Filtered by category: Legislative Clear Filter

Charlotte NAIOP Members Advocate for Commercial Real Estate Issues on Capitol Hill

Posted on February 14, 2019

Members of the Charlotte Chapter of NAIOP traveled to Washington, D.C., last week to meet with members of Congress about issues critical to North Carolina’s commercial real estate industry. The Capitol Hill visits were part of NAIOP’s annual Chapter Leadership and Legislative Retreat, and gave Charlotte developers a chance to advocate on a range of topics, including:

  • Establishing a reasonable cost recovery period for qualified leasehold improvements;
  • Advocating for increased federal investment in our national infrastructure, including roads, ports and bridges; and,
  • Encouraging Congress to incentivize energy-efficient construction without imposing new mandates.

NAIOP Legislative Affairs Chair Jason Moore (Rodgers Builders, center) meets with Congressman Richard Hudson on Capitol Hill

During the course of the day, NAIOP members met with Senator Thom Tillis and congressmen Richard Hudson and Patrick McHenryThanks to those NAIOP members who took time out of their busy schedules to advocate for commercial real estate priorities on Capitol Hill!

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New State Law Exempts Charlotte Redevelopment Projects from Stormwater Controls

Posted on February 13, 2019

State legislation passed last month at the conclusion of the 2018 session of the General Assembly means redevelopment sites in Charlotte are no longer required to include on-site stormwater controls if no additional impervious surface is created. A provision in SB 469, a Technical Corrections bill initially vetoed by Governor Cooper but ratified through a legislative override, specifically mandates the change to local stormwater ordinances, regardless of where a local government obtains its regulatory authority.

While a redevelopment exemption for stormwater has been state law for years, the City of Charlotte has previously required controls on all projects, citing its adherence to a federal NPDES stormwater permit that called for higher local standards. REBIC has long argued that stormwater controls should not be required on redevelopments where no additional impervious surface is created.

The provision in SB 469 also allows development within a vegetative buffer, as long as the runoff from the entire impervious area of the project is collected, treated, and discharged through a portion of managed vegetative buffer. Of course, stormwater controls will continue to be required on sites whenever additional impervious surface is created.

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Treasury, IRS Give Big Win to Real Estate Professionals in Qualified Business Income Rule

Posted on January 28, 2019.

Originally posted by REBIC.

The Treasury Department and the Internal Revenue Service issued final regulations regarding the new 20 percent deduction on qualified business income. As Americans begin preparations for the 2018 tax filing season, real estate professionals have been uncertain about the true impact of the 2017 Tax Cuts and Jobs Act on their respective businesses. Friday’s ruling from Treasury and the IRS, however, signaled a significant victory for the real estate industry and for many of the National Association of Realtors®’ 1.3 million members.

“Friday’s ruling is a result of several months of advocacy and collaboration between NAR, our members, and the administration,” said NAR President John Smaby. “These final guidelines will allow real estate professionals to benefit from the Section 199A 20 percent pass-through deduction, a move that will empower Realtors® to expand their operations and provide improved services to consumers and potential homebuyers across the country. The National Association of Realtors® is grateful for the openness and transparency encouraged by Treasury and the IRS, and we thank them for their hard work to ensure the real estate community was heard throughout this rulemaking process.”

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Mecklenburg County Property Revaluations Online Now

Posted on January 28, 2019.

Originally posted by REBIC.

The 2019 Mecklenburg County Property Revaluation is complete, and property valuations are now online at the Assessor’s website.  Look for your Notice of 2019 Real Estate Assessed Value in your mailbox in late January 2019, and remember that this Notice is NOT a bill. Your property tax bill will be determined by the tax rates adopted by Mecklenburg County and the City of Charlotte later this year (probably around July).

You can also use the tools on the County website to file an informal appeal if you think your property has been improperly valued. If you disagree with the results of your Informal Review Request, you have a right to file a Formal Appeal to the Board of Equalization and Review. You may request an appeal any time prior to the adjournment of the Board of Equalization and Review or within 30 days of your Notice of 2019 Assessed Value. All requests for appeal must be made in writing and on the proper form.

