The Association is open to other ideas as well.

Property Taxes

Property taxes in Connecticut account for approximately two-thirds of all local revenues. Because high property taxes discourage the purchase and sale of real estate, the Association strongly advocates close monitoring of local government spending by all taxpayers.

The Association supports a system of taxation based upon a uniform assessment rate of present true and actual value for all properties as determined at time of revaluation. REALTORS® oppose tax schemes which subject different classes of property to different tax treatment. Concepts such as the "differential approach" and "homestead exemptions" provide relief to residential taxpayers but force owners of apartment buildings and other business properties to unfairly shoulder a high proportion of the tax burden. This in turn aggravates the shortage of affordable rental housing units.

Business Services Sales Tax

A tax on business services represents a threat to Connecticut's strong business climate. In the late 1960's and early 1970's, corporations flocked to Connecticut from neighboring states because of our favorable tax rates. To continue to attract new businesses to Connecticut, the State has to lessen the tax burden on business and industry and create an economic environment that enables corporate expansion and job creation.

A business services sales tax is ultimately a tax on consumers. Arguments against taxing business services are:

1. The taxing of business services will result in multiple taxation.
2. Certain services are necessities of life and therefore should not be taxed.
3. Because of multiple taxation, the costs for services are increased at the consumer level; businesses don't pay taxes - people do.
4. Firms required to purchase services are placed at a competitive disadvantage with firms having these services in-house.
5. The tax may apply to services purchased out of state.
6. The sales tax on services is broad and confusing; the designation of which service should be taxed is arbitrary.

REALTORS® are united with the business community in their opposition to any expansion in the State's sales tax on business services. If Connecticut is to maintain a high quality of life for its citizens, then the State must create and maintain a desirable business climate.

Equal Opportunity in Education

A continuing priority of the legislature is responding to the Connecticut Supreme Court decision in Sheff vs. O'Neill. The ruling (which applied to the entire State) found that severe racial imbalance in Hartford's public schools violated the State Constitution. It ordered the legislature to devise remedies that would grant children living in urban neighborhoods an equal chance for a quality education.

The Connecticut Association of REALTORS® recognizes that low educational achievement in our cities constitutes a threat to Connecticut's economic health and its ability to compete. We also know that capacity to deliver quality school programs is linked to other urban conditions, such as movement of businesses from city to suburb, the flight of many middle class families, and wide differences in local property tax resources.

We favor measures to provide all children equal access to a quality learning experience, regardless of whether they live in the city or suburbs. We favor the concept of giving parents a range of choices among schools that compete with each other in the same geographic vicinity. These options include enhancement of several programs already in existence, such as interdistrict Magnet schools, Charter schools and Project Concern. Fostering a competitive environment should place downward pressure on per student costs as schools vie for students.

A safe and disciplined learning environment is essential. A comprehensive accountability system should treat the school-parent relationship as a contract holding high expectations for both sides.

The Connecticut Association of REALTORS®, Inc. supports well conceived plans for urban revitalization that include job training, economic development and home ownership strategies. We restate our long-standing commitment to the expansion of affordable housing opportunities inside and outside urban areas. We believe equal opportunity in housing and equal opportunity in education are strongly linked.

Finally, generous resources are already available to finance quality education in our State. What is needed to remedy the Sheff findings is a system that makes most efficient use of currently available education dollars, not additional taxes on real estate which is already the major source of school financing.

State Budget Policy

The Association recognizes the efforts of the General Assembly to achieve fiscal reform and budgetary responsibility. The Constitutional limit on state spending passed in 1991 was strongly supported by C.A.R. and must be enforced. If our state's economy is to prosper and our state budget to remain healthy, state government has to contain its spending and increase its overall efficiency in delivery of services. We encourage the Governor of Connecticut to use the line-item veto that is available to him to control state spending.

The Association strongly supports and would urge that the General Assembly continue in the direction of achieving fiscal soundness while minimizing the tax burden on real property owners. Unfortunately, real property owners continue to pay a disproportionate share of taxes. The Association is calling for reductions in the real estate conveyance tax, capital gains and dividend taxes, and favors aid to municipalities in lowering real property taxes.

