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REALTORS® Political Action Committee (RPAC)

YOUR BEST INVESTMENT IN REAL ESTATE

CELEBRATING RPAC’s 50TH ANNIVERSARY
RPAC is celebrating its 50th anniversary in 2019! Since 1969, RPAC has been working to advance the American Dream of property ownership. In its first year, the Real Estate Political Education Committee (REPEC) had 300 investors with contributions totaling $28,000. Since then, the REALTORS® Political Action Committee (RPAC) has grown to more than 400,000 participants investing more than $9 million to RPAC at the federal level and $36 million at all three levels of the association. With the continued support of REALTORS® like you, RPAC is looking forward to what we’ll accomplish in the next 50 years — for our businesses, our clients, and our communities. For more information and resources to celebrate this milestone visit realtorparty.realtor/rpac50.


HOW RPAC SUPPORTED YOUR BUSINESS IN 2018 - RESIDENTIAL REAL ESTATE


TAX RELIEF FOR REALTORS®
Specifically, as Americans were beginning preparations for the 2018 tax filing season, many in our industry were unsure how they would be impacted by the new 20 percent deduction on qualified business income. Since the details surrounding the ambiguous language of the law emerged in the summer 2018, NAR waged a comprehensive advocacy campaign in Washington, D.C. The result of those efforts were guidelines that enabled real estate professionals to benefit from the Section 199A 20 percent pass-through deduction. This puts more money into REALTOR® pockets to allow expanded operations and provide improved services to consumers and potential homebuyers.

FLOOD
Flooding is the most common disaster in the U.S., one that affects Americans in communities both coastal and inland every year. However, extreme flooding events seem to be increasing in frequency, and have only exacerbated the financial problems facing the program. NAR pushed the Federal Emergency Management Association to continue issuing and renewing policies during the partial shutdown of the federal government, despite an announcement that it would not operate as expected just a few days earlier.

Recognizing the protections provided by this program will vanish if it remains on its current path, NAR continues to work with Congress to secure responsible, long-term reform to the program. 

HOUSING FINANCE REFORM
As Congress and the administration continue to debate a framework for comprehensive housing finance reform, the NAR continues to prioritize proposals that provide liquidity and secure a deep and affordable market for creditworthy Americans, all while maintaining an explicit government guarantee. NAR’s 1.3 million members ultimately believe that reforms to the system are necessary to ensure a safe and vibrant housing market. As conversations and evaluations continue, we maintain in constant communication with all relevant agencies to secure reforms that protect consumers and the American Dream of homeownership.

 

HOW RPAC SUPPORTED YOUR BUSINESS IN 2018 - COMMERCIAL REAL ESTATE

TAX RELIEF FOR REALTORS®
Specifically, as Americans were beginning preparations for the 2018 tax filing season, many in our industry were unsure how they would be impacted by the new 20 percent deduction on qualified business income. Since the details surrounding the ambiguous language of the law emerged in the summer 2018, NAR waged a comprehensive advocacy campaign in Washington, D.C. The result of those efforts were guidelines that enabled real estate professionals to benefit from the Section 199A 20 percent pass-through deduction. This puts more money into REALTOR® pockets to allow expanded operations and provide improved services to consumers and potential homebuyers.

IMPROVING HVCRE LEGISLATION TO ENCOURAGE INVESTMENT
Recent updates to voluntary international regulator capital standards for banks (Basel III) created a new risk-based capital category, known as the High Volatility Commercial Real Estate Exposures (HVCRE). This threatened the commercial real estate industry by slowing the flow of capital to investors, raising the risk-weight for an ADC loan, and making commercial loans less attractive to lenders. NAR worked with leaders in Congress to craft legislation that clarified and amended HVCRE rules, and a bill that included positive reforms for the real estate industry was signed into law in May 2018. The new law protects our industry against additional credit challenges while enhancing the flow of capital to commercial and residential entities. NAR also helped ensure HVCRE standards did not make loans for commercial acquisition, development, and construction unnecessarily complex and costly. 

SECURING 1031 PROTECTIONS FOR REAL PROPERTY, TAXPAYERS
Shortly following passage of tax reform in Congress, NAR fought to protect the 1031 like-kind exchange for real property. This preservation of like-kind exchanges for real estate is a major victory for industry stakeholders who have publicly supported this provision for several years. Section 1031 encourages a broad spectrum of high-impact economic transactions, generating taxable income and helping to create jobs across the real estate industry.

HOW RPAC SUPPORTED YOUR BUSINESS IN 2018 SHARING QUALIFIED OPPORTUNITY ZONE REGULATIONS
Congress created the Qualified Opportunity Zone program in its 2017 tax reform law. The program was designed to encourage economic growth in traditionally underserved communities by offering tax benefits to investors operating in these areas and offers potential benefits for millions of Americans. NAR is currently working with the IRS and Treasury Department to craft and advance policies that will allow for the effective and efficient implementation of Qualified Opportunity Zone regulations.