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FROM THE DESK OF JOHN RYNNE, GOVERNMENTAL AFFAIRS CHAIRMAN:
As commercial real estate professionals we know the preservation of property rights is essential. Governmental Affairs for NYSCAR is an important part of the organization. Our committee works with the New York State Association of Realtors (NYSAR) and National Association of Realtors (NAR) who both have a well organized structure to monitor state and federal legislation. At any one time there are 14,000-16,000 bills in the New York State Assembly and Senate. It’s important that our representatives know as much about property rights implications to any of these bills and are well informed before they vote. I remember a case of approximately 5 years ago when a NYS legislator from Rochester was on the wrong side of a real estate legislative bill. In fact, he was a cosponsor. After meeting with him, our group brought to his attention certain inconsistencies of the bill. Due to our information, he dropped his sponsorship and voted against the bill which was later defeated. Last year NYSAR blocked 13 of 15 bills they opposed. Out of the 7 NYSAR supported bills; 2 were passed by Assembly and Senate; one of which was being reviewed by the Governor. The rest were not enacted but were are still alive for next year.
NAR on a federal level is very active supported by it’s one million members. NAR is constantly monitoring Congress and the federal government on issues which affect property rights and the real estate industry. In regards to commercial real estate issues, NAR was instrumental in getting the U.S. Small Business Administration (SBA) to extend refinancing through the 504 program after 2012. For the first time small businesses can refinance some owner occupied commercial property into long term fixed loans. NAR successfully influenced the House of Representatives (House) regarding appropriation bills that would have implemented lead paint standards before testing kits were sufficiently available and increased double testing. Also, these bills would have allowed the regulation of C02 gases in office and apartment buildings and would have allowed expanding bodies of water and properties under the Clean Water Act. NAR’s influence blocked some of these derogatory Environmental Protection Agency (EPA) policies. Because of a personal meeting between NAR President Phipps and Jon Leibowitz who is head of the Federal Trade Commission(FTC); some onerous FTC provisions were changed. NAR’s actions tremendously reduced the liability and paperwork for real estate brokers in short sales.
Some substantial challenges still lie ahead including the depreciation of leasehold improvements from 15 years to 39 years which has not yet been settled. In addition, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) was going to enforce a rule which would require tenants to report on their balance sheet long term leases as a liability. This would have reduced the net worth of companies. Thus, the companies would reduce lease terms and as a result property values would be reduced. Because of NAR’s involvement, the FASB and IASB increased the public comment period on this important issue.
I’ve only scratched the surface on how important Government Affairs is for our industry, New York State and the nation. Get involved and keep abreast on these important issues and make a difference not only for the industry but America!
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