Corona Sign Ordinance.

Corona Sign Ordinance

I know it’s not you but… we have been notified by the TIGAR association in Corona that their city people are having sign ordinance problems – and it’s all the dastardly OUT OF AREA AGENTS that are gumming  up the works. So a copy of their sign ordinance is attached for your viewing pleasure.

If you list properties in Corona, or hold open houses there, you need to be aware of the rules. They’re actually not bad and have mostly to do with sign size and hours &  areas of placement. Otherwise they reserve the right to pick up your signage and, if it doesn’t stop there, they could rescind the whole ordinance and you’d get NO (0) signs.

So play along. I know, it’s not you.

Here’s the ordinance…

Lenders prepare for lower loan limits; stop accepting certain applications


In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts.  The deadline to submit loan applications was July 1.

According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.

Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum.  The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee.  Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

Again, barring congressional action (heh), conforming loan limits in Southwest California will likely revert to about $425,000. Not that big a deal right now but in a couple years we’ll be priced out of the market again and looking for alternatives. How do you think Subprime and Alt-A loans got so popular out here? Couldn’t get a conforming loan for a median price home.

 

New Home Assessment Data from Larry Ward

The word is out from our County Assessor, Clerk Recorder Larry Ward – another round of declines for property taxes in Riverside County. This makes three straight years of dropping assessments, a year longer than the last go-around in the 90’s.

But a couple of things have changed. This year many of the dropped assessments will go to commercial properties, which are continuing to lag residential properties. When I spoke with Larry earlier this year he was hopeful there would not be a need for further reductions this year after taking property values for the county back to roughly 2002 levels last year. Indeed as we have seen from my reports, residential values have remained virtually flatlined through the past 24 months after dropping over 50% in the previous 18 months. Assessed property values for the county for 2011 will be just over $200 billion, down over 16% from their peak of $243 billion in 2008.

This will be felt next year by the county as well as our cities, who are struggling to keep services afloat. Property taxes are the single largest source of operating funds for our cities and county and a substantial and real drop as we have experienced puts a real crimp in budgets, especially following the recent state decisions to further plunder city coffers of redevelopment funds, vehicle license fees and some of the basic operating funds cities have always counted on to get by. For the county it will mean a drop of nearly $5 million in property tax revenue from their earlier estimate of $266 million, a reduction of nearly 1% from their current budget of $582 million.

A second major change from Ward’s office is in the way the changes will be reported to property owners. Every year along about this time people got used to seeing a little postcard in their mailbox telling them what next years assessed value on their home would be. This year that’s not happening. In an effort to shave $200,000 from his budget, Ward will be posting the new assessments on-line on July 15. You can review your property tax assessment at www.riversideacr.com. If you don’t have internet access, well then you’re probably not reading this but in case you know somebody who may not browse, they can obtain a written assessment by calling 951-955-6200. They could also write to

Assessor, County Clerk, Recorder Larry Ward
P.O.B. 12004
Riverside CA  92502-2204

One final change tis year. If you think your assessed value should be higher or lower, it might cost you to find out. There has been debate among the County Supervisors to charge a fee to challenge your assessment. Should your challenge prevail and the property re-assessed, the fee would be refunded. But if the initial assessment stands then you will forfeit that fee. This has been proposed for two reasons – first as a cost measure to help defray some of the expense of researching individual properties after the process has already been done. Second, to minimize the rash of frivolous filings that occurs every year without foundation. Appears the only time people want their home to be worth less than it actually is is for tax purposes. And while this is understandable, your ‘gut feel’ of what your home is hopefully worth for tax purposes costs the county a lot of money to show you otherwise and that is being addressed by the new fee structure. If  you purchased your home after January 1, 1999, chances are Larry’s got you covered. He’s been one of the most aggressive and accurate Recorders in the state as far as making sure you aren’t over taxed.

 

What’s wrong with our Association?

Yesterday I stood in the back of the room during our Tuesday morning mls marketing meeting. As usual it was well attended and the highlight yesterday was the forum by candidates who are running for our board of directors. We are truly blessed to have an exemplary crop of folks who are willing to give of their time to help guide our association into the future. It wasn’t that many years ago we had one or two people, if we bullied them into running. Now we have a surfeit of well qualified people from members from our Young Professionals Network to people who have been in the industry for 30+ years.  We have three openings this year and 8 people interested in filling them. The future looks bright.

