Skip to content

Big Money Talks – FPPC Releases PAC Investment $$

If you want to play with the Big Boys, this is the arena they play in. We didn’t make the top 15 but pulled in at #16. If you do the math, that $49 contribution from EVERY MEMBER only comes to $4.4 million. We invest just 16% of what the Teachers Union does, 31% of the SEIU, less than half of the Pechanga’s. We did edge out the Correctional Workers this year but they already got their big raise a couple years ago. That was money well spent and part of the reason the state budget is in the dumper now.

Any questions about why Arnold listens when the CTA speaks? Any questions on why the state continues to hire people and dole out raises while Riverside County unemployment hits 15%?

You’re either at the table or …

Over $1 Billion Spent by 15 Special Interest Groups on Political Campaigns and Lobbying Efforts

Today the Fair Political Practices Commission (FPPC), the state’s political watchdog agency, released a new report detailing how 15 wealthy special interests spent more than $1 billion throughout the last ten years in an attempt to shape public policy by influencing California’s voters and public officials.

The report, “Big Money Talks,” details the staggering amounts of money these interest groups spent on candidates, ballot measures and lobbying efforts, since electronic filing went into effect in 2000.  Included in this list are six corporations, three Indian tribes, two labor unions and four business associations.

“This tsunami of special interest spending drowns out the voices of average voters, and intimidates political opponents and elected officials alike,” said FPPC Chairman Ross Johnson.

These five interests are responsible for over half of the $1 billion spent by the top 15:

  • California Teachers Association—$211,849,298
  • California State Council of Service Employees—$107,467,272
  • Pharmaceutical Research and Manufacturers of America—$104,912,997
  • Morongo Band of Mission Indians—$83,600,438
  • Pechanga Band of Luiseño Indians—$69,298,909

“The message from special interests is unmistakable—that they’re willing to spend millions of dollars to protect their narrow interests,” Johnson continued.  “The spending also serves as a warning to officeholders:  ‘Don’t forget, we can use our money to help or hurt you.  Think about it.’”

The complete report is available on the Commission’s website and the list follows.

The Top 15 That Spent $1 Billion to Influence California Voters and Public Officials

1)    California Teachers Association                                                         $   211,849,298

2)    California State Council of Service Employees                                 $   107,467,272

3)    Pharmaceutical Research and Manufacturers of America              $   104,912,997

4)    Morongo Band of Mission Indians                                                      $     83,600,438

5)    Pechanga Band of Luiseño Indians                                                    $     69,298,909

6)    Pacific Gas & Electric Company                                                         $     69,240,759

7)    Chevron Corporation                                                                            $     66,257,132

8)    AT&T Inc.                                                                                               $     59,619,677

9)    Philip Morris USA Inc.                                                                          $     50,756,360

10)  Agua Caliente Band of Cahuilla Indians                                             $     49,078,448

11)  Southern California Edison                                                                 $     43,412,031

12)  California Hospital Association                                                           $     43,281,456

13)  California Chamber of Commerce                                                      $     39,065,861

14)  Western States Petroleum Association                                              $     35,214,325

15)  Aera Energy LLC                                                                                   $     34,671,163

Total of Top 15 $1,067,726,126

The Next Ten

16)  California Association of Realtors $     33,329,943

17)  California Correctional Peace Officers Association                         $     32,452,083

18)  California School Employees Association                                         $     31,861,749

19)  San Manuel Band of Mission Indians                                                 $     29,747,811

20)  Reynolds American Inc.                                                                       $     29,213,942

21)  Pala Band of Mission Indians                                                              $     24,021,356

22)  United Auburn Indian Community                                                      $     24,019,877

23)  California Medical Association                                                            $     23,064,218

24)  Anthem Blue Cross                                                                               $     21,993,466

25)  Consumer Attorneys of California                                                      $     21,294,921

Total of Next 10                                                                   $270,999,366

GRAND TOTAL OF ALL 25                                   $1,338,725,492

Posted in Announcement, Association Updates, Economic Outlook, Legislative Updates, Q & A. Tagged with , , , , .

By Gene Wunderlich
March 11, 2010

No comments

Upskirt Perv’s OK w/Assemblymember Ammiano.

In a week when the bodies of two teenage girls victimized by sexual predators were discovered almost in our backyard, the California Legislature killed a Kevin Jeffries bill that would have required people to register as a sex offender if they are convicted of using a hidden camera or cell phone to take pictures for sexual pleasure.

perv kidThat same week, 2 local residents were arrested for taking photographs under womens dresses and up a girls skirt at local businesses. Yet even if convicted they would not appear on the roles as sexual predators. Their computers could be full of these home made photos and videos and they could distribute them to millions of viewers on the internet within seconds of taking them, but California doesn’t want them to register as sex offenders.

AB1688 was a bill Jeffries carried at the behest of Riverside County DA Rod Pacheco and was an attempt to bring the l;aw current with today’s wireless technology. “Every parent in California would want to know if an adult their child comes in contact with has been convicted of this type of lewd behavior” says Jeffries. “It’s a great big clue,” according to DA Pacheco. “I’d rather be safe than sorry. If they’re forced to register then the local police know they’re there.”

But not everybody agrees. Assembly Public Committee Chair Tom Ammiano (Democrat) believes skirt peekers and bathroom stall sneekers should continue to get a free pass. Why? Because there are too many people required to register as sex offenders as it is. Yeah, that’s what he said. He doesn’t want people stigmatized unfairly.

In other words, for Mr Ammiano, it’s OK for somebody to take a photo up his wifes skirt or down his daughters blouse (assuming he has either)and collect those pictures and/or send them all over on the internet but he doesn’t want to stigmatize that person for their little peccadillo. What a jackass. This was the same week the Democrats passed a resolution outlawing swearing in the legislature for the week. Otherwise I would have said he was a Goddamn jackass. Him and his Democrat majority on the committee – God forbid we stigmatize perv’s. Better we just let them roll on until they rape or kidnap or kill someone – like Chelsea King or Amber DuBois. Maybe then they’ll catch Mr Ammiano’s attention. Jeffries vows to fight on.

upskirt


Posted in Gino's Rants, Legislative Updates. Tagged with , .

By Gene Wunderlich
March 10, 2010

No comments

HARP Program Extended to 6/30/2011

Home Affordable Refinance Program (HARP) extended to June 30, 2011

On March 1, 2010, the Federal Housing Finance Agency (FHFA) announced the extension of the Home Affordable Refinance Program (HARP). FHFA is the regulator and conservator of Fannie Mae and Freddie Mac. HARP is a component of the Obama Administration’s Making Home Affordable Program. Borrowers with loans guaranteed or owned by Fannie or Freddie with loan-to-value ratios between 80 percent and 125 percent may be eligible to refinance their mortgages under HARP. In 2009, there were nearly 200,000 refinancings under HARP, far short of the original goal of helping up to 5 million homeowners.

FHFA Announcement

Making Home Affordable Program Website

Posted in Announcement, Association Updates, Economic Outlook, Good News You Can Use. Tagged with , , , .

