CALIFORNIA ASSOCIATION OF REALTORS

INS · Insurance

H.R. 1105 - the Disaster Resiliency and Coverage Act; The bill would incentivize and facilitate property mitigation and hardening efforts through tax incentives and grants to combat the rising costs of insurance. H.R.7128 & S. 4395 - TRIA Program Reauthorization Act of 2026; The legislation would reauthorize the Terrorism Risk Insurance program for seven years. C.A.R. discussed increased costs and difficulty with obtaining homeowners insurance in California. C.A.R. discussed extending and ensuring the availability of flood insurance policies offered through the National Flood Insurance Program.

Literal federal measure citations: H.R. 1105, H.R.7128, S. 4395

TAX · Taxation/Internal Revenue Code

H.R. 1340 - More Homes on the Market Act: Doubling and indexing for inflation the exclusion to capital gains on the sale of a primary residence. H.R. 2410 - Revitalizing Downtowns and Main Streets Act: Facilitates the conversion of vacant and underutilized commercial buildings into residential and mixed-use developments. H.R. 3526 - Uplifting First-Time Homebuyers Act: Increases the amount first-time buyers can withdraw from their IRAs without penalty from $10,000 to $50,000 to help with down payments. Efforts by Congress to pass a reconciliation package and provisions that would impact real estate. Issues including the mortgage interest deduction, and the cap on the state and local tax deduction (SALT). Discussed with Congress bills from previous sessions of Congress that would create a tax incentive to offset the cost of converting commercial real estate space to residential units.

Literal federal measure citations: H.R. 1340, H.R. 2410, H.R. 3526

HOU · Housing

H.R. 2840/S. 1299 - Housing Supply and Affordability Act: Establishes a task force to develop ways states and cities can reduce regulatory barriers and boost housing production across the country. H.R. 3696 - Fair and Equal housing Act: Codifies equal housing protections for LGBTQ+ Americans by adding sexual orientation and gender identity to the Fair Housing Act. H.R. 4023 - American Dream for All Act: Would create a downpayment-assistance shared-equity program to help first-time homebuyers. H.R. 6644 - 21st Century ROAD to Housing Act - a comprehensive housing bill that would update and modernize existing affordable housing programs, incentivize and encourage more housing construction, and encourage best practices for zoning and land use by local governments. C.A.R. advocated to Congress fully fund both the Fair Housing Initiatives Program (FHIP) and Fair Housing Assistance Program (FHAP) for both 2026 and 2027. C.A.R. commented on FHFA Proposed Rule: Duty to Serve Underserved Markets (RIN 2590-AB64). C.A.R. asked to ensure transparency and protect enforcement obligations. C.A.R. discussed the future of Fannie Mae and Freddie Mac, and potential efforts to take them out of conservatorship and the conforming loan limit. C.A.R. discussed recent changes to California condo balcony inspection law and its impact on condo qualifications for conforming loans. C.A.R. discussed the FHA loan assumption process and how slow loan servicers are processing them. C.A.R. discussed the FHA life of loan premium and how it should be reduced over time to reflect actual risk. C.A.R. the FHA rule prohibiting non-permanent residents who are in the U.S. legally from qualifying for FHA mortgages.

Literal federal measure citations: H.R. 2840, S. 1299, H.R. 3696, H.R. 4023, H.R. 6644

LBR · Labor Issues/Antitrust/Workplace

H.R. 3495 - the Direct Seller and Real Estate Agent Harmonization Act: Would align the Fair Labor Standards Act with the U.S. tax code to ensure real estate agents can choose to do business as employees or as independent contractors.

Literal federal measure citations: H.R. 3495