resort policy update/townhall meeting

8/2/2019 Resort Policy Update/Townhall Meeting

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Russell W. Riggs

Senior Regulatory Representative

National Association Of REALTORSWashington, DC

March 20, 2012

Kiawah Island, SC


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Presentation Topics

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1. 2011 Investment and Vacation Home Buyers

Survey

2. Government Affairs and Advocacy: AnImportant Member Benefit

3. Legislative and Regulatory Issues Affecting

the Resort and 2nd Home Real Estate Sector


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2011 Investment and Vacation

Home Buyers SurveyMethodology:

Online panel

Based on representative panel of U.S. households

1,895 households respondedrepresents 1,926 home

purchases

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Share of Home Sales


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Share of Sales 2010-2003


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Age Vacation and Investment Buyers 2005-

2010


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Income Vacation and Investment Buyers 2005-

2010


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How Buyer Purchased the Home


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Investment and Vacation Buyers Used a

Mortgage 2007-2011


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Outlook of Buyers

52% of investment buyers and

34% of vacation buyers are likely

to buy again in the next 2 years

80% of vacation buyers and 77%

of investment buyers think its a

good time to purchase real estate


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NAR Government Affairs:

Important Member Benefit

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- Lobbyists, Research, Legislative

Regulatory- RPAC- Largest in the Country

- Funds Raised Through the Dues

Increase Going to LocalGrassroots

- Land Use Initiative


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Legislative and Regulatory Issues

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- National Flood Insurance Program

- H-2B Visa Program

- VISIT-USA Act

- Property Insurance

- Condo Financing Challenges

- Sackett vs. EPASupreme Court Case


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National Flood Insurance Program

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- NFIP authorized until May 31, 2012

- Still working on long-term reform/reauthorization bill

-Mid-Year Talking Point and a CFA

- Contentious Issues Will Include:- Subsidies and Map Updates


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H-2B Visa Program

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- Resort Areas Need These Seasonal Workers forOperations/maintenance

- Workers Allowed Only After Employers Try toFill Jobs W/Americans

- Coordination with DHS, other federal agencies

- Not an immigration program, but is caught up inthe broader debate

-Recent Rule would have caused big problems

NAR opposed and Congress Stopped it


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VISIT USA ACT

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- S. 1746Schumer (D-NY) and Lee (R-UT). Bill creates two real estate-

related visas.

Creates Canadian retiree visa that would allow Canadians older than 50 years

of age who own a U.S. home or have a signed lease for the time of their

proposed stay to obtain a non-immigrant resident visa.

Canadian Visa would allow retiree, spouse, minor children to spend up to

240 days, living in the U.S.

Creates a non-immigrant visa for those who make at least $500,000 cash

purchase of a residence in the United States.

If more than one property is purchased, one must be listed as their primaryresidence.

This visa would allow the individual, their spouse and minor children to live

in the U.S.

Bill does require the visa holder to spend at least 180 days in the states.

This Does Not Create a Path for Citizenship


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VISIT USA ACT

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Internal NAR Working Group Has Been

Appointed

Both Schumer and Lee Have Expressed

Interest in NAR Perspectives and Making

Appropriate Changes

Passage Will Be Difficult in Current PoliticalEnvironment


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Affordable and Available

Property Insurance

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- Property insurance premiums have

increased in many areas

-Availability has decreasedInsurers are

pulling out of markets, increasing premiums

and not renewing policies.

- These circumstances impact housing

affordabilityespecially in resort areas.


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Current Approaches to Resolve the

Problem

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- Combine Wind/Flood Ins.

-Federal guarantees

- Tax Credit

- Blue Ribbon Commission


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Condo Financing- GSEs, FHA and lenders have all

tightened lending standards

- Stricter standards include owneroccupancy, pre-loan sales, condo

commercial space and condo-tels

- This impacts condo projects

nationwide, especially resort areas


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Condo Financing

NAR Action- Current policy directs NAR to address all issues

associated with housing financeincluding condofinancing

- In all meetings and communications with FHA, GSEsand lenders, condo financing concerns are raised

- NAR has raised this issue numerous times intestimony before Congress over the past year

- NAR has received clarification from the GSEsregarding the waiver and appeals process.

- GSEs have also responded positively to our requestto streamline regulations

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Sackett vs. EPA Supreme Court on when homeowners are allowed to take

EPA to court

Oral arguments held on Jan. 9, 2012

NAR submitted an Amicus Brief in support of the Sacketts Sacketts were building a house on Priest Lake but were

stopped by EPA because of wetlands

Justices were sympatheticCan you imagine this

happening in the United States. Justice Alito Decision is anticipated late spring

Why is this Important? Case will test the scope of EPA

authority under the Clean Water Act.21

resort policy update/townhall meeting

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