November 2016

Election Recap

The 2016 election proved once again that California is the political outlier in the country. While the nation was electing Donald Trump as president, a Republican majority in the U.S. Senate, a Republican majority in the House of Representatives, a vast Republican majority of Governors and State Legislators, California swung even harder toward the Democrats than in years past. At the presidential level, we see Republican Mitt Romney’s 2012 showing in California of 37.1% was well above Donald Trump’s 2016 level here, where he only got 31.8%. Even Orange County convincingly supported Hillary Clinton over Donald Trump, the first time Orange County had gone to the Democrat since 1936. California’s electorate also gave the Democrats a 2/3 "Super" majority in both the State Senate and State Assembly, with the local elections of Sharon Quirk-Silva to the Assembly and Josh Newman to the Senate being key races for the Democrats in reaching the 2/3 mark.

A consistent theme up and down the California ballot was the electorate’s support for higher taxes. Prop 55 extended the "temporary" state income tax increases from 2012. Prop 56 increases the cigarette tax by $2.00 a pack. Prop. 67 will charge you 10 cents per plastic bag at a store. Locally, tax increases passed in droves as well. Los Angeles County voters easily approved Measure A, a county-wide property tax that will fund parks. Los Angeles County also approved Measure M, a county-wide sales tax that will fund transportation. In previously tax-adverse Orange County, we saw sales tax measures approved in Fountain Valley, La Palma, and Westminster. Stanton had a re-vote on their previously adopted sales tax, and the voters overwhelmingly opted to keep the tax. School bonds were added to the taxpayer’s burden in district after district.

Among the districts that approved school bonds were:

• Anaheim Elementary: $318 million bond
• Centralia: $49 million
• El Rancho Unified: $200 million
• Garden Grove Unified: $311 million
• Hacienda La Puente: $148 million
• Ocean View $169 million
• Orange Unified: $288 million
• Long Beach Unified: $1.5 billion

We would like to offer our congratulations to the following candidates on their successful campaigns:

• Orange County Supervisor: Andrew Do
• Anaheim City Council: Denise Barnes, Jose Moreno, Lucille Kring, and Steve Faessel
• Brea City Council: Christine Marick and Marty Simonoff
• Buena Park City Council: Fred Smith and Art Brown
• Cypress City Council: Rob Johnson and Mariellen Yarc
• Fullerton City Council: Jennifer Fitzgerald, Bruce Whitaker, and Jesus Silva
• Garden Grove Mayor: Steve Jones
• Garden Grove City Council: John O’Neill, Thu-Ha Nguyen, Stephanie Klopfenstein, and Kim Bernice Nguyen
• La Habra City Council: Tim Shaw, Rose Espinoza, and Tom Beamish
• La Palma City Council: Gerard Goedhart, Peter Kim, and Marshall Goodman
• Los Alamitos City Council: Josh Wilson and Richard Murphy
• Placentia City Council: Jeremy Yamaguchi, Ward Smith, and Rhonda Shader
• Santa Ana Mayor: Miguel Pulido
• Santa Ana City Council: Vicente Sarmiento, Jose Solorio, and Juan Villegas
• City of Stanton: Carol Warren and Al Ethans
• Tustin City Council: Charles Puckett, Letitia Clark, and Allan Bernstein
• Villa Park City council: Vince Rossini and Robert Pitts
• Westminster Mayor: Tri Ta
• Westminster City Council: Sergio Contreras and Kimberly Ho
• Yorba Linda City Council: Tara Campbell, Gene Hernandez, and Beth Haney

As a reminder, it is our member contributions to the REALTOR® Action Fund (RAF) that makes it possible for us to help candidates who support property-rights, as well as support or oppose measures that make homeownership more difficult. With membership renewals coming up, we hope you will consider making a generous contribution to the RAF. In addition to your membership renewal, you can always access the RAF website here: http://www.car.org/governmentaffairs/raf/

September 2016

Government Affairs Update

With the election less than 2 months away, we have several measures on the ballot of interest to REALTORS®. Many local school districts have put bond proposals on the ballot. If passed, these bonds will increase the property taxes for a homeowner, making the dream of homeownership slightly more difficult to reach. In our area, the bond proposals are:

• Anaheim Elementary School District: $318 million
• Brea Olinda Unified School District: $148 million
• Centralia School District: $49 million
• Garden Grove Unified School District: $311 million
• Long Beach Unified School District: $1.5 billion
• Orange Unified School District: $288 million
• Westminster School District: $76 million

Another issue on the ballot for all of Los Angeles County will be a property tax for parks. Measure A would place an annual tax of 1.5 cents per square foot of developed property. What is perhaps most troubling about this measure is there is no sunset date, meaning if it passes this tax will be on Los Angeles County properties in perpetuity. The vote threshold is 2/3 plus 1, so with that high bar we believe this measure can be defeated.

