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Government Affairs Monthly Report

01-12-2018

Yampa Valley Housing Authority Ready to Move Forward with Plans for Affordable Housing

The Yampa Valley Housing Authority could select the development partner, or partners, it will rely upon to deliver on its promise to the voters of building more affordable apartment projects as soon as ths week when it meets to listen to proposals from interested companies.

On Jan. 11, just 65 days after the 2017 election, when voters in Steamboat and surrounding subdivisions approved a new a one-mill property tax for affordable housing, the YVHA board of directors will meet in open session to hear presentations from two prospective developers.

The 10-year property tax is expected to generate $900,000 annually for a decade, and the housing authority plans to leverage the $9 million over time to secure grants, federal tax credits and private sector partnerships to build on the success of The Reserves, which are fully leased.

YVHA board member Kathi Meyer said last week she expects that during Thursday's meeting representatives of the two interested companies will be given 15 minutes to present in open session and then the board will spend another 15 minutes asking questions of the principals.


ECONOMIC SUMMIT & REALTOR® DAY AT THE CAPITOL

The 2018 ECONOMIC SUMMIT & REALTOR® DAY AT THE CAPITOL is a two-day event held in Denver. This year both events will take place at the Brown Palace Hotel and REALTOR® Day at the Capitol will conclude at the Colorado State Capitol Building. The Economic Summit is on February 7th and REALTOR® Day at the Capitol is on February 8th.

The Economic Summit will feature the State & National Economy 2018 Housing Market Update. At REALTOR® Day this year, CAR is featuring a Gubernatorial candidate forum on Housing issues. Come listen to what these candidates have to say about issues important to REALTORS® before you vote in the primary election. Also, don’t miss the Luncheon featuring Keynote Scott Peterson’s “Legal Marijuana in Real Estate.” REALTOR® Day is also a great opportunity for you to learn about and discuss important policy issues affecting the real estate industry this upcoming year, as well as hear from your legislators.
For more info and to register, click here.


The Tax Cuts and Jobs Act - What it Means for Homeowners and Real Estate Professionals
*Note* - this article is taken directly from the NAR website. The complete, detailed report can be found here.

The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment, as well to ensure as many real estate professionals as possible would benefit from proposed tax cuts. Many of the changes reflected in the final bill were the result of the engagement of NAR and its members, not only in the last three months, but over several years.

While NAR remains concerned that the overall structure of the final bill diminishes the tax benefits of homeownership and will cause adverse impacts in some markets, the advocacy of NAR members, as well as consumers, helped NAR to gain some important improvements throughout the legislative process. The final legislation will benefit many homeowners, homebuyers, real estate investors, and NAR members as a result.

The final bill includes some big successes. NAR efforts helped save the exclusion for capital gains on the sale of a home and preserved the like-kind exchange for real property. Many agents and brokers who earn income as independent contractors or from pass-through businesses will see a significant deduction on that business income.

As a result of the changes made throughout the legislative process, NAR is now projecting slower growth in home prices of 1-3% in 2018 as low inventories continue to spur price gains. However, some local markets, particularly in high cost, higher tax areas, will likely see price declines as a result of the legislation’s new restrictions on mortgage interest and state and local taxes.

What follows in the report is a summary of provisions of interest to NAR and its members. NAR will be providing ongoing updates and guidance to members in the coming weeks, as well as working with Congress and the Administration to address additional concerns through future legislation and rulemaking. Lawmakers have already signaled a desire to fine tune elements of The Tax Cuts and Jobs Act as well as address additional tax provisions not included in this legislation in 2018, and REALTORS® will need to continue to be engaged in the process.

The examples provided are for illustrative purposes and based on a preliminary reading of the final legislation as of December 20, 2017. Individuals should consult a tax professional about their own personal situation.

All individual provisions are generally effective after December 31, 2017 for the 2018 tax filing year and expire on December 31, 2025 unless otherwise noted. The provisions do not affect tax filings for 2017 unless noted.

Again, the complete report (with examples) can be found here.