Lame Duck Congress hobbles to the end of its session; fails to authorize terrorism risk protection

This week, the late fall Lame Duck session of the U.S. Congress lurched to a halt as lawmakers wrapped up a flurry of business and rhetorical drama and then went home for the holidays. Perhaps in the rush to get out of town, Congress shockingly failed to renew the bipartisan Terrorism Risk Insurance Act (TRIA).

NAR has expressed concern that failure to pass TRIA would stall commercial real estate development projects all over the U.S. that depend on it. By the time that the Lame Duck session of Congress closed on December 16 at 11:25 p.m., the Senate had reached a "unanimous consent agreement" which would have allowed TRIA to proceed, despite the fact that TRIA had passed in the House of Representatives with significant bipartisan support.

In a statement issued today, NAR said that "despite this temporary set-back, REALTORS® will work closely with Congress in 2015 to swiftly reenact TRIA and provide much needed certainty to the commercial market."

REALTORS meet Torrance Mayor Pat Furey

Today the South Bay Association of REALTORS^® held the latest in its popular series, "Breakfast with the Mayor" and welcomed Torrance Mayor Pat Furey to a full room at the Marriott Hotel in Torrance.

Members of SBAOR had a great opportunity to meet the new mayor, just 142 days after he was installed in office. Mayor Furey talked at length about his vision for the city, the great accomplishments of his colleagues on the City Council and the work that remains to be done.

In recent years, the mayor noted, many residents were complaining about the poor quality of the streets and sidewalks. Now the city has embarked on an aggressive program to repave, seal, or repair local streets, sidewalks and infrastructure. Even at the risk of new rounds of complaints for construction traffic, the city is clearly on the right track.

In addition, Mayor Furey talked about Torrance as an attractive hub for businesses looking to locate in Los Angeles County. With the disappointing departure of Toyota that was announced more than a year ago, the mayor has not rested and he is working hard to attract large businesses and their investments and jobs to the city.

SBAOR hosts the Breakfast with the Mayor series approximately four times per year. Stay tuned in 2015 for more opportunities to get to know the elected leadership of our cities in the South Bay.

From left: SBAOR 2014 President-Elect Michele Brown; Torrance Mayor Pat Furey; SBAOR 2014 President Tamara Suminski

Torrance Mayor Pat Furey address REALTORS at SBAOR's "Breakfast with the Mayor"

REALTORS South Bay Election Wrap-Up: The Hangover, Part 4

The morning after the November 4 mid-term elections, President Obama woke up to a fresh new set of headaches after the Republicans strengthened their grip on the House and took possession of the Senate. Sen Mitch McConnell (R-Ky) not only did not lose his reelection but now he finds himself in a new job – Senate Majority Leader. In his election night victory speech, McConnell reiterated his opposition to the President’s agenda and then in the next breath said that his party was obligated to work with the President in governance where they can.

"I don't expect the president to wake up tomorrow and view the world any differently than he did when he woke up this morning," McConnell said. "He knows I won't either. But I do think we have an obligation to work together on issues where we can agree. Just because we have a two-party system doesn't mean we have to be in perpetual conflict." - NPR

In keep with REALTOR® profession’s support for nonpartisanship, such cooperation and adult supervision can only be hoped for.

Locally, California did not disappoint in its tendency to move in the opposite direction of national trends. The Democrats racked up impressive victories, except for a few surprises that have direct impact on the South Bay. The turnout in Los Angeles County was reported to be 25%. Here is a run-down of local elections results that impact REALTORS® in the South Bay:

California Governor

“I’m surprised that Jerry Brown won reelection,” said no living human being ever. The governor’s race was called for Brown early on election night when barely 16,000 votes had been counted. Jerry Brown easily won reelection with almost no campaigning, 66% - 33%.

County Supervisor, 3^rd District

Sheila Kuehl edged out Bobby Shriver to replace the legendary Zev Yaroslavsky for the powerful county district that represents most of West Los Angeles. Both Democrats in a non-partisan race, each one tried to run to the left of the other in this very liberal-progressive district. Shriver was heavily supported by the business community and by REALTORS®.

Congressional District 33

Democrat Ted Lieu (supported by RPAC) defeated Republican Elan Carr 58% - 41%. Ted will soon catch a plane to take the loneliest job in the world – that of freshman Democrat in the current U.S. Congress.

Congressional District 43

To little surprise, the formidable Maxine Waters defeated Republican challenger John Wood, 70% - 30%. Waters was supported by RPAC.

Congressional District 44

To even less surprise, incumbent Democrat Janice Hahn defeated challenger Adam Shbeita, 87% - 12%. Hahn was supported by RPAC.

State Senate District 26

Ben Allen comfortably beat out Sandra Fluke to this seat by a margin of 60% - 39%. CREPAC did not take a position on this race.

Assembly District 64

Mike Gipson, currently a Councilmember in Carson, defeated Prophet Walker by a margin of 64% - 36%. Gipson ran a textbook campaign, with a strong ground game and constant presence on social media. Gipson was supported by CREPAC.

Assembly District 62

Democrat Autumn Burke (75%) defeated Republican Ted Grose (25%) and extended the political dynasty of her family as the daughter of Yvonne Burke, the retired LA County Supervisor. Burke was supported by CREPAC.