While not in our immediate region, we are concerned with developments in San Mateo County in northern California. Measures that are openly hostile to property right, such as "Just Cause Evictions" and rent control, are going before the voters there. The concern is that if passed in San Mateo, those ideas will spread across the state. Local associations across California are joining with the California Association of REALTORS® to fight these measures to keep that from happening.

The California legislature could have significant changes this election, with all 80 Assembly seats and half the Senate seats up for grabs. The expectation is the Democrats will have a reasonable chance at picking up a 2/3 majority in each house. A 2/3 vote is needed to raise taxes, pass constitutional amendments, and to approve "urgent" legislation that goes into law immediately rather than January 1st of the next year, so that 2/3 "super majority" is very significant. In the State Senate, the 2/3 majority may well come down to the race for Senate District 29, which encompasses northern Orange County. Incumbent Senator Bob Huff is termed out, and Assembly member Ling-Ling Chang (Rep) is running against Josh Newman (Dem) to fill the seat. The California Association of REALTORS® has made the election of Ling-Ling Chang to the Senate a top priority. We will be organizing phone banks of REALTORS® in October to help turn out the vote for Assembly member Chang.

We have 16 City Councils, along with an important race for Orange County Supervisor 1st District, up for grabs in the Pacific West territory. Pacific West will be supporting candidates across our region that are most supportive of property rights and home ownership. Contributing to our PAC will help us influence these races!

You may donate here: www.car.org/governmentaffairs/raf/

August 2016

REALTORS: Be Counted!

The November 8th election is right around the corner, and it is critical REALTORS are registered to vote and turn out to support candidates and measures in support of home ownership and property rights. The deadline to register is 15 days before the election, so we encourage you register if you have not done so already. The website to start your voter registration process can be found here: https://covr.sos.ca.gov/?language=en-US Speaking of elections, Los Angeles County has placed a parcel tax on the November ballot REALTORS need to pay attention to. Dubbed the "Safe, Clean Neighborhood Parks Measure", the proposal seeks to fund parks, open space and beaches. The California Tax Foundation has singled out this proposal "One of the costliest proposals on the November ballot.".

The proposed tax is an annual tax of 1.5 cents per square foot of building floor area. According to County estimates, an average homeowner with a 1,500-square-foot home would pay about $22.50 a year. Larger property owners and businesses would pay substantially more, and this square-footage formula is a departure from traditional flat rate parcel taxes. The "parks tax" comes as LA County voters are being asked to approve a new half-cent transportation sales tax, a facilities bond (property tax) for the Los Angeles Community College District, as well as four taxes on the statewide ballot and numerous other local levies.

This measure has no sunset provision, meaning the new levy will exist forever. It is also based on a County administered "needs assessment", which shows the bulk of revenues would be destined for the City of Los Angeles, with the residents of the other 87 in the county paying taxes for parks outside their community.

As a result, many of these cities have raised concerns with the proposal. As noted in the LA Daily News "City managers from several communities have said property owners will be taxed a full amount, only to receive 35 percent back into their own communities, plus an additional 15 percent for maintaining existing parks. As part of the measure, tax money would also be collected and streamed through various funding categories, paving the way for many communities to apply for grants." We will keep you apprised of this another measures that would affect real estate in the months ahead.

July 2016

WE DID IT, PWR Members!

H.R. 3700 Victory!

The National Association of REALTORS (N.A.R.) has long supported federal legislation that would make homeownership more attainable. With condominiums playing a key role in the housing stock, N.A.R. has fought to ease the restrictions around condominium financing. This year we had a bill in Congress that would accomplish this, H.R. 3700. Specifically, this bill changes the Federal Housing Administration’s (F.H.A.) recertification process to make it substantially less burdensome, while lowering the owner-occupancy requirement from 50% to 35%. It also requires FHA replace existing transfer fees with the less-restrictive model already in place at the Federal Housing Finance Agency.

The House of Representatives unanimously approved H.R. 3700, so it went over to the Senate. N.A.R. issued a national "Call for Action" to REALTORS across the county, asking them to take action in support of H.R. 3700. Our efforts were aimed at motivating the Senate to bring the bill up for a positive vote. REALTORS across the country responded with nearly 140,000 contacts to the U.S. Senate! The Senate ultimately passed H.R. 3700 by unanimous consent on July 14th, which sends the bill to President Obama, who is expected to sign it.

