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Last month on April 27, after an absence of two years due to the COVID-19 pandemic, members of the Silicon Valley Association of REALTORS® were among over 2,000 California REALTORS® who once again traveled to the State Capitol for Legislative Day. Legislative Day is the California Association of REALTORS®’ pinnacle REALTOR® legislative event. REALTORS® make up the largest business interest group that comes to Sacramento each year to meet with their elected officials and discuss issues affecting homeownership and the real estate industry.
At a morning briefing held at the Sacramento Convention Center, C.A.R. President Otto Catrina welcomed members to the event. He noted the REALTORS®’ presence at the State Capitol showed they value homeownership and private property rights.
“We need to remember to fight for homeownership, private property rights, free enterprise and responsible government. We are here to support not just our business but our clients,” said Catrina.
C.A.R.’s new CEO John Sebree greeted California REALTORS® and reminded them that April is Fair Housing Month. Sebree said, “We all have the opportunity to be part of the transformative solutions to make sure all people have access to homeownership.”
Sebree mentioned C.A.R.’s partnership with nonprofit housing organizations to provide closing cost grants up to $10,000 for eligible first-time homebuyers from underserved communities, and C.A.R.’s fight for and successes in fair housing legislation, including legislation that removes discriminatory language in property records.
Among the speakers at the morning briefing were Assembly Republican Leader James Gallagher, who indicated “homeownership is a fundamental principle.” Gallagher urged REALTORS® to continue educating legislators on the need to drive housing costs down for California families and belief that legislators can work across the aisles to ensure the California dream of homeownership remains viable for the future. He estimated 2.5 million homes need to be built by 2030.
“We must move through all the obstacles to make sure that the dream of homeownership can be achieved,” said Gallagher.
Senate Majority Leader Emeritus Robert Hertzberg spoke on the need to build more homes. “It’s all about housing. Homeownership is the backbone of our community. It builds generational wealth. It is something we need to focus on at the core, the opportunity to give people hope, and help the ‘missing middle.’”
The highlight of the morning was California Governor Gavin Newsom’s address to REALTORS®. Newsom fiercely chastised critics and stressed, “facts matter.” He indicated California had 21% growth five years prior to the pandemic. Last year, California’s economy, along with two smaller states, grew the fastest. California grew 7.8% last year.
Newsom noted the state is dominated by venture capitalists, and that the state is number one in factory jobs, in manufacturing, and in household income growth. California had the largest surplus in the U.S., and was able to give $12 billion in tax rebates last year.
Additionally, the state has passed 31 housing bills and 17 bills pertaining to CEQA, but Newsom said, “We got more work to do to address housing at all income levels.”
Newsom thanked REALTORS® for keeping the economy moving, for all they did during the pandemic, and for creating opportunities for families and contributing to the state’s growth.
“I have pride in this state. I think the best days are ahead of us. We are moving in the right direction as we haven’t done in the past,” said Newsom.
During last week’s Legislative Day, California Association of REALTORS® Senior VP for Governmental Affairs and Chief Lobbyist Sanjay Wagle said REALTORS® cut across party lines and their power lies in member involvement.
“The bottom line is your participation is vital,” Wagle told REALTORS®. “Our power is in your involvement, your response to Red Alerts, your decision-making, your contributions.”
Wagle indicated in the 1960s, the median price was three times the average income; today, it is seven times the average income. The main reason is housing is not being built at the rate needed.
“It is vital that we make homeownership not some sort of a rich person’s privilege or a software engineer’s privilege, but once again a normal part of California middle class life. The solution as we all know is supply,” said Wagle.
Wagle briefed members on two hot issues to take to their legislators: OPPOSE ACA 7, the anti-housing constitutional amendment, which undoes the Costa Hawkins Rental Housing Act and allows for radical rent control and guts laws that create housing; and SUPPORT SB 6, which makes it easier and quicker to convert unused commercial property to residential housing.
SILVAR members did just that when they met virtually with Assembly members Marc Berman (CA Assembly District 24) and Evan Low (CA Assembly District 28), and Senators Dave Cortese (CA Senate District 15) and Josh Becker (CA Senate District 13). The legislators said they understand the critical need for housing but indicated legislators in other parts of the state do not see it the same way.