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No QIP Fix, Partial Shutdown as Democrats Take over the House

Posted on January 17, 2019

The new Congress in Washington, D.C., features plenty of new faces, with Democrats controlling the House of Representatives for the first time since 2010. But the new class will be dealing with some old problems as 2019 begins. 

Most of the government was funded before the start of the 2019 fiscal year, which began in October. Yet 25 percent of the federal government remains shut down after lawmakers and President Donald Trump couldn’t agree on a spending deal. Trump insists he wants $5 billion to fund a wall along the Mexican border, which Democrat lawmakers are refusing. The president says the shutdown could last for “months or even years.” 

Also, the lame duck Congress failed to address some technical mistakes it made when writing the 2017 Tax Cuts and Jobs Act. For example, when they were writing the bill, lawmakers wanted to allow real estate businesses to depreciate Qualified Improvement Property (usually expenditures associated with interior tenant improvements) over a time span of 15 years. Instead, because of a drafting error, the law as written imposes a 39-year depreciation schedule. 

NAIOP is part of a coalition encouraging the administration and lawmakers to fix that mistake. Congressional lawmakers in both parties acknowledge the mistake and want it fixed. Before the outgoing Congress wrapped up, former House Ways and Means Committee chairman Kevin Brady released a draft reform bill for discussion. The new chair of the committee, Richie Neal (D-MA), says he wants to hold hearings to discuss the tax law. But making any technical corrections will require passing a new law, and it isn’t clear when that might happen.

Charlotte Sets Public Hearing Date for New TOD Ordinance

Posted on January 15, 2019

The City of Charlotte has set a February 25th Public Hearing date for a new Transit-Oriented Development (TOD) Zoning Ordinance, despite a key Building Height Bonus provision still undergoing revision.

REBIC and other industry groups have worked with City staff on the draft for more than a year, as part of a comprehensive stakeholder review process that has seen a number of restrictive provisions pared down or eliminated. But the Building Height Bonus provision, intended to encourage the construction of Affordable Housing units along transit corridors, was only unveiled on December 13th, and has yet to be modeled for effectiveness.

The Height Bonus, which is designed to advance City policy priorities such as affordable housing, open space preservation and sustainability, will give developers the opportunity to amass points that can be used to increase their building height. It would allow buildings to rise as high as 300′ in the highest-density TOD district when the maximum amount of points are obtained. Developers would also be able to increase their building height by paying a fee-in-lieu that that would go into the city’s Housing Trust Fund.

Click here to read more.

New State Law Exempts Charlotte Redevelopment Projects from Stormwater Controls

State legislation passed last month at the conclusion of the 2018 session of the General Assembly means redevelopment sites in Charlotte are no longer required to include on-site stormwater controls if no additional impervious surface is created. A provision in SB 469, a Technical Corrections bill initially vetoed by Governor Cooper but ratified through a legislative override, specifically mandates the change to local stormwater ordinances, regardless of where a local government obtains its regulatory authority.

While a redevelopment exemption for stormwater has been state law for years, the City of Charlotte has previously required controls on all projects, citing its adherence to a federal NPDES stormwater permit that called for higher local standards. REBIC has long argued that stormwater controls should not be required on redevelopments where no additional impervious surface is created.

The provision in SB 469 also allows development within a vegetative buffer, as long as the runoff from the entire impervious area of the project is collected, treated, and discharged through a portion of managed vegetative buffer. Of course, stormwater controls will continue to be required on sites whenever additional impervious surface is created.

Thanks are due to the North Carolina Home Builders Association (NCHBA) and State Representative Dean Arp (R-Union) for their support of this critical legislation!

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Taxes and Spending Issues in the Lame-duck Congress

Posted on December 11, 2018

Lawmakers return to Washington, D.C., this week to continue their post-election lame-duck session. It isn’t clear exactly what issues they will deal with, but taxes and spending are major concerns.