Thank you to everyone who participated in this successful Call for Action!

June 2016

GOVERNMENT AFFAIRS UPDATE

REALTORS® from across the United States, including members and staff of PWR traveled to Washington, D.C. for the National Association of REALTORS® (N.A.R.) Legislative Meetings and Trade Expo May 9th through the 13th. While in the capitol, we asked people serving in government to help our industry in the following ways:

• Streamlining the underwriting criteria for FHA condo approvals, including lowering the owner occupancy requirement from 50% to 35%
• Prohibiting the use of Fannie Mae & Freddie Mac guarantee fees (g-fees) to fund other government programs such as bridges and highways
• Protecting critical homeownership tax incentives such as the mortgage interest deduction, property tax deduction & 1031 like-kind exchange
• Promote a viable private market for flood insurance to create competition and lower premiums for homeowners in flood-prone areas

The California Association of REALTORS ® (C.A.R.) held a reception in the Library of Congress for the attendees and members of Congress from California, which was well attended.

N.A.R. recently endorsed legislation to allow for the refinancing of federally guaranteed student debt. We all know how advantageous refinancing a large debt, like a home loan, can be to the borrower. By allowing greater flexibility in the area of student debt refinancing, a potential client can arrange their finances in a way they can qualify for a home loan, so this idea could prove very beneficial to our industry.

In state news, we were happy to see AB 2693 (Dababneh) pass the Assembly on a nearly unanimous vote. This C.A.R. supported bill relates to Property Assessed Clean Energy (PACE) loans. It has become nearly impossible to refinance homes with a PACE lien, and AB 2693 will address that challenge.

We did not have similar success with AB 2760 (Mathis), a C.A.R. supported bill related to support animals. We have seen the line between pets and service animals (like Seeing Eye dogs) blurred a bit with the advent of companion animals whose role is to provide emotional support. Property owners "no pets" policy could be thrown into doubt with a companion animal. AB 2760 sought to clarify the role of emotional support animals, but the Humane Society and other animal rights groups opposed it, so this legislation will not move forward this session.

SB 1053 (Leno) is a bill C.A.R. opposed, and fortunately this bill will not advance this session. SB 1053 sought to make the Section 8 voucher program mandatory for landlords. Under current law, a property owner can choose to participate in Section 8 – it is entirely voluntary. By taking away that option, we felt SB 1053 was an abuse of property rights.

May 2016

GOVERNMENT AFFAIRS UPDATE

The California Association of REALTORS® (C.A.R.) held their Legislative Day, dubbed "Get Down in Sac Town", April 27th. Thousands of REALTORS® assembled in the Sacramento Convention Center in the morning and heard a welcome address from Governor Brown. The governor shared some thoughts on the business cycle, California’s tax structure, and he also told us of the interesting history of the governor’s mansion. After Governor Brown spoke, we were briefed by C.A.R.’s staff about 3 bills they wanted us to discuss with the state legislators. After learning about these bills, we went across the street in the capitol building and met with Senators and Assembly members to discuss this legislation. The bills we talked to them about were:

AB 2693 (Dababneh).
This bill deal with PACE loans. PACE stands for "Property Assessed Clean Energy". The idea with a PACE loan is to make energy improvements to your property such as solar panels, water conservation, etc. and these improvements are financed by an assessment on your property tax bill. The PACE loan is given the highest priority, even higher than the 1st mortgage. While energy conservation is a laudable goal, by giving the super-priority status to the PACE loan, selling or refinancing these properties has become very difficult. In fact, Fannie Mae and Freddie Mac have stated they will not refinance a home with a PACE loan. AB 2693 will place the PACE loan beneath the 1st mortgage. The bill would also strengthen the disclosure requirements, so property owner have a better understanding of what they are getting. We support AB 2693.

AB 2760 (Mathis)
This is a bill related to animals in rental properties. While a landlord may prohibit pets, a service animal such as a seeing-eye dog, may not be prohibited in a property if the animal is serving a disabled tenant. An area of confusion has been "companion" animals, where an animal is recommended for an individual for emotional companionship. Doctors from across the country are recommending companion animals, and landlords feel compelled to allow them even if they have a "no pets" policy. Some companion animals have even been large animals like pigs or llamas, which have caused damage to the property. AB 2760 is an attempt to curb abuses and add clarification to what is a pet, what is a companion animal, and what is a service animal. One change this bill would make is the recommendation would have to come from a licensed doctor in California. AB 2760 states those with a medically documented need may keep their support animal. We support AB 2760.