The first-ever virtual California Association of REALTORS® Legislative Day kicked off on April 27 with welcome remarks from 2021 President Dave Walsh, 2021 President-elect Otto Catrina and other C.A.R. officials who underlined the urgency of increasing the state’s housing supply and addressing barriers to homeownership.
“Closing the homeownership gap is essential to closing the generational wealth gap in our country,” said Walsh.
California Governor Gavin Newsom addressed REALTORS® and lamented that the twin crises of housing affordability and homelessness have dominated state’s political conversations for decades, even before the pandemic. While the state has made great strides with Projects Roomkey and Homekey, Newsom said there is still a lot more to do.
“At the end of the day, the fundamental truth is we need to simply build more housing at all income levels,” said Newsom.
Newsom indicated this can only be done by a combination of subsidies, political will, and a dose of accountability across the spectrum. “I consider the REALTORS® key partners in this work.”
The Governor thanked REALTORS® for their partnership and said he looked forward to pushing the pandemic behind so the state could reset its key priorities to solve the housing and homeless crises.
There were also greetings from California’s Senate President pro Tempore Toni G. Atkins (CA Senate District 39), Assemblywoman Blanca E. Rubio (CA Assembly District 48) and California State Senate minority leader Scott Wilk (CA Senate District 21), who pledged their commitment to housing for all.
“The pandemic has now intensified the need for housing affordability, access and opportunity,” said Atkins.
Rubio related her personal story as an immigrant and said it has given her a genuine understanding of the daily struggles and barriers immigrants and working families face. She pledged support for immigrant families, small businesses and their workers.
Wilk underlined the need to make California a safe and affordable place to call home for generations to come. He said he worries his own children cannot afford to live in California. “This is a very real problem that affects every single California family… REALTORS® can make a difference in meeting the housing challenge.”
Legislative Day gave members an opportunity to meet virtually with their legislators and discussed C.A.R. hot issues (see article in Government Affairs). Later C.A.R. CEO Joel Singer interviewed political columnist Dan Walters. Walters analyzed Governor Newsom’s handling of the pandemic and shared his own views on state politics and the future of California’s housing situation and economy.
Members of the Silicon Valley Association of REALTORS® joined 2,500 California REALTORS® in Sacramento on May 1 for the California Association of REALTORS® annual Legislative Day. This year’s theme, “Homeownership Matters,” was evident in the speeches of REALTOR® officials and politicians, and in discussions the REALTORS® had with their respective legislators.
California Gov. Gavin Newsom, the special guest speaker at the morning briefing, said California is experiencing a “crisis moment, a crisis of confidence and a crisis of affordability.”
Newsom is deeply committed to address the housing issue and he wants to build 300,000 to 400,000 units on an annual basis. “Let us not forget that we are better off when we’re all better off,” said Newsom.
State Senator Scott Wiener, author of SB 50, the Housing Development Incentives bill, told REALTORS® at a luncheon that today’s zoning laws, crafted over 50 years ago, are outdated. Wiener said his legislation is about people and people’s lives.
In their meetings with state Senators Jim Beall and Jerry Hill, and Assemblymembers Marc Berman and Evan Low, Silicon Valley REALTORS® asked them to support the REALTOR® position on the following bills:
Vote YES on AB 1590 (Rubio) – First-Time Low- and Moderate-Income Homebuyer Tax Credit for Disadvantaged Communities. C.A.R. is sponsoring this bill which creates a first-time homebuyer tax credit for low- and moderate-income individuals and families purchasing a home in a disadvantaged community. AB 1590 allocates $50 million for first-time homebuyers who have never owned a principal residence; who earn 120 percent or less of the area median income; and who are purchasing a home in a disadvantaged community. The tax credit would be equal to 3 percent of the purchase price of the home or $5,000, whichever is less.
Vote YES on SB 50 (Wiener) – Housing Development Incentives. C.A.R. is co-sponsoring this bill which seeks to authorize the implementation of transit-rich housing project bonuses for new urban developments, so families can afford to live within the communities in which they work. SB 50 encourages the development of mid-rise, multi-family unit, housing construction with close, walkable access to bus and rail transit. Residential developments may only obtain a “height” bonus if they meet local planning, zoning and design requirements. Local governments may approve higher-density housing, with reduced or eliminated parking requirements, provided the site is adjacent to transit or near jobs.
