Category Archives: Government Affairs

Secretary outlines state budget process

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Pennsylvania is facing a number of difficult budget challenges, both short- and long-term, according to the commonwealth’s Budget Secretary Randy Albright. The secretary and Sen. Pat Browne (R-Lehigh) addressed Realtors® at PAR’s Day on the Hill this week in Harrisburg.

One of the major debt issues Pennsylvania faces is the state employees/teachers pension fund. Albright said delaying making decisions on this issue continues to raise the debt pension level, which is currently at $62 billion.

Browne agreed, saying the state’s risk exposure was too high with the state pensions and it’s not in line with the private sector. “We need to make a real effort to move the commonwealth in that direction for the first time. It’s a burden that the state can no longer carry.”

“We continue to look at short-term fixes, but delay long-term solutions,” Albright said. “It’s those kind of funding decisions we can’t put off. We’ll need to work together as the legislature and the governor.”

The state has been facing an unexpected downturn in revenues, according to Albright. “The state missed $200 million in income last month and $680 million to date in this budget.”

“We’re working to find fresh ways to continue to deliver services,” Albright said. “We’re asking departments to take a hard look at what they’re doing now that we may not have to do.” Through those efforts, the state has identified $2 billion in savings by streamlining services.

“We’re working to maintain a level of service or providing an even better level,” he added.

An announced prison closing in Pittsburgh will save $100 million and combining four state human services agencies will save another $100 million.

Albright said they will look to close a loophole that allows businesses to avoid paying taxes on storage fees, as consumers are charged taxes.

Browne said the general assembly and the governor’s office have different approaches to the budget process. He said the budget has an approximately $3 billion hole.

“Our conversations need to be more than what’s needed to close this year’s budget,” he said. “Pennsylvania is carrying too much risk. And we need to address some of the long-term challenges.”

Browne said the Independent Fiscal Office estimates the state will face a $20 billion short fall in 2020, if some issues are not addressed.

He said one of the biggest challenges is human services, particularly with the growing number of senior citizens and their need for Medicare.

“It’s more expensive than what we can meet,” he said. “We need to provide services but get costs down.”

Browne added, “We need to make decisions to find a way to look toward the future. We want to continue to invest in our people.”

Realtors® advocate at the state capital

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We had a phenomenal turnout at PAR’s Day on the Hill event this week in Harrisburg. More than 100 Pennsylvania Realtors® met with 40 state legislators yesterday.

I can’t stress enough how important it is for Realtors® to meet with their legislators to explain how legislation could affect our clients, homeownership, the real estate industry and the state’s economy.

Realtors® focused their discussions on PAR’s key issues, which include:

House Bill 863 (Rothman, R-Cumberland), which would amend the Real Estate Licensing and Registration Act. PAR supported this legislation in the last legislative session and encouraged these amendments because it would enhance the level of service to consumers. The bill would incorporate the following requirements to RELRA: an additional 15 hours for salesperson pre-licensure education, allowing for a grandfathering process for those already enrolled in classes, a high school diploma or equivalent be required for licensure as a real estate salesperson, all courses for salesperson licenses be completed within 5 years prior to the date of taking and passing the exam, allowing for a grandfathering process for those already enrolled in classes, and allow licensees to conduct Broker Price Opinions with requirements. The House Professional Licensure Committee has scheduled a hearing on this bill in May.

House Bill 1001 (Helm, R-Dauphin), which would license home inspectors. This bill will set statewide standards for licensing home inspectors and standards for the home inspection report. PAR supports this legislation because property inspections have become a critical part of the transaction and should be regulated by the state to provide protection for consumers. The legislation will require home inspectors to be licensed by the Department of Labor and Industry and license applicants would have to: have a high school diploma or equivalent, complete a bureau-approved training program, pass a bureau-approved examination, and obtain liability insurance. Existing practitioners will be grandfathered. Renewal requires 16 hours of continuing education.