  

Assembly District 66

Republican challenger David Hadley launched an early, grassroots-y campaign and sprinkled the district with signs, perhaps before many of incumbent Al Muratsuchi’s own signs appeared. Late in the campaign, Hadley’s supporters fired a barrage of negative attacks over social media, while Muratsuchi’s campaign hit back with news about contributions to the Hadley campaign. As of election night, David Hadley squeaked past Al Muratsuchi, 51.43% to 48.57%, or a margin of 2,329 votes. At the date of this writing, the California Secretary of State has labeled this race as a “Close Contest” where there is a margin of less than two percentage points between the candidates. In these races, election officials make take up to 28 days after the election to fully count all provisional ballots and vote-by-mail ballots. Muratsuchi was supported by CREPAC.

Los Angeles County Sheriff

Jim McDonnell, currently the Long Beach Police Chief, cruised to an easy victory over Paul Tanaka, currently Mayor of Gardena and retired commander of the Sheriff’s Department. The margin was 75% - 25%.

Los Angeles County Assessor

In another squeaker, Jeff Prang (50.52%) inched past John Morris (49.48%) to win the race for County Assessor by a margin of 9,036 votes. Conventional wisdom had pegged Prang to easily win this race, however it proved difficult against Morris. Prang and Morris had both picked up support from various REALTOR® associations throughout the county. It is expected that Prang will watch an old VHS of the 1972 Robert Redford movie “The Candidate”, and then walk into the tattered Assessor’s office and say, “What do we do now?”

BALLOT MEASURES

State Measure 1: Water Bond

Jerry Brown stumped hard for this water bond measure, which easily won 70% - 30%. 

Hermosa Beach Special Measure Q

A school Improvement bond, Measure Q failed with Hermosa Beach voters by a thin margin of 52% - 47%. It needed 55% to pass.

Santa Monica Transfer Tax

Two measures were on the ballot, Propositions H and HH, which collectively sought to raise the documentary transfer tax for affordable housing funds. Proposition H sought to triple the documentary transfer tax to $9 per $1,000 of sale price. Proposition HH was an advisory only regarding the use of transfer tax revenues for affordable housing purposes. In a split vote, Proposition H lost by a wide margin of 57% - 42%, while Proposition HH won 50.08% - 49.92%, a razor-thin margin of just 35 votes. Despite the victory of the advisory item in HH, it is currently not meaningful given the failure of the actual proposal to raise the transfer tax.

County Measure P

A $23 parcel tax to pay for parks (“P” for “parks”, get it?) passed 62% - 37%. In its opposition to this measure, the Los Angeles Times complained that the County Supervisors’ process for slipping this measure onto the ballot was typical of their closed-door, super-secret style of governance.

Manhattan Beach REALTORS host Mayor Wayne Powell

Members of the South Bay Association of REALTORS^® hosted newly-installed Mayor Wayne Powell to a well-attended breakfast meeting and heard an overview of pressing issues in the city. Mayor Powell's talk included plans for rezoning the Manhattan Beach downtown area which may affect how real estate offices can locate themselves in that highly desirable corridor of commercial real estate.

City Councilmember Wayne Powell took on the rotating role of Mayor in October, following Councilmember Amy Howorth who was previously Mayor of the city. Mayor Powell covered quite a bit of ground, discussing a wide range of issues.

Whither downtown?

The long, ongoing saga of downtown continues forward with important steps to help residents, businesses and other stakeholders weigh in on downtown's future. The City of Manhattan Beach has entered into a contract with the highly-respected Urban Land Institute (ULI) to interview key stakeholders and prepare a report which will help the City Council determine the next steps in this process.

SBAOR applauds the selection of ULI and looks forward to working closely with ULI, the City Council, and other stakeholders to help lay the groundwork for a vibrant Manhattan Beach Downtown for years to come.

This event was the latest in SBAOR's popular "Breakfast with the Mayor" series, with more than 90 people in attendance. Watch this space and mark your calendar for the next event, "Breakfast with the Mayor of Torrance, Pat Furey" on December 4, 2014.

From left: SBAOR President-Elect Michele Brown, Manhattan Beach Mayor Wayne Powell, SBAOR President Tamara Suminski, SBAOR Government Affairs Chair Mina Semenza

Mayor Wayne Powell addresses a sellout crowd at SBAOR's Breakfast with the Mayor

Members of SBAOR Community Committee and Government Affairs Committee with Manhattan Beach Mayor Wayne Powell 

Green is the new color for the holidays! Free holiday light exchange, November 13-14

The South Bay Association of REALTORS® is proud to be a sponsor of this year's Free Holiday Light Exchange!

Trade one working string of old, electricity-guzzling incandescent holiday lights, for one new, energy efficient LED. Quantities are limited. Trade-ins are first come, first served, while supplies last and limited to one box per household. Participants must be a SCE or DWP customer and must bring a utility bill or driver’s license.

This event will be hosted by our friends at the South Bay Environmental Services Center. Stop by or go to their website for more information on greening your listings.

Location: 20285 S. Western Ave., Suite 100, Torrance, CA 90501

For more information call (310) 371-7222

Download Flyer Here

Only SCE and DWP customers in the following cities are eligible for this program: Carson, El Segundo, Gardena, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Es-tates, Torrance, and the communities of San Pedro, Wilmington, Harbor City/Harbor Gateway and L.A. County unincorporated areas of the South Bay as defined by the SBCCOG borders. This program is partially funded by Sponsors listed on flyer and California utility customers and administered by Southern California Edison under the auspices of the California Public Utilities Commission. Terms and conditions apply.

