Silicon Valley REALTORS® traveled to Washington, D.C. and joined more than 9,000 REALTORS® and guests from across the nation at the National Association of REALTORS® (NAR) Midyear Legislative Meetings & Trade Expo on May 13-18. They met with regulators, lawmakers and industry leaders to address critical real estate issues affecting individuals, communities, and the nation.
Members from the Silicon Valley Association of REALTORS® met with Anna Eshoo, U.S. Representative for California's 18th congressional district, which includes parts of San Mateo, Santa Clara and Santa Cruz counties; Jackie Speier, U.S. Representative for California's 14th congressional district, which consists of portions of San Mateo County and San Francisco; and Mike Honda, U.S. Representative for California's 17th congressional district, which includes portions of the East Bay, western San Jose and Silicon Valley.
Three following three issues presented by REALTORS® to their members of Congress centered on protecting the nation's housing recovery:
1. Restructure Fannie Mae & Freddie Mac and Encourage the Return of Private Capital. Members requested that the chairmen of the House Financial Services Committee and the Senate Banking Committee hold hearings that focus on restructuring the secondary mortgage market, and crafting comprehensive bipartisan legislation that resolves the conservatorship of Fannie Mae and Freddie Mac. They stressed an efficient and adequately regulated secondary market is essential to providing affordable mortgages to consumers; that the federal government must clearly offer a guarantee of some mortgage instruments; and that the government's guarantee should ensure a wide range of safe, reliable mortgage products for creditworthy consumers.
2. Preserve homeownership tax policies. As real estate markets continue to recover, Congress must first do no harm to the following:
• Mortgage Interest Deduction (MID): Oppose efforts to change or eliminate the mortgage interest deduction for primary and second homes. SILVAR REALTORS® said lawmakers should consider the vital role that the MID and other real estate tax provisions play in the nation's housing markets and economy, as well as the financial well-being of Americans and their families.
• Property Tax Deduction: Property taxes paid are properly not considered "income" that should be subject to federal income tax. Congress should not tax "income" that doesn't exist and oppose elimination of the deduction for property taxes.
• Capital Gains Exclusion for Sale of Principal Residence: Individuals can exclude the first $250,000 (and married couples the first $500,000) of gain from the sale of their principal residence from capital gains tax. This provision allows homeowners to build equity and save for retirement and should be maintained.
3. Preserve the Mission and Purpose of the FHA Program. SILVAR REALTORS® asked their representatives to ensure that the Federal Housing Administration (FHA) single-family
program has the tools and policies in place to meet its mission of access to safe, affordable mortgage financing to qualified borrowers nationwide. They asked that the legislators continue support for H.R. 1145 (Waters (D-CA), Capuano (D-MA)), which provides FHA with the flexibility to make necessary changes to the program, provides taxpayer protections against lenders who make errors of material fact, and improves program oversight. They asked Congress to also protect FHA from any further restrictive requirements that keep more people out of the program.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.