SENATE PASSES $2 TRILLION PACKAGE
The Senate passed a $2 Trillion Aid Package last night. The bill goes to the U.S. House and then to the President. This bill is significant in that it contains provisions for the self-employed and independent contractors. Read the latest update from NAR
The Senate passed a $2 Trillion Aid Package last night. The bill goes to the U.S. House and then to the President. This bill is significant in that it contains provisions for the self-employed and independent contractors. Read the latest update from NAR
LEGAL HOTLINE LAWYER ANNIE FITZSIMMONS
& NWMLS LEGAL COUNSEL JUSTIN HAAG
March 26, 2020
WR Legal Hotline Lawyer Annie Fitzsimmons and NWMLS Legal Counsel Justin Haag have put together this list of frequently asked questions to help us all understand how Governor Inslee's “Stay Home, Stay Healthy” emergency order impacts real estate brokers and related professionals.Contrary to rumors, real estate has not been "shut down" but is working in limited capacity for the next two weeks as mandated by Governor Inslee. Real estate professionals are working to facilitate the 17,000 transactions currently in the pipeline and some of these questions may clarify what REALTORS® can and cannot do, as well as address some of the related industries we all rely upon to close a transaction. Washington REALTORS® has been working with the cabinet-level staff within the Governor's office but the Governor's order remains very clear about certain things. Please review the list of FAQs and if you have further questions, email comment@warealtor.org.
& NWMLS LEGAL COUNSEL JUSTIN HAAG
March 26, 2020
WR Legal Hotline Lawyer Annie Fitzsimmons and NWMLS Legal Counsel Justin Haag have put together this list of frequently asked questions to help us all understand how Governor Inslee's “Stay Home, Stay Healthy” emergency order impacts real estate brokers and related professionals.Contrary to rumors, real estate has not been "shut down" but is working in limited capacity for the next two weeks as mandated by Governor Inslee. Real estate professionals are working to facilitate the 17,000 transactions currently in the pipeline and some of these questions may clarify what REALTORS® can and cannot do, as well as address some of the related industries we all rely upon to close a transaction. Washington REALTORS® has been working with the cabinet-level staff within the Governor's office but the Governor's order remains very clear about certain things. Please review the list of FAQs and if you have further questions, email comment@warealtor.org.
WHAT THE GOVERNOR'S EMERGENCY ORDER MEANS FOR REALTORS®
by Kitty Wallace, WR President | Mar 23, 2020
As you are likely aware, this evening Governor Inslee issued a statewide “Stay Home, Stay Healthy” emergency order to further limit the spread of the COVID-19 virus.
The order will be effective for at least two weeks, and requires that people remain in-home, except for certain necessary personal activities like grocery shopping or obtaining health care. The order also designates specific “Essential Critical Infrastructure” operations that are not subject to the order but must observe social distancing, based largely on recent federal guidelines from the Department of Homeland Security.
The Governor’s release states “Business closures must happen 48 hours after Gov. Inslee signs the order. Many businesses can, and should, continue using telework.”
Real estate businesses are not included in the “Essential Critical Infrastructure” designation, but can remain in operation using electronic and remote functions.
by Kitty Wallace, WR President | Mar 23, 2020
As you are likely aware, this evening Governor Inslee issued a statewide “Stay Home, Stay Healthy” emergency order to further limit the spread of the COVID-19 virus.
The order will be effective for at least two weeks, and requires that people remain in-home, except for certain necessary personal activities like grocery shopping or obtaining health care. The order also designates specific “Essential Critical Infrastructure” operations that are not subject to the order but must observe social distancing, based largely on recent federal guidelines from the Department of Homeland Security.
The Governor’s release states “Business closures must happen 48 hours after Gov. Inslee signs the order. Many businesses can, and should, continue using telework.”
Real estate businesses are not included in the “Essential Critical Infrastructure” designation, but can remain in operation using electronic and remote functions.
While we are disappointed that our request to be included in this designation was denied, Washington REALTORS® remains in ongoing communication with the Governor’s Office and state agencies to ensure that real estate and associated business services can continue in operation. We will seek clarification of the Order and necessary flexibility so that real estate operations can continue while observing the Governor’s Order and social distancing guidelines. For example, immediately after announcing the Order, the Governor’s Office communicated to us that escrow services can likely continue as a necessary financial service.
The Governor’s Office has also committed to appoint a member of his staff to work with us to address consumer and industry impacts. We need input from REALTORS® as to the most critical issues facing you and your clients over these next few weeks – such as ensuring that sales now under contract can close, and additional steps to enable remote and electronic real estate services.
Please send us your thoughts on the most critical issues to address, via email at comment@warealtor.org.