One way to assist municipalities in lowering real property taxes would be the passage of a moratorium of one year or more on new state mandates placed on cities and towns. In addition, we request that the General Assembly evaluate all such existing mandates to ascertain their fiscal impact on the cities and towns.

The General Assembly should determine if any reduction in funding by the State to cities and towns to carry out the mandate should be accompanied by a corresponding reduction in the mandated requirements.

As the burden of service is shifted from the federal government to the states, it becomes increasingly critical for state governments to spend wisely and tax fairly. REALTORS® call upon the members of the General Assembly to oppose any initiatives that will hurt Connecticut's business and real estate sectors.

V. REAL ESTATE INDUSTRY

The real estate industry is vulnerable to cyclical changes in interest rates and economic conditions. Most economists agree that the housing industry is a crucial factor for leading the State's economy out of a recession. When homes are sold, the local community benefits and a robust housing recovery helps to solve the State's financial dilemma.

The construction of 1000 single-family homes generate an estimated 2,448 full-time jobs in construction and construction related industries, $79.4 million in wages, and $42.5 million in combined federal, state and local tax revenues and fees. New production is only one aspect of the total real estate market. It is estimated for each newly-constructed home sold there are five existing homes sold. Our Association research shows that for every 100 housing resales in a community there is an economic surge in the local economy. Direct expenditures before-the-sale (painting and fix-up), at-the-time of sale (household movers and attorneys), and for 12 months after-the-sale (furniture, appliances and fixtures) generate approximately $540,000 in retail spending per 100 resales. These are direct expenditures that would not have occurred in the absence of home sales. This does not include earnings of lenders and real estate agents.

The Association seeks stable and upward growth for the industry. Without continued growth, local communities and the State economy will suffer. Therefore, we will continue to oppose all legislation that will jeopardize a strong State economy. The real estate industry should not be viewed as a source of funds capable of solving various State ills; but rather should be viewed as a variable that generates a healthy State economy.

First-Time Homebuyer Tax Credit

To help stimulate jobs in the construction industry, to spark housing resales, and give a boost to all businesses that rely on a healthy housing market, REALTORS® support a temporary State income tax credit for those buying their first home.

Such a credit should apply to first-time buyers of both existing and newly-constructed homes and be as broadly applied as possible to maximize its favorable economic impact. However, we recognize that public officials may wish to limit such a tax credit in times of scarce revenue and therefore accept the concept of targeting the credit to buyers of homes within CHFA sales price limits.

REALTORS® therefore urge the General Assembly to support this concept providing a $1500 credit for both new and resale homes purchased during a 24 month period. We believe any cost to the State will be more than offset by long-term expansion of the State's economy and its generation of additional revenue from sales, property, income and conveyance taxes.

Regulation of Building Inspectors

Working as a coalition in 1999, the Greater Hartford Property Owners, the American Society of Home Inspectors, the Connecticut Association of Home Inspectors and The Connecticut Association of REALTORS® successfully persuaded the General assembly to pass legislation requiring the licensing of home inspectors. We believe that this law will improve the quality of information which buyers obtain and upon which they rely when making decisions about buying property. We applaud all those who contributed to its enactment.

Public/Private Partnerships

Continued demands for public services but popular resistance to tax and fee increases points to the need for better collaboration between the public and private sectors in solving many of today's problems.

The Connecticut Association of REALTORS® supports such joint initiatives. In fact, it has advocated joint approaches in which the Association and its local Boards can assist the State agencies in processing renewal of real estate licenses and disseminating economic development data on its web site. Also, since a great deal of the Real Estate Commission's time is devoted to reviewing courses offered for continuing education credit (as opposed to enforcement action), we favor giving the Commission and Department of Consumer Protections authority to levy a $25 course approval fee. Proceeds should be earmarked to the Commission.

