VAR Brokers Digest

Dear Member,

From taxes to contracts to transportation, the real estate market is profoundly affected by Virginia's legislature. Every Friday during the General Assembly session, VAR brings you Capitol Connections: a comprehensive and concise summary of the previous week's legislative actions affecting REALTORS®, property owners and prospective buyers. VAR encourages you to stay informed about the legislative process for the sake of your business and your clients.

Back to basics: VAR advocates for traditional REALTOR® issues in 2008 General Assembly

Wednesday, January 9th, marked the start of the 60-day 2008 General Assembly session and a dramatically different landscape for Virginia's legislature. Democrats now control the Senate while Republicans maintain leadership in the House of Delegates. A tally of losses and retirements finds 19 new members of the Virginia General Assembly warming seats in the newly refurbished State Capitol.

The shift in power created by retirements and a new Democratic majority in the Senate is most noticeable in committee leadership. For REALTORS®, two of the most beneficial leadership changes are Sen. Louise Lucas (D-Portsmouth) who now presides over the Senate Local Government Committee and Del. Terrie Suit (R-Virginia Beach) who chairs the House General Laws Committee. Both Lucas and Suit have proven their commitment to the REALTOR® profession in recent years.

The legislative power shift increases the likelihood of legislative stalemates between the House and the Senate in the months ahead, particularly given the looming state budget decisions marking this "long session."

As we look towards the next 60 days, issues affecting Virginia's real estate industry include:

Lower than expected tax revenues foreshadow tough decisions for legislators

Like many other states, as Virginia's tax coffers continue to fall short of forecasted growth estimates, legislators face extraordinary pressures to produce a balanced budget.

According to Secretary of Finance Jody Wagner, there is an estimated $680 million "hole" in current budget estimates. Members of the House Appropriations and Senate Finance committees have the unenviable task of creating a sustainable budget under these pressures.

Why have budget estimates missed their mark?

The 2008 General Assembly will again focus considerable attention on the Commonwealth's transportation needs. In 2007, Governor Kaine signed into law H.B. 3202 a transportation bill that included regional authorities in Northern Virginia and Hampton Roads to raise funds for transportation projects in those areas, an increase in the grantors tax and additional revenue from so-called "abusive driver fees."

Even with the passage of HB 3202, transportation (most notably the abusive driver fees) was a key campaign issue in the 2007 election and likely cost several incumbents their seats in the House and the Senate.

What will the 2008 General Assembly do about transportation?

[Read More]

REALTORS® go back to the basics

Through the strength of your relationships with members of the General Assembly, RPAC and our lobbying efforts in 2007, VAR was able to be intimately involved in reforms to transportation, eminent domain and growth planning. In addition, we also guided legislation to significantly reform the residential property disclosure/disclaimer forms and to increase educational requirements for our brokers, ensuring better-educated brokers who are better prepared to tackle increasingly complex markets and transactions.

VAR returns to more traditional issues in its 2008 legislative agenda. We are introducing several pieces of legislation to advance your interests and those of your clients. Perhaps the most significant challenge we face this year is the over-reliance on real estate taxes to finance government services.

Over-reliance on proffers and real estate taxes diminish Virginians' pursuit of the American dream

The Virginia Association of Home Builders has recommended that the General Assembly remove the cash proffer system in Virginia and replace it with an impact fee. Their plan would extend the impact fee to all zoned but undeveloped land, implement a cap on the amount that could be assessed, and require localities to dedicate the funds for the new or anticipated infrastructure derived from the new development.

VAR will continue to support replacing the cash proffer authority with an impact fee.

The Home Builders have also proposed raising the grantor tax in localities where the impact fees would be effective and dedicating those tax revenues to new and existing infrastructure.

[Read More]

Your voice is VAR's strength

When REALTORS® come knocking, your legislators listen!

Here's the best way to hold your elected officials accountable for their votes on issues that matter to REALTORS® and Virginia property owners: pay them a visit on their turf in Richmond.

On February 13, join forces with hundreds of REALTORS® from all across the Commonwealth to show lawmakers the strength of your profession and your convictions.

REALTOR® Day on Hill is your once-a-year opportunity to demonstrate Virginia REALTORS'® collective political strength. Visit with your legislators and brief them on VAR's legislative agenda, then later, join your Delegates at the Jefferson Hotel for VAR's 2008 Legislative Reception.

And most REALTOR® Day on the Hill events are FREE for VAR members. All it costs you is an investment of your time...an investment with a valuable return.

February 13: REALTOR® Day on the Hill Schedule

8:30 a.m. Briefing on REALTOR® Issues (Richmond Omni)
9:30-11:30 a.m. Capitol Hill Visits (General Assembly Building)
12 p.m. 2008 RPAC Kick-Off Luncheon (Richmond Omni)^*
2:30-4:30 p.m. Governance Meetings & Conference Sessions (Richmond Omni)**
6 p.m. Legislative Reception (The Jefferson Hotel)

Make the most of your trip to Richmond by staying for VAR's 2008 Legislative & Education Conference, February 12-15 at the Omni Hotel. Experience first-rate professional development and networking, earn CE/PL/BM credits, and get the latest legal and risk management updates. Visit VARealtor.com/LegislativeConference for information. Register online and save $20!

* Ticketed Event

**Requires registration for the Legislative and Education Conference

Your influence reaches to Governor Kaine

Governor Tim Kaine addresses REALTORS at VAR's 2008 Legislative and Education Conference during the "Together We Can" send-off breakfast. In the wake of the current mortgage fallout, speculation about the Virginia's economy, and wide array of forecasts about tomorrow's market, Kaine will share his executive viewpoint on what REALTORS^® should know about the current state of the Commonwealth.

Want to be part of our team?

There are three easy ways to make the REALTOR® voice heard during this General Assembly session:

1) Be a key contact. If you're on a first-name basis with a legislator, please contact Blake Hegeman (bhegeman@varealtor.com) to join our list of key contacts. As a friend of an elected official, you are one of VAR's best resources when we are trying to communicate our key messages.

2) Respond to Calls to Action. Periodically throughout the session, you may receive e-mail alerts asking you to contact your legislators on an important REALTOR® issue. The more members who respond, the more impact we have on getting our issues through - or keeping harmful legislation from passing.

3) Attend Day on the Hill on February 13th! Join your fellow REALTORS® and speak with your legislators in person about the issues that matter to your business. Following the day's events, be sure to attend our Legislative Reception to meet and mingle with state lawmakers at the Jefferson Hotel.