Shumlin vs. Vermont realtors?
Gov. Peter Shumlin is opposing a bill backed by the Vermont Association of Realtors that would make homeowners agree to share private or community road maintenance costs as a condition of their mortgage if they used such a road to access their homes.
Since 2002, Fannie Mae has required that homeowners who don’t have an agreement with neighbors and who live in states without a statute on the books addressing maintenance costs be liable for those expenses. There is some contention between Shumlin and the realtors about what counts as statute, common law precedent or an actual law.
Christopher MacDonald, a lobbyist for the Vermont Association of Realtors, said that he had “heard several anecdotes from House members reporting constituents having a hard time with other neighbors helping out with this agreement. There’s always that one person who won’t agree because it’s not on statute.”
Shumlin believes there is no need for such a law because a common law precedent is already on the books, from a 1984 Vermont Supreme Court decision, Hubbard v. Bolieau.
“The governor does not understand why a law about a law is necessary. It seems that our existing Vermont law on the subject, Hubbard v. Bolieau, may meet Fannie Mae needs, but it just hasn’t been tried yet,” said Sarah London, counsel to the governor, in an email.
According to a letter from Fannie Mae to Shumlin on their policy, the mortgage lender “takes no position on whether such legislation should be adopted.”
Sen. Jeanette White, a member of Senate Judiciary – which will be taking testimony tomorrow – said that the disagreement might come from the fact that Fannie Mae had been sending mixed messages to each side.
“It seems what Fannie Mae has told the administration is that they haven’t had any cases in Vermont where they’ve had to not accept a mortgage or write a mortgage because of this lack of agreement but what they’ve told the real estate community and housing community is that they won’t underwrite the mortgage without the legislation. So I think it’s very confusing.”
However, White added that while road maintenance hasn’t held up private home mortgages, it has had an impact on public housing projects. Senate Judiciary received a letter from Sarah Carpenter, the executive director of the Vermont Housing Finance Agency “saying they have had a number of housing projects that they’ve funded that have been held up because of this.”
“It would be nice to think as the governor says is that we should do it on a handshake, but when one person on the road refuses to do a handshake that becomes a problem,” White said.
~Erin Hale
VIDEO: Equity and race in Burlington schools
Racial disparities in Burlington schools turned out to be the main event at the first working session of the City Council since a new mayor took charge. Students of color are now 27 percent of the student body in public schools. According to a Task Force report, more black students drop out of school. They’re less likely to take SAT tests and more likely to be suspended. The report is to set the stage for a strategic plan to address diversity, equity and inclusion.
On April 16 School Superintendent Jeanne Collins joined Board Chair Keith Pillsbury and staff members to outline some of the efforts that led to the report and its recommendations. But not everyone is satisfied. Some teachers say they’ve been excluded, and several residents at the council forum pointed to ongoing racial disparities.
~Greg Guma