High home prices and all-cash buyers impact housing in Manhattan Beach

It is no secret that the Beach Cities (Manhattan, Hermosa, Redondo) just south of LAX have been hotbeds of high home prices for a number of years. This year in particular, however, is a busy year for high-end real estate sales.

The Daily Breeze on October 12 looks at million-dollar-plus home sales and all-cash sales in Manhattan Beach. Several REALTORS in the Beach Cities were interviewed for this story.

Cash becoming king in South Bay housing market

Manhattan Beach REALTORS! Beat the heat with Chamber event this week: (365) Days Of Summer

365 Days of Summer Networking Event 

presented by Guaranty Escrow on September 17th at Pages: a bookstore and Guaranty Escrow in downtown Manhattan Beach. 

Enjoy beer by Sam Adams and cider by Angry Orchard, wine and delicious bites from Circa as you build your network.

More information and registration from the Manhattan Beach Chamber of Commerce here! 

REALTORS meet with Mayors of El Segundo and Lawndale

SBAOR was pleased to welcome the Mayors of two of our cities, El Segundo and Lawndale, to have breakfast with REALTORS® active in and around those cities. The Breakfast with the Mayor series is one of our most popular events and features mayors from around the South Bay several times a year. Stay tuned for the next event coming to a South Bay city near you!

El Segundo Mayor Suzanne Fuentes

Lawndale Mayor Robert Pullen-Miles

From left: David Kissinger, Mina Semenza, Mayor Robert Pullen-Miles, Mayor Suzanne Fuentes, Michele Brown, Paul Clark

From left: Sandi Pfister, Jack Pharris, Venest Henry-Evans, Irma Vasconcelos, Mayor Robert Pullen-Miles, Mayor Suzanne Fuentes, Janet Palacios, Sallie Montgomery, Tashia Hinchliffe, Suzan Carne, Novelette Witt

A capacity crowd of REALTORS® meeting with the Mayors of El Segundo and Lawndale

Alert! Don't let Sacramento cloud title any further with new wage liens on your property!

The California Association of REALTORS^® is OPPOSING AB 2416 (Stone), a bill that creates a new kind of lien for wage claim disputes. C.A.R. opposes AB 2416 because it denies due process to the owner of the property, and unnecessarily clouds title. The bill was just passed by the Senate Appropriation Committee and could make it to the Senate floor by Monday August 18th.

Call your State Senator TODAY and ask him or her to vote NO on this killer bill.

REALTORS^®: Check your email for an alert from C.A.R. and follow the instructions to call in and make your voice heard!

Background

Under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. This bill is not like a mechanics' lien. Additionally, if an employee has a wage dispute with their employer there are multiple legal remedies available to them to seek fair compensation. This is a new and different remedy.

AB 2416 seeks to create a new wage lien, without the procedural protections of the mechanics lien so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. The new rule purports to exempt principal residences, but the bill invites "shotgun" recordings that will hit all properties. 

Remember:

• Property owners are denied due process. AB 2416 allows an employee to record a lien against an employer’s property without adequate notice or opportunity to contest the claim before the lien attaches.

• The bill invites misuse by unscrupulous creditors of an employee. Allowing unscrupulous creditors to take over the employee's wage claim, without even the need for a garnishment order, invites employees (and property owners) to be victimized twice.

• Innocent property owners are unfairly burdened. The bill allows a lien against commercial property of a landlord whose tenant has a dispute with one of his or her employees.  

• AB 2416 allows an employee’s wage dispute to cloud title on ALL property owned by an employer even though the dispute does not involve the property, and even though there has been no hearing on the issue.

• There are already existing legal remedies for wage disputes. Between arbitration, grievance processes, and lawsuits, employees already have sufficient legal options at their disposal to address wage disputes without chilling the availability of mortgage finance and unnecessarily clouding title.

For More Information

Please contact DeAnn Kerr at deannk@car.org or Rian Barrett at rianb@car.org

Accuracy Matters as REALTORS Consider the Impacts of Zillow+Trulia

The merger announced today between Zillow and Trulia led to endless conversations between and among REALTORS all over the United States. What will be the ultimate effect of this merger on organized real estate?

Even months before this merger was announced, many REALTORS expressed concerns that the data published by third-party aggregators such as Zillow and Trulia is not completely accurate. This makes the working REALTOR's job that much more difficult as they represent their client's interests in obtaining the best price for their purchase or sale of real estate.

In fact, technology already has had a significant impact on REALTORS and real estate in the past few years. In the end, consumers and potential home buyers and sellers still want the care and consideration of an actual human being - a REALTOR - who walks them through the process, the paperwork, the disclosures, the process of moving, heck even the therapy of going through a home sale.

The 2014 President of the South Bay Association of REALTORS, Tamara Suminski, told the Los Angeles Times today that "there's a limit to the consumer empowerment that such sites can provide."

Tamara's comments on Zillow+Trulia continue:

"Zillow's algorithms can't help a buyer understand more complex issues that affect value, such as the discount that they should expect for a home being in a seismic hazard zone. And buyers still need agents to help them navigate the mountains of legal paperwork that go with every deal."

