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Is NAR seeking to push for Carson’s nomination to head HUD?

(POLITICS) Ben Carson’s initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now and is NAR for or against him?

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NAR strongly backs Dr. Carson’s nomination

When President-Elect Donald Trump put forth Dr. Ben Carson’s name as the nominee for Secretary of Housing and Urban Development, NAR President William E. Brown said, “While we’ve made great strides in recent years, far more can be done to put the dream of homeownership in reach for more Americans.”

At the time of nomination, the National Association of Realtors (the largest trade organization in the nation) offered a positive tone regarding Dr. Carson and said the industry looks forward to working with him. But does that hold true today?

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The confirmation hearings yesterday were far less controversial than one would expect, especially in light of how many initially reacted to his nomination. Given his lack of experience in housing, questions seemed to often center around protecting the LGBT community and veterans, both of which he pledged to support.

In fact, Dr. Carson said the Fair Housing Act is “one of the best pieces of legislation we’ve ever had in this country,” promising to issue a “world-class plan” for housing upon his confirmation.

NAR’s position on Dr. Carson

As we await the Senate Committee on Banking to make a decision regarding Dr.  Carson’s confirmation, we look to NAR for a pulse of what the real estate industry feels regarding the process and potential nomination, and all signs are positive.

President Brown tells us, “Dr. Carson has shown a clear commitment to ensuring all Americans have access to a safe and affordable place they can call home. With that in mind, we’re urging members of the U.S. Senate to swiftly confirm him as Secretary of HUD.”

“It’s no small task setting policies that support homeownership and real estate investment,” Brown continued, “and Dr. Carson is to be commended for taking on the challenge. We look forward to working with Dr. Carson in his new capacity on behalf of that important mission.”

In a letter obtained exclusively by The Real Daily, NAR further urges the Committee to expedite Dr. Carson’s nomination:

 Dear Chairman Crapo and Ranking Member Brown: The 1.2 million members of the National Association of REALTORS® (NAR) offer our support for Dr. Ben Carson as the Secretary of the Department of Housing and Urban Development (HUD). NAR urges the Senate Banking Committee to approve his nomination and move it quickly to the floor of the Senate. His innate understanding of the key role that housing plays in the health of individuals and communities will be a great asset at HUD. HUD programs play a critical role in ensuring that all Americans have access to a safe, decent, affordable home. HUD’s FHA mortgage insurance program provides access to reliable, safe mortgage financing to all qualified borrowers in all economic times. In particular, FHA provides valuable access to first time homebuyers and minorities. In FY 2016, first-time homebuyers represented 82 percent of all FHA purchase originations, and over 33 percent of FHA endorsements went to minority buyers. NAR believes that small changes like the recent premium reduction can strengthen the program, and provide greater access to financing needed to increase our historically low homeownership rate. In his confirmation hearing, Dr. Carson strongly supported the mission of the FHA and the need for such a program. At the same time, HUD’s multifamily programs provide affordable rental housing for millions of families nationwide. The private sector simply does not provide enough affordable housing on its own, and without the subsidies provided to residents, these families would find it difficult, if not impossible, to find safe, decent housing. Dr. Carson has stated his support for rental assistance and the important role it plays for low-income families. He also has voiced his support for the Low-Income Housing Tax Credit, which has been the sole tool for private development of affordable housing. The National Association of REALTORS® looks forward to working with Dr. Carson in his new role, and urges your immediate support for his confirmation. Sincerely, William E. Brown 2017 President, National Association of REALTORS®

#CarsonHUD

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

Politics

FCC looking into how landlords are getting around predatory ISP laws

(NEWS) It became illegal in 2008 for landlords to restrict ISP access to their “partners,” but the FCC is looking into loopholes allowing the practice to persist.

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The Federal Communications Commission (FCC) recently announced it is seeking comments on broadband access in multi-tenant buildings.

The FCC wants to gain a better understanding of consumer choice and pricing in apartment and office buildings. Even though most cities have multiple internet service providers (ISPs), renters are often stuck with only one option due to agreements between ISPs and landlords. 


The Wireline Competition Bureau is seeking comments about:

  • Revenue sharing agreements between landlords and ISPs, which incentivizes the landlord to steer tenants to a certain provider.
  • Exclusive wiring agreements in which a landlord says only one ISP can provide service to the building.
  • Exclusive marketing agreements in which only one ISP is allowed to market in the building.

In 2008, the FCC banned exclusive contracts for telecommunications services in apartment buildings.

Even so, ISPs and landlords have found ways to circumvent the rules, preventing tenants from having internet options. A landlord is prohibited from contracting with an ISP for sole service to a building.

One way to get around this rule is to deed ownership of the wiring to the landlord, allowing the landlord to decide which companies have access or not. The FCC rules do not apply, because the landlord owns the wiring.

ISPs can also enter into an agreement with landlords to prevent advertising in the building. The landlord can impose fees on companies that need access to install new wiring. All of these practices block competition for tenants, which drives up prices and limits options, and is the focus of the FCC’s push.

The FCC wants to hear from consumers who have dealt with broadband building restrictions. Tenants, landlords, real estate agents and even ISP owners can comment on the FCC proceedings for 30 days following the public notice.

