Government Policy Threatens Housing Affordability and Small Business Freedom

On Friday, June 11, 2021, Kim Monson examines how government policies at every level threaten housing affordability and small business freedom. Award-winning REMAX Alliance realtor and National Association of Realtors board member Karen Levine joins Kim in studio to analyze Colorado’s housing crisis, while Castlegate Knife and Tool owner and veteran Hal Van Hercke sounds the alarm on legislative overreach affecting small businesses. NAR Government Affairs director Lee Brown calls in from Charlotte to discuss nationwide housing challenges and federal zoning threats.

Memorial Day Service and Small Business Under Siege

Start listening at 8:52 – Hour 1

Hal Van Hercke recounts his Memorial Day experience playing taps at Fort Logan National Cemetery, where he personally honored 172 to 175 families and gravesites over the three-day weekend. The veteran and small business owner offers a 10 percent discount to veterans, first responders, and active military at his Sedalia store, Castlegate Knife and Tool.

Van Hercke pivots to Colorado’s just-ended legislative session, describing the overwhelming volume of government Democrats sought to impose on citizens. With over 600 bills introduced at the state level alone, he warns that every new law limits freedom, creates confusion, and costs money to enforce. The session targeted property taxes, sales taxes, small business taxes, and gun rights, with one bill creating a state propaganda office for gun control advocacy.

“I honestly do feel like our veterans, our first responders, prior service military, et cetera, current active military, are a unique class of people that are willing to put their lives on the line to keep our society free and safe on a daily basis.”

Hal Van Hercke, Owner, Castlegate Knife and Tool

Housing Supply Crisis and the Velocity of Homeownership

Start listening at 1:24 – Hour 1

Karen Levine explains how Colorado’s construction defect legislation, enacted over a decade ago, decimated the condo supply by making insurance prohibitively expensive for developers. The law opened the door to frivolous lawsuits that drove builders from the market entirely. Kim introduces the concept of “velocity of housing,” arguing that limited supply prevents young families from climbing the property ladder from condos to single-family homes.

Levine reports that average home prices in metro Denver have hit nearly $700,000, making affordability a critical challenge. She warns that while Colorado sold more houses in May 2021 than May 2020, the tight market creates opportunities for unethical actors to take advantage of inexperienced buyers and sellers.

“So again, be careful who you vote for, you know, be mindful, you know, be knowledgeable about who you’re voting for. And is that where you want your community to go?”

Karen Levine, Award-Winning Realtor, REMAX Alliance

Denver’s Group Living Ordinance and Investment Property Registry

Start listening at 19:15 – Hour 1

Kim and Karen examine Denver’s controversial group living ordinance, which allows up to five unrelated people to live in a single-family home, plus their family members. The 11-2 city council vote prompted a citizen-led repeal effort for the November ballot. Levine frames the debate as a tension between private property rights of landlords and neighborhood concerns about overcrowding.

Denver’s new investment property registry also draws fire. Levine questions why government needs to know what property owners do with their holdings, noting the registry will impose inspections, fees, and ultimately higher rents on tenants. She estimates public policy adds 30 to 45 percent to the cost of bringing a house out of the ground nationwide.

National Housing Crisis and Federal Zoning Threats

Start listening at 29:13 – Hour 1

Lee Brown describes how hedge funds like BlackRock have been buying thousands of houses since the last recession, outbidding neighbors with unlimited capital and converting homes to rentals. While elected officials see only property tax revenue, Brown argues that owner-occupied neighborhoods drive civic engagement, school involvement, and long-term property care that renters rarely provide.

Brown warns against bias toward urban 15-minute neighborhoods, noting many Americans prefer exurban living with land and privacy. She lives on 10 acres with a private water source and whole-house generator, precisely to avoid government dependency. The COVID era accelerated staff-driven decisions in professional associations, requiring volunteer members to reassert balance.

“It’s on you, the local citizen, to get that under control, make better decisions locally and at the state, and to make sure that your people speaking your voice have your best interest at heart.”

Lee Brown, Realtor and NAR Board Director, Charlotte, NC

1031 Exchanges and the Fight for Property Rights

Start listening at 45:03 – Hour 1

Karen and Lee discuss the National Association of Realtors’ fight to protect 1031 tax-deferred exchanges, which allow property investors to defer capital gains by reinvesting proceeds into like-kind properties. Brown explains that 80 percent of 1031 users are mom-and-pop investors with fewer than eight units building retirement income through real estate, not wealthy speculators.

Brown notes that Washington’s spending appetite has made 1031 exchanges a target, though the provision is a tax deferral rather than a loophole. Eliminating it would freeze the market as investors refuse to sell, further constricting already scarce supply. Brown also warns about proposed capital gains rate increases that are driving some investors to sell now rather than risk losing returns to higher taxes.