on Beacon Hill 2014 Legislative Agenda

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Randall Gardner
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The Massachusetts Association of REALTORS (MAR), a state affiliate of the National Association of REALTORS (NAR), comprises approximately 20,000 members in 15 local associations organized throughout

The Association represents all facets of the real estate industry and provides the administrative structure, resources, and collective unity required by its members for greater professionalism in

1 The Massachusetts Association of REALTORS (MAR), a state affiliate of the National Association of REALTORS (NAR), comprises approximately 20,000 members in 15 local associations organized throughout the Commonwealth. The Association represents all facets of the real estate industry and provides the administrative structure, resources, and collective unity required by its members for greater professionalism in business practice and increased effectiveness in service to the public. the 15 Local Associations which comprise the state Association are: Berkshire County Board of REALTORS Greater Boston Association of REALTORS Cape Cod & Islands Association of REALTORS Eastern Middlesex Association of REALTORS Greater Fall River Association of REALTORS Greater New Bedford Association of REALTORS Greater Newburyport Association of REALTORS North Bristol County Association of REALTORS Northeast Association of REALTORS REALTORS Commercial Alliance of Massachusetts North Central Massachusetts Association of REALTORS North Shore Association of REALTORS Plymouth & South Shore Association of REALTORS REALTOR Association of Pioneer Valley Worcester Regional Association of REALTORS REALTOR Day on Beacon Hill 2014 Legislative Agenda 1400 main street, Waltham, MA tel 781/ the voice for real estate tm in massachusetts

2 President s Welcome by peter ruffini 2014 Visits Feedback Form Name of the Legislator with whom you met. I m proud to be among you at one of the most important REALTOR events of the year REALTOR Day on Beacon Hill. Today, as you entered the Great Hall for our annual grass roots lobbying day, you made a giant step, not just for your profession and your Association, but for real estate advocacy. By helping show member support for our yearlong lobbying efforts, you put the strength of voters behind those efforts. This face-to-face lobbying might seem intimidating, but it is nothing more than taking the time to meet with your elected officials to discuss issues that are important to our industry and private property rights. Providing education and real life examples for the legislators before they cast their vote on an issue is a great best practice. It s also important to thank them for their past support on those issues important to us. This year s keynote presenter is Massachusetts Speaker of the House Robert De Leo. Speaker De Leo is a champion of homeownership and recently moved aggressively to help Massachusetts homeowners who were negatively impacted by changes to the National Flood Insurance Program. Other legislation that our organization is focused on includes supporting the regulation of secondary metals dealing to assist in preventing copper pipe theft, and opposing any legislation which creates room occupancy taxes on homeowners who choose to rent their homes. After the inspiring words from our keynote you ll hear briefings on these issues and more from MAR Legal Counsel to prepare you to join fellow REALTORS in meeting with your elected officials. And, we ve provided two essential take-away tools for you as well. This booklet is a handy guide on the current Bills and the Association s position on them; and the REALTOR R Lanyards you received at the start of the program will signify to everyone in the State House who we are and what we are here to discuss -- issues that impact homeowners statewide. Again, thank you for showing your commitment to our political and advocacy initiatives by your presence here today. I m proud to join you in these great halls as we voice our support for those initiatives. How many REALTORS were in attendance during your meeting? Does your member of the Legislature support Copper Pipe Theft Prevention: S.1929? YEs NO Does your member of the Legislature OPPOSE Local Imposition of Room Occupancy Tax: H.2689 (Provincetown), H.2695 (Wellfleet), H.2752 (Brewster) YEs NO Is there a need for MAR staff to follow up on any of these issues? (If so, please explain.) * Please complete and return to your local Government Affairs Committee Chair or Association Executive

