The officers and directors of HCAR would like to thank our many RPAC contributors. Ticket sales, pledges, and checks written on the night of June 13^th brought us closer to our RPAC goal. Suzi Padgett, HCAR RPAC Committee Chair, commented that the upcoming Special Session this Fall and next year's Legislative Session will very likely include many proposed tax increases to close the $1.6 Billion gap in the state budget. "REALTORS^® will need to become active in fighting any additional taxes on real estate," she warned.

Of special note, HCAR would like to acknowledge Ilene Kessler for her Golden R contribution of $5,000 to RPAC. She was inducted to the MAR Hall of Fame at the June 11^th MAR Board meeting. Congratulations Ilene!

HCAR would also like to acknowledge the following Sterling R's (contributors of $1,000): Oliver Henderson, Sue Pakulla, Suzi Padgett, Melvina Brown, Anne Cooke, Alex Karavasilis, Karol Hess, Jim Hyatt, Patty Smallwood, and HCAR itself. Joining these contributors are the following 99 Club members: L. Brent Johnson and Ramon Estrada. Shirley Matlock, our Legislative Committee Chair, has contributed $300.00.

The HCAR directors would also like to thank the 310 members who donated a total of $7,750 during the dues renewal period last Fall. Contributions can still be made to RPAC. Make your check out to RPAC and send it to us at HCAR. We will forward it to MAR.

Karen Everhart

We urge our REALTOR^® members to join in Columbia's 40^th birthday celebration that spans 40 days and includes many events sponsored by the Columbia Festival of the Arts and the City Fair. The theme is "Celebrate Columbia: The Place. The People. The Experience." Our own Karol Hess reminisces about her early days in Columbia and remembers that a few REALTORS^® were pioneers, including Karen Everhart of Coldwell Banker Residential Brokerage, who moved here in 1967. She began her career as a property manager of some of the first housing in Columbia, The Bryant Gardens and Cove Apartments. She continues to contribute to the real estate industry and we extend congratulations to her and to all of the pioneers!

On July 1^st, the City Fair will conclude with a birthday cake and a community sing-along to wish Columbia "Happy Birthday." Last but not least, the Young Columbians will perform with the Baltimore Symphony Orchestra at the Merriweather Post Pavillion on July 15^th. So participate and enjoy the activities!

This event promises to bring together REALTORS^®, educational opportunities, affiliate members, suppliers/vendors, trade show activities, and networking at the Turf Valley Resort. The theme is "It's all about U." A grand prize of a 3 night trip to the Bahamas will be awarded that day so plan to attend.

R.E.N.O. 2007 is back by popular demand!

In May, the NAR Board of Directors voted to raise its dues by $16.00 at its Mid-Year Meeting in Washington. The NAR board plans to fund several initiatives with the dues increase:

1. consumer outreach including a new web site targeted to residential and commercial real estate consumers, coupled with advertising support and other communications channels that will enlist consumers in NAR calls to action and other communications to policy-makers;

2. a "virtual" Realtor credit union that will provide a full range of depository and lending services to REALTORS^® including retirement planning, bill payment, investing and health savings accounts;

3. new technology initiatives to provide seed money for aggressive new technologies serving the real estate industry; and

4. increased support for issues mobilization and issues advocacy to support the REALTOR^® agenda in Washington.

The MAR Board of Directors has approved a Special Assessment of $50.00 for the 2008 membership year in order to raise funds for a Legislative and Regulatory Relief Fund. A rationale for the Special Assessment is provided below:

WHY MAR NEEDS A LEGAL AND REGULATORY RESPONSE FUND

• There is an alarming, rapidly growing national trend to viewing real estate, real estate commissions, and the transfer of real property as an ideal revenue source as budget deficits increase.

• In Maryland, a structural deficit estimated at $7.85 billion over the next 5 years has dominated discussions in the legislature.

• At the heart of the deficit are mandatory spending increases, including Thornton- mandated education spending, Medicaid and teacher pensions, projected to significantly outpace projected revenue increases, as well as a transportation deficit over the next 20 years, projected at billions of dollars, to fund projects such as the Inter County Connector and general infrastructure expansion.

• Even a slots bill will not generate adequate income to cover the annual $1 billion+ deficit that Maryland faces.

• In the 2007 General Assembly, a proposal to tax real estate commissions earned on property management has been considered a "trial balloon" for a far reaching tax on services bill, to include all real estate commissions, that is likely to be under consideration. Many, including legislators, expect that there will be a special session of the legislature, in the summer or autumn, devoted entirely to measures to balance the budge.

• In other states, these challenges have forced REALTORS^® to be prepared to wage often costly fights to protect the interest of members, the real estate industry, and property owners. Three examples:
  • In Arizona, the state was about to propose a state transfer tax. At a meeting of its Board of Directors, the Arizona Association of REALTORS^® (AAR) passed a special dues increase of $50, to create a "war chest" to fight the proposal. When news of the special fund was announced, the proposal was dropped. To date, AAR has accumulated $10 million in its fund, but has not found it necessary to use the monies. AAR is regularly consulted before any proposal affecting real estate is considered.

