ResalesNAR"s Weight Will Carry Its Legislative Goals
Despite the prospect for more government by gridlock, the politically
potent National Association of Realtors is confident it can muster the votes necessary to
pass many of its legislative goals when the 107th Congress convenes in January.
While it"s always difficult to predict what will happen during any
legislative session, if anything, lobbyists for the 760,000-member group which includes members from
all the real estate disciplines are looking at the upcoming two years as "fertile ground
for us."
"There wasn"t a big mandate" for housing-related issues in the most
recent elections, Jerry Giovaniello, a vice president in NAR"s government affairs department
admitted at the association"s annual convention, which ended yesterday in San Francisco. "But
it"s still an arena in which we can be successful because ours are mom-and-pop issues that are
right in the middle" of the political spectrum.
Outgoing President Dennis Cronk agreed. "Most of our issues are not for our own self-interest; they"re things that benefit home ownership," the Roanoke, Va.,
broker told a press briefing.
Another reason for NAR"s optimism is that it doesn"t have to return to square one in
explaining the issues to many new lawmakers. Indeed, only a handful of
incumbents lost their races earlier this month. And that, Giovaniello told NAR"s Federal Housing
Policy Committee, means "we know" the 99 percent who are returning to Washington.
"A lot of the Members coming back and many of those coming in are good
housing supporters," Cronk also told reporters, noting that his group"s political
affiliate, RPAC, spent $3.7 million in the last election cycle -- "the most of any political action
committee" -- to help elect housing-friendly legislators.
NAR"s "win rate" was an astonishing 95 percent, including nearly three
dozen real estate professionals, builders and developers. "There are a number of people in
Congress who understand our issues and will help us articulate our point of view to their
colleagues," the outgoing president said.
NAR"s 40-person public affairs staff plans to spend the next six to eight-weeks
"communicating our interests" with new members and new committee chairs,
chief lobbyist Lee Verstandig told reporters. "We plan to lay out our game plan early in 2001."
One issue on the group"s agenda is a permanent extension of the
streamlined downpayment calculation for FHA-insured mortgages.
NAR regards it as a "significant victory" that the simplified formula
was given a 27- month extension as part of the VA-HUD Appropriations Bill, "an achievement"
it says was accomplished "in the face of congressional inaction stemming from
election-year politics."
NAR is particularly miffed that even though the permanent extension was
part of a bill that passed the House by the widest margin of any housing legislation in the
last two decades, it was swamped in the Senate. But lobbyists promised their housing policy
committee members they won"t give up.
Also on NAR"s radar screen is an increase the veteran"s guaranty to $63,175, an amount
that would allow qualified vets to buy a home with a loan of up to $252,700.
The Senate approved the change under unanimous consent, but companion legislation has
not been introduced in the House.
While momentum for the increase "has slowed considerably," lobbyist Gary
Weaver said, supporters in both houses have "assured NAR staff" the legislation will be
addressed early in 2001.
NAR"s pet legislative project, cancellation of mortgage debt relief,
didn"t fly again this year, either. But it plans to try once more to change the law so that
financially troubled owners won"t be forced to pay income taxes on any unpaid loan balance that might be
forgiven by their lenders.
The NAR also advocates, among other things, the creation of FHA-insured
hybrid ARMs and other new mortgage products that reduce the cost of home ownership,
changes in the Low Income Housing Tax Credit formula that would make more credit available for
rental housing, and a thorough examination of HUD"s Homebuyer Protection Plan to determine
its effectiveness.