Real Estate Articles
Silicon Valley Realtors take homeownership concerns to the Capitol
Congresswoman Anna Eshoo listens as SILVAR President-elect Bill Moody explains REALTOR® concerns about proposals that limit the mortgage interest deduction (MID) and repeal the property tax deduction.
Realtor leadership from around the country converged in Washington, D.C. May 15-20 for the National Association of Realtors (NAR) annual legislative meetings, advocating on behalf of homeownership and private property rights. The delegation from the Silicon Valley Association of Realtors met with U.S. Representatives Anna Eshoo (D- CA 18th District), Jackie Speier (D-CA 14th District) and Ro Khanna (D-CA 17th District).
The Realtors covered a breadth of issues at these small group meetings, including tax reform, flood insurance, and the preservation of sustainable homeownership. On tax reform, Realtors urged members of Congress to preserve the incentives for homeownership in the new tax plan. Though no tax reform legislation has been introduced in Congress yet, Realtors are concerned about proposals being discussed.
Under proposals that limit the mortgage interest deduction and repeal property and local tax deductions, homeowners earning between $50,000 and $200,000 would see their taxes increase, whereas non-homeowners would see tax cuts of $516.
"We're concerned that any proposal that limits the tax incentives for homeownership would dramatically reduce the value of existing homes and lead to a decline in net worth for many, especially seniors," Denise Welsh, president of the Silicon Valley Realtors' group, told the members of Congress.
The leadership from the local Realtor group also advocated for a multiyear reauthorization of the National Flood Insurance Program (NFIP). Authority for the NFIP expires on September 30, 2017. If the program were to lapse, then the NFIP would not be able to renew policies in 22,000 communities and an estimated 40,000 property sales per month would lapse. Realtors are concerned the private sector cannot guarantee access to affordable flood insurance to the five million NFIP policy holders.
NAR has also put together a package of bills entitled "Protecting Sustainable Homeownership." Under this header is a bill to extend consumer disclosures to Property Assessed Clean Energy (PACE) companies. PACE loans are spreading in this region. Borrowers pay back debt borrowed to make environmental upgrades through their tax bill. These programs have been rife with abuse from contractors overselling what is needed, lack good disclosures to the borrowers, and have prepayment penalties. Lenders are also refusing to loan to homes with a PACE lien.
Included in this category is the Realtor proposal that guaranteed fees charged in government-backed loans be directed towards programs that support homeownership for the middle class, instead of using the funds for other government spending projects.
Realtors also oppose any suggestion to eliminate government-sponsored enterprises Fannie Mae and Freddie Mac. "We believe Fannie and Freddie should be reformed and not be under conservatorship. Without the ability to sell mortgages on the secondary market, the 30-year fixed mortgage would be eliminated for all but the wealthy," explained Welsh.
Joining Welsh at the meetings with members of Congress were Bill Moody, the local Realtor association's president-elect; Christ Isaacson, Region 9 chair; Carole Feldstein, federal political coordinator for Rep. Eshoo; Leannah Hunt, NAR director; and leadership from neighboring Realtor associations.
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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.
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