  • In Maine, the association faced a statewide referendum that would create an open MLS, lawsuits against two state agencies regarding regulations adversely affecting real estate, and a proposal to eliminate independent contractor status. The Maine association found that its $200,000 war chest, a sizeable amount for a state of 5,000 REALTORS^®, was inadequate to fund the necessary statewide campaign against the referendum and the lawsuits filed against the regulations. It raised half the expected cost of $2 million to fight the MLS issue through a $200 special assessment and hopes to qualify for matching NAR funds. Although the referendum did not obtain the required number of signatures, it is expected to be refiled.

  • In Washington, the state association has undertaken campaigns to fight an increase in the state real estate excise tax and a campaign for housing affordability. It has funded its ongoing Issues Campaigns with a combination of a special assessment followed by a dues increase.

These states used special assessments, dues increases, or a combination, to wage public campaigns on their issues.

• NAR's Issues Mobilization Fund, which decides whether to match state and local REALTOR^® organization funding of such efforts, has already exceeded its 2007 budget, reflecting the extraordinary number and size of requests it has received. The predominant issues are transfer taxes and taxes on real estate commissions.

• These issues reflect a growing trend across the country that focuses on real estate and income derived from real estate as a source for needed revenue.

• Additionally, as advocates for no growth and causes such as open MLS take their campaigns public, the issues are increasingly being debated in public media rather than in traditional legislative or regulatory arenas.

• A recent survey of 32 REALTOR^® state associations found that 25 have a special fund to support issues oriented campaigns. Of those, 17 fund through an annual dues assessment; the remainder use a special assessment, reserves, or other means (including voluntary contributions).

As a result of the NAR dues increase and the MAR Special Assessment, HCAR members should expect to pay an additional $66.00 for their membership renewal this coming Fall. Please remember that dues bills will be sent electronically to your email address on file on or about mid-October. The bill is due November 1^st and a late fee will be assessed if dues are not paid by November 30^th.

With the murder of an agent in a vacant home in Bowie recently, we want to take a moment to remind our members that personal safety is paramount. Please visit the Field Guide to REALTOR^® Safety for tips and best practices for your safety. Here are just a few:

• Always have your cell phone charged.
• Never list your home phone on your business card.
• Never advertise a property as vacant.
• Always have prospects meet you at your office for the first meeting.

Each year the Maryland Department of Agriculture's Pesticide Regulation Section receives and investigates a number of complaints concerning wood destroying insects conducted in connection with real estate transactions. Please be advised that under Maryland Law "pest control" includes inspecting for, and providing opinions on, infestation or damage caused by termites and other wood destroying insects.

The law and regulations also mandate that wood destroying insect inspections shall only be offered and performed by a pest control or pest consultant business licensed by the Maryland Department of Agriculture. Some Home Inspection firms are also offering wood destroying insect inspections in conjunction with their home inspection work. For more information about legally offering and performing pest inspection services in Maryland, please contact Dennis Howard of the Pesticide Regulation Section, MD Dept. of Agriculture, at 410-841-5710.

New legislation enacted during the 2007 Session of the General Assembly will, for the first time, require homeowners to file an application with State Department of Assessment and Taxation in order to claim the Homestead Tax Credit. The legislation will require home owners to provide information to verify the taxpayer's eligibility for the credit. The Homestead Tax Credit program is effectively a cap on state and local property tax assessment increases. The State requires a 10% cap on property tax assessment increases in any given year and eighteen of the 24 local governments have exercised their authority to lower the cap.

The application for the Homestead Tax Credit is not yet available but Maryland REALTORS^® may wish to advise clients that an application must be filed to claim the credit within 180 days of the date the ownership of the dwelling is transferred after December 31, 2007 or before December 31, 2012 for a dwelling that was last transferred to new ownership on or before December 31, 2007. For additional information, contact Mark.Feinroth@mdrealtor.org.

A new ground rent disclosure will take effect for all contracts of sale in Maryland where the underlying property is subject to a ground lease. This disclosure must be made on all contracts entered into on or after July 1, 2007. This disclosure is now available through the Maryland Association of REALTORS^® Web site (www.MDRealtor.org) under the forms section as an addendum. The HCAR.org Members Only Forms section is also updated with the new addendum.

In the addendum, sellers of residential property of up to four units that is subject to a ground rent must disclose the amount of the annual rent; whether it is paid yearly or half-yearly; the date or dates on which it is due; the date when the next payment is to be paid and the amount to be paid; the name, address and phone number of the ground rent owner; a specified statement as to the potential right to redeem; and the consequences for non-payment. For further information, please contact Chuck Kasky at 800-638-6425 or chuck.kasky@mdrealtor.org.