VAR Brokers Digest

Dear Member,

Budget woes, proffer reform, payday lenders, and cats took center stage at Capitol Square last week.

Cats? Yes, cats. We'll get to that later....

As the Virginia General Assembly begins the fourth week of the 2008 Session and the rush towards Crossover, VAR finds itself on the cusp of moving the REALTOR^® legislative agenda forward.

VAR was successful in removing the grantor tax provisions from the Home Builders proposal (SB 768), and we now stand ready to help pass meaningful proffer reform.

Governor Kaine said last Wednesday that the budget faces a larger shortfall than the $641 million he projected before the General Assembly convened. Capitol insiders suggest that the shortfall could reach $1 billion. Kaine indicated that the state might need to make a larger withdrawal from its $1.2 billion "rainy-day fund" than the $261 million previously proposed.

The repeal of abusive driver fees was passed in both the House and the Senate last week, the constitutional resolution allowing localities to exempt up to twenty percent of your annual real estate taxes passed the House 96-0 last week, and yes, even a bill that will make it a Class 5 felony to steal a cat passed the House Courts Committee last week.

Among other big-ticket items on their agenda this week, legislators will grapple with electric utility pricing, the smoking ban and perhaps the most contentious issue we have seen in years, payday lending (and you thought we were going to say cat larceny).

VAR killed several initiatives that would have stalled residential growth. We also moved several bills through the House of Delegates and the Senate (with cat-like precision), while the majority of VAR bills will see action in the next two days.

One could say that as we head toward Crossover, REALTORS^® are perched like a cat ready to pounce. Think fierce cats, like lions or tigers.

Proffer reform moves forward

SB 768, providing for sweeping changes to the cash proffer system, passed the Senate Local Government Committee last Tuesday and now awaits action by the Senate Finance Committee.

As previously reported in Capitol Connections, this proposal was drafted for the Home Builders Association of Virginia and contained the following provisions:

Repealed the cash proffer system
Replaced cash proffers with impact fees
Capped impact fees at $8,000 per unit in Northern Virginia and $5,000 per unit in the rest of Virginia
Allowed impact fees to be applied on all "by-right" lots
Increased the grantor tax

VAR was able to remove the grantor tax increase, while keeping the rest of the proposal intact. VAR staff met with bill patron Senator John Watkins (R-Powhatan) and pledged our support for the amended version of SB 768.

VAR will pursue passage of the bill in its current form by the Senate. SB 768 then will move to the House of Delegates where we will work with the House Counties, Cities and Towns Committee on the specific provisions of the proffer reform.

REALTORS^® from across Virginia were instrumental in helping remove the grantor tax increase. You responded to our call-to-action in great numbers. Every member of the Senate Local Government Committee received e-mails from REALTORS^® in their district. Thank you for participating!

VAR legislative agenda sees action

HB 221, which will provide civil immunity relief to landlords and property managers for mold claims, passed the House Courts of Justice Committee last Friday. This legislation, a compromise between VAR and the Virginia Trial Lawyers Association, now moves to the full House of Delegates. We anticipate its passage by Thursday.

HB 1098, which clarifies that the definition of "settlement" does not apply to the contractual obligations between buyer and seller, passed the House of Delegates on a unanimous 99-0 vote.

Another measure reported from the General Laws Committee now awaiting House floor action is HB 720, an omnibus bill that makes changes in the landlord/tenant provisions to address various issues including:

*    service of notices;
*    use of electronic records by landlords;
*    rent with reservation notices; and
*    application fees.

SB 158, clarifying what lenders need to disclose regarding Automated Valuation Models, passed the Senate 40-0 last Monday.

SB 551, providing that recordation taxes were to be based on "stated consideration" versus the "actual value of the property" did not fare as well earlier this week before the Senate Finance Committee. The proposal was praised by several Senate Finance members, but due to unknown factors in the economy and local government budgets next year, the bill was carried over until the 2009 session. VAR will meet with the Virginia Municipal League and the Clerks Association in the spring to determine the next step.

The rest of the VAR legislative agenda will be heard in the next two days. We will be able to report on the outcome of each of the following bills next Monday.

House committee kills several "no growth" bills

Earlier last week, the House Counties, Cities and Towns Committee killed a number of bills that would have either significantly stalled residential growth or stopped it outright. Among them were bills implementing Adequate Public Facilities legislation, allowing proffers to be used for transfer of development rights (TDR) programs, allowing localities to stop issuing building permits based on rainfall estimates and impact fee provisions much different than the ones we are supporting.

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 the 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]

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 REALTOR^® 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.