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Volume I, Issue 2
Jan 29, 2008

Updates From Last Week

Eminent Domain:
On January 22nd The Senate passed SB 194, which states public use to justify eminent domain property acquisitions shall not include uses or purposes to primarily generate public revenues through private land owners. SB 194 was referred to the House Transportation Land Use and Infrastructure Committee. DAR believes that there are instances where eminent domain for redevelopment of blighted areas, no matter how distasteful, is necessary in some circumstances. DAR has prepared and will present to the General Assembly an alternative proposal which we believe will satisfy the goals and intentions of the sponsors of both the Senate and House eminent domain bills. Look for more detailed information in next week's Government Affairs Update.

Rent Control and First Right of Refusal Legislation:
Tenants and owners met this week and plan to meet again on February 21st to review a bill proposed by the tenants. On January 24th, an effort to suspend the rules of the House and pass HB 296 which would put a moratorium on rent increases for manufactured homes until the pending proposals are reviewed by the 144th General Assembly was defeated.

Transfer Tax:
DAR continues to express its opposition to the proposal to increase the Realty Transfer Tax by .28% to 3.28% to support construction at the Delaware Technical and Community College outlining our concerns in a letter to the full Senate. Dr. George will appear before the Joint Finance Committee on February 6th speaking on behalf of the increase. On February 27th the House Education Committee will have a hearing on the issue. DAR will be there to express our strong opposition to any increase in the realty transfer tax. We encourage you to join us at Legislative Hall. Look for more information in upcoming updates. You can find talking points on the issue in the Government Affairs section at www.delawarerealtor.com.

Agency Bill:
DAR is seeking several technical corrections to the new real estate agency law passed in the 143rd General Assembly. Two of the more significant are: 1) if the Broker's business model includes offering services explained in the CIS, rather than having separate charges for distinct brokerage services, the CIS is sufficient disclosure and 2) for rental of residential property not otherwise exempt from the requirement to provide the CIS, the CIS shall be given to the potential tenant at the first scheduled appointment or showing of the property, but does not need to be signed until the potential tenant decides to complete a rental application. We expect the Senate will consider the bill early in March upon their return from the break for Joint Finance Committee hearings.

Homeowner Insurance Cancellations:
DAR supports Commissioner Denn's efforts to protect homeowners from having their insurance cancelled for making inquiries or claims. On January 15th, SB 191 was introduced by Senator Sokola (D-Newark) and sponsored by Rep. Longhurst (D-Bear) which would prevent insurance companies from terminating homeowner policies in response to claims or policy questions. SB 191 was heard before the Senate Insurance and Elections Committee on January 23rd and reported out of Committee with 2 favorable and 2 on its merits.

 

New This Week

Tax Ditch Legislation:
On June 28th, 2007, the House of Representatives passed House Amendment 1 to House Bill 189 to reduce the right-of-way to a maximum of 95 feet from the centerline of the ditch on those lands with agricultural uses and a maximum of 50 feet from the centerline of the ditch on those lands with non-agricultural uses; unless previously altered though a change to the original court order. Agricultural structures may be placed within the 95 feet so long as they are outside of 50 feet as measured from the top edge of the ditch bank. The legislation was assigned to the Senate Finance Committee on January 9th. Lauren Alberti, DAR's President-elect is representing the REALTOR® community on a working group on this issue. We expect a new bill to be put forth as a result of the committee's work.

New Overlay Zone Legislation Introduced:
On January 24th, Representative Cathcart (R-Middletown) (along with Representatives Spence, Valihura, Carson, Blakey and Senators Ennis and Peterson) introduced HB 306 which clarifies that local governments may use overlay zones as planning and use regulation tools without violating the uniformity requirement in the Delaware Code. The legislation was referred to the House Transportation, Land Use and Infrastructure Committee. DAR has met with officials in the Minner administration about this issue expressing our concerns about legislation which would allow zone changes at will which could drastically diminish property value with no notification to property owners in the zone. We will oppose this similar legislation.

DNREC Announces 2008 Legislative Agenda:
Secretary Hughes appeared before House and Senate Committees to announce DNREC's legislative agenda. There are several issues which DAR will be closely following including DNREC's proposals to: update residential and commercial building codes for energy efficiency, increase permitting fees for on-site wastewater, and enhance the open space funding they receive from the transfer tax. Also at the hearing Senator McBride (D-Hawk's Nest) mentioned eliminating deed restrictions that prevent the use of windmills and solar panels which we will also be following closely.