By Gene Wunderlich
March 8, 2010

No comments

New Tools For Your Spring Selling Season

Right Tools, Right Now – March Update
Get ready for the Spring selling season with valuable FREE and AT-COST offers from NAR’s Right Tools, Right Now initiative. This month, take of social networking resources including ‘Twitter for Real Estate’ and ‘The Social Networking Plan for Real Estate’, e-products now available at a discounted price. The ‘Field Guide to Social Networking for REALTORS®’ provides an introduction to the benefits of social media for real estate professionals and is available FREE thanks to the initiative. To view all our offers, visit www.REALTOR.org/RightTools. Read more…
http://www.realtor.org/prodser.nsf/righttools/toolshome?opendocument&wt.mc_id=RT1102&WT.mc_id=LS030310&CAT=About

Posted in Announcement, Association Updates, Good News You Can Use. Tagged with , , , .

By Gene Wunderlich
March 8, 2010

No comments

$700 Million for CalHFA Fund

CALHFA ANNOUNCES $700 MILLION TO ASSIST HOMEOWNERS
The U.S. Treasury has allocated $699.6 million to CalHFA to help low and moderate income borrowers who have been hit hardest by unemployment and falling home values. These funds will be used for innovative programs to help stabilize the housing market.

The HFA Hardest-Hit Fund was designed to allow the maximum possible flexibility to Housing Finance Agencies in designing locally-focused programs that address the needs of a specific state or region within a state. All programs must have foreclosure prevention and housing market stability as their primary objectives.

CalHFA’s proposal, along with proposals from the four other states selected (Arizona, Nevada, Florida and Michigan) is due by April 16, 2010. The Treasury will then review each proposal for compliance with program objectives and other requirements. The Treasury expects that CalHFA may be in the position to begin drawing down funds within four to six weeks following submission of proposals, or mid-year.

Posted in Announcement, Good News You Can Use, Legislative Updates. Tagged with , , .

By Gene Wunderlich
March 8, 2010

1 comment

Transfer Taxes Still a Problem

You’ll remember a couple years back when CAR sponsored a bill to eliminate transfer taxes in the state. We were oppposed by an unlikely coalitionincluding the Building Industry and environmental groups (who frequently use the process to blackmail developers out of cash). Our legislation failed but we did get a bill passe mandating that the existence of this tax at least has to be disclosed.

With the exception of Lennar Homes, I’m not aware of any other local applcations of this type of tax – but as this recent update from NAR points out – it’s becoming more of an issue with local governments strapped for cash and profiteers looking to make an illicit buck of the unwary homeowner.

Standing Up to Private Transfer Fees, Posted by Brooke

Posted: 03 Mar 2010 07:07 AM PST

I’m proud that two years ago my state association, the Texas Association of Realtors®, stood up to an issue that would have increased the cost of housing and complicated closings.  We helped pass legislation that banned the use of most private transfer fees in residential real estate in Texas.

Private transfer fees are a bit complicated, but they’re important to know about.  They are covenants that claim to run with the title to a property.  Every time the property changes hands, a fee is paid to the original property owner or developer who created the covenant.  The fees have been as much as one percent of the purchase price of the property.  In some cases the fees are being paid for up to 99 years!

We’ve recently been made aware that companies dealing with private transfer fees are marketing their products to developers across the country.  They are bundling these fees so they can be securitized and resold on the open market.  If they succeed in developing a “stream” of these fees to make a credible securitization market, then the use of private transfer fees will increase exponentially because the profit incentive will increase.

Bottom line is this…affordable housing is sacrificed to give financial benefit to someone completely disassociated with the real estate transaction.

In 2008, the NAR Board of Directors voted on a policy against the use of private transfer fees.  But ultimately, we know this is a state matter.  That’s why NAR is offering services to state associations to investigate this issue in their states and evaluate whether they would like to pursue legislation against the fees.

NAR has engaged the services of Robinson & Cole, the firm that serves as our consultant in NAR’s Land Use Initiative.  Robinson & Cole will help state associations write legislation concerning the use of private transfer fees, and NAR will pick up the bill.

Posted in Announcement, Association Updates, Legislative Updates. Tagged with , , , , , , .

By Gene Wunderlich
March 5, 2010

No comments

Meg Whitman – The Real Deal?

This past Monday I had the opportunity to hear Meg Whitman at a small meet & greet. Whitman is one of two Republicans running to be Governor of this great state of California, though why any sane person would do that I’m still not certain. I made the trek with a couple other political hacks and cynics who had similar questions about her sanity, her commitment and her qualifications.

We all came away converts.

meg whitmanFirst, a few basics. Whitman is richer than God. As the former CEO of eBay, she is a billionaire and she has been spending a bunch of her own money on campaign ads since last year to get her message out. This is in contrast to the other Republican candidate who has done nothing but whine about what Whitman is doing, and Jerry Brown, who finally decided to throw his hat in the ring yesterday and about whom we know too much. I got no problem with her spending her own money because it’s a money game folks, and Jerry Brown’s already got the union money tied up.

Whitman looks better in person than she does on TV (you can’t trust my crappy little cell phone camera). She is poised, well-spoken and confident – she looks and sounds like what you want a political candidate to look and sound like. I know all candidates aspire to that but most come up way short. She sounds sincere because I think she really is sincere – like her TV moto says – ’say what you mean and mean what you say’. She also has a laser focus and is not easily jolted off-message –  which is a talent she will need in order to succeed.

She has three main platform issues and brings every other discussion around to how it relates to her big three:

  • Jobs
  • Spending
  • Education

Whitman points out that jobs are her top priority. Without jobs there is no revenue, there is no recovery, there is no hope. One job killer? Eliminate AB 32 – which drew rousing applause from the house. Next – cut taxes across the board – but not first. First you need to create jobs to get the revenue stream, then you cut taxes to super-charge the momentum of creating more jobs, streamline regulations and make California competitive in the job market again..

Second – cut spending. Judicious and consistent use of the blue-line veto is one avenue she plans to utilize, along with actually reducing the state workforce rather than just reducing the increase. This years budget was ’slashed’ all the way down to $85 Billion. Whitman suggested this is not as draconian as liberals would have you believe since the last time we had an $85 Billion budget was just 6 years ago. 2004 was a pretty good year in California – it’s just that when the money was rolling in SOME people who should have known better figured it would go on forever. She is again promising, as did Arnie, to review the relevancy pf departments, commissions and regulations.

Third – fix education. There’s no reason, given the amount of money we spend per pupil, which is among the highest in the country, that our students should rank where they do nationally, which is among the lowest. Maybe the 40% going to administration instead of students has something to do with it. Maybe tenuring dead wood forever has something to do with it. Maybe rewarding teachers that do a good job might help.

On why she wants to put herself in the position to try to govern a state many are convinced is ungovernable, she is very upbeat. She knows it is a challenge and one that her background uniquely qualifies her to tackle. She cites her real world corporate experience at Disney, Hasbro, Procter & Gamble and, of course, the fact that she took eBay from 30 employees to 15,000. But in addition to the eBay experience, she also credits it with giving her a unique insight into the true job creation engine – small businesses showing how eBay helped create thousands of small businesses and created a cottage industry which she believes could be extended to the entire private sector.

She appears to be going into it with her eyes open – acknowledging the massive economic hurdles, legislative stalemate, union and special interest control, and the myriad of other problems we know exist in Sacramento. But she has a plan to deal with all of them – one at a time. She believes Arnold had the right idea when he started but he decided to tackle all the major issues right up front. He never fully recovered from the shellacking he took from the unions, teachers, nurses etc in the early days.

