What is a PAC?
PACs have been around since 1944 when the Congress of Industrial Organizations
(CIO) formed the first one to raise money for the re-election of President Franklin
D. Roosevelt. A Political Action Committee (PAC) is a popular term for a political
committee organized by like-minded people, like REALTORS®, for the purpose of raising
and spending money to elect and defeat candidates. The PAC's money must come from
voluntary contributions from members rather than the member's dues treasury. PACS
represent business, labor or ideological interests. PACs can give $5,500 to a candidate
committee per election (primary, general, run-off or special). They can also give
up to $15,000 annually to any national party committee and $5,000 annually to any
other PAC. PACs may receive up to $5,000 from any one individual.
Why should I contribute to RPAC?
Your REALTOR® Political Action Committee (RPAC) is the muscle behind the National
Association of REALTORS® (NAR). RPAC represents over 200,000 politically active
REALTORS® that members of Congress want as their friends.
What has RPAC done for me?
Recent legislative and regulatory successes include:
- Prohibited large banking conglomerates from entering into brokerage and property
management
- Passed the Fair Credit Reporting Act so that consumers will be entitled to receive
one free created report annually Reduced capital gains rate from 20% to 15% Reduced
come tax rates to top rate of 35%
- Defeated proposal that would have undermined the Low Income Housing Tax Credit Started
a new initiative to implement the American Dream Downpayment program that will provide
direct financial assistance to lower-income families and facilitate their purchase
of a home
- Started a new initiative to pass bills that would create a tax credit for developers
and investors who build or rehabilitate single-family residences for purchase by
below-median income individuals and families
- Reauthorized the National Flood Insurance Program and assisted the Department of
Homeland Security in obtaining $200 million to update flood plain maps and make
them available online
- Developed a comprehensive literature review on the health effects of exposure to
mold
- Helped pass legislation (HR. 1115) that takes a first step on tort reform by curbing
abuses of the class action system
Persuaded the Federal Communications Commission (FCC) to delay the effective date
of the new Do-Not-Fax rules as they relate to Existing Business Relationships and
the requirements for written consent until January 2005
What is RPAC's 2005 Federal Priority Issues?
- Banks in Real Estate – NAR won prohibition on banks in real estate for another year
in 2004 when the 108th Congress approved its omnibus appropriations bill containing
another one-year prohibition against large banks entering the real estate brokerage,
leasing and property management business. The one-year prohibition effectively continues
the ban on large banks that has been in operation for the past three years. House
leaders removed a provision in the bill that would have permanently prohibited these
banks from entering the real estate industry. The House bill, H.R.111, as well as
the Senate Bill, S. 98, were reintroduced in the 109th Congress in 2005.
- Association Health Plans– NAR supports the creation of federally-certified small
business health plans (SBHPs), also known as association health plans (AHPs) to
allow state REALTOR® Associations to extend health insurance coverage to members.
In the 108th Congress, the House passed its bill, but the legislation lacked support
in the Senate. In 2005, H.R. 525 and S. 406, the Small Business Health Fairness
Act, have been introduced into the 109th Congress. NAR continues to work with the
National Federation of Independent Businesses-led SBHP coalition on efforts to advance
the legislation in the 109th session of Congress.
- Tax Reform – NAR anticipates an active tax year. The President and House Republican
leaders have indicated interest in engaging a debate about tax reform, perhaps favoring
a national sales tax. The implications could be tremendous for the real estate industry.
In 2005 NAR will vigorously defend the mortgage interest deduction and homeownership/investment
tax benefits from any efforts to reform the tax system.
- GSE Regulatory Refrom – Congress is expected to again pursue efforts reforming the
regulatory structure of the housing government sponsored enterprises (GSEs) – Fannie
Mae, Freddie Mac, and the Federal Home Loan Banks. In 2005 NAR is closely monitoring
efforts to reform GSE regulation and working to protect the mission that the housing
GSEs play in making housing more affordable for families.
- Do Not Call/Fax/Email Rules – NAR has been effective in convincing the Federal Trade
Commission and Federal Communications Commission to modify proposed rule changes
and protect members from unfair, costly and tedious changes to their marketing practices.
NAR was instrumental in getting the FCC to extend until June 2005 its stay of effective
date of the Do-Not-Fax rules. In 2005 we’ll be working with Congress to reintroduce
and enact a junk fax bill to protect NAR members from unfair and costly changes
to their marketing practices.
- RESPA - NAR worked with Congress and urged the Department of Housing and Urban Development
to withdraw its proposal reforming the Real Estate Settlement Procedures Act (RESPA).
