Government Affairs Report

LAPD Warning Against Hiring Unmanned Aircraft Operators for Aerial Photos

2012-01-25T15:01:00.000-08:00

C.A.R., January 24, 2012 - Los Angeles authorities have asked C.A.R. to communicate this warning to REALTORS® who hire unmanned aircraft operators to take aerial photographs for marketing high-end properties. Using these devices (also known as drones) for flight in the air with no onboard pilot may violate, among other things, the Federal Aviation Administration's (FAA) policy on unmanned aircrafts, and Los Angeles's local ordinance requiring permits for filming commercial motion pictures and still photographs.

The Los Angeles Police Department's (LAPD) investigation has apparently revealed that aerial photos where unmanned aircraft were observed have appeared on certain real estate sales websites. According to FilmL.A., the LAPD Air Division has issued this warning as it intends to prosecute violators in the near future. FilmL.A. is a public benefit company created by the City and County of Los Angeles to manage film permit activity and related issues.

Under the Federal Aviation Administration (FAA)'s current policy, no one can operate an unmanned aircraft in the National Airspace System without specific authority. Operators who wish to fly an unmanned aircraft for civil use must obtain an FAA experimental airworthiness certificate, which will not be issued to an unmanned aircraft used for compensation or hire. Although the FAA allows hobbyists to fly model airplanes for recreational purposes under specific guidelines, that authority does not extend to operators flying unmanned aircraft for business purposes. More information is available from the U.S. Department of Transportation’s Notice on Unmanned Aircraft Operations and the FAA's policy.

2012-01-23T14:02:00.000-08:00

Please join Assemblymember Betsy Butler for a community coffee at the Venice-Abbot Kinney Memorial Branch Library on Saturday, January 28 from 10 a.m. to 12 p.m.

Residents are encouraged to bring their questions, ideas and solutions regarding state legislative issues that affect the community.

Saturday, January 28, 2012
10 a.m. - 12 p.m.

Venice-Abbot Kinney Memorial Branch Library
501 S. Venice Boulevard
Venice, CA 90291

Please call (310) 615-3515 for more information and click here for directions and to RSVP.

End of redevelopment agencies slows down advocacy at local cities

2012-01-13T10:31:00.000-08:00

If you are a local redevelopment agency, then today is not a good day. Following the recent action by the California Supreme Court upholding the Governor's authority to raid RDA funds, cities are scrambling to figure out what to do next. Some cities like Torrance transferred RDA powers to the city council while other cities like Los Angeles are doing away with them altogether.

While cities are busy shutting down their RDA's, other items risk taking a back seat. In one of the South Bay cities served by SBAOR, items related to business taxes and signage that are of importance to REALTORS are due for consideration as soon as city officials finish resolving the RDA before the February 1 deadline.

"As of today’s date, this means our Redevelopment Agency will go out of business as of February 1, 2012," we were told in an email from a city staffer. "City management and the Council are working together on how to address the unintended consequences (i.e. layoffs, budget shortfalls, etc.) It is a very bad time for cities with redevelopment agencies."

Meanwhile, the Los Angeles Times reports today that state legislators are doing some scrambling on their own to fill the gap left by local redevelopment agencies.

On Thursday, one state senator proposed extending the life of the agencies; another wants to replace them with different organizations that could fund environmentally friendly growth.

The agencies are on borrowed time because the California Supreme Court last month upheld Gov. Jerry Brown's elimination of their funding but struck down a compromise that would have let them survive in a lesser form.

2011-12-14T11:04:00.000-08:00

REALTORS® all over the U.S. celebrated a major victory when Congress restored the higher loan limits that had expired on October 1. This may be just one step of many on the road to reforming the alphabet soup of federal housing finance: FHA, FHFA, Freddie Mac, Fannie Mae, and onward.

The Los Angeles Times reported today that the higher loan limits may turn the FHA into a key financing as qualified borrowers go looking for funds to purchase their new homes. Utlimately, a compromise was put in place to satisfy House Republicans who expressed concerns about Fannie and Freddie.

[Congress] raised maximum loan limits for the Federal Housing Administration while leaving loan ceilings untouched for Fannie Mae and Freddie Mac.In effect, this may make FHA the go-to financing option for borrowers needing loans up to $729,750 with down payments as low as 3.5% in high-cost areas of California, the District of Columbia, New York, New Jersey and scattered counties in other states including Massachusetts, Florida and North Carolina. Fannie Mae- and Freddie Mac-eligible loans in those areas, meanwhile, stay capped at $625,500.

This action appears to leave the door open for additional action on reforming Fannie and Freddie, while at the same time weakening their leverage by reducing the access of certain borrowers to Fannie and Freddie as compared to FHA.

The goal — lobbied aggressively by realty and home-building groups — was to inject needed oomph into home sales. But Republicans in the House balked at doing anything that might prolong the existence of Fannie Mae and Freddie Mac, both the targets of scathing criticism for their multibillion-dollar costs to taxpayers and big bonuses for top executives.

What ultimately emerged from the legislative scrum was the compromise penalizing Fannie Mae and Freddie Mac, while boosting FHA. House Republicans weren't enthusiastic about helping the FHA either — the agency faces its own financial challenges — but unlike Fannie and Freddie, the FHA is subject to congressional appropriations and closer oversight. Republican critics held their noses and voted for the plan.

Stay tuned for more developments in reform of federal housing finance programs.

C.A.R. Reports: BofA vows to streamline short sales

2011-11-10T09:58:00.001-08:00

The California Association of REALTORS® reported to its members today that Bank of America says it is stepping up efforts to increase the number of short sales it completes.According to Bank of America officials, the bank is on track to complete 100,000 short sales in 2011, up from about 42,000 a couple of years ago. The bank plans to increase its short sale completions by 60 percent in 2012.

Bank of America now has 3,000 people on its short-sale account, bank officials said in a webcast statement. When the market first started to decline, the bank had approximately 200-250 people on its short sale account. The bank also is starting to mail out packets of materials to delinquent homeowners encouraging them to try to short sell.

Loan Limits Amendment Passes U.S. Senate in a Squeaker

2011-10-21T10:04:00.000-07:00

The U.S. Senate barely passed a measure to reinstate the previous conforming loan limits that had expired on October 1. An amendment was added to a HUD Appropriations bill by two Senators, one Republican and one Democrat. Bipartisanship is not dead, after all!

Last night at around 11:30 eastern the Senate voted to include an amendment sponsored by Senators Menendez (D-NJ) and Isakson (R-GA) in the Transportation – HUD Approps bill that would reinstate conforming loan limits to 125% of median area home price capped at $729,750. The amendment required a 60 vote threshold to pass and came in 60-38.

REALTORS® across the U.S. contacted their representatives in the House and Senate all summer long in order to remind Congress that access to housing finance is a critical part of our economy and the recovery.The approps bill including the loan limits amendment now heads to the House where it will likely go to conference between the House and Senate. Stay tuned for more updates as the details come together on the conference committee and the prospects of the loan limits among House conferees.

Congressional Inaction on Track to Raise Your Loan Limits

2011-09-30T09:31:00.000-07:00

Time's up! The October 1 deadline for loan limits is here, and homebuyers all over in America just ran out of time. NAR reported this week that Congress failed to extend the FHA and GSE Loan Limits. Tomorrow those limits will decline in 669 counties in 42 states. The new limits will now be equal to 115% of median home price (down from 125%), and the high cost gap will fall from $729,750 to $625,500.

NAR has a guide available to determine the new loan limits and it is available on REALTOR.org or by clicking here. If your county isn’t listed, your limits will not change. NAR continues to work with Congress to get the higher limits restored.

Energy Upgrade California reports that energy efficiency benefits home resale

2011-09-24T13:51:00.000-07:00

The good folks at Energy Upgrade California are talking about a study of "home sales in the Portland metropolitan area that showed newly constructed homes with third-party certifications for sustainability and energy efficiency (such as LEED, Energy Star and Earth Advantage) sold for 8% more on average than non-certified homes, and existing homes with certifications sold for 30% more."

In fact, over the past four years studies of Portland area home sales show a consistent trend that third-party certification continues to result in higher sales price. Homes in Seattle and Portland marketed with energy efficiency certifications sold faster on average too, as compared to homes without certifications. In San Diego and Sacramento, researchers found that solar panel installations increased appraised home values, leading to a 97% recovery on investment—much higher than typical home improvements such as major kitchen and bathroom renovations.

Read on:

The Washington Post: Is Green Good for Home Resale Value?

Los Angeles Times: Energy-Efficient Homes Seem to Sell Faster, Fetch Higher Prices

2011-09-24T13:46:00.000-07:00

Los Angeles County Provides More Incentives!

Beginning September 6, LA County homeowners who complete qualifying upgrades will receive up to $4,000 in County incentives plus up to $4,000 in utility incentives—for a grand total of up to $8,000 back! All Energy Upgrade Projects in LA County are eligible for the County rebate and this offer is retroactive, so no one misses out.

Here are the details:

All projects must be located within LA County.
Projects from both the joint SCE/SoCal Gas and the SoCal Gas-only program are eligible.
For those projects that use either SCE or SoCalGas and a municipal utility, the utility portion will be discounted, but the LA County rebate will remain consistent.
This increase will be retroactive to the start of the program.

Help us get the word out about this new incentive amount! Incentives are available until all funds are expended. The Energy Upgrade California in LA County website reflects this change and the LA County Call Center (1-877-785-2237) is available to answer any questions that you or your clients may have.

More information available here.

Action Alert! Ensure Your Clients Have Access to Affordable Mortgages

2011-09-14T15:41:00.001-07:00

On September 30, the cost of a mortgage could rise significantly. If this happens, many of your clients run the risk of being priced out of the American Dream of home ownership. Even worse, this could hold back the housing recovery.

We need you to share your market expertise with Congress. Send the letter below urging them to make the current mortgage loan limits for FHA and GSEs permanent. Well-qualified buyers don't need another hurdle to access affordable mortgage financing.

Click here to take action on loan limits!

Brokers: Down Payment Assistance Programs for Homebuyers

2011-09-14T12:40:00.000-07:00

Learn about lending and real estate services in Los Angeles County funded in part by federal Neighborhood Stabilization grants

Real Estate Broker Orientation hosted by Neighborhood Housing Services of Los Angeles County

Thursday, September 22, 2011
9:00am-10:00am

Neighborhood Housing Services of Los Angeles County Corporate Office
3926 Wilshire Blvd. 3rd Flr.Los Angeles, CA 90010

Come learn more about:

Neighborhood Stabilization Program (Low-Cost Rehab Homes)
Affordable Lending (Special Financing Programs and Down Payment Assistance)
Construction Management Services
And much more

Please note, this orientation is only open to real estate brokers and not to the public. Call 213-381-2682 ext. 566 to RSVP and find out about future orientations.

REALTORS® meet Congresswoman Janice Hahn

2011-09-12T15:36:00.000-07:00

From left: Rick Otterstrom, Mina Semenza,
C.A.R. President Le Francis Arnold, Congresswoman Janice Hahn,
James Litz, David Kissinger, Allie Otterstrom

REALTORS® in the South Bay recently met with Congresswoman Janice Hahn as she gears up for reelection to Congress. Hahn is running in a new district after the recently completed redistricting of Congressional seats in California. NAR's REALTORS® Political Action Committee (RPAC) has supported Congresswoman Hahn.

Can falling loan limits affect you? Yes they can!

