March 3, 2011

The following is a 2011 Legislative Update from your New Hampshire Association of REALTORS® Public Policy Committee, to keep you informed regarding its ongoing mission to protect the rights of our citizens and our members to use, enjoy and convey real estate in New Hampshire.

Senate Passes REALTOR bill to permit seller financing under SAFE Act

Last week, the State Senate passed an NHAR-sponsored bill which creates an exemption from the mortgage licensing requirements imposed under the SAFE Act for an owner of real property who in a 12-consecutive-month period makes no more than three mortgage loans to purchasers of the property for all or part of the purchase price of the real estate against which the mortgage is secured.

The Senate Commerce Committee lowered the number of permitted transactions from five, as suggested by NHAR, to three in any 12-month period.

The House of Representatives should take up the bill in April.

Bill Attempts to Tackle Issue of Complaints Regarding Geographic Competency of Appraisers

NHAR is supporting an effort to require Appraisal Management Companies to register in New Hampshire before conducting business. The bill is currently in the Senate Committee on Executive Departments and Administration.

The NH Real Estate Appraisal Board brought the bill forward in response to complaints against appraisers having increased 300 percent over the past two years. Most of those complaints revolve around appraisers conducting business in communities in which they may not have geographic competency.

SB 153 would give the Appraiser Board greater authority to regulate appraisal management companies which will result in increased consumer protection and more efficient property transactions.

Changes Coming to the Comprehensive Shoreland Protection Act

Several bills were introduced this session to modify or repeal RSA 483-B, the Comprehensive Shoreland Protection Act. The Senate Natural Resource Committee is focused on SB 154 and is working with businesses, consumer groups, and the Dept. of Environmental Services on a bill to streamline and simplify both the requirements of the statute as well as the permitting process.

A final bill has not yet been drafted, but final passage of some reform package seems very likely. NHAR will provide an update when a final bill goes to the Senate.

The Senate has passed SB 20, which exempts commercial or industrial redevelopment in compliance with the terrain alteration permitting process from having to also seek a permit under Shoreland Protection.

Governor’s Budget

Governor Lynch has released his $2.8 billion budget proposal for Fiscal Year 2012-13. The Governor did not propose any additional direct tax increases on businesses or homeowners, however significant costs were cut which NHAR believes could lead to downshifting of costs onto municipalities and will put even more pressure on towns to increase property taxes.

The Governor has proposed eliminating the state’s retirement support for local municipal workers, the continued zeroing out of local revenue sharing which occurred in the last biennium and allows for funding for existing municipal wastewater grants only.

His budget funds the meals and rooms tax distribution to cities and towns at 2009 levels for FY 2012 and adds $5 million in FY 2013. Adequate Education Aid to municipalities would remain at 2011 levels, while special education would be cut by $63 million. School Building Aid is also cut by 60 percent in Gov. Lynch’s budget.

Estimates for total cuts to municipalities run from 5 to 21 percent depending on how the cuts are calculated. The House of Representatives leadership has expressed concerns about the Governor’s budget cost-shifting and will release their own budget later this month.

For further information, contact NHAR Government Affairs Director Bob Quinn at bob@nhar.com.