“People who don't vote have no line of credit with people who are elected and thus pose no threat to those who act against our interests."
Marian Wright Edelman
Voting is one of the basic foundations of American democracy. Over the generations, men and women sacrificed life and limb to secure and maintain this precious right. By exercising our right to vote, American citizens can choose our leaders and help set the nation’s agenda. In California, through the
initiative and referendum process, we even make choices about which state and local laws will be enacted.
In California, you must be registered to vote 15 days prior to an election. For this year’s primary -- which is June 6 – you must register prior to the May 22 deadline. Regardless of your political affiliation or your political beliefs, I encourage you to register to vote and to remind your family, friends and REALTOR® colleagues to register.
If you have turned 18 years of age, moved since you last voted, or want to change your political affiliation, you can register by using this link to the California Secretary of State.
http://www.ss.ca.gov/elections/english.pdf
Information on the registration form will advise you if you are eligible to register and how to complete the process. I hope you will join me in exercising one of the most fundamental rights that we have as Americans. As REALTORS® your vote is your voice in the political process.
FEDERAL:
NO-DOWN, 40-YEAR, HIGHER-LIMIT FHA LOANS PROPOSED
NAR supports planned FHA legislation that among other things would eliminate the statutory 3 percent minimum cash investment and downpayment calculation, allowed for extended loan terms from 30 to 40 years, and increase the loan limits from 87 percent to 100 percent of the conforming loan limit in high cost areas and increase the floor from 48 percent to 65 percent of the conforming loan limit.
SAY NO TO FDIC APPROVAL OF WAL-MART BANK
NAR last week urged the FDIC not to approve an application by Wal-Mart for federal deposit insurance for a proposed industrial loan company, a type of bank. NAR President Tom Stevens will also present oral testimony at the FDIC hearing on the application, saying it would set a dangerous precedent for eroding U.S. policy against mixing banking and commerce, among other things. To read a summary of Stevens' upcoming testimony go to: http://www.realtor.org/fedistrk.nsf/Pages/testfdicsummary
PROCEED CAUTIOUSLY ON NONTRADITIONAL MORTGAGE GUIDANCE
NAR in comments last week praised federal banking and credit union regulatory agencies for their proposed guidelines on nontraditional products like interest-only mortgages, but cautioned the agencies against imposing such strict limits that some households would be denied homeownership opportunities. Lenders should be able to make nontraditional mortgages to a wide range of borrowers if they have reasonable, documented basis that borrowers would be able to meet their obligations, NAR says.
To view comments go to: http://www.realtor.org/fedistrk.nsf/files/nontradmort.pdf/$FILE/nontradmort.pdf
STATE:
Congratulations to: Assemblymember Dennis Mountjoy for receiving the Legislative Excellence Award from the California Association of Licensed Investigators. If you have the opportunity, call the office of Assemblymember Mountjoy – 916-319-2059 and extend your congratulations.
Thanks to: Senator Bob Dutton and Senator Nell Soto for their outstanding work on SB 1177. Their votes helped to move the bill out of the Senate Committee. Please call them and express our sincere appreciation for their efforts. Senator Dutton (909) 466-4140. Senator Soto: (909) 984-7741.
AB 2511 (Jones – D-Sacramento) -- Land Use Housing: C.A.R. is co-sponsoring AB 2511 which would: amend the permit streamlining act to apply to subdivisions that have a much smaller percentage of affordable housing, require local governments to report to the state on their housing production in an effort to make sure that they can accommodate their share of the regional housing need for the ensuing 5 years. AB 2511 provides judicial relief for those who challenge local governments that refuse to disclose their plan for meeting the regional housing need to the Department of Housing; and would require the plaintiff to inform the Attorney General should a plaintiff sue the city or county alleging that government is not in compliance with state law. Additionally, the measure will clean-up the no-net-loss housing law by increasing enforcement options and it will rename the "anti-NIMBY" law to the "Housing Accountability Act," while repealing the Granny Flat law (which is not used due to state law on "second" units). Further, this measure will require cities and counties to adopt and publish clear and objective development standards (e.g., zoning code requirements) and prohibits any change in those standards after the building application is completed. Developers should be able to rely on the standards throughout the local government review process and not have the rules arbitrarily changed during the process.
