Identifying the businesses and people the housing industry touches would be an epic task. So when the U.S. housing market started its downward trend, the dip in sales affected more than Realtors. During this dry season, one thing became clearer than perhaps it had been in years: It is vital to the American economy to keep the housing market healthy.
But how can an individual make a difference? By being part of a larger movement that is in the thick of the battle. For Realtors, one avenue of participation is the Realtors Political Action Committee.
With critical issues hanging in the balance at the state and national levels, Realtors involved in RPAC at a local level are working to help their colleagues understand what the political action committee does and how they can be part of the cause. Robert Nodes, governmental and public affairs director of the Greater Chattanooga Association of Realtors, provides answers to the basic questions Realtors have about RPAC.
What is a political action committee?
All political action committees are registered and regulated by the U.S. Government through the Federal Election Commission. The rules governing PAC’s are extremely strict, and well enforced and audited to ensure compliance. RPAC is essentially a financial fund used to make contributions to the campaign committees of candidates seeking elected office, whether that person is an incumbent or running in opposition to an incumbent.
Who is a part of the local chapter?
All members of the Greater Chattanooga Association of Realtors are eligible to participate, as contributors, to the RPAC fund. Our Association is forbidden by law to solicit contributions from non-members.
What is the purpose of RPAC?
The creation of RPAC was designed by NAR to provide a mechanism for its members to offer financial support to the election campaigns of candidates who understand, respect, and support property rights legislation, and fair tax policies at every level of government.
What has the local RPAC accomplished in recent years?
Thanks to the elected officials who were aided by RPAC, legislation was passed to ban banks from the business of offering real estate services. This was a great victory for consumers. RPAC supported officials helped pass federal legislation providing over $600 million in tax relief through 2012 to homeowners who are forced to sell their homes for less than the amount of the mortgage. RPAC recipients also played a key role in advocating for the establishment and extension of the Homebuyer’s tax credit, offering an important incentive for many first time buyers to enter the market, and aiding in the stabilization of the housing industry during one of the worst downturns in U.S. history.
In what activities has the local RPAC participated in recent years?
In Tennessee, we have defeated the state sales tax on professional real estate services; eliminated the capital gains taxes on the sale of most principal residences; and kept competition fair for all business models and not allow for the inherent conflicts of interest or restrictions on consumer choice. Our RPAC contributions are a method of helping to elect public officials who will remain fair and open-minded on consumer and property rights issues.
What goals is the local RPAC currently pursuing?
Along with the NAR and TAR, and our partners at the Georgia Association of Realtors, we are working hard to convince our lawmakers that elimination of the mortgage interest deduction – which has been a cornerstone of the American Dream of home ownership for over seven decades – would be a disastrous mistake for consumers and the economy as a whole.
Additionally, we are lobbying six regulatory agencies in Washington regarding the Qualified Residential Mortgage rules, which many fear might place unjust financial burdens and restrictions on new home buyers just entering the market. Some of the aspects of QRM might also cause a severe delay to the full recovery from the worst aspects of the recession. Realtors want to remove partisan politics from the equation and help keep home ownership attainable and possible for every American. While regulators are not directly affected by RPAC, it is a major component of our effort to work all aspects of issues that are of paramount concern to our members and consumers.
How involved in political elections is RPAC?
Our local RPAC makes occasional financial support contributions to the campaign funds of local and regional candidates whose views and beliefs coincide with those of our members and our industry. We are never “buying” votes. No candidate would ever be considered for a contribution if he or she held views completely antithetical to our firmly held beliefs regarding property rights and fair taxation.
It is also worth mentioning that labels such as “liberal,” “conservative,” or “libertarian” do not play a role in RPAC decisions. As members of what we call “The Realtor Party,” our concerns are directed more toward common sense, economically sound policies for consumers, and distant from the “hot-button” issues that plague the public debate across the country.
One study has shown that RPAC contributions are disbursed almost exactly 50-50 at all levels of government between Republicans and Democrats.
How can local Realtors become involved in RPAC?
We encourage all of our members to contribute to RPAC, but participation is not mandatory. Contributions, by law, must be completely voluntary, without any hint of compulsion on the part of anyone. GCAR has been fortunate that a large number of our members see the benefit of RPAC to their businesses, and have caused them to be among the most generous anywhere.
How are the operations of RPAC supported?
RPAC is operated through the generosity of personal time and resources of our members. While the GCAR staff handles the day-to-day functional activities associated with RPAC, which do not entail any additional operating expenses, the most basic decisions regarding both solicitation and disbursement of funds are the entire product of choices made by the volunteer members. The ultimate judgments regarding financial support to candidates are made by the elected members of our local and state boards, who retain the authority to accept or reject the recommendations of our Trustees.