Front Page Articles
REALTORS® Descend on Capitol to Lobby Lawmakers
by Michael Theo
Limiting property tax increases, revising telemarketing rules, protecting the Smart Growth law, and modernizing laws governing real estate transactions was the message over 300
REALTORS® brought to lawmakers last week at the annual REALTOR® and Government Day in the state capitol.
REALTOR® and Government Day brings REALTORS® from all corners of Wisconsin to Madison to meet with their state legislators to discuss key pending issues that directly impact
REALTORS®, homeowners and businesses in the state. This year's keynote speaker was Wisconsin's new governor, Jim Doyle. Doyle spoke on the importance of housing and the real estate market, and the need to grow Wisconsin's economy and jobs. His remarks were warmly received.
Attendees also heard from the new Executive Director of the Wisconsin Housing and Economic Development Authority Antonio Riley. Riley spoke of Wisconsin's housing needs and provided keen insights on how his agency can help expand housing opportunities in the state, particularly "workforce" housing and financial lending practices for housing loans.
The highlight of the day was lunch between REALTORS® and their state legislators and meetings in the Capitol with legislators and staff. At these meetings,
REALTORS® delivered the following messages on key issues impacting real estate and the quality of life in Wisconsin:
No State Tax Increases
- Legislature should oppose proposals to increase state taxes to balance the $3.2 billion budget deficit.
- This includes eliminating existing sales tax exemptions which is the same as raising taxes on those services.
- The long-term solution to budget deficits depends on economic growth and job creation/expansion, both of which are impaired by Wisconsin's high taxes.
ACTION: Oppose attempts to raise state taxes, including elimination of current sales tax exemptions.
Keep Property Taxes Down
- The governor's budget proposal would result in substantially higher property taxes, according to the Legislative Fiscal Bureau.
- The Legislature should take steps to reduce the projected increases in local property taxes.
- Wisconsin is already one of the highest property taxed states in the country, which directly precludes thousands of young families from realizing the "American Dream" of homeownership, dramatically increases business costs and thus deters job growth and economic base expansion.
- It is difficult to claim a "no tax increase" budget at the state level if it results in substantially higher property taxes at the local level.
ACTION: Support efforts to limit property tax increases.
Keep the "No Call" Law-Change the Rules
- The "No Call" statute restricting telemarketing is appropriate regulation and should not be changed.
- But the administrative rules are flawed, confusing and need to be revised.
- The rules impose unnecessary limitations on non-telemarketing calls that limit desired customer services and put
REALTORS® and others at risk of predatory lawsuits.
- The rules exceed rule making authority and threaten the integrity of the new law by:
- Creating a private cause of action, directly contradicting a gubernatorial veto.
- Dramatically expanding the definition of "telephone solicitor" to cover all active real estate licensees.
- Expanding registration requirements to cover individuals, not just businesses.
- Eliminating the exclusion for businesses operated out of residences.
- Creating a contradictory and discriminatory registration fee structure.
- Expanding regulation of nonprofit organizations by limiting the number of exempt nonprofits.
ACTION: Support changes to the No Call administrative rules or legislative action to require such rule changes.
Support Comprehensive Land Use Planning and Smart Growth
- Resist efforts to diminish the state's commitment to balanced comprehensive planning through the state Smart Growth law.
- Good, balanced planning benefits private property, local economies, the housing market, and the environment.
- Wisconsin's Smart Growth law promotes equal planning consideration for communities' future housing, transportation, economic development, environmental and utility needs.
- Recent growing criticism of the law by some local officials and property owners is largely based on misunderstandings and misinformation.
- The law can be improved by modifying statutory language to clarify that the law provides only guidelines, not mandates, and to exempt certain smaller communities.
ACTION: Oppose attempts to repeal, delay implementation or cut funding for planning grants related to the Smart Growth law.
Real Estate Modernization and Consumer Protection Act
- Support legislation later this session for the first comprehensive modernization of Wisconsin real estate transaction law in over a decade.
