Commercial Real Estate Issues And Actions – February 2014

This recently updated whitepaper gives you the latest updates on legislation that affect commercial real estate. Read the National Association of REALTORS® position on different legislative issues and the impact they have on the commercial real estate industry.
Sample Issue includes:
►ISSUE: National Flood Insurance Program (NFIP): In 2012, Congress passed the Biggert-Waters Act, which extends the National Flood Insurance Program (NFIP) for five years. Biggert-Waters also phases out subsidized flood insurance rates for many commercial properties but severe implementation problems have threatened to undermine real estate transactions where flood insurance is required to obtain a mortgage. On January 16, 2014, Congress passed the Omnibus Appropriations Bill (H.R. 3547) which prevents FEMA from raising the grandfathered rates through the end of 2014 but not those triggered by the sale of a commercial property that is responsible for the most excessive increases. On January 30, 2014, the Senate passed the “Homeowner Flood Insurance Affordability Act,” (S. 1926), which calls for a 4-year “time out” on rate increases triggered by the sale of property, including commercial sales. The House has yet to take up a companion measure. For more information on flood insurance, see NAR’s “National Flood Insurance Program” issue page here.
NAR Action: NAR successfully worked with Senators Menendez (D-NJ) and Isakson (R-GA) to draft and move the Homeowner Flood Insurance Affordability Bill through the Senate. We helped build a broad coalition of industry groups and sent letters in support, and initiated a Call for Action that achieved an impressive response rate among our membership. We also worked with members of the Banking Subcommittee to hold a hearing on the affordability of NFIP rate changes, and submitted a statement and questions illustrating the hardships they can cause. Now, NAR is working to persuade the House leadership to bring a similar measure to a floor vote, and earlier, signed on to a coalition letter sent to the leadership of the House Financial Services Committee expressing concern over the rate increases.
Read entire position paper.