Hostile Amendments to AOBA Property Tax Bills Thwarted

On April 1, the deadline for Governor Tim Kaine to sign, amend or veto bills passed in the 2009 General Assembly session, AOBA received good news and bad news with regard to key parts of its legislative agenda.  Several bills supported by the commercial and multifamily real estate industries were signed by the Governor and will go into effect July 1, including legislation: eliminating the authority for local governments to require a second signature before trespassing vehicles can be removed from private property; expanding the list of properties for which government-imposed revenue restrictions must be taken into account, for tax assessment purposes; and allowing housing providers to recover damages for holdover tenancies. Read more

General Assembly Bucks Governor, Rejects Unemployment Stimulus Funding

Another issue that received significant attention during the April 8 veto session was Governor Kaine’s proposal to accept federal stimulus funding, in the amount of $187.5 million over two years, to fill the coffers of the state unemployment insurance program. Going into the veto session, Virginia was already eligible to take advantage of approximately one-third of that funding – about $62.5 million. Read more

Virginia 2009 Statewide Building Code Cycle Commences

The Virginia Board of Housing and Community Development has initiated its 2009 code change cycle. The Uniform Statewide Building Code (USBC) is based heavily on the International Code Council’s I-Codes. A new code change cycle in Virginia is initiated when a new nationally-recognized model building and fire code (i.e. the ICC codes) becomes available. Read more

Virginia Housing Commission Kicks Off for the 2009-2010 Interim

The Virginia Housing Commission is also organizing its work for the interim period between the 2009 and 2010 Virginia General Assembly sessions.  Several pieces of legislation of interest to AOBA and its members have been deferred to the Commission for further study in this period.  The Commission may also take up other issues and make recommendations to the General Assembly for legislation to be drafted for the 2010 session. Read more

Moderated Alexandria Green Buildings Policy Advances

A staff-driven green buildings policy for the City of Alexandria received consideration last week from the city’s Planning Commission.  AOBA, serving on an advisory group to city staff, has vociferously advocated that the city retain flexibility in the development and implementation of new environmental policies. Read more

Dominion Virginia Power Files for Rate Increase

As anticipated, Dominion Virginia Power has filed with the State Corporation Commission (SCC) for a base rate increase – the first such filing since controversial “re-regulation” legislation was passed in 2007. In public statements, the utility has indicated that the rate change, if approved, would increase the average residential customer’s bills by about 7 percent and commercial bills by about 3.5 to 5 percent. Read more

AOBA Teams with Coalition Opposing Card-Check Legislation

AOBA has joined with more than 50 other statewide business organizations to oppose the so-called “Employee Free Choice Act,” which proposes to change how unions are allowed to organize workers. Labor unions have been pushing the federal legislation to bolster union membership and strengthen their hand in negotiations with businesses. Read more

Fairfax County to Host Conference on Transforming Economy

On June 18, 2009, Fairfax County will present a thought-provoking conference addressing “The New Urban Economic Model: The Transformation of Fairfax County.”  AOBA members with an interest in the County may be interested in attending and participating in the high-level discussion regarding its future development. Read more

Moran Leads Democratic Field in First Gubernatorial Poll

With the 2009 race for Virginia Governor already well underway, the first poll of the election season, conducted by the Daily Kos, has surfaced.  The poll gives an early indication that former Alexandria Delegate Brian Moran (D) is outpacing his peers in the race for the Democratic nomination:  24 percent of likely primary voters indicated that they would support Moran over former DNC Chairman Terry McAuliffe (19%) and State Senator Creigh Deeds (16%). Read more

Hostile Amendments to AOBA Property Tax Bills Thwarted

On April 1, the deadline for Governor Tim Kaine to sign, amend or veto bills passed in the 2009 General Assembly session, AOBA received good news and bad news with regard to key parts of its legislative agenda.  Several bills supported by the commercial and multifamily real estate industries were signed by the Governor and will go into effect July 1, including legislation: eliminating the authority for local governments to require a second signature before trespassing vehicles can be removed from private property; expanding the list of properties for which government-imposed revenue restrictions must be taken into account, for tax assessment purposes; and allowing housing providers to recover damages for holdover tenancies.

