Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 14, 1991 TAG: 9104120139
SECTION: AMERICAN HOME WEEK PAGE: 23 EDITION: METRO
SOURCE: GENNY ELIAS
DATELINE: LENGTH: Medium
The various realty associations - which include local associations, such as the Roanoke Valley Association of REALTORS; state associations, such as the Virginia Association of REALTORS, and the National Association of REALTORS - keep a close eye on any legislation that may pose a threat to home ownership and homeowners.
Walter Poff, current president of the RVAR, said these associations appoint representatives, called bill review members, whose sole purpose is to peruse proposed legislation for items that may adversely affect the sale of real estate.
"The Roanoke Valley Association of REALTORS sends a representative to Richmond to do nothing but review bills," Poff said. "That person watches for anything that would affect our industry - for bills about the wetlands, land use, and any of these types of things that can impact our industry directly or indirectly."
Any legislation found to be either threatening or beneficial will either be lobbied for or against by the association.
The associations also have review members at the local level whose main responsibility is to attend City Council and County Board of Supervisors meetings and keep an eye out for potentially threatening proposals. Especially those about money.
"When someone buys a house, the amount of cash they have to put down at the time of closing is very important and certainly makes a difference as to whether they can afford a house or not," explained Laura Benjamin, executive officer with the Roanoke Valley Association of REALTORS.
Poff agreed and added that even though the local, state and national associations have had success in the past in halting impact fees, transfer taxes and recordation fees as well as limiting assaults on mortgage-interest deductibility, these measures will haunt the associations again.
"Some of these fees are going to be back because municipalities see this as a way to fund some projects," said Poff, who serves on the legislative and political affairs committees of the Virginia Association of REALTORS as well as the political affairs and the political network communications committees of the National Association of REALTORS. "We (the associations) are going to continue to monitor any bills that are brought before the legislators that could be a problem for home owners."
Transfer taxes and recordation fees are charges tacked onto closing costs for the processing of documents from one property owner to another. The raising of these fees can limit the affordability of a home.
In regards to these two items, Poff said the VAR and RVAR's position papers say that transfer taxes and recordation fees place " . . . a major taxation burden on the buyers and sellers at the time of settlement and place an unreasonable burden on real property ownership and economic development. We urge the elimination of transfer taxes at all levels of government."
In one area in Maryland, Poff said, the associations saw recordation fees rise from a small amount to what equated to an additional $1,500 on top of closing costs.
Another fee monitored by REALTORS is the impact fee.
"We feel impact fees should not hamper or deter development in our communities," Poff said, referring to the association's position on these fees. "But, we do urge governments to limit any use of such fees to providing public capital improvement and development."
These fees, Poff said, should not be used to correct existing deficiencies. For instance, he said, an impact fee could be charged to extend water and sewer lines to a development, but should not be charged to repair a road already in need of repairs.
Poff also said the association is asking governments to look at reducing impact fees rather than increasing them.
The final area REALTORS watch closely is mortgage-interest deductibility on federal income tax forms. "The association of REALTORS on a national level spends a lot of time lobbying for this. About once a year, Congress threatens to do away with mortgage interest deductability and obviously that is one of the most important reasons most people own a home as opposed to renting," Benjamin added.
REALTOR Bill Gearhart agreed, saying "We've lobbied heavily during the last four years on this issues because it's so vital in home ownership."
Yet, this is another area legislators will consider as a means to raise funds as the budget crunch tightens, said Poff, adding that the associations will continue their efforts on behalf of home owners and potential home owners.
"What we're saying [to legislators] is that they're not going to tap the American home owner for all their funds," Poff said.
by CNB