Nation

Nation

NAR PROMOTING AN AMBITIOUS 2006 LEGISLATIVE AGENDA
In 2006 NAR is advocating policy initiatives that will result in the continued creation of a fundamentally sound and dynamic U.S. real estate market. Since 2006 is an election year, and democrats are trying to take advantage of a republican party is some disarray, the 2006 NAR legislative agenda is ambitious.
(Issues in Alphabetical Order)

Affordable Housing Tax Credit
NAR is urging Congress to enact legislation providing a tax incentive in the form of a tax credit to developers and/or investors to enhance the supply of affordable housing that would be available for purchase.
Banks in Real Estate
NAR is urging Congress to enact H.R.111 and S.98, The Community Choice in Real Estate Act, to permanently bar banks from engaging in real estate brokerage, leasing and property management.
Do-Not-Fax Implementation
NAR worked with Congress in 2005 to enact the Junk Fax Prevention Act that safeguards REALTORS® from unfair and costly changes to their marketing practices. NAR is working with the Federal Communications Commission to assure that implementation rules do not exceed the intent of Congress.
Government Sponsored Enterprises Conforming Loan Limits
NAR is urging Congress to enact legislation increasing the conforming loan limits in high cost areas to bring equity for American families in these markets.
Government Sponsored Enterprises Reform
NAR is urging Congress to enact legislation promoting Fannie Mae’s and Freddie Mac’s safety and soundness while preserving their housing mission.
Health Insurance
NAR is urging Congress to enact Small Business Health Plan legislation.
Improving the Effectiveness of FHA
NAR is working with the Department of Housing and Urban Development (HUD) to modernize FHA to enhance its effectiveness in today’s mortgage marketplace.
Leasehold Improvements
NAR is urging Congress to permanently extend the 15-year cost recovery period for leasehold improvements.
Natural Disaster/Flood Insurance
NAR is urging Congress to enact legislation ensuring the availability of adequate, affordable homeowners' insurance to consumers in disaster-prone areas, and NAR is urging Congress to fully fund FEMA's flood map modernization program.
OCC Rulings Expanding Bank Powers
NAR is urging Congress to block OCC actions that permit banks to engage in commercial real estate development and merchant banking.
Real Estate Settlement Procedures Act
NAR is working with the Department of Housing and Urban Development (HUD) through participation in HUD-sponsored regional RESPA roundtables and other activities to ensure reform efforts do not have an onerous impact on the real estate industry.
Secondary Market for Commercial Mortgages
NAR is working with the U.S. Treasury Department to support real estate mortgage investment conduits (REMICs) reforms and is urging Congress to enact legislation modernizing REMICs.
Tax Reform
NAR is urging Congress to protect and preserve the mortgage interest deduction and homeownership/investment tax benefits from any efforts reforming the tax system.

NAR PRESIDENT MEETS WITH COMPTROLLER DUGAN TO DISCUSS OCC RULINGS
On February 16, 2006, NAR President Tom Stevens met with Comptroller of the Currency John Dugan to discuss three rulings issued by the Office of the Comptroller of the Currency (OCC) in December 2005 that NAR believes expand the authority of national banks to invest in real estate projects involving the development of office buildings, hotels, residential condominiums, and windmill farms. During the meeting, President Stevens explained the concerns of NAR's members that the expansion of bank authority is inappropriate and could lead to banks brokering and managing real estate. Comptroller Dugan strongly disagrees and believes that the rulings are consistent with law, regulation, and precedent. Shortly after the meeting, the Comptroller issued a statement emphasizing that none of the rulings have anything to do with real estate brokerage--a point not in dispute. The statement emphasized that national banks have "only limited legal authority" to engage in real estate and investment activities, and that the rulings do not breach the national policy against separation of banking and commerce.
WETLANDS CASES CHALLENGE SCOPE OF THE 1972 CLEAN WATER ACT
Enacted in 1972, the Clean Water Act has been leveraged by the U.S. Environmental Protection Agency (EPA) to extend federal authority over ‘isolated’ wetlands; in many cases to small manmade water sources that are substantial distances from ‘navigable waters’ or isolated natural water connected to navigable waters by manmade drainage. The U.S. Supreme Court recently heard two cases that could redefine federal authority under the Clean Water Act. John Rapanos of Michigan filled in 54 acres of wetlands without seeking a permit. Much of the land in question is 20 miles from navigable waters. Rapanos was fined $185,000 and placed on probation for three years. He appealed. Next, June Carabell, also of Michigan, owns 19-acres about one mile from Lake St. Clair but the property is connected to the lake by a series of manmade ditches. The property cannot be developed while under federal jurisdiction. The case seeks to have state and local regulation. Both cases involve property that is not directly linked to navigable waters. Rather, they are linked to tributaries that link to navigable waters. The Court’s decision this Spring could led to a dramatic shift is jurisdiction over isolated wetlands, marking a significant limitation to federal oversight.