Of particular note, though, were the Governor’s actions on two of AOBA’s priority bills.  H.B. 2479 was the AOBA-championed bill reducing, from 25 cents to 12.5 cents per $100 of assessed value, the maximum commercial real estate tax surcharge local governments in Northern Virginia may assess for transportation purposes.  During Session, the two local governments that so far have adopted surcharges (Fairfax County at 11 cents and Arlington County at 12.5 cents), insisted they had no intention of raising them, but nonetheless mounted a furious lobbying effort-- first to stop our bill, and then, when that got nowhere, to amend it  to allow a maximum rate of  16.5 cents.  The good news on April 1 was that the Governor signed our bill with only minor, technical amendments.

Which means, mission accomplished: commercial property owners and their tenants are no longer exposed to the risk that revenue-starved localities might burden their properties with a property tax surcharge of up to 25 cents per $100— nowhere can it go any higher than the 12.5 cents being assessed by Arlington.

Then, there was H.B. 2480, an AOBA-requested bill to reaffirm that the funds  Northern Virginia localities raise using the add-on commercial property tax authority are to be used fundamentally for “new” transportation infrastructure projects.  The need for such reaffirmation was made clear last year, when Fairfax County proposed adopting the tax surcharge and then using the funds, not for new projects, but simply as a replacement funding source for the County’s ongoing transportation administration.

Once again, there was local government opposition to our bill. Throughout the 2009 session, AOBA worked closely with local government representatives to address their concerns, agreeing to amend the bill significantly to accommodate their various requests.  We drew a line, however, when they sought language allowing the tax to be used for “transportation safety improvements”—a phrase so nebulous and broad that it could have the commercial property tax surcharge paying for filling potholes or repairing trip hazards on sidewalks.

But H.B. 2480 was subsequently adopted by overwhelming margins in both the House of Delegates and the Senate, without the Fairfax amendment, so the County took its case to the Governor;  AOBA, in turn, sought and received assurances from the Governor’s key staff that the Executive branch would not pursue amendments to expand the allowable uses for  the tax funds. And, consistent with these assurances, H.B. 2480 was signed by the Governor—without amendment.

Another AOBA win for members and end of story, right?  Not quite.  The last step in the legislative process is that the General Assembly must convene for a one-day session to consider legislation amended or vetoed by the Governor.  Shortly before the General Assembly did so on April 8, AOBA learned that the Governor had, inexplicably, inserted the “transportation safety improvements” language for Northern Virginia into two, completely different transportation bills related to the Hampton Roads area.

This meant that AOBA had to quickly swing into gear and persuade legislators in both Chambers to firmly oppose the Governor’s amendment, to ensure that any additional, locally imposed tax burden on Northern Virginia businesses will be used to have a true impact on the region’s crushing transportation problems.

The House of Delegates took up the measure first, and voted to strike the amendments by a vote of 76-23.  However, significantly more debate ensued on the Senate side.  There, Democrats who had previously overwhelmingly supported AOBA’s position by adopting H.B. 2480 without the amendment Fairfax wanted, this time switched their votes to support their party’s Governor and passed the amended bill 20-18.  A short while later, however, a senator who had voted for the bill was persuaded to switch; when the bill was brought back up on reconsideration, the Senate deadlocked at a 19-19 vote—allowing Republican Lieutenant Governor Bill Bolling to step in and cast the tiebreaking vote to  strike the Governor’s amendments.

The legislation, in its original, unamended form is now back on the Governor’s desk, and he has to either veto it  or sign it into law.  He is expected to sign it and, when he does, then it will constitute a significant victory for AOBA members.  Stay tuned.

