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Russell W. Riggs

Senior Policy Representative

National Association of REALTORS®

Washington, D.C.

 April 9, 2015 

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Presentation Topics

Government Affairs and Advocacy: An Important

Member benefit

Legislative and Regulatory Issues Affecting theResort and Second Home Real Estate Sector

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NAR Government Affairs:

Important Member Benefit

Lobbyists, Research, Legislative Regulatory

RPAC – Largest in Country

Funds Raised through Dues Going to LocalGrassroots

Land Use Initiative

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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

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National Flood Insurance Program

(NFIP) Biggert-Waters Legislation passed in 2012 – 

Reauthorized NFIP through 2017

Reforms improved the financial and actuarialfoundation of the program, including: Maintain comprehensive coverage and program access

Eliminate subsidized insurance rates on properties withrepeated flood losses and claims and new policies

Eliminates rate subsides on older primary and secondhomes over 5 years

Reimburse appeal expenses when successfullychallenging a flood map

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NFIP, cont. BW 12 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 $500premium increase = $10,000 property value decrease

FEMA has been slow, unresponsive as it implementedBW 12

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NFIP, cont. Homeowners Flood Insurance Affordability Act – 

 Amends BW 12

Slows increases from earlier bill

Reinstates grandfathering

Improves appeals process

 Adds Surcharges

 Affordability Study, Privatization Study Discussions already underway for reauthorization

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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

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EB-5 Regional Center Pilot Program

The EB-5 Immigrant Investor Program encourages jobcreation 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. HR1616 would reform the program and make the PilotProgram permanent. NAR strongly supports thislegislation.

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Condo FinancingGSE’s, FHA and lenders have all tightened

lending standards

Stricter standards include owner occupancy,pre-loan sales, condo commercial space andcondotels

This impacts condo projects nationwide,especially resort areas

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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

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Tax ReformMID, 1031s, etc – all tax credits, incentives

are on the table

Strong letter with coalition of real estate anddevelopments organizations

On-going education on the importance of

MID, 1031sDiscussions on-going but no votes in 2015.

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Be sure to visit www.realtor.org for the most up-to-date information regarding the many policies

that affect the real estate industry and

REALTORS®, andhow NAR’s responding to these issues. 

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http://www.realtor.org/http://www.realtor.org/