But a question was raised from an audience member during the Q & A referring to a ‘disconnect’ between the board and the members. Now keep in mind I sat on the board for 12 years, chaired it three times and have sat in the back of the room as an observer the past 2 years. Never have I seen a board more connected to the members. Everybody on our board is a practicing Realtor®. They come from big franchise offices and one man brokerages. There are salespersons and brokers. There are people that work hard to do 5 deals a year and others who do 80 or more. There are people with lending and appraisal experience, men and women, young and not-so-young – in short, a board that mirrors our membership pretty well.

This board is also very engaged. There have been times in the past where board members were just padding a resume but todays board members sit on a variety of committees, several are traveling directors to our state association, some travel to national association meetings, others are involved in our regional and state mls, some are members of our fraud task force and some have stepped in from our future leadership pool, the Young Professionals Network, to become leaders today.

How do you even intimate these people are ‘disconnected’ from our members? They represent the very best of our members. And the people running for the positions represent a continuation of that excellence – it is insulting to them and to the current board to say they’re disconnected.

But then I had to step back and consider the source. Not everyone out there is connected, that’s obvious. The person calling for more transparency in board meetings is obviously not aware that board meetings are open to everyone to attend and that minutes are subsequently posted to the association website. In spite of repeated efforts to inform them, they’re disconnected from the bigger picture.

Another member bemoaned the lack of ‘outreach’ to get members to attend the Tuesday morning marketing meetings. This has been an ongoing  issue over the years as people tend to come to the meetings when times are tough but don’t attend when times are good. But even during the best of times attendance seldom exceeds 1% or 2% of our members plus a healthy dose of affiliates. Again, some members are disconnected. They think the entire association revolves around these Tuesday morning meetings simply because that’s the one thing THEY attend. As one director pointed out, an email goes out every week reminding members of the meeting – they can either choose to attend or not. Apparently of our 3,500 members, about 3,440 regularly choose ‘not’. Yet amazingly enough many of those people are very successful without attending the meetings. Not a lack of outreach, simply a matter of choice and priority.

Some pointed to a lack of Broker involvement or commitment to force their agents to attend these meetings. We have a very robust Broker community that take a very active role in our association. We hold regular meetings with them to provide information and solicit their input and these meetings are very well attended. Right now we are involved in an ongoing efforts to get a majority of our Brokers signed onto the Broker Involvement Program through CAR & NAR. The BIP has been shown to increase the response rate for calls to action by anywhere from 2 – 3 times. That’s critical for our state and federal legislative programs – far more critical at this juncture than pressuring these Brokers to force their agents to attend a Tuesday morning  meeting. Not only that, most Brokers have their own weekly marketing meetings and if they’re going to have their agents kill a morning a week, they would just as soon it be at their own office meeting. Their choice, not the association’s position to badger them.

Unfortunately, as all people running for office, our candidates treated all these questions with a gravitas often undeserved. Sometimes the premise behind a question is invalid and it’s OK to point that out. And as much as we’ve been told over the years “there are no stupid questions”, we all know better, don’t we? In any group there’s bound to be at least one asking stupid questions repeatedly. Yet our candidates, to their credit, dealt with each question, often according it way more legitimacy than it deserved. A couple even twisted themselves into corners on what they would do if elected trying to address every realm of some obscure question. Welcome to the world of politics.

Ah well, bless the candidates for stepping up. Three of them will go on to represent our members very effectively and develop that special connection. The ones not elected will still continue to contribute as they have over the years which brought them to this position today. Yesterday they staked out their positions and answered questions for an hour – all for the benefit of 5, count ’em, 5, people who had not yet voted. They treated it like it really made a difference – because it does. If you don’t like it, get involved yourself. It’s easy. All you have to do is step out from the back of the room lobbing vollies and move to the front of the room fielding them.

Southwest Healthcare expands facilities/services in Murrieta & Wildomar

In a major step forward for our hospitals and our community, Universal Health Services recently announced the opening of  greatly expanded Southwest Healthcare facilities at both Rancho Springs Medical Center in Murrieta and Inland Valley Medical Center in Wildomar. Long-time readers may recall my rants from early last year wherein the hospitals appeared to be locked in a life-or-death (for residents of our community) struggle to open new emergency rooms and other much needed facilities that had been built, outfitted and staffed for over a year.

