LGR REPORT
March 2007
Man is not the creature of circumstances, circumstances are the creatures of men. We are free agents, and man is more powerful than matter.
Benjamin Disraeli -1st Earl of Beaconsfield
British Prime Minister
FEDERAL:
HUD Issues Final Guidance on Limited English Proficiency (LEP)
In response to an executive order 13166, issued by President Clinton in August 2000, HUD undertook developing standards for recipients of federal financial assistance to take reasonable steps to meet their statutory and regulatory obligations to ensure that Limited English Proficiency (LEP) persons have meaningful access to the HUD program and activities. The statutory and regulatory obligations are derived from Title VI of the Civil Rights Act of 1964. HUD issued proposed guidance in December of 2003.
The guidance provides a test so that organizations receiving HUD funds can determine whether they are required to provide various additional services including translators and translated documents to LEP persons. The general rule is that if direct federal government funding is involved then agencies and organizations must consult the guidance to determine what reasonable services need to be provided. It does not apply to FHA insurance but would apply if the FHA insurance was coupled with federal funding such as rental assistance, construction subsidy, or other federal assistance. Many organizations, including NAR have expressed concerns that the burdens of providing such assistance for the scores of languages used by people in the U.S. is likely to be quite onerous. The guidance goes into effect on February 21, 2007.
Senate Small Business Tax Package Passes
The small business tax package associated with the minimum tax passed the Senate, along with the minimum wage increase itself, in a 94 - 3 vote. The tax package includes, among other provisions, an extension of the 15-year leasehold improvements provision through March 31, 2008 and an extension of the $100,000 expensing rules through 2010.
The House has neither considered nor passed a similar tax package, although the House did pass the minimum wage increase. Ways and Means Committee Chairman Rangel does not support enactment of a tax package at this time. Accordingly, there is presently no plan to take the legislation (H.R. 2) to conference. Thus, the timing for enactment of the minimum wage increase is also uncertain.
Proposed Budget 2008
For an overview of the California-oriented examination of President Bush’s FY 2008 Budget Proposal, please contact Government Affairs Director Bill Ruh, or visit www.cvar.net for the complete LGR article featuring the overview.
STATE:
Agents of Equity Purchasers - Existing law effectively (and inappropriately) precludes legitimate agents from representing investor purchasers of properties that are in foreclosure. The prohibition is the inadvertent result of requiring buyers’ agents to purchase a bond for the sale at twice the value of the property. This bill will allow alternate means of demonstrating financial responsibility; either by maintaining E&O insurance in a similar amount or by certifying that the licensee is in good standing with the DRE and that consumers have access to the Real Estate Recovery Fund for fraud that he or she might commit.
“Degree Broker” Education Requirements - The Board approved a motion in October 2006 to pursue a clarification of the “specialization in real estate” requirement for the “degree broker” exception to experience requirements. The two part motion is first to seek the clarification by regulation at DRE; if that is unsuccessful, to sponsor legislation to achieve the desired clarification.
Private Transfer Tax Prohibition - The bill will implement the recommendation of the C.A.R. Private Transfer Tax Task Force and prohibit the imposition of such a transfer fee. “Private” transfer “taxes” are increasingly being used to settle disputes between opponents and builders or, in the alternative, by builders to proactively avoid a lawsuit or to smooth development negotiations with the local government. Typically, in return for an agreement by a potential opponent group to not pursue a lawsuit, the builder agrees to the imposition of one or more PTTs through a covenant included in the covenants, conditions and restrictions (CC&Rs). These PTTs have totaled as much as 1.75 percent of the purchase price of a home and is paid by every buyer of a home in the development for 20 to 25 years or, even, in perpetuity. Even worse, private parties and real estate licensees, are being solicited nationwide by a Texas firm selling a pre-packaged business plan which imposes a similar deferred “royalty” on each subsequent transfer of an interest in a property.
California Senate and Assembly Committee Assignments.
Here are a few of the assignments for the legislators serving the CVAR membership.
SENATE:
Ron Calderon – International Business Trade
Bob Dutton - Energy, Utilities and Communications (Vice Chair) , Rules,Transportation and Housing,Budget and Fiscal Review ,Appropriations, Joint Legislative Audit Committee
Bob Margett - Natural Resources & Water (Vice Chair), Banking, Finance, and Insurance Committee,Public Safety. Joint Rules Committee. Subcommittees - Subcommittee No. 1 on Education.
Gloria Negrete McLeod – Alameda Corridor East, Perchlorate Contamination.
Gloria Romero – Senate Majority Leader; Asian Pacific Rim Select Committee, Urban Economies, Urban School Governance.
ASSEMBLY:
Anthony Adams - Elections, and Redistricting Committee (Vice-Chair),Judiciary Committee, Rules Committee.
Charles Calderon - Committee on Revenue and Taxation(Chair), Governmental Organization, Insurance, Water, Parks and Wildlife.
Bill Emmerson - Business and Professions Committee(Vice Chair), Appropriations Committee, Health Committee.
Michael Eng - Committee on Business and Professions(Chair), Education, Environmental Safety and Toxic Materials, Revenue and Taxation, Joint Committee on Legislative Budget.
Dr. Edward Hernandez - Committee on Public Employees, Retirement and Social Security(Chair), Committee on Budget, Committee on Business & Professions, Committee on Health, Subcommittee on Budget, #1: Health and Human Services.
Bob Huff - Budget Committee, Education Committee, Transportation Committee
Nell Soto - Joint Legislative Audit(Chair), Governmental Organization, Local Government, Public Employees, Retirement and Social Security, Transportation.