The objectives of the proposed rule were to simplify and improve the process of
obtaining mortgages to reduce settlement costs to consumers. However, the real estate
industry objected to the proposal contending that it would reduce competition, increase
prices and dramatically reduce the options and services for consumers. HUD Secretary
Alphonso Jackson has indicated that he remains committed to RESPA reform and would
re-propose the rule after consulting with Congressional leaders and affected industry
groups. In 2005 NAR will work with HUD to best represent the interests of REALTORS
and consumers in the RESPA rulemaking process.
- Federal Preemption of State Real Estate Laws - In 2005 NAR will continue to urge
Congress to maintain vigilance and not abdicate its responsibilities and permit
such policy-making by regulation to proceed unchecked.
How will my contribution be used?
100% of your contribution is used to elect pro-REALTOR® candidates. 30% of your
contribution is forwarded to the National RPAC to fund key U.S. House and Senate
races; 70% remains in your state and is used for local and state elections.
What party is RPAC affiliated with?
RPAC is neither a Republican nor a Democratic organization. Your contribution
to RPAC is a vote for a pro-REALTOR® Congress, regardless of political party.
How did RPAC do in the last election?
RPAC remained the nation's largest business trade association PAC with
disbursements of $3.7 million dollars to the federal candidates and national political
committees in the 2000 election cycle. RPAC continued its bi-partisan tradition,
contributing 60% of its fund to Republicans and 40% to Democrats, and was the only
PAC on the winning side of 93% of the 441 congressional races that received RPAC
contributions.
Who establishes and implements RPAC policy?
Leading the National RPAC organization are the National RPAC Trustees.
The Trustees establish and implement RPAC policy in accordance with the RPAC bylaws
and NAR policy as established by the NAR Board of Directors. The Trustees consist
of REALTOR® volunteers from around the nation who are appointed by NAR leadership.
How does RPAC establish fundraising goals?
The dollar goal of the National RPAC, set by the National Trustees, is
$10.00 per year per NAR member. At least $3.00 of that goes to the National RPAC.
This goal is called "fair share." To ensure that all states contribute their fair
share to the RPAC effort, a state's annual goal is determined by the number of members
in that state based on the November 30 membership report. The National RPAC accounting
year runs from January 1 to December 31.
What is the RPAC fundraising goal of my local association?
For 2005, OKCMAR's goal, set by NAR, is to raise $42, 720.00.
Who may be solicited for RPAC contributions?
According to federal election law, RPAC can solicit only individual members – ie.
non-corporate members of NAR and their families. The term "members" means all individuals
who currently satisfy the requirements of membership in any one of the local, state
and/or the National Association and regularly pay dues.
Executive, administrative and management personnel of the local, state and/or national
associations are also considered under the NAR constitution to be members of the
association and are solicitable even though they may not pay association dues.
Are contributions to RPAC tax deductible?
No. Contributions used for political purposes are not tax deductible on your federal
income taxes.
Does the National RPAC contribute to state or local candidates?
Under the cooperative agreements in effect between the National RPAC and the state
associations' PACs, the responsibility for making contributions to federal candidates
is assigned to the national RPAC, while state associations' PACs decide which state
and local candidates to support.
Can I earmark money to a party or particular candidate?
No. Under federal election law, the earmarking of contributions is illegal.
What process do the National Trustees use when determining contribution to candidates?
The National Trustees' policy is to act only on requests sent from state
associations and signed off on by state trustees. Once the national trustees receive
these requests, they have four options: Amend, Approve, Deny or Defer.
Upon what criteria does the National RPAC base its decision to support federal
candidates?
Recommendations from State RPAC Trustees
NAR congressional voting records and analyses of incumbent members of Congress
Campaign intelligence reports provided by the NAR political and legislative staff
Will the National RPAC Trustees contribute to both candidates in a race?
No. The National RPAC Trustees' policy is to only contribute to one candidate in
any given election. However, the use of In-State Reception funds and D.C. Reception
Funds does not necessarily count as dual contribution if the National RPAC supports
a challenger. Again, these are relationship-building monies.
How much money stays with the state association and how much goes to the National
RPAC?
The National RPAC maintains voluntary cooperative agreements with the state associations'
PACs. States retain 70% of the money they collect for the support of state and local
candidates and send 30% to the National RPAC for the use in supporting federal candidates.
What is the difference between hard (personal) money and soft (corporate) money?
Hard money has many restrictions on how it is raised and spent and must be fully
reported to the Federal Election Commission. Hard money is raised from individuals,
who can contribute up to $1,000 directly to a federal candidate per election and
$5,000 to a Political Action Committee, like RPAC, per year.
RPAC can contribute $5,000 to a federal candidate per election.
RPAC can only accept money from individuals. Soft money is raised from corporations,
unions and individuals. Federal candidates cannot accept soft money. Soft money
is raised by party organizations, unions, corporations and associations. There are
no limitations on the amount of softy money an organization can spend.
Unlike RPAC, NAR can accept corporate contributions, which can then be used to communicate
with our membership about a candidate through opportunity races or used for issue
advocacy.