Vote No on SB 329 (Mitchell) – Mandatory Section 8. C.A.R. is opposing this bill which forces all residential rental property owners to participate in all government assistance and housing subsidy programs, such as the Section 8 housing program, by entering into a legally binding contract with a government agency. This bill forces all landlords into contracts whose provisions they may not be able to fulfill. C.A.R. says the bill does not fix the underlying problems with Section 8. Since housing authorities are understaffed, it can take as long as 60 days before all applications are submitted, inspections made, and contracts signed. During that time, the unit sits vacant at a substantial loss to the landlord.
All staunch proponents of housing, the legislators thanked the REALTORS® for their support and advocacy. They called on REALTORS® and others to stand up and speak louder about the need for housing “because the other side is so loud.”
Low said he has received sharp, mean-spirited backlash from those who oppose his pro-housing stance, some even demanding his recall, but he is not wavering. “Oftentimes we need to speak truth to the powerful. I feel very strongly about this. It’s important to make courageous decisions,” said Low.
Here are SILVAR members ready to meet state legislators.
Early this month, about 50 SILVAR members traveled to Sacramento 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.
The Assemblyman 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.
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About 50 SILVAR members joined over 2,000 California REALTORS® in Sacramento on Wednesday for the annual California Association of REALTORS® (C.A.R.) Legislative Day, the one day each year that the state’s REALTORS® meet with their legislators and discuss real estate-related policies and issues.
California Governor Jerry Brown spoke to California REALTORS® at the Sacramento Convention Center during the C.A.R. morning briefing. Brown said the economy has its cycles and at present the state’s economy is doing well, thanks to the business sector.
“California is the land of sunshine and smart people. That’s why people want to be here. Silicon Valley has the smartest people in the world,” declared the Governor.
Brown told REALTORS® to stay the course, stating, “REALTORS® are the backbone of what California looks like, of what California is.”
At a joint luncheon with members of the San Mateo County Association of REALTORS® and Santa Clara County Association of REALTORS®, Los Angeles Times Sacramento Bureau Chief John Myers analyzed the state’s political landscape. He indicated California has “places of great success and places of great struggle,” a dichotomy between urban versus rural, haves versus have nots, the highly employed places versus low employed.
Myers said it will be interesting to see how the state plans to implement the $15 minimum wage; how the state will expand the family leave law; and what arises from discussions on affordable housing. Other fundamental issues looming over California are education, transportation and water.
According to Myers, this year’s state elections may be the last chance to bring new blood to the state legislature, since new legislators will be serving 12-year terms due to the passage of Proposition 28. Myers also warned REALTORS® to expect a longer and confusing U.S. Senate ballot for the June 7 primary because of how the names of the 34 candidates seeking to replace retiring Senator Barbara Boxer are laid out on the ballot. Choose only one candidate. Selecting two or more candidates would disqualify your vote.
After the luncheon, SILVAR members met with Senators Jim Beall and Jerry Hill, and Assembly members Rich Gordon and Evan Low. Members asked their support on the following bills:
SUPPORT C.A.R.-sponsored bill AB 2693 (Dababneh) – PACE Loan Disclosure, which seeks to change the super-priority status of PACE loans and to require disclosures to consumers before they obtain such a loan. A PACE loan allows a homeowner to borrow money to finance energy upgrades. The loan is then repaid as a surcharge on the property tax. The PACE loan takes primary position to the mortgage. If a homeowner takes out a PACE loan they may have difficulty refinancing or selling their home if the new mortgage holder, like Federal Housing Finance Agency (FHFA), does not allow for PACE loans. If the cost of repaying the PACE loan and any mortgages on the property exceeds the purchase price of the home, the seller will be forced to make up the difference. This will prevent some homeowners from selling when they need or want to. Current disclosures given to homebuyers do not explain the potential consequences of using PACE loans. AB 2693 will require Truth in Lending type disclosures to borrowers.
