The Washington Report

In This Issue

National Flood Insurance Program
National Flood Insurance Program deadline is Sept. 30, 2023

Realtor Insider DC News and Events
Resources for a Government Shutdown

State-Legalized Cannabis Businesses
Senate Committee Approves SAFE Banking Act

National Flood Insurance Program

National Flood Insurance Program deadline is Sept. 30, 2023

Congress continues to negotiate to avoid a federal government shutdown.  NAR is working hard to ensure that the National Flood Insurance Program (NFIP) is reauthorized on time, as a lapse would delay the issuance of new flood insurance policies during hurricane season. Read NAR’s latest coalition letter to Congress urging an NFIP extension. NAR has also prepared the attached Frequently Asked Questions (FAQ) Sheet on what an NFIP lapse could mean for real estate closings and how imperative it is for consumers to renew their flood insurance before Sept. 30, 2023.

Austin Perez, aperez@nar.realtor, 202-383-1046

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Realtor Insider DC News and Events

Resources for a Government Shutdown

If Congress is unable to agree on the provisions of a Continuing Resolution (CR) to fund the federal government by September 30, 2023, the result will be a partial shutdown of some government operations. This partial shutdown will include some federal housing, mortgage, and other programs of interest to the real estate industry. Essential services, such as the post office, will continue to run. We want to make sure REALTORS® are aware of the potential impact on their work and can be as prepared as possible, so NAR’s Advocacy Group has prepared the a summary of the impact on selected agencies.   

While this is a very politically dynamic event, NAR staff will continue to monitor federal agencies and work with Congress, the Administration, and other groups to assess ongoing impacts to NAR members and their businesses. Updates will be made to the summary as agencies release new contingency plans and details about their operations.

Additionally, NAR has launched a targeted “Call For Action” for Federal Political Coordinators (FPCs) to specifically ask their Members of Congress to reauthorize the National Flood Insurance Program (NFIP) immediately and separately from the CR. Currently the NFIP’s reauthorization is tied to the budget, so if Congress fails to pass a CR by the 30th the program will lapse, resulting in huge disruption to real estate transactions in flood zones.

What a Government Shutdown Means for REALTORS®

Erin Stackley, estackley@nar.realtor, 202-383-1150

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State-Legalized Cannabis Businesses

Senate Committee Approves SAFE Banking Act

On Wednesday, September 27, S. 2860, the Secure and Fair Enforcement Regulation (SAFER) Banking Act passed the Senate Banking Committee by a bipartisan majority of 14-9.  This bipartisan legislation, cosponsored by Senators Merkley (D-OR) and Daines (R-MT), is an updated version of previous bills (known as the SAFE Banking Act) which creates a safe harbor for financial institutions in states that have legalized cannabis to accept funds derived from cannabis businesses.  Currently cannabis is legal in 47 states, 4 territories, and the District of Columbia; however, its categorization as a schedule one controlled substance means that banks are prohibited from accepting clients’ funds whose income is tied to its sale.  This includes real estate professionals – property managers may manage shopping centers that have cannabis businesses, a REALTOR® may sell a plot of land or a warehouse to a production facility, and so on.  This restriction creates difficult burdens to both cannabis businesses and the ancillary businesses that work with them, and results in cash-only businesses, which are targets for crime. 

The SAFER Banking Act does not just create a safe harbor for financial institutions; it also takes steps to address inequities in the system by extending that safe harbor to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).  Additionally, it provides that income from cannabis businesses (in states that have legalized it) should receive equal treat to other types of legal income for purposes of securing a federally-backed mortgage.  Finally, it speaks to the issue of fraud and criminal activity by including monitoring and reporting requirements, which will also assist in tracking this fast-growing business sector. 

Similar bills have been introduced in Congress for many years, and NAR has supported them since its policy on the issue was approved in 2019.  This is the first time this bill has passed the Committee in the Senate.  Its next steps are a Senate floor vote, and then being sent to the House for consideration there.  NAR will continue to support this legislation and encourage its passage in this Congress.   

Read NAR's Letter of Support for the SAFER Banking Act

Erin Stackley, estackley@nar.realtor, 202-383-1150

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