We are two months away from the start of the 2018 Legislative Session and things are beginning to take shape in terms of our legislative priorities and our major public policy topic areas. In fact, today marks the end of the third legislative committee week and with only two more to go before Jan. 9, you can bet that things are going to start moving at light speed.
At the same time, on the federal level, we have major tax reform proposals circulating that threaten the country’s housing market and could turn us into a nation of home renters instead of home buyers. NAR has an active Call for Action taking place and they need Florida’s help to make our voice heard in Congress.
We held a WebEx briefing event today to update you on both of these topic areas, and the feedback/questions we got during the meeting were excellent. This email will be a recap and follow up to that WebEx event so everyone is on the same page regarding these issues.
Federal Tax Reform Bill
We were honored to have Helen Devlin, Maggie FitzGerald and Evan Liddiard from NAR join us on the WebEx and fill us in on the problems the bills create for homeowners, Realtors and for the housing market in general. During their update, they reiterated how fast these bills are expected to move through Congress, particularly the House, and how we need to make our voice heard now if we have any chance of stopping them from passing.
To sum up their concerns in an elevator pitch:
“Homeownership is discouraged in this bill. Millions of homeowners get either a tax hike or a smaller benefit due to the homeowner specific changes in the bill. Owning a home becomes a penalty under this bill. All homeowners (regardless of how they file) will see a drop in their home equity (which is often their largest savings tool) as the overall housing market slows due to these changes. A 10% drop in housing equity NATIONWIDE, is significant. Homeowners pay 83% of ALL income taxes. And 68% of homeowners itemize.”
As far what we need to do to stop the bill from passing, the first and most important step is for as many members as possible to respond to the Call for Action so our collective voice becomes louder.
Additionally, Realtors can:
- Write letters to the editor in local outlets– Fill-in-the-blanks Letter to the Editor on Tax Reform & Fill-in-the-blanks Op-Ed on Tax Reform
- Have State & Local Presidents send letters to their Members of Congress stating their opposition.
- Send the Consumer CFA to neighbors and clients http://homeownershipmatters.realtor/.
- Increase the CFA rate with state and local advocacy pushes http://www.realtoractioncenter.com/for-associations/cfa-report/cfa-toolkit.html
- Share the CFA video on social media https://www.nar.realtor/videos/contact-your-representative-and-senators-about-tax-reform
- Use the attached resources to help educate everyone on the negative aspects of this bill.
Make no mistake, the tax reforms that are currently on the table are bad for homeowners, bad for Realtors and bad for the housing market. We need to act now if we want to protect the future of homeownership.
2018 Legislative Update
During the WebEx event we also discussed a variety of state legislative activities that we are keeping a close eye on. See below for what was discussed in these topic areas.
Housing Trust Funds
Representative Sean Shaw has filed House Bill 191, relating to the State Housing Trust Funds. This bill would prohibit the transfer of the funds included in the State and Local Government Housing Trust Funds from being transferred or used for any other purpose than housing programs. The Senate companion bill is expected to be released next week.
The Senate Appropriations Subcommittee on Transportation & Economic Development held a panel discussion on affordable housing. This subcommittee’s discussion included potential housing needs and current responses due to Hurricane Irma.
Finance & Tax
The House Ways & Means Committee introduced a Proposed Committee Bill (PCB WMC 18-01) which is a joint resolution that proposes an amendment to the state Constitution that would provide that no state tax or fee may be imposed or raised except through legislation approved by two-thirds of the membership of each house of the Legislature. The amendment would take effect on January 8, 2019, if approved by 60 percent of voters during the 2018 general election. There is no Senate companion bill filed for this PCB.
HOA Governing Docs Disclosure
HB 377, by Rep. Chalie Stone (R- Ocala), and SB 734, by Sen. Dennis Baxley (R-Lady Lake): The bill requires sellers of property located in a homeowner’s association to provide prospective buyers with the HOA’s governing documents, similar to the disclosure required when a condominium is sold. The bill has not been heard in committee yet.
Renters Insurance Disclosure
HB 467, by Rep. Bobby DuBose (D- Ft. Lauderdale), and SB 678, by Sen. Audrey Gibson (D-Jacksonville): The bill requires language be included in a lease to inform renters of the importance of renters insurance. If such insurance is required, the amount must be specified. If insurance is not required, the lease must include language encouraging the tenant to purchase renters insurance.
Assignment of Benefits (AOB)
SB 62, by Sen. Dorothy Hukill (R-Port Orange), and PBC JDC 18-01 (House Judiciary Committee): Neither the House nor the Senate AOB bills have been heard in Committee yet, but the House Judiciary Committee is scheduled to consider the PCB (Proposed Committee Bill) next week. On the Senate side, the Banking and Insurance Committee has devoted two meetings to AOB-industry panels, in the hopes of finding areas where the bill proponents and opponents can find agreement. A third committee meeting included a discussion regarding the Managed Repair programs that some insurers – including Citizens Property Insurance – have implemented to address non-storm related water claims.
De-Regulation Bill
HB 15, Rep. Halsey Beshears (R-Monticello), SB 526, by Sen. Jeff Brandes (R-St. Petersburg): The bill removes seven professions from DBPR regulation, and the hours of training required for licensure in five other professions is lessened. Real estate licensees and appraisers are unaffected. The House is likely to pass HB 15 during the first week of Session.
Governor’s Environmental Budget
On November 8th, the Governor’s office released a $1.7 billion environmental budget recommendation. Highlights include:
- $50 million for Herbert Hoover Dike repairs
- $55 million for springs protection/restoration
- $100 million for beach and inlet restoration
- $355 million for everglades restoration
Environmental Bills
The two main bills were filed this week: SB 786 and HB 339. These bills will direct $50 million a year for the restoration of the Indian River Lagoon. These dollars will be up for grabs for the counties surrounding the lagoon. The counties will be able to apply for these grant dollars which can be used for specific projects aimed at lagoon restoration. Another bill that moved this week is SB 370 (Rob Bradley) which will direct $100 million to the Florida Forever program. This program is used by state government to purchase environmentally sensitive lands.