Russell W. RiggsSenior Regulatory Representative

National Association Of REALTORS®Washington, DC

March 20, 2012Kiawah Island, SC

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1. 2011 Investment and Vacation Home Buyers Survey

2. Government Affairs and Advocacy: An Important Member Benefit

3. Legislative and Regulatory Issues Affecting the Resort and 2nd Home Real Estate Sector

2011 Investment and Vacation Home Buyers SurveyMethodology:

Online panel

Based on representative panel of U.S. households

1,895 households responded—represents 1,926 home purchases

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Share of Home Sales

Share of Sales 2010-2003

Age Vacation and Investment Buyers 2005-2010

Income Vacation and Investment Buyers 2005-2010

How Buyer Purchased the Home

Investment and Vacation Buyers Used a Mortgage 2007-2011

Outlook of Buyers

• 52% of investment buyers and 34% of vacation buyers are likely to buy again in the next 2 years

• 80% of vacation buyers and 77% of investment buyers think it’s a good time to purchase real estate

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- Lobbyists, Research, Legislative Regulatory-RPAC- Largest in the Country-Funds Raised Through the Dues Increase Going to Local Grassroots- Land Use Initiative

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- National Flood Insurance Program

- H-2B Visa Program

- VISIT-USA Act

- Property Insurance

- Condo Financing Challenges

- Sackett vs. EPA – Supreme Court Case

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- NFIP authorized until May 31, 2012

- Still working on long-term reform/ reauthorization bill

-Mid-Year Talking Point and a CFA

- Contentious Issues Will Include: - Subsidies and Map Updates

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- Resort Areas Need These Seasonal Workers for Operations/maintenance

- Workers Allowed Only After Employers Try to Fill Jobs W/Americans

- Coordination with DHS, other federal agencies

- Not an immigration program, but is caught up in the broader debate

-Recent Rule would have caused big problems – NAR opposed and Congress Stopped it

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- S. 1746 – Schumer (D-NY) and Lee (R-UT). Bill creates two real estate-related visas.

• Creates Canadian retiree visa that would allow Canadians older than 50 years of age who own a U.S. home or have a signed lease for the time of their proposed stay to obtain a non-immigrant resident visa.

• Canadian Visa would allow retiree, spouse, minor children to spend up to 240 days, living in the U.S.

• Creates a non-immigrant visa for those who make at least $500,000 cash purchase of a residence in the United States.

• If more than one property is purchased, one must be listed as their primary residence.

• This visa would allow the individual, their spouse and minor children to live in the U.S.

• Bill does require the visa holder to spend at least 180 days in the states. • This Does Not Create a Path for Citizenship

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• Internal NAR Working Group Has Been Appointed

• Both Schumer and Lee Have Expressed Interest in NAR Perspectives and Making Appropriate Changes

• Passage Will Be Difficult in Current Political Environment  

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- Property insurance premiums have increased in many areas

-Availability has decreased – Insurers are pulling out of markets, increasing premiums and not renewing policies.

- These circumstances impact housing affordability – especially in resort areas.

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- Combine Wind/Flood Ins.

- Federal guarantees

- Tax Credit

- Blue Ribbon Commission

Condo Financing – NAR Action- Current policy directs NAR to address all issues

associated with housing finance – including condo financing

- In all meetings and communications with FHA, GSE’s and lenders, condo financing concerns are raised

- NAR has raised this issue numerous times in testimony before Congress over the past year

- NAR has received clarification from the GSE’s regarding the waiver and appeals process.

- GSE’s have also responded positively to our request to streamline regulations

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Sackett vs. EPASupreme Court on when homeowners are allowed to take

EPA to courtOral arguments held on Jan. 9, 2012NAR submitted an Amicus Brief in support of the SackettsSacketts were building a house on Priest Lake but were

stopped by EPA because of wetlandsJustices were sympathetic – “Can you imagine this

happening in the United States.” – Justice AlitoDecision is anticipated late springWhy is this Important? Case will test the scope of EPA

authority under the Clean Water Act. 21