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HBAV
LEGISLATIVE BULLETIN
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Volume XI, Number 3
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January 29, 2009
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"Virginia
General Assembly At Full Throttle"
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HBAV LEGISLATIVE AGENDA BEGINS JOURNEY
The second
full week of the 2009 session of the Virginia General Assembly ends
today. Much of the week was consumed with early morning and early
evening meetings of the subcommittees and full committees of both
houses of the state legislature. The 100-member House of Delegates has
14 standing committees and the 40-member State Senate has 11 standing
committees. All 25 standing committees have two to four subcommittees.
Last Friday was the last day of the 2009 session of the state
legislature for state lawmakers to introduce bills. Over 2,200 bills
and resolutions have been introduced this session. That is down from a
past average of over 3,000 bills and resolutions. Some Capitol
Observers have suggested that may be the impact of a new rule the House
of Delegates imposed on themselves that limits each House member to 10
pre-filed bills and 5 Regular Session bills. The State Senate did not
impose a bill introduction limit on itself.
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The HBAV
Legislative Committee, which meets each Friday afternoon by Conference
Call has identified over 75 House Bills and Senate Bills that could
help or hurt the housing climate in Virginia, and given clear
instructions to the HBAV lobbying team to make every effort to
"Impact" their legislative course. The HBAV Matrix (status of
each identified bill) of such legislation is reviewed each Friday by
the committee, which is chaired by Richmond area home builder Bill
Garrett.
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On the
political side, one "HOT" dispute was resolved. The House
Republican Majority seated Democrat Charniele Herring, who defeated
Republican Joe Murray by 16 votes in a Special Election on the day
before the 2009 session convened. Murray
contested the close election, so Ms. Herring was not seated until after
an official recount was conducted this Monday. Delegate Herring
succeeds Brian Moran in the Alexandria House seat. Moran resigned in
late December to spend full-time on his campaign for the Democratic
nomination for governor.
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The 4-piece HBAV Legislative Agenda began its path through the
legislative process. One Bill (House Bill 2029, by Danny Marshall)
advanced through full committee and a subcommittee hearing was
conducted on two others (House Bill 1788, by Bob Hull and House Bill
2077, by Glenn Oder). The 4th, a Senate Bill, (Senate Bill 1335, by
Senator Stuart) will be considered this coming Tuesday in the Senate
Committee on Local Government.
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This
will be the final full week that House and Senate bills can be
considered in their house of origin. Tuesday, February 10th is
Crossover Day or the last day House bills can be considered in the
House and Senate Bills can be considered in the State Senate. Crossover
Day is the "major" deadline of every session of the Virginia
General Assembly.
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The 2009 HBAV LEGISLATIVE AGENDA
House Bill
2077, by Delegate Glenn Oder of Newport News,
is a plan validity extension measure. It would extend the validity of
any proffer, subdivision plat, plot, preliminary plan, final plan,
conditional use permit, special use permit, special exception,
construction plan, public improvement plan, site plan, or any other
land use document or action that is valid and outstanding as of January
1, 2009, for a period of five years from its current expiration date,
and any deadline or scheduled event specified in such document or
action is extended for a period of five years, regardless of whether
such expiration or schedule exists by operation of statute, proffer,
permit, local ordinance, or local custom. House Bill 2077 was briefly introduced to the
House CC&T Subcommittee #2, chaired by Delegate Danny Marshall on
Thursday morning of this week. After several localities and
representatives of VACO vigorously stated their opposition to the bill,
Delegate Oder announced he would delay
further consideration of the measure until this coming Thursday
morning. The subcommittee meets at 7:00 a.m. in the GAB.
House Bill 2029, by Delegate
Danny Marshall would "temporarily" (five
years) reduce the 25% bond administrative fee to 10% above the
estimated construction cost. This legislation will reduce a
landowner's cost and increase his borrowing capacity. House Bill 2029 was approved by House CC&T
Subcommittee #2 and the full 22-member House CC&T Committee. Fairfax County and VACO urged the
subcommittee to shorten the temporary reduction to two years.