2011-08-15T09:35:00.000-07:00

Federal loan limits will decrease on October 1 unless Congress takes immediate action to make the current loan limits permanent. The Daily Breeze today reports on the unreported story about loan limits:

Jumbo loans - the federally insured mortgages that allow homebuyers to secure lower interest rates and thereby increase the size of the loan they qualify for - will see a big change on Oct. 1.

That's when the jumbo loan limits will drop nationwide. The amount of decline depends on the homes prices in each county.

For Los Angeles County, the limit will fall from $729,750 to $625,500.

That affects home loans through the Federal Housing Administration that require a 3.5 percent down payment, as well as mortgages through Fannie Mae and Freddie Mac that demand 20 percent down.

But don't look for a mob of homebuyers rushing to close their loans before then. That is at least partly because few consumers know about the change.

Think that high loan limits are just a thing for a few high cost areas? Think again. NAR's research found that more than 669 counties in 42 states and the territories would be negatively impacted by the loan limit change. The average decline in loan limits would be more than $68,000. Only 8 states will see no decline (AR, IA, KS, MS, NE, ND, SD, & OK). Every other state will see a drop in loan limits.

August 20 - Energy Upgrade California - Come Meet the Contractors!

2011-08-11T15:22:00.000-07:00

The South Bay Environmental Services Center invites you to a special event:

Energy Upgrade California: Come Meet the Contractors!
Enjoy free lunch from LA's premier food trucks and enter to win prizes . . .
like a Home Energy Audit!

When:
Saturday, August 20, 2011
10:00am - 12:00pm

Where:
South Bay Energy Efficiency Demonstration (SEED) House
5021 Lennox Blvd, Lennox, CA 90304

Join us for a special Homeowner workshop on Saturday, August 20 to learn how to save money, increase energy and water efficiency, and earn up to $6,000 in rebates and incentives from Energy Upgrade California!

10am - 11am - Homeowners Workshop
Learn how to save money by making your home more energy efficient and how to maximize your rebate with Energy Upgrade California!

11am - 12:00pm - Lunch & Meet the Contractors
Afterwards, enjoy complimentary refreshments from the BORDER GRILL (specialty Mexican Food) and REBEL BITE (comfort food with an attitude) FOOD TRUCKS, enter to win prizes, including a Home Energy Audit, and meet with our qualified Participating Contractors to get the ball rolling on your energy efficiency upgrade!

Event is FREE, but for planning purposes, please pre-register now

Please call SBESC at (310) 371-7222 if you have questions, and please feel free to share news of this event with your friends.

NAR Urges Action on Debt Ceiling

2011-07-29T09:49:00.000-07:00

NAR calls on Congress to raise the debt ceiling to protect the fragile housing market and home buyers' financing options.

NAR issued a statement today calling on members of Congress to raise the federal debt ceiling with the warning that the continuing debate over the issue is destabilizing housing markets around the country as households, concerned about rising interest rates, remain on the sidelines.

"Until a resolution is reached, Congress will be unable to address the myriad issues facing the nation’s families, communities, and economy," NAR President Ron Phipps says in the statement. “The indecision in Congress is paralyzing progress on other fronts, and it is harming home buyer confidence and negatively affecting home sales.”

NAR does not take a position on the specifics of the legislation but has been in communication with members of Congress and their staffs throughout the debate over the risks of a default by the U.S. government. Although the consequences of default can’t be anticipated with certainty, there is broad consensus among economists that interest rates will rise. Higher interest rates will dampen home sales at a time when markets around the country are struggling to recover.

Are short sales being held up by lenders for all the wrong reasons?

2011-05-18T10:43:00.000-07:00

Conferences held in May by both the National Association of REALTORS® and the California Association of REALTORS® held forums dedicated to short sales and the problematic state of housing financing. This blog post is a write-up of a forum held by NAR in Washington on mortgage financing, including short sales.

At NAR’s Mortgage Liquidity Symposium on May 10, a panel of banking and lending professionals faced an audience of hundreds of REALTORS from all over the U.S. There were some testy exchanges – in particular one panelist, Martin Eakes, Chief Executive Officer of the Center for Responsible Lending, claimed that we were at risk of going back to 1929 where, he felt, irresponsible and inappropriate lending practices were the order of the day. Some REALTORS in the Q&A session expressed frustration about short sales and appraisals.

Here in the South Bay, the Daily Breeze wonders if the problematic process for completing short sales are contributing to the slow housing recovery:

Realtors are increasingly blaming slow bank processing of short sales as at least one big reason for the weak housing recovery.

Short sales - which involve homes sold for less than the current mortgage - represented 26 percent of existing single-family home sales for March in Los Angeles County, the last month for which there is data. Short sales usually take several months or longer for banks to approve.

The Los Angeles Times' columnist David Lazarus also asks why short sales are drawn out so much:

The situation has grown so problematic that the California Assn. of Realtors recently ran ads in newspapers statewide saying more needs to be done to assist homeowners on the verge of foreclosure by expediting the short-sale process.

"Horror stories abound from potential home buyers and Realtors forced to wait 90 or more days for a response to a purchase offer or being required to fax short-sale applications or other paperwork as many as 50 times," said Beth Peerce, president of the organization.

FREE High-Efficiency Toilets - One day only in Manhattan Beach

2011-04-03T21:24:00.000-07:00

Free High-Efficiency Toilets - April 9, 2011

This program is available to all qualified Manhattan Beach residents. You must pre-register using your water bill account number, so call today. More info here.

To pre-qualify and find out more about the upcoming FREE toilet giveaway event, please call ConserVision Consulting at (866) 861-0784 or visit our website at www.waterprograms.com/westbasin/

Energy Upgrade CA Offers a $50,000 Home Energy Makeover

2011-03-15T16:30:00.000-07:00

Enter and Win Home Energy Makeover up to $50,000. This from the Energy Upgrade California website:

$50,000: One Grand Prize Winning Home
A “Toward Zero Energy” winning home will receive energy and water efficiency improvements estimated at $50,000, including solar and certification as a green home!

$10,000: Five Winning Homes
Five homes receive energy and water efficiency improvements estimated at $10,000 and certification as a green home!

20 Semi-Finalist Homes
Twenty semi-finalist homes receive state-of the-art home energy assessments estimated at $500 each.

All of the winners will receive energy-efficient home improvements that will increase the overall comfort of their home, reduce their energy use and allow their home to obtain GreenPoint Rated certification.

Contest Registration is March 1-March 31, 2011.

What You Will Need To Enter the Contest

The total square footage of your house
The year your house was built
The names of your electric, gas and water utility providers
The total annual dollar amount for your 2010 electric, gas and water bills (you can contact your utility if you’re not sure; see How to Get a Copy of Utility Bills)

Optional – Take the “Home Energy Efficiency Survey,” which includes your monthly utility usage history, and send the summary Energy and Water Report provided to you as a pdf (see below).

Note: The Home Energy Makeover contest is sponsored solely by Los Angeles County and is NOT sponsored or endorsed by Southern California Edison or Southern California Gas Company. Any information submitted for this contest is THE RESPONSIBILITY of the contest participant and Los Angeles County and neither Southern California Edison or Southern California Gas Company will take any responsibility for maintaining customer confidentiality or accept any liability with regard to the Home Energy Makeover contest.

The Home Energy Efficiency Survey

This customized online survey is sponsored by customers of Southern California Edison, SoCalGas, and LADWP. It’s free and provides lots of useful information about your home and energy efficiency. You can save the report as a pdf and upload it with your contest entry if you wish.

Ways you can help the victims of the Earthquake and Tsunami in Japan

2011-03-15T10:00:00.000-07:00

Our hearts go out to the victims of the devastating earthquake and tsunami in Japan. Not to mention the pending nuclear threat which could affect, well, most of the rest of the world, really.

We'll periodically post information about what you can do to help and what local governments in our area are doing in response. Check out these resources from Assemblymember Warren Furutani.

Dear Friend,

Last Friday, the north coast of Japan was struck by a massive 8.9 magnitude earthquake and subsequent tsunami that caused widespread destruction and devastation. Current estimates predict loss of life in the thousands, and millions are without shelter, food or heat as they brave winter temperatures. Relief organizations around the world are mobilizing to provide relief to those affected by the disaster.

If you would like to help the relief efforts, here is a list of organizations that you can support:

The Red Cross immediately launched relief efforts in Japan. For more information on how you can support their efforts please visit Redcross.org or text REDCROSS to 90999 to donate $10 from your phone.

Americares emergency team is mobilizing resources and has dispatched an emergency response manager to the region. For nearly 30 years AmeriCares has provided medical relief and humanitarian assistance to millions affected by natural disasters around the world. Click here for more information.

Global Giving launched The Japan Earthquake and Tsunami Relief Fund to raise funds for relief organizations already on the ground helping victims, including the International Medical Corps and Save the Children as well as others. Please click on this link for more information.

For more organizations that are providing assistance, please click here. For more information on the individual organization, go to www.charitynavigator.org for more information.

Google has also stepped up to help those who have loved ones abroad. They launched the Person Finder to help connect people that may have been displaced due to the disaster.

And, Verizon and AT&T are offering their customers free calls to Japan at this time. For more information, please click here.

As we receive more information regarding local efforts getting underway, I will keep you informed.

Dear Friends, Help us solve the housing crisis - Let's improve the short sales process!

2011-03-11T09:47:00.000-08:00

This open letter from the California Association of REALTORS® appeared this week in several California newspapers. We are calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to help protect families and preserve housing. Home Ownership Matters!

March 10, 2011

An important message from the CALIFORNIA ASSOCIATION OF REALTORS®:

I write on behalf of the CALIFORNIA ASSOCIATION OF REALTORS®, whose 170,000 members continue to witness the devastating consequences the home foreclosure crisis is having on California’s families, neighborhoods, and communities on a daily basis.

The number of families affected by foreclosure is staggering. During the past three years, more than 640,000 Californians have lost their homes. With the number of homeowners who owe more than their home is worth hovering at 30 percent, experts predict there will be many more foreclosures in 2011 and 2012. Unless we take immediate, aggressive action to assist these homeowners, any meaningful recovery in the housing market and overall economy will continue to be delayed.

Tragically, only a fraction of those who face foreclosure will remain in their homes when all is said and done. Those whose incomes and financial circumstances meet strict guidelines may qualify for a loan modification that will reduce their monthly payment to more affordable levels. Yet the federal Home Affordable Modification Program (HAMP) is expected to prevent only 700,000 to 800,000 foreclosures nationwide before it expires at the end of 2012, and the program does little to help those homeowners who are unemployed or otherwise no longer able to meet their financial commitments. Their last hope is to sell their home, which often means convincing their lender or the investor who “owns” the loan (and, in many cases, the holder of a second mortgage lien and the mortgage insurer) to accept a “short sale.”

With a short sale, homeowners with a proven hardship negotiate an agreement to sell their home for less than the balance owed. Although not every homeowner or mortgage is eligible, those who are able to finalize a short sale avoid a foreclosure on their credit record and can move on with their lives. Last year, 20 percent of home sales in our state involved short sales.

Short sales can play an important role in our state’s economic recovery by accelerating the pace of home sales and reducing the inventory of bank-owned homes on the market. There are other benefits as well. Homebuyers who can qualify for a mortgage at today’s low interest rates also are able to purchase a home at below-market prices. Banks get a nonperforming asset off their books and avoid the headaches associated with disposing of assets they don’t want to own in the first place. Neighborhoods have fewer abandoned homes, and local businesses have more customers with money to spend.

Unfortunately, many homeowners are unable to successfully negotiate a short sale. According to a recent survey of 2,150 California REALTORS® who have assisted clients with a short sale, only three out of five transactions closed – even when there was an interested and qualified buyer.