SUPPORT C.A.R.-sponsored bill AB 2760 (Mathis) – Support Animal Regulations seeks to distinguish between a medically necessary companion or support animal and other animals kept as pets. C.A.R. wants to clarify current law to allow legitimate support animals to share rental housing and to allow landlords to avoid unnecessary litigation. Service animals, as defined under federal law, are animals individually trained to do work or perform tasks for the benefit of an individual, like guide dogs and signal dogs. Companion animals simply provide comfort to an individual. They are not afforded the same protections under the ADA or California State Law as service animals, even though they are kept as the result of a mental health professional’s prescription, causing confusion for housing providers. The vagueness in state law allows individuals without a legitimate need to claim a status for pets that is not deserved. AB 2760 will allow tenants to keep a support animal on the property provided that the tenant has a prescription validating the need for the support animal from a California-licensed mental health professional. They must also comply with all federal, state and local requirements, such as vaccination or sterilization mandates.
OPPOSE SB 1053 (Leno) – Sec. 8 Housing Mandate, which seeks to expand protected classes under the Fair Employment and Housing Act to include those who receive government rental subsidies. SB 1053 forces residential rental property owners to participate in the federal and local government’s voluntary Section 8 housing program. Section 8 was always intended to be a voluntary program. By forcing property owners to accept tenants with housing vouchers or other subsidies, SB 1053 forces landlords to participate in Section 8 without regard to the property owner’s specific circumstances. It forces landlords to endure administrative burdens and increased costs due to delays that result from understaffed housing authorities and requires landlords to accept objectionable and burdensome lease terms. Under HUD rules, housing authorities must use a HUD formula to determine an “acceptable” rental rate.
On Wednesday, over 40 SILVAR members joined hundreds of REALTORS® from across the state in Sacramento for Legislative Day, the time of year when California REALTORS® personally meet with their legislators and discuss issues affecting the industry, their clients and their business. REALTORS® make up the largest group to visit Sacramento each year and speak to their local state Assembly and Senate representatives.
Highlights of the California Association of REALTORS® morning briefing at the Sacramento Convention Center included welcome remarks by C.A.R. President Don Faught and other C.A.R. officers, and a special address by Governor Jerry Brown, who noted the importance of REALTORS® and what they do.
“You are in an important place. We have to work with you because you are so powerful,” exclaimed Brown. “We’re all working to make California a great place.”
The governor told REALTORS® that California “is on the move. Great opportunities are happening in Silicon Valley, Orange County … in manufacturing, warehousing, technology. Housing is coming back. We have got to continue.”
C.A.R. Chief Lobbyist Alex Creel briefed REALTORS® on hot issues and important points they needed to convey to their political representatives. They included:
Vote Yes to SB 30 (Calderon) and AB 42 (Perea) – Short Sale Debt Forgiveness. These bills would conform California law to federal tax law, making clear that debt forgiven in a short sale is not income. These bills were placed on “suspense files” because they are deemed to cost a certain threshold and are to be eventually considered once the state budget has passed. In the meantime, families are stuck in limbo because those currently in short sale escrows can’t finalize these transactions without the fear of potentially incurring state tax liability. Sellers need to know now that the debt forgiven is not going to be treated as income for state tax purposes. REALTORS® told their representatives that the state law needs to conform to the federal tax law passed on debt forgiveness. It’s the right thing to do and taxpayers “shouldn’t be held in suspense.”
Vote No to AB 905 (Ting) – Private Transfer “Tax.” This measure seeks to create a private transfer tax to fund environmental improvements to a property and forces a financial burden on future owners of property with no oversight, no accountability, and no limit on how long the tax can be imposed, even years after the improvement has been paid for or the useful life of the improvement has been exhausted. REALTORS® explained there is no connection between the fee and the actual cost of the improvement, no oversight on the entities receiving the funds, no “cap” on the collection or the duration of the fee. Also, the Federal Housing Finance Agency (FHFA) has already adopted regulations restricting the imposition of private transfer taxes.
Vote No to AB 1164 (Lowenthal) – Wage Liens on Property. This bill creates a super-lien for wage claim disputes. Under existing law, trades people and others who work to improve a property have the right to record a mechanics lien against the property for payment for that work. An employee who has a wage dispute can do the same with an employer. This measure seeks to expand the mechanics lien concept so an employee may record a lien against any property owned by the employer, even property that has no connection to the dispute. REALTORS® explained to legislators that legal remedies for wage disputes already exist. This measure denies property owners due process since the lien can be filed without notice or opportunity to contest the claim; the lien would increase the cost of loans and reduce the availability of lending options for borrowers; and the lien would allow an employee’s wages dispute to cloud title on all property owned by the owner.