House Bills 1788, by Delegate
Hull & House Bill 2294, by Delegate Merricks
would prohibit a locality from not allowing the use of
"alternative" or "non-conventional" on-site
wastewater treatment systems that have been approved for use by the
Department of Health. The legislation would also prohibit
localities from imposing maintenance requirements on such systems more
stringent than required by the Department of Health, or in their
absence, manufacturer's recommendations.
House Bills 1788 and 2294
were considered by the House CC&T Subcommittee #2 on Thursday
morning of this week for the second time. HBAV appeared in
support of the measure and a long list of localities and environmental
organizations appeared in opposition to the HBAV requested bills,
again. Most of the opposition focused on the section of the bill that
prohibited localities from imposing more stringent maintenance
requirements than state regulations or guidelines or manufacturer
recommendations. That maintenance guidance is currently being
revised into regulations, and they are not scheduled to become final
until later this year or early next year.
Consequently, HBAV was requested by the Subcommittee to redraft the
bill to make the prohibition on more stringent local maintenance
effective upon the final promulgation of state maintenance regulations
by the Virginia Department of Health. Both bills were combined in HB 1788 and Delegate
Hull
deferred further discussion until this coming Thursday.
Senate Bill 1335, by Senator
Richard Stuart of Stafford would allow, not
require, a local government to waive the requirement for a public
hearing in their consideration of an amendment to an existing
proffer. Such a waiver could significantly decrease the time
required to approve such an amendment.
Many proffers that have been volunteered to local governments in
conjunction with a rezoning or other land use decision have dates or
triggers that either requires a payment to be made or some other action
to take place. Most of those dates or triggers in many proffers
were volunteered at a time in the Virginia economy when there was high
demand for new housing and that demand had been forecast to continue
far into the future.
Senate Bill 1335 was assigned to the Senate Committee on Local
Government last week and will be considered by the 15-member standing
committee of the upper chamber this coming Tuesday.
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ROAD IMPACT FEE
MODIFICATION BILL KILLED
In a "shock" to HBAV and other organizations that
follow land use issues, "ONLY" one impact fee bill was
introduced to the 2009 session of the state legislature. And on
Thursday morning of this week, it was killed on a voice vote in House
CC&T Subcommittee #2. Appearing against the measure was HBAV
and VDOT, who both stated the original concept of the road impact fee
statute was to require all new development that generates new road
impacts to pay road impact fees.
That measure (House
Bill 1728, by Delegate Mark Cole) would have
amended the current road impact fee law to allow local governments to
exempt or reduce impact fees for commercial development in their local
ordinance. The current road impact fee law, that was expanded to most
growing localities in 2007, by Governor Kaine, requires all types of land
use, including residential, commercial and industrial use, to pay road
impact fees, if implemented by local ordinance. That clear
requirement in the road impact fee statute has limited the implementation
of road impact fees in some localities. In the past, many
localities have had an eagerness and willingness to tax new housing, but
fear imposing that expensive tax on business will result in less
expansion of their business tax base.
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The embattled membership of HBAV genuinely appreciates the lack of bill
introductions this session that would impose new taxes (Impact Fees) on
our struggling industry or attempt to limit the number of new homes the
business could build based solely on a locality's determination that
public facilities were not adequate (APF) to serve new housing.
With so many obstacles facing the home building business right now, we
will just accept the fact that very few Impact Fee and APF bills were
introduced as they "get it" for now! They (high growth
localities and their state legislators) understand for now, that the home
building industry is critical to their local economies and the state
economy. They understand that without a healthy and growing housing
industry, the economy as a whole declines, unemployment rises, home values
fall, banks fail and their revenues decline...............Do they have
long or short memories? Time will tell!
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OTHER DANGERS LINGER!!!!
Yet, there remain many threats to the housing
industry in the 2009 session of the state legislature! Listed
below is just a partial list of House Bills and Senate Bills that could
negatively impact the home building business this year.
House Bill
1582, by Delegate Algie Howell. Employees of home access
businesses; penalty. Requires the owner or
operator of a commercial establishment that provides a service that
requires the establishment's employees to regularly enter the interior
area of the residence of its customers to conduct a criminal background
check of employees whose regular duties can reasonably be expected to
require entering the interior area of the residences of establishment's
customers. Effective September 1, 2009, employers are required to
complete a criminal records check on prospective employees, but an
employer is not prohibited from hiring an employee on the basis of the
results of the criminal records check. Employers are required to keep
copies of the fingerprints and records check for such employees.
