REALTORS® Meet with Legislators
Property Issues at Legislative Forefront
Legislative issues facing the real estate industry, races to watch in the primary and fall elections, and meeting with state legislators were just some of the highlights of the Pennsylvania Association of REALTORS® annual Government Affairs Seminar on March 7 and 8. Approximately 125 REALTORS® attended the event in Harrisburg, which brings them together with lawmakers.
House Democratic Leader Representative H. William DeWeese (D-Greene) was the keynote speaker at the opening of the seminar. DeWeese, known for his proclivity to inundate his audience with his voluminous vocabulary, updated members on the priorities of the State House for the remainder of the year.
Property tax reduction will continue to be a priority, according to DeWeese. “We’ve been trying for a long time – since the 1970s – to replace the current property tax system,” he added. “The wheels have been slothful but property tax reduction will be a number one priority. And people will buy more homes with the property taxes reduced.” DeWeese, who has been supportive of private property issues, added that he does not see the realty transfer tax as a means to support the reduced property taxes.
DeWeese said he supports the proposal for quarterly property tax payments, but he wouldn’t speculate on what would happen if it came to a vote.
He added that the eminent domain issue continues to be debated from many views; however, he sees the House as unwilling to give much property to eminent domain unless it is for public use such as schools, roads, etc.
And while the pace of the governmental process is slow at times, “we have a wonderful system with checks and balances in place,” he noted.
After DeWeese concluded, REALTORS® heard Pennsylvanians for Effective Government (PEG) President and Chief Executive Officer David W. Patti give an overview of the important political races in the upcoming Pennsylvania elections.
There will be 252 political races in Pennsylvania this fall: governor, lieutenant governor, United States senator, 19 congressmen, 25 state senators, 203 state representatives, and three special elections.
In the governor’s campaign, incumbent Democratic Governor Edward Rendell will face off against Republican candidate Lynn Swann. As governor, Rendell has a political history, having served as a district attorney and the former mayor of Philadelphia. Swann, on the other hand, has no voting record for people to look at and is running as the “fresh face, new ideas” candidate. Patti said polls show Swann doing well throughout Pennsylvania and Rendell’s popularity continuing to hold, particularly in the southeast.
Another large race in the state will be the race for one of the US Senate positions, placing incumbent Republican US Senator Rick Santorum against Democratic candidate Bob Casey, State Treasurer and former Auditor General.
Following the election update, two key components of the PAR Government Affairs program – REALTORS® Political Action Committee (RPAC) and Issues Mobilization – were discussed. Ellen Renish, RPAC Fund-raising chair, explained that RPAC provides funds to political candidates who are supportive of private property rights. In addition, RPAC funds help position REALTORS® as a political power in Harrisburg.
Guy Matteo, chair of PAR’s Issues Mobilization Committee, described how the committee supports and opposes issues which affect private property rights and homeownership.
Lehigh Valley Association of REALTORS® Government Affairs Director Ryan Conrad explained how Issues Mobilization funds helped his area defeat a proposed increase to the deed transfer tax, which was deemed detrimental to the real estate industry in the Lehigh Valley. The intense campaign included mailings, television coverage, radio spots and newspaper advertisements.
“We successfully defeated this issue,” Conrad noted. “And we couldn’t have done it without the support of PAR and NAR. This campaign was well worth it for the real estate industry in the Allentown area.”
Jane Saunders, senior NAR political representative, talked about national issues NAR is working on, including getting REALTORS® to notify their legislators that banks should not be allowed in real estate. Recently, the Office of the Comptroller of the Currency (OCC) issued an opinion that will allow three big banking conglomerates to engage in real estate development. “Congress should get off its duff and not allow regulatory agencies to run amok,” she commented.
She said NAR continues to support the Health Care for Small Business legislation as well (see page 12 for more information).
Saunders outlined how NAR supports political candidates through RPAC contributions and Opportunity Race materials. Opportunity Races support candidates through mailings and other grassroots movements.
State Senator Wayne Fontana (D-Pittsburgh), a REALTOR®, discussed his key to winning a special election last year. “My secret weapon was the REALTORS®,” he said. “There’s no question that they made a difference in the election.”
Jerry Speer, past PAR president and RPAC trustee, outlined how Fontana’s local association, REALTORS® Association of Metropolitan Pittsburgh (RAMP), assisted in his election campaign. RAMP provided billboards, posters, receptions, mailings and more to help with the campaign. In addition, RPAC provided funds to Fontana’s campaign.
“There are many pieces of legislation that affect our business,” Fontana commented. “Property tax reform, eminent domain, new construction codes, how taxes are collected, banks in real estate, predatory lending, and proposed increases in the realty transfer tax all affect our industry.”
“If you truly want to make a difference,” he continued, “get out and vote. Get involved in the Government Affairs Committee locally – or run for office.”
Renish, also chair of PAR’s Legislative Committee, and PAR’s Government Affairs Director Derenda Updegrave updated those attending on the priorities of the committee. Members were encouraged to discuss these issues with their legislators during their hill visits.
Legislative priorities include amendments to the Real Estate Licensing and Registration Act (RELRA), right of rescission and eminent domain code. (Specifics on these issues are covered on page 10.)
REALTORS® had the opportunity to informally discuss some of these issues with approximately 50 lawmakers during a well-attended evening reception. (For photos of this event, visit the PAR Web site at www.parealtor.org.)
Concluding the formal portion of the seminar was a legislative panel discussion on Wednesday. Four legislators discussed issues facing state government and the real estate industry.
Senator Lisa M. Boscola (D-Northampton) noted that it does make a difference when REALTORS® contact their legislators. She specifically referenced the realty transfer tax (RTT), “You have to be on guard. This is always going to be an area where some legislators look for extra income. I see no relationship between RTT and mass transit.”
Senator John R. Gordner (R-Northumberland) agreed and added, “RTT is not really an issue for the Senate.”
Representative Mario J. Civera Jr. (R-Delaware) said property tax reform is a difficult issue to tackle. “We all represent different types of districts and we all have different ideas of what will work in our area. It’s not that we don’t know what we’re doing. It’s hard to get that many people – 203 representatives and 50 senators – to compromise. And the bottom line is this is not a tax reduction, it’s a tax shift. Our property tax system is antiquated.”
Civera, who did not support using a RTT increase to fund mass transit, said it wasn’t an easy decision, as his constituency uses mass transit. “We have to protect the current RTT for first time home buyers and low income buyers. We have to do what is right.”
Gordner also commented on eminent domain, and noted that legislation has been introduced in both the Senate and the House. “I don’t want to discourage getting rid of blight, but the government shouldn’t have the right to take private property unless it is for public use.”
Representative Stephen H. Stetler (D-York) said he wants to be cautious about any proposed eminent domain legislation. “I think we should be careful of legislation and concerned about the unintended consequences.”
REALTORS® attending the Government Affairs Seminar were given a new button which states “I’m a Pennsylvania REALTOR® and I vote.” The buttons were worn during the legislative reception and visits with legislators on Capitol Hill, and served to remind legislators of the voting power of REALTORS®.
For more information on the Government Affairs program and issues facing the industry, visit the PAR Web site at www.parealtor.org.