NAR believes that more should be done to level the playing field with respect to funding highways versus public transit and other sustainable transportation modes. Additionally, transportation plans should reflect a broad community vision that takes all transportation users into account as opposed to simply developing added road capacity. NAR supports a modest increase to the federal motor fuel tax and annual adjustments for inflation to help communities achieve their sustainable transportation and infrastructure goals.
None at this time.
What is the fundamental issue?
State and local governments have a long history of relying on federal funds for building and maintaining roads, bridges, mass transit and other critical infrastructure systems. In some cases, states rely on the federal government for over fifty percent of their transportation budget on the federal government. Since 2008 the Highway Trust Fund (HTF) has become insolvent. Fees generated from gasoline and diesel taxes have not generated enough income to fully fund the HTF. Ever since the HTF became insolvent, the federal government has transferred funds from the general fund to the HTF to maintain the existing levels of funding at the state and local level.
Roads, bridges and other types of infrastructure are critical investments in every community. This type of infrastructure provides the basic fabric of economic competitiveness cities and states throughout America rely on; particularly roads that transfer goods and services across state lines. Additionally, traffic congestion and safety measures contribute to the quality of life residents have in their communities.
An important element considered during the decision making process of either purchasing a home or determining the best location for a business, is the type of transportation options available to a property. NAR has been involved with the National Complete Streets Coalition since 2008. The purpose of the Coalition is to ensure that transportation planners consider all users of the road during the design, construction and implementation phases of a transportation project.
I am a real estate professional. What does this mean for my business?
Improvements to infrastructure enhance property values. Traffic congestion imposes costs throughout the economy. Further constraints on funding for transportation projects of all types, particularly those that contribute to walkable, stable, and vibrant neighborhoods, may negatively affect property values and inhibit development.
NAR believes more needs to be done to level the playing field with respect to funding highways versus transit and other modes. Transportation plans should reflect a broad community vision, considering the needs of all transportation users, and should emphasize repair and maintenance over development of new capacity. In addition, NAR supports a modest increase in the federal motor fuel tax and annual adjustments for inflation.
In December 2015, Fixing America’s Surface Transportation Act (FAST Act) was signed into law as a multi-year package for transportation planning. The FAST Act was viewed as a victory for two reasons: (i) guarantee fees or g-fees collected by Fannie Mae and Freddie Mac were not used as a pay-for of transportation and (ii) federal Complete Street standards were established, something that has never been done before. The FAST Act remains in effect until September 30, 2021.
While there have been several efforts to develop and pass a comprehensive, multi-year transportation reform package in 2019 and 2020, they have come up short.
While the FAST Act was reauthorized at current levels through September 30, 2021, NAR will continue to urge Congress to fund transportation and infrastructure programs that meet the needs of the community, spur economic grown, and foster resilience and sustainability in a community.