- A more informed, Internet-savvy consumer as well as an evolving understanding of the principles of competent brokerage practice has changed the real estate marketplace and changed the nature of real estate services, requiring Wisconsin's real estate license laws to change as well.
- This legislation is intended to revise Wisconsin's real estate licensing laws to:
- Ensure consumers receive the competent services they expect from a licensed real estate broker.
- Ensure brokers work under a regulatory scheme that ensures consumer protection while facilitating competent brokerage practices.
- Simplify the license law to the benefit of both consumers and brokers.
- The legislation will recognize that competent advise regarding real estate issues is a service owed to all parties in a transaction, not just to those who are paying you.
- The legislation will therefore require brokers to provide the same level of competent advise to all parties in a real estate transaction. Higher level duties owed to "clients" will be left to separate broker service contracts.
- These changes will improve brokerage services for all parties and clarify who represents who in a real estate transaction.
- The legislation will clarify the management responsibilities of brokers who own real estate companies and hold them accountable to consumers for clearly identified responsibilities.
- The legislation will better protect consumers by elevating and clarifying the duties of all real estate licensees in a transaction
ACTION: Co-sponsor and support legislation later this session to modernize real estate transactions and provide enhanced consumer protections.
In addition to these key issues, other important issues identified included:
Land Use and Environmental Law
- Shoreland zoning - Create a reasonable regulatory framework that (a) distinguishes between nonconforming uses and nonconforming structures, and (b) allows property owners to repair, remodel, maintain, and improve nonconforming structures in accordance with current local zoning and building regulations.
ACTION: Support.
- Tax Incremental Financing districts - Seek expansion of the current TIF district law to provide local units of government with additional tools to attract new economic development and protect against new restrictions on use of TIF districts.
ACTION: Support.
- Moratoria enabling legislation - Authorize municipalities to enact moratoria only to prevent the overburdening of public facilities or a significant threat to public health or safety presented by development.
ACTION: Support.
- Impact fees - Require that impact fees cannot be collected prior to the issuance of a building permit. Impact fee ordinances must include a procedure for individualized assessments of impact fees, an appeals process, a provision for credits (for on-site improvements and for impact fees paid in excess of a development's proportionate share), and cannot be retroactive. Assessed impact fees must be refunded to the payor of the fee if the capital improvement is not commenced within 5 years. Authorize communities to exempt affordable housing from impact fees).
ACTION: Support.
- Other fees imposed on development - Codify existing case law prohibiting local units of government from charging fees that exceed the actual costs incurred to provide that service. Fees that are imposed to generate revenue are an illegal tax unless specifically authorized by the legislature.
ACTION: Support.
Transactional and License Law
- E-commerce - Revise the state's electronic commerce statutes to facilitate use of transactional platforms and electronic signatures using federal legislation (E-sign) and the Uniform Electronic Transaction Act (UETA) as the foundation for Wisconsin-specific statutes.
ACTION: Support.
- After-the-fact referral fees - Revise statutes to prohibit brokers from demanding referral fees without reasonable cause and prohibit threats to withhold employee relocation benefits if a broker is not paid a fee for a referral being demanded without reasonable cause.
ACTION: Support.
- License reciprocity - Authorize the Dept. of Regulation and Licensing to enter into license reciprocity agreements with other states.
ACTION: Support.
- Commercial broker liens - Revise statutes to remove the requirement that a broker file a written notice of intent to file a commission lien.
ACTION: Support.
- Health insurance coverage - Seek legislation making health insurance more available and affordable for independent contractors and small businesses, including but not limited to, exempting independent contractors from the requirement that their employer pay a percentage of the premium; and creation of a small business group to which independent contractors can subscribe.
ACTION: Support.
Government Reform
- Campaign finance reform - Seek substantial reforms to state campaign finance laws that are constitutional and that protect the ability of all individuals and organizations, including
Realtors®, to effectively participate in the political and legislative process.