Vote No on AB 1229 (Atkins) – Rent Control. This measure would dramatically weaken the rent control limitations contained in the landmark “Costa-Hawkins” law sponsored by C.A.R. in 1995. Under this existing law, new construction of rental units is not subject to local rent control ordinances. This measure seeks to use inclusionary zoning to allow local governments to create zones in which certain mandates are placed on builders. In this case, the mandate would be to set aside a certain percentage of units at below-market rent levels. REALTORS® told legislators this measure would discourage the creation of new rental housing at a time when it is most needed. The legislature has repeatedly made it clear its opposition to expanding rent control to new construction.
California Governor Jerry Brown will speak to REALTORS® at the California Association of REALTORS® Morning Briefing on Legislative Day. SILVAR members are encouraged to participate in this important event, which will be held on Wednesday, May 1. The deadline to sign up is Monday, April 22.
Legislative Day is the day REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. REALTORS® make up the largest group that travel to the nation’s capital to speak with their legislators.
When members arrive in Sacramento, they will receive a special briefing at the Sacramento Convention Center from California Association of REALTORS® lobbyists, REALTOR® leadership, Governor Brown, and other special guests. A joint luncheon with members of SILVAR, the Santa Clara County Association of REALTORS® (SCCAOR) and San Mateo County Association of REALTORS® (SAMCAR) will follow the briefing.
After lunch, SILVAR REALTORS® will attend meetings with all of the legislators in Silicon Valley, including Senators Jim Beall and Jerry Hill, and Assembly Members Paul Fong and Rich Gordon. At these meetings, REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
Personally meeting our legislators and discussing real estate-related issues that may adversely affect our clients – buyers, sellers, homeowners and private property rights – makes a difference! For more information about Legislative Day, contact SILVAR Government Affairs Director Jessica Epstein at (408) 200-0100.
Legislative Day is the day when REALTORS® from all over California travel to Sacramento and meet with their elected officials to discuss critical legislation that can affect REALTORS®, homeowners and private property rights. This year Legislative Day is on Wednesday, May 2.
Once REALTORS® arrive in Sacramento they will receive a special briefing from California Association of REALTORS® leadership and honorable guests, including California Governor Jerry Brown, who has confirmed that he will be speaking at the Morning Briefing.
A luncheon will follow the briefing. Dr. Tony Quinn, co-editor of California Target Book and non- partisan analyst of California’s legislative and congressional elections, will be the guest speaker at the luncheon with members of the Silicon Valley Association of REALTORS®. Dr. Quinn has 40 years experience with California state government. Currently, he is engaged in writing and elections analysis. During his career he has headed several public relations firms, directed the Office of Economic Research in the California Department of Commerce, served as Chief Consultant for Elections and Reapportionment and Policy Director of the Assembly Republican Caucus. He also served as a member of California Fair Political Practices Commission and assistant to the California Attorney General.
After lunch Silicon Valley REALTORS® will meet with their legislators, including Senators Elaine Alquist, Sam Blakeslee and Joe Simitian, and Assembly members Jim Beall, Paul Fong, and Rich Gordon. At these meetings REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
California REALTORS® are encouraged to attend Legislative Day. REALTORS® make up one of the largest groups that hit Sacramento every year.
Wednesday, May 2, is Legislative Day. This is the day REALTORS® from all over California will meet with their elected officials in Sacramento and discuss critical legislation that can affect REALTORS®, homeowners and private property rights. Members of the Silicon Valley Association of REALTORS® will be participating in this annual one-day event in Sacramento.
Once members arrive in Sacramento, they will receive a special briefing from California Association of REALTORS® lobbyists, REALTOR® leadership and honorable guests. A luncheon will follow the briefing. California Governor Jerry Brown has been invited to speak at the event.
After lunch, SILVAR members will have meetings with all of the legislators in Silicon Valley, including Senators Elaine Alquist, Sam Blakeslee and Joe Simitian, and Assembly members Jim Beall, Paul Fong, and Rich Gordon. At these meetings, our REALTORS® will have the opportunity to discuss important real estate issues, such as private property rights, legal reforms and housing opportunity policies.
SILVAR REALTORS® who plan to attend Legislative Day should register for the event by calling SILVAR at (408) 200-0100, or sign up online at ims.silvar.org no later than Monday, April 23. See flyer for cost and more details.
Silicon Valley Association of REALTORS® says ... 