SB 1053 (Leno).
This bill deals with the well-known Section 8 housing program for low-income individuals. Property owners have always had the choice of accepting or not accepting Section 8 renters in their properties. This bill would require property owners accept Section 8 applicants, regardless of the circumstances. We find this bill to be an affront to property rights, where the government is mandating what a property owner must do with his or her property. We oppose SB 1053.

April 2016

GOVERNMENT AFFAIRS UPDATE

Long Beach and Whittier each held City Council elections April 12th. In Long Beach, the representative for Council Districts 2, 6, and 8 were on the ballot. District 2 had no incumbent running, as Councilmember Suja Lowenthal did not run for re-election. In the divided field running to replace her, no candidate reached 50% of the vote, so the top-two candidates, Jeannine Pearce and Eric Gray, will face each other June 7th. A similar situation occurred in District 6, where incumbent councilman Dee Andrews will face challenger Erik Miller on June 7th. As of this writing, Councilman Al Austin II appears to have crossed the 50% plus 1 threshold in the 8th district, although it is close. If he remains above 50% after all votes are cast, he will have succeeded in being re-elected without a further contest.

Whittier’s election was historic, as this was their first election that directly elected a mayor, rather than a rotating system between councilmembers. Joe Vinatieri prevailed and will be the first directly elected mayor in the city’s history. In Council District 1, Josué Alvarado won and will serve with Cathy Warner, who was unopposed in her election to represent District 3.

With so many elections coming up later this year, it is vitally important we have the resources to support candidates and causes that will help REALTORS. Please visit http://www.realtoractioncenter.com/rpac/ and make a donation today!

California’s government made national news recently by passing a minimum wage increase. The increase will be phased in over a few years. Currently at $10 an hour, it will rise to $10.50 an hour January 1, 2017, $11 an hour in 2018, and a dollar each year until 2022, topping out at $15 an hour.

An estimated 2,000 REALTORS are expected are expected to attend the California Association of REALTORS "Legislative Day" in Sacramento on April 27th. Governor Brown is expected to address us in the morning, with the afternoon spent meeting with members of the State Legislature discussing our legislative priorities.

March 2016

GOVERNMENT AFFAIRS UPDATE

With the field of presidential candidates narrowing it has become increasingly likely Hillary Clinton will emerge as the Democrat’s nominee and Donald Trump as the Republican’s nominee. Polls indicate they are both extremely polarizing political figures, and we can expect to see a very campaign between them, with down-ballot impacts being felt across the country.

President Obama’s announcement that he will nominate Merrick Garland for the vacant position on the Supreme Court drew an immediate reaction from Senate Majority Leader Mitch McConnell, who said that the Senate would not hold any confirmation hearings or a confirmation vote. This nomination battle will certainly drive the partisan divide further apart at the national level.

At the state level, Anthony Rendon was finally sworn in as the new Speaker of the Assembly. There is some anticipation there will be significant legislation on a transportation package, with negotiations beginning in earnest with the new speaker.

Governor Brown won a significant legislative victory at the end of February when the legislature approved an idea he wanted to restructure taxes on Managed Care Organizations (MCOs). The vote required a 2/3 majority, which was achieved on a bipartisan basis. This legislation closes a $1 billion budget gap the state was facing in Medi-Cal.

California voters will be inundated with propositions this year, with 10 propositions qualified already and an astounding 80 more at some point in the process. While most of those will fail to qualify, we could easily see a record number reach the ballot.

C.A.R. LEGISLATIVE DAY 2016

Come to Legislative Day in Sacramento and join 2,000 of your closest REALTOR® friends for a day filled with networking, meetings with your state legislators, and lively discussions on the hottest issues most important to your industry. Legislative Day is an excellent opportunity for REALTORS® from across California to meet with their state legislators to discuss the issues that impact the real estate industry the most. REALTORS® play a critical role in stopping bad legislation and promoting good bills. Attending Legislative Day is not only a great investment in your business, but also provides a chance to hear from the state’s most dynamic political leaders and the leadership of your state association, and enjoy a fabulous reception. This year, Governor Brown has been invited to address C.A.R.’s Legislative Day. We look forward to seeing you at this year’s event on Wednesday, April 27, 2016. For more information on Legislative Day 2016, please email tims@pwr.net.

LEGISLATIVE DAY VIDEO CONTEST

C.A.R. wants to hear why YOU think it’s important to attend Legislative Day on April 27 in Sacramento. Just post a short video of 60 seconds or less to C.A.R.’s Facebook page between March 14 and April 22 to enter. The poster of the video with the most "likes" will get a very cool REALTOR® Party travel coffee mug. Be sure to "like" C.A.R.’s Facebook page and use the hashtag #CARLegDay16 in your update.

