Dear FAAR Members,

By now, you've probably heard a lot about the proposed $40 dues increase to fund the REALTOR Party Political Survival Initiative.  FAAR conducted a survey of its membership and conveyed those survey results with VAR.  The NAR Board of Directors will be voting on this proposal on Saturday, May 14th during the annual Midyear Meeting held in Washington, DC.  If you would like more information about the proposal or a chance to take the survey, please click here to read a recent post on FAARForum.  Information about the NAR Directors' decision will be shared after the vote takes place. 

FAAR Sponsors Affordable Housing Awareness Week 

FAAR was able to secure a $3,000 NAR grant to support the region's first Affordable Housing Awareness Week June 3rd-10th.  This grant money gives FAAR the opportunity to position itself as a leader in bringing focus to the challenges many area families face in retaining and securing quality, affordable housing. 

Just a few short years ago, many families were priced out of the housing market.  A lot of these individuals have jobs that people often think pay more than enough to buy a house, but for firefighters, police officers, and school teachers, homeownership is often out of their reach.  With historically low interest rates and prices at very competitive levels, many families have been able to realize that dream of homeownership.  But we're already seeing a constrained supply of affordable houses in many areas and now is the perfect time to start a conversation about how we preserve affordability while maintaining thriving, diverse communities.

FAAR is sponsoring a series of Community Forums throughout the Fredericksburg region that seek to bring together business owners, non-profits, elected officials, builders, and REALTORS(R) to discuss the challenges we face and the opportunities we can generate to address affordable housing.  Click here to view an invitation to all of the forums, REALTOR(R) participation in the discussion is crucial. 

There are many more activities going on throughout the week including a Housing Fair and community service projects.  To learn more about Affordable Housing Awareness Week, please click here. 

Redistricting:  The Sequel  

After Governor McDonnell vetoed the House and Senate-approved redistricting maps last month, the General Assembly had to go back to the drawing board and start again.  The new maps passed muster with the Governor but they still must be approved by the U.S. Department of Justice.  It's possible the districts could change again, but here is what we're looking at so far.

Sen. Edd Houck loses some of Spotsylvania County and gains some area up to the outskirts of Charlottesville.  Sen. Ryan McDougle gains the vast majority of the Northern Neck while Sen. Richard Stuart loses most of that area and a good bit of Stafford County. Stuart gains some precincts in Spotsylvania and Prince William counties.

A newly created House district in North Stafford and Prince William already has a declared candidate in Stafford Chairman of the Board, Supervisor Mark Dudenhefer. 

To learn more about redistricting, visit the Virginia Public Access Project.   

Dear FAAR Members,

As the U.S. Congress continues to battle over the federal budget, rumors are flying that everything is back on the table for consideration in reducing spending.  What does that mean for real estate?  You guessed it, another attack on the mortgage interest deduction.  NAR has issued a Call for Action requesting Members of Congress support a resolution the defends the deduction.  If you haven't already responded to the call, visit the Realtor Action Center today to make your voice heard. 

MARS Disclosure Forms from VAR 

VAR has put together forms for use by agents in response to the new Federal Trade Commission (FTC) short sales rule.  NAR is engaged in ongoing discussions with the FTC about the MARS rule and its impact on REALTORS(R). 

It is clear from these discussions that real estate professionals ability to market to potential short sales customers was NOT intended to be impacted by this rule.  NAR is working with the FTC to clarify implementation of the rule so that REALTORS(R) won't have to worry about the rule at all.  While those discussions continue, the FTC will NOT enforce the disclosure rule on listing agents. 

If you are still concerned about the rule and would like to use these optional forms VAR has drafted, please feel free to do so.

Form 1

Form 2

General Assembly Wrap Up

Here is a breakdown of how REALTOR(R) supported bills fared in the 2011 General Assembly session:

•  HB 1907-Real Estate Agency Bill
  • Clarifies rules on dual agency, updates disclosures, and provides REALTORS(R) immunity from law suits when relying on publicly available information that turns out to be inaccurate
    • ENACTED INTO LAW
• SB 931-Prohibition on Private Transfer Fees
  • Prohibits pure private transfer fees that do not have any benefit for the property or owner
    • ENACTED INTO LAW
• HB 1908/SB 780-Recordation Tax Bill
  • Bill eliminates the same lender requirement when refinancing and would allow all refinances to forgo paying the recordation tax through 2014
    • DEFEATED
• SB 1350-Assessment Appeals
  • Bill changes the burden of proof for real estate assessment appeals at the Circuit Court to a preponderance of the evidence instead of the current higher standard
    • ENACTED INTO LAW

Redistricting Impacts Fredericksburg Area 

States must redistrict after every 10 year census count to ensure that local, state, and federal voting districts have equal amounts of people.  Virginia has an especially condensed timetable for redistricting due to it's odd year elections.  While most states have until the 2012 election to prepare their new voting maps, Virginia has until next week.  Yes, that's right, next week!  The General Assembly will convene a redistricting session next week to approve the plans that have been put forth by the House and Senate this week.  Traditionally, the Senate does their maps, the House does their maps, and the congressional delegation does their maps and no one meddles in the other's business.  

