Public Policy Watch

Terrorism Insurance Coverage Unavailable - Commercial Properties in Danger

As a result of the September 11th attacks on the United States, many insurance companies throughout the country have begun filing petitions with their state insurance commissioners asking permission to exclude terrorism coverage from its various policies. Therefore, if Congress doesn't act quickly, the nation's economy could face severe economic disruption resulting from a lack of affordable, comprehensive terrorism insurance for businesses and commercial properties. The National Association of Real Estate Investment Trusts (NAREIT), the National Association of REALTORS^® (NAR) and several other real estate and construction industry related organizations have urged the House to quickly approve "The Terrorism Risk Protection Act" and the Senate to pass similar legislation.

The District is among the many areas that have seen these types of petitions filed. Lawrence Mirel, the DC Insurance Commissioner, has already granted terrorism exclusion requests from five different insurance companies. Therefore, representatives from NAREIT, NAR, WDCAR and GWCAR met with Mirel to insist he stop granting these policies with the terrorism exclusion. Further, the associations asked that he at least monitor the rates charged on insurance policies that include terrorism coverage. Mirel agreed to work with the real estate industry but stressed that unfortunately the fate of terrorism coverage lies in the hands of Congress.

Therefore, NAREIT, NAR and the other organizations have been aggressively lobbying on Capitol Hill. In a recent letter to Speaker of the House J. Dennis Hastert, it was suggested that any legislative package, which Congress creates, should include three components. First, any insurance program must be of sufficient duration to provide stability to the real estate and financial markets. Second, any insurance plan must contain a system to ensure that all business and commercial properties are covered, including those properties in high-risk, high-visibility locations. And third, Congress should ensure that any program addresses situations in which post-September 11th policies may have been issued with terrorism exclusions as well as definitions of terrorism at variance with any newly created program's definition.

GWCAR and WDCAR represent members who work in our nation's capital, which is one of the higher-risk areas of the country.  Therefore, we will continue to work closely with NAR and NAREIT on this critical issue. Without Federal action this year, the ability to finance, construct, buy or sell properties across the nation will be at risk.     

For more information on this issue, please contact Meredith Weisel at mweisel@gcaar.com or 202.887.6211.

Expediting the Permitting Process for Maryland Park & Planning

GWCAR, the Maryland Chamber of Commerce, and some local developers have begun a dialogue on expediting the Maryland-National Capital Park & Planning's permitting process. Delegate Dana Dembrow has introduced legislation that would require the disposition of building permits by a date certain for non-controversial commercial projects. Meredith Weisel and Damian O'Doherty will be convening a working group to determine best practices for expedited permitting processes. To participate please contact mweisel@gcaar.com.

National Association of REALTORS^® - Federal Updates

RAA Staff Meet With FCC Cable Bureau

On Wednesday, November 14, 2001, certain staff of the Real Access Alliance met with officials from the FCC's Cable Bureau to discuss Inside Wiring issues related to exclusive and perpetual contracts (FCC Docket No. 95-184). Representatives of the RAA included Roger Platt (RER), Rob Cohn (NAREIT), Jim Arbry (National Multi-Housing Counsel), Bruce Lundegren (NAHB), Matt Ames (Miller and Van Eaton attorney advising RAA), Megan Booth (IREM), and Doug Miller (NAR).  FCC participants included Holly Berlin, Eloise Gore, John Norton, Royce Sherlock, and Sarah Whitesall. 

The Goal of the meeting was to ensure that the FCC does not further regulate contractual relationships between Property Owners and Video Programming Providers. The RAA has been lobbying the FCC on these Inside Wiring issues for over two years. The RAA believes that exclusive contracts between providers of video programming and building owners should not be prohibited, both because in many cases they promote competition, and because of the RAA's desire to respect contract and property rights. The RAA believes that "perpetual" contracts, on other hand, do not promote competition, but out of respect for contract rights has not called for Commission regulation of such agreements. RAA communicated its position to the FCC again at this meeting. Jim Aubry agreed to survey his members to obtain more industry data regarding exclusive and perpetual contract use.

For more information, contact Megan Booth at mbooth@REALTORS.org or 202-383-1222, Doug Miller at dmiller@REALTORS.org or 202-383-1117, or Amy Fletcher at afletcher@REALTORS.org or 202-383-1234. 

NAR President Meets with Treasury Officials, Members of Congress

In continuing efforts to voice NAR's strong opposition to the proposed regulation that would permit banks to be involved in real estate brokerage and management activities, NAR President Edwards came to Washington in November to attend a meeting with Treasury Department officials and members of Congress.   Edwards' meeting with Treasury was in follow-up to a White House meeting prior to NAR's convention, where over 36,000 letters were delivered on disk.  At the meeting last week, Edwards' presented an additional disk of REALTOR® letters collected at the NAR convention as well as through e-mails received in Washington to top operatives of the Treasury Department.

Edwards also met with Senator Mitch McConnell (R-KY), where he and Judy Piazza, Government Affairs Director of the Kentucky Association, told McConnell of the devastating effect the regulation would have on consumers and the economy and asked for his assistance in opposing the regulation.  Edwards went on to meet with Rep. David Weldon (R-FL), who serves as vice chairman of the House Financial Institutions Subcommittee, as well as Reps. Ken Bentsen (D-TX) and Eric Cantor (R-VA), who both serve on the Subcommittee, to thank them for their support and to ask for their continued focus on this issue.

For more information, contact Laura McPherson at lmcpherson@realtor.org or 202-383-1131.