More information and official rules

February 2016

GOVERNMENT AFFAIRS UPDATE

AT THE FEDERAL LEVEL
The presidential election is dominating the news. With voting under way in the early states, we are seeing both parties positioned to have long and contentious nominating fights in the months ahead. The unexpected death of Supreme Court Justice Antonin Scalia has sparked a new round of partisan fighting, with several Republican Senators vowing to oppose any nominee put forward by President Obama on the grounds that the next president should fill the vacancy. With a 54-46 GOP majority in the Senate, the president would need 4 votes in support of his nominee for confirmation, with the Vice President casting the tie-breaking vote. With the Supreme Court being closely divided ideologically the stakes are very high. On the policy front, President Obama is advancing the idea of a $10 per barrel tax on oil to fund transportation. This proposal has virtually no chance of passing Congress, but it gives them an issue to publicly debate as the president finishes off his final year in office.

AT THE STATE LEVEL
Anthony Rendon is scheduled to officially become the Speaker of the State Assembly in March. It will be interesting to see if he runs the Assembly in a substantially different manner than his predecessor. We should closely watch A.B. 1807 (Bonta). This C.A.R. sponsored bill would limit the time that a notice of disciplinary action is reported against a licensee’s name when a search is made of the CalBRE database to a maximum of 10 years. Governor Brown remains as committed as ever to his environmental agenda, recently joining a group of 17 governors in signing the "Governor’s Accord for a New Energy Future", a joint commitment to pursuing modern electric grids, cleaner energy and transportation. The governor also issued an Executive Order to reduce greenhouse gas emissions in the state 40% below 1990 levels by 2030 – the most ambitious target in North America. REALTORS across the state are making plans for C.A.R.’s Legislative Day April 27th, when we will be in Sacramento to visit with those in state government and to advocate for our issues. Governor Brown has been invited to address our group.

AT THE LOCAL LEVEL
The filing has closed for the April 12th City Council elections in Long Beach and Whittier. Our board will be interviewing interested candidates soon to discover their positions on the issues relevant to us. With so many important elections this year, we want to encourage everyone to register to vote. An easy site to register is found here: http://registertovote.ca.gov/

January 2016

WHAT TO EXPECT IN 2016

At the national level, 2016 marks the final year of the Obama presidency. With the congressional majorities of both houses in Republican hands, President Obama is expected to finish off his presidency and cement his legacy by issuing Executive Orders. His oft-repeated goal of tougher gun control laws is one example where there is no chance of such legislation passing Congress, so his only avenue is through unilateral action. This route will certainly add to the partisan divide, as President Obama will argue he had no choice but to opt for unilateral Executive Orders given the failure of Congress to act, and Congressional Republicans will deride such actions as an abuse of power.

As with every presidential election year, the approaching election will make this year highly politicized. In addition to the president, 34 Senate seats, all 435 House seats, 12 governorships, and the state legislatures of 43 states are up for grabs this November, so every vote will be taken in that political context.

Speaker Paul Ryan is promising to restore "regular order" to the federal budget process. For the last several years, the federal government has been funded by Congress through Continuing Resolutions or Omnibus bills. These bills have not gone through the normal process of appearing in the Appropriations Committee for hearings, amendments, etc. Rather, we've seen the pattern established that a government shutdown approaches, and at the 11th hour a Continuing Resolution is passed which authorizes more spending and a higher debt limit, thus avoiding a shutdown. I think most would agree this is not the best way to operate the federal government, so we can hope that Speaker Ryan is successful in bringing back a more thoughtful, deliberative process.

At the state level, Governor Jerry Brown's "State of the State" address proved there are interesting alliances being made in state government. Governor Brown's calls for fiscal conservatism, as expressed by his proposal to add more to the "Rainy Day" fund, has liberals balking. His detailing of the need for more investment in transportation has been met with bi-partisan support. However, the bi-partisanship ends when discussing how to fund the increases in transportation, with Governor Brown's call for a new and/or higher tax being met with opposition by the Republicans, who continue to slam the High Speed Rail project and its $68 billion price tag as proof there is plenty of money being spent on transportation, just on the wrong priorities.

At the local level, we will have elections in virtually every one of our cities. Most will occur in November on the same day as the presidential election. However, there will be elections for city council in Long Beach and Whittier this April. Long Beach has an 8 member council, elected by district, and one mayor elected at-large. 4 council seats are up in April. Whittier is moving to a new system of electing 4 council members by district with the mayor elected at-large, so this is a big change for Whittier. As Long Beach and Whittier are two of our largest cities, the results here could be significant to PWR. Our PAC board of directors will be reviewing these races in the near future to decide what role we will play in trying to influence the outcome in these races.

