MAY 17, 2012::Find a REALTORFind a HomeRealtor.orgDivision of Real Estate
Commercial/IndustrialOhio Housing Finance Agency

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Public Policy...Key Legislative Issues

OAR's Public Policy Department is currently involved in the following legislative initiatives:

Senate Bill 43 -- Trust Account Interest
a. Would require broker's trust account to earn interest and for the interest to be paid quarterly to the State to fund foreclosure prevention programs

OAR Position: OPPOSE

Rationale: While we recognize that many of Ohio's foreclosure prevention programs are in need of funding support due to the prolonged economic slowdown impacting our state, we do not believe this method should be implemented. Today's market would not allow for the accumulation of interest or dividends in sufficient amounts to adequately fund these efforts. Additionally, to put the onus on the broker to constantly monitor these accounts to ensure the quarterly reporting and forwarding of all interest and dividends to the state is an unfair burden on Ohio's real estate companies. It is for these reasons that we oppose SB 43.

Status: Pending in Senate Financial Institutions Committee

House Bill 32 -- Definition of Surveying
a. Clarifies Ohio law so that persons other than engineers and surveyors could continue to prepare plans, drawings and make various measurements for purposes of siting or designing an onsite waste water treatment system.
b. The legislation would continue to allow competent sewage system designers, installers and registered sanitarians to perform those functions as has previously been the case thus minimizing design costs for homeowners.

OAR Position: SUPPORT

Rationale: The Ohio Association of REALTORS has from the onset been very concerned about the impact the new septic rules would have on the cost to homeowners in our state. The services of a professional surveyor will add greatly to the system cost and in many area of Ohio cause a significant delay securing a permit. This issues has been debated by the agencies and parties involved for over a year without reaching any compromise on the matter. Furthermore, the surveyors and engineers never mentioned the issue of surveying or siting waste water treatment systems despite the fact they have representatives on the commission. Finally, the state board for Professional Engineers and Surveyors never discussed or challenged siting and/or surveying activities during the nearly ten year legislative process on HSTS issue. Given the dynamics it has become necessary to resolve this issue through legislation.

Status: Passed House 92-2; Pending in Senate Agriculture Committee

House Bill 105 -- Termination of Lease for Victims of Domestic Violence
a. Would allow a tenant who is a victim of domestic violence to terminate a rental agreement or have the tenant's name removed from the rental agreement under certain circumstances.
b. Would require a landlord of a tenant who is a victim of domestic violence or menacing to change the lock of the dwelling unit.

OAR Position: MONITOR

Rationale: House Bill 105 seeks to provide a tenant that is a victim of domestic violence the opportunity to escape a violent and threatening situation by removing themselves from a rental agreement or termination of the lease with proper notification and legal documentation. A victim of domestic violence also has the right to request that the landlord change the lock on the property with proper notification and legal documentation at the tenant's expense. While House Bill 105 places additional responsibility on the landlord, we believe that OAR should continue to work with the sponsor to ensure this piece of legislation provides the best avenue to ensure the safety of the victim and others that may be impacted by this unfortunate situation.

House Bill 106 -- Termination of Lease for Military Service
a. Would enable members of the armed services and Ohio National Guard to terminate a rental agreement when the member receives military orders to deploy or for a permanent change of station.

OAR Position: MONITOR

Rationale: Federal law already gives military personnel lease and rental agreement protections under the Service Members Civil Relief Act. This federal act states that individuals who signed a rental agreement or lease before joining the armed services and entering into active duty may terminate the agreement early. The law requires that you either receive orders for a permanent change of station or orders for active-duty service of at least 90 days. Since House Bill 106 for all intent and purposes mirrors federal law we see no reason why the Ohio law needs to be changed to provide protection for our brave men and women in the military. We will continue to monitor the legislation to determine if the sponsor seeks to go beyond the scope of the federal law.

House Bill 10 -- Voluntary Action Program
a. Provides tax credits to owners of real property that enters into the voluntary action program.

OAR Position: SUPPORT

Rationale: If enacted House Bill 10 would provide tax benefits to an owner entering into the voluntary action program. The VAP encourages businesses to remediate and reuse property contaminated by hazardous materials or petroleum by providing various benefits after remediation occurs, including issuance of a covenant not to sue, which immunizes the property owner from civil liability. HB 10 additionally offers a credit equal to 25% of the taxpayers expenditures made to conduct the remedial activities resulting in the covenant. A second credit is also allowed for those who return the property to a productive use. We believe these incentives in addition to the current VAP will provide a great benefit to owners of vacant commercial properties that may require remediation to attract new occupants. For these reasons we ask that you support HB 10.

Senate Bill 50 -- Energy Tax Credits
a. Provides limited tax credits for landlords improving energy efficiency of residential rental property.

OAR Position: SUPPORT

Rationale: Senate Bill 50 authorizes a refundable income tax credit for landlords installing an energy efficient device or improvement in a residential rental property. The bill allows for a credit equal to 15% of the device or improvement. Eligible devices include major household appliances, HVAC systems, as well as windows and doors. An energy efficient improvement is a permanent improvement that will generally reduce energy consumption, allow for a reduction in demand or support the production of clean renewable energy. These credits will allow a landlord to make improvements to lower the operational costs of their properties while improving marketability to tenants. For these reasons we ask that you support SB 50.

Internet Recorder's Fee
a. Would permit the office of the County Recorder to place public documents housed within the County Recorders office on their website so anyone can access the information 24 hours a day, seven days a week.
b. Would require the County Recorders to charge a single user fee of $1 per printed page and also establish a "commercial user" fee for those entities (i.e., Title Companies) that print out a large amount of documents from the website.

OAR Position: MONITOR

Rationale: Roughly 10-15 County Recorders across Ohio have their documents accessible to the public via their website. Only a few of these counties allow an individual or commercial user the ability to print out a document via their home or office and legally utilize the document. The legislation drafted by the County Recorders Association would allow all offices of the County Recorder to place their files online for public access and charge a single user fee and commercial fee. While this bill impacts our association, the steering committee felt it necessary for staff to have more discussion with the Title companies, banks, etc. prior to taking apposition on the bill. We do not want to support any new fee or increase in a fee without working with the businesses that are directly impacted by this bill.

Updated: May 2011


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