Location of Released Felons

Under the REALTOR's® Code of Ethics, our members are obligated to discover and disclose adverse factors reasonably apparent based on the expertise required by their real estate license. While we strongly support the disclosure of material facts about a property prior to transfer, there are some matters that we believe are outside the professional purview of a real estate licensee.

Chief among these is information about the presence of convicted felons in the neighborhood or community. We were pleased that passage of Public Act 98-111 strengthened Megan's Law by broadening the kind of sex-related offenses requiring registration with law enforcement authorities. More significantly for our industry, it directs the Department of Public Safety to create and maintain a sex offender registry. This is a "public record" accessible to anyone, over the Internet. We feel strongly that law enforcement agencies are the only reliable appropriate source of sex offender information and should have sole responsibility for community identification and notification programs. We urge further improvements clarifying that real estate licensees have no affirmative duty regarding the location of released sexual offenders or other felons. CAR favors the inclusion in the property condition disclosure report of a statement explaining how buyers can obtain that information either from the local law-enforcement offices or from the state Department of Public Safety.

Off-Site Information Disclosure

Since 1995, Connecticut has had a "seller's property condition disclosure law" that has worked quite well to promote the accurate flow of information on residential real estate for sale to prospective purchasers. With a few exceptions, however, it deals with "on-site" characteristics of the property; it does not address factors beyond the boundaries of the real estate being purchased.

Trying to define the scope of the seller's responsibilities in this area has been confusing. For example, is it a "material fact" (that must be disclosed to potential buyers) that a closed landfill is situated two miles from the listed home? One mile? One-quarter mile? Is it solely the due diligence duty of purchasers to determine if a state highway is being relocated or expanded in the vicinity? Do sellers have a duty to share what they know?

CAR believes it is in the interest of homebuyers and the general public for the legislature to reduce this ambiguity. This can be done by creating a centralized repository of selected off-site data that can be accessed by residential purchasers. We recommend this be coupled with some form of immunity from liability for sellers and their agents who notify purchasers of the availability of this information.

Referral Fees to Relocation Companies

The payment of broker-to-broker referral fees for the provision of service (or "something of value") between real estate agents has been a legitimate and accepted business practice.

Increasingly, however, REALTORS® are being confronted by demands made by third party relocation management companies for a portion of their commissions earned. They seek payment of a so-called "referral fee" presumably for having introduced a seller or buyer who is being transferred by their corporate sponsor.

The most flagrant abuses have occurred in Connecticut when referral fees are charged for business the broker already has. In this situation a REALTOR® may have already listed a transferring employee's house (or found an incoming employee a home in their new destination) with no previous introduction by the corporation or relocation company. Later that REALTOR® receives a call from the relocation firm requiring the payment of a referral fee. If the REALTOR® objects to the policy, he or she is told that the seller (or buyer) will lose certain company benefits. Not wishing to hurt the client or customer, and also feeling that refusal to pay the fee might "blacklist" the REALTOR® from future business with that same large company, the fee is paid.

It is possible for a broker to have to pay double referral fees. One fee is paid to the "true" source of their business, another is paid to the later-surfacing relocation company.

In 1998, the Real Estate Commission adopted a "Policy on Referral Fees and Interfering with Agency Relationships" to address these abuses. CAR applauds this effort and will continue to vigorously monitor the practices of third party relocation management companies to assure the adopted policy has addressed the abuses. Legislative/regulatory action may be needed to address these issues if the "policy" is not effective.

Brokers' Price Opinions

Generally, Connecticut's licensed brokers and salespersons are prohibited from preparing any estimate of value for a fee or consideration unless they hold a valid real estate appraiser's license. The only exception is when an estimate is done "as part of a market analysis performed for the purpose of a prospective listing or sale" of the subject real estate, or when incident to taking or servicing a buyer representation agreement. In such case, the broker or salesman shall not charge a fee or other valuable consideration separate from the sales commission, and the estimate shall not be called an appraisal.

The Association supports a slight expansion of this exception to include such estimates prepared for purchase or rental purposes and for the purpose of "servicing" a listing (as well as "obtaining" a listing which is now permitted).

