Legislators Listen to REALTORS(R) on Legislative Day
Wednesday, June 9, 2010
SILVAR members gathered for a photo before heading to the State Capitol building to meet their legislators.
On Legislative Day in Sacramento this week, California Association of REALTORS® President Steve Goddard told the thousands of REALTORS® gathered at the Sacramento Convention Center that legislative proposals can affect the real estate industry, their business, homeowners and buyers and ultimately, the economy. Goddard said therefore, the role of REALTORS® on Legislative Day is crucial.
“When you meet with your legislators, you speak not only for yourselves, but for our profession and our clients. The few hours you spend with them will be very worthwhile,” Goddard said.
Members of C.A.R.’s leadership team each addressed the REALTORS® and stressed the importance of this day. Special guests State Senator Robert Dutton and Assemblymember Mary Hayashi also encouraged the REALTORS®.
Dutton said REALTORS® are “dream makers” who make dreams a reality. He said REALTORS® should to stay active, get involved and stay the course.
“Homes have never been more affordable, but we got to create jobs in the private sector,” Senator Dutton said. “We will come out of this and come out stronger and better. You just have to seize that opportunity.”
Assemblymember Hayashi also stressed the importance of REALTORS® in the lives of people. Especially in this economy, she said REALTORS® make a difference in helping people achieve their dreams and improve their quality of life. She encouraged REALTORS® to participate in the political process because “yours is the voice of knowledge and change.”
“You are familiar with the neighborhoods, you know where the needs are, what it takes to have a successful community. You are the best spokesperson for your profession and clients, to protect all that they have worked so hard to achieve and attain,” Hayashi said.
C.A.R.'s Vice President of Government Affairs and Chief Lobbyist Alex Creel said the role of REALTORS® on Legislative Day is to be “lobbyists for the day.”
“The legislators don’t know the issues and rely on the lobbyist to educate them,” Creel said. “Today you are going to educate them and ask for their votes.”
After the Joint Legislative Day Luncheon at the Sheraton Grand Hotel with membersof the San Mateo Association of REALTORS® and Santa Clara County Association of REALTORS®, SILVAR members walked across the street to the State Capitol building and did just that.
It turned out to be a very productive day for the 40 SILVAR members who were able to meet and personally speak with Assembly members Paul Fong, Jim Beall, Jr., Ira Ruskin, Senator Joe Simitian and the staff of Senator Elaine Alquist. Members educated the legislators about the issues affecting the industry and persuaded them to support the following issues:
• REALTORS®, buyers and sellers are encountering problems with appraisals.
REALTORS® shared their your own stories about appraisals, urged Assembly Members and Senators to support future legislation to clarify and give the Office of Real Estate Appraisers (OREA) the authority to regulate appraisal management companies (AMCs) to ensure the quality, timeliness and neutrality of appraisals conducted by AMCs. They also urged legislators to support future legislation to make appraisals “portable” if transferring lenders.
• Raise concerns about the following proposals which some legislators believe could address the state budget gap and oppose these proposals for the following reasons:
1. Forced overwitholding on independent contractors.
It only creates administrative burdens and doesn’t solve the budget problem.
2. Tax on real estate-related services.
Such a tax would increase the cost of housing because all services involved in purchasing a home will be taxed (e.g., home inspection, structural pest control inspection, escrow services, etc.). It is regressive, placing a disproportionate burden on lower-income households because generally all of their income is spent on goods or services. It also places small companies at a disadvantage (larger companies can employ people “in house” for many services, while small companies do not), and puts California businesses at a disadvantage (Californians can choose out-of-state service providers when available rather than those subject to the tax)
3. Changes in the Mortgage Interest Deduction (MID).
Any alteration in the MID would be harmful to everyone. The MID encourages homeownership, which in turn promotes community stability.
• Support the passage of SB 1178 (Corbett) – Anti-Deficiency Protections - in the Assembly.
The Senate just passed the C.A.R.-sponsored SB 1178 (Corbett), which would extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. The proposal is now in the Assembly. REALTORS® explained passing SB 1178 is fair since most homeowners didn't know when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. Under current law, lenders could pursue families to collect this “deficiency debt” years down the road. Also, SB 1178 does not apply to loans that are not refinancing purchase money mortgages; to “cash-out” refinances, unless the money was used to improve the home; and to HELOCs.
• Oppose AB 1919 (Davis) Survey Monument Preservation Fund
The existing law authorizes the board of supervisors of a county to establish a survey monument preservation fund and to impose a user fee, not to exceed $10, to be charged and collected by the county recorder as a condition to the filing or recording of any grant deed conveying real property except for those grant deeds conveying lots created by recorded tract maps. This bill would delete this exemption from the user fee. REALTORS® explained this is in essence, a transfer tax, not a fee; lots on recorded tract maps do not benefit from this fee and it’s a fee related to service providers.
The legislators were very receptive to SILVAR members. Then they explained they are once again faced with budget challenges greater than last year and have to make difficult choices.
“It’s the greatest challenge that we face at this particular time,” said Senator Simitian. “I have never seen people as anxious and scared as I have seen them today in my 26 years in public service.”
Simitian’s comment echoed political strategist Phil Giarrizzo’s earlier remarks. The guest speaker at the joint luncheon said the results of the June 8 primaries showed that “voters are tired of the bickering.”
“People are looking for solutions, substance, leadership and someone to trust,” Giarrizzo said. “People are experiencing tremendous fear. They know the difference between a campaign of promise and pledge and results and delivery. … People are demanding leaders with sound judgment because fear has taken over.”
The legislators promised to take the REALTORS®’ message into consideration.
“I hear the wisdom of what you are saying,” said Assemblymember Ruskin.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.
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