One thing you may not know – I’ve not seen it written about out here. Whitman is also an avowed conservationist and environmentalist. She recently purchased hundreds of acres around the Alta Mines outside Telluride Colorado, my home town. Previous owners were trying to keep the acreage out of the hands of developers and were encouraged by Whitmans commitment to leaving the land untouched. She also contributed nearly $1.5 million dollars to help the Town of Telluride purchase their Valley Floor a couple years ago – again making sure this land remained a natural asset rather than being heavily developed. If you’ve read my summer vacation posts, you’ve seen the pictures of the Elk herd that roams this land today instead of the condos and estate homes planned by the former owners. Whitman is taking some flack from the extreme enviro’s questioning how she can claim to be an environmentalist while advocating the overturn of AB32. But I think most reasonable people understand that there are true environmentalists on both sides of the political spectrum. They also understand that AB32 really has little to do with saving either the environment or jobs in this state. Whitman understands that.

I didn’t take any notes at the meet & greet – I just wanted to get the flavor of the event, a feel for the candidate. I’ve gotta tell you I was impressed as were my political hack friends. If she only accomplishes 1/4 of what she plans to it will mark a tremendous improvement for California. And look at it this way – our alternative is Jerry Brown. Nuff said.

meg whitman



Posted in Gino's Rants, Good News You Can Use, Legislative Updates, Q & A. Tagged with , , , .

By Gene Wunderlich
March 3, 2010

No comments

Don’t Mess With RESPA. New HUD Commission Guidelines

HUD LETTER ALLOWS PERCENTAGE PLUS FLAT FEE COMMISSION

A real estate broker’s commission may be determined using a percentage of the sales price, a flat fee, or a combination of both, according to a recent letter from HUD’s General Counsel Helen Kanovsky.  The January 22 letter clarifies the distinction between using a formula to calculate a legitimate commission, as opposed to an unearned fee that violates RESPA.  Under RESPA, a real estate broker cannot charge a fee if no, nominal, or duplicative work is done.

According to the letter from Ms. Kanovsky, the new HUD-1 simplifies the reporting of the broker’s commission because it is now reported in the 700-series as dollar amounts, rather than percentages.  If, however, the amount in the 700-series is more than the commission in the listing agreement or buyer’s broker agreement, then HUD may review whether additional services were provided for the excess amount charged.  As an example, a listing broker charging the buyer an administrative fee absent any contractual relationship between the listing broker and buyer may be evidence of a RESPA violation.

This HUD letter provides REALTORS® with some guidance after a federal district court in Alabama invalidated a $149 administrative brokerage commission last year in the case of Busby v. JRHBW Realty, Inc. (2009) 642 F.Supp.2d 1283.  For more information on that case, see C.A.R.’s Realegal dated April 27, 2009.

Posted in Announcement, Association Updates, Legislative Updates, Q & A. Tagged with , , .

By Gene Wunderlich
February 26, 2010

No comments

IRS Issues New Guidelines For 1st Time Homebuyer Tax Credit

IRS issues new guidelines on obtaining home buyer tax credits
The Internal Revenue Service (IRS) recently issued new guidelines and clarified documentation that taxpayers must submit to successfully obtain the federal tax credit for home buyers.
KEEP THIS IN MIND
• The federal tax credit for home buyers was extended and expanded late last year. Qualified first-time buyers may be eligible to receive a tax credit of up to $8,000 on homes purchased before April 30, 2010. Repeat buyers may be eligible for a tax credit of up to $6,500. Visit http://www.irs.gov/newsroom/article/0,,id=187935,00.html for more information about the federal tax credit for home buyers, including eligibility requirements.
• To receive the tax credit, home buyers must comply with the IRS’s documentation requirements, including a fully executed IRS Form 5405. On the form, which is available on the IRS’s Web site, taxpayers provide information supporting their claim of eligibility, such as income and home purchase date.
• The IRS also requires home buyers to submit a copy of the closing or settlement statement that proves the transaction took place. The IRS previously said that the statement should show “all parties’ names and signatures, property address, sales price, and date of purchase.” However, since closing or settlement statements vary by state, and in some cases the form does not include both the seller’s and buyer’s signatures, the IRS has revised this requirement. As long as the closing or settlement statement conforms to prevailing local practices, the IRS will accept it.
• One stipulation for repeat buyers is they must provide documentation they lived in their former property for a consecutive five years out of the previous eight years. Accepted documentation may include property tax records, hazard insurance records, or copies of annual mortgage interest statements filed with their federal taxes.
To read the full story, please click here:
http://www.latimes.com/classified/realestate/news/la-fi-harney21-2010feb21,0,1254506.story

Posted in Association Updates, Economic Outlook, Good News You Can Use, Q & A. Tagged with , .

By Gene Wunderlich
February 25, 2010

No comments

CA CEQA law under attack. Job creation urged.

Long a thorn in the side of anybody wanting to build anything in this state, CEQA is under attack this year by members of both parties. The ally of every no-growther in the state, CEQA has  had a hand in delaying or eliminating numerous projects including much needed road, hospital, water infrastructure and home development. Many viable projects have been derailed simply by having their costs explode due to ongoing and capricious environmental requirements. Often just the threat of CEQA is enough to drive project developers to throw their hands in the air.

Want to build windmills to generate electrical power? CEQA compliance will add 6 years to the timetable. Want to put solar collectors out in the middle of the Mojave Desert? Sorry, CEQA says it might disrupt animal migration patterns. Want to add another lane to the I-215? Sorry, you need to re-do all the CEQA stuff you already complied with once even though nothing has changed. Want to build a hospital in Temecula? CEQA will keep you hopping from makework to paperwork in no time at all.

Finally some in our state capitol are growing cajones and saying ‘enough is enough’. We need infrastructure, we need dams and roads and disaster relief and we need JOBS. You’ll note with no great surprise that the Sierra Club bemoans this ‘attack on CEQA’ and ‘developers using the recession as an excuse for rollbacks.’ When the Sierra Club gets into the business of helping create jobs in the state, let me know and I’ll start caring about what they say.

SRCAR has sent a letter to Senator Dennis Hollingsworth in SUPPORT of his bill SB X8-56, outlined below.

capitol weekly

State’s main environmental law targeted on broad front in Capitol

By John Howard | 02/23/10 12:00 AM PST
Years of exemptions from California’s principal environmental protection law are being crafted in the Capitol by the Schwarzenegger administration and lawmakers in both parties, who believe speedy approval of dozens of projects, public and private, will create jobs and spur economic growth. The projects are potentially worth billions of dollars and thousands of jobs — although just how much money and how many jobs have not yet been identified. “If there is a list, if it exists, nobody has seen it,” one Capitol staffer said. “California is going through the worst economic downturn since the Great Depression,” said Sen. Lou Correa, D-Santa, author of one of the exemption bills. “This continues to provide environmental protection and balances that with the opportunity to create jobs.”

Environmentalists say the proposed end-run around the California Environmental Quality Act constitutes one of the most significant changes to CEQA since the law was written 40 years ago and inspired environmental legislation across the country. CEQA is a frequent target of lawsuits and legislation.