What’s the problem? For one, no two mortgage agreements are the same, so it can be difficult to standardize short sale processes and procedures. Many homeowners have second mortgages, which further complicate matters. Then there’s the challenge of convincing multiple parties to take a financial loss or, in the case of loan servicers, to forego fees they otherwise might earn during the course of the foreclosure process. Poor and slow service by many banks and servicers has only exacerbated the problem. Horror stories abound from potential homebuyers and REALTORS® forced to wait 90 or more days for a response to a purchase offer or being required to fax short sale applications or other paperwork as many as 50 times. These delays discourage potential homebuyers from considering a short sale purchase and undermine the process for those who short sales are intended to benefit – the hundreds of thousands of families facing foreclosure.

Increasing the number of closed short sales by speeding up and streamlining the short sale process is one important way we can help California families avoid foreclosure and move our economy closer to recovery. That’s why the California Association of REALTORS® is taking steps to enable more families to arrange a short sale. Recently, we advocated for improvements to short sale guidelines established under the federal Home Affordable Foreclosure Alternative (HAFA) program. We’re meeting with major banks, U.S. Treasury officials, government-sponsored entities (including Fannie Mae and Freddie Mac), and others to urge them to standardize processes, comply with federal guidelines, improve communication with other stakeholders and increase staffing with the goal of eliminating service issues. We’ve also offered our members training in every aspect of the short sale process so they can assist their clients.

But we can’t do it alone. That’s why we’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies, and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery. It won’t be easy, and some compromises will be required. The important thing is that we need to act today. Our families and our communities can’t wait any longer.

Sincerely,

Beth L. Peerce
President
CALIFORNIA ASSOCIATION OF REALTORS®

Remember to vote! Local elections in the South Bay

2011-02-28T11:23:00.001-08:00

On March 8, local elections are taking place in Carson, Los Angeles, Manhattan Beach, and Redondo Beach. Remember to vote in your city! In Redondo Beach, you may have already received your mail-in ballot. Contact the city clerk if you have not received your ballot or if you have further questions.

Redondo Beach. SBAOR supports Arda Clark for Redondo Beach School Board. This is a mail-in ballot only which is due by 8:00 p.m. on March 8. Late ballots with on-time postmarks will not count!
Manhattan Beach. SBAOR supports Kathleen Paralusz for City Council.

Last Chance: Take the LA Bizfed Annual Poll

2011-02-28T11:16:00.000-08:00

As partners and members of LA County Business Federation (BizFed), join with thousands of business leaders across our region to weigh-in on YOUR top concerns and business outlook for 2011.

Please take the LA BizPoll now!

Your input as an active business leader is vital:
1. How do YOU feel about business environment in the region and CA?
2. What are the critical issues impacting YOUR business during this economy?
3. What regulations and/or conditions need to change for your company to succeed here?
4. What state and local government issues affect the growth of your business the most?
We will make sure opinion leaders, policy leaders, lawmakers and the media know what is really on the minds of job CREATORS. Our collective business voice will help shape all of our futures.

Please take action NOW by completing this 10-15 minute survey. Hurry, the LA BizPOLL CLOSES this week.

Are you ready to say goodbye to your mortgage deduction?

2010-12-01T15:05:00.000-08:00

Congress risks further danger to the housing market and the economy if it reduces or eliminates the mortgage interest deduction and makes other tax changes that could hurt home owners. President Obama’s bipartisan Federal Deficit Reduction Commission this morning released its final plan, which calls for significant reductions to the mortgage interest deduction.

The report of the commission, which was created earlier this year to map out ways to reduce the deficit by $4 trillion by the end of the decade, is slated to be voted on by commission members by Friday. Although it’s not clear the final report will be passed, since passage requires a vote of at least 14 of its 18 members, it’s imperative REALTORS® make their voice heard now. That’s because individual recommendations like cuts to MID and other programs impacting home ownership could be included in federal budget legislation in early 2011, without regard to what the commission does.

More information on NAR’s efforts to protect home ownership and to preserve MID and other federal programs that reflect the country’s historical commitment to home ownership is at Home Ownership Matters on REALTOR.org.

Assessor Candidate John Noguez visits SBAOR, October 22

2010-10-22T15:20:00.000-07:00

As a special edition of our popular "Breakfast with the Mayor" series, the South Bay Association of REALTORS® hosted an event for John Noguez, candidate for Los Angeles County Assessor.

In a room with nearly 50 people attending, Noguez talked about his race for election to this post and he thanked the REALTOR® community for endorsing his candidacy. SBAOR joined several other Associations of REALTORS® in Los Angeles County to endorse Noguez for this race.

Remember to vote on November 2!

Above, from left: SBAOR 2010 President Paul Clark; SBAOR 2010 President-Elect Caren Greenwood; John Noguez

Above: SBAOR 2011 President-Elect Becky Park; John Noguez

Vote John Noguez, Los Angeles County Assessor, on November 2

2010-10-22T15:03:00.000-07:00

Los Angeles County REALTOR® Associations Strongly Support John Noguez for County Assessor
Experienced Leadership is Key to Endorsements

Last October 14, surrounded by the leadership of the REALTOR® Community throughout the Los Angeles County Region, John Noguez accepted their endorsement and support for his race to become the next Los Angeles County Assessor. The South Bay Association of REALTORS® joined other Associations in the endorsement of this well-qualified candidate.

“One of the most exciting experiences of my run to be the next Los Angeles County Assessor has been the overwhelming support I have received from the REALTOR® community,” stated Noguez. “REALTORS® are uniquely qualified to appreciate the importance of the Assessor’s office and what it takes to run this critical operation. It is an honor and a compliment that so many of you have chosen me as your candidate.”

REALTOR® Associations from across the region strongly endorsed John Noguez for County Assessor. These groups include the Beverly Hills Greater Los Angeles Association of REALTORS®, the South Bay Association of REALTORS®, Rancho Southeast Association of REALTORS®, Inglewood Board of REALTORS®, Pacific West Association of REALTORS®, Southland Association of REALTORS®, Southwest Association of REALTORS®, the Citrus Valley Association of REALTORS®, the Downey Association of REALTORS®, Malibu Association of REALTORS®, Montebello Association of REALTORS® and the Tri Counties Association of REALTORS®.

Los Angeles County Deputy Assessor John R. Noguez will ensure accurate and fair assessments. He played a key role in lowering assessments and creating property tax savings for over 300,000 homeowners.
As Huntington Park Mayor and Councilman, John led the fight for the city's first Ethics Reform Law and helped reduce elected official salaries.

These are just some of the many reasons why Democrats, Republicans, and Independents all agree John Noguez is the right candidate for Los Angeles County Assessor. Remember to vote on November 2, and please vote for John Noguez for Los Angeles County Assessor.

In The Photo:
Members and leadership from REALTOR® Associations all over Los Angeles County with Assessor Candidate John Noguez. Members from the South Bay Association of REALTORS include:

Seated, front row (from left): Sheri Fejeran (2010 SBAOR Past President), Candice Carpenter, Le Francis Arnold* (2011 President-Elect, California Association of REALTORS®), John Noguez, Steve Goddard* (2010 President, California Association of REALTORS®), Paul Clark (2010 SBAOR President), David Kissinger (SBAOR Government Affairs Director).
Standing in second row, fourth from left: Mina Semenza, Tamara Suminski, Julie Lyon

* California Association of REALTORS® is listed for identification purposes only.

LACBOR Legislative Day this Friday, October 1

2010-09-29T09:07:00.000-07:00

This Friday, October 1, is the 32nd Annual Legislative Day put on by LACBOR. You are cordially invited to attend. The event starts at 8:00 a.m. downtown – and there’s free and easy parking available in the LA Music Center.

Hall of Administration, 8th Floor Patio
500 West Temple Street, Los Angeles
Free Parking (@ the Music Center)

Free Admission - Free Continental Breakfast and Lunch
8:00a.m.— 9a.m. Registration/Coffee//Fair Opening
9a.m.—12p.m. Legislative Presentations
12p.m.—1:00p.m. Buffet Luncheon
8:00a.m.—1:30p.m. Housing Fair/Exhibitors

Master of Ceremonies: John Noguez, Special Assistant, Los Angeles County Assessor’s Office
“How the State of the County affects you and your Clients"

Hear about HUD’s National “First Look Program”
Find out How Fannie Mae can Help you in “This” Market

HOUSING FAIR FEATURING:
HUD, Fannie Mae, Community Development Dept., L.A. County Assessor, Property ID, Home Inspectors and more...

Supervisors Michael Antonovich, Don Knabe, Gloria Molina, Mark Ridley-Thomas and
Zev Yaroslavsky

Home Retention Workshop, October 2

2010-09-28T15:17:00.000-07:00

Please Join Assemblymember Warren T. Furutani and Speaker Emeritus Karen Bass for a
HOME RETENTION WORKSHOP

Are you getting behind on your mortgage payments?
Are you struggling with your lender to modify your loan?
Are you underwater on your house note?

Get Help!

Take this opportunity to speak with your Assemblymember about legislative efforts to help Californians keep their homes, as well as FREE Foreclosure Prevention counseling with HUD Certified counselors.

Saturday, October 2, 2010
10:00 a.m. - 12:30 p.m.

Registration begins at 9:30 a.m.
Panel Discussion 10:00 a.m. - 11:00 a.m.
Workshop Counseling 11:00 a.m. - 12:30 p.m.

New Philadelphia AME Church - Sanctuary
19100 South Susana Rd. (Victoria Ave. & Del Amo Blvd.)
Rancho Dominguez, CA 90221

Click here for more information.

New Business Tax on REALTORS in Manhattan Beach?

2010-09-08T10:27:00.000-07:00

In mid-August, the City of Manhattan Beach once again announced it would levy a business tax on REALTORS®. Called a “punitive tax” by a member of the Manhattan Beach City Council, this tax comes at a bad time in the economy – and even in a good economy, the City has no legal authority to impose this tax.

If you live or do business in Manhattan Beach, come to the September 21 City Council hearing. If you live or do business in another city, remember that a change in business taxes could affect you too. Different cities have different ways of collecting business taxes, however we urge cities to remember these key points:

REALTORS® in California cannot legally work without a broker, and as such cannot operate as independent contractors for business tax purposes. REALTORS® should not be taxed as independent contractors for the purpose of a business license.
New taxes on REALTORS® may need voter approval, according to Proposition 218. Cities do not have the authority to simply impose a new business tax.

SBAOR has been at the forefront of this issue since last April. Media coverage includes the Daily Breeze (August 29), the Beach Reporter (August 26), and Manhattan Beach Patch (September 2).

Watch this space for additional updates on business taxes as the hearing date approaches.

FHA Reform Awaiting Senate Action

2010-08-11T10:55:00.000-07:00

NAR reported on August 2 that the House passed a stand-alone bill to increase FHA's annual premiums. FHA needs to increase premiums to restore their capital reserves fund that had fallen to .55% from the required 2%. However, NAR supports the full package of reforms included in H.R. 5072, the "FHA Reform Act of 2010", which passed the House earlier this month by a vote of 406-4. HR 5072 allows FHA to increase annual premiums, which in turn will allow them to decrease the upfront premium. The bill also includes significant lender enforcement, and increases FHA's ability to get rid of bad actors. HR 5072 is awaiting action in the Senate.

