Huntsville Real Estate: Regulatory Reform Expected With Obama Presidency

Huntsville Real Estate: Regulatory Reform Expected With Obama Presidency

The upcoming presidential transition comes at a time of great challenges within the housing industry and the economy at large. Consequently, many are wondering what a Barack Obama presidency will mean for Huntsville real estate and housing issues.

National Association of Realtors analysts expect the Obama administration and the new Democratic-controlled Congress to focus on regulatory reform of the financial services industry, with potential changes to Fannie Mae and Freddie Mac.

This fall, Obama responded to Realtor® Magazine's questions about the mortgage crisis, sustainable development, housing affordability and other topics:

Obama's Ideas on Key Real Estate Issues
To find out where president-elect Barack Obama stands on issues vital to real estate practitioners, REALTOR® Magazine went straight to the source.

This fall, when the presidential campaign was in full force, Obama responded to the magazine's pressing questions about the mortgage crisis, sustainable development, housing affordability and other topics. Here's what he said:

What's the most important action the federal government can take to ease the mortgage crisis and prevent a recurrence?

Obama: For the short term, the housing relief legislation [signed by Pres. George W. Bush July 30] authorizing the FHA to refinance the mortgages of struggling homeowners is the right approach. I've also called for the creation of a $10 billion foreclosure prevention fund that works in tandem with state, local, and community nonprofit efforts to help households facing foreclosure renegotiate with lenders or put their homes on the market. We also need to expand the mortgage revenue bond program to give state housing agencies $10 billion in new resources to help struggling homeowners. For the long term, the Stop Fraud Act that I introduced two years ago would create criminal penalties for mortgage professionals found guilty of fraud and increase funding for federal and state enforcement of antifraud programs. I also want to see a simplified, standardized metric for calculating the costs of a home mortgage, similar to the annual percentage rate used by banks to identify the effective interest rate a borrower ends up paying on a loan.

What role should the federal government play in reducing gridlock and carbon emission and in promoting livable communities?

Obama: Our long-term competitiveness depends on the development of new transportation networks that reflect our increasingly mobile society. That's why a strengthened transportation system is a priority for me. We must renew the federal government's commitment to high-speed rail and take steps at the front end of planning processes for many transportation options. For example, I support a measure by Sen. Tom Harkin (D-Iowa) to require states and metropolitan planning organizations to adopt policies that incentivize bicycle and pedestrian use of roads. I'll double the federal Jobs Access and Reverse Commute program to ensure that additional federal public transportation dollars flow to the highest-need communities and that urban planning initiatives take this aspect of transportation policy into account.

Even though prices have been easing for the last two years, housing affordability remains a challenge for many people. What can the federal government do to improve this situation?

Obama: I've proposed a universal mortgage interest tax credit for families that aren't benefiting from the mortgage interest deduction. They would get an average credit of $500 a year. And I worked to pass the bipartisan homeownership tax credit. That's a strong incentive because it gives developers a credit to bridge the gap between the cost of building a house and a sale price that's affordable to low- and moderate-income households.

How should the federal government help millions of small-business owners and the self-employed obtain affordable health insurance?

Obama: Let's build on our existing private health care system by allowing small employers and independent contractors to participate in a "national health insurance exchange" so they can purchase affordable health coverage similar to the plans available to federal employees. Individuals who need help paying for premiums will receive tax credits to ensure they can afford coverage. Employers that do not make a meaningful contribution to the cost of quality health coverage for their employees will be required to contribute a percentage of payroll toward the costs of the national plan. Small employers that meet certain revenue thresholds will be exempt. The plan will reimburse employer health plans for a portion of the catastrophic costs they incur above a threshold if they guarantee these savings are used to reduce workers' premiums.

What's the federal government's role in promoting energy efficiency in commercial properties?

Obama: I'll establish a goal of making all new buildings carbon-neutral by 2030 and work to improve new building efficiency by 50 percent and existing building efficiency by 25 percent over the next decade. To achieve that, I'll seek to make federal buildings zero-emission by 2025, starting with a goal to make them 40 percent more efficient in five years. I'll create a competitive grant program to recognize states and localities that take the first steps in implementing new building codes that prioritize energy efficiency. I'll also seek to provide a federal match for states with public benefits funds that support energy-efficiency retrofits of existing buildings. In addition, I'll invest in green-collar job training programs and create a "Green Jobs Corps" to connect disadvantaged youth with job skills in high-growth clean-energy industries.

What IRS code changes are needed to spur growth while ensuring tax burdens are spread evenly?

Obama: We need to reform our tax code so that it's simple and fair and advances opportunity rather than loopholes for special interests. I'll end tax breaks for companies that ship jobs overseas and reward companies that create good jobs here. I'll encourage innovation and entrepreneurship by extending the research and development and renewable energy production tax credits and eliminating capital gains taxes for small and start-up businesses. And I'll provide broad middle class tax relief—a "Making Work Pay" $500 tax credit, among other things—to help working families struggling with stagnant wages and skyrocketing energy and health costs.

—Robert Freedman


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