Ultimately, buying and selling a home is about more than just numbers.

"But the need for a Realtor I don't think will ever go away."

Manhattan Beach ready to ban real estate storefront offices while it studies the matter

ALERT! We have reported a few times about the proposal in Manhattan Beach to ban banks and real estate offices from retail storefronts in the downtown Manhattan Beach business district. This unfortunate proposal lurches another step further as the City Council on July 15 considers a temporary ban while they retain a consultant to study the issue further.

What exactly is at stake? Specifically, the July 15 ban is on conversions from retail space to office space. It does not ban a new retail store going into an existing retail space or a new office going into an existing office space.

In fact, the City does not actually ban real estate transactions. However, real estate professionals will tell you that without the ability to get permits from the City, no transaction will happen anyway.

While we understand and are concerned about the economy's impacts on retail, targeting offices is not the answer. SBAOR remains opposed to this move and suggests that banning any kind of land use in downtown Manhattan Beach will not save the lucky ones left over who are still allowed to open up shop downtown.

Carson City Council asked to support changing Prop 13

ALERT! The Carson City Council on July 15, 2014 will consider supporting a significant change to the landmark Proposition 13, which is protected your property tax rates for several decades.

Property tax rates can only be changed in Sacramento. So why are city councils and school districts all over the state being asked to support such a radical change to our laws?

The proposal before the Carson City Council asks for support of so-called split roll taxation, which considers residential and commercial real estate differently. Sounds great so far, right? After all, sometimes large commercial buildings are not "sold" but are transferred by way of a stock transfer or other means, so no tax assessment is triggered.

What is not discussed, however, is the number of jobs and local businesses supported in those same commercial buildings. A combination of tax hikes and even the uncertainty of potential tax hikes could have devastating consequences. At greatest risk are the local folks who are living in those same residences protected by Prop 13 and whose jobs could be crunched by their commercial spaces facing higher and higher costs.

Too little is understood about the impact of split roll. Tell Carson City Council to Just Say No and save the local community from a little-known fate.

REALTORS Join South Bay Community to Honor LA County Supervisor Don Knabe

Top Photo, from left:  Matt Garth, Cheryle Ushkow, SBAOR President-Elect Michele Brown, SBAOR Past President Paul Clark, Government Affairs Committee Chair and Gardena City Clerk Mina Semenza, SBAOR Past President Carol Olney, LCRC Chair Jessika Werchick, SBAOR President Tamara Suminski, David Kissinger, SBAOR Past President Sandi Pfister

SBAOR was proud to be a part of the Torrance Chamber's "Lunch with Our Leader" featuring County Supervisor Don Knabe. During his remarks he reflected on the future of our region and he emphasized several times the importance of working together across party lines.

There is not a Democratic way or a Republican way, he said, to improve streets, schools and jobs. He also noted that, by the time he leaves office in 2016 the Board will have a brand new cast of Supervisors with control and influence over the vast array of services offered by Los Angeles County.

REALTORS® had a strong presence at this important annual event alongside leaders in the South Bay, including newly elected Torrance Mayor Pat Furey, Lawndale Mayor Robert Pullen-Miles, Gardena City Clerk Mina Semenza and other public officials plus volunteers, residents and business leaders.

Renting out your Hermosa Beach property to tenants this summer? What you need to know

With June’s arrival, we are now entering the busy summer rental season.  It’s also a great time to remember your rights and responsibilities as a property owner and how the behaviors of your tenants can affect you.
As we advised you last year, the City of Hermosa Beach will be increasing public safety efforts and will triple its law enforcement staff – as well as fines - during holidays such as the Fourth of July.

City of Hermosa Beach, http://www.hermosabch.org.  Photo credit: Hermosawave Photography

SBAOR is working with our friends and partners at the City of Hermosa Beach in order to ensure a fun and safe summer holiday, especially during celebratory weekends such as July 4. If you or your client is a property owner or property manager for a site in Hermosa Beach, please remember your rights and responsibilities regarding your property and your tenants.

As a courtesy to city officials, SBAOR has released the following letter to our REALTOR members as we approach the summer vacation season. As always, advise your tenants of their own rights and responsibilities while they are in your units.
If you or your tenants observe any activity that may risk public safety or personal security, you are urged to call 9-1-1 or, for non-emergencies only, the main police department contact number (310) 318-0360.

SBAOR's letter to our members is as follows:

Dear REALTOR®:

As you may know, the Fourth of July draws large crowds to Hermosa Beach each year, and it has become a favorite destination for parties that can cause disturbances and impact public safety.  Last year, the City of Hermosa Beach increased law enforcement efforts to ensure a safe holiday season, and will continue to do so again in 2014. The City is enlisting more than 100 police and security patrols to blanket the beachside city starting at 10 a.m. on July 4th.

The City is asking for your help in urging everyone to celebrate the Fourth of July responsibly to ensure the public’s safety and the protection of all property owners’ rights. All property owners who lease their property to others should urge their renters to take precautions to ensure their celebrations don’t disturb their neighbors or spill onto public property. This means that no household parties can be extended onto the Strand.

The City also would like to inform property owners that they may be held responsible for their renter’s actions. The Hermosa Beach Police Department will be invoking a city code that could trigger a sizable financial assessment against property owners – whether or not they are present at the time the police arrive. If the police receive complaints about noise or other problems at the property that results in more than one response to the property on July 4, they will charge the property owner for the cost of that or successive police responses.

