“There’s nothing sadder in this world than to awake Christmas morning and not be a child”.
Erma Bombeck – American Humorist
1927-1996
FEDERAL:
Although the new Congressional session – will not convene until early January 2007, N.A.R. has an advocacy agenda planned for the new session. These issues may change as the priorities and disposition of the new Congress takes form. Here are a few:
Affordable Housing Tax Credit
NAR supports incentives to increase the supply of affordable single family housing. NAR is urging Congress to enact legislation providing a tax incentive in the form of a tax credit to developers and/or investors to enhance the supply of affordable housing that would be available for purchase.
Banks in Real Estate
NAR opposes the entry of large national financial conglomerates in real estate brokerage, leasing and property management. NAR is urging Congress to enact H.R.111 and S.98, The Community Choice in Real Estate Act, to permanently bar banks from engaging in real estate brokerage, leasing and property management.
Government Sponsored Enterprises Conforming Loan Limits
NAR supports increasing the current loan limits in high cost market areas to make available homeownership opportunities for first-time homebuyers and minority homebuyers. NAR is urging Congress to enact legislation increasing the conforming loan limits in high cost areas to bring equity for American families in these markets.
Improving the Effectiveness of FHA
NAR is a strong supporter of the single- and multi-family programs administered by the Federal Housing Administration (FHA). However, FHA’s market share has diminished considerably threatening its ability to serve its public purposes. NAR is working with the Department of Housing and Urban Development (HUD) to modernize FHA to enhance its effectiveness in today’s mortgage marketplace.
STATE:
AB 1881 (Laird – D-Santa Cruz) – Water Conservation – HOA’s
Existing law, the Davis-Sterling Common Interest Development Act, defines and regulates common interest developments, which include community apartment projects, condominium projects, planned
developments, and stock cooperatives. This bill would provide that the architectural guidelines of a common interest development shall not prohibit or include conditions that have the effect of prohibiting the use of low water-using plants as a group.
AB 2541, (Matthews – D-Stockton) - . Claims against the state.
Existing law requires a state agency that acquires property or services pursuant to a contract with a business to make payment to the person or business on the date required by the contract, and within 45 days of the state agency’s receipt of an undisputed invoice, or be subject to a late
payment penalty. This bill would require a state agency that awards a grant, as defined, to make payment to the person or business that is the recipient of the grant on the date required by the grant, and within 45 days of the state agency’s receipt of an undisputed invoice, or be subject to a late payment penalty.
The bill would make other conforming changes.
AB 790 (Yee D-San Francisco) Real Estate Licensees - Existing law provides for the licensing and regulation of real estate licensees by the Real Estate Commissioner. AB 790 would have required a real estate broker to include in his or her written notification to the DRE of the employment of a real estate salesperson, a specification of the activities that salesperson intends to perform. The measure would have also required individuals applying for a broker, or salesperson, license examination to include, in writing, a specification of the activities the respective licensee intends to perform. Finally, AB 790 would have required all brokers or salespersons that negotiate residential mortgage loans to notify the commissioner, annually in writing. C.A.R. opposed AB 790 because, among other things, it was creating special license endorsement for mortgage brokerage. C.A.R. has historically opposed license specialization, preferring instead the single, versatile license now in place. C.A.R. was able to achieve amendments on January 4th that deleted all offensive language in the bill. The bill now prohibits a person from using certain designations or certifications awarded by any organization of real estate licensees without the authority to do so.
AB 1302 (J. Horton D-Inglewood) Office of Administrative Law Regulations – Existing law regulates the maximum time period that a regulation, amendment, or order of repeal that was adopted as an emergency regulation may be in effect. Current law allows an emergency regulation to be in effect for 120 days, and AB 1302 increases that time period to 180 days. Additionally, AB 1302 authorizes the Office of Administrative Law (OAL) to approve to two re-adoptions of an emergency regulation, which allow the regulation to remain in effect for an additional to 6 months. C.A.R. supported AB 1302 because it clarifies the authority of the OAL to stop administrative agencies from abusing the “emergency” regulation authority.