LOCAL
AVOCADO HEIGHTS (Unincorporated L.A. County)
Residents living near a proposed condominium development worry the project will add traffic to already congested streets. At a hearing Monday before the Los Angeles County Regional Planning Commission, a handful of residents voiced their opposition to developer Lennar Homes' plan to build 109 condos on Workman Mill Road. The gated community of 109 unites is slated to be built on the site of Victory Outreach Church, which had also been blamed for worsening traffic conditions. The County has asked Lennar Homes’ to provide more information regarding traffic and sewer impacts. Community members want Lennar to add more Avocado trees.
AZUSA
The downtown area from the intersection of Azusa Avenue and Foothill Boulevard is in the throes of redevelopment. A council vote in January paved the way for the demolition of a large swath of empty buildings in the heart of downtown to make way for a three-story mixed-use development. Although the city says it reached amicable settlements with many of the soon-to-be displaced businesses, others say it's the threat of eminent domain that's driving people out. Some business owners claim that the city's acquisition of small businesses is driving mom-and-pop stores out, draining the city's commercial base and blocking new businesses from starting up. They fear that the heavily mixed-use emphasis will bring too much residential and not enough commercial development to the city. City officials note that Azusa is dependent upon Costco as a tax generator and the downtown revitalization will help to diversify the tax base.
BALDWIN PARK:
City officials approved a citywide smoking ban to keep residents clear of secondhand smoke. The proposed ordinance would extend the city's current smoking ban in city-owned buildings and parks to include more public places in Baldwin Park. The ordinance is modeled after the one enacted in Calabasas in March 2006. The new ban would prohibit smoking in all public areas where a significant number of people congregate like outdoor dining and service areas such as Starbucks and the Metrolink station. It would also extend to automatic teller machines, information kiosks, vending machines, bus stops, areas within 20 feet of entrances and exits and open windows of any building open to the public. The first violation would be a warning; after that, fines could hit $100, officials said.
In March, property owners will have to decide whether they want to pay more to ensure the survival of important city services, officials said. Officials are proposing raising the Lighting, Landscape Municipal District assessment on property owners from about $88 per year. The district provides services for lighting, traffic signals, safety and landscaping.
Public Works Director William Galvez said the assessment needs to be increased because energy and other costs have risen significantly over the past few years. City officials said increases for commercial properties would mirror those for homeowners. 14,619 property owners will vote by mail on the assessment and will have 45 days from the day the ballot is mailed to send it back. Of those, 985 are going to owners of commercial properties and 13,634 are going to homeowners. Fifty-one percent of the voters need to approve the increase for it to pass. In addition to lighting and traffic signals, the proposed assessment increase also would fund landscaping on a few medians located at intersections throughout the city.
DIAMOND BAR:
The city may get a new retail center or hotel by moving its golf course under an agreement with Aera Energy. Aera plans to build 2,800 homes on 1,940 county acres that could be annexed into Diamond Bar.
City officials told Wildlife Corridor Conservation Authority members that the city's pre-annexation deal with Aera would allow Diamond Bar to acquire space for a new golf course. Diamond Bar could build a project on the existing golf course, which would bring in more tax revenue. Residents of Rowland Heights, Brea, La Habra and La Habra Heights have expressed concerns about traffic impacts. Aera has said that there will not be any roads leading into those communities and Diamond Bar officials have indicated that they would give the project sufficient study.
IRWINDALE:
An effort to fill and build on the 15-acre Kincaid Pit, which straddles Irwindale and Azusa near the Foothill (210) Freeway and Irwindale Avenue, came to a halt this month after developers' ideas turned out to be out of reach for the cities' budgets. The proposals for a big-box retail center or an outlet mall did not include enough funding for road improvements and other necessary infrastructure changes. There are close to two dozen pits in Irwindale and Azusa. The vast majority are in Irwindale, and several are still being actively mined. Some have already been filled and developed - for instance, the Irwindale Speedway was created on top of a reclaimed pit - while others are more than 100 feet deep and getting deeper. Filling the pits takes a long time, and probably can't begin for decades while local companies continue to mine for the materials that make roads and concrete.
LA PUENTE:
LA PUENTE - The City Council unanimously voted last week to appoint 31-year La Puente resident Mark Escalera to fill one of two vacancies on the city's Planning Commission. Escalera, 36, was selected from seven applicants, and is a member of the Gabriel Foundation, which produces the Industry Hills Pro Rodeo
SAN DIMAS:
$7.5 million in funding to restore the Walker House, the historic 100-year-old mansion in downtown, was approved. The City Council voted on funding for renovation and accepting a $6.5 million bid for the work. Another $1 million would be set aside to pay for construction management and to cover any unexpected costs. The redevelopment agency's budget and grant money - $1 million awarded to the project so far - will pay for the restoration. However, the agency will need a loan to pay for the $7.5 million project. The two likely sources are a bond or a 20-year loan out of the city's $12 million to $17 million in general fund reserves. Turning to city savings could give the redevelopment agency a lower interest rate than a bond while giving the city's savings a higher interest rate than its current investments provide. The city will not decide how to use the house until after restoration begins.
SOUTH EL MONTE:
The City Council voted unanimously to stay with the Los Angeles County Sheriff's Department instead of hiring another law enforcement agency. Council members for the past year have discussed whether to drop the sheriff's department for an agency that would respond quicker, have more patrol units and more Spanish-speaking officers. The City is served by the Temple Station, which also serves Bradbury, Duarte, Rosemead, Temple City and three unincorporated areas. Officials from the Los Angeles Sheriff’s Department and the City have been formulating plans to improve service and provide a higher level of law enforcement. South El Monte pays the sheriff's department about $2.7 million a year for services. In a 24 hour period nine deputies are in the city.