AB 1963 (Leslie – R-Roseville) -- Real Estate Brokers License: The existing law requires most applicants for a brokers license (in addition to exam passage) to demonstrate a valid salesperson's license and two years experience in general real estate. Current law also provides that the commissioner may grant a license to an applicant without experience, who demonstrates graduation from a 4-year college or university. C.A.R. is sponsoring AB 1963 to require the same two years of "general real estate" experience for degree holders that currently applies to all other applicants. This bill will not change the other mechanisms for demonstrating equivalency, such as an individualized petition by a licensee from another state for recognition of his or her experience.
SB 1177 (Hollingsworth – R-Temecula ) -- Density Bonus: In recent years, C.A.R. has sponsored legislation to improve the use of the state's density bonus law by passing legislation to make the law more easily understood and functional. This year, C.A.R. is sponsoring SB 1177 to prohibit local governments from examining the financial records of housing developers seeking a density bonus when they apply for a waiver of or reduction in development standards. Requiring developers to open their records to local government in order to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate, for example, the developers profit, the type of appliances, marketing strategies and design styles that should be included in the development. Additionally, since local governments are NOT financially contributing to the subdivision, they should not have the right to inspect the financial records. The bill was recently amended, by the author, to clarify the intent of how a waiver or concession will be accounted for.
AB 2267 – (Huff – R-Diamond Bar) -- Decedents Estates: Under current law, the successor of a decedent (someone who dies) can collect property due to the decedent without letters of administration or awaiting probate of a will if the estate is valued at less than $100,000. In addition, existing law outlines a process by which an individual can be designated as the successor to a decedent to a particular item of real property valued at no more than $20,000. This bill will increase these limits from $100,000 to $200,000 and $20,000 to $40,000, respectively. These limits have not been adjusted since 1996.
AB 2923 – (Calderon – D-Montebello) – Graffiti: Would make vandals accountable for their crime and penalizes them in a swift manner. Under AB 2923, any person convicted of "tagging" or vandalizing public or private property will be forced to pay restitution to the city or county where the crime was committed through the Department of Motor Vehicles (DMV). The DMV will collect the amount of the damage and clean up costs caused by a minor or a convicted adult at the time they apply for a driver's license or register a vehicle in the state and face up to a maximum of three year suspension of their license or both. A minor's parents can also be charged the amount of the crime and will be taxed at the time of their vehicle registration or license application or renewal. This bill does not add more jail time and lessens the burden of our already overcrowded jail system. It does, however, force these vandals to pay or suffer severe and immediate consequences.
Governors Infrastructure Proposal:
On Wednesday March 15th the Assembly passed the education bond and a levee bond. These proposals are in the Senate awaiting consideration. The Senate, before adjourning, passed a $1 billion appropriation to repair the critical levees in response to the Governor declaring a State of Emergency. While none of the bond measures will be on the June Ballot I am confident an agreement will be reached for the November ballot. Below is a brief summary of what the Assembly passed.
STRATEGIC GROWTH PLAN
Contents of Strategic Growth Plan bonds passed by Assembly and waiting action in Senate:
Education
The education bond proposal authorizes a total of $19.5 Billion in general obligation bonds to be placed on the 2006 ballot election and the 2008 ballot election.
Highlights:
§ Career Technical Education Facilities: $1 Billion in supplemental grants for new construction, and reconfiguration of Career Tech facilities.
§ Charter School Facilities: $1 Billion specifically for charter school facilities. Included in these changes is a requirement that charters and school districts consider existing surplus facilities in accordance with current law and limits the reduction of school district eligibility when new charter facility construction is authorized.