One key issue that NAIOP continues to focus on is the need to fix some clerical errors in the 2017 tax reform bill. NAIOP is part of a group of hundreds of organizations and businesses pressing for a technical corrections law. This would require a majority in the House and at least 60 votes in the Senate, so it would need to be bipartisan. Lawmakers on both sides of the aisle have indicated they understand the need for action on at least one issue: Qualified Improvement Property.

Lawmakers also face a December 7 deadline to fully fund the federal government. They passed, and President Donald Trump signed, a partial budget in September, just before the 2019 fiscal year began. Time is of the essence when it comes to completing the spending bill, as there are only about 12 legislative days available in the lame-duck session.

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Dueling Tax Proposals as Election Looms

Posted on November 7, 2018

President Donald Trump and Republican lawmakers are promising to pass legislation to deliver further tax relief for the middle class.

“Business will not enter into it, and this will be on top of the tax reduction that the middle class has already gotten, and we’re putting in a resolution probably this week,” Trump told reporters in the Oval Office last week.

Lawmakers are out of session until after Election Day, Nov. 6. Rep. Kevin Brady, chair of the Ways and Means Committee, said, “We will continue to work with the White House and Treasury over the coming weeks to develop an additional 10 percent tax cut focused specifically on middle-class families and workers, to be advanced as Republicans retain the House and Senate.” Brady also hinted Republicans may cut government spending if they retain the House.

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New Advantage Series Webinar: Legislative and Political Update

Posted on November 5, 2018

Register Online

The Advantage Series is an exclusive member benefit, delivering expert insights into the latest research to help you make informed business decisions.

This webinar will provide members with an analysis of the recent midterm elections and the potential impact on NAIOP’s top public policy and legislative priorities.  Aquiles Suarez, NAIOP’s vice president for government affairs, and Alex Ford, NAIOP director of federal affairs, will discuss issues including tax legislation, the future of infrastructure policy, environmental issues and federal regulatory matters.  Attendees can pose questions regarding federal issues affecting their business and gain insights to prepare them for any future regulatory or legislative challenges.


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Why We’ll be Voting YES for City Bonds

Posted on October 30, 2018

By Joe Padilla

Charlotte has an Affordable Housing crisis -- it's an undeniable fact. Our crisis is not unlike those faced by dozens of American cities, large and small, where a limited supply of land and rooftops pushes rents and home prices out of reach for many. It's a unfortunate byproduct of our own success, driven by the growing appeal of a city that continues to attract more than 40 new residents a day with our high quality of life, temperate weather and strong job market.

What is also undeniable is that the need for affordable housing exists across much of the income spectrum. The U.S. Department of Housing & Urban Development (HUD) pegs the Charlotte MSA's Area Median Income (AMI) right around $74,000. Using the rule of thumb that no one should spend no more than 30% of their gross income on housing, a family of four earning 80% of AMI ($56,550 a year) could pay a maximum of about $1,400 a month in order to avoid being what the government considers 'cost burdened.' On the lower end of the income spectrum, a family of four at 30% AMI ($35,350) shouldn't exceed about $883 in monthly housing costs.

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Treasury Releases Regulatory Proposal for Opportunity Zones

Posted October 25, 2018

Potential investors are getting some clarity about how they may use Opportunity Zones to reduce their capital gains taxes. Last week, the Department of the Treasury released proposed rules for the zones, which were created as part of last year’s tax reform bill. Earlier this year, Treasury had approved opportunity zones – communities that have been identified as economically disadvantaged – in all 50 states, the District of Columbia and five U.S. territories.

“We want all Americans to experience the dynamic opportunities being generated by President Trump’s economic policies. We anticipate that $100 billion in private capital will be dedicated towards creating jobs and economic development in Opportunity Zones,” Treasury Secretary Steven Mnuchin said.