Please help us in supporting the City’s efforts and protecting your rights as a property owner to advise residents of the strict enforcement of laws banning driving under the influence, public intoxication, underage drinking, drinking on the beach, public urination and excessive noise on private properties.

It is clearly in all our interests to help ensure responsible celebrations so that visitors and residents alike can enjoy a happy and peaceful Fourth of July. Please join us by sending this message along to your clients and to renters in the properties you manage.  Together, we can make this a great holiday for everyone in Hermosa Beach.

Sincerely,
Tamara Suminski
President

Elections Wrap-Up: June 2014 California State Primary

The night of June 3 was the culmination of a very busy primary election season that is also a sign of an equally busy General Election in November. The Los Angeles County Registrar reports an overall statewide voter turnout of 13.19% votes cast. Not very high. Below are the results for a number of local elections of interest to us here in the South Bay:

Torrance

Pat Furey won the race for Mayor of Torrance with a 41% of votes, a comfortable 5% ahead of the second-place finisher, Tom Brewer. Candidate Bill Sutherland, supported by SBAOR, came in third at 23.6%. The Daily Breeze reports that it is expected the new City Council will appoint a new member to complete Furey’s two remaining years in his council term. Click here for local coverage of the Mayor’s race.

Of the sixteen candidates running for City Council, the four winners are:
•    Heidi Ann Ashcraft (appointed incumbent): 13.4%
•    Tim Goodrich: 12.0%
•    Kurt Weideman (appointed incumbent): 11.25%
•    Geoff Rizzo: 9.9%

Senate District 26

This nail-biting and widely watched Senate race ended with a Cinderella story out of nowhere as Santa Monica School Board Member Ben Allen (D) and attorney Sandra Fluke (D) sailed past favorite candidates to qualify for the November runoff. Allen received 21.8% while Fluke received 19.7%.

Former Assemblymember Betsy Butler (supported by CREPAC) came in fourth with 16.7% while Manhattan Beach Mayor Amy Howorth picked up 15.5%. News on this race here.

Congressional District 33

The race to fill the shoes of Rep. Henry Waxman turned into a traditional partisan battle, with Republican Elan Carr as the top vote-getter at 21.5% and Democrat Ted Lieu at 19.0%. Former Los Angeles Councilmember and Controller Wendy Greuel came in third with 16.8%, followed by published author Marianne Williamson (12.9%) and KCRW host Matt Miller (12.0%). The Los Angeles Times weighs in here.

Congressional District 43

Incumbent Democrat Maxine Waters (67.2%) will face Republican John Wood (32.8%) in November.

Los Angeles County Assessor

West Hollywood Councilmember/Mayor Jeff Prang will face Deputy District Attorney John Morris in the November runoff, as both candidates attempt to expiate the Assessor’s Office of its troubles from the previous Assessor. Prang has been supported by a number of REALTOR® association in Los Angeles County.

Los Angeles County Sheriff

Long Beach Police Chief Jim McDonnell came within a handful of votes to win Sheriff outright. However, he ended the night with a remarkable 49.2% of the votes and will face Gardena Mayor Paul Tanaka, who came in a distant second place with 14.7%. Click here for media coverage of this race.

Assembly District 62

Autumn Burke, daughter of retired County Supervisor Yvonne Burke, was heavily favored by the Democratic Party and supported by CREPAC. She was the top vote-getter at 41.2% and will face Republican Ted Grose who got 20.0%.

Assembly District 64

Carson Councilmember Mike Gipson, supported by CREPAC, won 51.1% of the vote and will face second-place finisher Prophet Walker, who got 21.4%. Long Beach Councilmember Steve Neal came in third at 15.0%.

Assembly District 66

While not exactly a breathtaking result – this race had just two candidates who will by default advance to the runoff – it was nonetheless a surprising photo finish between incumbent Al Muratsuchi (D) with 50.08% and challenger David Hadley (R) who garnered 49.92%. The razor-thin margin of just 73 votes draws the battle lines for November in what could be a tough race for both candidates.

Los Angeles County Supervisor, Third District

Two Democratic heavyweights, Bobby Shriver and Shelia Kuehl, will face each other in November in what is likely to be a messy and expensive runoff as the largely Democratic residents and donors of the Westside square off over the future of the County and the County’s influence in West L.A. News coverage here.

Long Beach Mayor

Long Beach Councilmember Robert Garcia won with 52.1% in a close race with businessman Damon Dunn, who got 47.9%. Long Beach media coverage here.

Proposition 41: Veterans Housing

The “Veterans Housing and Homeless Prevention Bond Act of 2014” won soundly with 65.4% voting yes and 34.6% voting no. Under the successful proposition, the State of California will sell $600 million in general obligation bonds to fund affordable multifamily housing for low-income and homeless veterans.

Proposition 42: Public Records and Open Meetings

This proposition passed easily with 61.5% yes and 38.5% no. As a result of this vote, the state will not be required to pay local governments for costs to follow state laws that give the public access to local government information.