NAR Testifies Before Congress on Commercial Real Estate Liquidity Crisis

2010-08-11T10:54:00.001-07:00

On July 29, 2010, the U.S. House Financial Services Committee held a hearing on "Alternatives for Promoting Liquidity in Commercial Real Estate Markets, Supporting Small Businesses and Increasing Job Growth." Jim Helsel, 2010 NAR Treasurer and President of Helsel Incorporated REALTORS®, testified on behalf of NAR. In his testimony, Mr. Helsel stressed the importance of a sound commercial and multifamily real estate sector as the linchpin of our nation's economic recovery. Additionally, he told the committee that lack of liquidity remains a significant challenge for the commercial real estate industry.

Mr. Helsel also commended the panel for passage in June of H.R. 5297, the Small Business Lending Act of 2010 (Rep. Frank, D-MA), which ensures community banks have both the incentive and capacity to increase total loans to small businesses. Moreover, he stressed the importance of raising Small Business Administration (SBA) loan limits and allowing SBA 504 loans to be used to refinance performing property, which can help ease the liquidity crisis in the commercial real estate sector. Finally, as another credit avenue, Mr. Helsel asked members of the committee to consider H.R. 3380, Promoting Lending to America's Small Businesses Act of 2009 (Reps. Kanjorski (D-PA) and Royce (R-CA)), which would raise the credit union member business lending cap from 12.25 percent to 25 percent of total assets.

Congress Restores Funding for Rural Housing

2010-08-04T10:04:00.002-07:00

Last week Congress finally passed legislation to restore funding to the 502 single-family rural housing program. NAR reports that it had been pushing this bill, and thousands of REALTORS® had responded to Calls-for -Action to get this done! Senator Michael Bennet (CO) and Reps. Kanjorski (PA) and Capito (WV) championed this issue, that has been working its way through Congress March. The legislation will increase the guarantee fee for borrowers (but still allow it to be financed), which will make the program self-sufficient. The legislation also increases the commitment authority so Rural Housing Service can formally guarantee loans (they had been providing conditional commitments). We anticipate a notice from Rural Housing shortly after the President signs the bill.

NAR Testifies Before Congress on Commercial Real Estate Liquidity Crisis

2010-08-04T10:04:00.001-07:00

Senate Bill 375 Target-Setting Public Workshops

2010-07-15T10:26:00.000-07:00

The California Air Resources Board’s (ARB or Board) is announcing seven SB 375 target-setting public workshops throughout the State in July. Specific dates and city locations are below.

SB 375 requires the Metropolitan Planning Organizations (MPOs) in the state to add a Sustainable Communities Strategy to their regular regional planning process that is designed to look at how different land use and transportation strategies can help meet long-term sustainability goals. To help guide these regional planning efforts, ARB is to set regional passenger vehicle greenhouse gas emission reduction targets for 2020 and 2035 and update them over time.

These workshops are an opportunity for the public to participate in the first target-setting cycle under SB 375. The July workshops will include time for public comment. In addition, ARB maintains a web-based comment system to provide an ongoing opportunity for public comment throughout the target-setting process. Interested stakeholders may submit comments to ARB through the following website: http://www.arb.ca.gov/cc/sb375/comments.htm . Comments received by July 30, 2010 will be considered for ARB staff’s proposed final targets that will come out in August. Comments received after July 30, 2010 will be considered as part of the ARB Board consideration of final targets in September.

The notice, agenda, and directions to the locations for these meetings are posted on the ARB’s website at: http://www.arb.ca.gov/cc/sb375/meetings/meetings.htm. Please note the meeting information in our area:

Date: Tuesday, July 20, 2010
Time: 9:00 am – 12:00 pm
Location:
Los Angeles Metro Building
Board Chambers – 3rd Floor
One Gateway Plaza
Los Angeles, CA 90012
Webcast Available

For more information about the Air Resources Board’s SB 375 activities, please go to:
http://www.arb.ca.gov/cc/sb375/sb375.htm

DRE, state attorney general issue short-sale fraud warning

2010-06-23T13:24:00.000-07:00

California Attorney General Edmund G. Brown Jr., the California DRE, and the State Bar of California recently issued a warning to homeowners about the sudden and steep increase in short-sale fraud statewide, according to a statement released by the California Association of REALTORS®.

In the warning, homeowners, home buyers, real estate agents, and lenders were made aware of red flags that may appear when working with or paying a short-sale negotiator, including: A negotiator working without a license; charging up-front fees without prior written permission from the DRE to do so; adding surcharges and hidden fees to place an offer on a home; and misrepresenting current market conditions and only submitting offers on the property from an affiliated straw buyer.

Short sale negotiators and agents may use a variety of titles including: Debt negotiator, debt resolution expert, loss mitigation practitioner, foreclosure rescue negotiator, short sale processor, short sale coordinator, and short sale expeditor.

Homeowners wishing to file complaints related to short-sale fraud can do so by calling the attorney general’s office at (800) 952-5225 or filing a complaint online at www.ag.ca.gov/consumers/general.php. To file a complaint against a lawyer, a legal specialist, or a company purporting to operate as a law firm with the California State Bar, homeowners should call (800) 843-9053 or visit www.calbar.ca.gov.

House passes extension of National Flood Insurance Program

2010-06-23T13:22:00.000-07:00

The U.S. House of Representatives today passed a short-term extension of the National Flood Insurance Program (NFIP), funding the program through Sept. 30, 2010. The extension still must pass the Senate, which now has two flood-insurance bills to consider.

Flood insurance is required for mortgages on properties in the 100-year floodplain. Congress has allowed the program to lapse three times this year, forcing many real estate transactions to be put on hold and, in some instances, cancelled. Fannie Mae and Freddie Mac both have provided guidelines for lenders to follow in order to close loans during the most-recent lapse. Some REALTORS® also have successfully obtained private flood insurance for clients during the lapse.

Federal Tax Report: June 30 Closing Date May be Extended

2010-06-14T10:10:00.000-07:00

The National Association of REALTORS® reports that Senators Johnny Isakson (R-GA) and Harry Reid (D-NV) have filed an amendment that may be offered to a major tax and jobs bills. That bill, HR 4213, is a huge piece of legislation that would renew and extend a series of provisions (including the 15-year recovery period for leasehold improvements) through December 31, 2010. The bill also includes extensions of various government programs, including unemployment insurance and flood insurance. The bill has passed the House and is likely to be called up for debate in the Senate on or around June 15.

The Isakson-Reid amendment would apply only to purchasers who have satisfied the April 30 binding contract rule for the $8000 and $6500 tax credits. The amendment creates no new eligibility for the credit. The amendment would extend the required June 30 closing date through September 30, 2010. The introduction of the amendment does not guarantee consideration; any of several procedural obstacles could derail it. Nonetheless, NAR is hopeful that the amendment can be adopted and that the House will retain it as the bill moves to its final consideration.

Flood Insurance Update

2010-06-14T10:08:00.000-07:00

The Senate continued to debate legislation (H.R. 4213) that includes a year-long extension of the National Flood Insurance Program (NFIP). Since the bill also includes a number of contentious issues, Senate leaders continue to work to find the 60 votes needed for passage. Senate action is not expected until late the week of June 14th. Any changes made to the bill by the Senate will require the House to approve the modified measure.

Since June 1, 2010, the NFIP has not had statutory authority to issue new or renewal flood insurance policies, which are required for mortgages in the 100-year floodplain. NAR has been urging Congress not to wait for agreement on the larger package and immediately pass the NFIP extension provision as separate legislation.

Meanwhile, various lending authorities (FEMA, Fannie, Freddie, etc.) have issued guidance describing the documentation they will accept as proof of flood insurance purchase while the NFIP is shutdown.

Click here for more information.

Red Alert SB 1178 When is Enough, Enough?

2010-05-19T10:54:00.000-07:00

The Big Banks Are Opposing C.A.R.'s Bill to Protect Borrowers.

C.A.R. is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn't know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. SB 1178 will be voted on soon by the entire Senate.

One can’t help but think, “When is enough, enough?” Banks have already foreclosed upon a family’s home and now lenders can continue to hound them for additional payment. How much more money can today’s families afford to pay when they’ve already lost their homes and most likely their jobs? Are they never to have the opportunity to begin again?

California has protected borrowers from so-called "deficiency" liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires that the statute be updated.

Current law says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner's liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers who are brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law does not extend the protection for purchase money mortgages to loans that re-finance the original purchase debt -- even if the re-finance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to refinance their mortgages, yet almost no one realized that by re-financing their mortgage to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan.

C.A.R. is Sponsoring SB 1178 because:

SB 1178 is fair. Home buyers, and lenders, entered into the purchase with the idea that the mortgage would be non-recourse debt, and that the lender would look to the security (the house) itself to make good on the debt if the borrower cannot. It meets the legitimate expectation of the borrowers, who have no idea that they are losing this protection by a refinance. Home owners didn't know that their refinance exposed them to personal liability, and new tax liability, on the note. It would be unfair to allow a lender, or someone that has purchased a note from a lender, to pursue the borrower beyond the value of the agreed upon security.
SB 1178 is consistent with the intent of the original law and simply updates it for modern times. Current law was intended to ensure that if someone lost their home to foreclosure, they wouldn’t be liable for additional payment. Since the law was passed over 70 years ago, homeowners refinancing from the original loan to lower their interest rate has become a commonplace. The 1930s legislature didn’t anticipate how mortgages would change over time.
Lenders could pursue families to collect this “deficiency debt” years down the road. Under current law, lenders have up to ten years to collect on the additional debt after a judgment has been entered on the foreclosure. Years after a family has lost their home, they could find themselves in even more financial trouble. Lenders could even sell these accounts to aggressive collection agencies or even bundle them into securities. The end result would be banks who didn’t lend responsibly in the first place coming after families for even more money that they don’t have.

SB 1178 does NOT apply to “cash-out” refinances, unless the money was used to improve the home and it doesn’t apply to HELOCs. Click here for more information.

South Bay Metro Green Line Extension Community Meetings

2010-04-20T11:24:00.000-07:00

You are invited to a public scoping meeting for the South Bay Metro Green Line Extension to help us shape future transit service for the South Bay and improve mobility in southwest LA County.

These meetings are the first of many opportunities to learn about and provide input on the alternatives to be studied in the South Bay Metro Green Line Extension Draft Environmental Impact Statement/Environmental Impact Report (Draft EIS/EIR). Content presented at the meetings will be identical, so please attend at the time and location most convenient for you.

Monday, April 26, 2010
6-8pm
Nakano Theater
3330 Civic Center Dr
Torrance, CA 90503

Wednesday, April 28, 2010
6-8pm
North Redondo Senior Center
Perry Park
2308 Rockefeller Ln
Redondo Beach, CA 90278

Saturday, May 1, 2010
10am-12pm
Lawndale City Hall
14717 Burin Av
Lawndale, CA 90260

Wednesday, May 5, 2010
6-8pm
Automobile Driving Museum
610 Lairport St
El Segundo, CA 90245

Meeting Agenda
• Open House
• Presentation
• Public Comment

For more information, visit: metro.net/southbayextension. Please feel free to share this invitation with your neighbors and colleagues.

California won’t tax forgiven mortgage debt

2010-04-14T14:33:00.001-07:00

Governor Schwarzenegger on Monday signed SB 401 (Wolk) into law providing distressed homeowners with state tax exemption on debt forgiven in a short sale, foreclosure, or loan modification. Effective immediately, this bill generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by a qualified principal residence, borrowers now will be exempt both from federal and state income tax consequences. The tax exemptions apply, with certain restrictions, to debts discharged from 2009 through 2012. Californians who have already filed their 2009 tax returns may claim the exemption by filing a Form 540X amendment.

Taxpayers who do not qualify for the above exemptions (e.g., second home or rental property) may nevertheless be exempt under other provisions. Most notably, taxpayers who are bankrupt are exempt from debt relief income tax. Also, taxpayers who are insolvent are exempt from debt relief income tax to the extent their current liabilities exceed current assets.