NAIOP supported the inclusion of the Opportunity Zones provisions in last year’s Tax Cuts and Jobs Act. Opportunity Zones allow investors to “defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund,” the IRS explained. “[I]f the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.”

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CALL TO ACTION: Get Out & Vote!

Posted on October 16, 2018

REBIC has put together an Election Guide to help you cast your vote for candidates who support the real estate industry.

See which candidates REBIC has endorsed.
View early voting times and locations.

Lawmakers Try to Deliver QIP Fix

Posted on October 12, 2018

Lawmakers in both parties are beginning to understand the real-world consequences of a drafting error in the 2017 Tax Cuts and Jobs Act and are asking for a fix. Last week, a group of 12 Senate Democrats sent a letter to Treasury Secretary Steven Mnuchin urging action on the tax treatment of Qualified Improvement Property (QIP). A similar letter from 58 House Republicans was also delivered to Speaker Paul Ryan.

QIP is broadly defined as improvements to an interior portion of a commercial building. These include tenant improvements or an office build-out.

Kevin Brady, Chairman of the Ways and Means Committee, has promised to introduce and advance a technical corrections bill in the lame duck session of Congress, following the November midterm elections. But with Republicans’ majority in the House in jeopardy, it remains unclear whether Democrats will be willing to help move the bill before the end of the year.

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NAIOP Joins Letter Urging Speedy QIP Fix

Posted on September 5, 2018

A total of 283 groups including NAIOP are asking the Trump administration to swiftly address particular drafting errors that were made in the Tax Cuts and Jobs Act before it was signed into law last year. In a letter sent to Treasury Secretary Steven Mnuchin, the groups asked specifically about two provisions: those dealing with qualified improvement property (QIP) and net operating losses (NOL).

QIP is a central concern for NAIOP, as we strongly support a shorter depreciation schedule. “Should the law be left unchanged, a real estate firm investing $5 million to renovate its property would lose out on more than $100,000 each year in deductions, money that could be spent on hiring new staff, or reinvesting in the business,” wrote NAIOP Chairman Jim Neyer in an op-ed for the Cincinnati Enquirer. “Worse yet, companies might decide to hold off on these projects,” Neyer warned.

The group letter makes a similar point. “The delay in correcting these provisions has caused economic hardship for some retailers, restaurants, members of the real estate industry, and suppliers of building products, and is also delaying investments across the economy that impact the communities in which these companies are doing business,” it says.

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Senate Passes Extension of National Flood Insurance Program, Sends Bill to President’s Desk

Posted on August 6, 2018

Just hours before coverage was set to lapse for thousands of homeowners, the Senate approved a bill Tuesday to keep the National Flood Insurance Program operating for four more months.  President Donald Trump is expected to sign the bill—which cleared the House last week—into law before midnight Tuesday, when the program expires.

“We applaud lawmakers for taking this needed action to prevent disruptions to closings in thousands of communities across the country,” Elizabeth Mendenhall, president of the National Association of REALTORS®, said in a statement. “Although the program is now extended through Nov. 30, the NFIP is in desperate need of reforms that will make the program solvent and sustainable for the long-term. The National Association of REALTORS® will continue fighting for these reforms.”

The NFIP provides critical flood insurance to homeowners in more than 22,000 communities nationwide, but Congress has wrestled for years with proposals to reform the program, which remains on shaky financial footing.

Click here to view original post by REBIC.

Supreme Court: States May Collect Internet Sales Tax

Posted on July 2, 2018

The U.S. Supreme Court ruled in South Dakota v. Wayfair, Inc. that states may collect sales taxes from online retailers, even if those sellers do not have a physical location in the state. That reverses a decision the Court had made in 1992 in Quill Corp. v. North Dakota.

NAIOP supports the collection of existing sales and use taxes from online retailers when these taxes are already owed to state and local governments, including backing legislative efforts in Congress that would specifically empower states to do so. Not collecting these taxes puts brick-and-mortar retailers at a disadvantage to out-of-state vendors whose purchasers can avoid taxes, as the Court pointed out in its decision.

