The 2011-2012 legislative sessions wrapped up late last week for the Michigan House and Senate. This year yielded some long-fought and well-earned legislative victories for the MAR. These victories are made possible by the dedication of REALTOR members across the state:
√ Appraisal Management Company (AMC) legislation: These bills providing a regulatory structure for Appraisal Management Companies. House Bills 4975 and 5271 were introduced to get Michigan into compliance with federal financial reforms, which require state regulation of AMC’s. These bills define, regulate and set penalties for AMC’s operating in Michigan.
√ Building Inventory Tax Relief: Legislation intended to provide property tax exemptions to inventory and spec homes in new developments has been passed by the legislature, and on its way to the Governor for signature. This new law provides new builds and inventory in developments with a lower tax assessment until those properties are occupied.
√ Legislation extending the 90-day stay of foreclosure to June 30, 2013: This timeframe is important for homeowners as it allows them to meet with the lenders to try and work out a loan modification. It is anticipated that the new legislature will be looking to make changes to the State’s overall foreclosure process in the first six months of 2013.
√ Principal Residence Enhancement Legislation This fair, honest and sound property tax reform Public Act allows two dates for homebuyers to file for and receive their principal residence exemption; June 1st and November 1st. It also prevents foreclosures from losing their principal residence exemption, making it easier to qualify buyers and move inventory.
√ Principal Residence Exemption for those in a long term care facility – New law that alleviates those situations where a person may enter an assisted living facility (with intentions of returning to their property) leaving their principal residence unoccupied and subject to a higher tax liability.
Beach Grooming Legislation – New law eliminates state permit requirements for certain beach grooming maintenance between high water mark and water’s edge.
√ Critical Dunes Legislation – New Act that allows for a streamlined permitting process that supports private property rights and respects the role of the Department, while clarifying the criteria for landowners building homes in privately held areas of Michigan’s lakeshore dunes.
√ Non-recourse Loan Legislation signed- New law specifying that post-closing solvency covenants cannot be used as the basis for any claim or action against a borrower or guarantor, turning a non-recourse loan into a recourse loan. The MAR-supported legislation is critical to our commercial markets given continuing challenges facing the market.
√ Fought against the deregulation of property managers - Defeated legislation aimed to exempt persons engaged in "residential property management" from licensure as real estate brokers/salespersons who are currently required to be licensed.
√ Supported MSHDA Changes – Legislation recently signed into law that keep MSHDA current and competitive with loan products available to low and moderate income homebuyers across the state.
√ Personal Property Tax (PPT) Phase-Out - Legislation cleared the House and Senate providing the framework for the phase out of the PPT. This phase-out gives Michigan a clearer path for economic growth and moves the state up the ranks in terms of job competitiveness.
The MAR has worked with various legislators, groups, and departments on these critical industry issues throughout the year, and appreciates the work of the Michigan legislature in passing these important policies. As we look ahead to 2013, the MAR remains committed to being a leading advocate for private property rights and the real estate industry.
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