Capitol Connection: April 17, 2015
Senate Bill 177- Construction Defects Reform PASSED the Senate
SB15-177, HOA Construction Defect Lawsuit Approval Timelines, passed the Senate on 3rd reading this week with bipartisan support on a vote of 24-11. We are expecting it to be introduced in the House in the coming days. Please click here to urge your State Representatives to allow SB 177 a Fair Hearing in the House.
We will be releasing a follow up Call for Action in the next few days. Please make sure to take action and urge support of Senate Bill 177.
HB 1348 Urban Renewal Authority Changes
The Legislative Policy Committee (LPC) OPPOSES HB15-1348, Urban Redevelopment Fairness Act, by House Speaker Dickey Lee Hullinghorst (D-Boulder), House Assistant Minority Leader Polly Lawrence (R-Roxborough Park), Senate Assistant Minority Leader Rollie Heath (D-Boulder) and Senator David Balmer (R-Centennial). This bill would result in a chilling effect on the ability to create future urban renewal projects. The tax increment financing (TIF) formula contained in the bill will discourage the private sector from investing the time and money needed to develop a project financing package with an urban renewal authority, with the probability that the financing package will be undone by demands made during the TIF negotiations with taxing entities.
This bill implies that municipalities take unfair advantage of other taxing entities through the use of tax increment financing for urban renewal projects. This is not true. Municipalities and the private sector are the only entities investing upfront dollars into a project. Other taxing entities make no upfront investment in the project but they reap increased property tax revenue as the project moves forward – a windfall at the end of the TIF period.
Tax increment financing is the key to making an urban renewal project possible. It comes from the new tax revenue generated over time by the urban renewal project. No project = No new revenue. No taxing entity loses money on an urban renewal project. Urban renewal projects improve our communities, stimulate business activity, and increase tax revenue for all taxing entities. CAR OPPOSES HB 1348 because it would enact significant additional barriers to an already difficult process.
HB 1260 Wildfire Mitigation Tax Deduction to a Tax Credit
HB15-1260, Change Wildfire Mitigation Tax Deduction to Credit, was amended in and passed out of the House Finance Committee. Due to the budget constraints at this time, changing the deduction to a credit would have created a large fiscal note, and one that likely would not have gotten through both chambers.
Instead, the bill was amended to keep the deduction in tact but raise it to a 100% deduction, capped at $2,500, for the next 3 years before it reverts back to the 50% deduction until 2025. While we still believe the tax credit would have provided more incentive to homeowners to mitigate their own properties, we are pleased with the increased deduction and believe it will positively impact the amount of property owners taking advantage of the incentive.
Realtors® Applaud House Passage of Mortgage Choice Act
The Mortgage Choice Act, which passed the U.S. House of Representatives last night with a bipartisan vote of 286-140, improves consumer access to mortgage credit with the full protection of the Ability-to-Repay and Qualified Mortgage rules that went into effect last year to safeguard borrowers from risky lending practices. To view more of NAR President Chris Polychron’s statement, click here.
Racing with RPAC event at Spring Meetings- THIS TUESDAY
Racing with RPAC will take place April 21, 2015 6PM – 8PM. This fundraising event, hosted by CYPN, will be held at Johnny Martin’s Car Central in Colorado Springs and is open to all members. $50 RPAC investment required for entry and includes 1 drink ticket, appetizers, and games. Additional racing simulation games will be available for an additional RPAC investment. For more information or to register, please click here.
NAR REALTORS® Legislative Meetings and Trade Expo REGISTRATION OPEN
The REALTORS® Legislative Meetings and Trade Expo is taking place May 11-16, 2015 in Washington, D.C. We will be scheduling meetings with the Colorado delegation, and you don’t want to miss out! Register here today.