Rescission of Contracts

There have been legislative initiatives to allow a buyer to cancel a binder or contract for the sale of residential property within three business days after the execution of such binder or contract. Such an initiative would create "no-contract-contracts" and produce chaos in the residential real estate market.

Currently, a reliable balance exists between buyers and sellers who enter into a residential binder or contract. Both parties to the contract have ample opportunity to be represented by an attorney to negotiate, review and revise a proposed contract before it is signed. There have been no major problems under the present system that warrant cause or claim for such a radical departure from the established norm. To grant one party in a contract more power than the other is a dangerous legislative precedent to set, especially when the contract is being voided for no reason whatsoever.

Every homebuyer will someday become a homeseller. When this change occurs, the new homeseller will discover an erosion of rights. It is bad public policy to stack the deck in favor of one segment of the population over another. The legislature should strive to balance rights of buyers and sellers of a potential transaction and not give one party an advantage in a negotiated contract.

Agency Disclosure and License Law Modernization

Market forces have encouraged greater variety in the types of representation offered to consumers by real estate brokers and salespersons. "Buyers' broker", "seller's agent", and "disclosed dual agent" are familiar words.

In 1989, the Connecticut Association of REALTORS® published an informative folder for prospective purchasers, entitled "Who Does a Real Estate Broker Represent?". In 1990, C.A.R. won passage of legislation requiring all real estate licensees to provide advance disclosure of their agency status to consumers. Alternate forms of representation were specifically recognized in the legislation and regulation which followed.

In 1994, C.A.R. backed legislation signed by Governor Weicker to modernize the real estate license law. It provides a level playing field for buyer brokerage and traditional seller brokerage, with rules for "buyer agency agreements" as well as listing agreements. This legislation protects the public and safeguards the broker's legitimate right to be compensated. The "modernization" bill also made the law gender neutral.

Redefining Agency Relationships

In response for members' demands for clearer guidance on what a licensee (as an agent) can do or say to clients and customers, the Association created the 1994 C.A.R. Presidential Advisory Group on Agency.

The "agency problem" manifested itself in a variety of ways:

• questionable ties between buyers and subagents who ostensibly represented the seller;
• confusion over how to handle "in-house" (or "in-company") transactions;
• risks of undisclosed dual agency; and,
• the lack of industry standards for handling confidential client information.

Among its recommendations, the Advisory Group called for legislation that would redefine and clarify agency relationships as follows: (1) eliminate subagency as a general selling practice; (2) establish an evidentiary presumption of consent to dual agency by means of a statutory form; and (3) provide specific rules for agents handling confidential consumer information.

A bill was drafted in the fall of 1995 that incorporated all of these recommendations. Vigorous legislative outreach by C.A.R. recruited key co-sponsors in both chambers. Early liaison with both the Real Estate Commission and Department of Consumer Protection allowed their concerns to be addressed satisfactorily.

The result was the enactment of: Public Act 96-159: An Act Concerning Real Estate Brokerage Practices. REALTORS® received one year to gear up for the law which took effect on June 1, 1997. Two years later, another change was made to give consumers the option of electing "designated agency". Designated agency enables an agent in an office to provide undivided loyalty to a buyer-client, even when showing or negotiating for a property listed by another agent in the same office. (That other agent provides undivided loyalty to the seller.)

C.A.R. is working closely with the Real Estate Division of the Department of Consumer Protection, as well as the University of Connecticut's Real Estate Center, to assure that the real estate community receives a clear and uniform message about the law's requirements.

Over time, these benefits should inure from the legislation: greater certainty and confidence for buyers, sellers, and licensees; reduction of the "tracking" problem for companies whose salespersons showed property as subagents in the past and now have buyers desiring exclusive representation in connection with the same property; and the elimination of a seller's vicarious liability for actions of subagents.

Personal Assistants

The Connecticut Association of REALTORS® believes unlicensed personal assistants can be valuable to some real estate offices by making their licensed salespersons and brokers more productive. The problem occurs when such personal assistants become involved in substantive interaction (for another and for a fee). We applaud the Real Estate Commission for their policy letter specifying the functions that personal assistants may engage in without being licensed as a salesperson or broker.

