Russell W.

Riggs
Senior Policy Representative
National Association of REALTORS
Washington, D.C.
April 9, 2015

Presentation Topics
Government Affairs and Advocacy: An Important
Member benefit
Legislative and Regulatory Issues Affecting the
Resort and Second Home Real Estate Sector

4/9/2015

www.realtor.org/resort

NAR Government Affairs:

Important Member Benefit
Lobbyists, Research, Legislative Regulatory
RPAC Largest in Country

Funds Raised through Dues Going to Local

Grassroots
Land Use Initiative

4/9/2015

www.realtor.org/resort

Legislative and Regulatory Issues

National Flood Insurance Program
H-2B Visa Program
EB-5 Regional Center Pilot Program
Condo Financing Challenges
Proposed Water Regulations
Tax Reform

4/9/2015

www.realtor.org/resort

National Flood Insurance Program

(NFIP)
Biggert-Waters Legislation passed in 2012

Reauthorized NFIP through 2017

Reforms improved the financial and actuarial
foundation of the program, including:
Maintain comprehensive coverage and program access
Eliminate subsidized insurance rates on properties with

repeated flood losses and claims and new policies

Eliminates rate subsides on older primary and second
homes over 5 years
Reimburse appeal expenses when successfully
challenging a flood map
4/9/2015

www.realtor.org/resort

NFIP, cont.
BW12 was well-intentioned, BUT
Affordability
Will higher rates make some properties unaffordable?
Unintended Consequences
Rates going from $500 to $10,000 and possibly higher
did Congress really intend this result?
Disclosure/Liability Concerns
Loss of Property Values According to Rand, a $500
premium increase = $10,000 property value decrease
FEMA has been slow, unresponsive as it implemented
BW12
4/9/2015

www.realtor.org/resort

NFIP, cont.
Homeowners Flood Insurance Affordability Act

Amends BW12
Slows increases from earlier bill
Reinstates grandfathering

Improves appeals process

Adds Surcharges
Affordability Study, Privatization Study
Discussions already underway for reauthorization

4/9/2015

www.realtor.org/resort

H-2B Visa Program

Resort areas needs these seasonal workers for

operations/maintenance
Workers allowed only after employers try to fill jobs
with Americans
Coordination with DHS, other federal agencies
Not an immigration program, but is caught up in the
broader debate

4/9/2015

www.realtor.org/resort

EB-5 Regional Center Pilot Program

The EB-5 Immigrant Investor Program encourages job

creation and investment by foreign investors.

Investments + jobs = a permanent green card
Foreign investors invest through a Regional Center,
which promotes economic growth and job creation.
Since 2003, EB-5 Regional Centers have invested over
$3.1 billion, creating over 65,000 jobs.
EB-5 Regional Center Pilot Program expires 9/15. HR
1616 would reform the program and make the Pilot
Program permanent. NAR strongly supports this
legislation.
4/9/2015

www.realtor.org/resort

Condo Financing
GSEs, FHA and lenders have all tightened

lending standards
Stricter standards include owner occupancy,
pre-loan sales, condo commercial space and
condotels
This impacts condo projects nationwide,
especially resort areas
4/9/2015

www.realtor.org/resort

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Condo Financing NAR Action

Current policy directs NAR to address all issues

associated with housing finance including condo

financing
In all meetings and communications with FHA, GSEs
and lenders, condo financing concerns are raised
NAR has raised this issue numerous times in
testimony before Congress over the past year
NAR has received certification from the GSEs
regarding the waiver and appeals process
GSEs have also responded positively to our request to
streamline regulations
4/9/2015

www.realtor.org/resort

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Waters of the U.S.

CWA regulates Navigable waters EPA/Corps
want to regulate all waters
EPA/Corps of Engineers Prop. Reg at OMB
Includes waters now excluded from CWA
Comments closed end of 2014 over 1 Million
NAR opposed: Only Congress can decide
Work with broad coalition of stakeholders
Congressional Approps. Strategy
4/9/2015

www.realtor.org/resort

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Tax Reform
MID, 1031s, etc all tax credits, incentives

are on the table

Strong letter with coalition of real estate and
developments organizations
On-going education on the importance of
MID, 1031s
Discussions on-going but no votes in 2015.
4/9/2015

www.realtor.org/resort

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Be sure to visit www.realtor.org for the most upto-date information regarding the many policies
that affect the real estate industry and
REALTORS, and
how NARs responding to these issues.
4/9/2015

www.realtor.org/resort

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