Real Estate Articles
REALTOR®: Realtors Take Their Issues to the State Capitol
SILVAR President Leannah Hunt introduces State Senator Joe Simitian to Realtors gathered at the Senate Floor Gallery in the State Capitol building. Simitian hails from Palo Alto.
On Wednesday June 4, over 50 members of the Silicon Valley Association of REALTORS® (SILVAR) joined colleagues from across the state in Sacramento to meet with elected officials in the State Capitol for Legislative Day. The Realtor presence makes an impact in Sacramento as the California Association of REALTORS® (C.A.R.), with its 170,000 members, forms the largest business interest group that treks to the State Capitol each year.
Every year on Legislative Day, Realtors from across the state meet with their state legislators and discuss important issues that affect private property rights, homeownership and the real estate industry. This year, SILVAR Realtors joined over 2,000 Realtors at the Sacramento Convention Center to listen to presentations made by C.A.R. President Bill Brown and other C.A.R. officials, and then meet with their state Senators and Assembly members.
State Senator Darrel Steinberg and Assemblyman Mike Villines were special guests and told Realtors the state legislators understand how the housing crisis affects government's ability to provide public services - if the value of real estate goes down, so does the state budget because personal income taxes, sales tax and property taxes also decline.
Political consultant Darry Sragow, the guest speaker at the Realtor luncheon, examined the latest trends in state politics. Sragow said California's political landscape has changed and California has now become a minority state. The state's population today is 45 percent white, 34 percent Latino, 12 percent Asian American and 6 percent African American. Sragow also indicated the number of registered Democratic and Republican voters has dropped, while the number of Independents has increased from 9 percent to 19 percent.
Sragow said the increase in Independents, poor approval ratings for President Bush and Governor Schwarzenegger and Barack Obama's victory as the Democratic presidential candidate over the more experienced Hillary Clinton, send a strong message that voters are angry.
"You need to participate in the political process, or you will have no one to blame but yourself," Sragow told Realtors.
SILVAR members were able to personally meet with Senators Abel Maldonado, Elaine Alquist and Joe Simitian, Assemblymembers Ira Ruskin and Sally Lieber, and a staff member of Assemblymember Jim Beall. The Realtors urged the legislators to support the Realtor positions on three important bills:
• AB 2678 (Nunez), which would require among other things, that all homes and commercial property in California have an energy audit at point-of-sale, and that mandatory energy efficiency investments be made. Realtors strongly oppose the point-of-sale requirements in this bill because if enacted, AB 2678 could add thousands of dollars to the cost of purchasing a home, including up to $400 just to have the home audited.
• SB 1055 (Machado), which will eliminate the tax penalty from the "phantom" income created when lenders forgive some of a homeowner's mortgage to allow a "shirt sale." Homeowners already in distress are then taxed on this "phantom" income. SBB 1055 would eliminate the tax liability for only two years. The Realtors said they would support the bill if it is amended so it conforms to federal law and allows three years of such relief, instead of just two.
• SB 1448 (Scott), which will increase fines to be sought by district attorneys when someone practices real estate without a license. Realtors support this bill.
The senators and assembly members said their week was busy and challenging because they were confronted with the daunting task of balancing the budget. The state is currently facing a $20.4 billion deficit.
Senator Jose Simitian, who hails from Palo Alto, told SILVAR members, "We have got to spend less and raise more and do it now."
Senator Maldonado thanked the Realtors for traveling to Sacramento and emphasized the importance of the Realtor presence in Sacramento.
"I know C.A.R. is not in the business of hurting people," said Maldonado. "It's in the business of putting people in homes. You need to educate others and let them know these bills are not really helping people; they are actually hurting them, and in the end the people pay. … I get it."
Legislators in turn praised Realtors and thanked them for expressing their concerns.
"Many of us have this California dream and you are a group that enables them to achieve that dream," said Senator Alquist.
"I really want to compliment you for making it clear and simple by focusing on bills that I am actually going to see," Assemblemember Ira Ruskin said.
SILVAR Board Director John Gerber, a Realtor with Alain Pinel Realtors in Menlo Park, said he was glad he came to Sacramento. "This is where politics starts. It was a good opportunity to meet with our legislators and see politics in action," Gerber said.
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.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.