Having trouble finding a mortgage for your home? Check out a great financing resource, among 4 tips for your clients today

The California Mortgage Resource Directory is a helpful tool introduced by the California Association of REALTORS that can help your buyers find the right mortgage and special programs through California. Search for financing fast - and encourage your buyers to get informed on the options available to them. From the C.A.R. website:

The California Mortgage Resource Directory is a powerful search tool that identifies current mortgage programs in communities throughout California. Buyers can search by city or address for public- and private-funded assistance programs including FHA/VA, HUD, affordable fixed-rate mortgages, rehab loans, and more. Go straight to the directory at http://mortgage.car.org or watch this video.

You will also notice by the way many other good resources for consumers on that same web page, including legislation that impacts your buyers and sellers, residential energy audits, and even tips for conserving water in this wicked drought. Hint: Try to avoid those 45-minute scalding hot showers in the morning. Especially if you are in Southern California. We need to make nice with our friends to the north.

Are you ready for a new Manhattan Beach Downtown?

What do you want downtown Manhattan Beach to look like? What kinds of businesses and public uses will best serve residents, visitors, and tourists? What will your real estate clients find most attractive about Manhattan Beach's downtown area?

Don't miss your chance to weigh in on Thursday, June 5 at the Downtown Visioning Forum with city officials.

This is the first of many conversations that will occur, all leading up to a new plan for downtown later this year.

From the official announcement:

The City of Manhattan Beach will be hosting a Downtown Visioning Forum on Thursday, June 5, 2014, at 6:30 PM in the City Council Chambers at City Hall. Residents and other interested parties are invited to attend to share their ideas and visions for the future of Downtown Manhattan Beach. This event will be an early kick-off for the preparation of a Downtown Plan which will commence later this summer. On Tuesday, May 20, 2014, the City Council approved a request for proposals from firms which have the technical expertise to assist the City on this important endeavor. Input received from the Downtown Visioning Forum will be utilized initially to guide the consultant selection process.

You will recall that last November SBAOR opposed a proposal to ban real estate offices from ground floor storefronts in two areas of the City - Downtown and the Rosecrans commercial corridor. So mark your calendars, REALTORS. Not only do you have a chance to make a positive impact on the city, but you can be sure that something prohibitive and restrictive to your business is not part of the mix.

Hermosa Beach is confiscating more real estate signs! Find out what this means to you

Important Information about Real Estate Signs in Hermosa Beach

SBAOR has learned that Hermosa Beach city officials are stepping up enforcement of signage laws. A number of Open House and lead-in signs have recently been confiscated from areas where we understand that signs have been placed in the past. In fact, we are told that over the weekend of May 3-4, 2014 nearly two dozen signs were taken by code enforcement.

Our conversations this week with city officials indicate that Hermosa Beach has added new code enforcement resources and is enforcing existing codes more rigorously. We have expressed concerns to the City and we plan to work closely with the City Council and code enforcement officials in order to remedy the current situation.

Please read carefully this document of Frequently Asked Questions and share it with REALTORS® in your offices and in your community. If you have any questions, please call SBAOR Government Affairs at (310)326-3010 ext. 715.

Has the city passed a new law on signs? Why is there more enforcement now?
The City of Hermosa Beach has passed no new signage laws leading up to the increased enforcement. Rather, the City is using new resources to enforce existing signage laws only. Signs are not permitted on any public property; this includes sidewalks, medians, and the Greenbelt which runs in parallel between Ardmore Ave. and Valley Dr. While this has been the case for some time, the City has not always had sufficient resources to enforce it.

Are only real estate signs being confiscated?
No. Code enforcement officials tell SBAOR that all signs – including REALTOR® signs – are being subject to enforcement and are being removed if found to be illegally placed.

I believe that my sign has been confiscated. How can I get it back? Will there be a fine?
Go to the Department of Code Enforcement at Hermosa Beach City Hall, 1315 Valley Dr. You should show your business card to claim your signs. While the City has the authority to impose fines up to $100, we understand that officials are in an “education” period and are not currently imposing fines.

Where are my signs permitted and not permitted in the city?
Signs are not permitted on public property and public rights-of-way, including sidewalks and medians. They are permitted on your listing and also on any private property as long as you secure that property owner’s permission. Code enforcement has assured SBAOR that they will not confiscate signs from private property. The Hermosa Beach Municipal Code discusses signage here (HBMC Chapter 17.50 "Signs"). If you believe that your sign was confiscated from private property, then contact Code Enforcement at (310)318-0235 or SBAOR Government Affairs at (310)326-3010.

If I cannot place my signs on certain sidewalks and on the Greenbelt, then there is no practical place to put them and I cannot market my listing. What I can do?
SBAOR has heard from REALTORS® like you who tell us that it is impractical or impossible in many areas of the City to put Open House or lead-in signs on any place other than public property. It is important to REALTORS® and to SBAOR that your listings find qualified buyers in the most efficient and effective manner possible while preserving the community’s quality of life. In the way that other cities in California permit limited placement of signs on some parts of public property, so too we plan to approach the leaders of Hermosa Beach in order to craft a solution that is it fit for all parties involved.

How can I get more information about real estate signs in Hermosa Beach?
You may contact David Kissinger at SBAOR Government Affairs at (310)326-3010 ext. 725 or david@southbayaor.com. Watch this space for more updates as they become available. In addition, you may review information available at the Hermosa Beach website, and in particular in the Department of Code Enforcement or by calling (310)318-0235.

REALTORS storm the California Legislature in support of homeowners and property rights!