New Stormwater Regulations on the Horizon:
DNREC is beginning to look at rewriting the storm water regulations affecting such issues as buffers, runoff, impervious surfaces and requirements for 10 and 20 year storms. DAR is participating in a series of meetings and will keep you posted on DNREC's direction.

Free Workshop on Stormwater Pond Maintenance:
Property owners living in a community or development in Sussex County who want to learn more about how to maintain stormwater ponds are invited to attend a free, two-hour workshop being offered Feb. 13 and 20, through the Department of Natural Resources and Environmental Control's Sediment and Stormwater Section, DNREC Watershed Assessment Section, Sussex Conservation District and the Center for Inland Bays. The two workshops will be held from 6:30 to 8:30 p.m. on the following dates: Wednesday, Feb. 13 - Millville Town Hall, Millville and Wednesday, Feb. 20 - Carvel Research and Education Center, Georgetown. The workshops are offered free of charge. However, pre-registration is required. To register, or for more information or directions, please contact the Sussex Conservation District at 302-856-7219.

 

Other Issues of Interest

HB 42, Legislation adding two seats to the Sussex County Council:
HB 42 which would increase the size of Sussex County Council from 5 - 7 members passed the House of Representatives on Tuesday, January 22nd with 35 members in favor, 4 against and 2 absent.

HB 280, Legislation requiring all subdivision roads in Sussex County to conform to standards adopted by DOT:
HB 280 was heard before the House Transportation, Land Use and Infrastructure Committee on January 23rd and was reported out of Committee with 5 favorable and 1 on its merits.

HB 278, Legislation raising the height of the Cherry Island Landfill:
HB 278 is currently pending in the House Energy and Natural Resources Committee. This legislation is in response to a requirement which went in to effect on January 24th where yard waste cannot be disposed of or mixed with household trash in northern New Castle County.

HB 244, Legislation setting up a process for the transfer of development rights (TDR) and a TDR bank and creating Special Development Districts to provide for financing of infrastructure:
HB 244 was reported out of the House Transportation and Infrastructure Committee at the end of session last year and is currently on the House ready list. We expect a new bill to be introduced which addresses some concerns expressed by the farming community.

S 179, Legislation amending Title 24 relating to real estate appraisal:
S179 revises the definition of appraisal to enable the enforcement of the penalty for unlicensed practice, defines real estate appraiser removing the qualification that the activity must be performed "for compensation or valuable consideration", changes the configuration of the council where the four seats slated for professional members there will be one certified general real property appraiser and at least 2 certified residential appraisers with option to fill the remaining seat with a licensed residential appraiser, certified residential appraiser or a certified general real property appraiser. S 179 with a technical amendment passed the Senate and was introduced and assigned to the Policy Analysis & Government Accountability Committee in the House.

SB 118, Legislation tying the prevailing wage rate to the collective bargaining rate:
Opponents of the legislation report that SB 118 would inflate the cost of public construction by $24-30 million further intensifying road, school and other construction delays. SB 118 passed the Senate last year, was passed by the House of Representatives on January 24, 2008 and signed into law by Governor Minner.

 

Parting Thoughts

General Assembly Recess:
The General Assembly is in recess until March 11th. This is a perfect time to visit with your elected officials at home and let them know how you feel about these REALTOR® issues! If you would like any additional information on these or any other issues, please contact Charlotte Herbert, DAR's Government Affairs Director at 302-734-4444 or charlotte@delawarerealtor.com.

Next Tuesday, February 5th is Delaware's Presidential Primary!
The Delaware Presidential Primary is a closed primary. Any person who wishes to vote in the Presidential Primary Election must be registered to vote with either the Democrat or Republican political parties. To find your voting location, call 1-866-276-2353. Polls are open from 7:00 a.m. to 8:00 p.m. VOTE and let the REALTOR® VOICE BE HEARD!

Delaware Association of REALTORS®
Kent County    —    New Castle County    —    Sussex County
134 East Water Street, Dover, Delaware 19901, USA
Phone (302) 734-4444  ~  Fax (302) 734-1341  ~  Email info@delawarerealtor.com
www.delawarerealtor.com
© Copyright 2008 Delaware Association of REALTORS®

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