This information is based on preliminary review of the Order, and will likely be modified as additional clarification occurs. Washington REALTORS® deeply appreciates the innovation, leadership, and compassion being demonstrated by our members during this difficult time. Look for more information tomorrow morning.
Kitty Wallace, WR President
Steve Francks, WR CEO
The Governor’s Office has also committed to appoint a member of his staff to work with us to address consumer and industry impacts. We need input from REALTORS® as to the most critical issues facing you and your clients over these next few weeks – such as ensuring that sales now under contract can close, and additional steps to enable remote and electronic real estate services.
Please send us your thoughts on the most critical issues to address, via email at comment@warealtor.org.
This information is based on preliminary review of the Order, and will likely be modified as additional clarification occurs. Washington REALTORS® deeply appreciates the innovation, leadership, and compassion being demonstrated by our members during this difficult time. Look for more information tomorrow morning.
Kitty Wallace, WR President
Steve Francks, WR CEO
Gold Award Recipients: (top) Elizabeth Miller, Jan Ellingson, Shawn Danley, Kelli Lang, Leah Courage, Gina Davis, John Prosser, Mel Foley, Kyle Brown, Bob Hyde, Erik Pedersen, SaraBeth Owens, Shalyce Pocock, Kristine Stultz. (bottom) Megan O'Bryan, Stacy LaCount, Karen Everett, Debbie Macy, Nicole Haun, Dominic Pettruzzelli, Paul Weisz. (Not pictured: Becky Elde, Scott Friedl)
Silver Award Recipients: Laura Kaestner, Sara Fish, Linda Eastman, Spencer Roozen, Stacy Anderson, Rodney Helgeson, Charlene Janz, Scott Farley, Terry-Jo Norman, Chad Paulsen, Bobby Wakeland. (Not pictured: Jeff Ingman)
Bronze Award Recipients: (Top Row) Ivana Wood, Jackie Stone, Elva Hunter, Jones Atterberry, Adam Baldwin, Tara Crabtree, Karen Petersen, DiAnn Sager, Christine Mays, Ron Wortham. (Bottom Row) Kristin Tuttle, Wendy Belanger, Halsey Johns, Laura Bird, Jodi Dynes. (Not Pictured: Carla Fischer, Holly Hilts)
2019 Installation and Awards Banquet
Thank you to our wonderful sponsors for making this a special night each year!
Gold Sponsors: Chicago Title Company
Farmers Ins, Mike Gubrud Agency
Silver Sponsors: Keller Williams Western Realty
Umpqua Bank
WIN Home Inspection
Dessert Sponsor: The Real Estate Book
Toast Sponsor: Homebridge Financial
Gold Sponsors: Chicago Title Company
Farmers Ins, Mike Gubrud Agency
Silver Sponsors: Keller Williams Western Realty
Umpqua Bank
WIN Home Inspection
Dessert Sponsor: The Real Estate Book
Toast Sponsor: Homebridge Financial
Thank you to all who supported and participated in this year's NPSAR Charity Golf Tournament on Aug 15th by sponsoring, playing, or volunteering!
We are always proud and excited to support two great community programs; Skagit Habitat for Humanity and Friendship House, and also benefit our annual Brandon Koetje and George Koetje Scholarships.
We look forward to seeing all of you next summer!
We are always proud and excited to support two great community programs; Skagit Habitat for Humanity and Friendship House, and also benefit our annual Brandon Koetje and George Koetje Scholarships.
We look forward to seeing all of you next summer!
FHA Issues New Condominium
Approval Rule
WASHINGTON - In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.
FHA ISSUES NEW CONDOMINIUM APPROVAL RULE
Comprehensive policy revisions include ability to approve individual units in nonapproved condo projects
WASHINGTON - In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.
Designed to be flexible and responsive to market conditions, FHA's new condo rule and the new Condominium Project Approval section of the Single Family Housing Policy Handbook, provide a comprehensive revision to FHA condominium project approval policy. In particular, the new policy will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective October 15, 2019. Read FHA's new condominium approval regulation.
FHA's new condominium policy is part of a broader Administration objective to reduce regulatory barriers that currently restrict affordable homeownership opportunities. FHA's new rule:
HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”
The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA's mortgage insurance programs. As a result of FHA's new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
Single Family Policy Handbook Guidance
FHA's new Single Family Handbook sections published today provide the additional requirements that lenders and other industry participants need in order to implement FHA's new policy, including requirements for single-unit approvals, minimum owner occupancy requirements, and commercial/non-residential space limits. Read FHA's changes to its Single Family Handbook.
Single-Unit Approvals
As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved. An individual unit may be eligible for Single-Unit Approval under the following conditions:
FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.
FHA Insurance Concentration in Condominium Projects
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.
