What is the use of living, if it be not to strive for noble causes and to make this muddled world a better place for those who will live in it after we are gone?

WINSTON CHURCHILL, speech, October 10, 1908

As REALTORS® your involvement in the political and legislative process is what will make the profession of organized Real Estate a better place in the future. The advocacy of legislation, the advocacy of housing and the advocacy of private property rights are central to the REALTOR® way of doing business. Both today and tomorrow your chosen field of endeavor needs your involvement.

Legislation Reforming the Flood Insurance Program Passes the House

Legislation that reforms the National Flood Insurance Program (NFIP) passed the House of Representatives on Tuesday, June 28. The bill - H.R. 4973, the Flood Insurance Reform and Modernization Act, sponsored by Rep. Richard Baker (R-LA) and Rep. Barney Frank (D-MA), will enhance the program's financial viability and accountability. The legislative reforms will enable the program to pay all legitimate claims placed on the program by policyholders as a result of the 2005 hurricanes, increase emphasis on accurate and modernized floodplain maps, increase coverage limits to $335,000 for residential structures, and requires notice of availability of flood insurance and escrow for flood insurance in RESPA Good Faith Estimates. Although NAR supported the legislation in general, one provision that does give NAR members reason for concern phases out the current premium subsidies on pre-FIRM vacation homes, second homes, businesses and investment properties. The bill was also amended on the floor by Rep. Scott Garrett (R-NJ) to phase out subsidies for pre-FIRM primary residences. In a letter to the full House, NAR expressed grave concern regarding these two provisions and the economic ramifications that could result in communities that rely on vacation and second-home housing markets, as well as the impact of the Garrett amendment on low-income homeowners and housing affordability. The Senate began considering a similar bill following the July 4th recess.

FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 5.25 PERCENT
The Federal Reserve's Open Market Committee last week raised the target for the federal funds rate by 25 basis points to 5.25 percent, marking the 17th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other. The Fed cited elevated inflation and high energy costs as factors for the increase.

"Recent indicators suggest that economic growth is moderating from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices," the Fed said in a prepared statement.

The Fed also indicated the possibility of future interest rate increases, stating "Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information."

STATE:

SB 1330 – (Dunn) Attorney’s Fees.

SB 1330 was heard on Wednesday, June 27, 2006. The Chair of the Assembly Housing and Community Development Committee held the bill in Committee, thus the measure failed passage. However, at some point in the future, the bill could be voted on again in the same committee.

CAR is co-sponsoring SB 1330 to permit homebuilders and other interested parties (e.g., homeowners) to recover attorney's fees should they prevail in their challenge of a local government's compliance with the housing element law. C.A.R. was successful in amending the state's "anti-NIMBY" law two years ago. That measure allows the successful plaintiff (i.e., the developer) until December 31, 2006, to recover attorney fees when he or she prevails in court by demonstrating to the court that a local government arbitrarily denied the plaintiff's residential development that was in compliance with the local government's development standards. SB 1330 would have extended the sunset date to December 31, 2008.

AB 1963 (Leslie) Real Estate Brokers License

Passed the Senate Appropriations Committee on June 26 pursuant to Senate Rule 28.8 which allows a measure to pass the fiscal committee without hearing because it is deemed to have a minimal fiscal impact to the state. Existing law requires most applicants for a brokers license, in addition to exam passage, to demonstrate a valid salespersons license and two years experience in general real estate. Current law also provides that the Real Estate Commissioner may grant a license to an applicant without real estate experience who has a degree 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 these “degree brokers.” 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.

LOCAL

AZUSA:

The Rosedale housing development is in jeopardy of shutting down for nine months, unless the City Council approves a grading plan. Azusa Land Partners is building the 1,250 home neighborhood on 520 acres below the Angeles National Forest. Company officials have told the City of Azusa that 130,000 cubic yards of dirt must be moved from the former Monrovia Nursery property. Under the original specific plan approved by the voters in May 2004, no dirt was to be moved from the site. Azusa Land Partners cite that due to heavy water saturation from the nursery operations, the ground was well compacted and half of the dirt did not disappear as anticipated. Azusa officials have said that they won’t approve the plans until the supplemental EIR is completed.

CHINO HILLS:

The City approved the 2006-2007 budget, which includes the creation of several new city jobs. The budget will bring in revenue of $27.7 million and add several positions to the Police Department, including two full time deputies, a full-time sergeant and a sheriff’s service specialist. The City will also begin construction of a civic center to be located adjacent to The Shoppes at Chino Hills, near Grand Avenue and Peyton Drive.

CLAREMONT:

The Los Angeles County Board of Supervisors has authorized the purchase of 80 acres along the Marshall Canyon Regional Park and Golf Course. The property will cost the county $2.45 million and will be funded by a grant from the state’s Wildlife Conservation Board and supplemented by money through the Proposition A Excess Funds, which helps to fund park, recreation and open space projects. The 80 acres is part of the Marshall Canyon Conservation corridor, located along the base of the San Gabriel Mountains. If the purchase is completed, it will create a 5 mile corridor of preserved open space between San Dimas Canyon on the west and Mount Baldy Road on the east.

