VAR Brokers Digest

Dear Member,

With one-third of the 2008 General Assembly session now behind us, the pace and intensity of daily activities in Capitol Square is quickening.

Just as the last seven days brought us snow and colder weather, the warm and fuzzy promises of bi-partisan, non-partisan hugs and kisses are now in a deep freeze, with legislators and lobbyists rolling up their sleeves for the often rough and tumble two weeks before Crossover.

The past week witnessed fierce partisan clashes over gun control measures, mental health reform, the budget and collective bargaining.

While it has been an interesting (but very crowded) atmosphere, VAR was busy meeting with legislators, drafting amendments, positioning our legislation and beginning to see movement on bills that matter to you.

As you will read below, VAR is advocating for you by:

Protecting you and the way you do business;
Reforming the Property Owners' Association Act;
Protecting your consumers;
Protecting property owners;
Reforming the way localities pay for the strain of new development;
Protecting the fragile rental inspection programs that we forged after two years of intense lobbying, and
Ensuring that the legislature and the Governor manage concerns over the mortgage industry and the foreclosure fallout.

VAR legislative agenda sees movement in the House, the Senate and behind closed doors

Two pieces of VAR's legislative agenda passed out of their respective committees and onto the floors of the House and Senate earlier this week.

SB 158 passed the Senate Commerce and Labor Committee last Monday on a vote of 14-1. This bill defines Automated Value Models (AVM) and requires some form of disclosure. An AVM is an electronic method of determining the value of property, based on an online search of local government tax records and sales comparables. AVMs are not appraisals.

HB 1098 passed the House Commerce and Labor Committee last Thursday on a vote of 19-0. We look for its passage through the full House shortly.

We anticipate that several other pieces of the VAR legislative agenda will see movement this week.

They include our bills to correct the disclosure provisions that we passed in 2007 (HB1397), applying consistency to the recordation tax provisions (SB551), protecting landlords from unreasonable enforcement actions (HB 445), and protecting the LLC business model (HB 1114).

We are still in careful negotiations with legislators and other interest groups regarding the major pieces of the VAR legislative agenda.

A primary focus of our legislative efforts is to reform the Property Owners' Association and Home Owners' Association process between REALTORS®, your buyers, your sellers and their associations (HB1076). We have had good meetings with interested parties and hope to have a final version for legislators late in the week.

Additionally, we continue negotiations with the Virginia Trial Lawyers Association and their lobbyist regarding our efforts to define immunity for property managers and landlords regarding mold claims (HB 221 / SB 232).

Finally, we continue negotiations with local governments throughout the Commonwealth on how, why and when a local government should be able to rescind one's vested rights. We introduced a measure that will ensure protections of all of our vested rights from those localities who may think it proper to take them away (HB 1078).

Changes to proffers, impact fees, and the grantors tax in SB 768

In recent weeks you have heard about a proposal from the Home Builders Association of Virginia (HBAV) to do away with the cash proffer system, replacing it with impact fees while also increasing the grantors tax.

VAR's intentions have been clear from the first mention of this proposal. While we are willing to look at ways to reform the proffer system (most likely with the imposition of an impact fee), we oppose efforts to increase the grantors tax to offset the costs of new development.

Under SB 768, cash proffers authority would be removed, impact fees (capped at $8,000 in Northern Virginia and $5,000 elsewhere) would be imposed and the grantors tax would be tripled (taking it from $0.10 to $0.30 per $100 of value).

After an extensive discussion on SB 768, our position to oppose the grantors tax provisions was reaffirmed last Thursday evening in a meeting of VAR's Legislative Management Team.

We continue to work with legislators to see that those provisions are removed from the bill.

Mortgage industry reforms in the works

VAR is working with the legislature to ensure we pass appropriate measures to protect those who have been taken advantage of in the wake of the home mortgage meltdown, to prohibit practices that help no one and to strengthen regulations and enforcement actions within the industry.

VAR staff has been invited to take the lead in drafting legislation that will protect consumers from the vicious foreclosure rescue scams that are cropping up around Virginia.

In addition, VAR President-Elect John Powell was appointed by Governor Kaine to serve on his Foreclosure Prevention Task Force.

Regardless of whatever pre-emptive, quick-strike legislation that might pass in the 2008 session, Governor Kaine and the Virginia Housing Commission will be looking for more comprehensive regulatory and legislative fixes in the 2009 General Assembly session.

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

[REALTOR Day on the Hill Information]

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.