shall have no liability under this Act or any other provision of Federal, state, local or common law for any lead-related injury to any person resulting from occupancy of the premises sold or leased if the seller or lessor has compiled with the requirements of this Act."

Absent the addition of such a liability limiting provision, NAR would support amendments to federal, state and local Fair Housing laws to allow sellers or lessors to refuse to rent to families with children in cases where there are known lead hazards on a property which would place the child's health at risk.

5. NAR supports federal financial incentives and relief to encourage the abatement and/or encapsulation of lead hazards in residential premises.

6. NAR opposes making lead hazard testing a pre-requisite for qualifying for any federally-backed mortgage insurance or guarantee under FHA, Farmers Home Administration, Veterans Administration or any other governmental or quasi-governmental entity.

7. NAR supports the inclusion of legislative language prohibiting lending and insurance institutions from refusing to lend or grant liability insurance on properties solely because they may contain potential lead hazards.

Status: Active and on-going - NAR's language on disclosure was incorporated into law and statute. However, there are still on-going challenges regarding enforcement and possible broadening of the law.

Property Rights
Governments shall not arbitrarily infringe on the basic right of the individual to acquire, possess and freely transfer real property, and shall protect private property rights as referred to in the 5th and l4th Amendments of the United States Constitution.

We support legislative implementation of the 5th Amendment?s guarantee of compensation when property rights are taken. Every person should have the right to acquire real property with confidence and certainty that the use or value of such property will not be wholly or substantially eliminated by governmental action at any level without just compensation or the owner's express consent.

In addition, we support legislation which will provide property owners expeditious access to administrative and judicial systems at all levels - local, state and federal - to pursue Fifth Amendment takings claims or relief from other property rights violations.

We recognize the need for all levels of government to be able to exercise legitimate police powers in the regulation of private property to protect the health, safety and general welfare of its citizens. However, when government actions or regulations are not founded within legitimate police powers, the government should be required to pay compensation for the inordinate burden levied on the property owner.

The federal government should not establish criteria for the use of eminent domain by state and local governments. Each state should establish its own rules and laws governing eminent domain without interference from the federal government.

Likewise, when a government entity exercises its eminent domain power to condemn private property for public use, the government should provide - as required by the 5th Amendment - "just" compensation to affected property owners that covers not only the value of the property condemned but also all other reasonable and necessary costs generated by the condemnation action including, but not limited to, hiring legal counsel, obtaining temporary housing, lost business revenue, severance damages.

Furthermore, when a government entity exercises its eminent domain authority, it should do so only when necessary to materially advance a real public use. The government should provide persuasive, objective evidence that the project, and the resulting public use, will in fact be realized.

Status: Active and on-going - Property rights is a core value of NAR.

Wetlands
Recognizing the environmental significance of wetlands, we believe that any wetland legislation should include language to provide for:

A standardized definition for identification of wetlands which includes hydrophilic vegetation, hydric soils and hydrology, and which results in a program that focuses on important wetlands habitats;

A clearly defined permitting process which should improve the efficiency of the program, provide binding time limits for the agencies, and provide a guaranteed right of administrative appeal in order to reduce costly, unnecessary and contentious litigation;

A program which recognizes that all wetlands are not the same and classifies wetlands by their functions and values; the strictness of the regulatory requirements should be tailored to reflect the varying importance of these qualities;

The requirement that all authorities with wetlands regulatory powers notify affected property owners whenever wetlands inventories are to be conducted in their states;

The use of wetlands mitigation banking as a tool to both reduce the cost of compliance with mitigation requirements and to increase the effectiveness and environmental benefits associated with permitted mitigation activities;

A "single contact" wetlands regulation process which would eliminate the duplicity of dealing with multiple regulatory agencies.

Status: Active and on-going - legislation has been introduced in both Houses to remove the term"navigable" from the Clean Water Act. This would result in significant bureaucratic overreaching by the EPA and the Army Corps of Engineers.