Commercial/Nonresidential Space Limits
FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project's total floor area.
###
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available on the Internet
at www.hud.gov and https://espanol.hud.gov.
Comprehensive policy revisions include ability to approve individual units in nonapproved condo projects
WASHINGTON - In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first-time buyers, the Federal Housing Administration (FHA) today published a long-awaited final regulation, and policy implementation guidance, which establish a new condominium approval process.
Designed to be flexible and responsive to market conditions, FHA's new condo rule and the new Condominium Project Approval section of the Single Family Housing Policy Handbook, provide a comprehensive revision to FHA condominium project approval policy. In particular, the new policy will allow certain individual condominium units to be eligible for FHA mortgage insurance even if the condominium project is not FHA approved. The polices become effective October 15, 2019. Read FHA's new condominium approval regulation.
FHA's new condominium policy is part of a broader Administration objective to reduce regulatory barriers that currently restrict affordable homeownership opportunities. FHA's new rule:
- Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing;
- Extends the recertification requirement for approved condominium projects from two to three years;
- Allows more mixed-use projects to be eligible for FHA insurance.
HUD Acting Deputy Secretary and FHA Commissioner Brian Montgomery added, “Today we are making certain FHA responds to what the market is telling us. This new rule allows FHA to meet its core mission to support eligible borrowers who are ready for homeownership and are most likely to enter the market with the purchase of a condominium.”
The vast majority (84 percent) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5 percent are approved to participate in FHA's mortgage insurance programs. As a result of FHA's new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
Single Family Policy Handbook Guidance
FHA's new Single Family Handbook sections published today provide the additional requirements that lenders and other industry participants need in order to implement FHA's new policy, including requirements for single-unit approvals, minimum owner occupancy requirements, and commercial/non-residential space limits. Read FHA's changes to its Single Family Handbook.
Single-Unit Approvals
As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved. An individual unit may be eligible for Single-Unit Approval under the following conditions:
- The individual condominium unit is located in a completed project that is not approved;
- For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with fewer than 10 units may have no more than two FHA-insured units.
FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.
FHA Insurance Concentration in Condominium Projects
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.
Commercial/Nonresidential Space Limits
FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project's total floor area.
###
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available on the Internet
at www.hud.gov and https://espanol.hud.gov.
Tackling the Housing Affordability Crisis
The lack of housing opportunities have reached crisis level in Washington State. This issue affects us all, creating a burden on home owners, renters, employers and on. Washington REALTORS® is pleased to announce a coalition comprised of non-profits and for profits called "Unlock the Door for Affordable Homeownership". Together, we're working with our elected officials on legislation surrounding condo liability, buildable lands, zoning requirements and more.
For more information, visit www.unlockthedoorwa.com.
Review our Legislative Priorities
For more information, visit www.unlockthedoorwa.com.
Review our Legislative Priorities
Tax Deductions for Homeowners: How the New Tax Law Affects Mortgage Interest
Tax season is upon us once again, and to make it even more interesting this year, the tax code has changed — along with the rules about tax deductions for homeowners. The biggest change? Many homeowners who used to write off their property taxes and the interest they pay their mortgage will no longer be able to. Stay calm. This doesn’t automatically mean your taxes are going up. Here’s a roundup of the rules that will affect homeowners — and how big of a change to expect.
Related: Are Closing Costs Tax Deductible?
Standard Deduction: Big Change
The standard deduction, that amount everyone gets, whether they have actual deductions or not, nearly doubled under the new law. It’s now $24,000 for married, joint-filing couples (up from $13,000). It’s $18,000 for heads of household (up from $9,550). And $12,000 for singles (up from $6,500).
Many more people will now get a better deal taking the standard than they would with their itemizable write-offs.
For perspective, the number of homeowners who will be able to deduct their mortgage interest under the new rules will fall from around 32 million to about 14 million, the federal government says. That’s about a 56% drop.
So will you be able to itemize, or will you be in standard deduction land? This calculator can give you an estimate.
If the answer is standard deduction, you’ll be pleased to know that tax forms are easier when you don’t itemize, says Liddiard. Find instructions for IRS Form 1040 here.
Related: Are Closing Costs Tax Deductible?
Standard Deduction: Big Change
The standard deduction, that amount everyone gets, whether they have actual deductions or not, nearly doubled under the new law. It’s now $24,000 for married, joint-filing couples (up from $13,000). It’s $18,000 for heads of household (up from $9,550). And $12,000 for singles (up from $6,500).
Many more people will now get a better deal taking the standard than they would with their itemizable write-offs.
For perspective, the number of homeowners who will be able to deduct their mortgage interest under the new rules will fall from around 32 million to about 14 million, the federal government says. That’s about a 56% drop.
