The Washington Report

The National Association of REALTORS® (NAR), joined by the REALTORS® Land Institute and a coalition of industry partners, filed an amicus brief supporting a petition to the U.S. Supreme Court brought by California property owners. NAR is asking the Court to address what it views as a concerning erosion of constitutional protections governing permit conditions and land use. 

The case centers on brothers Arron and Arthur Benedetti, who inherited agricultural land in Marin County, California, from their father, a former turkey farmer. The brothers are plumbers, not farmers, and want to split the property so Arthur can build a single-family home while Arron remains in the existing family residence. That request is consistent with the County’s own zoning rules, which expressly permit single-family homes on the agricultural land, including homes for property owners and their families. 

However, the County refuses to issue a permit unless the brothers agree to a permanent restriction requiring them and all future owners to actively engage in commercial farming. This would effectively force the brothers to become farmers or lease their land for commercial agricultural use. 

The brothers sued, arguing that the condition violates their constitutional rights. Lower courts disagreed, finding the rule reasonable and concluding that the County can impose it to help preserve agriculture. 

The brothers and NAR argue that these decisions ignore long-standing Supreme Court precedent that protects property owners from being required to give up unrelated rights, such as being forced into a profession, as a condition of using their land in ways already allowed by law. 

After California’s highest court declined to review the case, the brothers asked the U.S. Supreme Court to step in. Without intervention, NAR warns the decision could have nationwide consequences by allowing local governments to impose broad conditions on property owners that go far beyond the direct impact of their projects, even when the proposed use is already permitted. 

NAR’s legal advocacy efforts to support private property rights remain a priority. NAR will continue to monitor any developments in this case and provide updates accordingly. 

The National Association of REALTORS® submitted comments on June 1 expressing support for the Rural Housing Service's proposed rule that would allow the Single Family Housing Guaranteed Loan Program to finance properties with income-producing accessory dwelling units (ADUs) and home-based business features.

Under current program rules, rural borrowers are barred from using the Guaranteed Loan Program to purchase or improve properties that have previously generated rental income from an ADU, even if the borrower has no intention of renting the unit. NAR's comments noted that this restriction is an unnecessary barrier to homeownership in rural communities already facing acute housing shortages. NAR research shows that between 2014 and 2024, the number of rural households grew by nearly 20 percent while the rural housing stock grew by just over 11 percent, contributing to rising prices and declining vacancy rates across rural America.

NAR's comments highlighted ADUs as a practical, lower-cost tool for expanding housing supply in communities where land constraints and construction costs make traditional development difficult. Removing the prohibition would also support more sustainable homeownership by enabling rental income and multigenerational living arrangements.

NAR also expressed support for the proposed clarification that properties with design features accommodating home-based business operations remain eligible for the program, noting that regulatory ambiguity on this point has created unnecessary uncertainty for lenders and borrowers.

The U.S. Department of Veterans Affairs (VA) Loan Guaranty Service (LGY) has launched a new webpage consolidating VA home loan program resources for veterans, veteran service organizations (VSOs), and real estate industry partners. The page hosts a monthly webinar series and provides access to a recorded VA home loan program overview, registration links for upcoming sessions, and additional guidance materials.

Running through December 2026, sessions are held on the first Thursday of each month at 11:00 a.m. ET. Each one-hour, instructor-led webinar covers the history and structure of the VA Home Loan Guaranty program and highlights key components, such as specially adapted housing programs. Registration is required and available on the webpage.

VA Home Loan Overview Webinar