Event Coverage
REALTORS® to Legislators: Support Bills that Create More Housing
About 50 SILVAR members traveled to Sacramento on Wednesday for Legislative Day, joining over 2,500 California REALTORS® for their annual meetings with their respective legislators. At the meetings, REALTORS® assumed the role of "lobbyists for the day" and discussed bills that could impact homeowners and private property rights.
In the morning, REALTORS® gathered at the Sacramento Convention Center for a briefing by California Association of REALTORS® (C.A.R.) leadership. C.A.R. President Geoff McIntosh underlined the importance of REALTORS® coming together in support of homeownership.
"We are the largest supporters of private property rights in the state," said McIntosh.
Governor Jerry Brown was back this year to speak to the REALTORS®. He, too, stressed the importance of the profession and the need to work together.
"You touch people in the most important time of their life, when they buy a house," said Brown.
At the joint luncheon with neighboring associations, guest speaker Assemblyman Marc Steinorth (R-Rancho Cucamonga) mentioned when REALTORS® visit Sacramento, their legislators listen to them. He said legislators like him would think, "You matter because you are from home. I will hear your message."
Steinorth values homeownership. "Renting is not the path to success. The pathway to middle class success starts with homeownership," he said.
And while he is for affordable housing, Steinorth said "once it transcends the goal of homeownership, I oppose it."
Steinorth then talked about AB 53, a bill he authored that would allow individuals to save up to $10,000 tax free which would go toward the purchase of their first home. He explained while the solution to the housing affordability crisis is to increase supply, the state also needs to increase better buyers who save and are financially responsible.
Steinorth called on REALTORS® to get involved in their communities and in government. "The decision needs to come from the industry to educate us because you are the experts, the job creators. You make dreams a reality," said Steinorth. "For every transaction you make you have created a better lifestyle for someone. You are all about the transaction, relationships, the community."
At their meetings with Assembly members Marc Berman and Evan Low and state Senators Jim Beall and Jerry Hill, SILVAR REALTORS® discussed three main issues:
* Oppose AB 1059 (Gonzales Fletcher), which prohibits dual agency in commercial real estate transactions. If passed, it would drastically limit consumer choice.
* Oppose to SB 649 (Hertzberg), whose intent is to expand the state sales tax to services. While the bill does not impose the tax itself, it lays the framework for a service tax. Real estate is the most service intensive business, with 10-12 services, like home inspections, appraisal, pest control, insurance, etc. A service tax on real estate services would hurt housing affordability and especially adversely impact low and middle class families.
* Support legislation that seeks to increase the supply of housing and oppose bills that discourage its creation, like stricter rent control. The only solution to the housing affordability problem is to increase the housing supply. Price controls are not the solution. Policies like rent control don't work. Telling property owners that they can't change market rates discourages investment in housing.
California's housing rate is the lowest in the U.S. According to C.A.R., 180,000 housing units a year must be built to keep pace with population growth. Only half of that number is being built.
REALTORS® want the legislature to streamline the permitting process; fix the California Environmental Quality Act (CEQA), which imposes too many burdensome building requirements; require local governments to meet housing requirements; and fund affordable housing and defeat bills that discourage construction for rental housing.
The state legislators thanked the REALTORS® for their support and their visit to Sacramento. They all stated they value homeownership and do not support rent control.
"I've never liked it in any level of government," said Hill.
Beall, who authored the bill that will raise the gas tax and vehicle fees in order to repair roads and transit, acknowledged while the tax hike is controversial, it is badly needed to repair of the state's pothole-ridden, decaying system of roads, highways and bridges. It is connected to homeownership, as well. Beall said because of the housing affordability and shortage problem people forced to live miles away from work have to drive through the bad roads, which costs them more on travel time and car maintenance.
Low said he hesitates on bills that increase the cost of housing. He called on REALTORS® to attend council meetings to show their support and encourage council members to vote with their convictions and "vote yes in my backyard, instead of no." Many are afraid to, said Low, because any discussion regarding the creation of more housing results in a backlash from environmentalists and NMBY activists.
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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 email or call the SILVAR office at (408) 200-0100.