National Legislative IssuesJanuary 27, 2010<br />
Federal Issues<br />Housing Finance<br />Tax Matters<br />Environment<br />Draft FCC Issues<br />State and Local Issues<br...
 Energy and Green Building
 Building Codes
 Bed Bugs
 Additional Issues</li></ul>NAA Tracking Info<br />
Housing Finance<br />Capital Markets Initiative<br />Goal is to restore apartment industry’s access to capital<br />11/30/...
Housing Finance<br />Government Sponsored Enterprises Reform<br />Senate Banking Committee trying to determine the future ...
Housing Finance<br />At 9/30/09, $51 billion provided to Freddie and $60 billion to Fannie<br />Treasury announced conserv...
Housing Finance<br />CRE Loan Modifications<br />Policy statement issued 10/30/09<br />Gives banks more flexibility to ext...
Housing Finance<br />Financial Regulatory Reform exempts CMBS from Risk Retention Requirements<br />House has passed a bil...
Housing Finance<br />Apartment related tax incentives allowed to expire<br />Senate failed to pass tax extension bill<br /...
Tax Matters<br />Carried Interest<br />On 12/9/09 House passed HR4213 which, among other things, taxes carried interest at...
Tax Matters<br />Carried Interest<br />In January 2010 the Executive Committee of the U. S. Conference of Mayors unanimou...
Tax Matters<br />Estate Tax<br />On 12/3/09 House passed HR4154 to permanently extend the 2009 Estate Tax Law (3.5 million...
Tax Matters<br />Net Operating Loss<br />New law – (11/6/09) – NOL carryback expanded from 2 years to 5 years.<br />Applie...
Environment <br />Climate Change Bill<br />House passed its Climate Change Bill on 6/26/09. <br />Includes a provision re...
Environment <br />Lead Based Paint Renovation, Repair and Painting Rule<br />In effect in April 2010 <br />Creates new com...
Draft FCC Order<br />A draft before the FCC would allow exclusive contracts between apartment properties and cable provide...
State and Local Issues<br />
1. Budgets and Taxes<br />Fiscal pressure on state budgets<br />States looking at increased income taxes, excise, propert...
2. Energy / Green Building<br />Green Building Mandates, energy auditing/reporting and incentives for green building are ...
3. Retroactive Building Code Requirements<br />Many state and local governments considering building codes to contain ex...
4. Bed Bugs<br />Bed bugs are becoming an area of concern<br />Very costly to eradicate<br />Legislation being considered...
5. Additional State and Local Issues <br />Apartment community registration and inspections<br />Smoke free housing requi...
NAA Tracking Information<br />
New Information for 2010 from NAAIssues / Bill Tracking for 2010<br />
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National Legislative Issues

Published on: Mar 3, 2016
Published in: Business      Real Estate      
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Transcripts - National Legislative Issues