All-in-all, we have a lot to look forward to in 2016!

December 2015

Government Affairs Year in Review

We had several legislative victories in 2015, at both the national, state, and local levels.

A few of our accomplishments at the national level include:

• Changes to FHA's condo policies. NAR has long argued that existing FHA policy is overly restrictive and keeps many consumers from buying and selling a home. The new FHA condo rules are in line with those requested by NAR and include changes to the lengthy and complex recertification process, burdensome owner occupancy requirements, and limits on the types of property insurance that are considered acceptable coverage under FHA's rules. NAR will continue to work closely with FHA to address additional policy changes still needed as it relates to owner occupancy, commercial space percentage, FHA concentration and spot approvals. For more information visit: www.realtor.org/fha
  
  
• Defeating the mortgage tax to fund transportation. After aggressive advocacy by NAR through letters, meetings and an all-member Call for Action which generated the highest response rate in NAR history, Congress removed the use of guarantee fees (G-fees) as a financing mechanism from the Fixing America's Surface Transportation Act (FAST Act). While originally included in the Senate version of the bill, the final Conference Report removed the G-fee pay-for provision which would have extended elevated G-fees on mortgages backed by Fannie Mae and Freddie Mac. Had this provision been included the fees would have been passed on to homeowners. President Obama signed the bill into law on December 4, 2015. For more information visit: www.realtor.org/gses
  
  
• In January of 2015, President Obama announced that the Federal Housing Administration (FHA) would reduce FHA annual mortgage insurance premiums (MIP) by 50 basis points. This reduction is a victory for NAR members who had called for lower fees on FHA loans since early 2014. NAR lead a coordinated effort with other advocacy groups to educate the Department of Housing & Urban Development and the Administration about the critical need to reduce these fees through letters and in-person meetings with then FHA Commissioner Galante. In addition, NAR worked with 17 Senators to send a letter to HUD Secretary Castro asking him to set FHA premiums at a level that "balances both sustainability and affordability". For more information visit: www.realtor.org/fha
  
  
• Following intense outreach by NAR and numerous industry partners through letters and in-person meetings, the Consumer Financial Protection Bureau (CFPB) announced it was moving the implementation date of the new TRID rule from August 1 to October 3 to accommodate the busy buying and selling season. While pleased with this decision, NAR continued to actively engage with the CFPB to request written assurances that the early enforcement of the new rules will take into account the good faith efforts of supervised entities. On October 1, CFPB Director Richard Cordray, on behalf of the six federal financial regulatory agencies, provided those assurances in a written letter to the industry. Additionally, NAR worked with CFPB to allow brokers and agents to co-brand the "Your Home Loan Toolkit" and received clarification on affiliate title companies and mortgage lenders can co-brand, produce, and deliver the toolkit to agents without violating RESPA. For more information visit: www.realtor.org/respa
  
  
• After year-long outreach by NAR, the Federal Housing Finance Agency (FHFA) announced enhanced nonperforming loan (NPL or note sales) requirements for sales of NPLs by Freddie Mac and Fannie Mae. In a letter last year to Director Mel Watt and subsequent meetings with FHFA officials, NAR raised concerns that this disposition strategy gives investors an advantage over potential owner occupant buyers. NAR requested more information on the sale of the notes and asked FHFA to study the cost and impact of bulk note sales to institutional investors. For more information visit www.realtor.org/gses

For a complete run-down of our advocacy efforts at the federal level, please visit http://www.realtor.org/political-advocacy

In California, several REALTOR^® supported bills became law, including:

• >AB 345 by Assemblyman Frazier. This bill earmarks 3 hours out of the annual 45 hours of a broker's continuing education for a course on the management and supervision of real estate licensed activity. The bill also permits salespersons to elect to take a course containing relevant information to assist them in understanding how to be effectively supervised by a responsible broker or branch manager.
  
  
• AB 807. Private Transfer Fees (PTFs) are fees imposed by an individual, developer, etc. that require a homebuyer and any subsequent purchaser to pay a fee upon the transfer of a home. In 2007, C.A.R. successfully sponsored AB 980, which requires disclosure of new and existing PTFs and requires PTFs to be recorded against the applicable property. However, new kinds of PTFs are now being used. This bill expands the current PTF recordation requirement to include PTFs whose payment does not occur upon a change in ownership or that are not based on sales price.
  