Source: California Association of REALTORS®

$18,000 in Combined Homebuyer Tax Credits For a Limited Time

2010-03-31T09:37:00.000-07:00

Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.

Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)).

California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.

source: California Association of REALTORS®

Manhattan Beach May Consider Plumbing Retrofits at the Point-of-Sale

2010-03-16T10:09:00.000-07:00

In the Daily Breeze today:

Retrofits to buildings

Manhattan Beach. The City Council tonight will discuss possible changes to the Municipal Code concerning sustainable building practices. The measures were suggested by the city's Environmental Task Force. The South Bay Association of Realtors has concerns about a proposal that would require plumbing retrofits upon the sale or transfer of property. The meeting is at 6:30 p.m. at 1400 Highland Ave.

Flood Insurance Update

2010-03-01T10:07:00.000-08:00

Senate efforts to extend the National Flood Insurance Program (NFIP), set to expire on February 28, 2010, will continue the week of March 1. Majority Leader Harry Reid (D-NV) tried to expedite but was forced to file a procedural motion to allow a vote as early as Tuesday.

The bill (H.R. 4691) would extend the NFIP until March 28, and includes extensions of employment and COBRA (continuing health) insurance. When the bill reaches the floor, it is expected to pass by a wide margin. NAR will continue to urge the Senate to act and stress the importance of the flood program, without which many consumers would not be able to obtain a mortgage in federally designated flood zones across the U.S.

IRS to Step Up Audits of Independent Contractor Status

2010-03-01T10:06:00.000-08:00

NAR reported this week that the IRS has announced it will expand its audits of small businesses during 2010. The purpose of the audits is to assess compliance with the payroll tax requirements that fall on employers and employees and also self-employment payroll tax rules that fall on independent contractors.

The IRS is assessing compliance; it is not targeting any particular industry. These expanded audits provide a useful reminder to broker/owners to assure that they have current documents setting out the required information. Occasionally broker/owners who have been lax in their record keeping with respect to these written agreements have incurred significant penalties.

Statement on Stalled State Legislation to Extend Homebuyer Tax Credit

2010-02-25T08:44:00.000-08:00

TORRANCE, Calif. – February 24, 2010 – The South Bay Association of REALTORS® expressed disappointment that the Senate Revenue and Taxation Committee failed to act today on a bill, SB x6 4 by Senator Roy Ashburn (R-Bakersfield) and Senator Ron Calderon (D-Montebello), that would have extended the homebuyer tax credit and would have expanded it to include the purchase of existing homes in addition to new residences. This important legislation could have potentially created new jobs and enabled more families to qualify for a home.

“This bill would have extended and expanded the $10,000 homebuyer tax credit at an important moment in our economy,” said Paul Clark, President of the South Bay Association of REALTORS®. “We encourage the legislature to continue addressing the need for housing and accessible housing finance solutions such as this tax credit.”

This state tax credit would increase the demand for both new and existing homes, create new jobs and enable more buyers to qualify for a home. The National Association of REALTORS® reported on February 11, 2010 that existing home sales saw strong gains nationwide and that the federal first-time home buyer tax credit was the dominant factor.

On November 6, 2009, U.S. Congress voted to extend and expand the first-time homebuyer tax credit under the “Worker, Homeownership, and Business Assistance Act of 2009”. For more information on this legislation, go to www.REALTOR.org.

The South Bay Association of REALTORS® represents, educates and advocates for approximately 3,800 REALTORS® living and working in the South Bay between El Segundo and San Pedro, Calif.

# # #

Program to Shore Up HAMP Announced

2010-02-19T10:07:00.000-08:00

On Feb. 19, President Obama is expected to announce a $1.5 billion program to prevent foreclosures for unemployed and/or underwater home owners in the hard-hit states of California, Arizona, Nevada, Florida, and Michigan.

The program also will assist home owners prevented by second liens from getting loan modifications.

This is the second time the administration has tried to make the Home Affordable Modification Program (HAMP) more effective.

Source: CNNMoney.com, Tami Luhby (02/19/2010); National Association of REALTORS®

Foreclosure Prevention Has Aided 116,000

2010-02-19T10:03:00.000-08:00

The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.

About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners--12 percent--had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.

Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.

For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners' pre-tax income.

Nearly 60,500 people have been denied permanent modifications.

Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010); National Association of REALTORS®

Join the City of Hawthorne at its Meet & Greet and Resource Fair, January 30 at 10:30 a.m.

2010-01-19T16:57:00.000-08:00

Please join the City of Hawthorne and newly elected representatives in a Meet & Greet and Resource Fair. The fair will feature various service provider booths, emergency preparedness information and promotional giveaways.

COME MEET HAWTHORNE’S NEWLY ELECTED...
Councilwoman Angie English
Councilmember Alex Vargas
City Clerk Norb Huber

SATURDAY, JANUARY 30, 2010
10:30-2:00PM
Hawthorne Memorial Center, Sun Room
3901 W. El Segundo (at Prairie)
Hawthorne, CA 90250

WITH INVITED GUESTS
Senator
Roderick Wright
Congresswoman
Maxine Waters
Assemblyman
Steven Bradford
Supervisor
Mark Ridley-Thomas
Senator
Curren Price Jr.

IN PARTNERSHIP WITH:
THE HAWTHORNE POLICE DEPARTMENT
HAWTHORNE DEPARTMENT OF PUBLIC WORKS
HAWTHORNE PARKS AND RECREATION
GOLDEN STATE WATER COMPANY
WEST BASIN WATER MUNICIPAL DISTRICT
SOUTHERN CALIFORNIA EDISON
SOUTHERN CALIFORNIA GAS COMPANY/SEMPRA ENERGY
CALIFORNIA WATER SERVICE COMPANY
AT&T
TIME WARNER CABLE
VASEK POLAK HEALTH CLINIC / LITTLE COMPANY OF MARY - PROVIDENCE
SOUTH BAY FAMILY CENTER
U.S. CENSUS BUREAU
LOS ANGELES WORLD AIRPORTS
SOUTH BAY CITIES COUNCIL OF GOVERNMENTS
CALIFORNIA VOLUNTEERS
CALIFORNIA OFFICE OF EMERGENCY SERVICES
SMALL BUSINESS ADMINISTRATION
LOS ANGELES COUNTY FIRE DEPARTMENT
SOCIAL SECURITY ADMINISTRATION
OFFICES OF FEDERAL, STATE ASSEMBLY, STATE SENATE
AND LOS ANGELES COUNTY

EPA To Hold Listening Sessions on Wastewater Management Issues

2010-01-19T16:56:00.001-08:00

The U.S. Environmental Protection Agency is hosting several Listening Sessions across the country to obtain stakeholder input on a new rulemaking aimed at reducing stormwater discharges from new development. According to the EPA, stormwater discharges from developed sites can negatively impact water quality through increases in stormwater volume and increased levels of pollution. To address this issue, EPA recently announced its plans to propose and take final action by November 2012 on a national stormwater rulemaking. These Listening Sessions are one of the first components of this regulatory process.

NAR members will testify at Listening Sessions in Denver, Dallas and Washington, DC to express support for clean water, but also voice concern regarding the danger of excessive regulation hindering the nascent housing recovery.

VA Will Not Accept FHA Condominium Approval

2010-01-19T16:55:00.001-08:00

Effective December 7, 2009, the US Department of Veterans Affairs (VA) will no longer accept HUD/FHA condominium project appraisals in lieu of VA project review. Condominiums previously accepted by VA, based upon HUD/FHA acceptance, will continue to be acceptable to VA. This policy appears to apply to all projects whether HUD (HRAP) or lender processed (DELRAP) approved.

House and Senate Leadership Continue Negotiations On the Terms of a Final Compromise Health Reform Bill

2010-01-19T16:54:00.000-08:00

House and Senate leaders and their staffs continue to work on melding the House and Senate health reform bills approved late last year into one final compromise measure. A number of high profile issues still need to be resolved; these including (1) whether to include a single national Exchange (House) or a system of individual state-based Exchanges (Senate), (2) final thresholds for high cost health insurance plans subject to a proposed excise tax paid by insurers, (3) Medicaid eligibility income thresholds and (4) additional measures to improve and ensure affordabililty of required insurance coverages. While reports indicate that progress has been made, it is not clear when a final bill will be sent to the Congressional Budget Office (CBO) for scoring, i.e. an analysis of the proposed measure's impact and cost. A final bill will not be released until an politically-viable CBO score is received. Any final bill must then be approved by both the House and Senate.

In a January 12, 2010 letter sent to House and Senate leaders, as well as the chairs and ranking members of each of the five House and Senate Committees with jurisdiction over health, NAR stressed the importance of improving the affordability of policies available thru the Exchange by providing (1) small non-profit employers with access to the same affordability credits available to small non-profit employers, (2) equitable payroll tax treatment of health insurance premiums for the self-employed and (3) a single national Exchange, in any final bill.

Governor proposes extension, expansion of home buyer tax credits

2010-01-06T20:27:00.000-08:00

During his State of the State address, Governor Schwarzenegger today announced his 2010 proposals for California. Included in the proposals is a recommendation to set aside $200 million for a new round of $10,000 state tax credits for first-time home buyers according to reports today by the California Association of REALTORS®. The proposal expands upon the initial $10,000 state tax credit by including both new and existing homes. Last year’s tax credit applied only to new homes. The tax credit could be combined with the recently extended and expanded federal tax credit for home buyers.

Some Southern California homeowners saddled with higher flood insurance

2010-01-04T09:48:00.000-08:00

Thousands of homeowners in Southern California are forced to increase their flood insurance coverage in order to comply with new federal flood zone maps, according to the Los Angeles Times.

A report published today in the Times found that

The federal government has informed property owners in more than 150 cities and unincorporated areas in Los Angeles, Orange, Ventura, Riverside and San Bernardino counties about the new requirement...

Premiums range from $500 to more than $1,700 a year. Insurance is mandatory for anyone with a federally backed mortgage, and lenders will typically buy policies, sometimes at a higher cost, for property owners who fail to do so on their own. Fannie Mae and Freddie Mac own or guarantee more than half of all U.S. mortgages.

For the complete story, click here.

Flood Insurance Extended Through February

2010-01-04T09:47:00.000-08:00

The Defense Department spending bill recently signed into law, included a 2-month extension of the authority for the National Flood Insurance Program (NFIP), according to the National Association of REALTORS®. This gives Congress until February 28, 2010, to continue considering a range of reforms to strengthen NFIP's long-term financial viability. Without NFIP, property owners in federally designated areas across the nation would not be able to obtain a mortgage or flood insurance to protect their property. NAR will continue to work to extend the program until Congress takes up a long-term reauthorization and reform measure.

Leasehold Improvements Renewal

2009-12-16T15:15:00.000-08:00

Under current law, the cost of making improvements to leased space may be recovered over 15 years, according to the National Association of REALTORS®. This rule will expire as of January 1, 2010, however, unless Congress acts to extend it. If Congress were to fail to extend it, the cost recovery period would revert to 39 years, with the improvements being treated as part of the cost of the underlying real property.

The House of Representatives has passed HR 4213, a bill that extends this and dozens of other expiring provisions on a mostly party-line vote of 241 - 186. The bill is "paid for" by changing the tax treatment of real estate partnership carried interests from capital gains rates (currently 15%) to ordinary income treatment (as high as 39.6%). It is not known when or if the Senate will take up HR 4213 before the new year.