AB 2977 (Mullin D-San Mateo) Swimming Pool and Spa Safety Act - Existing law, the Swimming Pool Safety Act provides that whenever a construction permit is issued for construction of a new swimming pool at a private residence, the pool be equipped with at least one of 5 specified safety features. The features include a pool enclosure, a safety pool cover, alarms on doors accessing the pool, a self-closing device on doors providing access to the pool, or an additional means of protection that is equal to, or greater than, the other specified devices. This bill revises existing law to provide that when a construction permit is issued for either the construction or remodel of a swimming pool or spa at a residence, the pool or spa must be equipped with at least 2 of 7 drowning prevention safety features. The
approved devices would include the 5 devices previously stated, a removable mesh fence or a swimming pool alarm. This bill takes effect January 1, 2007. In early August 2006, C.A.R. obtained amendments that defined what constitutes a “remodel” of a pool or spa, so that it will not apply at the time of sale.
SOUTHERN CALIFORNIA
In a move which has ramifications and may reverberate through out California, the City of Escondido has voted in an ordinance under which landlords accused of renting to illegal immigrants would be required to provide the city with documentation proving their tenants are legal residents or face fines and possible jail time. The ordinance requires that anyone renting real property must offer proof of U.S. Citizenship or legal residency. The ordinance also permits anyone to report to the City of Escondido a person or property they suspect may be renting to those not legally in the U.S. If the renters are found to be in the country illegally, landlords would be required to remove the tenants within 10 business days, or have their business license suspended, meaning they could not legally collect rent or lease their property. Landlords who repeatedly violate the ban would face misdemeanor charges, which carry penalties of up to $1,000 and/or six months in jail. Legal analysts question whether the ordinance violates California’s Rumford and Unruh Housing laws, HUD and U.S. Fair Housing laws as well as the Equal Protection Clause of the 14th Amendment.
The ordinance will most likely be challenged in Court. REALTORS® are urged to seek legal advice on this matter.
REGIONAL
Los Angeles County
The California Public Utilities Commission has approved a request by Southwest Water Company for an increase of 6.4% and two more increases of 2.9% and 2.6%. The latter will become effective July 2007 and July 2008 respectively. The first rate increase will generate about $3 million a year for system improvements and will boost the average residential bill by $2.40 to $42.40. Southwest Water Company is the parent company of West Covina based Suburban Water Systems. Suburban Water Systems supplies water to a 41 square mile area which includes all or part of Glendora, Covina, West Covina, La Puente, Hacienda Heights, Industry, Whittier, La Mirada, La Habra and Buena Park.
San Bernardino County:
County supervisors are expected to approve a settlement worth more than $100 million to end a long-running dispute with the Colonies Partners LP. The deal will include roughly $88 million in cash and $14 million worth of county-owned land in Rancho Cucamonga to settle lawsuits filed against the county by the Colonies, which contends the county shirked its duty to pay for flood-control improvements on the developer's Upland project. The Colonies case, which has passed through three courts in four years, is centered on the developer's allegation that San Bernardino County's Flood Control District built a storm drain that will divert millions of gallons of tainted water onto the Colonies' property in the event of a major storm, but did not build the 67-acre basin needed to contain the deluge. County attorneys have argued that the developer gave its consent for the project in a 1999 agreement.
Earlier this year, Warner blasted the county in a tentative decision, finding that the county had no rights to Colonies property and had fallen far short of its obligations. In the wake of Warner's decision, Colonies attorneys said they would seek as much as $300 million from the county in a separate damages lawsuit.
The county has filed its own complaint against the city of Upland, Caltrans and San Bernardino Associated Governments seeking payment from those agencies if Colonies prevails in its lawsuit against the county.
The costs of the expected settlement will be borne entirely by the county's Flood Control District, but how the agency will come up with the money is not yet clear. While the district receives around $32 million in property tax revenue countywide, Assistant County Administrator Norm Kanold said in an August interview that the majority of those funds are already devoted to staff salaries and maintaining the county's current facilities. A bond would be the most plausible way for the Flood Control District to pay for most of the $88 million cash component of the settlement, Biane said in an August interview. The county could bond for as much as $77 million, he said, making yearly debt payments of around $4.8 million.
LOCAL
AZUSA:
As part of a plan to update its aging downtown and other pockets of the city, the City Council recently gave its redevelopment agency the authority to use eminent domain on dozens of small businesses. This is part of what may be an eventual plan to buy up and consolidate some of the smaller parcels in order to attract larger businesses and the larger property tax revenue that comes with them. The goal is to create mixed-use development to put housing and shopping within easy reach of a future Gold Line station. In West Azusa, planners are considering ways to create large enough parcels to bring in more “big-box” stores. Many business and parcels owners in the downtown are opposed to the concept of eminent domain fearing a loss of business, and that rental tenants will look for new locations.
