Government Affairs Update – Second Quarter of 2017

Massachusetts State House - Freedom Trail Site - Boston, Massachusetts, USA

The second quarter of 2017 has been busy for MAR Government Affairs. After a slow start, the legislature briefly picked up the pace before closing out the quarter focused almost entirely on the issues of marijuana and the state budget.

ANNUAL BUDGET
The budgeting process for fiscal year 2018 drew the interest of Realtors® when the Senate included two concerning provisions in its annual budget. First, the Senate included a section that would have expanded the room occupancy tax that hotels charge guests, to the rental of private homes for less than 90 days. Under this proposal, homeowners would be required to comply with onerous business regulations and administrative burdens that were never intended for the average homeowner. A home is not a hotel and a homeowner who leases her cottage for a week or even a day would be required to abide by the requirements as detailed in the Senate proposal.

The Senate also included a provision that would have increased the Community Preservation Act surcharge on recording fees from $20 to $45 per document, resulting in an increase of hundreds of dollars. This would have further exacerbated the inequitable manner of funding the CPA with recording fee surcharges. In effect, purchasers of homes and other properties are paying to fund the CPA, which provides benefits to the entire community.

We are happy to report that, because of MAR’s advocacy on these issues, the budget compromise agreed to by the House and Senate does not contain either of these proposals. It is important to note, however, that both proposals still exist as separate legislation and are currently working their way through the legislative process.

ROOM OCCUPANCY
In addition to addressing the proposed room occupancy tax provision in the Senate budget, the Joint Committee on Financial Services also held three hearings on a different bill that would tax short term rentals at varying tax rates. Realtors® from across the Commonwealth testified at hearings in Lenox, Barnstable, and Boston on the impact that such a tax would have on homeowners who only occasionally rent their homes. This will continue to be a big issue as the legislature heads towards an August recess. Thank you to all of the Realtors® that showed up to testify at the hearings.

H.O.M.E. BILL HEARING
The legislature held two hearings on An Act improving housing opportunities and the Massachusetts economy, the H.O.M.E. Bill. President Paul Yorkis, MAR Legislative & Regulatory Counsel, Justin Davidson and representatives from the Greater Boston Real Estate Board testified first before the Joint Committee on Municipalities and Regional Government and highlighted some of the key provisions of the bill that would aid in the production of much needed housing in Massachusetts. Just a few weeks later, President Yorkis, Government Affairs Committee Chair Steve Medeiros, and MAR Past President Corinne Fitzgerald testified before the Joint Committee on Community Development and Small Business, once again advocating for the passage of the H.O.M.E Bill.

TRANSFER TAX
On June 13th MAR General Counsel and Director of Government Affairs, Michael McDonagh testified before the Joint Committee on Revenue in opposition to proposals to create a transfer tax on the sale of real estate. Transfer taxes would create an entrance or exit fee to homeownership and would have serious implications for the Massachusetts housing economy. These taxes single out home buyers and sellers and raise the bottom line price of many homes by thousands of dollars.

TITLE 5 WORK GROUP
President Yorkis continued to represent Realtors® at the Department of Environmental Protection’s Title 5 Stakeholder meetings. The purpose of the meetings is to have outside experts and interested parties that represent a variety of interests and viewpoints provide advice to MassDEP on what modifications should be considered.

LEAD PAINT
In June, the Governor’s Lead Paint Advisory Commission met to discuss proposed changes to the lead regulations in the Commonwealth. The proposed amendments are intended to improve organization, clarify regulatory requirements, rescind unnecessary or outdated requirements, and implement a standard for lead poisoning and a blood lead level of concern used by the CDC and most states. Of note to those in the deleading field, they also propose to remove the deleading standard for a small number of surfaces, specifically some surfaces currently considered “accessible/mouthable”, which could substantially reduce deleading costs.

NAR MID YEAR
In May, thousands of Realtors® attended the 2017 Realtors® Legislative Meetings and Trade Expo in Washington, D.C. It has never been more important for Realtors® to remain engaged in advocacy initiatives and have our unified message and voice heard on Capitol Hill. As long as Realtors® continue to remain steadfast in working together, great strides will be made to protect the American Dream of property ownership and the real estate industry. This year Realtors® met with members of Congress to discuss tax reform, flood insurance, and protecting sustainable homeownership.

BOARD OF REGISTRATION
At its May 10th meeting, the Board of Registration of Real Estate Brokers and Salespersons once again discussed the use of the new Massachusetts Mandatory Real Estate Licensee-Consumer Relationship Disclosure form. MAR had requested clarification regarding use of the old form once the new form was released. The Board confirmed that there will be a two-year grace period before any action would be taken against agents using the old form during a transaction. Despite the approved grace period, MAR still strongly suggests that all agents use the new form released by the Board in January of this year.

MARGARET C. CARLSON REALTOR® DAY ON BEACON HILL
Over 400 Massachusetts Realtor® -members traveled to the State House on Wednesday June 14th to participate in the 32nd annual Realtor® Day on Beacon Hill. The annual lobbying day gave Realtors® the opportunity to discuss with their legislators the key issues that impact consumers, housing and the economy. State Senator Karen Spilka (D – Ashland), Chair of the Senate Ways & Means Committee, provided the 2017 keynote address. Thank you to all who attended.

2017 PRIVATE PROPERTY RIGHTS AWARD
Kevin Sears of Springfield was awarded the 2017 Private Property Rights Award at Realtor® Day on Beacon Hill on June 14th. The award is given to Massachusetts Realtors® whose outstanding efforts in advocacy have helped the Association achieve its objectives of increased access to homeownership and preservation of private property rights. Congratulations to Kevin.

HOUSING PRODUCTION HEARING
Proponents of efforts to increase housing production in Massachusetts crowded the hearing room at the State House on June 20th when the Joint Committee on Housing held a hearing on bills relative to production. President Yorkis delivered testimony that not only emphasized the housing supply shortage but also highlighted the revenue to the state and municipalities that goes along with housing production.