3 realtors oppose: Land Use Reform as Drafted: H.1859/H.4065 An Act promoting the planning and development of sustainable communities Increasing the production of housing remains a top priority for the owners, developers and the real estate professionals we represent. Unfortunately, H.1859/H.4065 would have a significant negative impact on real estate development and affordability. MAR has been involved in the discussion of land use reform for many years. While we all recognize that our land use laws and regulations need to be updated and streamlined, we cannot support this bill for a number of reasons including: n This legislation does nothing to prevent municipalities from continuing the practice of imposing arbitrary and ad hoc mitigation requirements on development a practice that hinders and burdens the development of needed housing and commercial growth. n The authority for municipalities to impose mandatory inclusionary zoning requirements on individual developments does so without providing density bonuses or other incentives. n We also oppose the bill s elimination of the simple and cost-effective Approval Not Required (ANR) process, which would make it more expensive and complicated to undertake the development of new lots with frontage on existing roads. Status: Reported favorably by the Committee on Municipalities and Regional Government Action Needed: Ask your legislator to oppose H.1859/H REALTOR Positions on Issues REALTORS SUPPORT: S.1929 Copper Pipe Theft Prevention H.3783 Flood Insurance Reform H.2534/S.1368 mortgage Forgiveness Debt Relief H.3849 Appraisal Management Regulation H.3569 Debt Management Services Regulation REALTORS oppose: H.2689, Room Occupancy Taxes H.2695, H.2752 H.1859/H.4065 land Use Reform, as Drafted Statement of Philosophy The Massachusetts Association of REALTORS is dedicated to the right of the individual to own and freely use real property and to the extension of that right to every individual without exception. The Association is also dedicated to the free and full exercise of the bundle of rights (ie. possession, control, disposition, exclusion and quiet enjoyment) inherent in the ownership of real property and to the fullest possible enjoyment of the benefits conferred by these rights. The Association is further dedicated to the protection and preservation of the free enterprise system which provides the opportunity for fullest expression and enjoyment of the bundle of rights; the Association promotes an atmosphere of freedom for individual initiative, promotes free and open competition, and zealously safeguards human dignity by defending human rights. Finally, the Massachusetts Association of REALTORS is dedicated to the fundamental proposition of the National Association of REALTORS Code of Ethics to which every REALTOR swears allegiance that: upon the highest and best use of the land and upon its most widely allocated ownership depend the survival and growth of free institutions and of our civilization. legislative checklist 8 1

4 REALTORS support: Copper Pipe Theft Prevention: S.1929 An Act regulating secondary metals dealing Homes that have been stripped of their piping, wiring, and other fixtures are not only unattractive to prospective buyers, but also unmarketable for mortgage loan qualification purposes. This, combined with the safety issues caused by copper theft, hurt home values in the neighborhood. S.1929 seeks to halt and reverse this problem by creating a secondhand metal dealer registry, which would require scrap metal dealers to keep a log of information from all transactions. By giving the Commonwealth access to and the means for the sharing of necessary information, the incentive to strip houses for salvage metal will be greatly diminished. Second-Hand Metal Dealer Registry All Scrap Dealers must: a. Keep a log of information from all transactions (e.g. purchasing metal from walk-in customers): 1. Signed statement by seller as to his personal information; 2. Photocopy of a driver s license or similar government-issued ID; 3. Photo and record of weight of metal item received if valued over $250 (or notation of serial number, if present) b. Forward the information on item and seller to Criminal Record Review Board within 48 hours. c. Retain all metal items received for 10 days. Bill provides criminal penalties for providing false personal information, or for knowingly receiving stolen items. 2 Sponsor: Redraft of S.1929 filed by Sen. James Timilty Action Needed: Status: S.1929 passed by the Senate, awaiting action by the House of Representatives Ask your legislator to support copper pipe theft prevention. REALTORS oppose: Local Imposition of Room Occupancy Tax: H.2689 (Provincetown), H.2695 (Wellfleet), H.2752 (Brewster) These proposals would create a new tax on all homeowners who choose to rent their homes for less than 90 days. In addition to established businesses like hotels, motels, and bed and breakfast establishments, a city or town could levy a room occupancy tax on any apartment, single or multiple family house, cottage, condominium or timeshare unit. The collection, handling, and remittance of these taxes is something that private individuals are not familiar with, as it has never been required. Inadvertent errors in compliance could result in penal sanctions. This may cause many homeowners who rent to not report their rental income. For a community whose restaurants, galleries, and attractions derive significant revenues from thousands of visitors who utilize short term rentals, this tax will negatively impact these revenues as it will deter visitors, and seasonal rentals either will not be available to them or will become too costly. Status: Action Needed: Public hearing held on April 2, 2013; bills remain in Joint Committee on Revenue Ask your legislator to urge the Joint Committee on Revenue to oppose any Local Room Occupancy Taxes. 7 regulation of debt management services/ room occupancy tax/land use reform