CHINO HILLS
After years of dreaming of a new civic center, Chino Hills will see that dream take shape when construction of the $53.9 million Civic Center, starting with the police station, is expected to begin this month. Earlier this year City Council members approved the sale of bonds totaling $55 million to fund construction of the center. The civic center, off Peyton Drive and Grand Avenue, will include a city hall, a sheriff's station, a Chino Valley Independent Fire District headquarters and a library. The 200,000-square-foot civic center is adjacent to the Shoppes at Chino Hills, the high-end retail center being built at Grand and Peyton by developer Opus West.
Chino Hills officials are also planning to celebrate the city's 15th birthday in either December or January. Valerie McClung, community relations manager, said the City Council is considering a small event that will tie in with a city activity, such as the tree-lighting ceremony. Holding a larger event on a separate day is also being considered.
Chino Hills officially became a city on Dec. 1, 1991.
COVINA:
The results of a City Commissioned survey shows voters may support keeping the existing 6 percent Utility Users Tax (UUT), but are staunchly against any increase to the city’s sales tax. The survey by Oakland-based Tramutola LLC showed that slightly more than 50 percent of likely Covina voters would approve keeping the utility tax levied on gas, electric, telephone, cable TV and other utility bills in the city. Fort-two percent of respondents would oppose keeping the tax. The UUT first implemented in 1992 is set to sunset in March 2009 and generates about $5.5 million or 20% of the city’s general fund revenues each year. Without the UUT Covina will be forced to ask voters to renew it at the polls or find other sources of revenue to maintain city services.
GLENDORA:
Voters soundly defeated a ballot initiative which would have allowed more than three hundred homes to be built on the site of the Glendora Country Club. With all precincts reporting, 11,260 voters or 91% of those who went to the polls voted “NO”. 1,171, or 9 percent voted “Yes”. Voter turnout was 44.3 percent. Under the initiative NJD development would have swapped 400 acres of hillside property it owns in Glendora and San Dimas with the Glendora Country Club, which would have gotten an 18 hole championship golf course on the property. City officials are considering purchasing the hillside property from NJD if the price is reasonable. The land would then be set aside as permanent open space.
INDUSTRY:
The City cleared all legal hurdles to begin working on plans for thousands of acres of undeveloped land it owns outside city limits. A state appellate court upheld a previous ruling that Industry did not intend to build a dam and bypass road in Tonner Canyon – a 525-acre parcel south of diamond Bar purchased in 2004. The City of Brea filed a lawsuit against Industry in 2004 over concerns that the parcel remain as open space. Over the past three decades Industry has spent more than $40 million buying more than 5,700 acres south of Diamond Bar and on the borders of Orange, Los Angeles and San Bernardino Counties. Industry purchased the 2,800 acre Tres Hermanos Ranch near Tonner canyon in 1978, 2,423 acres of the Firestone Scout Reservation from the Los Angeles Area Council Boy Scouts of America in 2001, and the 525 Acre Tonner Canyon in 2004. Industry officials are exploring using the land for recreational uses such as developing campsites and soccer fields.
LA PUENTE:
The City Council named Carol Cowley, La Puente's director of administrative services and city clerk, as the new city manager. Her contract is still being negotiated. Cowley will take over as the city's chief executive officer on Jan. 1 when City Manager Hal Ledford retires. She will become the first woman in La Puente's history to serve as city manager. Cowley, 59, said she plans to continue the redevelopment projects Ledford initiated, including the expansion of the Ed Butts Ford Dealership and the proposed shopping center on Hacienda Boulevard at the former site of the La Puente Lanes bowling alley. Cowley of Lawndale has worked in public service for 22 years all over California and has held her current city position for the past five years. She will oversee a staff of 79 full- and part-time employees and brings knowledge in all areas of city management, including public records and municipal bond issues.
