Last week, Sen. Jack Brandenburg, R-Harrison Township, introduced Senate Bill 532 to eliminate the requirement to pay into the school aid fund for qualified foreclosed properties. The bill was referred to the Senate Committee on Finance, which Brandenburg chairs. S.B. 532, which is identical to House Bill 4135, addresses Principal Residence Exemption on Foreclosed Properties.
If passed, this bill would save institutions money and time by allowing them to bypass paying school operating costs and associated administrative expenses. Given that foreclosures bear many hidden expenses (property taxes, insurance, legal fees, administrative costs, repair costs, ongoing maintenance, etc.) and that lenders take back property through no fault of their own, MCUL & Affiliates believes that allowing financial institutions to truly retain and take advantage of the PRE is a fair result.
The bills still sit in their respective chambers. H.B. 4135 was passed out of committee with bi-partisan support and is awaiting consideration on the House floor, while S.B. 532 is awaiting testimony and a vote in committee. If you have any questions contact Governmental Affairs Director Jordan Kingdon at Jordan.Kingdon@mcul.org or State Legislative Coordinator Ashley Ligon at Ashley.Ligon@mcul.org.