5 REALTORS support: Regulation of Debt Management Services: H.3569 An Act relative to the licensing and supervision of debt management services in the Commonwealth This bill seeks to prohibit people from engaging in or advertising debt management services in the Commonwealth, unless they are specifically licensed to do so. This would bring much needed regulation that would protect vulnerable consumers from predatory practices. As originally drafted, the bill may have included real estate brokers who work with sellers on short sales. MAR, however, successfully advocated for an amendment that creates an exception for real estate brokers and salespersons working in this capacity. For this reason, REALTORS support the debt management bill as amended. Sponsor: Redraft of S.975 filed by Rep. Michael Costello Status: H.3569 passed by the House and currently before Senate Ways & Means Action Needed: Ask your legislator to urge the Senate Committee on Ways & Means to support H.3569 as amended. REALTORS support: Flood Insurance Reform: H.3783 An Act relative to flood insurance Until Congress enacts a long term solution to the flood insurance issue, homeowners may continue to see increases in their premiums. This bill, filed by Speaker Deleo and Attorney General Martha Coakley seeks to address the issue of affordability of flood insurance rates in Massachusetts. Specifically, this bill would prohibit a mortgage lender from requiring flood insurance at a coverage amount that exceeds the outstanding mortgage on the home. Although we recognize that the National Flood Insurance Program (NFIP) is federally regulated, it is crucial that, as one of the most affected states, Massachusetts does all it can to help protect the interests and homes of its residents. The combination of old housing stock, high cost of living and prominent coastline make flood insurance an essential but expensive aspect of a home. This legislation will go a long way to help protect Massachusetts homeowners from excessive flood insurance rates, and it will prevent foreclosures caused by unaffordable premiums mandated by the NFIP. Sponsor: Speaker of the House, Robert DeLeo Status: Passed by the House, awaiting action by the Senate Action Needed: Ask your Senator to support Flood Insurance Reform to prevent unaffordable, increased rate burdens on homeowners. copper pipe theft prevention / flood insurance reform 6 3

6 REALTORS support: Mortgage Forgiveness Debt Relief and Debt Cancellation: H.2534/S.1368 An Act relative to discharge of indebtedness of principal residence from gross income This bill would bring tax relief for homeowners when lenders forgive some portion of mortgage debt they owe. The general tax rule that applies to any debt forgiveness is that the amount forgiven is treated as taxable income to the borrower. This bill seeks to allow homeowners to complete loan modifications, short sales, and foreclosures without making them liable to pay state taxes on any debt that is forgiven, as they would on regular income. The Mortgage Debt Relief Act of 2007 (federal statute) generally allows taxpayers to exclude income from the discharge of debt on their principal residence on their federal tax return. This bill would mirror federal law and allow tax payers to make a similar exclusion on their state tax return. If this bill is not enacted, thousands of homeowners may be subject to pay state income tax on phantom income, meaning that they will owe taxes on money that they never actually received. Sponsor: S.1368, filed by Rep. Michael Costello & H.2534 signed by Sen. Mark Montigney Status: Accompanied Study Order Action Needed: Inform your legislator about the importance of this issue and the need for this legislation. REALTORS support: Appraisal Management Company Regulation: H.3849 An Act to regulate real estate appraisal management companies This legislation seeks to license and regulate appraisal management companies in a similar manner as appraisers are currently regulated in Massachusetts. Under the current law, a real estate broker providing a Broker Price Opinion (BPO) is expressly excluded from the appraiser regulations and therefore not required to be licensed as an appraiser in order to provide a BPO. This bill contains an important exemption that mirrors the exemption in the appraiser law to protect brokers providing BPOs. BPOs are regularly used by real estate brokers to help estimate the value of a property and to establish a listing price. A BPO is not an appraisal, which can only be performed by a duly licensed appraiser. MAR successfully advocated for an amendment to exempt both licensed brokers and salespersons from the bill. Sponsor: Representative Thomas Stanley Status: H.3849 passed by the House and currently before Senate Ways & Means Action Needed: Ask your Senator to urge the Senate Committee on Ways & Means to support H.3849 as amended. mortgage debt relief / appraisal management company regulation 4 5

PERSPECTIVE ON POLITICS

PERSPECTIVE ON POLITICS A Primer on How KAR Protects and Advances Property Rights Across Kansas 2018 Legislative Priorities We are the Kansas REALTOR Party: An energized movement of real estate professionals