§ Overcrowded Schools: the bond proposal authorizes the State Allocation Board (SAB) to make grants to schools defined as overcrowded based on having a pupil density equal to or greater than 175 percent of the current guidelines. The grants would be available for the purpose of replacing a portion of portable classrooms on such school sites with new hard construction permanent building.
§ Seismic Safety-The bond proposal creates a new seismic safety program with up to $200 Million of bonds made available for those schools identified as being at the highest risk for potential seismic damage.
K-12 Bond: Comprehensive Allocation
Program 2006 2008 Total
New Construction $1.9 billion $3 billion $4.9 billion
Modernization $3.3 billion $1.2 billion $4.5 billion
Career Technical $500 million $500 million $1 billion
Charter Schools $500 million $500 million $1 billion
Overcrowded Portables $1 billion $1 billion $2 billion
Small Schools $200 million* $200 million* $400 million*
Seismic Safety $200 million* 0 $200 million*
Green Schools $100 million 0 $100 million
Joint Use Facilities $29 million 0 $29 million
Total ($ in billions) $7.329 $6.2 billion $13.529 billion
*amounts for small schools and seismic safety are not added to totals, but are set-aside within the new construction and modernization amounts.
Higher Education Bond Allocation
§ 2006 Higher education- $3.087 billion
o $1.580 billion for UC and CSU
o $1.5 billion for community colleges
§ 2008 Higher education:- $2.882 billion
o $1.380 billion for UC and CSU
o $1.5 billion for community colleges and community college districts which could provide potential savings for the districts.
Flood Control
§ $4.15 Billion for flood control to repair and maintain levees and improve the flood control systems in the state, including:
§ At least $1 Billion - Levee evaluation and repair.
§ At least $1 Billion - Flood control system improvements. funds to reach a goal of 200 year flood protection for urban areas.
§ At least $400 Million - Delta levee subventions and other projects. Funds in this section can be used for Special Flood Control Projects in the Delta as well as the Delta Levee Maintenance Subventions Program.
§ At least $700 Million - Flood Control Subventions.
Pay the non-federal cost of flood control projects outside the State Plan of Flood Control. Currently, the state owes approximately $160 million to projects already underway.
§ At least $300 Million - Flood protection corridor and bypasses.
For the creation of new levees and the construction and preservation of setback levees and flood corridors and bypasses.
§ At least $90 Million - Flood plain mapping.
To complete flood hazard maps and alluvial fan floodplain mapping necessary to make proper flood infrastructure investments.
§ At least $500 Million - Storm water flood management.
DWR can give grants to local entities to cost share (50/50) projects to manage storm water runoff. Projects must be consistent with an integrated regional water management plan. Projects in the State Plan of Flood Control are not eligible for these funds.
REGION
The California Building Industry Association released their 2006 Homeownership Study. The study shows that California ranks 49th out of 50 states in percent of population that owns a home. The report indicates that more than 1.6 million Californians must become homeowners just to reach the national average of 70%.
LOS ANGELES COUNTY:
The Los Angeles County Board of Supervisors is proposing to create full-service shelters for the homeless in El Monte, West Covina/Irwindale and the Glendale/Covina areas. The county plan would expand five of the 16 existing drop-in centers into “stablilization centers” which would provide counseling, employment information and shelter for up to 30 days. County officials cite the need for homeless facilities in suburban areas. Local officials have said that they do not want their communities burdened with the homeless. Homeless advocates cite these facilities are going to service a population which is already in the community. A recent study by a Los Angeles County blue-ribbon panel found that of the 88,000 homeless people on county streets, 9,254 are in the San Gabriel Valley. The panel has also called for at least 11,500 units of housing for the homeless, with an eventual goal of 50,000 units throughout the county.
LOCAL
AZUSA:
The Council has approved Watt Commercial Properties as the master developer for the Downtown North area between Foothill Blvd and Ninth Street, bordered by San Gabriel and Soldano Avenues. The Santa Monica based developer will work on city owned properties and encourage partnership with private-property owners on a voluntary basis. The goal is to encourage a transit-oriented development of retail, residential and mixed use in the eight block area.
