"Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it's the only thing that ever has."
Margaret Mead
This quote is one which best encapsulates the REALTOR® philosophy when we deal with legislation. With the involvement of each of our REALTOR® members, we can change the outlook for private property rights and professionalism. Each REALTOR® member needs to be an advocate for their profession and in doing so will help bring the changes which will protect their industry.
FEDERAL:
The National Association of REALTORS® is aggressively pushing the following issues during the last session of the 109th Congress. We need your help in communicating the REALTOR® position to the House of Representatives and the U.S. Senate.
Banks in Real Estate/OCC Rulings Expanding Bank Powers
NAR strongly supports the separation of banking and commerce. NAR is urging Congress to pass legislation (H.R.111/S.98) permanently barring banks from engaging in real estate brokerage. Additionally, NAR urges Congress to rein in federal regulators who are eroding our national policy against mixing banking and commerce, such as the Office of the Comptroller of the Currency that recently expanded the authority of national banks to develop real estate.
Tax Reform
NAR embraces no single tax reform model such as a flat tax or a retail sales tax. Rather, NAR acknowledges the complexity of the tax system and seeks to assure that tax reforms support the goals of homeownership and the freedom to buy, maintain and sell real estate. NAR urges Congress to protect and preserve the mortgage interest deduction and homeownership/investment tax benefits from any efforts reforming the tax system.
Natural Disaster Insurance
NAR strongly supports the promotion of available and affordable homeowners’ insurance in disaster-prone areas. NAR is urging House members to hold hearings on natural disaster insurance legislation including H.R.4366, a bill introduced by Reps. Ginny Brown-Waite (R-FL) and Clay Shaw (R-FL). NAR is urging Senate members to introduce, cosponsor , and hold hearings on natural disaster insurance legislation.
FHA Single-Family Mortgage Program
NAR strongly supports programs administered by the Federal Housing Administration as they have a proven record of success in helping low-, moderate-, and middle-income families achieve the dream of homeownership. NAR is urging House members to cosponsor H.R.5121, legislation introduced by Reps. Bob Ney (R-OH), Maxine Waters (D-CA), Gary Miller (R-CA) and Patrick Tiberi (R-OH) modernizing the FHA program. NAR is urging Senate members to introduce and cosponsor companion legislation.
Flood Insurance
NAR strongly supports the availability and affordability of flood insurance for homeowners who live in a flood zone. NAR is urging the House to pass H.R.4973, legislation introduced by Rep. Richard Baker (R-LA). NAR is urging the Senate to introduce and cosponsor companion legislation.
STATE:
History was made earlier this month when the Legislature passed a $37.3 billion infrastructure bond package, which will go before the voters in November. This bond package idea was first introduced by the Governor in his State of the State when he laid out a Strategic Growth Plan to address California’s ailing infrastructure system. Since then, the Legislature held numerous committee hearings, negotiations, and discussions on the needs of California’s infrastructure system and even voted down a prior package. In the wee hours of the morning on May 5, an agreement was reached between the legislative leaders. If approved by the voters, the bonds will include over $19 billion for transportation projects, over $10 billion to build and modernize schools, $4 billion to fix and upgrade the state levee system, and $2.8 billion for affordable housing programs.
On Friday, May 12, 2006 the Governor released the May Revision of the 2006-07 budget. Since January, California’s economy has grown and as a result, there is an increase in projected state revenues. The two-year increase is projected at $7.5 billion. Due to the volatility of these revenues, much of this increase will be used for debt reduction and significantly increasing the State’s reserves. The budget proposes to fully fund education, provide funding to better prepare for public health emergencies, enhance public safety services, and address California’s nursing shortage. The Budget Committees in both Houses will begin discussions of the May Revision on May 15. To view a copy of the revised budget please visit www.ebudget.ca.gov.
Minimum Wage Increase:
Legislation that would give 1.4 million minimum wage earners a $1-an-hour pay raise and then tie their wages to increases in inflation was approved by the Assembly. The 43-30 vote sent the measure by Assemblywoman Sally Lieber, D-Santa Clara, to the Senate, which planned to vote on an identical increase by Sen. Gil Cedillo, D-Los Angeles. Both bills would raise the minimum wage from $6.75 to $7.75 an hour in two 50-cent steps the first on July 1, 2007 and the second on July 1, 2008. They would then require annual cost-of-living adjustments in the wage each subsequent Jan. 1 to keep up with inflation.
Schwarzenegger, who vetoed two previous attempts to raise the wage, now supports the $1 increase but opposes the automatic annual inflation adjustments. He's asked the dormant state Industrial Welfare Commission to approve the $1 an hour raise without cost-of-living increases.
Hands Free Cell Phone Required for Drivers:
Motorists would have to use handsfree devices if they want to talk on cell phones while they are driving. The bill was approved on a 21-14 vote now goes to the Assembly, where it is expected to pass. If signed by the Governor the law would take effect on July 1, 2008, with a $20.00 fine for the first violation and a $50.00 fine for repeat violations. New York, New Jersey and Washington DC., have similar laws.
SB 1177 (Hollingsworth) Density Bonus - In recent years, C.A.R. has sponsored legislation to improve the use of the state’s density bonus law by making the law more easy to understand 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 to prove that a waiver or modification of development standards is necessary gives local governments the opportunity to dictate, for example, the developer’s profit, the type of appliances, marketing strategies and design styles that they believe 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 these financial records.
