2018 Legislative Session (Week 4)
LOUISIANA REALTORS • April 9, 2018
UPDATES FROM BILLS DISCUSSED IN WEEK 3
HOUSE BILL NO. 659, REPRESENTATIVE KENNY HAVARD, LIMITATIONS ON NON-CONSENSUAL TOWING
This bill would have put additional requirements on property owners who have vehicles towed off their lots for parking violations. Louisiana REALTORS® raised several concerns and the bill’s author was agreeable to preserving current law and property rights by amending the bill to address those concerns.
However, the bill was defeated after much opposition from the towing industry.
HOUSE BILL NO. 617, REPRESENTATIVE STEPHANIE HILFERTY, RESIDENTIAL PROPERTY DISCLOSURE
Louisiana REALTORS® had this legislation filed to clarify existing law following the Valobra v. Nelson case and subsequent changes to the residential property form.
The bill passed the House with unanimously and now heads to the Senate for further consideration.
SENATE BILL NO. 462, SENATOR DANNY MARTINY – INCLUSIONARY ZONING
Currently, Louisiana allows municipalities and parishes to pass inclusionary zoning ordinances to promote the development of affordable housing. Inclusionary zoning requires housing developers to sell or rent a proportion of their units below market rate, regardless of the economics of a project or whether the developer receives just compensation. Senate Bill 462 would instead allow municipalities and parishes to offer VOLUNTARY economic incentive policies to promote the development of affordable housing.
Louisiana REALTORS® will be resending a call to action next week to members who have not responded to the call to action on this important bill.
ADDITIONAL BILLS
HOUSE BILL NO. 386, REPRESENTATIVE KATRINA JACKSON, CHANGES TO SECURITY DEPOSITS FOR RESIDENTIAL LEASES
This bill proposed a law change on security deposits for residential leases and potentially placed additional burdens on residential lessors. Louisiana REALTORS® was opposed to certain components of this bill. The bill was defeated in the House Commerce Committee after much debate. There is a similar Senate bill that we will continue to monitor.
HOUSE BILL NO. 653, REPRESENTATIVE SIMON, INCLUDES ELEVATORS AND ESCALATORS AS LIFE SAFETY EQUIPMENT
This bill would require property owners to register elevators and escalators in their commercial buildings with the State Fire Marshal and to allow the state fire marshal to inspect these devices.
REALTOR® members expressed concerns that there are currently parishes and municipalities that already inspect these devices and the proposed law would have property owners in these areas subject to two inspections. An amendment was placed on the bill to exempt parishes and municipalities that are already inspecting these devices therefore only requiring property owners in these parishes and municipalities to have their elevators and escalators inspected by one entity.
REGULATION OF BOARDS AND COMMISSIONS
Several bills are going through the legislature to modify how boards and commissions operate. Some of these bills would have an impact on real estate licensees and LR will continue to work with the authors of these bills and will update members on changes or impacts as session progresses.
ACCESS THE BILL TRACKER
Homeownership Is on Louisiana's November Ballot
After months of gathering recipes from across our Louisiana REALTORS® family, the cookbook is ready! This 200+ page collection is filled with Louisiana flavor, REALTOR® heart and recipes contributed by our members. We launched sales of the cookbook at the Fall Governance Meetings. You can now purchase your copy for $30 directly from the printer and shipped to you! Additionally, we will have copies available at the RRF booth at NXT . After NXT, we will carry a limited stock at the LR office for you to purchase through the LR Merch Shop and pick-up from the office or at an LR event, as stock is available. Even better, $15 from every cookbook sold will be donated to the REALTORS® Relief Foundation (RRF) to help provide housing-related assistance to REALTORS® and their families following disasters. Pick up a copy for yourself, grab one as a gift and enjoy a taste of Louisiana while supporting a great cause!
A major change to residential appraisal reporting is approaching, but a recently announced temporary policy exception is creating some confusion about what happens on November 2. Here is what REALTORS® need to know. Beginning November 2, 2026, Fannie Mae and Freddie Mac will require the new Uniform Appraisal Dataset (UAD) 3.6 for new appraisal reports initially submitted to the Uniform Collateral Data Portal (UCDP), unless the lender has received a temporary policy exception. The November 2 implementation date has not been postponed. What is the UAD 3.6 Appraisal Report? UAD 3.6 replaces the familiar legacy appraisal forms (used for the last 25 years) with a new, more data-driven appraisal report that collects much more detailed property information. For REALTORS® and consumers, the transition could mean a more detailed property inspection, additional questions about the property and transaction, and potentially longer appraisal and review times as appraisers, lenders, appraisal management companies, and other industry participants adjust to the new system. What changed? Fannie Mae and Freddie Mac recently announced a temporary policy exception for eligible lenders that need additional time to complete their transition to UAD 3.6. Lenders receiving the exception may continue submitting appraisals using the current legacy UAD 2.6 format through May 19, 2027 . Beginning May 20, 2027 , new appraisal submissions to Fannie Mae and Freddie Mac must use UAD 3.6. What does this mean for REALTORS®? For several months, REALTORS® may encounter both the current appraisal format and the new UAD 3.6 appraisal report. The appraisal format is determined by the lender's assignment requirements. REALTORS® and consumers do not need to determine which format should be used. It is also important to understand that an appraiser completing a legacy-format appraisal during this period should not automatically be assumed to be unprepared for UAD 3.6. An appraiser who is fully UAD 3.6 ready may still be instructed by a lender to complete an assignment using the legacy format. How can REALTORS® help? Good communication and accurate property information will become even more important. REALTORS® can help the appraisal process by providing accurate and specific information concerning: Recent renovations and improvements Property features and amenities Sales concessions and financing terms Known property conditions or unique characteristics Relevant information about the transaction Buyers should also be encouraged to discuss appraisal requirements and anticipated timelines with their lender early in the transaction. What about FHA, VA and USDA? The November 2 requirement discussed above applies to Fannie Mae and Freddie Mac conventional lending. FHA, VA and USDA have their own appraisal policies and implementation schedules. Their transition to UAD 3.6 should not be assumed to follow the same November 2 timeline unless announced by the respective agency. The Bottom Line November 2 remains an important date for UAD 3.6. The temporary exception does not cancel or postpone the transition. Instead, it allows eligible lenders additional time to complete their transition. As a result, REALTORS® should expect a period when both legacy and UAD 3.6 appraisal reports are being used. Louisiana REALTORS® will continue monitoring the transition and providing members with updates as additional guidance becomes available. Louisiana REALTORS® is also planning a follow-up webinar to discuss the latest UAD 3.6 developments, what REALTORS® are seeing in transactions, and what these changes mean for agents and their clients.
