In this issue:
- Aurora Approves Property Registration Ordinance
- Federal Heights set to Consider Rental Property Inspection Plan
- Centennial Charrette on Urban Redevelopment set for this Week
- DERA to Interview Candidates for Castle Rock Spring Election
- State Legislative Update
- NAR Fights to Protect Mortgage Interest Deductibility
Aurora Approves Property Registration Ordinance
In a unanimous vote on Monday, February 23rd Aurora City Council adopted an ordinance requiring registration of foreclosed properties with the city. The Aurora Association of REALTORS® opposed this ordinance, citing the undue burden that would ultimately be placed on purchasers of foreclosed properties, as well as the back end liability likely to be seen by real estate professionals. While the ordinance did ultimately pass, its final form was a significant improvement from the early drafts of this proposal. Aurora changed the measure to not treat vacant foreclosed properties to a higher codes compliance standard than occupied properties and also agreed to streamline the process the city uses to communicate with lenders, real estate professionals, title companies, etc regarding these properties. The ordinance will be reviewed again in the summer of 2012 to evaluate its effectiveness.
Federal Heights set to Consider Rental Property Inspection Plan
The City of Federal Heights will hold a public hearing before final consideration of a rental property inspection ordinance tomorrow, March 3rd at 7:00 PM. The North Metro Denver REALTOR® Association (NMDRA) has argued that the ordinance is wrought with problems and should not be passed. The proposal would mandate inspections by the city of rental properties of more than three units and allow reasonable force for entry into those properties. Opponents contend that other cities have found this ordinance to be ineffective, and that enforcement in a tightening economy is becoming more and more difficult.
Centennial Charrette on Urban Redevelopment Set for This Week
The City of Centennial is in the process of rewriting its land development codes (more information found here: http://www.centennialcodeupdate.com/). This week, the city will host a three day Charrette at the Centennial Civic Center to discuss and promote redevelopment plans for the SW corner of Arapahoe Road and Interstate 25. The results of the Charrette will be used to establish the regulations that will apply to the development and redevelopment of property in the area. On Wednesday March 4th there will be a public meeting from 6-8 PM, on Thursday March 5th the public is invited to attend the update with the Land Development Code Rewrite Advisory Team and on Friday from 4 – 6:30 there will be a public open house and preview of the work.
Interested REALTORS® are encouraged to attend any of these meetings at the Centennial Civic Center (13133 E. Arapahoe Rd).
DERA to Interview Candidates for Castle Rock Spring Election
On Monday, March 16th, members of the Douglas/Elbert REALTOR® Association will interview up to nine candidates for two Town of Castle Rock city council seats. The interview team will question candidates on their views on such real estate related topics as foreclosure prevention, property taxes, private property rights, and city services relating to homeowners. If you are interested in becoming a member of the interview team, please contact me at nbokone@gmdra.com. No prior experience is necessary, and it’s a great way to become familiar with the candidates seeking office in your backyard.
State Legislative Update
Disclosure Mandates. HB-1091 “Carbon Monoxide Alarms in Residential Properties” This bill will require carbon monoxide alarms within 10 feet of each bedroom and make it a crime to remove the batteries except to change them. CAR convinced the sponsors to add several amendments to absolve Realtors® from liability. One will require listing contracts to include a clause notifying the seller of his responsibility to install the required carbon monoxide monitors. The second amendment releases a property owner, agent or installer from liability provided the monitors are installed according to the manufacturer’s instructions. Once the amendments were approved, CAR adopted a support position. The bill has passed in both the House and the Senate. Because the bill includes amendments, it will go to a conference committee before it is sent to the governor for signature.
HB-1247 “Homebuyer’s Energy Right to Know Act” CAR opposes this bill, which requires a seller to furnish 12 months’ worth of utility bills to the buyer. The intent of the bill, which was initiated by the Governor’s Energy Office, is to provide the purchaser with information about the home’s energy efficiency. Although a broker won’t have liability if the bill passes, it creates an unnecessary mandate on an already common practice among Realtors® and may leave buyers with a false sense of assurance relating to energy usage. CAR issued a call-to-action on Feb. 20, after the bill passed out of committee to be considered by the House of Representatives. It has been laid over until March 6th.
NAR Fights to Protect Mortgage Interest Deductibility
A small section President Obama’s budget proposal released late last week has the potential to become a major impediment to a recovery in real estate markets across the nation. As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. NAR believes this proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.
NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. This week, NAR will be expressing concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal. They will continue to provide us updates as conditions warrant.
Nick Bokone
Government Affairs Director
Greater Metro Denver REALTOR® Associations
303-807-4067
nbokone@gmdra.com
www.gmdra.com
