By Matthew Marks, Government Affairs Director, Greater Lehigh Valley REALTORS®
A comprehensive round-up of government affairs and advocacy issues impacting the real estate landscape at the local, state, and national levels. In this edition, we dive into the Q1 2024 legislative developments, policy changes, and regulatory updates (and more) that directly influence the world of real estate. From zoning ordinances and housing regulations at the local level to broader economic policies and federal housing initiatives, our aim is to provide members with a breakdown of what your Government Affairs Department(s) at each REALTOR® association level is doing for you and for real estate.
Local Issues
GLVR-PAC Supported Candidates Win Re-election
In the April primary election, Rep. Zach Mako and Rep. Bob Freeman, two REALTOR®-friendly incumbents who were endorsed by the Greater Lehigh Valley REALTORS® Political Action Committee trustees, were victorious in their bids for re-election. GLVR-PAC Committee members will reconvene late this summer to interview and endorse candidates and incumbents for the November general election.
RPAC
GLVR members have invested $20,049.70 in RPAC for 2024. This figure reflects 20.41% of membership contributing to our Political Action Committee. Click here to learn more about RPAC and why it matters to your business.
State Issues
Wholesaling Bill Moves in Senate
SB 1173 amends the Real Estate Licensing and Registration Act to define a “wholesale transaction” and requires those who conduct these transactions to obtain a real estate salesperson license. The legislation also requires specific disclosures in wholesale transactions. The legislation ensures that those engaging in wholesale transactions are required to have a real estate salesperson license, just as any other person who engages in the practice of real estate in Pennsylvania. It also allows consumers to have a clear understanding of the wholesale transaction and that they can cancel the contract at any time. Finally, consumers will now have an avenue of recourse if they feel they have been wronged in a wholesale transaction. The bill now sits in the House Appropriations Committee. For more information about the bill, visit: Bill Information – Senate Bill 1173; Regular Session 2023-2024 – PA General Assembly (state.pa.us)
National Issues
NAR to Congress: Update Capital Gains Tax Exclusion on Sales of Homes
U.S. tax law provides what was once a generous capital gains exclusion on the sale of a principal residence. Since 1997, this amount has been $250K for singles and $500K for those filing jointly. Over the past 27 years, home price inflation has eroded the value of these exemptions, especially for older homeowners who have lived in their home for 20 years or more. At a time when many of these homeowners are considering downsizing or moving to a retirement facility, they are facing gains well in excess of the exclusions, which can leave them owing many thousands of dollars in tax and reduce their ability to afford their new home. When an older homeowner decides not to sell, it limits the number of homes on the market, causing first-time homebuyers to face higher prices and more competition. Increasing the exclusion and indexing it for inflation removes this disincentive for current homeowners to sell, unlocking a segment of inventory previously unavailable to prospective buyers.