Health-care reform will be the hot topic over the summer as Congress will begin to consider a variety of proposals and legislation after many months of behind-the-scenes talks. The National Association of Realtors (NAR) has worked with key lawmakers who are crafting legislation to ensure that comprehensive health-care reform addresses the needs of the self-employed and small employers. Realtors have also urged Congress to reintroduce the Small Business Health Options Plan Act and Health Care Choice Act.

Presently, one in four Realtors lacks health insurance. While all small businesses have found it difficult to find affordable health insurance, Realtors have been even more challenged. Typically, Realtors are self-employed, independent contractors. In most states, the self-employed desiring coverage have to turn to the state's individual insurance market, in which applicants can be turned down for medical reasons with no leverage to garner lower premiums.

In anticipation of the health reform movement, NAR conducted a member survey in 2008. Approximately half (51 percent) of Realtors responding believed that the health care system is not meeting their needs or the needs of their families. Over 90 percent said the U.S. health care system should be reformed. Among Realtors with health insurance coverage, 43 percent purchased an individual market private plan while 27 percent were covered under a spouse's or partner's insurance plan. Realtors without coverage reported that premium cost was the main reason (73 percent) for lack of coverage and 15 percent citied a pre-existing condition as reason for a high premium.

Unforeseen health care costs have led to the loss of a home for some families. The Helping Families Save Their Homes Act of 2009, which went into effect on May 20, may provide modest relief by requiring landlords to provide tenants with 90 days notice prior to being evicted, when their rental home is foreclosed upon. Tenants must be allowed to stay in the property through the end of their lease, with two exceptions:

— The new owner wants to occupy the property as a personal residence, or

— There is no lease, or there is a lease but state law allows the lease to be terminated at any time upon notice.

Even under these exceptions, the tenants must be given 90 days' notice. Notification must be provided by the "immediate successor in interest." In some cases, this notification will come from the bank (when they assume the home), and in other cases it may be the new owner.

A number of states have existing laws protecting tenants. Current New Mexico law requires a 30-day notice. The Helping Families Save Their Homes Act of 2009 will preempt existing state law, except where the state law offers greater protection. The protections of this law apply only to "bona fide" tenants - who have a written contract, where the lease was the result of an arms-length transaction, and the rent is not substantially less than the fair market rent for the property. Under any conditions, tenants may still be evicted if they violate their lease terms. The provisions are scheduled to expire on Dec. 31, 2012.



Donna M. Reynolds is chief executive officer of the Santa Fe Association of Realtors. She holds a bachelor of science degree in business from Virginia Commonwealth University. Contact her at donna@sfar.com and visit the Association at www.sfar.com.