BASSETT:
The former 57-acre Woodland Farms, along the east side of the San Gabriel River and north of San Jose Creek is the subject of a planning workshop. The former duck farm was purchased for public use in 2001 and sold to the Watershed Conservation Authority in December 2004 for $ 4 million. The park has 2 miles of river frontage and a variety of aquatic birds can be found along portions of the river. Planners hope that the public using the park will provide input on the future direction of the facility.
COVINA:
Voters will decide in June whether to approve a $66 million bond that would continue to modernize schools in the Covina-Valley Unified School District. The measure which needs a 55% approval level from the voters. If passed homeowners would pay about $48 annually per $100,000 of their home’s assessed valuation for 30 years. This bond combined with the $50 million measure “K” passed in 2000 would generate an annual tax of $82 per $100,000 in assessed value per homeowner. The money would be used to continue modernization and maintenance projects.
GLENDORA:
The City will sell land to Toyota of Glendora but will not award the dealer a tax rebate which would have forgiven the owners up to $ 5 million over the next 10 years. Toyota of Glendora will buy the parcel for $520,000 contingent on conceding a right-of-way to the City. The right-of-way is valued at $334,000. Appraised at $854,000 the parcel is located just south of the Foothill – 210 Freeway at North Lone Hill Avenue. The dealership will build a four-story building including a showroom, body shop and a parking structure on the 1.3 acre parcel. Glendora receives about 70% of its sales tax revenues from auto dealerships. Proceeds from the sale will be used for a proposed Gold Line station on Glendora Avenue just north of Route 66.
The city has also received a draft proposal for 275 homes on Glendora’s 100-acre Monrovia Nursery site. Eighty homes are planned on about half-acre lots and 195 homes on smaller lots in the southern portion of the property. The larger homes will be located in the north, west and central area of the site, which is south of Sierra Madre Avenue between Barranca and Citrus Avenues. At least of the proposed 80 large homes will be one-story, the remainder will be two-story. All new homes adjacent to existing homes will be one-story. The smaller units on 28 acres along the proposed Gold Line light-rail extension, are slated as single-family detached homes to be designates as “active senior living”.
ONTARIO:
Several business and property owners along the east side of Euclid Avenue are contesting the city’s eminent domain proceedings, claiming that the prices they were offered for their properties were far below market value, others claim that they are not able to continue in business as they cannot find a location which is suitable and at a similar rent. The plan is to create an urban village along Euclid from Holt Blvd north to “D” Street and east to Sultana Avenue. The first buildings in the project to be completed will be apartments and condominiums on Holt Blvd between Euclid and Sultana. Other business owners in the area are citing a downturn in customers due to the construction.
POMONA:
Pomona’s Deputy City Manager has resigned to take a position with the city of South Pasadena. Lilian Myers has served as Deputy City Manager since June of 2003 and has worked for Pomona since 2000. City officials have said that they will name her replacement sometime before mid-summer.
UPLAND:
County officials and the developers of the “Colonies” project were still in mediation in an attempt to resolve the four year legal battle over the housing development. The developers and the County of San Bernardino are litigating over the financial responsibility of a 67-acre flood control facility on the Colonies project which is located in northeast Upland.
WEST COVINA:
The City Council has taken the initial steps to eliminate group homes from West Covina. The Council supported an ordinance which gives the city the power to keep them out of business. In a 4-0 vote the Council voted to send the ordinance which would require homeowners renting out more than two rooms to obtain a conditional-use-permit, to the Planning Commission for review. It will come back to the Council for final adoption. The ordinance comes after neighbors of a home for troubled boys complained about problems allegedly caused by the residents of the home. The home which is located on Loma Vista Street houses six boys ages 8 through 17. Administrators for the home say the problems have been exaggerated.