While specific maps are not yet available from the state, it appears that Stafford and the Northern Neck will see some big changes to their state Senate seat.  Sen. Richard Stuart will see his district shift north in Prince William County and away from the Northern Neck.  Stafford would also see some precincts move into the 4th Senate District currently held by Ryan McDougle. 

To learn more about redistricting, visit the Virginia Public Access Project.   

Dear FAAR Members,

The General Assembly has officially wrapped up its work on this year's short legislative session.  We can celebrate many victories including enacting a new agency bill, reducing the burden of proof for homeowners protesting assessments, and expanding smart growth-enabling tools.  Watch April's Legislative Insider for a full recap of what was passed, what was defeated, and what it means for the real estate industry. 

Victory for Mayfield!

House and Senate budget negotiators finally came to an agreement last night and passed budget amendments that will provide more money to Virginia's rainy day fund, education, mental health, and public safety.  In addition, Sen. Houck's amendment relating to CSX and rail cars adjacent to the Mayfield neighborhood in the City of Fredericksburg was included in the budget giving this area a huge victory! 

The budget amendment requires CSX and the Department of Rail and Public Transit to develop a plan to reduce storage times for hazardous chemicals at the Mayfield rail yard.  Under the plan, CSX would not be able to store dangerous chemicals at the yard for more than 24 hours.  A report is due back to the House and Senate to report on the progress of the plan in September and again in December. 

The initial amendment Sen. Houck proposed included financial penalties for CSX if they fail to comply with the measure, but that was stripped out of the amendment during budget negotiations.  Sen. Houck said the threat remains if CSX fails to work with the local community to remedy this situation. 

Focus on the Feds 

News stories continue to circulate about the potential of rolling back the Mortgage Interest Deduction (MID), doing away with Fannie Mae and Freddie Mac, and making FHA loans less appealing and less widely used.  There seems to be no question that the government's secondary mortgage market giants will eventually disappear, but what will replace them?  It's hard to imagine a housing market without the backstop of Fannie and Freddie, especially since so many loans are sold to the institutions on the secondary market.  If the private sector must carry the entire risk load of future mortgages, what does that mean for buyers and sellers? 

NAR has put together an analysis of some of the proposals that have been put forward by the Obama administration.  This debate will be a long one so many things will change between now and any final decisions.  Click here to read NAR's latest review of Obama's suggestions.

RPAC Events!  Need new head shots?  We've got you covered! 

• Head Shots Event!  FAAR is offering a professional sitting with a local photographer on Tuesday, March 15th for JUST $25.  Contact kmcclellan@faarmembers.com if you would like to schedule an appointment. 
• 100% Investment Office Challenge!  Can your office reach 100% investment in RPAC at the $25 level among all agents?  If so, you could win a free breakfast from FAAR!  Details coming soon, check next week's FAAR Update! 

Dear FAAR Members,

It's only February and we're already more than halfway to reaching our RPAC Fair Share Goal!  If you haven't already invested in RPAC this year, consider sending in your investment or attending one of our upcoming events.  RPAC is hosting a REALTOR Head Shots event in March and the annual RPAC cruise is coming up in May.  With all members of the VA General Assembly up for election in November, it's important that FAAR has the resources to support REALTOR-friendly candidates.  So don't delay, invest today!

General Assembly Session in Full Swing

The 2011 short session of the General Assembly is in full swing with many REALTOR issues on the agenda.  For REALTORS attending Day on the Hill, our top priorities include banning private transfer fees, eliminating recordation taxes on refinances, and reigning in property owners' associations. 

If you haven't already responded to VAR's Call to Action on the recordation tax bill, make your voice heard!  Click here to read more about the issue and send a message directly to your legislators. 

There is also a legislative proposal being considered that would help with the issue of rail cars being stored near the Mayfield neighborhood.  Sen. Edd Houck has introduced an amendment to the state budget that would require rail cars to move through residential neighborhoods within 8 hours.  This would be a huge victory for Mayfield as many rail cars currently sit for days at a time, sometimes storing hazardous chemicals. 

Watch the March issue for a breakdown of what was passed during the session and how it will impact your business.

Spotlight on Transportation

Could a new interchange off I-95 near Central Park and Celebrate Virginia be closer than you think?  If Governor McDonnell's transportation is enacted during this General Assembly session, the proposed toll road linking I-95 with Gordon Road could receive up to $15 million for necessary design and environmental studies. 

