HBAA Legislative Alert
Education Budget One Step Closer To Passage
The Senate passed its version of the Education Budget on Thursday. The $6.3 billion budget heads back to the House where it is likely to be assigned to a conference committee to work out differences between the two versions.
Included in the 2017 budget are strategic increases for community colleges, veteran scholarships, and student assessments. Also included is a four percent pay raise for education employees.

Once the House and Senate agree on the budget's final form, it will head to the Governor where it is expected to be signed.
Sprinkler Bill Extinguished
The Senate's State Government Committee carried over HB 114 for a second time on Wednesday. The bill was first considered by the committee two weeks ago but was carried over after committee members felt it created unnecessary regulation. Senator Jimmy Holley (R-Enterprise), chair of the committee, agreed to give the sponsor, Rep. Tommy Hanes (R-Scottsboro) a second chance to move his legislation. Unfortunately, the bill was carried over after committee members stood behind their earlier concerns.

The HBAA would like to commend Rep. Tommy Hanes for working diligently to address the concerns of the sprinkler industry, commercial contractors, fire chiefs, and the HBAA.   Although the bill did not pass, it was the first time the measure advanced past the House for consideration in the Senate. The HBAA commits to continuing to work with Rep. Hanes to move his legislation during the next session.
Title Loan Bill Raises Eyebrows
The HBAA weighed in on a bill this week that is currently making its way through the House. House bill 129 by Rep. Jim Hill (R-Moody) would exempt attorneys, involved in the sale of title loan insurance, from licensure by the Department of Insurance.   The HBAA agreed to see if it could mediate an agreement between the two sides of this issue in response to concerns raised by several title loan members.

Title loan companies fear that attorneys will be operating without regulatory oversight. Attorney groups are regulated by the Alabama State Bar and do not want to have to face further regulation by another entity. Another issue revolves around the continuing education requirements. Currently, an attorney is required to complete 24 hours of continuing education every two years. This is equal to the amount of hours required on title insurance licensees. Both sides agree that the hours taken by the attorney should be deemed equivalent and satisfy the Department of Insurance's requirement.

The HBAA is hopeful that the issue will be resolved in the near future.
NAHB ACTION ALERT
SAVE Act Could Increase Appraisals Based on Energy Efficiency
As you know, energy efficiency investments are not considered when mortgage lenders evaluate potential buyers.  Additionally, appraisals typically don't reflect these investments either. NAHB is pushing legislation that will address both of these issues and they need help securing the support of key Senators, including Alabama's own Jeff Sessions.
 
If enacted, the SAVE Act will:
  • Allow HUD, working with industry stakeholders, to create energy efficient appraisal guidelines.
  • Allow a home owner to voluntarily secure an energy efficiency report to be used by lenders to better assess risk and apply those savings to loan affordability tests (e.g. debt-to-income) - in other words if a home owner will save $200 per month because of reduced utility bills, they can afford that much more in their mortgage.
  • Should an appraisal not reflect the value of the energy efficient improvements in a home, then the Act will instruct lenders to include that value when calculating the loan-to-value ratio.
The United States Senate will consider a comprehensive energy bill next week and the SAVE Act will be offered as an amendment (amendment #3202) by Senators Isakson (Republican from Georgia) and Bennet (Democrat from Colorado).  We need Senator Sessions to vote FOR this amendment.
 
Please call Senator Sessions and ask him to vote for the SAVE Act - Amendment #3202.
 
Phone: Washington Office - (202) 224-4124
 
If you would prefer to email Senator Session's office, here is a draft email you can paste into the message section of his web-email portal:
                 
Dear Senator Sessions,
 
The Senate is set to consider The Energy Policy Modernization Act (S. 2012) next week.  Senators Isakson and Bennet will offer an amendment (#3202), also known as the SAVE Act - this legislation is very important to our industry.  Newly constructed homes are considerably more energy efficient than older homes, and the market for "green" homes and remodels have resulted in meaningful utility bill-savings for families. These savings, however, are not considered when mortgage lenders evaluate potential buyers. Unfortunately, appraisals also often fail to reflect energy efficient features in a home. The SAVE Act encourages the use of energy data/reports to help lenders better assess risk and account for energy savings realized by homeowners.  This is a completely voluntary program and will help many families invest in energy efficiency.
 
We need your help to ensure this amendment passes. Please vote FOR the SAVE Act amendment.
 
Thank you for your consideration, 
[insert name]
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