Four bills – two in each house – contain Schwarzenegger’s proposal to exempt 25 projects, selected geographically by county, from court review and CEQA each year through 2014. Two of the bills are regular-session measures, the other two were introduced in the 8th Special Session. All are mirror images of each other. Privately, those familiar with the legislation say there is a scramble among lobbyists to get clients’ projects on the exemption list.

The proposals are supported by manufacturers, builders, engineers, developers, business interests and others. They say the proposals will expedite construction of numerous, still-unknown projects and jumpstart the weak economy. They restrict the power of the courts to review the projects and give final authority over the projects to the administration.

The projects could range from refineries to commercial development, housing tracts, highways and water works, among others.

A fifth bill, which would apply retroactively, would exempt critical infrastructure projects for flood control, highways, port security, disaster preparedness and air quality. The proposal is similar to a plan that was proposed last year and rejected. Funding for the projects was approved by voters in 2006 as Proposition 1B, the $19.9 billion transportation bond, and Proposition 1E, the $4.1 billion flood protection bond. Of the funding that was approved, about $16 billion worth of bond funding remains unissued.

The measures containing the administration’s proposals have Democratic and Republican authors. The fifth bill, the infrastructure plan, is authored by Senate GOP Leader Dennis Hollingsworth.

CEQA has long been a target of developers, builders, manufacturers, timber and mining interests and others, but the latest series of bills seeking changes is unusual for their number and scope, observers say. They cite the Legislature’s earlier approval of exemptions for air-emission credits for the South Coast Air Quality Management District and a proposed NFL stadium in Los Angeles County as the progenitors of the latest legislation. Those two proposals constituted the most significant environment-related legislation of 2009.

“We said at the time that they would encourage more of these proposals, and it’s done exactly that,” said Bill Magavern of Sierra Club California. “We’re seeing a stepped-up attack on CEQA this year, and I think we’re seeing development interests using the recession as an excuse for the CEQA rollbacks that they have been gunning for.”

The administration’s proposal, reported by Capitol Weekly in January, is being carried in the Assembly as AB1805 and AB37 8x by Assemblymen Charles Calderon, D-Montebello, and Brian Nestande, R-Riverside. In the Senate, Sens. Correa and Dave Cogdill, R-Fresno, are authoring virtually identical bills, SB 42 8x and SB 1010.

The infrastructure exemptions are contained in SB 56 by Hollingsworth, R-Murietta.

The administration’s proposal allows exemptions for at least 25 construction projects located across California. Ten would be chosen from Imperial, Los Angeles, Orange, Riverside, San Bernardino and San Diego counties; five from Alameda, Contra Costa, Marin, Napa, San Francisco, Santa Cruz, Solano and Sonoma counties; five from Fresno, Kern, Kings, Madera, Merced, Sacramento, San Joaquin, Stanislaus and Tulare; and five projects located in the rest of the state.

The proposal, which includes a provision for at least one public hearing and legislative input, gives final authority over the projects to the Business, Transportation and Housing Agency, or BTH, a cabinet-level superagency whose secretary, a gubernatorial appointee, reports directly to the governor.

The goal of the governor’s proposal is to expedite projects that would generate jobs and stimulate the sluggish economy.

The proposal sets up a timetable for projects to be approved, and allows for approval if the entity seeking the project expects the project ultimately to receive environmental approval. If the project fails the environmental certification, the BTH can choose alternates. The plan calls for BTH to give lawmakers and the public a list of the projects that win final approval.

Environmentalists said the governor’s plan would weaken environmental safeguards, and questioned whether the language barring court review would pass constitutional muster.

Last year, the governor signed AB 81 3X by Assemblyman Isadore Hall, D-Compton, that streamlined certain CEQA requirements to construct a new NFL stadium in the City of Industry. The stadium proposal, already exempted, would not be covered by the latest legislation.

The governor also signed SB 827 by Sen. Rod Wright, D-Los Angeles, with an estimated $4 billion economic impact affecting some 65,000 jobs in the L.A. basin. The bill allows air regulators to distribute valuable emissions credits in the way they did before the courts, responding to environmentalists, blocked them.

Posted in Announcement, Economic Outlook, Good News You Can Use, Legislative Updates. Tagged with , , , , , , .

By Gene Wunderlich
February 23, 2010

3 comments

Southwest California Legislative Council Announces Position on Bills

sclc

The Southwest California Legislative Council, with whom SRCAR is an advocacy partner, today adopted the following positions on current/pending legislation:

Support – ACA 30 (Jeffries) To abolish the office of Lieutenant Governor.
Self explanatory – this largely ceremonial position requires salary & staff expenses and the duties could be consolidated with the Secretary of State.

Support – AB 1671 (Jeffries) To prevent the Governor from appointing vacancies on the County Board of Supervisors.
A recent example in Riverside County left us without the ability to pass certain bills at the county level while Sacramento played politics with us. Our local positions should not be state appointed.

Support – AB 1672 (Jeffries) To make the California Air Resources Board an elected rather than appointed body.
The CARB is one of the most egregious examples of the lack of accountability on state boards & commissions with the Chair stating publicly that if she had to worry about being elected she would worry about all the jobs cost by their recommendation – but she’s not so she doesn’t.

Oppose – AB 1594 (Huber) To prohibit construction of the peripheral canal.
An attempt to circumvent the wording and intent of the state water coalition recommendation and the Nov, ballot initiative.

Oppose – AB 518 (Lowenthal) Provides incentives for cities and counties to reduce or eliminate free or subsidized parking.
Would prove particularly costly to outlying areas like Southwest County where 60% of our residents commute and are forced to park either at work or when they go shopping.  Unintended consequence is a reduction in people going to the malls reducing revenue to shopowners and downstream job market.

Oppose – SB 657 (Steinberg) Require retail sellers and manufacturers to implement policies to eradicate slavery and human trafficking from their supply chain.
Legislation already exists prohibiting slavery and human trafficking. To expect your local grocery store or hardware store to be able to track it’s products back to their origin and potentially take action against some foreign source is ludicrous. Besides, doesn’t Darrell Steinberg have anything better to worry about – like our state budget?

Oppose – SB 810 (Leno) Single payer health care system
We are in agreement that the state should be the appropriate body to determine this issue – rather than the federal government, but this bill is not the answer and would only increase the debt load of the state.

Founded in 2004, the Southwest California Legislative Council is a regional advocacy coalition of the Temecula Valley Chamber of Commerce, Murrieta Chamber of Commerce, Lake Elsinore Valley Chamber of Commerce and the Wildomar Chamber of Commerce. Its mission is to provide a basis for the four chambers of commerce to act on local, state and federal legislative issues to secure a favorable and profitable business climate for our region.

Posted in Announcement, Association Updates, Legislative Updates. Tagged with , , , , , , , , , .

By Gene Wunderlich
February 22, 2010

No comments

DRE, AG Warn Homeowners About Loan Mod Fraud

Time and again people don’t listen to that little inner voice that tells us – if it sounds too good to be true, then it probably is. We know that has always been the case and continues to be the case but sometimes… sometimes we think – well, reality may have suspended itself just this one time, just on this occasion, just for me.

NOT!

We continue to warn people about loan mod fraud – yet people continue to be victimized. I know people are desperate but sometimes you also have to be just a little bit naive and/or stupid to buy into some of these scams.