General Assembly Bucks Governor, Rejects Unemployment Stimulus Funding

Another issue that received significant attention during the April 8 veto session was Governor Kaine’s proposal to accept federal stimulus funding, in the amount of $187.5 million over two years, to fill the coffers of the state unemployment insurance program.  Going into the veto session, Virginia was already eligible to take advantage of approximately one-third of that funding – about $62.5 million.  However, in order to accept the remaining $125 million, the Commonwealth would have to make permanent expansions in the eligibility criteria for unemployment benefits.  Business taxes, in turn, would need to be raised to cover these expanded benefits after the one-time federal funding dries up in two years.  Voting almost entirely along party lines, the Republican-controlled House of Delegates rejected the Governor’s proposal, turning down the bulk of the stimulus funding.  The Governor was visibly angry with House members who voted against the measure, and berated them publicly for their position.  In the present economic climate, this vote is certain to be placed in the forefront of the 2009 election cycle, where a Republican Party in turmoil hopes to maintain its tenuous control of the House of Delegates.

Virginia 2009 Statewide Building Code Cycle Commences

The Virginia Board of Housing and Community Development has initiated its 2009 code change cycle.  The Uniform Statewide Building Code (USBC) is based heavily on the International Code Council’s I-Codes.  A new code change cycle in Virginia is initiated when a new nationally-recognized model building and fire code (i.e. the ICC codes) becomes available.  The Board will consider whether the changes adopted by the ICC in its most recent edition of  the model codes should also be adopted in Virginia’s USBC, as well as other code change proposals brought forward by stakeholders.  To receive feedback from affected stakeholders, the Department of Housing and Community Development has created four work groups tasked with establishing consensus around various code change proposals.  AOBA is represented by staff on each of the work groups to address energy codes, administrative and technical changes, fire prevention, and residential codes.  AOBA members also interested in participating should contact Shaun Pharr or Brian Gordon at (202) 296-3390.

Virginia Housing Commission Kicks Off for the 2009-2010 Interim

The Virginia Housing Commission is also organizing its work for the interim period between the 2009 and 2010 Virginia General Assembly sessions.  Several pieces of legislation of interest to AOBA and its members have been deferred to the Commission for further study in this period.  The Commission may also take up other issues and make recommendations to the General Assembly for legislation to be drafted for the 2010 session.  Among the issues anticipated for consideration by the Commission are proposals to require mandatory retrofit of automatic sprinkler systems in all high-rise residential properties, procedures for the termination of a lease by military personnel, and housing discrimination.  AOBA will be participating in all of the Commission’s discussions and has again secured membership on the work groups it established to address housing affordability, general real estate law and housing subsidies, housing and environmental standards, and mortgage finance regulatory issues.

Moderated Alexandria Green Buildings Policy Advances

A staff-driven green buildings policy for the City of Alexandria received consideration last week from the city’s Planning Commission.  AOBA, serving on an advisory group to city staff, has vociferously advocated that the city retain flexibility in the development and implementation of new environmental policies.  While supportive of efforts to expand green building in the jurisdiction, AOBA has argued that such a policy cannot be effective if a hard-line, mandatory approach is taken.  Flexibility in standards should be coupled with public outreach and education efforts, as well as incentives to developers and property owners. 

AOBA has expressed concerns that the staff-supported policy language was too rigid in its application of standards to achieve stated priorities, and about its failure to recognize the resulting imposition of additional costs on private sector partners.  In particular, city staff sought to make the baseline requirement for nonresidential development compliance with LEED Silver and ENERGY STAR or equivalent standards--excessively exacting, absent any concessions from the city to help property owners reach those goals.  We, in turn, have stressed that green building and sustainable development are desirable but, they do not come without additional cost, and increasing costs of development can also discourage new construction and redevelopment. 

Agreeing with AOBA’s perspective, the Planning Commission has recommended that the City Council instead establish a flexible policy for encouraging LEED certification in non-residential buildings, while allowing for compliance with the  equivalent ANSI green standard for multifamily properties (as advanced by the National Apartment Association).  Though incentives have not yet been established, the city has committed to addressing incentives for builders developing green projects in the city.

