Leadership from the Silicon Valley Association of Realtors and members of the Realtor association's legislative committee met with U.S. Representative Anna Eshoo last Wednesday at her Palo Alto office and discussed federal priorities during the summer recess. These included the cap on state and local taxes (SALT), mortgage interest deduction, flood insurance, and several other topics related to the Federal Housing Administration (FHA) and how to support homeowners.
Eshoo said the good news is flood insurance under House Resolution 3167, the National Flood Insurance Program Reauthorization Act of 2019, would be extended for five years and include funding to update flood maps and modernize the program. H.R. 3167 has cleared House committees and is awaiting a vote on the House floor.
Eshoo also expressed an interest on how mortgage financing could be eased and homeownership made more affordable to first-time homebuyers. H.R. 3141, the FHA Loan Affordability Act of 2019, would require FHA borrowers to pay mortgage insurance premiums only when their remaining principal balance exceeds 78 percent or more of the home value or sales price.
Greg Boudreau, manager of the Los Altos Coldwell Banker Residential Brokerage office and chair of the local association's Los Altos-Mountain View District, shared how a client of his refinanced and now had over 30 percent equity in their home, but would be required to pay mortgage insurance over the next 11 years. This would increase his client's financing costs significantly.
Eshoo shared further information on H.R. 257, the SALT Fairness Act, a bill she co-sponsored, which aims to reinstate the deductions that were lost during tax reform. "My highest rated tax priority for the 116th Congress is repealing this cap and providing tax relief to my constituents," said Eshoo. "The SALT deduction is one of the few deductions in the federal tax code that middle class families depend on, along with deductions for medical expenses, charitable contributions, and mortgage interest. Capping SALT deductions represents an assault on the middle class, and raised taxes on one million California taxpayers."
H.R. 257 was introduced on a bipartisan basis and is awaiting committee action. "Seldom does a bill impact so many of my constituents, and on average it costs homeowners in my district over $50,000 on an annual basis," said Eshoo. "The middle class is the backbone of America and federal tax policy should not be raising taxes on these hardworking families."
Eshoo represents U.S. Congressional District 18, which is located between the cities of San Francisco, Santa Cruz and San Jose, and includes portions of San Mateo, Santa Clara and Santa Cruz counties.
Also meeting with Congresswoman Eshoo were SILVAR president-elect Mary Kay Groth (Sereno Group), Region 9 chair Denise Welsh (Compass), National Association of Realtors director Leannah Hunt (Sereno Group), Federal Political Coordinator for Congresswoman Eshoo Carole Feldstein (Coldwell Banker), Palo Alto District chair Lynn Wilson Roberts (Pacific Union International Real Estate), Los Altos-Mountain View District LC chair Barbara Williams (Compass) and Menlo Park-Atherton District LC chair Chris Isaacson (Coldwell Banker).
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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