Deduction for Brownfields Clean-up Due to Expire

2009-12-16T15:14:00.000-08:00

Under current law, the costs incurred in cleaning up certain types of environmental contamination are deductible in the year they are incurred, according to the National Association of REALTORS®. That rule is due to expire as of January 1, 2010. The House of Representatives has extended this provision for an additional year (along with dozens of other expiring rules) in HR 4213. This bill passed December 9 on a largely party-line vote of 241 - 186. It is not known when or if the Senate will take up this bill.

Treasury Department Announces Program to Streamline Short Sales

2009-12-09T15:26:00.000-08:00

On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is component of the Home Affordable Modification Program (HAMP). NAR has been urging the Obama Administration to take action to address the many problems with short sales.

HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure of a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions in the coming weeks. Program features include: pre-approving sales terms before listing the property, prohibiting servicers from requiring reductions in real estate commissions that do not exceed 6 percent, paying incentives, releasing borrowers from future liability for the unpaid portion of the first mortgage debt, and imposing deadlines at each stage.

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements. The program sunsets on December 31, 2012.

More information here.

How walkable is your community? How much value does it add to your home?

2009-11-25T16:09:00.001-08:00

The Winter 2010 issue of "On Common Ground" published by the National Association of REALTORS® looks closely at how walkable your neighborhood is. Real close. On Common Ground writes that "more and more buyers are asking for - even demanding - homes in walkable neighborhoods."

In some cities, people "are willing to pay more for a home - or accept less in terms of square footage and amenities - in exchange for proximity to shopping, entertainment, work and school."

Just how walkable is your neighborhood?

Check out WalkScore.com, a free Web site that will take your address - anywhere in the United States - and map it with local amenities to show just how walkable (or not) it is. A score of 49 or less is "Car-Dependent", while a score of 90 or more is a "Walker's Paradise". A survey of 15 markets around the country found that "for each typical metropolitan area, each additional point of Walk Score was associated with a $700- to $3,000-increase in home values."

How walkable is the South Bay? Check out these scores, and then type in your own address:

El Segundo.....91
Carson.....68
Gardena.....91
Harbor City.....74
Hawthorne.....86
Hermosa Beach.....83
Lawndale.....83
Lomita.....75
Manhattan Beach.....82
Redondo Beach.....88
San Pedro.....95
Torrance.....69
Wilmington.....69

(Here's what it means):
90–100 = Walkers' Paradise
70–89 = Very Walkable
50–69 = Somewhat Walkable
25–49 = Car-Dependent
0–24 = Car-Dependent (Driving Only)

Fannie Mae launches new Spanish Web site

2009-11-25T16:08:00.000-08:00

Fannie Mae last week launched a Spanish version of its HomePath.com Web site designed to help more potential homeowners who speak Spanish purchase Fannie Mae-owned properties.
The new Spanish Web site mirrors the English version of HomePath.com, featuring an interactive search tool of Fannie Mae-owned properties nationwide, details about HomePath® financing, a mortgage payment calculator, property alerts, and information on foreclosure prevention and the Making Home Affordable program.

For more information about HomePath, visit www.HomePath.com and click "En Español", or for direct access to the Web site in Spanish, visit www.es.HomePath.com.

-- source: California Association of REALTORS®

Case-Shiller index improves for second consecutive quarter

2009-11-25T16:06:00.000-08:00

Home prices improved in the third quarter of 2009, posting their second quarter-over-quarter gain in three years, according to the S&P/Case-Shiller U.S. National Home Price Index, released yesterday.

The index, which covers all nine U.S. census divisions, recorded an 8.9 percent decline in the third quarter of 2009 compared with the third quarter of 2008, but an improvement over the 14.7 percent decline in the second quarter of the year. The 10-City and 20-City Composites recorded annual declines of 8.5 percent and 9.4 percent, respectively. These two indices generally have seen improvements in their annual rates of return every month since the beginning of the year.

“We have seen broad improvement in home prices for most of the past six months,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s. “The U.S. National Composite rose by 3.1 percent in both the second and third quarters of 2009. Both the 10-City and 20-City Composites posted their fifth consecutive monthly increase with September’s report. However, the gains in the most recent month are more modest than during the seasonally strong summer months.”

-- source: California Association of REALTORS®

Quick Federal Tax Credit Update

2009-11-04T16:59:00.000-08:00

The U.S. Senate voted today 98-0 to pass the Expanded Homebuyer Tax Credit (within the Unemployment Insurance Bill). It now goes to the House of Representatives. If Democratic leadership places the bill on a fast track for passage on Thursday, it could get to the President on Friday. Watch this space for more updates on this important tax credit!

SBAOR Announces Support for Candidates for Election to Local City Councils

2009-10-28T10:29:00.000-07:00

The South Bay Association of REALTORS® today announced its support for a number of candidates running for mayor or city council on November 3, 2009 in three South Bay cities, as indicated below.

“We appreciate the efforts of local citizens who want to give back to their communities by running for office,” said Sheri Fejeran, president of the South Bay Association of REALTORS®. “At the same time, as REALTORS® we are also active in our communities and we want to keep informed of the issues as we vote on November 3.”

Support announced for each South Bay City is as follows:

Hawthorne Mayor:
Larry Guidi

Hawthorne City Council:
Angie Reyes English
Olivia Valentine
Alex Vargas

Hermosa Beach City Council:
Kit Bobko
Howard Fishman
Michael Keegan

Lomita City Council:
Tim King
James Thompson

For more information, go to www.SouthBayAOR.com/governmentaffairs.

South Bay housing prices are up in September; mixed results in the market overall

2009-10-27T08:58:00.001-07:00

We just released our September 2009 housing statistics for the South Bay market. In brief: In September 2009 as compared to September 2008, median price is up while the average price is down. Months supply of nventory is way down while average days on market is generally flat. This may suggest a stabilizing lower end of the market even as the higher end is tapering off somewhat. Our full press release is available here. More information in the Daily Breeze, including data from the California Association of REALTORS®, is available here.

Chuck Bookhammer, 61: Former Hawthorne Councilmember and L.A. County Official

2009-10-19T16:17:00.000-07:00

With great sadness we note the passing of Chuck Bookhammer, 61, who had a long career in politics and government policy in Los Angeles County and the South Bay for several decades. In addition to his seat on the Hawthorne City Council, he served for many years on the staff of former Los Angeles County Supervisor Yvonne Brathwaite Burke. Following Supervisor Burke's retirement in 2008, Chuck started working in government affairs at the Los Angeles County Board of Realtors. Our condolences go out to Chuck's family as well as to his former and current colleagues in and around the South Bay.

Help Plan the Future of the Harbor Subdivision

2009-10-12T09:52:00.000-07:00

You are invited to attend a project update on the Harbor Subdivision Transit Corridor Alternatives Analysis (AA). In April and May 2009, Metro held public meetings to obtain your feedback on the four project alternatives to be carried forward through the duration of the study. Based on comments received at those meetings as well as more detailed technical analysis, Metro has completed the AA and will present the results at a series of community meetings this fall

Learn more about the project and share your comments with us at one of the following meetings:

October 19, 2009, 11am-1pm
Metropolitan Water District, Room 2-145
700 N Alameda St
Los Angeles , CA

October 19, 2009, 6-8pm
Lawndale Community Center Annex
14616 ½ Grevillea Av
Lawndale , CA

October 20, 2009, 6-8pm
Carson Community Center
801 E Carson St
Carson , CA

October 21, 2009, 6-8pm
Jackie Robinson Academy Auditorium
2750 Pine Av
Long Beach , CA

October 22, 2009, 6-8pm
Hyde Park-Miriam Matthews Library
2205 Florence Av
Los Angeles , CA

Meeting Agenda:
Open House: 30 minutes
Project Update Presentation: 30 minutes
Question and Answer Session: 60 minutes

Content presented at each meeting will be identical, so please attend at the time and location most convenient for you. For more information, call 213.922.4004 or visit metro.net/harborsubdivision.

How has the First-time Home Buyer Tax Credit Impacted Nationwide?

2009-10-12T09:40:00.000-07:00

The National Association of Realtors® has two surveys that measure the share of first-time home buyers in the market. The Home Buyer and Seller Survey is a robust survey of about 10,000 buyers conducted annually. The 2009 survey will be available in November, but preliminary data is available.

In October 2008, NAR expanded a survey of Realtor® members, the Realtors® Confidence Index, to ask about firsttime sales. Both the Realtors® Confidence Index and the Home Buyer and Seller survey indicate a 6 – 6.5 percent increase in the share of first‐time home buyers in the market when the six months following the tax credit enactment is compared with the six months prior. The Realtors® Confidence Index shows first‐time sales increasing from 33 to 39 percent of sales. Preliminary data from the 2009 Home Buyer and Seller survey shows first‐time sales increasing from 45.1 to 51.5 percent of sales. The Home Buyer and Seller survey has shown that first‐time buyer sales are consistently near the 40 percent mark through the years. However, long‐term trends are not always the best guide.

Given that tight credit markets and poor job conditions have dominated markets this year, one could expect that the share of first‐time buyers would have been much lower than 40 percent without the help of the tax credit. Seasonally adjusted home sales were 4.79 million in the six months prior to the stimulus package. By contrast, they are forecast to be 4.97 million in 2009. Multiplying the change in market share by the annual sales rate and forecast annual sales, we see an extra 357,000 to 398,000 annual first‐time sales in 2009.

Because the tax credit is currently legislated to apply only to the first 11 months of the year, the expected increase in sales as a result of the tax credit is 327,000 to 365,000. This increase is greater than was anticipated when projections were made when the credit was adopted in early 2009.

How has the First-time Home Buyer Tax Credit Impacted California?

2009-10-12T09:38:00.000-07:00

In California, the home buyer tax credit has brought in an additional 33,000 buyers into the market and 227,600 first‐time buyers will be able to take advantage of the tax credit. Detailed, state‐by‐state information is not available on first‐time buyers, but using national information from the 2009 Home Buyer and Seller Survey available in preliminary format, we can estimate the impact in a state.

According to NAR, California existing home sales in the second half of 2008 were 530,800 at a seasonally adjusted annual rate. In the first half of 2009 they were 492,400. If sales continue this trajectory—as they are expected to do nationally—they could reach 523,800 for the year in California in 2009. If the share of first time home buyers in the market is similar to the national share, first time buyers will have purchased 212,320 homes at a seasonally adjusted annual rate in the second half of 2008 and will purchase 231,428 for the year 2009.

Because the tax credit is only in effect for 11 months out of the year, the estimated impact of the credit is an increase of 33,000 first‐time buyers. 227,600 first‐time buyers in the state of California are expected to be able to take advantage of the credit.

Transfer Tax Bill Stalled

2009-09-16T13:34:00.001-07:00

C.A.R. opposed AB 827 (Yamada). AB 827 would permit counties to impose a recording "tax" up to $3 per property-related document to fund archival services. While this amount may seem small, it is only the beginning of what it is anticipated to be a growing trend of taxing property-related services to fund all manner of local government expenditures. C.A.R. is troubled that sponsors of this legislation are attempting to circumvent local voters by calling this proposal a “fee,” rather than what it really is – a tax. After a recent C.A.R. Red Alert, this week AB 827 was placed on the Inactive File by its author.

Bills to Expand Government Agency Powers Stopped

2009-09-16T13:28:00.000-07:00

C.A.R. opposed two bills that relate to the powers of the California Coastal Commission which oversees development of coastal properties. These are not just bills about the beach - the coastal commission would have extended its control over much of the population centers of California, and the bills would set dangerous precedents for state government agencies that may affect you in the future.