To view the draft policy, visit http://alexandriava.gov/uploadedFiles/planning/info/GreenBuildingReportrevFeb%2052009.pdf.

Dominion Virginia Power Files for Rate Increase

As anticipated, Dominion Virginia Power has filed with the State Corporation Commission (SCC) for a base rate increase – the first such filing since controversial “re-regulation” legislation was passed in 2007.  In public statements, the utility has indicated that the rate change, if approved, would increase the average residential customer’s bills by about 7 percent and commercial bills by about 3.5 to 5 percent.  Consumers will also see previously approved increases in fuel charges that have been deferred since 2007.  AOBA General Counsel Frann Francis and expert consultant economist Bruce Oliver are presently reviewing the documents submitted on behalf of the company.  AOBA has been critical of the procedure for utility rate filings, which effectively ties the hands of the SCC and hinders its ability to comprehensively evaluate the company’s cost recovery structures.

AOBA Teams with Coalition Opposing Card-Check Legislation

AOBA has joined with more than 50 other statewide business organizations to oppose the so-called “Employee Free Choice Act,” which proposes to change how unions are allowed to organize workers.  Labor unions have been pushing the federal legislation to bolster union membership and strengthen their hand in negotiations with businesses.  The controversial measure would eliminate the private ballot process for unionization, a basic principle of an elected democracy that has also been part of U.S. labor law for decades.  Instead, unions would be able to represent workers once a majority has simply signed an authorization card.

The bill also requires that an employer start collective bargaining with a newly formed union within 10 days and complete a contract within 90 days.  If contract negotiations fail, either side may refer the matter to a federal arbitration panel, which can hand down a contract that is binding on both sides for two years.  The bill establishes strict penalties, with up to triple back pay damages for contract violations by employers.

Virginia’s two Senators, Jim Webb and Mark Warner, both Democrats and officially uncommitted, are considered to have potentially deciding votes on the issue.  For more information, visit http://www.virginiaworkplace.com and click “take action” to write, email, fax or call your federal representatives and tell them to vote no on the “card check” legislation.

Fairfax County to Host Conference on Transforming Economy

On June 18, 2009, Fairfax County will present a thought-provoking conference addressing “The New Urban Economic Model: The Transformation of Fairfax County.”  AOBA members with an interest in the County may be interested in attending and participating in the high-level discussion regarding its future development.

Fairfax County, once a suburban Washington bedroom community, now is a major business location and a focal point of innovation, boasting headquarter locations for the likes of Volkswagen, CSC and Hilton Hotels.  The conference will focus on what happens (or what should happen) when a suburban community evolves into an urban center, and how a community navigates such a transformation while maintaining its position as a desirable location for business with a strong economy and a higher quality of life. Among the issues participants will be asked to provide feedback on will be how forward-thinking communities are rising to the challenges and opportunities created by urbanization, and what the critical factors are that companies consider when expanding in or relocating to an urbanizing community.

Visit www.transformingfairfax.org for event information and registration.

Moran Leads Democratic Field in First Gubernatorial Poll

With the 2009 race for Virginia Governor already well underway, the first poll of the election season, conducted by the Daily Kos, has surfaced.  The poll gives an early indication that former Alexandria Delegate Brian Moran (D) is outpacing his peers in the race for the Democratic nomination:  24 percent of likely primary voters indicated that they would support Moran over former DNC Chairman Terry McAuliffe (19%) and State Senator Creigh Deeds (16%).  However, a significant 41 percent of likely primary voters indicated that they remain undecided.  When polled against Republican nominee former Attorney General Bob McDonnell, Moran also fared best among the field of Democratic candidates, running nearly even with McDonnell.  The poll was welcome news for Moran, following fundraising reports released last week which showed that McAuliffe had significantly outpaced his rivals in collecting campaign contributions.