FRONT LINES: Washington Report

Small-business health plans gain
Bankruptcy bill moves toward passage
GAO to review real estate competition
Call for entries
NAR Midyear booth offers resources


Small-business health plans gain

Legislation that would allow small businesses and self-employed workers to band together through a trade or professional association to negotiate lower health insurance costs moved forward in Congress in March. The Committee on Education and the Workforce in the U.S. House of Representatives approved the bill, H.R. 525, one of NAR’s legislative priorities. That action paves the way for the bill’s consideration on the House floor.

The measure was introduced by Reps. John Boehner, R-Ohio; Sam Johnson, R-Texas; Nydia Velázquez, D-N.Y.; and Albert Wynn, D-Md.; it has attracted more than 110 cosponsors.

Companion legislation, S. 406, has been introduced by Sens. Christopher (Kit) Bond, R-Mo.; Olympia Snowe, R-Maine; and Jim Talent, R-Mo. President George W. Bush signaled his support by highlighting the issue in his State of the Union address this year.

“Most REALTORS® are small-business persons or independent contractors who struggle to find low-cost, high-quality health care for their employees and families,” says NAR President Al Mansell. “Small-business health plans will give them the same right to quality, affordable health insurance as corporate employees and union members.”

More: Small business health plan legislation

Bankruptcy bill moves toward passage

Major reform to bankruptcy laws, years in the making, took a big step forward with passage of the Bankruptcy Abuse Prevention and Consumer Protection Act, H.R. 685, by the Judiciary Committee of the U.S. House of Representatives.

The reform measures in the bill would put owners’ real estate assets in a better position when tenants or owners file for bankruptcy, NAR analysts say. Among other things, the reforms will

∙ Close the loophole that allows residential tenants to avoid or delay eviction by declaring bankruptcy
∙ Reduce the time retail tenants facing bankruptcy can decide to assume or reject a lease
∙ Eliminate the dollar cap on certain types of bankruptcies so that all properties, regardless of value, are equally subject to an automatic stay from creditors for 90 days, with extensions for cause

The legislation is expected to pass this spring, NAR analysts say. The Senate has already passed the bill.

More: Bankruptcy reform legislation


GAO to review real estate competition

U.S. House of Representatives Financial Services Committee Chair Mike Oxley, R-Ohio, and Ranking Minority Member Barney Frank, D-Mass., have requested that the U.S. Government Accountability Office study competition in the real estate industry. The study is part of the committee’s continuing oversight of the country’s housing market, the request says.

The lawmakers asked the GAO, among other things, to compare the increase in housing prices with the rate of inflation over the past five years and to look at whether consumers have been benefiting from competition in the residential real estate brokerage market. They also asked the GAO to look at whether state- chartered depository institutions that engage in real estate brokerage and settlement services “have any negative effects on competition or consumers.”

“We look forward to the review,” says NAR President Al Mansell. “Having the GAO look closely at the real estate industry gives us the opportunity to show that it’s one of the most competitive in the country and that it has sustained the economy for more than a decade.

The request follows one to the GAO by Oxley in November 2004 to study the impact of the Internet and electronic commerce on the real estate marketplace.

Call for entries

The entry deadline for the sixth annual REALTOR® Magazine 2005 Good Neighbor Awards
is Friday, May 27.The awards are for REALTORS® who’ve demonstrated an extraordinary commitment to volunteer work in their community.

The five winners will be announced in the November issue of REALTOR® Magazine and will be recognized at the 2005 REALTORS® Conference & Expo in San Francisco, Oct. 28–31. Winners will receive travel expenses to the convention, national media exposure for their community cause, and a $7,500 grant. In addition, five honorable mentions will each receive a $1,500 grant. Last year’s program drew nearly 300 entries.

The awards program is sponsored by eNeighborhoods Inc., Fannie Mae, and Land America.

NAR Midyear booth offers resources

NAR’s booth (#1020) at the Midyear Legislative Meetings & Expo, May 11–13 in Washington, D.C., is packed with resources to help you in your business. Browse the latest in the series of books on real estate investing from NAR and publisher John Wiley & Sons Inc., The Insider’s Guide to Making Money in Real Estate, by best-selling authors Dolf de Roos and Diane Kennedy.

Also get details on the newest REALTOR VIP® Alliance Program partners. And take a view minutes to view the FamilyTime DVD, a joint program of NAR and Million Dollar Round Table that shows how you can make time for your family in today’s fast-paced world.

Complete Midyear Meetings information is available at REALTOR.org under Meetings & Expo.