Employers shall provide identification badges to employees and require
the employees to wear the badge when they are expected to enter
customers' homes. Violations constitute a Class 3 misdemeanor.
House
Bill 1640, by Delegate Bob Marshall. Form of deeds and deeds of
trust. Provides that when a corporation,
partnership, limited partnership, business trust, or limited liability
company is the grantee of a deed or the grantor of a deed of trust, the
deed or deed of trust shall contain the names of the registered agents
and the directors, officers, partners, etc., of these various business
entities.
House Bill
2095, by Delegate Orrock. Board for Contractors; definition of
tradesman. Adds building framers and masonry
contractors to the definition of tradesman, thereby requiring these
individuals to be licensed by the Board of Contractors.
House Bill
2418, by Delegate Bouchard. Optional provisions of a subdivision
ordinance; solar energy. Strikes language
requiring that provisions for establishing and maintaining access to
solar energy be applicable to a new subdivision only when so requested
by the subdivider.
House Bill
2664, by Delegate Valentine. U.S. Route 29; access management.
Requires the Commonwealth Transportation Commissioner to take all
appropriate measures to develop local corridor access management plans
for U.S. Route 29 between Gainesville
and North Carolina.
House Bill
2563, by Delegate Cole. Street construction.
Allows localities to withhold acceptance of plat approvals if the
applicant has other projects in the locality with streets not completed
or on track for completion as required by the approved plans for that
project before said developer or subdivider will receive approval of a
new subdivision or development plan. Further allows localities to
withhold partial and final complete release of any performance
guarantee if streets in the plan have not been accepted by and taken
over for operation and maintenance by the authority responsible for
maintaining and operating such public facility.
Senate Bill
853, by Senator Edwards. Carbon monoxide detectors in certain
buildings. Provides that any locality may,
by ordinance, require carbon monoxide alarms be installed in (i) any
building containing one or more dwelling units, (ii) any hotel or motel
regularly used, offered for, or intended to be used to provide overnight
sleeping accommodations, and (iii) any rooming house regularly used,
offered for, or intended to be used to provide overnight sleeping
accommodations when such structures or buildings contain dwelling units
that have an attached garage or carport or are serviced by fuel-fired
appliances.
Senate Bill
1139, by Senator Petersen. Uniform Statewide
Building Code
Provides that the building official may revoke any building permit
issued when the owner has violated any provision of the Uniform
Statewide Building Code on two occasions within a six-month period and
the owner has failed to submit a plan to remedy the violation.
Senate Bill
1336, by Senator Barker. Virginia Property Owners' Association
Act; control of association by declarant.
Provides that a declaration may provide for declarant control of an
association and its board of directors for a period of time that shall
not exceed (i) five years or (ii) three months after 80 percent of all
lots in all phases of the development have been conveyed, whichever
occurs first. The bill requires all association funds collected during
the period of declarant control to be maintained separately in the
association's name and not be commingled with funds of the declarant or
the funds of any other association. In addition, the bill prohibits the
declarant from using association funds to defend any civil or criminal
action, or administrative or arbitration proceeding that has been filed
or initiated against the declarant.
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ON THE POSITIVE SIDE.....
House Bill 1698, by Delegate
Lohr. Scrap metal processors. Prohibits the sale or
purchase of any scrap metal that the seller or scrap metal processor
knows is copper, aluminum, brass, lead, or other nonferrous metal of
any kind, including catalytic converters or any materials derived from
a catalytic converter, steel railroad track and track material, metal
beverage containers with a capacity of more than two liters that are
marketed as returnable, or other specific categories of scrap metal, unless
the person attempting to sell the scrap metal provides documentation
establishing or acknowledging that the seller is the owner of the scrap
metal or is an employee, agent, or other person authorized to sell the
scrap metal on behalf of the owner. The measure authorizes
law-enforcement officers during the regular business hours of a scrap
metal processor to inspect, without a warrant or subpoena, any scrap
metal in the possession of a scrap metal processor, any records
required to be maintained by a scrap metal processor, or both. Each
seller of scrap metal is required to provide his driver's license
number to the scrap metal processor in connection with each sale of
nonferrous scrap, metal articles, and proprietary articles. Sales where
the seller is unable or refuses to provide the required identification
and information are prohibited. Scrap metal processors are required to
keep a record of the total price paid for items purchased and the price
paid per unit of measurement for the items. The penalty for any
violation of the chapter is increased to a Class 1 misdemeanor.