VI. ENVIRONMENT

Our State's natural resources preserve the "old New England" charm and scenic beauty that allows Connecticut to maintain its traditional colonial appearance and quality of life. Clean soil and safe water are elements that will assure continued growth and prosperity throughout the State.

The Connecticut Association of REALTORS® has long been an advocate for a clean environment. The Association firmly feels the polluter should be responsible for costs associated with cleaning up a hazardous spill or waste that seeps into the ground or water.

Super Lien and Negative Declaration Transfers

During the 1984 General Assembly session, a bill was passed that granted the State authority to place a lien against property of persons involved in the discharge of oil, hazardous waste or other kinds of environmental "spills". The State's lien was created outside of and in disregard of the land records and was made superior to all transfers and previously-recorded claims. The purpose of this bill was to enable the State to recover the clean-up cost of the hazardous spill. This law was dubbed "super lien".

In subsequent sessions of the legislature, C.A.R. campaigned vigorously to repeal this law. Although it was not repealed, the legislature made several modifications to limit its scope. PA 85-443 provided that "exclusively residential" property would not be subject to the super lien, only to a lien that kept its place in the normal chain of title. Also, PA 87-475, provided an alternative for sellers and buyers to avoid super lien exposure if they followed strict transfer procedures. These procedures involve the submission of a "negative declaration" by the seller to the buyer prior to the transfer, attesting that there has been no spill on the premises, or that there is no threat to the public from any previous spill.

These "negative declaration" procedures apply to so-called "establishments", which were sites upon which hazardous waste was generated, transported, stored, handled or otherwise dealt with on or after May 1, 1967. They also apply to auto body shops, painting shops, furniture stripping establishments, and dry cleaning establishments. Service stations can use a similar procedure to avoid super lien liability.

Unfortunately, these procedures which are also known as "Transfer Act Site Assessments" (TASAs), have delayed many commercial real estate transactions due to staff shortages at the DEP. There is a backlog of hundreds of properties awaiting the "go-ahead" by the DEP to proceed with transfer plans.

To protect the saleableness of real property and to expedite this process, the Connecticut Association of REALTORS® recommends legislation that

1. provides clear environmental standards for TASA approval,
2. provides for the certification or licensing of environmental testing firms,
3. permits certification of cleanliness by such firms in compliance with the DEP standards, and
4. provides that the liability of a buyer or mortgagee (and successors in title) would be indemnified if
   a. the buyer employed a licensed (or certified) environmental testing firm to test the property,
   b. said company found no pollutants present in levels exceeding the DEP standards, and
   c. the buyer, mortgagee, and/or subsequent title holders contributed no pollution to the site subsequent to purchase.

The Connecticut Association of REALTORS® applauds the efforts of the General Assembly to streamline the process for transferring "establishments" by enactment of Public Acts 95-183 and 95-190.

From the outset, C.A.R. has agreed with the principle that "the polluter should pay" for the costs involved with cleaning up environmental contamination for which he is responsible. However, there are different ways in which the State can enforce the law without relying on such a radical procedure as the "super lien". It is too easy for innocent purchasers to be "wiped out" by the State's lien, which would hold these owners financially responsible for pollution they did not create and which could have originated many years before they took control of the property.

Where it is difficult to identify or locate the person responsible for the contamination, the State should utilize its "Emergency Spill Response Fund" to pay for the clean-ups. C.A.R. supports secure and adequate financing of this emergency fund, and is on record as favoring the following sources of revenue for this Fund: an annual appropriation of $1 million from the General Fund, an increase in the existing assessment on industries that generate hazardous wastes, an increase on the fines imposed on polluters, and the imposition of a modest assessment on all other contaminants used in Connecticut.

River Protection Buffers

A Rivers Advisory Committee to the Department of Environmental Protection has proposed uniform statewide buffers along streams and rivers to facilitate floodplain functions, control non-point source pollution, support fish and wildlife, and protect other river corridor resources.

