As Idaho’s economy continued to strengthen, education was one of the top priorities of the 2016 Idaho Legislature and the Governor’s Office. Funding for education was increased 7.4% for K-12 and 8% for colleges and universities. Although there is more work to be done, this was a tremendous increase after the cuts that took place during the recession.
Issues pertaining to real estate and housing were also part of the 2016 session. Several new laws were passed affecting the Homeowner’s Exemption, Homeowner’s Associations and Urban Renewal Agencies.
HB431: Homeowner’s Exemption
In March, BRR shared about the passage of HB431, which set the Homeowner’s Exemption amount at $100,000 or up to 50% of the home’s value, rather than tying the exemption to the Federal Housing Price Index. Over the past 10 years, the Idaho Homeowner’s Exemption has been as high as $104,471 and as low as $81,000, due to fluctuations in the Index. This created volatility and instability in our tax policy. When home prices were falling and people were struggling to make payments, they saw their property taxes go up. The set exemption amount of $100,000, as outlined in HB431, aims to stabilize the Exemption, create a predictable tax base and provide certainty to homeowners and others who own real property in all categories.
HB511: “Right to Rent”
This new law protects homeowners’ “right to rent” their property. Homeowner’s Associations must continue to allow homeowners to rent their property if it was allowed in the CC&R’s when the property was purchased. This prevents HOAs from changing the rules after the purchase of a home, while still allowing for enforcement of any issues associated with the rental including noise, parking or other concerns. HOAs are allowed to prohibit rentals, but only for homes purchased after the rule goes into effect. This law stemmed from a case in Valley County where a homeowner rented their vacation home to help cover the mortgage. The HOA amended their rules and subsequently fined the home owner over $13,000 for violating the new CC&Rs. HB511 protects private property rights, while still allowing HOAs to protect the character of their neighborhood and home values.
SB1317: HOA Attorney’s Fees
Addressing the issue of attorneys sending demand letters to HOA residents on behalf of the Board with a bill for services, SB1317 states attorney fees for HOAs can only be assessed through a judicial action by a court of competent jurisdiction. In 2015 the law was changed to stop exorbitant fines. Some law firms simply started charging attorney’s fees instead of fines. This new law protects homeowners from demand letters billing for services.
HB606aa: Urban Renewal
Urban Renewal Districts are possibly one of the most important tools for economic development we have in Idaho. During this session legislation was passed to modernize Urban Renewal Districts. The legislation: allows local governments to decide on whether Board members should be elected; requires a vote if urban renewal dollars are used to finance more than 50% of a public building; addresses concerns about resetting the tax base if an agency plan is amended; and also creates a repository at the Idaho State Tax Commission of all Urban Renewal plans. BRR works with Urban Renewal Districts on a regular basis to improve the quality of our communities. Protecting the urban renewal district tool is vital to our region.
Boise Regional REALTORS®, as well as the state Association and RPAC, continue to work on behalf of homeowners and REALTORS® by focusing on issues important to home ownership and the real estate industry. The Idaho Primary Election is Tuesday, May 17th. Learn which candidates received the endorsement of Boise Regional REALTORS®, Idaho REALTORS® and National Association of REALTORS®.
Do you have questions or want to chat about the session or the upcoming election? Contact Miguel Legarreta, Director of Public Policy at Boise Regional REALTORS®.
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