Currently, negligent violations are subject to a civil penalty not to
exceed $7,500 while knowing violations are a Class 1 misdemeanor.
House Bill
1721, by Delegate Chris Peace. Income tax; homebuyer tax credit.
Provides an income tax credit equal to $1,250 for single taxpayers and
$2,500 for married taxpayers filing jointly for taxable years beginning
January 1, 2009, and ending January 1, 2010, who purchase a home for
the first time during that period for use as their principal residence.
The taxpayer must repay the credit over a 10-year period which begins
the first year when no credit remains to be taken.
House Bill
1856, by Delegate Shannon.
Virginia Residential Property Disclosure Act; disclosure of stormwater
detention facilities. Provides that an owner
of real property makes no representations with respect to the presence
of any stormwater detention facilities located on the property and that
purchasers are advised to exercise whatever due diligence they deem
necessary to determine the presence of any stormwater detention
facilities on the property, in accordance with terms and conditions as
may be contained in the real estate purchase contract, but in any
event, prior to settlement pursuant to that contract.
House Bill
2343, by Delegate Amundson. Livable home tax credit.
Increases the limit of the livable home tax credit from $500 annually
to $1,000, for taxable years beginning on and after January 1, 2009.
House Bill
2613, by Delegate Hall. Cash proffers; phase out.
Requires localities to phase out the acceptance of cash proffers by
July 1, 2014.
Senate Bill
845, by Senator Puller. Livable Home Tax Credit; increase limit.
Increases the Livable Home Tax Credit limit from $500 to $1,000.
Senate Bill
906, by Senator Stosch. Income tax; homebuyer tax credit.
Provides an income tax credit equal to $2,500 for single taxpayers and
$5,000 for married taxpayers filing jointly for taxable years beginning
on or after January 1, 2009, but before January 1, 2011, who purchase a
principal residence during that period. Any tax credit claimed would be
recaptured if the taxpayer disposes of the principal residence within
two years after purchase.
Senate Bill
1423, by Senator Martin. Subdivision ordinances.
Provides that such ordinances shall include a requirement that each
locality provide a checklist to potential developers that specifies
what shall be shown on the development plans along with the legal
authority for such requirement.
Senate Bill
1430, by Senator Stosch. Grants to purchasers of newly
constructed residential homes. Authorizes
the issuance of $50 million in bonds to fund grants to individuals who
purchase a principal residence in the Commonwealth that was first
issued a certificate of occupancy on or after January 1, 2007, but
before July 1, 2009. Eligible individuals would be individuals who had
no present ownership in a principal residence within the last three
years. The Virginia Housing Development Authority, in consultation with
the Virginia Economic Development Partnership, would develop guidelines
for purposes of determining eligible homebuyers and the amount of grant
awards.
Senate Bill
1446, by Senator McEachin. Income tax; homebuyer tax credit;
emergency. Provides an income tax credit
equal to $1,250 for single taxpayers and $2,500 for married taxpayers
filing jointly for taxable years beginning January 1, 2009, and ending
January 1, 2010, who purchase a home for the first time during that
period for use as their principal residence. The taxpayer must repay
the credit over a 10-year period which begins the first year when no
credit remains to be taken.
Senate Bill 1524, by Senator
Watkins. Permitted provisions in zoning ordinances. Broadens the zoning
administrator's authority to determine vested rights in certain
circumstances.
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For
complete Summaries of the 2009 HBAV Legislative Agenda, visit
www.hbav.com and click on Legislative News.
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For more information on HBAV and
upcoming events go to our website: http://www.hbav.com.
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Home
Builders Association of Virginia
707 East Franklin Street
Richmond, Virginia
23219
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