But the coalition formed by our Attorney Generals office, the Department of Real Estate and the State Bar of California keep trying to protect us from these scamsters and ourselves. I posted here some months back when they initially formed the coalition and were effective in passing legislation that required loan mod specialists to register with the Attorney Generals office and post a $100,000 bond (SB 94 Calderon). The same bill made it illegal for anybody to charge an up-front fee to modify, or attempt to modify, a loan. Yet in spite of shutting down hundreds of these scam artists and acting on 1,000’s of complaints, the problem continues.

So once again, AG Brown, the DRE and the State Bar have today submitted the following press release:

Brown Warns Homeowners to Avoid Forensic Loan Audits

Los Angeles-Attorney General Edmund G. Brown Jr. today joined the California Department of Real Estate (DRE) and the State Bar of California in warning Californians to avoid forensic loan audits, the loan-modification industry’s latest “phony foreclosure-relief service,” in which homeowners pay up-front fees for a forensic review of their lender’s practices, but are provided no actual foreclosure relief.

“Forensic loan audits are yet another phony foreclosure-relief service hawked by loan-modification consultants trying to cash in on the desperation of homeowners facing foreclosure,” Brown said. “The foreclosure-relief industry continues to be long on promises, but short on results.”

Individuals and businesses who offer forensic loan audits use inflated and misleading claims to convince homeowners to pay up-front fees for services that produce no actual foreclosure relief. Homeowners are encouraged to pay for an audit of their mortgage loan file to determine their lender’s compliance with state and federal mortgage-lending laws. This audit is pitched to homeowners as a tool they can use to gain leverage and speed up the loan-modification process.

In truth, there is no evidence or statistical data to support claims that forensic loan audits-even if performed by a licensed, legitimate and trained auditor, mortgage professional or lawyer-will help homeowners obtain loan modifications or provide any other foreclosure relief.

“The State Bar is committed to dealing with all aspects of loan foreclosure fraud involving attorneys,” said State Bar President Howard Miller. “We will continue to work with all the other government agencies to prevent fraud and to move for disciplinary sanctions against attorneys who violate their obligations to their clients.”

By law, all individuals and businesses offering mortgage-foreclosure consulting, loan-modification and foreclosure-assistance services must register with Brown’s office and post a $100,000 bond. It is also illegal for loan-modification consultants and businesses to charge up-front fees for their services.

Brown has sought court orders to shut down more than 30 fraudulent foreclosure-relief companies and has brought criminal charges and obtained lengthy prison sentences for dozens of deceptive loan-modification consultants.

In 2009, the DRE investigated more than 2,000 complaints involving loan-modification scams. Nearly 350 individuals and companies received a Desist and Refrain Order to stop illegal activity.

“The DRE has aggressively pursued loan-modification scammers who prey on vulnerable and financially stressed homeowners, and those peddling false hope by promising mortgage relief with a forensic audit will be scrutinized,” stated Real Estate Commissioner Jeff Davi. “With consumer education efforts and warnings, we hope to keep consumers from falling victim in the first place.”

As part of today’s consumer alert, Brown offered the following tips to homeowners:

- Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed.
- Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house.
- Don’t transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It could also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict you and take your home.
- Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves.
- Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off their delinquent mortgage. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

If you are a homeowner who has been scammed, you can contact Brown’s office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php. You can also learn more about avoiding scams and obtain a complaint form by visiting the DRE’s web site at: www.dre.ca.gov.

If you have a complaint against a lawyer, contact the State Bar Complaint Hotline at 1-800-843-9053. Complaint forms and an explanation of the attorney discipline system are available online at: www.calbar.ca.gov.

In 2009, California accounted for 22 percent of the nation’s foreclosure activity, with 632,573 homes in foreclosure statewide. This is an annual increase of more than 20 percent in foreclosure activity from 2008 and a 150 percent increase from 2007.

For more information on Brown’s action against loan-modification fraud visit: http://ag.ca.gov/loanmod.

Posted in Announcement, Association Updates, Legislative Updates, Real Estate Fraud. Tagged with , , , , , , , .

By Gene Wunderlich
February 22, 2010

No comments

Realtor Action Fund – Your Best Investment in Real Estate

racAs a Realtor® you are part of one of the largest special interest groups in this country – the Realtor® Party, and you have a noble cause – preservation of the American Dream of home ownership. You may not like the idea of being a ‘special interest’ and you may disavow any inclination to participate in the political process that supports it, but that doesn’t change the facts.

Pericles summarized the concept in 500 BC when he said “Just because you don’t take an interest in politics doesn’t mean politics won’t take an interest in you.” I’ve updated that somewhat with the Wunderlich codicil “If you’re not at the table, you’ll probably be on the menu.”

If you think the business of real estate is just about buying and selling houses, you only know half the story. The National Association of Realtors® is the largest grassroots political action group in this country representing more than 1.1 million Realtors® in our nation’s Capitol. Last year we invested more money in candidate elections and special campaigns than almost any other group. That’s the other business of real estate – the part that allows you to stay in your business.

A few members have voiced concerns over the recent decision by the California Association of Realtors® to increase our dues by $49 to cover this vital piece of our business. But in reading through those comments (comment summary on $49 investment), I realized some of you are simply not aware of what these critical funds are used for and the direct benefit you derive. For less than the price of 1 latte a month, you are insuring your political survival and generating a real and measurable impact to your bottom line.

So let’s break down what YOU get for that $49 investment.

  • Just last week we defeated a proposal from CA Senate President Darrell Steinberg that sought to impose a 3% accelerated withholding tax on independent  contractors – that’s you. If you sold a $100,000 condo, the withholding from your commission check would be $90. On a median price home in Temecula last year that would have taken an additional $260.89 out of your check – every check all year long. If it wasn’t for our successful lobbying efforts you’d be  paying that already because Darrell tried the same thing 3 times last year. Is that worth $49 to you?
  • 1stHave you sold a home to a first-time homebuyer in the past year? Over 1.2 million first-time prospects have become owners since the inception of the tax credit last year – 450,000 of those would not have jumped into the market without that incentive. Who do you think lobbied to get that measure passed last February and then worked extra hard to get it extended and expanded in November against long odds? Selling side commission on a median price home in Murrieta last year was about $8,133. Is that worth $49 to you?
  • Last year Canyon Lake proposed an ordinance requiring every Realtor® to pay a $90 business license fee every year. If you worked in, advertised in, sold a home in, or even mentioned Canyon Lake in your website – you would get a bill for $90. We worked hard to modify that ordinance – not just for Canyon Lake but so that other Southwest California cities didn’t get the idea they could just reach into your pocket without a fight. Is that worth $49 to you?
  • Last election cycle we supported candidates in 9 local city council races. 8 of our candidates won including 3 Realtors®. Do you think it might be helpful to have people serving on our local councils and water boards who understand property rights issues, eminent domain, sign ordinances, zoning and so forth? How about in Sacramento? Or Washington DC? If we had more legislators in place who understood real estate or banking or appraisal issues do you think we’d be having some of the problems we’re having today? Is that worth $49 to you?
  • Would the loss of the mortgage interest tax deduction have any impact on home ownership? How about capital gains tax benefits for home owners? The  mortgage interest tax deduction and capital gains benefits are on the table every couple years in Washington DC as a source of potentially significant tax revenue. They will be again this year. Without your NAR lobby, these significant advantages to homeownership would have disappeared along with a chunk of your business during the past decade. It that worth $49 to you?
  • Would your business be impacted if a buyer could walk into any bank and buy a home from the same salaried employee who gave them a loan? NAR fought an 8 year battle to eliminate a loophole banks were trying to exploit to do just that. We won that fight in 2009. Is that worth $49 to you?