The road is intended to carry drivers from I-95 out to Gordon Road with an interchange for Central Park and Celebrate Virginia.  Estimates from a recent Federal Highway Administration study indicate that a large portion of traffic currently existing at Rt. 3 would be routed to the new parkway taking the pressure off Rt. 3, Fall Hill, Cowan Blvd., and River Road.  Many potential neighbors of the new parkway project are not excited about the plan.  Opponents and supporters alike will have an opportunity to make their cases heard before the Spotsylvania Planning Commission later this spring when they host an open meeting. 

Whether the road gets built remains to be seen, but there is no doubt that it will be a long, expensive process with significant public input.

Dear FAAR Members,

Happy New Year!  As we say goodbye to 2010 and look ahead to a new year, many challenges remain the same for the real estate industry but new issues will certainly come up.  Don't hesitate to contact FAAR about any concerns you have while doing business.  The Government Affairs Working Group and I look forward to serving you in 2011!

REALTOR Day on the Hill

We Need YOU in Richmond on February 9th!

VAR's Annual REALTOR Day on the Hill will take place on Wednesday, February 9th.  It is vital that we pack our local legislators' offices with REALTORS from around the state to talk about issues of importance to the real estate industry and your business.  Some highlights of what we will be fighting for in 2011 include:

• Stop double taxing!  No more recordation taxes on refis
• Don't punish REALTORS when public records are incorrect!
• Smart growth is a good thing, don't let anti-growth folks hold development hostage!

You may register for the entire Legislative Conference by visiting http://www.varealtor.com/getactive.  There you will find information about all of the classes and activities taking place and a schedule of events.  If you would rather come down for just Day on the Hill, FAAR will be running a van down to Richmond for the day.  If you would like to take the van, please email me directly at kmcclellan@faarmembers.com.  Space is limited so reserve your spot today. 

Spotlight on Stafford 

There is a lot going on in Stafford County in January so take advantage of these great opportunities! 

• The Stafford County government will be providing FREE classes to residents about how your local government operates.  The Stafford County Citizens Academy will run once a week on Thursdays from January 6-27th at the Administration Building on Courthouse Road.  If you are interested, please contact Jeff Shover at 540-658-4516. 
• VDOT is hosting a public meeting regarding the design of the Falmouth Intersection on January 6th from 4-7pm.
• The Stafford Supervisors are holding a meeting on Saturday, January 8th from 8am to noon to discuss the county's priorities for 2011. 

Dear FAAR Members,

FAAR wishes every member and their families a happy and healthy holiday season!  The January newsletter will preview the General Assembly session with a focus on FAAR's legislative priorities and details about the annual Day on the Hill event.

So What Happens Next?

A Look Ahead to the New 112th Congress

Voters in states across the nation, including Virginia, ousted numerous incumbents in favor of more conservative, less well-known political outsiders.  Now that the face of Congress has changed so dramatically, what will happen in the ensuing two years?  Conventional political wisdom might lead one to say, not much.  A divided Congress usually leads to gridlock, but the 112th Congress just might prove to be different.  The freshman members elected in November arrive in Washington with a clear message from voters:  We don't like the status quo.  Since the status quo would mean more political infighting and congressional inactivity, these new members and the chastened leadership of both parties might just be able to start working together on compromises that will allow them to keep their jobs in 2012. 

How the housing industry will be treated by the new Congress remains uncertain.  It is unlikely that the treasured mortgage interest deduction would be in play and it also seems unlikely that the Republican-controlled House will be willing to pump more federal spending into stimulus programs like a homebuyer tax credit.  The foreclosure prevention programs are likely to be eliminated or at the very least revamped to try and improve upon on their dismal performance numbers.  The most important thing the new Congress could do is to work to improve the jobs picture in the country.  People without jobs can't buy homes and if unemployment numbers started to go down, home purchases would probably go up in the long run.  It will become clear very early on in the legislative year what kind of Congress this will be.  What happens with the housing market will have a strong connection to what happens in those first few months of the new session. 

Attention Stafford residents and agents:  The County's Comprehensive Plan needs your help!

The Stafford County Board of Supervisors is poised to adopt its first update of the Comprehensive Plan in over 20 years, but not without some controversy.  The Plan includes state-mandated Urban Development Areas intended to accommodate the next 10 years worth of population growth in high-density, mixed-use developments.  REALTORS(R) have a long history of supporting thoughtful growth management that reduces urban sprawl and preserves housing affordability.  But some in Stafford County would rather not see any new growth at all and they are fighting the new Comprehensive Plan.  The Board of Supervisors will hold a public meeting on Tuesday, December 14th at the Stafford Courthouse at 7:00pm.  Come out and voice your support for long-range planning and the Comprehensive Plan by signing up as a public speaker at the meeting.  A strong showing is needed by supporters of the Comprehensive Plan to show the Supervisors that the Plan is embraced by those in the community.  If you would like more information about the Stafford County Comprehensive Plan, click here.