  
• SB 146 by Senator Galgiani. In 2014, C.A.R. sponsored AB 2018 (Bocanegra) to remove ambiguity surrounding Fictitious Business Names (FBNs) by statutorily defining how salespersons, with their broker's permission, can use FBNs while also establishing clear standards for the use of "team names" that are not FBNs. This measure cleans up and clarifies that "team names" not requiring an FBN for purposes of the real estate law do not require the filing of an FBN with their local county.

For a complete look at government affairs in California, please visit: http://www.car.org/governmentaffairs/

At the local level, we have been working with local cities on their sign ordinances, so we can have reasonable rules about placing our "Open House" signs. For a recap of our local sign ordinances, please visit: https://www.pwr.net/services/signs/

We've also been pleased to start a new interview segment called "City Talk", where we interview local government leaders to learn more about their cities. You can see these interviews here:

November 2015

Legislative Updates for 2015

Leadership Changes

In the California legislature, Assembly Speaker Toni Atkins will leave the position of Speaker next January, with Assemblyman Anthony Rendon of Lakewood having been elected to be the next Speaker. The Senate Republican Caucus replaced Senator Bob Huff as their Leader, with Senator Jean Fuller of Bakersfield taking over the leadership duties. And finally, Assembly Republicans elected Assemblyman Chad Mayes of Yucca Valley as the incoming Minority Leader. In the U.S. Congress, Speaker John Boehner’s resignation sparked weeks of political intrigue, with Paul Ryan eventually emerging as the new Speaker.

C.A.R. Sponsored Legislation That Was Signed in 2015

AB 345 - This bill requires a broker to complete a three-hour course in management of real estate offices and supervision of licensed activities as part of the 45 hours of required continuing education (CE) for license renewal.

AB 607 - Authorizes real estate brokers to employ certain persons to manage real estate broker trust fund accounts including non-real estate licensees if the broker has fidelity bond coverage for the maximum amount of the trust fund account to which the employee has access to at any time, and authorizes the fidelity bond to have a deductible of up to 5% if the broker has evidence of financial responsibility that is sufficient to protect members of the public against a loss subject to the deductible amount.

SB 146 - This bill exempts team names of realtors from the requirement of filing a fictitious business name (FBN) with their local county when providing real estate services and revises the definition of "responsible broker's identity".

AB 807 - Clarifies existing law to ensure that all private transfer fees on real property are disclosed to prospective purchasers.

SB 474 - This bill eliminates the creditor bid exemption to the existing prohibition on announcing or allowing an auction bid offered for the sole purpose of increasing a bid amount, and re-casts the existing prohibition to apply only to increased bids offered by the auctioneer.

Legislation In Progress to Watch in 2016

AB 237 - This bill requires a local agency, within one week following a legislative body's vote to place a proposed parcel tax on the ballot, to provide specified notice to all property owners affected by the tax.

AB 685 - This bill makes several changes to the conditions under which the California Bureau of Real Estate (CalBRE) may deny, suspend, or revoke a real estate license, and requires a licensee to report the bringing of a criminal complaint charging a felony against the licensee.

AB 1545 - This bill would establish in state government the Housing Agency, comprised of the Department of Housing and Community Development; the Bureau of Real Estate, which this bill would redesignate as the Department of Real Estate; the Contractors’ State License Board; the Structural Pest Control Board; and the Department of Real Estate Finance, which this bill would also establish. The bill would redesignate the Business, Consumer Services, and Housing Agency as the Business and Consumer Services Agency, transfer certain duties of that agency to the Housing Agency, and make other conforming changes.

SB 378 - This bill would provide, commencing with the 2016-17 fiscal year, that the base year value of an original property may be transferred to a replacement dwelling that is of greater value, and would require the base year value of the replacement dwelling to be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the base year value of the original property.

Federal Transportation Reauthorization

Congress continues to work on a comprehensive transportation bill. The House of Representatives approved the "Surface Transportation Reauthorization and Reform (STRR) Act", its version of a multi-year surface transportation authorization bill. The House also voted to go to conference with the Senate to resolve differences between STRR Act and the Senate-passed "Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act". The Senate and House versions will be reconciled into one bill through a Conference Committee composed of Senate and House members.

While there appears to be wide support for increased transportation funding, there remains sharp divisions over how to fund the increase. Traditionally the primary source of funding, the gas tax, has been declining and it is expected to continue to decline. Cars continue to become more fuel efficient with hybrids gaining greater market share, which contribute to this decline in gas tax revenue. One unfortunate proposal was put forward to tax mortgages as a funding source for this transportation bill. This idea would unfairly put the burden of supporting the transportation system, which is used by everyone, on just those who purchase their home. The proposed tax would add approximately $8,000 to the price of an average home. REALTORS across the country have strongly opposed this tax, and we will anxiously read the bill that comes out of the Conference Committee to see if it is included in the final version.