If you’re a property owner, it’s time to review your agreements in this area to make sure you don’t end up in the FCC’s crosshairs now or in the future.

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Politics

Housing supply crisis: NAR insists governments take ‘once-in-a-generation’ action

(POLITICS) After years of sounding the alarm bell regarding housing supply and demand imbalances, NAR is pushing local and federal governments to respond “immediately.”

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The National Association of Realtors (NAR) has repeatedly beat the drum for over six years regarding housing supply, so much so that perhaps real estate practitioners have simply accepted it as the ongoing problem that it is. But in a new report by Rosen Consulting Group, released by NAR, housing supply is officially in crisis across all regions.

NAR Chief Economist, Dr. Lawrence Yun has reiterated in most reports for years that the only relief for increasingly tight inventory levels lies an increase in housing starts, placing industry hopes firmly in the hands of American homebuilders who are strapped with lending standards that shifted after the 2008 housing crash, now paired with labor shortages and astronomically skyrocketing pricing on materials.

NAR reports that after decades of under-building and under-investment, housing is now in more of a “dire” status than previously expected. The report, “Critical Infrastructure: Social and Economic Benefits of Building More Housing” asserts that local and federal policymakers must consider “once-in-a-generation” action and that “no matter the approach,” action must be “immediate.”

For an organization that typically employs very tempered wording, this aggressive language is alarming.

As bloggers scream “housing bubble” and analysts warn the script looks nothing like 2008, the timing of this report and the alarm bells being run by NAR are not to be ignored.

“The state of America’s housing stock… is dire, with a chronic shortage of affordable and available homes [needed to support] the nation’s population,” the report asserts. “A severe lack of new construction and prolonged underinvestment [have led] to an acute shortage of available housing… to the detriment of the health of the public and the economy. The scale of underbuilding and the existing demand-supply gap is enormous… and will require a major national commitment to build more housing of all types.”

Dr. Yun notes “It’s clear from the findings of this report and from the conditions we’ve observed in the market over the past few years that we’ll need to do something dramatic to close this gap” between hopeful homebuyers and tightened supply levels.

The report urges lawmakers to “expand access to resources, remove barriers to and incentivize new development, and make housing construction an integral part of a national infrastructure strategy.”

NAR President Charlie Oppler, says that adequate increases in housing construction this decade would add an estimated 2.8 million American jobs and $50 billion in new, nationwide tax revenue. “Additional public funding and policy incentives for construction will very clearly provide huge benefits to our nation’s economy, and our work to close this gap will be particularly impactful for lower-income households, households of color and millennials.”

Earlier this year, NAR encouraged policymakers to reform zoning and permitting policies, also recommending other policies to address national housing supply shortages.

At that time, it sounded like an urgent request. Today, we hear an alarm bell, a demand.

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Politics

Evictions are mounting, affecting renters and landlords

(POLITICS) Eviction moratoriums both ending and extending are causing ripple effects of economic trouble for renters and landlords.

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The United States continues to struggle to find a balance between public health protections to slow the spread of coronavirus and economic measures to prevent Americans from bankruptcy as a result.

While eviction bans initially provided relief for renters who lost jobs and couldn’t afford rent payments, the effects bounced up to property owners who lost those payments. Though the first coronavirus stimulus package renter protections extended to landlords, property owners say banks are still expecting mortgage payments as the relief expires. Many worry the expiration of the additional $600 added to unemployment will exacerbate the problem.

In Texas, the statewide eviction moratorium ended in May. Unlike other major cities which chose to use funds from the federal coronavirus stimulus package to pay for legal representation for tenants, Houston let local protections for tenants expire with the moratorium.

In Houston, there is little recourse for tenants served with an eviction notice. Tenants only have five days to appeal, and there is no legal defense for a tenant who can’t pay at least one month’s rent to the court registry. As a result, tenants facing eviction often surrender and leave. Unfortunately, the result is tenants moving in temporarily with friends and family while they look for new housing, causing overcrowding and presenting a health risk to everyone involved. The CDC has specifically named “poverty and crowding” as a top risk factor for COVID-19.

However, not all evictions are the result of unpaid rent. Marie Baptiste, a landlord in Randolph, Massachusetts reported to the Boston Globe that she has lost recourse against a tenant who not only stopped paying rent long before the pandemic started, but caused water damage and a rat infestation. The tenant argues the structural problems were her reason for withholding rent.

Consequently, Baptiste says she is now $19,000 in the hole for this property, and can do nothing about it. In July, Governor Charlie Baker extended the eviction moratorium to mid-October. In a survey conducted by MassLandlords, one-fifth of landlords are uncertain how they will keep up with mortgage payments. Many fear they will be forced to sell or face foreclosure without relief.

Without protections for both tenants and individual property owners, the eviction moratoriums could have long-term consequences for housing in large cities. Urban centers, already struggling with rent inflation and lack of affordable units as large developers take over, could see this problem exacerbated for years to come. It is imperative that the next stimulus package consider how relief for both renters and property owners can be leveraged to prevent these challenges.

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