REALTORS® from California's Region 21 (Inglewood, Palos Verdes and South Bay) on the floor of the California Assembly on April 30, 2014.

REALTORS® from the South Bay joined others from all over California to converge upon the State Legislature on our successful Legislative Day. Thousands of REALTORS® from all over California made their voices heard in our state capitol on issues ranging from taxation to property rights and rent control.

In addition to hearing from Governor Jerry Brown, we had the opportunity to share with legislators about our concerns and questions on several key pieces of legislation. In particular, members of the California Association of REALTORS® focused on these bills that will have a major impact on families and homeowners across the state:

SB 1439 and AB 2405: Ellis Act Restrictions. C.A.R. is OPPOSING SB 1439 (Leno) which forces landlords to stay in business for at least 5 years, and AB 2405 (Ammiano) which would prevent landlords from ever going out of business. C.A.R. opposes these bills because they are an outrageous attack on private property rights and because they will discourage homeownership.

In 1985, C.A.R. successfully sponsored the “Ellis Act” which prevented local governments from passing laws restricting the ability of landlords to go out business. The Ellis Act currently provides protections in terms of advance notice to tenants, relocation assistance and extended notice protections for seniors and the disabled when a landlord elects to go out of the rental business.

SB 1439 will empower local government to restrict the ability of landlords to take rental units off the market unless every owner of that rental property has owned the property for at least FIVE consecutive years. This effectively forces landlords to remain in the rental housing business making it impossible for these owners and their families to occupy their own property.

These bills restrain and effectively prohibit the free use of private property in rent control jurisdictions, provide no exceptions or relief for property owners who have personal or financial hardships, and are fundamentally offensive to the notion of private property rights.

AB 2309: Auction Company Liability. C.A.R. is pleased to sponsor this bill, introduced by the South Bay's Assemblymember Al Muratsuchi (D-66). This bill will prevent real estate auction companies from shifting liability for their mistakes to sellers and listing agents when the lender sends short sale properties to auction to validate their value. We are grateful to Assembymember Muratsuchi for his support of this important issue.

A new practice has arisen where some lenders require homes in a short sale transaction to be put up for auction typically run by a third party auction company chosen by the lender. If the bids come in under the original offer, then the offer is accepted. If, however, a higher bid is submitted, then that bidder can purchase the home.

The lender, of course, has complete control over the auction contract.  As a condition of approving the short sale and absent legislation to the contrary, the lender can include a provision in the contract requiring the homeowner to agree to defend, indemnify, and hold harmless the auction company from any costs, liabilities, and damages arising in connection with any claim resulting from the auction company’s actions.

These provisions only exclude cases of gross negligence, willful misconduct, bad faith, an unlawful act or fraud. In other words, the auction company is held harmless for mistakes it makes in the regular course of business.

SB 391: Recording Tax. C.A.R. continues to OPPOSE SB 391, which will impose a $75 tax on the recording of all non-sale documents, including refinances. C.A.R. opposes SB 391 because it unfairly singles out one segment of society to pay for something that should be the responsibility of all Californians.

C.A.R. is OPPOSING SB 391 (DeSaulnier) which imposes a recording TAX to generate funds for affordable housing programs. SB 391 creates a $75 per document recording TAX to fund the affordable housing trust.  C.A.R. is opposing this measure because it unfairly adds to the cost of recording real estate documents. C.A.R. is an aggressive advocate for affordable housing, but believes it is bad policy to fund affordable housing at the expense of homeowners who need to record real estate documents. The real issue is that this TAX is imposed only on real estate document recordings.  Affordable housing programs should be funded by the broadest base possible of California's citizens.

REALTORS in the South Bay mix it up with local elected leaders

The South Bay Association of REALTORS® hosted a successful Elected Officials Reception at the Depot Restaurant in Torrance in March. The event was a great success, and it is encouraging us to hold future receptions just like it.

Why host an Elected Officials Reception? SBAOR's territory in the South Bay consists of ten cities, unincorporated Los Angeles County and also the fifteenth district of the City of Los Angeles. With approximately a quarter million people living here, 3,600 REALTORS® and so many local governments it is too easy to get lost in the infamous "South Bay Bubble". As an institution for real estate matters in the South Bay, SBAOR has worked closely with officials from every city and we want to keep open and friendly relationships with our partners in government.

What does this mean for REALTORS® in the South Bay and their clients? Families should be able to purchase the home they want and that they are qualified to buy; cities should be able to fulfill their mission for safe streets, good schools, and a quality of life that is the envy of many. Stay tuned - we are looking forward to our next Elected Officials Reception in the Fall of 2014.

From Left: SBAOR member Jaime Sutachan; Matt Garth, C.A.R.; SBAOR 2014 President Tamara Suminski

From Left: Torrance Councilmembers Heidi Ann Ashcraft, Kurt Weideman and Tom Brewer; SBAOR President Tamara Suminski; SBAOR member Lourdes Everett; Carson Mayor Jim Dear; SBAOR member Mina Semenza; SBAOR Government Affairs Director David Kissinger

From Left: SBAOR President-Elect Michele Brown; SBAOR member Jack Pharris

Wanted: A Champion of Home!

Do you know this REALTOR®: difference-maker, life-changer, defender of clients’ rights?
If so—nominate them for the C.A.R. Champions of Home Award today!  