So will you be able to itemize, or will you be in standard deduction land? This calculator can give you an estimate.
If the answer is standard deduction, you’ll be pleased to know that tax forms are easier when you don’t itemize, says Liddiard. Find instructions for IRS Form 1040 here.
The 2018 Installations & Awards Banquet
From the Desk of Ron Wortham
NPSAR Government Affairs Director
The National Flood Insurance Program (NFIP)
Without Congressional action, the National Flood Insurance Program (NFIP) will lapse at midnight on Friday, November 30, 2018. NAR is making every effort to secure a long-term reauthorization before then. Here are the answers to some frequently asked questions.
What are the prospects for an extension?
All early indications point to an on-time extension of the NFIP. Congressional leaders are engaged. Legislation to extend the program has been introduced, and there are multiple pathways to passage before November 30th. All previous extensions were on time or within a few days of the deadline minimizing the market impacts.
Why is it taking so long?
This is not a simple up-and-down vote on an extension bill by itself. Rather, the extension is expected to be attached to a broader legislative vehicle, possibly the Omnibus bill to fund the government. Because there are multiple moving parts, discussions have been on-going, and no decisions are likely to be made until closer to the deadline.
What is NAR doing?
NAR will continue to closely monitor the situation and is prepared to escalate our grassroots efforts if it becomes necessary. We should know more on Monday, November 26th.
What happens during a lapse?
The NFIP cannot sell or renew flood insurance policies. The NFIP can pay claims as long as funds are available, but may not borrow more from the U.S. Treasury. The federal requirement to purchase flood insurance is also suspended during a lapse, which means it is entirely up to lenders to decide whether to make loans in special flood hazard areas while flood insurance is not available from the NFIP.
What about my client's flood insurance?
Austin Perez
Senior Policy Representative | Advocacy
NATIONAL ASSOCIATION OF REALTORS® | Washington DC
Office: 202.383.1046
NPSAR Government Affairs Director
The National Flood Insurance Program (NFIP)
Without Congressional action, the National Flood Insurance Program (NFIP) will lapse at midnight on Friday, November 30, 2018. NAR is making every effort to secure a long-term reauthorization before then. Here are the answers to some frequently asked questions.
What are the prospects for an extension?
All early indications point to an on-time extension of the NFIP. Congressional leaders are engaged. Legislation to extend the program has been introduced, and there are multiple pathways to passage before November 30th. All previous extensions were on time or within a few days of the deadline minimizing the market impacts.
Why is it taking so long?
This is not a simple up-and-down vote on an extension bill by itself. Rather, the extension is expected to be attached to a broader legislative vehicle, possibly the Omnibus bill to fund the government. Because there are multiple moving parts, discussions have been on-going, and no decisions are likely to be made until closer to the deadline.
What is NAR doing?
- NAR is in regular communication with Congressional leaders.
- NAR is coordinating with a broad coalition of industry groups. Read our most recent coalition letter.
- Hundreds of members of Congress have been contacted about the importance of NFIP since August.
- NAR has raised the profile of the issue with multiple calls for action, talking points, op-eds and paid ads.
- Click here for the latest example of the heightened coverage the press is giving this issue.
- Attached is an advanced copy of President Smaby's Op-Ed soon to be published in The Hill newspaper, which is read by many members of Congress and their staff.
NAR will continue to closely monitor the situation and is prepared to escalate our grassroots efforts if it becomes necessary. We should know more on Monday, November 26th.
What happens during a lapse?
The NFIP cannot sell or renew flood insurance policies. The NFIP can pay claims as long as funds are available, but may not borrow more from the U.S. Treasury. The federal requirement to purchase flood insurance is also suspended during a lapse, which means it is entirely up to lenders to decide whether to make loans in special flood hazard areas while flood insurance is not available from the NFIP.
What about my client's flood insurance?
- Existing NFIP policies will remain in effect until their expiration date (which is the renewal date plus a 30-day grace period), and claims will continue to be paid as long as FEMA has the funds on hand.
- Existing policies may also be "assigned" to/assumed by property buyers during a lapse (see p. 3 here).
- Renewal policies are generally issued as long as the application is received prior to a lapse and the premium is received within the 30-day grace period. Other renewals must wait for reauthorization.
- Private flood insurance backed by a source other than NFIP (e.g., Lloyd's of London) are not affected by a lapse. Click here and here for some options.
- During a lapse, some lenders may opt to make special-flood-hazard-area loans without NFIP insurance, but they must be willing to bear the full risk of their decision and few do in NAR's experience.
Austin Perez
Senior Policy Representative | Advocacy
NATIONAL ASSOCIATION OF REALTORS® | Washington DC
Office: 202.383.1046