Seller’s Disclosure Issues – PAR has opposed numerous pieces of legislation over the past several legislative sessions pertaining to the Seller’s Property Disclosure. While the association understands the need for sellers to provide information to buyers, PAR believes that any amendments to the law should be addressed by the Pennsylvania Real Estate Commission, rather than by legislative action. Substantive policy changes to the seller’s disclosure should be made through the regulatory process, providing a balance between the seller’s requirements and the needs of the buyer to learn about material defects of a property.

Property Tax Assessment Reform – As the legislature considers property tax assessment reform, PAR urges it to consider several key points.  PAR supports a mandatory periodic reassessment not to exceed three years and an assessment system that is regulated by the state through a uniformity office. This entity would have the authority to oversee and enforce compliance, including adoption of a uniform and computerized mass assessment system, and a standard of training and continuing education to be instituted for assessors, appeals board members, auxiliary boards and any other individual that deals with assessment. The association believes an assessment system that is initially revenue neutral, yet allows for tax increases and decreases. In addition, PAR encourages a standardized appeals process that is fair and equitable, that does not rely on the sale of property as the sole basis for an assessment appeal by a taxing authority. The association also encourages the development of a funding mechanism, implemented and maintained by the state, whereby stakeholders (school districts, counties and municipalities) participate in the cost of reassessment in a proportionate manner.

Make the Realtor® Party voice heard

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Are you ready to respond?

NAR has highlighted several important federal legislative issues facing Realtors® this year. The three key issues are: reauthorizing the National Flood Insurance Program, tax reform including retaining the mortgage interest and property tax deductions, and the restructuring of Fannie Mae and Freddie Mac.

You can expect to learn more about these issues at NAR’s Legislative Meetings in Washington, D.C., May 15-20.

In the meantime, I urge you to be ready to respond to future calls-for-action by signing up for NAR’s Realtor® Party Mobile Alerts. With these important issues, you’ll want to make your voice heard and help our federal lawmakers understand how these issues affect homeowners.

To sign up, simply open a text message on your cell phone, use the number 30644 and text the word: REALTORS. You’ll only receive a text when a call-for-action is issued, which allows you to quickly send your response to your legislators. Or you can sign up online at the RealtorActionCenter.com.

Together, we can make the Realtor® voice heard.

Gov. Wolf met with Realtors® on Act 133

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Pennsylvania Realtors® met with Gov. Tom Wolf today for a ceremonial signing of Act 133 of 2016. The act amends the Municipal Code and Ordinance Compliance Act, originally enacted as Act 99 of 2000, which will change how some municipalities issue use and occupancy certificates. Act 133 took effect Jan. 2.

“The new legislation will prohibit municipalities from denying use and occupancy certificates due to point-of-sale inspection issues,” according to Hank Lerner, Esq., PAR director of law and policy. “Some municipalities were inappropriately withholding or impeding U&O certificates, leading to some real estate transactions being postponed or cancelled due to minor property maintenance violations.”

Realtors® sent more than 13,000 emails to state legislators urging them to support this legislation.

“We heard of numerous transactions being delayed or canceled due to municipalities denying the U&O certificates based on minor violations,” said 2016 PAR President Todd Polinchock. “We appreciate that state legislators heard our concerns for homebuyers and sellers and passed this legislation and that Gov. Wolf signed the bill when it arrived on his desk.”

“One of the provisions of Act 133 states that a violation found through a point-of-sale inspection cannot be used to deny a permit or to require pre-settlement repairs,” Lerner explained. “But the act also gives municipalities a permit structure that should help ensure necessary repairs are made in a timely fashion after transfer. These new amendments clarify the rights and responsibilities of both municipalities and property owners so these concerns don’t occur in the future.”

Municipalities cannot require repairs be made before the closing, according to Lerner. “The buyer and seller can certainly negotiate pre-settlement repairs if they choose, but it cannot be required. Regardless of the number or type of violations found in a municipal report, the municipality must issue a permit of some sort and can’t require repairs/renovations be completed as a condition of issuing the permit. However, while a permit can’t be withheld, the type of permit may depend on the type of violations that are found,” he said.

More detailed information is available at PARealtor.org. Members with clients experiencing issues with a municipality not following the amended code should contact their local government affairs director or field staff representative. They will be monitoring these situations throughout the state and providing information to PAR.