Only a few weeks left to nominate a Champion of Home!
…and the good news is: Nominating just got easier!

 

This award was created to honor REALTORS® who have gone far above and beyond what’s expected of them, in order to better serve their clients. A Champion of Home Award recipient is a California REALTOR® who's found solutions to difficult and often heart-rending situations, someone who changes clients' lives for the better, raises the standards for others, inspires by example, and possesses unimpeachable ethics.

 

Each year, exceptional REALTORS® can be nominated to be considered for this prestigious award, honoring the service they provide to the real estate industry.

The award(s) will be presented each year during CALIFORNIA REALTOR® EXPO in October. The stories of our Champion(s) of Home are shared with a video shown at the award ceremony, and a feature article in California Real Estate magazine.

 

Read about the past award recipients to learn more about what makes a Champion of Home.

How to nominate

1. Complete a nomination form 
2. Return the completed form and any supporting documents you'd like to include to C.A.R.
3. All nominations must be received by April 30, 2014 

Brokers, colleagues, local association staff, and even clients may nominate, but REALTORS® may not nominate themselves.  Click here for complete rules and eligibility criteria.

More information:

• Nomination Form
• Criteria and Rules
• FAQ's
• Past Award recipients

 

Deadline for entries: April 30, 2014

Questions may be emailed to: cohawards@car.org

Open Houses and You

Periodically we will send our REALTOR members friendly reminders when out on caravans and at open houses. Please review these guidelines for signage and open houses:

 Broker Opens:

Every week REALTORS® in the South Bay have the opportunity to preview open houses during Broker Opens in different cities on different days of the week. You may see the schedule of Broker Opens at SBAOR’s website, www.SouthBayAOR.com.

Signage:

Please be aware of signage laws in your cities, posted on SBAOR’s website here. Usually, open house signs are prohibited on parkways – the grassy area between the sidewalk and the street. In addition, lead-in signs are usually prohibited on public rights-of-way including sidewalks and medians. 

While Driving Around:

Please be mindful of traffic laws. In particular, when parking your vehicle at a listing you are urged to follow these guidelines:

• Do not block driveways of neighboring homes, curb cuts or handicap access routes 
• Do not park in front of fire hydrants or at curbs painted red or blue
• Do not speed, especially on residential streets or where children may be present 
• Do not double park or impede the flow of traffic

REALTORS unimpressed with recently proposed federal tax reform

An early draft on tax reform was released by a key House committee chairperson in late February. Portions of the draft proposal negatively affect homeowners, qualified buyers and sellers by impacting deductions on capital gains, property taxes and mortgage interest.

REALTORS all but pronounced these plans dead on arrival and are reminding lawmakers about the importance of upholding homeownership, building stable communities, and making housing available to families who are qualified to purchase a home.

NAR released a letter to Congress calling for support of homeownership and preservation of tax provisions that protect American families. Last week, NAR said in a statement that

 “We are extremely disappointed with several of the provisions contained in U.S. House Ways and Means Chairman Dave Camp’s tax reform draft released today, namely proposed limits on the mortgage interest deduction and capital gains, and the repeal of deductions for state and local property taxes. These proposed changes to the taxation of real estate will impact every single American, either directly or indirectly. 

 “NAR will carefully analyze the details of the Chairman’s plan so we can best educate Congress and the public about how this plan would impact the owners, consumers, and producers of both residential and commercial real estate.”

REALTORS® in Los Angeles and Orange Counties – don’t miss this event that could impact your business in single family homes this year!

Chapman Single Family Investment Roundtable: Are Happy Days Here Again?
Special discount for this blog's readers!

This roundtable event is an informative panel discussion focusing on single family housing as it relates to the economic recovery as well as its emergence as an asset class.  The panel will feature leading executives in Orange County including Emile Haddad, the developer of the Great Park Neighborhoods in Irvine, as well as economist Gerd-Ulf Krueger, and Scott Laurie, President and CEO of Olson homes.

Arixa Capital is co-sponsoring the event with Chapman University.  For about 7 years, Arixa Capital has been hosting a similar discussion at UCLA Anderson, and we are expanding our reach to include Orange County. It is a $30 value, but only costs $20 with pre-registration or $15 if you use promo code SBAOR, and includes the panel discussion, hors d’oeuvres, beer and wine.

Register at: http://chapmanroundtable2013.eventbrite.com/

Additional information at: http://arixacapital.com/event/chapmanroundtable/ or http://arixacapital.com/chapmanroundtable/

What Makes this Event Special?
Earlier this year, our single family roundtable at UCLA Anderson drew over 250 attendees for networking, refreshments and a lively panel discussion that included successful developers, top brokers, investors and lenders active in the single family market. The reasons our events have succeeded while other conferences sometimes draw limited attendance include three main factors:

(1) Great Panel.
The panel discussion is unusually candid. We generally repeat our events annually in each location and we typically have many returning investors, developers and financiers each year, both on the panel and in the audience. This builds a sense of community and helps participants to form lasting relationships.

(2) The Price is Right.
At only $20 per person with pre-registration, including food, beer and wine, there is no better value than our conference.

(3) Excellent Networking.
Our event starts with a one-hour reception during which you will meet valuable contacts in a collegial atmosphere. At the reception and after the discussion, you can meet the panelists and other professionals and investors in our industry.