Status: Assembly Housing and Community Development Committee
Position: Oppose
AB 1169 (Torrico) 60 Day Notice to Terminate Tenancy
This measure was amended in February of 2006 while in the Senate, and contains similar provisions to SB 51 (see below) that was defeated on the Assembly Floor by C.A.R. last year. The law that required landlords to give tenants a 60 days notice prior to the termination of tenancy if the tenant had resided in the dwelling for more than one yea sunseted, thereby reinstating the 30-days notice for termination of all tenancies on January 1, 2006. AB 1169 would reinstate the 60-day notice until January 1, 2010. C.A.R. opposes the measure because landlords need the ability to terminate tenancies on tenants causing problems as soon as practicably possible in order to preserve the “quiet enjoyment” of the premises to the benefit of all tenants.
Status: Senate Judiciary Committee
Position: Oppose
LOCAL
CHINO HILLS:
Aerojet General is beginning the next phase of the cleanup of its 800-acre facility. Waste materials will be transported off-site in covered trucks. The facility sits at the end of Woodview Road in the hills overlooking the city was used by Aerojet from 1954 until closure in 1995. During that time Aerojet tested and manufactured organic chemical explosives and munitions. Aerojet has been cleaning up the site since 1999. Aerojet said that they are looking for the highest level of clean-up as well as the desire to address the concerns of residents.
CLAREMONT:
The Council approved an ordinance allowing the sale of alcoholic beverages at establishments where it’s the primary purpose of the business, although the business must offer snacks. The ordinance was a result of a change to the Village Expansion specific plan. While alcoholic beverages can be served, snacks or appetizers will also be required, but the responsibility falls on the patron to order them. Any business such as hotels, live performance venues and wine merchants who would like to lease space in the area bound roughly between First and Second streets off Indian Hill Blvd would still need approval for a conditional use permit.
Claremont homeowners may be asked to pay as much as $100 per year to support the city in purchasing Johnson’s Pasture, a 1086 acre hillside north of Claraboya and Mountain Avenue. The City Council voted 3-2, with Corey Calacay and Jackie McHenry dissenting, to form a Park Enhancement Assessment District to fund the acquisition of the nearly $12 million hillside. Residents would need to pay a maximum of $ 100 per year for at least 35 years. Commercial property will be assessed at $300 per year. More than 70 percent of the money will go toward the cost of the pasture with the rest being used for improvements and enhancements to the city’s 20 parks. Ballots will be mailed to property owners in mid-June and will be counted on July 25th.
GLENDORA:
The Citizens Committee to Protect Glendora, a grass-roots group of Glendora residents has accused the Texas based NJD Ltd of using crooked practices in gathering 6,500 signatures now shipped off toe the Registrar/Recorder-County Clerk’s Office for verification. NJD plans to give 400 hillside acres to the Glendora Country Club n exchange for the country club’s property. NJD would then build a golf course on the hillside property and put 338 homes on its country club site. Country Club members have approved the proposal. NJD representatives have said that if the proposal is not approved by Glendora residents, they will build 100 homes on their hillside property, which is half in Glendora and half in San Dimas. An investigation into the situation may be pursued.
The Council voted to forgive Toyota of Glendora $ 5 million in sales tax revenues. In March the Council voted to sell property off of Lone Hill Avenue, just below the Foothill Freeway for $520,000 to the dealerships owners, Seidner-Miller Inc, for a planned expansion, although the dealer was not the highest bidder. The land was appraised at $855,000, but Seidner-Miller conceded a right-of-way to the city valued at $334,000. At the time the Council would not give the business owners a tax rebate that would have forgiven them up to $7.5 million in sales tax revenues over the next decade. The newly approved agreement gave a $5 million tax-rebate and includes a guarantee by the owners to forego the rebate if they do not reach their sales targets.
HACIENDA HEIGHTS:
The Hacienda La Puente Unified School District board slashed $5.7 million from its budget late Thursday, deciding not to fill six high school teacher vacancies and made cuts to various departments. Not filling the teacher positions will save $336,000. The board also cut $225,000 from the school police department, including one position. The cuts were due to declining enrollment, according to school board members, who said at least $5.5 million would have to be slashed from its $117 million budget.
INDUSTRY:
With about 29 staff members and paid consultants, the City of Industry has outgrown its 8,000 square foot City Hall. Rather than spending about $40 million for a new complex, the Council will buy and move into a building about 60 yards away. The building at 150 N. Hacienda Blvd is owned by the estate of former Industry consultant James M. Stafford and was formerly a training center for Bank of America. The old City Hall located at 15651 E. Stafford St, which was built in 1976 will be the new home for the Industry Manufacturers Council. The old Industry Manufacturers Council building will be sold to for use by the L.A. County Sheriff.
ONTARIO:
The City has finalized a deal with a Silicon Valley Company to provide Wi-Fi service throughout Ontario’s residential areas. Under the agreement, Mountain View based MetroFi Inc. will install wireless network equipment on street lights around Ontario. Once the project is complete anyone whose computer can access the signal will be able to use it to go on line. In exchange for the free service the top 90 pixels of the browsers page will be an advertisement.
The Guasti Villa, one of the region’s oldest historic properties, has been sold for redevelopment. The 49 acre site will soon be home to a hotel, commercial and retail as well as residential housing. The San Diego based Oliver-McMillan firm has build several urban loft projects in downtown San Diego, as well as the redevelopment of a former naval base on the outskirts of Chicago.