THE 2020 SESSION OF THE VIRGINIA GENERAL ASSEMBLY was historic in many ways as Democrats took control of both the House and Senate for the first time in years, women held top leadership posts, and Northern Virginia legislators chaired a majority of the committees.
WOMEN AND NORTHERN VIRGINIA IN POWER
For the first time in Virginia’s history, a woman, Delegate Eileen Filler-Corn (Fairfax) became Speaker of the House. In addition to Filler-Corn, women also took the Majority Leader and Clerk of the House positions – Delegate Charniele Herring (Alexandria) and Suzette Denslow, respectively.
Of the 14 House Committees, nine are now chaired by Northern Virginians, and in the Senate, six of the nine committees are chaired by Northern Virginia legislators. Senator Dick Saslaw returned as Majority Leader, a position he has held in the past.
REALTOR® AGENDA SUCCESSFUL
Unless otherwise noted, bills become effective on July 1, 2020.
The Realtor® legislative agenda was successful with all nine of the bills introduced being passed by the Legislature. However, although the Governor signed eight of the bills, he has not, as of this writing, signed the Association Health Plan legislation.
ASSOCIATION HEALTH PLANS A PRIORITY
The key bill for the Realtor® community was the Association Health Plan legislation. Carried by Senator George Barker (Fairfax/Prince William) and Delegate Chris Hurst (Radford), this legislation would allow the Virginia Realtors® association to contract with an insurance carrier to offer insurance to Realtors®. As independent contractors, our members are currently forced to consider costly insurance plans which many say they cannot afford.
Over the past year, staff at the Virginia Realtors® worked to craft legislation that addressed the Administration’s concerns about such association plans. The legislation provides that individuals would not be denied coverage based solely on “pre-existing” conditions, that the Essential Health Benefits under the Affordable Care Act are included, and that a wide range of preventive services would be included.
The Governor added a reenactment clause to the bill, meaning we would have to introduce the exact bill and have it passed again next year. In response, a Call-To-Action was sent out and 6,500 Realtors® responded by emailing their legislators. In addition, VAR and NVAR lobbyists undertook an intense lobbying campaign, asking legislators to reject the Governor’s reenactment clause. The effort was successful, and the bill has now been sent back to the Governor who can let the bill become law or veto it.
Another Call-to-Action has been issued, asking members to email the Governor’s office. At this writing, we do not know what the Governor will do.
OTHER REALTOR® BILLS PASSED BY THE LEGISLATURE INCLUDE THE FOLLOWING:
HB 176 (SIMON – FAIRFAX) AND SB 672 (MASON– WILLIAMSBURG) provides that parties to a transaction for a property located in a POA or Condo association may agree to extend the three-day right of rescission for up to an additional four days. Currently, the law only allows a three-day period, even if all parties agree. Limiting the extension to four days provides extra time, if needed, but still allows for certainty of contract.
SB 653 (BOYSKO-FAIRFAX) clarifies that all rent monies, including current rent, be deposited into an escrow account. This clarification ensures that rent monies will not be deposited into operating accounts and will provide additional protection for consumer funds.
SB 388 (MCPIKE-PRINCE WILLIAM) AND HB 594 (BOURNE-RICHMOND) clarifies that the 45-day time period for returning a security deposit to a tenant starts running from the date of the termination of the tenancy or the date the tenant vacates the unit, whichever occurs last.
HB 513 (BULOVA-FAIRFAX) clarifies that upon the death or disability of a real estate broker who was a sole proprietor or the only licensed broker in any business entity, the real estate board can approve someone to close out the business. Previously, the law did not include LLCs, which implied that if a broker was the only licensed broker in an LLC, the VREB could not appoint someone to conclude the business.
HB 756 (AIRD-PETERSBURG) clarifies that tenants who have not used their right of redemption within the past six months may be able to participate in the State’s pilot eviction diversion program.
HB 788 (BAGBY) provides that no deed recorded on or after July 1, 2020 shall contain a reference to any restrictive covenant purporting to restrict the ownership or use of the property. It also provides a form for a Certification of Release of Certain Prohibited Covenants to be recorded to remove any such restrictive covenant on deeds filed before that July 2020 date.
There was a push for fair housing and landlord tenant legislation this year. Realtor® lobbyists were actively involved to make sure that far-reaching bills were amended to be more fair to everyone. Additionally, efforts to recoup Northern Virginia transportation dollars diverted two years ago were successful.
Below is a summary of other real estate-related legislation. A more complete list may be found at NVAR. com/newlaws.
HB519 (BULOVA – FAIRFAX) provides that no notice of termination of tenancy given to a tenant receiving tenant-based rental assistance through the Housing Choice Voucher Program or federal, state or local programs shall be effective unless it contains on its first page, in type no smaller than used elsewhere in the notice, the statewide legal aid telephone number and website address.
HB 393 (WARD-HAMPTON) requires that there be a statement of tenant rights and responsibilities on the Department of Housing and Community Development website to be provided to the tenant and signed by parties to a rental agreement. A landlord may not file an action against the tenant unless the tenant has been provided the statement.
