National Association of Realtors

Important Talking Points for Tax Reform, National Flood Insurance Program and Protect Sustainable Homeownership

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Tax Reform

Congressional Action Needed

  • Congressional Republicans have promised the first comprehensive tax reform bill in more than 30 years.
  • Members of Congress and their staffs need to be reminded that tax reform must not dilute the current real estate tax provisions vital to the housing market and the economy.
  • Reform ideas that repeal or weaken tax incentives to encourage homeownership must be rejected. We need tax reform, but it must first do no harm.

Congressional Actions To Date

  • No tax reform legislation has been introduced in the current Congress.
  • Tax reform proposals discussed to date would lower tax rates and raise the standard deduction but would pay for these changes by scaling back existing real estate tax provisions.
  • Proposals that limit itemized deductions — even if not directly changing rules applicable to mortgage interest — could have serious negative consequences for homeowners.

National Flood Insurance Program

Congressional Action Needed

  • Authority for the National Flood Insurance Program (NFIP) expires on September 30, 2017.
  • Urge Congress to pass a multiyear reauthorization with needed private market reforms to avoid adding uncertainty to real estate markets.

Congressional Actions To Date

  • House Financial Services Subcommittee Chair Sean Duffy (R-WI) is now drafting an NFIP reauthorization bill that includes mapping, mitigation and private market reforms; the Senate is waiting on the House bill.
  • Senators Heller (R-NV) and Tester (D-MT) and Reps. Ross (R-FL) and Castor (D-FL) have reintroduced the “Flood Insurance Market Parity and Modernization Act” (S. 563(link is external)/H.R. 1422(link is external)) to reduce barriers to private flood insurance.

Protect Sustainable Homeownership

Congressional Action Needed

  • Responsibly reform the secondary mortgage market to ensure that the qualified borrowers have access to safe, affordable mortgage financing.
  • Ban the use of mortgage guarantee fees (g-fees) to offset the cost of legislation unrelated to housing.
  • Ensure that loans used to pay for energy efficiency improvements are subject to consumer protection laws.

Congressional Actions to Date

  • No significant housing finance reform legislation has been introduced in the 115th Congress.
  • H.R. 916(link is external) (Sanford, R-SC; Sherman, D-CA), the “Risk Management and Homeownership Stability Act,” prohibits the use of g-fees as offsets for government spending.
  • S. 838(link is external) (Cotton, R-AR) and H.R. 1958(link is external) (Royce, R-CA; Sherman, D-CA), both entitled the “Protecting Americans from Credit Entanglements Act of 2017,” extend consumer disclosures to Property Assessed Clean Energy (PACE) loans.

Click here to read what REALTORS are telling local Representatives and Senators

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