Both AB 226 and AB 291, not having the support necessary to pass, were placed on the Inactive File by their authors and can be voted on next year -- stay tuned.

C.A.R. opposed AB 226 (Ruskin) which proposes to expand the California Coastal Commission’s enforcement authority by allowing the Commission to impose its own civil penalties rather than pursuing fines and penalties through the courts. AB 226 would give the Commission the power to be judge, jury and executioner thereby limiting due process.

C.A.R. also opposed AB 291 (Saldaña) which would allow Commission staff to halt permit application processing for violations that have no relationship between the application and the existing violation on the parcel in question.

Study finds walkable neighborhoods command price premiums

2009-09-10T10:29:00.000-07:00

A new study says that homes located in more walkable neighborhoods command a price premium over similar homes in less walkable areas.

The study, “Walking the Walk: How Walkability Raises Home Values in U.S. Cities” was commissioned by CEOs for Cities and conducted by Joe Cortright using data from Walk Score and ZipRealty.

Key findings include:

In 13 out of 15 metro areas (sales data provided by ZipRealty), higher levels of walkability were directly linked to higher home values.
In the typical metropolitan area, a one point increase in Walk Score was associated with an increase in value ranging from $500 to $3,000. Gains were larger in denser, urban areas and smaller in less dense markets.
In the typical areas studied, the premium commanded for neighborhoods with above-average Walk Scores ranged from $4,000 to $34,000.

More info here

HUD posts FAQ on new RESPA rule

2009-09-10T10:25:00.000-07:00

The U.S. Dept. of Housing and Urban Development recently released a frequently asked questions (FAQs) concerning implementation of the new Real Estate Settlement Procedures Act (RESPA) rule, according to the California Association of REALTORS®. The FAQs were compiled from questions raised within the industry since the publication of the rule.

Some of the topics covered include requirements and delivery of the Good Faith Estimate, the HUD-1 Settlement Statement, and specific information about completion of the GFE and HUD-1 forms.

"If we learned anything from the current crisis, it's that it is hard for borrowers to make responsible decisions if they don't have all the necessary information," said U.S. Department of Housing and Urban Development Assistant Secretary for Housing-Federal Housing Commissioner David Stevens. "I believe these changes will take away much of the uncertainty borrowers have about the accuracy of disclosures."

California Coastal Commission may be given excessive judiciary powers

2009-09-02T14:12:00.000-07:00

Two bills under consideration in the California Senate, AB 226 (Ruskin) and AB 291 (Saldana), give the California Coastal Commission judicial powers and gives Commission staff new, unprecedented authority to stop permit applications.

AB 226 would greatly expand the Coastal Commission’s enforcement authority by allowing the Commission to act as both prosecutor and judge and impose civil penalties and allow the Commission to retain the penalties it assesses to augment its own budget. Currently, civil penalties are imposed by the Attorney General’s office on behalf of the Coastal Commission. Meanwhile, AB 291 would allow the staff of the Coastal Commission to halt processing of a permit application if the Commission staff asserts that any violation exists on any property for which a permit is filed.

Staff discretion does not equal due process. Under AB 291, the executive director of the Coastal Commission has sole discretion to completely halt an application for a coastal development permit without any basis other than an assertion of a violation, which may not be related to the permit application. The Commission, not its staff, is the decision-making body, and it should remain that way.

The Coastal Commission already has the necessary tools by which to enforce the Coastal Act. Besides, the Attorney General has been effective at collecting civil penalties for the Coastal Commission through the judicial system, collecting millions of dollars in fines and penalties over the years.

FHA Clarifies Position on HVCC

2009-08-31T09:17:00.000-07:00

National Mortgage News recently reported that, according to the National Association of Mortgage Brokers (NAMB), the Federal Housing Administration (FHA) will not implement the Home Valuation Code of Conduct (HVCC) for its mortgage insurance programs. According to the article, FHA Commissioner David H. Stevens met with a delegation from NAMB and discussed a variety of topics. After talking with HUD, NAR believes it is clear that FHA supports much of what the Code has accomplished. FHA is currently reviewing its appraisal policies and may adopt changes that take HVCC into account.

NAR's HVCC Web page >
Federal Housing Administration >

Green Building Code Effective This Month

2009-08-19T09:51:00.000-07:00

The state's green building code, the first of its kind in the nation, took effect August 1, the California Building Standards Commission has announced. This new code standardizes practices for reducing the environmental impact of buildings in a variety of ways. It encourages the use of renewable, recyclable, and recycled material in the building process. It also encourages the reduction of a building’s potable water use by 20 percent, and it establishes a two tiered 15 or 30 percent energy savings above current levels for all buildings through a combination of more efficient appliances and windows, better insulation, and other performance enhancing measures.

Application of the code is currently voluntary. It was adopted last year as a step toward mandatory green building standards, which Gov. Arnold Schwarzenegger has called for by 2010.

For more info:
http://www.documents.dgs.ca.gov/bsc/2009/part11_2008_calgreen_code.pdf

Independent Contractor Withholding Not in California State Budget

2009-08-19T09:47:00.000-07:00

The governor and legislative leaders reached agreement this week to bridge the $26.3 billion state budget gap, which was approved by both houses of the legislature on Friday. The agreement does NOT include the 3 percent independent contractor withholding proposal. C.A.R. aggressively opposed this over withholding scheme. The agreement includes about $15.5 billion in state budget cuts, as well as $1.2 billion in cuts to prisons, and another $4.7 billion in cuts to, and borrowing from, local governments.

Join Assemblymember Warren Furutani for Coffee and Conversation

2009-08-12T11:01:00.000-07:00

Assemblymember Warren T. Furutani invites you to bring your ideas, questions and concerns about legislative issues over a cup of complimentary coffee!

Saturday, August 159:30 a.m. - 11 a.m.
Boys & Girls Club of the South Bay
1220 W. 256th Street
Harbor City/Harbor Gateway

Stop by for a cup of coffee!

For more information, or to RSVPplease call (562) 989-2919 or click here.

NAR Responds to FHFA Guidance on HVCC

2009-08-10T09:11:00.000-07:00

On August 4, 2009, NAR President Charles McMillan sent a letter to Federal Housing Finance Agency (FHFA) Director James Lockhart addressing the agency's recent guidance on the Home Valuation Code of Conduct (HVCC). The Guidance states that HVCC should mitigate controversy by increasing protection for appraisers. In the letter, Mr. McMillan applauds FHFA for its efforts to address misinformation surround the Code but disagrees that the HVCC is appropriately dealing with the controversy surrounding the appraisal process.

NAR cites survey data that seems to indicate that the Code is creating negative unintended consequences. "According to a survey of our members, 76 percent of respondents said the length of time to obtain a completed appraisal report increased after May 1, 2009. More than one third of REALTORS® have lost at least one sale because of a delay in the appraisal process. At the same time, respondents who identified themselves as appraisers said their time frame to submit an appraisal report has decreased and half of these respondents say this impacts the quality of the appraisal report." At the same time, the cost to the consumer is increasing.

NAR Letter to FHFA on HVCC Clarification
FHFA Guidance on HVCC
NAR's HVCC Web Page

Reg Z and You: Revised TILA Disclosure Requirements Take Effect on July 30, 2009

2009-08-06T13:23:00.000-07:00

Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009 (about two months earlier than originally planned). The new rules are complex and compliance will be a challenge for lenders. REALTORS® will want to learn the basics so they can advise clients of potential delays and the new procedures. Here are key highlights of the changes:

* The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.
* Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure). The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.
Consumers may shorten or waive the 3-day and/or 7-day waiting periods for a "bona fide personal financial emergency," but only after receiving an accurate TILA disclosure. In the final rule's preamble, the Fed stated that it "believes waivers should not be used routinely to expedite consummation for reasons of convenience." The Fed decided not to insulate lenders from liaibility even where a consumer modifies or waives the waiting periods.
If the annual percentage rate (APR) changes by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan. The APR includes not only the interest rate on the loan but certain other costs related to settlement, so it will be important for any fees that affect the APR to be as accurate as possible, as early as possible, to minimize the need for a corrected TILA disclosure.

Federal Reserve Board Final Rule and Staff Commentary (Federal Register, May 19, 2009)

August Health Insurance Reform Under Review Over August Break

2009-08-06T13:21:00.000-07:00

Despite pressure from Senate leadership and the White House to move a bill prior to recessing on August 7th, Finance Committee leaders, Chairman Max Baucus and Ranking Minority Member Charles Grassley, continued to work methodically with a bipartisan group of four other Senate Finance Committee members on efforts to create a compromise bill that could successfully make it's way through the Senate. Unless unforeseen developments occur, the group of six and committee staff will continue to work through the August recess with a committee markup planned for September.

NAR continues to meet with House and Senate offices and committee staff on the various components of the reform proposals. Staff continue to analyze the mammoth bills and consult with the members of NAR's Business Issues Committee and Federal Tax Policy Committee for specific policy input. NAR has not taken a position on any of the health reform bills at this time.

Concerned with the cost of the bill and provisions that would create an optional public insurance program, the committee's moderate Blue Dog members had earlier indicated their plans to oppose the bill unless amended to address their concerns. Changes sought included cutting the cost of the bill by $100 billion by restructuring the bill's tax credits for individuals, increasing the threshold for small businesses that would be exempted from the bill's employer mandate requirements and postponing any floor consideration of the bill until after the August recess.

Visit www.realtor.org/healthreform

SBAOR Member Sandi Pfister joins NAR Leadership Academy 2010

2009-07-29T10:15:00.000-07:00

We are pleased to announced that REALTOR® and SBAOR member Sandi Pfister has been selected to join top REALTORS® around the country at the NAR 2010 Leadership Academy. The participants were chosen by a committee of peers based on an application that included their thoughtful consideration on trends and issues facing the industry as well as their leadership goals.

The first meeting of the Academy is during the Leadership Summit in Chicago this August - from there they will begin the process of expanding their leadership skills and knowledge of how NAR works. Read more about the program here.

Additional HVCC Guidance Released by FHFA, GSEs Called Good First Step by NAR

2009-07-29T10:14:00.000-07:00

On July 22, 2009, the Federal Housing Finance Agency (FHFA) released a notice on the Home Valuation Code of Conduct (HVCC). The purpose of the notice is to clarify some misconceptions around the HVCC. The notice stressed that the Code provides for communications with appraisers about errors, additional needed information and unprofessional conduct. At the same time, Fannie Mae and Freddie Mac updated their Frequently Asked Questions for HVCC.

NAR President Charles McMillan said the FHFA notice and updated FAQs by Fannie Mae and Freddie Mac are a good first step in addressing concerns with the HVCC but more needs to be done. Mr. McMillan said "our members were experiencing delayed and lost sales because of poor appraisals conducted often by inexperienced appraisers who were not familiar with the area." NAR continues to call for an 18-month moratorium to further address the unintended consequences of the HVCC.

NAR's HVCC Page

NAR Submits Letter to SBA Administrator Requesting SBA Eligibility for Real Estate Agents

2009-07-29T10:13:00.001-07:00

On July 24, 2009 NAR sent a letter to SBA Administrator Karen G. Mills requesting that any restrictions be removed to real estate agent eligibility for SBA loans. The letter from NAR President Charles McMillan states that current SBA treatment of agent eligibility is unclear and amendments to regulations should be made to clarify that real estate agents are eligible for SBA loans.

