The National Real Estate Investors Association - National REIA
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Representing the Interests of Real Estate Investors Across the US
REIA Update June 2016
Regulations: Last fall we reported that The U.S. Department of Labor was seeking comments to proposed regulations under the Fair Labor Standards Act (FLSA) covering who is exempt from overtime pay within certain categories of employees. A few weeks ago, President Obama and the U.S. Department of Labor announced the publication of the Department's final rule updating overtime regulations. The new rules go into effect December 1, 2016. Click here to read a summary of the new rules as well as a fact sheet & infographic.
Seller Finance: HR 5301 has been introducedÂ in the US House of Representatives by Rep. Roger Williams (R-TX) and Rep. Henry Cuellar (D-TX). Titled as the Seller Finance Enhancement Act, the bill will increase the ability of seller-financed properties from 3 per year to 24 per year. The 2 per month average was considered a reasonable request to the excessive restriction put in place by Dodd/Frank legislation during the recession. Additionally, HR 5301 would require the Treasury Department to study the housing finance market over the next 3 years and report back to Congress with suggestions for steps to improve the sales and financing of these homes, especially those with valuations below $150,000 or 60% of the regional median housing value.
HR 5301 keeps in place key consumer safeguards set in place by Dodd-Frank such as limits on interest and balloon payments. The Seller Financing Coalition , which National REIA is a member has been working diligently to see this bill come forward and will continue to grow the number of sponsors as passage is ultimately sought.
REIA UPDATE APRIL 2016
HUD's new guidance on Criminal Background checks places Housing Providers and Municipalities in conflict over the recognition of Arrests!
HUD's guidance includes the banning of arrests from consideration for housing. While this may seem legitimate, it places housing providers in a very awkward position, as many municipalities have laws and regulations on the books regarding drug users, and justify eviction for drug-related arrests. HUD states, "As the Supreme Court has recognized, "[t]he mere fact that a man has been arrested has very little, if any, probative value in showing that he has engaged in any misconduct. An arrest shows nothing more than that someone probably suspected the person apprehended of an offense." While this harkens back to a better understanding of "innocent until proven guilty," until the municipal nuisance conflict is resolved, housing providers will face aggressive city enforcement on one side, and assertive housing advocates on the other.
National REIA suggests working with your local housing advocates to address this concerns with municipalities.
It looks like both parties are going to go down to the wire and possibly will have contested and/or interesting conventions. This year's presidential race is truly one for the history books.
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