Buffer widths of at least 100 feet are envisioned as setback areas from stream banks in which only limited new activity would be allowed. The intent is to prohibit new structures inside the buffer. As an alternative to the "fixed width" buffer, towns could establish a "resource-based" boundary.

C.A.R. recognizes that our State's river and stream corridors perform valuable hydrological and ecological functions. These natural resources are a strong "draw" for home purchasers and businesses considering moving to Connecticut, not to mention the benefits for our tourism industry.

At the same time, owners of private property need to be protected from economic loss caused by government restrictions on land usage. The value of private property should not be diminished or jeopardized by governmental action without just compensation. Before considering another regulatory program, it needs to be demonstrated that existing environmental controls are inadequate. C.A.R. would like to have evaluated, for example, the controls presently exercised over watercourses by inland wetlands agencies, land trusts, and "best available" management practices (cluster and open space development, for example).

Revision of Connecticut's Wetlands Act

Connecticut's wetlands law was enacted before the federal government created its own wetlands programs. The State's definition of "wetlands" has proven to be overly broad since it includes some soils that are in fact, "waterless". As a result, the State wetlands law covers twice as much land as the federal law (535,000 acres versus 240,000).

In 1996, the General Assembly approved of major changes to improve the State's wetlands law. A number of these were recommended by the Home Builders Association of Connecticut, Inc., and supported by C.A.R. The Connecticut Association of REALTORS®, Inc. favors additional efforts to update the Inland Wetlands and Water Courses Act to reflect currently accepted science. The definition of wetlands should be tied to "hydric soils" rather than poorly drained, very poorly drained, alluvial and flood plain soils. Other changes should be made to eliminate overlapping regulations of "upland areas" by wetlands rules when they are already regulated by other programs such as storm water and flood plain controls. The legislature should approve a "de minimus" area exemption from wetlands regulations for isolated hydric soil areas of up to 1/4 acre.

Owners' Rights in Coastal Areas

The Connecticut Association of REALTORS®, Inc. favors changes to the Coastal Area Management Act to provide as follows :

1. Regulatory action in the coastal area must be taken with due regard to the rights of private property owners;
2. That the preservation of coastal resources does not unduly deny private property owners of any right they may have to preserve or protect each property;
3. That, in the adoption of regulations for the preservation of coastal resources, consideration is given to any adverse economic effects on the state or property owners;
4. In adopting such regulations, the Commissioner shall consider the effects such regulations may have on private economic activity and the rights of private property owners.

Well Testing

We oppose government-imposed mandates forcing buyers and sellers to undertake a variety of well water tests simply because a property is being transferred. The difficulty of this "mandated" approach was exposed during the first half of 1997 when a compulsory well-testing regulation adopted by the State Health Department was briefly in effect then had to be rescinded.

The net effect was that some buyers were forced to spend substantially more dollars on these tests than on a full evaluation of the remainder of the property creating not only a financial hardship but delays in their transactions. Some may have elected to forego inspections for other dangerous residential faults like structural problems and faulty wiring. Ironically, this time-of-transfer regulation did nothing to improve water quality for the numerous homes not on the market and thus not having to comply.

The Connecticut Association of REALTORS®, Inc. has long championed prudent investigation into the condition of a property prior to purchase. The Association was a driving force for including an item concerning drinking water problems in the seller's property condition disclosure form. REALTORS® support the testing of wells at the option of the buyer, seller, and lender, with the advice of the local director of health.

Lead Poisoning

As parents and homeowners, REALTORS® are committed to protecting children from exposure to toxic levels of lead. However, the sources of lead are legion, ranging from soil and dust, plumbing, paint and other substances and no prevention program will succeed if it is not practical, cost-effective, and government subsidized.

Public Act 87-394 was enacted by the legislature despite C.A.R. opposition. A key provision was a requirement for owners of ANY dwelling containing toxic levels of lead and in which children under six resided to abate or manage such dangerous materials. The contentious five-year period it took the State Health Department to gain approval of the detailed Lead Poisoning Prevention Regulations is a reflection of the widely divergent opinions expressed in their development.