DIAMOND BAR:

Supporters of building a new library in Diamond Bar want the City Council to place the issue on the November ballot, saying the facility has enough backing to pass. In 2005, the Diamond Bar City Council agreed to build a new community center and library. While the Center was completed, construction of the $13.5 million library was postponed because the city was unsuccessful at obtaining a library grant. If approved, residents would be asked to pay about $95 per year for 30 years and $28 each year after that for maintenance and operations.

EL MONTE:

James Mussenden has been hired as the new City Manager. Mussenden, took over on July 1, had served for the last two years as the Assistant City Manager, replaces Juan Mireles who retired. Mussenden has been in city government for more than 35 years, has spent the last 24 with the City of El Monte.

GLENDORA:

Voters will be asked on October 3^rd whether a developer can swap land with the Glendora Country Club, a move that would pave the way for development of a new country club in the hills and 338 homes on the existing country club. NJD Ltd., which owns the hillside land wants to exchange that land with the Glendora Country Club in order to build homes on the country club property in the northeast part of the city. If approved by the voters the new country club would be owned and operated by the Glendora Country Club, with approximately half of the new facility located in the City of San Dimas.

IRWINDALE:

Bradley Baxter has been appointed City Manager, replacing Steve Blancarte who retired in September. Baxter’s three year contract calls for an annual salary of $145,000 per year. He is in an “at will” employee and can be fired without cause by a majority of the Council. The Council approved the contract on a 3-2 vote, with Councilmembers Mark Breceda and Joseph Tapia dissenting.

LA PUENTE:

A 1.1 acre expansion of Ed Butts Ford will soon take place. The RDA purchased a 1.1 acre parcel for $1.7 million and demolished the strip mall located on the parcel to make way for expansion of the dealership. Ed Butts Ford has signed a 15 year lease with the RDA for the location. Plans to expand the 5.3 acre property have been investigated for more than 5 years. The dealership is the largest sales tax generator in La Puente.

LA VERNE:

Downtown parking shortages may be alleviated with the approval of some changes. The Council shortened all two hour parking spaces to 90 minutes in various locations; converted “no limit” parking spaces, including those in a lot east of D Street, to 90-minute spaces; and re-striped some spaces to 9 feet from 14 feet. Local merchants and residents have complained about a lack of parking spaces in the downtown area and city officials hope that the changes will create a more positive parking environment in and around the downtown area.

ONTARIO:

The City is considering whether land which is currently occupied by the Whispering Lakes Golf Course would be put to better use as a park with soccer fields and baseball diamonds. Although the Course is operated by Donovan Bros and Orange County based firm that handles several golfing facilities throughout California, the land and facility is owned by the City of Ontario. Whispering Lakes is surrounded by neighborhood residential housing and local residents do not want a change in the land use, citing that they purchased their home to be near a golf course.

POMONA:

The City Council voted unanimously this week to give city administrators authorization to buy a four-building complex in southern Pomona. The goal of the purchase is to turn the facility into the new headquarters for the Pomona Police Department. The property located on the southeast corner of Garey Avenue and Olive Street has a purchase price of $7 million including $20,000 in closing costs. The Council also appointed Linda Lowry as Assistant City Manager. Lowry was formerly the City Manager for the City of Diamond Bar, and assumed her new role with Pomona on July 20^th.

A Corona based company has been awarded a contract to make improvements to Old Pomona Road. All American Asphalt received the $240,749 contract to repave Old Pomona Road from the 71 Freeway to Village Loop Road. The improvements will be paid with the use of gas tax funds and money from the sale of bonds.

RANCHO CUCAMONGA

The City Council has given approval for the construction of 206 condominiums in the Red Hill area. The site, which spans 21 acres north of Foothill Blvd, consists of slopes 30 percent or greater and developing residential properties there would require the city to amend its General Plan and development code. The Council voted 3-2 to change the General Plan, giving Cameo Homes the go-ahead to a project which has been 3 years in the making. The 206 units are estimated to bring 585 new residents to Rancho Cucamonga. Councilmembers Diane Williams and Rex Gutierrez opposed the development. Williams cited that she believed 9.8 units per acre as too dense.

UPLAND:

The CIM group has been selected to redevelop the downtown core of the City. The goal of the redevelopment is to create a 24 hour lifestyle for the city center, with restaurants, shops, businesses and residential units. The CIM group plans to tie in to the Metrolink station and desires of commuters and residents for more pedestrian friendly developments. Existing businesses and new business would be incorporated into the redevelopment plan. Late Fall of 2006 is when the development of sites is set to begin. The City also approved the 2006-2007 budget. The $120 million balanced budget will include $35 million for roadwork at San Antonio from 13^th Street to 19^th Street and at Campus Avenue; San Antonio Park improvements and water and sewer system infrastructure.

WEST COVINA:

The City is examining funding options for the Big League Dreams Sports complex. Big League Dreams is a pay-to-play sports park that has Major League Baseball replica fields and other recreation activities, and was approved by the Council in 2001. The current projected cost of construction is about $38.7 million - $21 million for the park and the rest for infrastructure. A developer who wanted to build six homes on a lot that now holds two was turned down by the Planning Commission. Developer Thanh Kevin Lam who had asked for a variance which would allow him to build six homes on his 1.41 acre lot on North Orange Avenue was opposed by residents who opposed the proposal citing issues of too much density and impacts to their quality of life.