Those are just a few of the things your $49 does. Here’s a few things it doesn’t do:

  • Realtor Action Funds do not support a political party platform or agenda – they support the Realtor® Party. We support candidates who understand our issues at the local, state and national level regardless of party affiliation. Historically our expenditures are split almost down the middle at the federal level.
  • Realtor Action Funds do not support issues or legislation that is not real estate related. At the state level our analysts comb through every one of the 3,300 bills submitted in an average session. About 1,500 of these may be flagged as having some potential impact on either Realtors® or property rights. Our state directors discuss each of those bills to determine whether the Association will support it, oppose it, maintain a neutral position or if it really isn’t real estate related at all. We also sponsor our own bills to address specific real estate issues of concern to our members. You can read about the eight bills CAR  authored for 2010 here.
  • Realtor Action Funds do not support travel by Directors, they don’t pay for lobbyists salaries and they don’t pay for ‘pet projects’. If it doesn’t directly support a candidate or real estate related issue or campaign, it doesn’t come out of these funds. They are too precious to squander and the real need is growing exponentially.

rpacI hope this gives you a better feel for why this latest move was made by our state association. It was not a capricious decision and was discussed in detail for more than a year. In order to continue to be effective at the level our members have come to demand, we
must have the support of all members. 10% or 20% can’t continue to pay for benefits demanded and enjoyed by 100% of the membership. That’s neither fair nor equitable.

We welcome your input and questions and I encourage you to visit http://gadblog.srcar.org/ to take part in the discussion.

gadpol


Posted in Announcement, Association Updates, Gino's Rants, Good News You Can Use, Legislative Updates, Q & A. Tagged with , , , , , , , , , , , .

By Gene Wunderlich
February 19, 2010

2 comments

Our US Attorney’s Office Continues to Fight Fraud

FIVE WHO TARGETED HOMEOWNERS IN DEFAULT SENTENCED TO  FEDERAL PRISON IN $13 MILLION MORTGAGE FRAUD CASE

O.C. Man Gets 15 Years for Fraud, Refusal to Account for Off-Shore Money

LOS ANGELES – A Downey woman who orchestrated a real estate fraud scheme that caused nearly $13 million in losses after falsely promising to help homeowners in default on their mortgages has been sentenced to 10 years in federal prison. A second person involved in the scheme was sentenced yesterday to 15 years in prison after a federal judge determined that he had refused to account for proceeds of the scheme in an off-shore bank account that he had agreed in his plea agreement to repatriate.

Martha Rodriguez, 38, who pleaded guilty to mail fraud and money laundering charges in relation to the scheme that ran from May 2003 until November 2005, was sentenced yesterday morning to 120 months in prison by United States District Judge George H. King. In issuing the decade-long sentence, Judge King noted that Rodriguez perpetrated the mortgage fraud scheme while she was free on bond after being charged in another real estate fraud scheme.

Edward Seung Ok, 44, of Huntington Beach, who pleaded guilty to mail fraud, was sentenced yesterday afternoon to 15 years in prison. Before issuing the sentence, Judge King ruled that Ok violated his plea agreement by failing to provide investigators with access to an account in the Bank of Nevis on the Caribbean island of St. Kitts into which Ok had transferred more than $1.6 million during the course of the fraudulent scheme. In his plea agreement, Ok had agreed to repatriate and transfer to the government all of the funds in that account. In addition to continuing to conceal the money, Ok transferred more than $1 million of the off-shore money into a secret account in the United States, where he could access the funds for his personal expenses, which included golf club memberships, illegal drugs and a $235,000 Lamborghini Gallardo, prosecutors told Judge King during yesterday’s hearing. Addressing the court during yesterday’s hearing, Ok admitted that he spent more than $1 million of the money he had hidden in the off-shore account during a two-year period when he was free on bond in this case.

The prison sentences stem from a fraud case in which Rodriguez, Ok and three others used computerized databases that list homes going into foreclosure to locate victims, who were promised refinancing services. The scheme was operated through Rodriguez’s real estate and escrow agencies, Silvernet Properties in Downey and Bellasi Escrow in Seal Beach. Instead of obtaining refinancing, Rodriguez and her co-schemers submitted loan applications in the names of “straw buyers” who were purportedly buying the properties. In some cases, the defendants paid the straw buyers for the use of their personal information. In other cases, the defendants used personal information of people without their knowledge. The loan applications for the straw buyers – which always contained false information – caused a series of lenders to fund more than 100 mortgages worth more than $40 million. The loan proceeds were used to pay off the loans in default, sometimes to make a few mortgage payments on the new loans, and to provide some instant cash to homeowners. However, the remaining proceeds, typically representing the bulk of the homeowner’s equity, were skimmed off by Rodriguez and her co-schemers.

Even though they were promised that they would be able to keep their homes, the victim homeowners usually lost title to their homes. The lenders suffered losses when the straw buyers then failed to make loan payments and the new loans went into default.  Lenders were often unable to foreclose because the straw buyers did not know the properties were in their names. The scheme targeted commercial lenders and more than 100 homeowners across the Southland.

Three other defendants in this case were sentenced late yesterday by Judge King. They are:

  • Cynthia Valenzuela, a 27-year-old Orange resident who pleaded guilty to mail fraud, was sentenced to one year and one day in prison;
  • Vladimir Stefanovic, 38, of Huntington Beach, was sentenced to 18 months in prison; and
  • Maria G. Juarez, 39, of Canoga Park, was sentenced to three years in prison, in part because, after she was arrested on the case, she continued to perpetrate loan fraud while she was free on bond.

This case is the result of an investigation by the Federal Bureau of Investigation and IRS – Criminal Investigation. The Los Angeles County Department of Consumer Affairs, Real Estate Fraud Section, provided substantial assistance during the investigation.

CONTACT:        Assistant United States Attorney Gregory A. Lesser

Posted in Announcement, Good News You Can Use, Real Estate Fraud. Tagged with , , , , .

By Gene Wunderlich
February 18, 2010

No comments

These Women Mean Business

vbj

In case you’ve been in a post-holiday siesta or simply water-logged, you’re already aware that four of our six cities in Southwest California have women Mayors this year, joining six other cities throughout the Inland Empire. Media outlets have had a field day dubbing our area ‘Estrogen Alley’ and talking about ‘Women Taking Charge’. But the fact is that in most cases our Mayors are not elected to that post, they’re simply chosen by their fellow council members, typically in a set rotation schedule. As Lake Elsinore Mayor Melissa Melendez characterized the situation, “… it’s not some staged take-over, it’s just a unique set of circumstances. It’s more indicative of the fact that women in general are getting more involved in the political process, being elected to city councils in
greater numbers and being elevated to this position with more frequency than we’ve seen in the past.”

Indeed while some, including Murrieta Mayor Kelly Bennett and Wildomar’s Bridgette Moore are serving their first term on the council, Temecula had Mayor Pat Birdsall as far back as 1992 (& 1997) and Mary Ann Edwards in 2009. Canyon Lake’s Nancy Horton follows Mary Craton into the seat and Corona Mayor Karen Spiegel served that city previously in 2006.