C.A.R. strongly opposed the first set of regulations. The Association argued that they went far beyond legislative authority in their prohibitions on private owners doing their own repair and abatement work and in their costly "lead free" versus "lead safe" approach. C.A.R. objected to many other of the 1988 "rules", including discriminatory and expensive time-of-sale lead inspection mandates.

The Association succeeded in persuading the Legislature's Regulations Review Committee to disapprove this version. Shortly thereafter, the Department of Health Services invited C.A.R. to participate in a Lead Focus Group in crafting a new set of Regulations, which were rejected without prejudice on May 19, 1992.

The Regulations Review Committee held an "arbitration workshop" to attempt to resolve the outstanding differences. On September 15, 1992, the Committee approved a compromise set of regulations with more deletions sought by C.A.R.

Major improvements in the 1992 version compared to 1988 include elimination of onerous requirements that brokers serve as agents of the Health Department in explaining details of the lead poisoning rules to purchasers, elimination of mandatory pre-sale lead inspections, elimination of prohibition on owners doing their own work, provision for "letters of compliance" for owners who have satisfactorily completed abatement projects, and, in general, a "lead safe" versus "lead-free" approach.

Onerous lead abatement mandates have aggravated the housing affordability problem and contributed to abandonment of city housing. The cost to de-lead a small two-bedroom house is conservatively estimated at $2,500. The expense will be greater if stair rail balusters or other elements have to be replaced or soil removed. Removal of lead paint in a small multifamily property could potentially require the temporary relocation of all the residents of the building.

REALTORS® are opposed to mandatory lead inspections timed to the sale of property, and to unreasonable restrictions on the property owner's right to do his own lead abatement work or arrange for a contractor of his choice. REALTORS® support the disclosure of the existence of lead based materials in the property to potential purchasers and tenants. The Federal Title X law as well as Connecticut's Property Condition Disclosure Law provide numerous public safeguards in this regard.

Some banks and insurance companies are making it difficult to obtain financing and insurance for properties containing lead. Unfortunately, this practice results from a lack of understanding of Connecticut law and can do a disservice to us all.

Connecticut's lead law and regulations do not automatically require abatement just because lead is present. An "all or nothing" interpretation by insurance companies and lenders must be stopped before it ruins our older housing stock and the towns' tax base.

The Connecticut Association of REALTORS®, Inc. has enthusiastically supported legislation encouraging economical "encapsulation" technology. We urge the Department of Public Health to broadly disseminate information to the public on products available.

While REALTORS® have long favored the overall objective of a lead poisoning prevention program, Connecticut's statute and regulations must be amended to make such efforts practical and enforceable. Current authority to impose requirements on property owners is too broad, vague and costly.

We advocate the following legislative and regulatory changes:

1. Establish by statute that non-deteriorated lead surfaces, including surfaces in "fair" condition, as defined in the June 1995 HUD Guidelines for Lead Hazard Evaluation, are not to be considered "lead based paint hazards". Such conditions should be eligible for less-expensive "repair" treatment as opposed to "abatement".
2. Change Health Department Regulations to end limited authority they now have to order abatement of some intact surfaces. (Presently, certain lead-painted surfaces in perfectly sound condition must be remediated if there is a resident child with a blood lead level of 20 micrograms per deciliter.)
3. Change statute and regulations to give local code enforcement officials as much authority to order occupants to exercise reasonable personal responsibility to minimize lead exposure risks, as to order owners to undertake physical abatement projects on building.
4. Require by regulation that health officials positively identify "the source" (or sources) of lead contamination - - - not to assume it comes only from the present residence with lead-based paint.
5. Eliminate the regulation requiring lead inspection reports in private transaction to be given to State and local health directors.
6. Enact a moratorium on criminal charges except for cases of blatant negligence or disregard.
7. Provide by statute that State law and regulations shall serve as a uniform standard for lead poisoning prevention and control, preempting municipal ordinances and codes.

