Several real estate issues to come before state legislature

It could be a busy legislative session for REALTORS® as the House and the Senate both are expected to address several issues that affect the real estate industry.

Housing Trust Fund

One of the first issues up in the New Year is the PA Housing Trust Fund. The House is scheduled to vote on legislation creating the PA Housing Trust Fund in the next several weeks, according to Jennifer Shockley, PAR assistant director, government affairs.

PAR has worked with several organizations to establish the Housing Trust Fund, which would allow the PA Housing Finance Agency to develop programs to build, rehab and preserve homes specifically for low- to moderate-income individuals and families, seniors and people with disabilities.

Letters supporting House Bill 60 (Daley, D-Fayette) will be sent from PAR to representatives. While the bill outlines the creation of the trust fund, it does not include state funding, however it’s expected that once the fund is in place, Pennsylvania would be able to receive federal money from the national housing trust fund.

Sprinkler System Mandate

PAR is working in coordination with the PA Builders Association (PBA) to amend pending legislation to remove codes requiring sprinkler systems in multi-family units and single family homes, according to Elizabeth Hensil, local affairs specialist.

Since enactment of new regulations, all multi-family units being constructed after January 1, 2010 are required to have sprinkler systems; new single-family residences will be required to have sprinklers as of January 1, 2011.

Last week, the PBA filed suit against the PA Department of Labor and Industry opposing the implementation of the 2009 Uniform Construction Code (UCC).

Appraisal Management Companies

The House is expected to introduce draft legislation addressing appraisal management companies (AMCs) in the near future, according to Sylvia Lacerda, government affairs specialist.

As a result of the Home Valuation Code of Conduct (HVCC), many lenders have increased their use of appraisal management companies, which are unregulated entities in Pennsylvania.

PAR’s task force collaborated with Rep. Dick Stevenson and members of the Appraisal Institute to draft legislation to address key concerns which have surfaced as a result of the HVCC. The task force also met with the PA Bankers Association and members of the AMC community.

Some highlights of the proposed legislation include: requiring AMCs to register with the State Board of Certified Real Estate Appraisers, implementing registration and renewal fees of $1,000 and defining the term appraisal management company and appraisal firms.

Governor’s Proposed 2010-2011 Budget

The proposed state budget is scheduled to be presented by Gov. Ed Rendell on February 9.

“We haven’t received any indication as to what will be included in the new budget,” Shockley said. “But given that actual revenue is below estimate in most areas, it’s expected that the state will be searching for any viable revenue source available.”

Given the lengthy approval process last year, it’s anyone’s guess as to when the budget will be approved this year.

Related posts:

1. House expected to vote on Housing Trust Fund next week
2. REALTORS® say ‘no’ to state tax on services
3. PAR testifies about AMCs before state House

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Tags: appraisal management companies; sprinklers, budget, housing trust fund, legislation

This entry was posted on Friday, January 22nd, 2010 at 6:00 am and is filed under Association News, Government Affairs. You can follow any responses to this entry through the RSS 2.0 feed.