The Valley Business Journal recently spoke with some of these ladies about the job and what they plan to bring to the business community and economic development during their tenure. The overwhelming response was that Southwest California cities are ‘Open For Business’.

mooreMayor of one of Southwest California’s newest cities, Wildomar, Bridgette Moore said their new City Manager Frank Oviedo has been tasked with economic development and growth as a priority. According to Moore, Wildomar has more undeveloped land that many of their neighboring cities along with a real need for business growth in the area. “We recently surveyed our citizens and found that bringing restaurants to the city was first on a lot of lists. We are also encouraging other retail partners, technology firms and medical manufacturers to locate here not just for the tax revenue but to serve the needs of our residents.” …and a hotel.
Moore’s Arizona family had to stay in another city when they came over to attend her inaugural meeting. “Yes, a hotel would be very welcomed here.”

“We’ve also reduced some of our developer fees in line with WRCOG recommendation and we’re streamlining our application and permitting process so there’s no surprises and no delays. You’ll find a real ‘make it happen’ attitude in Wildomar. If it’s a good business, it’s good for Wildomar.”

melendezLake Elsinore Mayor Melissa Melendez emphasizes the unique attraction of the lake to their community. They currently have a very aggressive specific plan to develop the area around Diamond Stadium and another marina and resort plan for further up the lake. “Unfortunately those plans are on hold right now due to the economy but they’re still solidly in place.”

“We need jobs for our residents right now – that’s our priority. We love the CostCo’s and Target’s, our auto dealers have been terrific but we need an Abbott, somebody with hundreds of jobs to keep our people off the freeways to Orange County every day.” To accomplish that, the city has worked with a corporate recruiter to introduce Lake Elsinore to prospective businesses. The Mayor is also instituting monthly ‘Coffee with the Mayor’ meetings. One series will be in conjunction with the Chamber of Commerce focusing on existing businesses – what they need to succeed and grow and how the city can help. Another series will join city staff and planners with developers and prospective business targets to talk about planning issue, fee structures and what the city can do to make Lake Elsinore a more attractive destination.

“I know we compete, to a degree, with the established master plan communities like Temecula, Murrieta and Corona,” says Melendez, “but we can all work together. We share more than boundaries, we share goals and we share our successes throughout the region. Lake Elsinore is a very different city than it was just 10 or 15 years ago. I would encourage businesses to take a second look at us through new eyes.”

bennettIn nearly 20 years as a city, Kelly Bennett is the first women to be elected to the Murrieta city council, thus its first Mayor as well, although she hesitates to put much significance to that. “It simply allows me the opportunity to represent my city in what for me, is extraordinarily important – the attraction and support of viable businesses in the city.”

“I have the opportunity to work very closely with several great groups that help us get the word out. City Staff, including Economic Development Director, Bruce Coleman, the Chamber of Commerce, the EDC and WRCOG. We also attend conferences like the ICSC (International Council of Shopping Centers) and the World Trade Center, San Diego, a group that positions San Diego and regional businesses for international recognition and global market success.’ Bennett noted that Murrieta is focused on three objectives: manufacturing, including nourishing ‘green’ companies; expanding education opportunities, including establishing a local 4 year under-graduate curriculum; and health care. The new physician-owned-Loma Linda healthcare campus, under construction in North Murrieta, is an endangered species under the current federal healthcare proposal. Yet we desperately need medical services and the professional and ancillary jobs it will create. The City is also aggressive in creating outreach programs for businesses. Their Broker Work Group regularly attracts 100 or more local commercial and residential Brokers, developers and planners to its meetings. The City recently introduced the Business Roundtable, and Visionary Workshops to solicit comments on the new general plan review.

“One thing I’m particularly excited about is the potential under AB 811, the Energy Efficiency for Cities and Counties Act. We are developing a program to attract green tech  manufacturers providing energy efficient/cost effective products for our homeowners. You’ll be hearing a lot more about that this year.”

While the Mayors readily acknowledge they don’t have any ‘special powers’, they do get to conduct council meetings, sign mountains of paperwork, spend a lot more time on the job, and generally be the public face of city government at numerous events throughout the region and state. One Mayor I spoke to was picking up children from school while another was grabbing late evening dinner at a local (healthful) drive-thru. As with any Mayor, male or female, there’s a delicate balance.

Our Mayors are also united in hoping the state recovers soon, without ‘borrowing’ any more City cash. They are all facing constrained budgets while maintaining services. They are similarly committed to bringing jobs to the region, to retain and grow our existing business base and to keep more of our citizens off the freeway. And they all have a huge ‘Open House’ sign in front of their cities.

Southwest California appears to be off to a good beginning as we enter this second decade of a new century, and in capable hands.

Posted in Announcement, Economic Outlook, Good News You Can Use. Tagged with , , , , , , .

By Gene Wunderlich
February 17, 2010

No comments

Another Scam Artist Heads For Club Fed

LONG BEACH MAN PLEADS GUILTY IN $33 MILLION PONZI THAT LURED INVESTORS WITH PROMISES OF PROFITS IN REAL ESTATE

Ahhhh another great headline. This one about a 33 year old guy by the name of Jon James who scammed as many as 50 people out of their savings and IRA’s in his get-rich-quick scheme.

See if this sounds familiar – James would often meet his marks face-to-face or at presentations hosted at restaurants. He’d promise them returns way better than those available elsewhere by investing in his real estate investment operation. He actually invested in a few properties but made absolutely no money – he paid off a few early investors with income from later investors and then used over $11 million for personal expenses including his wedding and a recording studio between 2003 and 2006.

Investigated by the FBI, James scheme has been prosecuted by the US Attorneys office. He is scheduled to be sentenced in May when he faces a statutory maximum of 20 years at Club Fed.
Keep the perp walk going folks. There’s plenty more where he came from. After all, there’s a sucker born every minute and 2 grifters to separate them from their money.

Posted in Announcement, Good News You Can Use, Real Estate Fraud. Tagged with , , .

By Gene Wunderlich
February 17, 2010

No comments

New Homebuyer Tax Credit Bill Expands on CAR SB206

Homebuyer Tax Credit (SB 8x 21 Ashburn)
A $10,000 per homebuyer tax credit will go towards the purchase of new and existing homes. The new home buyer tax credit was the most successful jobs bill the legislature passed last year. SB 8X 21 will continue that success and double the number of jobs created and make possible homeownership for thousands of Californians.

Posted in Announcement, Economic Outlook, Legislative Updates. Tagged with , , , .

By Gene Wunderlich
February 17, 2010

No comments

3% Withholding Dead Again (For Now).

The 3% IC withholding proposal which we defeated 3 times last year was again on the table last week courtesy of Senate President Darrell Steinberg. Those of you at Indian Wells recall the discussion that the idea would be in play again this year as it would presumably bring in an estimated $2.5 billion dollars to off-set the $20+ billion projected deficit. Of course the money would come in this year and have to be refunded next year digging an even deeper hole for the 2011 budget – but thinking a year ahead has never been a strong point in Sacramento. Last week we were called on to lobby our Senators on this issue to keep it from coming to a floor vote or to defeat it if it did. It comes as no surprise that Senate Minority Leader Senator Dennis Hollingsworth was solidly in our camp having called Steinberg on it as soon as he resurrected the idea.