NAR Letter to SBA Administrator

Healthcare, REALTORS® and You

2009-07-20T16:40:00.000-07:00

Healthcare is heating up with both the House and Senate making moves on this massive undertaking. On July 14, HR 3200, America’s Affordable Health Choices Act, was introduced in the House. This historic legislation which covers a wide swath of health care reforms, programming and spending, has been referred to a number of House Committees for consideration. NAR is monitoring the legislation’s progress very closely. The Ways and Means Committee passed the bill on July 17, with all Republicans and three Democrats opposing. This vote signals the potential close vote when the legislation moves to the full House.

Meanwhile, the Senate Health, Education, Labor and Pensions (HELP) Committee passed its version of healthcare legislation on July 15, on a party line vote. The Senate Finance Committee is expected to introduce their version of a healthcare bill this week, with consideration to follow shortly after.

NAR’s policy staff is currently reviewing the 1,000-plus pages of HR 3200 and is drafting a fact sheet for members. There’s a lot out there right now about healthcare, and many different positions and commentary. Visit www.realtor.org/healthreform for more information.

Bill Seeks to Suspend Appraisal Code

2009-07-08T10:48:00.001-07:00

U.S. Reps. Travis Childers (D-Miss.) and Gary Miller (R-Calif.) have teamed up to champion a bill that would put a moratorium on the new Home Mortgage Valuation Code of Conduct.

HVCC is an agreement between Fannie Mae, Freddie Mac, and the New York State Attorney General that went into effect earlier this year with the aim of improving the accuracy of appraisals, although it's come under criticism in the real estate industry for causing its own problems.

Although the agreement involves the New York AG, it's being applied nationwide to all the mortgages handled by Fannie Mae and Freddie Mac.

The bipartisan legislation directs the Federal Housing Finance Agency, which is the conservator of the two secondary mortgage market companies, to suspend the code for 18 months.

Among other things, the code has been criticized by the National Association of Mortgage Brokers for delaying residential property closings and costing its members business at a critical time. Group members also are up in arms about having to pay high fees to appraisal management firms.

Source: American Banker, 06/30/09

Failed Projects Turned Into Affordable Housing

2009-07-08T10:46:00.000-07:00

Expensive cities like New York and Seattle are trying to find ways to change failed luxury projects into affordable housing for families with moderate incomes.

Seattle has a measure on the ballot in the next election that would create a fund to buy market-rate real estate developments. New York is studying a plan to subsidize unsold or half-built apartments to make them affordable for families earning between $55,000 and $158,000,

Cities need affordable housing for teachers, police, and firefighters, says Alan Berube, research director of the Brookings Institution's metropolitan policy program.

Source: USA Today, 07/01/2009

NAR Creates Flyer Using the First-Time Home Buyer Tax Credit with FHA Loans

2009-06-24T10:45:00.000-07:00

NAR has received many inquiries from our members regarding how first-time homebuyers can use the tax credit with Federal Housing Administration (FHA) loans. NAR created a flyer to help members understand how the tax credit can be used in their respective state.

The flyer identifies how to use the tax credit in one of the 11 states where housing finance agencies offer a product that monetizes the tax credit for FHA loans. It also provides some guidance for all other states where such programs do not currently exist.

NAR's FHA and the First Time Homebuyer Tax Credit Flyer

In Depth: 2009 First-Time Home Buyer Tax Credit

National Health Care Reform Debate Begins in Earnest

2009-06-24T10:38:00.001-07:00

Building off of two years of formal hearings and discussions, the health care reform debate has begun in earnest in Washington, D.C. Congress has set an aggressive timeline for debate with the goal of delivering a final bill to President Obama by October 15.

Five committees - Senate Health, Education, Labor and Pensions, Senate Finance, House Energy and Commerce, House Education and Labor and House Ways and Means - are involved in drafting health reform legislation. In the Senate, two bills, introduced by HELP Committee Chairman, Edward Kennedy (D-MA), and Finance Chairman, Max Baucus (D-MT) respectively, will be considered and then conferenced into one bill that will be put before the full Senate. In the House, the process will be more simple as the three chairs of the respective committees, Henry Waxman (D-CA), George Miller (D-CA) and Charles Rangel (D-NY), plan to introduce a single joint measure.

As outlined, all three bills would provide the self-employed, small employers and those without employer-provided insurance with access to an Exchange that would offer an array of private insurance products that are governed by a uniform national set of rating and underwriting rules. Insurance products offered through an Exchange would available to all eligible applicants regardless of their health history, be guaranteed to be renewed, and would not contain any pre-existing condition exclusions.

In addition, premiums would be set on the basis of a limited number of factors - type of policy, geographic location and age - that would not include health status or claims history. By establishing new rating rules, standardizing administrative functions and creating larger pools of insureds, proponents of the bills believe that premiums will be reduced

NAR has already submitted comments to the Senate HELP Committee on the Kennedy measure and will comment on each of the other proposals as they are released. While much remains to be determined and all proposals will be much amended, many of the elements of the NAR-supported Small Business Health Options Program Act (SHOP) have been, or are expected to be, incorporated into the drafts.

Freddie Mac modifies Relief Refinance Mortgage program

2009-06-17T16:36:00.001-07:00

Freddie Mac recently announced several changes to its refinance offering under its Relief Refinance Mortgage program, designed to assist borrowers who are current on their mortgage payments but would benefit from refinancing into mortgages with terms that better position them for long-term homeownership.

Borrowers now will be able to refinance a Freddie Mac-owned or guaranteed mortgage with any lender affiliated with Freddie Mac, rather than the lender currently servicing their mortgage. Freddie Mac also is increasing the amount of closing costs that can be rolled into the new refinance mortgage.

Borrowers can continue to work with their existing servicer to refinance their mortgage; in most cases the current servicer will not have to re-underwrite the borrower. Freddie Mac will allow the lesser of 4 percent of the new refinance mortgage amount or $5,000 of closing costs, financing costs, and prepaids/escrows to be rolled into the new refinance mortgage. Freddie Mac’s standard postsettlement delivery fees, up to a maximum of 2 percent, will apply to the Relief Refinance Program.

More info here.

Counties Absorbing Huge Cuts in Property Tax Revenue

2009-06-17T16:06:00.000-07:00

The Los Angeles County assessor's office announced that it has reduced assessments for 333,000 county homeowners, leading property tax revenue to drop for the first time in recent years. As a result, the county expects to lose about $440 million in property tax revenue, a 1% decrease that county officials had anticipated.

Orange County officials also expect about a 1% decrease, with about a third of the 300,000 homes reviewed receiving reductions, according to Shaw Lin, the assessor's management services manager.

Neighboring counties hard hit by the housing slump face far steeper decreases in property assessments. In Ventura County, officials said property tax revenue is expected to drop 5%; in San Bernardino County, nearly 8%; and in Riverside County, up to 11%.

Riverside County officials described the drop in property tax revenue as the largest in 20 years, spurred by building booms that went bust in places such as Murrieta, Menifee and Desert Hot Springs.

More info here.

Get Your $8,000 HUD Tax Credit Now

2009-06-17T16:05:00.000-07:00

Qualified, first-time home buyers using a Federal Housing Administration (FHA)-insured mortgage now can apply the $8,000 federal tax credit toward their down payments, the U.S. Dept. of Housing and Urban Development (HUD) recently announced.

Currently, borrowers applying for a FHA-insured mortgage are required to issue minimum down payments of 3.5 percent. Buyers still must come up with the mandatory 3.5 percent down payment, but the tax credit now can be used as an additional down payment, or for other closing costs, which can help lower principal balances and monthly payments. The home buyer may access their tax credit through participating FHA approved lenders (a small fee will likely be assessed) or a participating non-profit. This may be done through either the purchasing of the home buyer’s tax credit or through a bridge loan.

While HUD allows for state Housing Finance Agencies to offer the tax credit up front to the home buyer, CalHFA like other state programs is experiencing a shortage of capital and is unlikely to offer such a program.

More info here.

California Foreclosure Prevention Act Goes Into Effect June 15th

2009-06-17T16:02:00.000-07:00

On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7, the "California Foreclosure Prevention Act" which modifies the foreclosure process to provide additional time for borrowers to work out loan modifications while providing an exemption for mortgage loan servicers that have implemented a comprehensive loan modification program. Civil Code Section 2923.52 requires an additional 90-day period beyond the period already provided before a Notice of Sale can be given in order to allow all parties to pursue a loan modification to prevent foreclosure of loans meeting certain criteria identified in that section.

A mortgage loan servicer who has implemented a comprehensive loan modification program may file an application for exemption from the provisions of Civil Code Section 2923.52. Approval of this application provides the mortgage loan servicer an exemption from the additional 90-day period before filing the Notice of Sale when foreclosing on real property as designated by this Section.

Below is a timeline for the adoption of regulations under this new law. The new law will be operative 14 days after the issuance of regulations. As set forth in this timeline, the anticipated operative date of the law is June 15, 2009.

The Application for Order of Exemption from Civil Code Sction 2923.52(a) California Foreclosure Prevention Act is available on the DOC website.

Real estate licensees may file this application with the DRE at the following address:

Foreclosure Exemptions - Department of Real Estate

P.O. Box 187007

Sacramento, CA 95818-7007

Applications may also be submitted by e-mail to foreclosures@dre.ca.gov.

On June 15, 2009, the law will become operative.

find the article at: http://www.car.org/tools/smart/new/foreclosurepreventionca/

NAR Jumps Head First into the Healthcare Debate

2009-06-12T11:02:00.001-07:00

With nearly one-third of REALTORS® lacking ANY health insurance and hundreds of thousands more struggling to pay ever increasing premiums, health reform is an issue of critical importance to our membership.

The goal of the National Association of REALTORS® is to work in partnership with state and local associations in order to create access to affordable health coverage for the self-employed, independent contractors and small businesses. This month, members will be asked to send questions related to health care to NAR. Additional resources will be posted on REALTOR.ORG/healthcare starting Monday, June 15. Watch this space for future developments on this critical issue that impacts our members and their families.

New State Senator is sworn into office; upcoming special election to fill Assembly seat

2009-06-12T10:59:00.000-07:00

SBAOR congratulates former Assemblymember and now newly-elected State Senator Curren Price (D-26) who was just sworn into office this week. A special election will soon be called to fill his empty seat in Assembly District 51, which includes Gardena, Hawthorne, Inglewood, and Lawndale.

U.S. Regulator: Be Wary of Reverse Mortgages

2009-06-12T10:54:00.000-07:00

Some industry analysts, including U.S. bank regulator John Dugan believe that reverse mortgages could be the next subprime mortgage product to gain traction. Dugan says that while reverse mortgages can be beneficial, they also share some of the characteristics of the riskiest types of subprime mortgages.

Although the majority of reverse mortgages is insured by the Federal Housing Administration and poses limited credit risk, a different class of reverse mortgages is becoming popular--“proprietary” products--which offer less consumer protection.

To protect consumers, regulators are crafting guidelines and Dugan is recommending that regulators be more vigilant about misleading marketing and cracking down on lenders who try to bundle a reverse mortgage with other financial products, such as an annuity or life insurance product.

To read the full story, please click here.

Source: CNN and the California Association of REALTORS®

FHA Cracks Down on Mortgage Brokers

2009-06-12T10:48:00.000-07:00

The Federal Housing Administration is tightening its review of mortgage professionals that are allowed to originate loans.

The Department of Housing and Urban Development requires brokers who originate FHA loans to obtain approval through the agency. People convicted of making fraudulent loans will be barred from the program. Previously, companies were penalized, but individual employees were not.

Richard L. Tracy Jr., a board member of the Connecticut Society of Mortgage Brokers and an FHA-approved lender, says the changes “will go a long way toward getting out the marginal players.”

Source: The New York Times, Bob Tedeschi (06/05/2009) and the National Association of REALTORS®