National Flood Insurance Program Currently Set to Expire on March 22nd, NAR Submits Comments on Veterans Affairs' Minimum Property Requirements, Village of Kalkaska Considering a Short-Term Rental Ordinance
Back from a one-week hiatus and things are heating up at a national level with the National Association of REALTORS (NAR) advocating to secure a long-term reauthorization of the National Flood Insurance Program. NAR also submitted comments on proposed Veterans Affairs’ (VA) minimum property requirements advocating for similar minimum standards for VA loans and buyers using financing from Fannie Mae or Freddie Mac. Locally, the Village of Kalkaska Housing Development Committee is considering a short-term rental ordinance that would limit the zoning districts where short-term rentals can operate as well as cap the total number eligible to operate.
1. National Flood Insurance Program Currently Set to Expire on March 22, 2024
As Congress continues to negotiate to avoid a government shutdown, NAR is advocating to secure a long-term reauthorization of the National Flood Insurance Program (NFIP). NAR has prepared a Frequently Asked Questions (FAQ) Sheet on what an NFIP lapse could mean for real estate closings.
- NAR's FAQ Sheet provides the latest NFIP status update and what a lapse means for closings. The FAQ also compiles most of the federal agency guidance documents to address even the most technical NFIP lapse questions our members or their clients could have.
- NAR’s Flood Insurance Page provides the latest news, advocacy materials (issue summary, letters, etc.), as well as numerous other resources, including NAR’s research on the possible home-sales impact and NFIP’s importance to each state, NAR's legal guidance, as well as information on how to obtain private market flood insurance.
2. NAR Submits Comments on Veterans Affairs' Minimum Property Requirements
NAR submitted comments in response to an advanced notice of proposed rulemaking (ANPR) from the U.S. Department of Veterans Affairs (VA). The ANPR dealt with the VA’s minimum property requirements (MPRs).
The MPRs are intended to ensure that VA borrowers have safe and secure housing. However, REALTORS® have observed that they can be/are perceived by many as being onerous, unnecessary, and pushing costs onto sellers. As a result, many sellers avoid buyers using VA financing putting these buyers at a disadvantage relative to buyers using financing from Fannie Mae or Freddie Mac.
NAR recommended adopting a framework of minimum standards that are similar to those of Fannie Mae and Freddie Mac. This change would eliminate the misperception issue and the competitive disadvantage it creates. It would also help create a market-wide standard that would eliminate confusion.
3. Village of Kalkaska Considering a Short-Term Rental Ordinance
At the February 15th Village of Kalkaska Council Meeting a report from the Village of Kalkaska Housing Development Committee presented by Trustee Michelle (Mickey) Miller stated that Housing Development Committee is discussing a proposed short-term rental ordinance, to specify where to allow short-term rentals and how many to permit. Trustee Miller stated the consensus was to allow short-term rentals only in the Downtown Commercial and Regional Commercial zones. They would also like to initially limit permits to a total of five and revisit the limit in a year if the ordinance is working well. The Housing Development Committee is still working on licensing and violation fees, as well as other terms and conditions.
The Housing Development Committee is hoping to have a recommendation before the March Village of Kalkaska Council Meeting (scheduled for March 11th starting at 6 pm at the Village of Kalkaska Office, 200 Hyde Street, Kalkaska) for the Village of Kalkaska Council’s consideration.