  • 1. National Legislative IssuesJanuary 27, 2010<br />
  • 2. Federal Issues<br />Housing Finance<br />Tax Matters<br />Environment<br />Draft FCC Issues<br />State and Local Issues<br /><ul><li>Budget & Taxes
  • 3. Energy and Green Building
  • 4. Building Codes
  • 5. Bed Bugs
  • 6. Additional Issues</li></ul>NAA Tracking Info<br />
  • 7. Housing Finance<br />Capital Markets Initiative<br />Goal is to restore apartment industry’s access to capital<br />11/30/09 NAA/NMHC met with HUD Deputy Assistant Secretary to encourage HUD to streamline its operations and increase volume.<br />12/15/09 NAA/NMHC met with Treasury Secretary Geithner to discuss a future model for CRE lending.<br />
  • 8. Housing Finance<br />Government Sponsored Enterprises Reform<br />Senate Banking Committee trying to determine the future of Fannie and Freddie<br />Obama Administration developing its own plan <br /> (Feb 2010)<br />NMHC/NAA working with committees to make sure that they understand the multifamily perspective<br />Treasury Department announced it will provide unlimited financial support beyond the $100 billion per institution limit for Fannie & Freddie<br />
  • 9. Housing Finance<br />At 9/30/09, $51 billion provided to Freddie and $60 billion to Fannie<br />Treasury announced conservatorship extended through 2012<br />NMHC Task Force developing a policy for GSE Reform that includes the needs of the apartment sector<br />At the March 2010 NAA Legislative Committee meeting, I will push for NAA/NMHC to lobby for Fannie and Freddie to remain separate institutions and get leverage back to at least 80% <br />
  • 10. Housing Finance<br />CRE Loan Modifications<br />Policy statement issued 10/30/09<br />Gives banks more flexibility to extend or refinance CRE loans without adverse classification<br />Loans to good borrowers will not be adversely classified solely because value of collateral has declined to less than loan balance<br />Will make it easier to renew loans<br />Will allow banks to begin to move distressed assets from their balance sheets<br />Relies more on ability to pay rather than value of collateral<br />
  • 11. Housing Finance<br />Financial Regulatory Reform exempts CMBS from Risk Retention Requirements<br />House has passed a bill exempting CMBS for risk retention by issuer<br />Bill requires companies selling mortgage backed securities to retain 5% of credit risk but can use a third party investor for this “B” piece.<br />Senate has not considered a bill yet.<br />
  • 12. Housing Finance<br />Apartment related tax incentives allowed to expire<br />Senate failed to pass tax extension bill<br />Tax credit exchange program<br />New markets tax credit<br />Credit for new construction of energy efficient homes<br />50% bonus depreciation provision<br />Increase in small business expensing limits (Section 179)<br />
  • 13. Tax Matters<br />Carried Interest<br />On 12/9/09 House passed HR4213 which, among other things, taxes carried interest at ordinary income tax rates instead of capital gain as in current law.<br />This has been a top priority for NMHC/NAA for several years<br />Senate has not considered the measure<br />NMHC/NAA will work with other real estate organizations to educate lawmakers of consequences including slowing recovery and hindering affordable housing shortage.<br />Carried Interest tax change has passed House 3 times but never been considered by the Senate<br />
  • 14. Tax Matters<br />Carried Interest<br />In January 2010 the Executive Committee of the U. S. Conference of Mayors unanimously adopted resolution to keep capital gains treatment of carried interest.<br />Intense lobbying effort by NAA/NMHC and other real estate groups.<br />NAA/NMHC now engaging National Association of Counties, National League of Cities and various governor&apos;s associations.<br />
  • 15. Tax Matters<br />Estate Tax<br />On 12/3/09 House passed HR4154 to permanently extend the 2009 Estate Tax Law (3.5 million per person exemption and 45% tax rate) and preserved stepped up basis<br />Senate did not take up this legislation before adjournment<br />1/1/2010 Estate Tax is repealed completely<br />As a part of the repeal (no estate tax) stepped up basis will be replaced by roll over basis<br />
  • 16. Tax Matters<br />Net Operating Loss<br />New law – (11/6/09) – NOL carryback expanded from 2 years to 5 years.<br />Applies to losses incurred in 2008 and 2009<br />Applies to all companies regardless of revenue (cut off was $15 million or less)<br />Can only offset 50% of taxpayer income in year 5.<br />
  • 17. Environment <br />Climate Change Bill<br />House passed its Climate Change Bill on 6/26/09. <br />Includes a provision requiring a building code 30% more efficient by 2010 and 50% more efficient by 2016.<br />NMHC/NAA has opposed this provision for some time<br />Senate has passed a bill thanks to NMHC/NAA that eliminates specific energy efficiency building code targets and timelines, leaving those decisions to EPA rulemaking<br />
  • 18. Environment <br />Lead Based Paint Renovation, Repair and Painting Rule<br />In effect in April 2010 <br />Creates new compliance obligations for pre-1978 properties not certified lead free.<br />Requires workers who disturb lead coated surfaces to complete an EPA certified training course on lead safe work practices<br />
  • 19. Draft FCC Order<br />A draft before the FCC would allow exclusive contracts between apartment properties and cable providers and satellite operators<br />In 2008 FCC banned exclusive access agreements<br />Draft is expected to allow bulk billing and exclusive marketing arrangements<br />Unclear when FCC might vote on this draft<br />NAA and NMHC lost the exclusive access banning case in Federal Court in 2008<br />
  • 20. State and Local Issues<br />
  • 21. 1. Budgets and Taxes<br />Fiscal pressure on state budgets<br />States looking at increased income taxes, excise, property and business taxes.<br />Several states looking at goods and services not currently taxed.<br />
  • 22. 2. Energy / Green Building<br />Green Building Mandates, energy auditing/reporting and incentives for green building are hot topics<br />NAA currently tracking 172 green building related bills at state level alone<br />EPA declared carbon dioxide a pollutant<br />Governments are starting to regulate the factors in development that cause it to be emitted into the atmosphere<br />Some governments have created “carbon taxes”<br />
  • 23. 3. Retroactive Building Code Requirements<br />Many state and local governments considering building codes to contain expensive retrofit requirements (especially relating to health and safety)<br />These codes, if adopted, will cost members many thousands of dollars per property<br />NAA currently tracking over 100 building code proposals at state level<br />Cover carbon dioxide and smoke detectors, sprinkler and elevator mandates (Hoover example)<br />Accessibility proposals also under review<br />
  • 24. 4. Bed Bugs<br />Bed bugs are becoming an area of concern<br />Very costly to eradicate<br />Legislation being considered to shift responsibility for remediation onto property owners and managers<br />If passed will result in rent abatement and sometimes legal and punitive damages<br />Bed bug lawsuits becoming more commonplace, including claims for overexposure of pesticide, gross negligence, battery, breach of warranty and emotional distress.<br />Some cities have set forth strict protocols governing extermination and disposal procedures and subjecting non-compliant properties to fines, inspection costs and even jail time. <br />
  • 25. 5. Additional State and Local Issues <br />Apartment community registration and inspections<br />Smoke free housing required<br />Adding new groups to protective classes such as sexual orientation, applicants with criminal histories, mandatory Section 8 and victims of domestic violence<br />Foreclosure reform – policy makers misunderstand apartment operations and believe tenants would be unexpectedly removed from their units in the case of a foreclosure. Due to this, several states are considering proposals that provide tenants with notice and hold over rights.<br />
  • 26. NAA Tracking Information<br />
  • 27. New Information for 2010 from NAAIssues / Bill Tracking for 2010<br />
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  • 31. We need to support and contribute to NAA to protect our industry<br />

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