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October 6, 2023
Public Policy Update
Hello everyone. Whew! The federal budget crisis that was the talk of the town last week has been averted. Well, at least until Nov. 17th that is. If you recall from my previous update, the National Flood Insurance Program (NFIP), as well as some other important real estate-related programs, were at risk of lapsing in the face of a potential government shutdown.
The NFIP is a critical component in many mortgages throughout the country. Without an extension of the NFIP, the program cannot issue or renew policies where flood insurance is required for a mortgage. NAR estimates that an extended lapse of the program would threaten approximately 1,300 property sales nationwide each day.
Thankfully, Realtors made their voices heard in a nation-wide call for action (CFA) that was issued by NAR a few hours after my update went out last Friday. The end result of the effort was the approval of a temporary funding bill by Congress that will keep the federal government, and the NFIP program funded until Nov. 17th.
So, what’s the latest on the situation as we creep towards the next funding deadline? Well, as of right now, Congress is discussing a Continuing Resolution (CR) to extend funding for the federal government after November 17, 2023. An NFIP extension is attached to the CR. In the meantime, NAR is urging the longest extension possible while Congress continues working toward a long-term reauthorization and reform measure.
So, definitely more to come on this important topic but at least for the next few weeks we can rest a little easier.
Welcome the Newest Member of Your Public Policy Team
Meet JP Bell, the newest member of your Florida Realtors Office of Public Policy. In an amazing coincidence, JP Bell steps into the vacant shoes of JP Fraites who recently departed for a role in the Florida Department of Agriculture and Consumer Services. We didn’t plan to hire a JP to replace a JP, but when you get the right person for the job and their first name just happens to be the same as their predecessor, you know you struck gold.
JP comes to us from the Florida Agency for Persons with Disabilities where he was the Legislative Affairs Director. Prior to that he worked in the legislative affairs office of FloridaCommerce (formally known as the Department of Economic Opportunity).
JP will be focused on land use and sustainable development issues, water quality issues and property management issues for Florida Realtors. Please don’t hesitate to say hello if you see him on a Zoom, at a conference or in your local area for an event.
Second Interim Committee Week Coming Up
Next week will be the second Interim Committee Week in preparation for the 2024 legislative session. Only the Florida Senate will be in Tallahassee for the week and committee meetings are only scheduled to take place on Tuesday and Wednesday. Here is the full schedule for the week if you are interested.
The remaining Interim Committee Weeks will take place the week of October 16th, the week of November 6th, the week of November 13th, the week of December 4th and the week of December 11th. The 2024 Legislative Session begins on January 9th and is scheduled to end on March 8th. As of today, 109 bills have been filed for the 2024 session.
NAR Comments on Proposed Lead Regulations
NAR, in coalition with other real estate stakeholders, has submitted comments on the EPA's proposed regulations to strengthen requirements for the removal of lead-based paint dust in homes and childcare facilities built before 1978. Under the proposed rules, any amount of lead dust on floors and windowsills would require additional testing and abatement, paid for by the property owner. Compliance with the rule is triggered by a finding by a health care professional that a child in the property has elevated blood lead levels (BLL), as set forth by the Centers for Disease Control.
Most importantly for Realtors and property managers, the proposed regulation would not require property owners to proactively test for lead paint dust before selling, but if such tests have been performed, this information would need to be disclosed to potential buyers under current lead paint disclosure protocols.
The comments focus on concerns that the proposed rule will have significant negative impacts on all aspects of the housing and real estate market, including affordable housing which would have direct negative health impacts. EPA’s economic analysis provides insufficient support to properly assess these negative impacts, which would be most felt by the category of people EPA seeks to protect by amending the dust-lead levels: children and people living in target housing in communities with environmental justice concerns. Health-based effects are not only the direct negative health effects that result from exposure to dust-lead, but also the negative health effects from lack of availability, stability, and affordability of housing.
U.S. Senate Committee Approves SAFE Banking Act
On Wednesday, September 27, S. 2860, the Secure and Fair Enforcement Regulation (SAFER) Banking Act passed the Senate Banking Committee by a bipartisan majority of 14-9. This bipartisan legislation, co-sponsored by Senators Merkley (D-OR) and Daines (R-MT), is an updated version of previous bills (known as the SAFE Banking Act) which creates a safe harbor for financial institutions in states that have legalized cannabis to accept funds derived from cannabis businesses.
Currently, cannabis is legal in 47 states, 4 territories, and the District of Columbia; however, its categorization as a schedule one controlled substance means that banks are prohibited from accepting clients’ funds whose income is tied to its sale. This includes real estate professionals – property managers may manage shopping centers that have cannabis businesses, a REALTOR® may sell a plot of land or a warehouse to a production facility, and so on. This restriction creates difficult burdens to both cannabis businesses and the ancillary businesses that work with them, and results in cash-only businesses, which are targets for crime.
The SAFER Banking Act does not just create a safe harbor for financial institutions; it also takes steps to address inequities in the system by extending that safe harbor to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). Additionally, it provides that income from cannabis businesses (in states that have legalized it) should receive equal treatment to other types of legal income for purposes of securing a federally backed mortgage. Finally, it speaks to the issue of fraud and criminal activity by including monitoring and reporting requirements, which will also assist in tracking this fast-growing business sector.
Similar bills have been introduced in Congress for many years, and NAR has supported them since its policy on the issue was approved in 2019. This is the first time this bill has passed the Committee in the Senate. Its next steps are a Senate floor vote, and then being sent to the House for consideration there. NAR will continue to support this legislation and encourage its passage in this Congress.
Read NAR's Letter of Support for the SAFER Banking Act
Please reach out to us at publicpolicy@floridarealtors.org with any questions you may have.
Sincerely,
Andy Gonzalez
Vice President of Public Policy
Florida Realtors®
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