Friendly Reminder to be a Good Neighbor

Some of our city governments have been expressing their frustration at too many signs lining their streets. They believe this cluttered appearance diminishes the beauty of the community, and they are asking REALTORS do our part in removing our signs whenever possible. The United States Supreme Court recently weighed in on sign ordinances in a case called Reed v. Gilbert, Arizona. The town of Gilbert had different requirements for signs, based on whether they were political, directional, etc. In its ruling the court decided that government ordinances could not treat signs differently based on their content, as that would violate the constitutional principle of free speech. This ruling means our Open House signs will be treated as any other signs. A few tips to remember:

DON’T

• Put your signs in the center medians of streets
• Block access to sidewalks or other paths
• Put your open house signs up the night before

DO

• Pick up your signs when the open house is over
• Ask permission before placing signs on private property
• Review local sign ordinances, conveniently found HERE

Thank you for your attention to this matter. We are in this together!

October 2015

Call-to Action: Defeat the Mortgage Tax!

The U.S. Senate passed a bill that would tax mortgages as a way of funding transportation. The House of Representatives will be taking this idea up. A median priced home of $489,560 with a conforming loan would pay an additional $8,100. Taxing mortgages to fund transportation is simply bad policy. They should tax something that has a direct nexus to transportation, such as a gasoline tax.

HELP US DEFEAT THE MORTGAGE TAX!


And don't forget to "like" the facebook page on Facebook.com.

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Leadership Changes

Congress remains sharply split over the leadership question. Speaker Boehner’s announced resignation, followed by Majority Leader McCarthy’s abrupt withdrawal from the Speaker’s race, speaks to the level of dissatisfaction within the Republican Conference over the existing leadership team. Rumors abound, with Congressman Paul Ryan’s name surfacing as a possible candidate to succeed Boehner.

In the California legislature, Assembly Speaker Toni Atkins will leave the position of Speaker next January, with Assemblyman Anthony Rendon of Lakewood having been elected to be the next Speaker. The Senate Republican Caucus replaced Senator Bob Huff as their Leader, with Senator Jean Fuller of Bakersfield taking over the leadership duties. And finally, Assembly Republicans elected Assemblyman Chad Mayes of Yucca Valley the incoming Leader.

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C.A.R. Sponsored Legislation That Was Signed in 2015

AB 345 - This bill requires a broker to complete a three-hour course in management of real estate offices and supervision of licensed activities as part of the 45 hours of required continuing education (CE) for license renewal.

AB 607 - Authorizes real estate brokers to employ certain persons to manage real estate broker trust fund accounts including non-real estate licensees if the broker has fidelity bond coverage for the maximum amount of the trust fund account to which the employee has access to at any time, and authorizes the fidelity bond to have a deductible of up to 5% if the broker has evidence of financial responsibility that is sufficient to protect members of the public against a loss subject to the deductible amount.

SB 146 - This bill exempts team names of realtors from the requirement of filing a fictitious business name (FBN) with their local county when providing real estate services and revises the definition of "responsible broker's identity".

AB 807 - Clarifies existing law to ensure that all private transfer fees on real property are disclosed to prospective purchasers.

SB 474 - This bill eliminates the creditor bid exemption to the existing prohibition on announcing or allowing an auction bid offered for the sole purpose of increasing a bid amount, and re-casts the existing prohibition to apply only to increased bids offered by the auctioneer.

Legislation In Progress to Watch in 2016

AB 237 - This bill requires a local agency, within one week following a legislative body's vote to place a proposed parcel tax on the ballot, to provide specified notice to all property owners affected by the tax.

AB 685 - This bill makes several changes to the conditions under which the California Bureau of Real Estate (CalBRE) may deny, suspend, or revoke a real estate license, and requires a licensee to report the bringing of a criminal complaint charging a felony against the licensee.

AB 1545 - This bill would establish in state government the Housing Agency, comprised of the Department of Housing and Community Development; the Bureau of Real Estate, which this bill would redesignate as the Department of Real Estate; the Contractors’ State License Board; the Structural Pest Control Board; and the Department of Real Estate Finance, which this bill would also establish. The bill would redesignate the Business, Consumer Services, and Housing Agency as the Business and Consumer Services Agency, transfer certain duties of that agency to the Housing Agency, and make other conforming changes.

SB 378 - This bill would provide, commencing with the 2016-17 fiscal year, that the base year value of an original property may be transferred to a replacement dwelling that is of greater value, and would require the base year value of the replacement dwelling to be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the base year value of the original property.