We also support greater research into the sources of lead poisoning and cost effective means to eliminate it, an early diagnosis program for children, and a prevention program that relies heavily on clinical activities and an educational and publicity program. Finally, REALTORS® favor State financial assistance to private property owners in remediating the lead problem.

Radon

Radon gas is a natural phenomenon caused by the breakdown of uranium. Radon exists in soil and rock that usually has a make-up of granite, shale, uranium and phosphate.

The Connecticut Association of REALTORS® believes all citizens are entitled to enjoy an indoor living environment where risks to health and welfare from pollution are minimized. We support increased efforts by both the private and public sectors to quantify and evaluate the extent of indoor air quality problems such as radon and encourage the development of consistent, meaningful, affordable and voluntary monitoring and mitigation strategies.

REALTORS® strongly favor and support voluntary radon testing programs prior to the transfer of title for residential property. By keeping the testing of radon voluntary, you allow this issue to be a negotiated consideration between the seller and a potential buyer in the sales contract. Voluntary testing ensures consistency with how other indoor environmental pollutants are currently handled. Voluntary testing of radon will enable the industry to establish the same professional standards it has already instituted for other potential hazards to residential properties. Voluntary radon testing allows the industry to police itself in an effective and positive way.

CONSTRUCTION, REHABILITATION, AND OTHER CODES

An essential function of building codes, fire prevention specifications, and similar rules is protection of public health and safety. There is a need, however, for them to be responsive to present economic conditions, more cost effective and more in tune with the need to preserve and upgrade Connecticut's existing stock of housing and other viable structures.

Fire Sprinkler System

The Connecticut Association of REALTORS® supports reasonable life-saving measures, including sprinkler systems, but believes their acquisition and installation in private homes should be determined by informed consumer choice, not by government fiat.

Public officials should recognize that the cost of sprinklers can add thousands of dollars to the cost of housing, often requiring separate water mains and/or pressurized water storage tanks.

A higher priority should be given to the proper use and maintenance of smoke and fire detection systems. Studies have shown that many homes are not equipped with a working alarm. Alarms cut (in half) the risk of dying in a fire.

"Smart Rehab" Code

Over the years, a body of data has accumulated showing a variety of building improvement activities that can be exempted from new code permit requirements when they do not affect structural/life/health safety concerns. This doesn't mean they go "unregulated"; it simply means they adhere to alternate standards more appropriate to the design characteristics of the original structure.

The creation of such standards, or so-call "smart rehab code," would be an incentive for owners to make improvements to older buildings while they still have value and the potential to revitalize neighborhoods. The present regulatory system, while it does allow "modifications" to be made in building code and fire code requirements, is cumbersome and heavily process-oriented. Applicants are forced to jump through numerous hoops before their project is approved. Also, too many inconsistencies have cropped up in the way local officials interpret the two codes.

Connecticut REALTORS® support creation of a smart rehab code as part of an overall "smart growth" strategy. While thousands of buildings in our state now stand vacant or underutilized, thousands of acres of watershed, farmland and open space are being eyed for development. Smart rehab offers tools and incentives to revitalize existing neighborhoods and helps reduce the pressure of suburban sprawl.

APPENDIX A

Code For Equal Opportunity

The Connecticut Association of REALTORS®, Inc.

subscribes to the policy that equal opportunity in the acquisition of housing can best be accomplished through leadership, example, education, and the mutual cooperation of the real estate industry and the public. In the spirit of this endeavor, this Association proclaims the following provisions of its Code for Equal Opportunity to which each member is obligated to adhere:

FIRST: In the sale, purchase, exchange, rental or lease of real property, REALTORS® and REALTOR® -ASSOCIATES have the responsibility to offer equal service to all clients and prospects without regard to race, color, religion, sex, handicap, familial status or national origin. This encompasses:

1. Standing ready to enter broker-client relationships or to show property equally to members of all racial, religious, or ethnic groups.
2. Receiving all formal written offers and communicating them to the owner.
3. Exerting their best efforts to conclude all transactions.
4. Maintaining equal opportunity employment practices.