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.