HB1420 (BOURNE – RICHMOND) stipulates that a landlord shall not charge a tenant for late payment of rent unless such charge is provided for in the written rental agreement, and that a late charge shall not exceed the lesser of 10% of the periodic rent or 10% of the remaining balance due and owed by the tenant. This Act has an emergency clause and takes effect immediately.
HB 99 (RASOUL-ROANOKE) allows an applicant for a lease to recover actual damages – including all amounts paid to the landlord as an application fee, application deposit, or reimbursement for any of the landlord’s out-of-pocket expenses that were charged to the applicant, along with attorney’s fees – if the landlord does not consider evidence of the applicant’s status as a victim of family abuse to mitigate any adverse effect of the otherwise qualified applicant’s low credit score.
HB 1333 (KEAM-FAIRFAX) provides that a landlord may permit a tenant to provide damage insurance coverage meeting certain criteria in lieu of the payment of a security deposit. It caps the total amount of any combination of security deposit and rental insurance coverage required by the landlord to twice the amount of the periodic rent payment and allows the tenant who opts for the damage insurance to, at any time with the consent of the landlord, opt to pay the full security deposit to the landlord in lieu of maintaining a damage insurance policy.
SB 905 (STANLEY-HENRY) permits a tenant, under certain circumstances, to use a third-party licensed contractor or a licensed pesticide business to remedy a condition that constitutes a material noncompliance by the landlord with the rental agreement or with provisions of the law, that if not promptly corrected will constitute a fire hazard or serious threat to the life, health, or safety of occupants of the premises. Unless the tenant has been reimbursed by the landlord, the tenant may deduct from rent the actual costs incurred, not to exceed the greater of one month’s rent or $1,500, after submitting to the landlord an itemized statement accompanied by receipts.
HB 174 (KRIZEK – FAIRFAX) adds marine clays to the buyer beware list of the Virginia Residential Property Disclosure Act.
HB 175 (KRIZEK-FAIRFAX) adds radon (whether the property is located in a locality classified as Zone 1 or Zone 2 by the U.S. Environmental Protection Agency’s Map of Radon Zone) to the Virginia Residential Property Disclosure Act.
HB 518 (BULOVA – FAIRFAX) adds obtaining a residential building energy analysis to the Virginia Residential Property Disclosure Act.
HB 1569 (CONVIRS-FOWLER) adds to the buyer beware list in the Virginia Residential Property Disclosure Act the condition and age of any dam on the owner’s property or under the ownership of a common interest community to which they belong.
HB 859 (CONVIRS-FOWLER) requires that the owner of residential property on which is located a privately owned storm water management facility serving one or more residential properties, to record the long- term maintenance and inspection requirements of such storm water management facility with the deed for the owner’s property. In addition, it requires an owner with actual knowledge of a privately owned storm water management facility located on the property to disclose this information to a purchaser of the property.
HB 6 (BOURNE – RICHMOND) adds discrimination on the basis of a person’s source of funds to the list of unlawful discriminatory housing practices. Realtors® amended the legislation to exempt owners, or the owner’s managing agent, if the owner does not own more than four rental dwelling units; or if they have no more than a 10% interest in more than four rental dwelling units in Virginia. If the source of funds is not approved within 15 days of the request for tenancy, the owner may deny the applicant. Source of income is defined as lawfully provided funds including any assistance, benefit or subsidy program, whether administered by a governmental or non-governmental entity.
SB 868 (EBBIN – ALEXANDRIA) adds discrimination on the basis of sexual orientation, gender identity and status as a veteran to the list of protected classes for fair housing, public accommodation, and employment.
HB 696 (ROEM – PRINCE WILLIAM) provides that localities may prohibit discrimination in housing, employment, public accommodation, credit and education on the basis of sexual orientation and gender identity.
HB 819 (SIMON-FAIRFAX) authorizes the State Corporation Commission to impose penalties, issue injunctions, and require restitution in cases where a person who does not hold a license from the appropriate licensing authority violates the law dealing with real estate settlement kickbacks and payments.
HB 1414 (FILLER-CORN) AND SB 890 (SASLAW) restores transportation monies diverted from Northern Virginia regional projects during the 2018 legislative session. This Administration, like the previous one, proposed a 10 cent increase in the grantor’s tax along with a couple other taxes, to help restore the money Northern Virginia had lost. NVAR lobbied to have the grantor’s tax reduced to 5 cents per $100 – the amount NVAR, the Dulles Association and the Prince William Association had agreed to in 2018 after successfully lobbying to have it reduced. The Regional Congestion Fee will go up 5 cents per $100 for the period of July 1, 2020 through April 30, 2021. At that time, the Regional Congestion Fee will go to 10 cents per $100 while the Northern Virginia Regional Transportation Fee (WMATA capital fee) will be reduced to 10 cents per $100. The net effect of the legislation is a 5 cent increase in the grantor’s tax to go to much needed transportation projects in the region.
Mary Beth Coya is the NVAR senior vice president of public & government affairs.
Josh Veverka is the NVAR government affairs director.