Event Coverage
SILVAR REALTORS® Address C.A.R. 'Hot Issues' with Legislators
SILVAR members get ready to meet their legislators.
In light of California's ongoing housing availability/affordability and supply crisis, this year on Legislative Day, in addition to the "hot issues," the California Association of REALTORS® (C.A.R.) asked REALTORS® to ask their legislators what they propose to do to increase the housing supply in California
C.A.R. senior vice president and chief lobbyist Alex Creel said home prices are too high because of the limited supply of homes and that's because government at the state and local level is constraining supply and this has led to laws on rent control and exclusionary zoning.
The state's homeownership is among the lowest in the nation. Average rents in California cost 50 percent higher than the rest of the country.
"The solution to the housing affordability crisis is not price control. It is dealing with supply and the constraints that limit supply," said Creel.
Creel said the legislature can help by streamlining the permitting process, fixing CEQA, requiring local government to meet their housing requirements, fund affordable housing and defeat bills that discourage construction of rental housing.
Thus, after the joint luncheon, SILVAR members met with Senators Jim Beall and Jerry Hill, and Assembly members Evan Low and Marc Berman and discussed the housing issues and asked them to take C.A.R.'s position on the following bills:
AB 1979 (Bonta/Steinworth) - Homeownership Savings Accounts - SUPPORT
This bill allows homebuyers to establish a Homeownership Savings Account (HSA) to purchase a home without paying tax on the interest earned on funds in that account; permits taxpayers to exclude from gross income earned on money contributed to a HSA up to 20 percent of the median home price as determine by the Department of Housing and Community Development; and permits contributions to HSA from relatives and others, as well. This would help families struggling for a down payment on a home, benefiting 3.5 million families.
SB 1469 (Skinner) - Accessory Dwelling Units - SUPPORT
Despite recent changes to state law making it easier to build accessory dwelling units (ADUs), many local governments are using overly restrictive ordinances and other loopholes to deny their development. This bill would streamline the approval process for building ADUs by prohibiting the imposition of impact fees, connection fees and other fees levied by local entities on construction of ADUs and would only permit local government to deny construction if it adversely impacts fire and life safety. It also states if the local government fails to act on the application within 60 days, the project would be approved.
AB 2618 (Bonta) - Specialty Licensing - OPPOSE
C.A.R. opposes this bill because it requires real estate licensees to complete a mandatory property management certification program to perform property management services that they are already licensed to provide. It also requires private owners to obtain this certification even if they use a licensee to manage their property. The measure is unnecessary, duplicates existing law, and provides no additional consumer protections. There is no data to support the need for additional certification or training.
The legislators were very supportive of the REALTORS®' position on the bills and their call for more housing. Senator Beall noted last year was a big year for housing with the passage of 15 bills addressing housing.
"My job is to make good meaningful legislation. 2017 was a historical year for housing legislation," said Beall.
Beall said he is proud of the $4 billion housing bond on the November 2018 ballot. If approved by voters, $1 billion would be used to help military veterans purchase homes with low or no down payment at below-market interest rates. The other $3 billion would pay for affordable housing programs. This would help construct about 50,000 homes.
Beall balked at certain groups, including environmentalists, stating, "If you're not for housing you're not a true environmentalist."
He said SB 2, which he co-authored, would allocate $2 billion in general funds for affordable housing.
These bills will help, but they don't create enough housing, Beall said. "We need an ongoing source of revenue. Our next step is to strategize in 2019 for an ongoing source of revenue."
On SB 1469, Beall said he would like to treat ADUs the same as a remodeling project. "I think it's important that we legalize safe ADUs so they don't have to be illegal, and encourage limiting fees or not apply fees. It's good for the county and creates more jobs," said Beall.
The legislators encouraged REALTORS® to "keep doing what you're doing."
"The housing crisis is severe and we all need to come together to solve it. It's going to take a long time to develop our way out of this," said Berman.
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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 contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.