The City Council has also updates its graffiti laws, strengthening existing rules and giving law-enforcement officers additional resources. Under the new regulations, violators are required to perform at least 125 hours of community service and it is illegal for minors to possess any supplies that could be used for graffiti unless they are under the supervision of parents, teachers or employers
MONTCLAIR:
The city has launched Geographical Information Systems on its website making it available to its current and prospective residents and business owners. Montclair has been using GIS within its offices for about 10 years, but the website GIS residents and business owners can now look up information on their own time. The basic property information is viewed n the latest aerial photography from 2002. GIS currently includes county zoning, general and redevelopment plan information, school boundaries, specific plan details for aerial views of the city, park and school locations and truck permitting, where larger vehicles can park and leave trailers. The high resolution satellite map will eventually allow public viewing of updated sewer and storm drain plans, contracts, plans and permits, repairs, public works, redevelopment data, trash pickup and street sweeper routes and emergency service maps.
ONTARIO:
Syntax-Brillian Corp. will opened what is believed to be the nation's first high-definition, flat-panel TV manufacturing facility bringing operations that have been conducted overseas back to the United States. Company CEO Vincent Sollitto said Syntax-Brillian wanted to assemble its products closer to the regions where they are sold, as opposed to paying higher shipping costs and import taxes on TVs assembled overseas. The company had been making its Olevia sets in Taiwan, where its printed circuit boards and plastics for the TVs are also made. Some of the smaller sets will continue to be made in Taiwan.
Sollitto said it would cost less to assemble the products in Tijuana, Mexico, where labor is cheaper. But high employee turnover, numerous labor issues and the logistics of shipping the TVs across the border ultimately made Ontario the more attractive choice. The 50,000-square-foot plant, at 4652 E. Brickell St., will initially employ about 120 workers. Another shift will likely be added later, requiring 100 additional employees. Syntax-Brillian will assemble its Olevia-brand TVs in Ontario. The models will include 32-inch, 37-inch and 42-inch LCD TVs as well as 65-inch LCoS, rear-projection TVs. It generated $193 million in sales for its 2006 fiscal year, which ended in June.
POMONA:
City Council approved a business assistance agreement with a downtown businessman seeking to open a combination restaurant, banquet facility and brew pub in Antique Row. Council members voted unanimously in favor of entering into the agreement with businessman Jason Abboud, who will receive a $500,000 forgivable loan. He plans to adapt a building in the 100 block of East Second Street into a business he plans on calling the Pomona Brewery. Council members asked administrators to add conditions that the business be open a certain number of hours and days as part of the agreement.
Downtown businesswoman Lisa Orr objected to the agreement. Orr, whose antique business is located across from the proposed restaurant, said the loan was a giveaway and a poor use of city funds. Resident Milo Rodich also opposed the loan and added there were better uses for the funds.
RANCHO CUCAMONGA:
Miller Development, owned by Rep. Gary Miller, R-Diamond Bar, hopes to build on the hillside of the San Gabriel Mountains, north of Reales Street and La Colina Drive, in the Alta Loma portion of the city. The proposed Carrari Ranch Project will include a 110 unit housing development as well as open space. Meetings are being held on the project.
Rancho Cucamonga has received the Certificate of Achievement for Excellence in Financial Reporting the Government Finance Officers Association of the United States and Canada. It is the 18th consecutive year that Rancho Cucamonga has received the award. The city's finance officer, Tamara L. Layne, and the finance staff were also recognized for their work in preparing the city's financial report. The Government Finance Officers Association is a nonprofit professional association serving about 16,000 government finance professionals.
WALNUT:
Building a new library, improving school and city relations and reducing traffic problems related to Mt. San Antonio College are among the top priorities of new City Manager Rob Wishner.
Wishner, 40, was appointed by the Walnut City Council to the city's top position. He had served as assistant city manager since March 2006. The Council voted Wishner a salary of $165,000, plus benefits and a city car. One of Wishner's first moves as city manager will be looking for budget cuts, and to see if staffing numbers are meeting community needs. He also hopes he can use his experience in developing a $13million library in San Marino, which is now under construction, and apply it to Walnut as it considers building a new library.
WEST COVINA:
A 10 acre parcel next to Shadow Oak Park will remain as open space. The Council voted unanimously in closed session to break off negotiations with the Rowland Unified School District which had been looking to purchase the property. Residents near the park had collected signatures in favor of keeping the property as open space, citing over concerns of what a school would do to their neighborhood and stated that they did not want any “riffraff” in their neighborhood. The city has assured residents that any future negotiations on what to do with the 10 acre parcel located at 2121 E. Shadow Oak Drive, would not be entered into with out consulting the public first.