MBA State Relations Committee Update State Highlights
Advocacy News and Information From the Latest Issue of the MBA State Relations Committee Update
MBA, the California MBA (CMBA), and the California Apartment Association (CAA) hosted a free webinar in support of the “No for Me on Prop 33” campaign that urges members to vote against California’s Proposition 33 (Prop 33) rent control initiative. A recording of the webinar is available here (passcode rb4KW8&X). California voters have rejected rent control at the ballot twice before and hopefully will do so again. Prop 33 would repeal the state’s Costa-Hawkins Rental Housing Act and would allow local governments to set residential rental rates when a unit becomes vacant – actions which will harm the multifamily real estate market and housing affordability. Repealing Costa-Hawkins would create a patchwork of state and local price control laws that would undermine the supply of new housing and make multifamily lending more costly. MBA will continue to work with the CMBA, CAA, and other allied groups to oppose Prop 33 and will keep members updated on any new developments.
In response to MBA’s recent comments, the Illinois Department of Financial and Professional Regulation (IDFPR) issued its second notice of proposed rules to revise the fee structure for Illinois Community Reinvestment (ILCRA) exams of independent mortgage banks (IMBs) that are scheduled to commence in 2025. In August, IDFFPR proposed replacing an ILCRA examination fee with an annual fee on each Illinois-licensed IMB based on their total loan volume regardless of whether an actual exam is performed. This annual assessment would cost roughly $22,000 a year for the largest IMBs. MBA pointed out that it was highly inappropriate to base this fee on total national loan volume and that IDFPR must narrow that scope to only loans on Illinois properties. The IDFPR has agreed and issued this important change, which will save MBA members thousands of dollars in annual fees. However, IDFPR has not delayed its proposed payment date of November 1, 2024, for 2025 fees. This payment date is now complicated by the fact that the legislative committee responsible for approving the proposed fee structure – the Illinois Joint Committee on Regulation (JCAR) – will not convene until later in November. MBA will continue to work with its member companies and the Illinois MBA to advocate for industry interests ahead of the November 12th JCAR meeting.