President Obama signed H.R. 22, the Surface Transportation Reauthorization and Reform Act of 2015, which does NOT include an extension of the higher guarantee-fees set to expire in 2021. The bill funds several highway and transit-related projects, with monies coming from a variety of sources. While the Senate version of the long-term transportation bill included this “mortgage tax” to pay for transportation infrastructure, the final version does not. This is a HUGE win for REALTORS® and their clients.
In November, the House of Representatives approved a long-term-transportation bill with an amendment to exclude the tax. C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® vigorously opposed the “add-on” fee for all new conforming mortgages in order to pay for transportation infrastructure. This “g-fee,” which was a disguised tax on home buyers, would have cost average California home buyers more than $8,100 over the life of their mortgage on a new home purchase or refinance.
C.A.R. thanks its members, local Association Executives and local Association Government Affairs Directors for their support and efforts in successfully beating back this tax and helping to meet its goal of exceeding a 20 percent response rate to the Call-for-Action. Nearly 31,000 California REALTORS® called or emailed Congress to oppose this proposal.