“Each year the physical presence rule becomes further removed from economic reality and results in significant revenue losses to the States,” Justice Anthony Kennedy wrote in the decision. “These critiques underscore that the physical presence rule, both as first formulated and as applied today, is an incorrect interpretation of the Commerce Clause.”

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General Assembly Winds Down, with Both Wins & Some Unfinished Business for Real Estate Industry

Posted June 27, 2018

As the North Carolina General Assembly winds down an unusually short Short Session in Raleigh, Realtors®, home builders, property managers and developers are looking at some legislative victories — along with some unfinished business.

First, the wins …

  • HB 948 – Building Code Regulatory Reform — Clarifies existing language allowing licensed architects and engineers to certify components or elements of a building, without the need for a city or county inspection; gives builders the ability to request inspections from a state program in the event a local inspection can’t be provided within 48 hours; and, provides greater flexibility to the State Qualifications Board to grant provisional licenses to code enforcement officials. Thanks to Representative Mark Brody for his leadership in sponsoring this bill!
    Status: On Governor’s Desk
  • SB 224 — Landlord Recovery Expenses — Allows landlords to recover legal fees and other out-of-pocket expenses in summary ejectment cases. The legislation was introduced in response to a recent Superior Court decision that required a landlord to reimburse a tenant nearly $200 in eviction expenses after he paid his past-due balance.
    Status: On Governor’s Desk
  • HB 826 – Clarify System Development Fees — Clarifies and streamlines the water/sewer capacity fee authority approved for local governments in 2017. Thanks to Senator Paul Newton for his work on this important legislation.
    Status: On Governor’s Desk
  • SB 99 — Appropriations Act of 2018 — The state budget includes a crucial provision that allows contractors who pay tax on materials covered under the Repair, Maintenance & Installation (RMI) sales tax provision to pay those taxes at the retail level and receive credit from the Department of Revenue.
    Status: Session Law 2018-5

Now the unfinished business …



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General Assembly Approves Building Code Reform Legislation

Posted on June 25, 2018

The North Carolina General Assembly approved last week's legislation that would make substantive reforms to local building permitting and inspection processes both Mecklenburg County and statewide.

HB 948 – ‘Building Code Regulatory Reform‘ was sponsored by Rep. Mark Brody (Union), and makes some very beneficial changes to the permitting and inspection process that would benefit both home builders and commercial developers. They include:

  • Clarifies existing language allowing a licensed architect/engineer to certify a component or element of a building, without the need for a city or county to inspect and approve that component.
  • Gives the State Department of Insurance the statutory authority to assign Marketplace Pool inspectors to conduct an inspection in the event the local officials cannot provide one within 2 business days of a request.
  • Provide greater flexibility for the State Q-Board to grant provisional licenses to Code Enforcement officials who are certified and in good standing in other states, which will help address the growing issue of inspector vacancies across North Carolina.

HB 948 is now awaiting Governor Cooper’s signature. Thanks to the North Carolina Home Builders Association (NCHBA) for their leadership on this critical piece of legislation.

NAIOP NC Visits Raleigh

Posted on June 6, 2018

On May 30, 2018, the three chapters of NAIOP North Carolina, visited capitol hill to advocate.  A special thanks to Jason Moore (Charlotte Legislative Committee Chair) and Joe Padilla (REBIC) for helping coordinate visits with legislators to speak about the commercial real estate perspective.  While this is a short session (this means the time of the session is short, but also that new legislation cannot be introduced), it is of critical importance the state senators and representatives know who NAIOP is and what we represent. 

The key areas of discussion are around regulatory reform, economic development and tax reform.  To view the NAIOP NC 2018 Legislative Priorities, click here.  A special thanks goes to the following legislators that took their time to meet with us directly:

  • Chris Thomas
  • Jason Moore
  • George Lyles
  • Jim Gamble
  • Tim Robertson