Yesterday the Senate Budget Committee, in its wisdom, decided not to bring up independent contractor withholding for a vote at its meeting. For the time being, we’ve won, but Steinberg is expected to push it again later in the year as the budget fight heats up.

For those members concerned about their $49 investment in political survival, you might ask them if they would rather have paid the extra 3% ($90 out of pocket on a $3,000 commission). This is what the $49 does – not travel for Directors, not salaries for lobbyists and not to pay for Chief Economist Lawrence Yun.

Posted in Announcement, Good News You Can Use, Legislative Updates. Tagged with , , , , .

By Gene Wunderlich
February 17, 2010

No comments

Comments on the New $49 Political Action Investment

CEO Connie Lynch recently sent out an e-blast  informing members of the recent decision by the California Association of Realtors® to spread the cost of political survival evenly across our membership rather than continuing to rely on 10% or 20% of members to bear the load. As expected, reaction was as mixed as it was during our BOD discussion at Indian Wells. But the over-arching result from the feedback we received was that some of our members remain sadly misinformed on political matters in spite of years of effort to educate them. I guess it’s the old ‘lead a horse to water’ dilemma where you can provide the information in a variety of formats and sources but you can’t force them to read it – until you catch their attention with money.

If you would like to read my earlier post on the subject, click here: Political Survival Investment No Longer Voluntary

If you are interested in CAR’s 2010 legislative activities, click here: CAR Sponsors 8 bill in session

So here are a few of the comments we received along with my responses to them. I suspect those folks won’t read this since they obviously didn’t read my earlier post on the topic – but we keep trying.

MS – Good Move. It’s for a damn good cause. Thanks!!
Thank you.
CR – I think it is totally reasonable to require $49 a year to support our political agenda.
Thank you.
PM – I doubt you want to hear what I have to say to your strong arm tactics.
Yes we do.
AF – Why can’t some of our meeting/convention people stay home for a change.
Well, we could do that but it really doesn’t have anything to do with this topic. Political survival will be necessary regardless of who travels where and this money is not spent for that.
BK – I will never give a penny to support CAR’s political activities. In addition I will recommend all Realtors opt over to an alternative account.
That’s why we created it as an opt-over. You don’t have to support Realtor® political activities even though you benefit from them.
KJ – It’s good to see socialism alive and well. I will be looking for a law group to make money fighting you.
Well, CAR already has law groups who have made money advising us this is OK but we anticipate there will be members who would rather spend thousands fighting this than invest $49 on their political survival.
JF – Apparently once a lobbyist is hired they can’t be fired so tax people more to keep them employed.
Our lobbyists can be hired or fired, although fortunately for our members our senior lobbyists have been around for years and are very effective on our behalf. But again, this money doesn’t go to pay our lobbyists so they’ll keep working for you regardless. Oh, and it’s not a tax – it’s a dues increase pure and simple. It’s the cost of doing business being shared equally by all who benefit rather than a few of us paying for most of you.
DA – Believe the board is treading in uncharted waters here and putting a lot more at risk than their pet political projects.
Well, these waters are hardly uncharted – numerous groups have been here, done that – it’s just new for us. As for our ‘pet political projects’, those are called Realtors® and our clients. If you look at the legislation we sponsor and support from the local to the federal level, every single piece is either for the benefit of Realtors® or to protect the property rights of your clients.
LM – I resent it!!!!!!!!
Sorry!!!!!!!!
LC – This is completely out of line. You have stepped beyond your authority!!!!!!!!
It’s actually right in line with what needs to be accomplished for the Realtor® party and, no, it is within our authority!!!!!!!!
RD – Then you will not get the other $349 from me in 2011!
Then you will not be a Realtor® in California.
DD – Your lobbying at the beginning of the decade plus dictating to Lawrence Yun to disclose only optimistic news contributed strongly to what we are going through now.
Again, these funds have nothing to do with Lawrence Yun (NAR Chief Economist), who is widely regarded as one of the leading economists in the country, not just by NAR but by most economists and scholars. Not sure what lobbying we did that resulted in the sub-prime melt-down. Had our lobbying been more effective against the Barney Frank’s and Maxine Water’s of the world, GSE loan limits would have been raised 8 years ago and the whole sub-prime debacle could have been avoided. We also had nothing to do with Fed monetary policy or with the banks greed – but I’m certainly open to hearing where we went wrong.

Please feel free to chime in. We welcome your ideas and thoughts whether you agree with the decision or not. But keep a couple things in mind. Money raised for political action IS NOT SPENT for other purposes. It does not pay for salaries or travel or lobbyists. PAC funds are either spent on issues campaigns such as the extension of the 1st Time Homebuyer Tax Credit, or to defeat onerous legislation like last years ACWA sponsored home energy audit bill. PAC funds are also spent supporting local, state and federal candidates that have demonstrated an understanding of Realtor® issues and private property rights. In the 2008 election cycle that included supporting 9 local city council and/or water board candidates, 8 of whom were successful.

Pericles understood the concept in 500 BC when he said “Just because you don’t take an interest in politics doesn’t mean politics won’t take an interest in you.” Like it or not, as a Realtor® you are part of one of the largest special interest groups in the country, and one with a noble cause – preservation of the American Dream of homeownership. If you think the only business of real estate is buying and selling houses, you’re working with only half the picture.

Posted in Announcement, Association Updates, Gino's Rants, Good News You Can Use, Legislative Updates. Tagged with , , , , , .

By Gene Wunderlich
February 17, 2010

7 comments

HouseLogic.com – a New Tool From NAR

A Season of Excitement for REALTORS®, Posted by Vince

Posted: 16 Feb 2010 12:58 PM PST

Without a doubt, the best new real estate website I’ve seen this year must be HouseLogic.com, brought to you by the National Association of REALTORS®.  We’re hosting our big consumer launch this week.

To get our launch going with a bang, we’re hosting a webinar to roll it out for the media.  Why all the hub hub?  Well, we’re excited.

HouseLogic is a free, comprehensive source of information to help homeowners make smart decisions and take responsible actions to protect, maintain and enhance the value of their homes.

The REALTOR® Content Resource is also a free, ready to use companion tool to HouseLogic.  It allows members to leverage HouseLogic content for their own marketing efforts.  That means you can use its content on your Web sites and newsletters.  It will help maintain and grow your client relationships.  Just go to HouseLogic.com/Members and login to the REALTOR® Content Resource to use it.

The whole site is rich in content on home improvement, maintenance, community engagement, taxes, incentives, finances, and insurance.  It’s a virtual one-stop resource for homeowners, helping them to “own smarter.”

It’s exciting to launch a new product that benefits members so much.  I know our friends on the East Coast and the South have been pounded with snow recently.  I know they can’t wait for spring.  And although I live in California, I can’t wait for it, either.  Spring always brings with it the excitement of new opportunities.  (And it means getting back to one of my favorite pastimes—baseball!)

With HouseLogic, we face the excitement of a new season in business.  Check the site out today and tell your clients about it.  It’s never too soon to get hooked.  –  Vince Malta, 2010 NAR Vice President and Liaison to Government

Posted in Announcement, Association Updates, Good News You Can Use. Tagged with , , .

By Gene Wunderlich
February 17, 2010

No comments