ACTION: Support constitutional reforms and oppose unconstitutional proposals.
Finance and Housing
- Predatory lending - Revise statutes and/or administrative rules to provide restrictions to predatory mortgage lending activities without jeopardizing the availability of loans to reasonable risk individuals.
ACTION: Support.
- Affordable housing - Seek regulatory and tax relief that promotes additional affordable housing units, including but not limited to revising TIF district laws, building codes, zoning ordinances and density bonuses.
ACTION: Support.
For additional details, contact Michael Theo mtheo@wra.org.
Back to Inside This
Edition
Return to On-Line
Publications
Wisconsin's 1st Quarter Housing Stats Online
Historically low mortgage rates topped stagnate job growth and war-jittery financial markets to boost residential home sales in Wisconsin nearly 7% in the first quarter of 2003.
To get the sales and median price numbers for the first quarter, go online to
www.wra.org/Consumer_Resources/About_Wisconsin/housingstats.asp
Also, see the WRA press release regarding the information at www.wra.org/online_pubs/press_releases/pr0503.htm.
Back to Inside This
Edition
Return to On-Line
Publications
Rural Development Initiative Allows Over One Thousand Home Shoppers To Become Home Owners
Frank Frassetto, State Director for USDA Rural Development has released fiscal year 2002 information which reveals that over eighty nine million dollars was delivered to Wisconsin residents for the purchase and repair of homes using Rural Housing programs. "This has been a record year for us and we are very proud of our achievement", Frassetto said.
The growth and quality of Wisconsin Rural Development's Single Family Housing mission area was recognized as the "Best Overall Single Family Housing Program In The Nation at the National Rural Housing Policy Meeting held last September in Chicago. "The award recognizes both the delivery and quality of Wisconsin's single family loan and grant programs including the utilization of funds, delinquency rates, loss rates, and growth in the various loan program areas," according to
Frassetto.
Rural Development has achieved substantial growth in it's Direct 502 and Guaranteed Rural Housing (GRH) programs. These home purchase programs offer home ownership without a down payment or monthly mortgage insurance to low and moderate income families. "We have made these programs easier to use, with processing time comparable to conventional lending", Frassetto said. In addition to the home purchase programs, Rural Development offers very low income home owners the opportunity to complete essential home repairs affordably with the Section 504 Loan and Grant program.
In response to the needs of the housing industry and to encourage home ownership to moderate income and minority families, the Bush Administration has recently lowered the guarantee fee for GRH purchase and refinance transactions. This reduction in the guarantee fee will benefit
Realtors®, lenders, and homeowners by keeping transaction costs comparable to other mortgage programs. Peter Kohnen, Single Family Housing Program Director, indicated that "the delivery of our single family housing programs is constantly reviewed to ensure that we provide applicants and lenders with the best service possible". A digital mapping process is being put in place to allow applicants, lenders, and real estate professionals to identify properties that are eligible for Rural Development financing. Areas eligible include rural areas and communities under 20,000 population, not contiguous to a larger urban area.
"We think our programs fit a niche that the conventional lending industry can not reach. Our Guaranteed Rural Housing Program in particular has opened up new opportunities for
Realtors® in rural areas", Frassetto concluded.
Wisconsin Realtors® Association President, Bill Malkasian, met recently with Rural Development State Director, Frank Frassetto, at the Association's office in Madison. Malkasian and Frassetto considered ways to more effectively exchange information of interest to both organizations and to foster better communication for the future.
For more information about affordable home financing, contact your local Rural Development office or call toll free 1-866-GRH-3600. Also, visit our Web site at
www.rurdev.usda.gov/wi
to learn about Rural Development programs in Wisconsin. USDA Rural Development is an Equal Housing Lender and an Equal Opportunity Employer.
Back to Inside This
Edition
Return to On-Line
Publications
Back to Top
|
