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Community Corner

Cesspool Legislation Could Derail Housing Recovery

Warwick, RI, June 16, 2014….The Rhode Island Association of Realtors is urging legislators to oppose a bill that would require all cesspools to be replaced with new septic systems within 12 months after sale or transfer.  If passed, S-2864/H-7724 would require all homebuyers to spend $10,000 to $15,000 for a basic septic system and thousands more if alternative technology is required, whether or not the property’s cesspool has failed.  The Realtor community asserts that the proposed legislation could derail the housing recovery, and by singling out homes in transfer only, falls far short of the statewide solution needed. 

 “Protecting water quality is a statewide problem that requires a statewide solution, not a Band-Aid approach. It doesn’t make sense to single out only properties being sold while we allow the vast majority of offending properties to remain as is. That’s a disincentive to sell and an incentive to keep the status quo,” said Monica Staaf, Chief Legal Counsel for the Rhode Island Association of Realtors.  “We fully support the intent of this legislation, but we’re 100 percent opposed to the solution.” Staaf also noted that the legislation would take effect upon passage, which could be as early as this week, leaving thousands of homebuyers scrambling to attain additional last minute funding, if possible.

The bill is modeled after Massachusetts legislation but is lacking in one key component:  Unlike Massachusetts, Rhode Island has no tax credit or statewide loan program in place for cesspool or septic system repair and replacement.  Without such funding sources, post-recession homebuyers already struggling with new credit requirements and appraisal guidelines, will be solely responsible for addressing the problem. Thousands of properties with failing cesspools would be left untouched.

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“Rhode Island’s housing recovery is in its infancy,” added Robert Martin, President of the Rhode Island Association of Realtors.  “It’s counterintuitive to pass a bill that adds costs of this magnitude to homeownership, particularly at this time.  A strong housing market is a key driver to the economy so we need to keep our housing recovery moving forward.  Legislation with this kind of price tag for consumers would do just the opposite.”

The Rhode Island Association of Realtors is asking Rhode Islanders to contact their legislators to ask them to oppose this legislation. It is expected that the Senate will vote on the bill in the next few days.

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