Are you ready to say goodbye to your mortgage deduction?

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.

LACBOR Legislative Day this Friday, October 1

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

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?

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

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

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

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

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.
(source: National Association of REALTORS®)

Senate Bill 375 Target-Setting Public Workshops

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

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

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

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

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?

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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.