I’m not going to dredge up all that unpleasant history at this point other than to say significant changes were made at the hospitals while other changes were taking place at the state agency. Finally last month the state gave the go-ahead to open these  facilities at first on a partial basis, followed quickly by a full opening. (In the interest of full disclosure, I was one of 5 new members named to the Board of Governors for the two facilities, though I take no responsibility whatsoever for the progress made).

New CEO Ken Rivers initiated a sea change of atitude by instilling the concept that each patient is not just a patient but a family member. Treat each person you meet as if it’s your own parent, sister or child. Together with some tweaks to procedural issues raised by state and federal regulators, the level of care is reaching new heights.

new er

The move at Rancho Springs opened up a $50 million expansion which saw emergency beds go from 8 bays separated by curtains to 30 fully private bays with not only state-of-the-art medical and trauma gear but flat screen TV’s in every room and family comfort stations.

er

Equally important for the community is the entire 2nd floor dedicated to womens services, pre-natal care and a host of other services. These include spacious suites for Moms that have individual sleep-chairs for Dads, infant warmer beds and specially designed facilities to accomodate all services within the same room – including C sections and other procedures. No more wheeling the patient around here and there, most everything can be done within the comfort of her private suite.

wc

One opening that has been delayed is the dual bay neonatal intensive care unit with surgical centers. Originally staffed and trained, the two year wait to open meant that staff was moved to other areas and now must be re-trained so this much needed opening has been delayed for a few more months.

In addition to being a regional trauma care center, Inland Valley Medical Center also added to their own ER center as well as a much needed cardio-vascular care center. Intensive Care Units were also expanded at both facilities and new technological advances were incorporated into both the new facilities and the existing buildings, an ongoing process.

One more very cool thing – you can visit the nursery anytime to see the newborns. Check out theses little bundles and their happy Mom’s. Friends and relatives from across the country and around the world can log on and see how Mom & baby are doing. Grandma in Topeka can go in and see when Casey T. was born, how big she was and view several snapshots of the nipper.

More beds, more space, more technology and more caring – means a better healthcare experience for all our patients. After all, we know you really don’t want to be here and would just as soon be on your way as quickly and easily as possible.

It’s not just about healthcare, it’s about people care. I like being part of that.

Is your safety worth $1.99? New Realtor safety app looks promising.

This is very cool and I just had to share. Every so often we hear about a Realtor getting attacked or worse showing property or at an open house. NAR has designated Realtor Awareness & Safety seminars, individual offices have set up training and awareness methods including the famous ‘blue file’ call. (If you suspect a problem, call the office and ask for the ‘blue file’). But this lady built an app that at the touch of your screen allows you to call 911 and a friend and sets off an alarm. Another handy feature is the ‘Save Creep Data’ which walks you through a description process while the details are fresh in your mind.

This doesn’t take the place of taking safety precautions on your own behalf but it might just help save your butt if you do get into one of those situations.

Austin Realtor Releases REAL ALERT– the Personal Safety App for iPhone!

Austin, Tx. – (Wednesday, May 25, 2011) – On May 17, Austin Texas real estate agent Michelle Jones released REAL ALERT, a personal safety application designed for real estate agents. The App was developed by Michelle in order to increase personal safety awareness and provide quick access to emergency services.

The National Association of Realtors reports an increase in crimes against real estate agents in recent years. These crimes, ranging from minor thefts and assaults to rapes and even murder, occur throughout the country. Local media coverage of one of these violent attacks prompted Michelle to develop the App. “I’ve heard about attacks against agents for years, but seeing the local coverage of the violent attack of a San Antonio agent really scared me. I didn’t want to be the next victim.” says Michelle.

The Michigan Realtor Magazine advised that “The first step in preventing any crime is the knowledge that it can happen to you.” Real estate agents are particularly vulnerable to criminal attacks. Michelle’s husband, Thaddeus Jones states “After hearing about the San Antonio incident, I no longer felt comfortable with Michelle showing vacant listings and hosting open houses alone. I began going with her whenever possible and that began to interfere with my career and ultimately interfered with hers, too. Michelle and I decided to get serious about finding a better solution and there just wasn’t anything available on the market.” Being unable to find a comprehensive product that made her feel safe, Michelle decided to take matters into her own hands.

From one screen, REAL ALERT allows you to save precious moments with Quick tap “Call 911” and a Quick tap “ALARM” to ward off potential attackers. It allows you to speed dial your emergency contact with Quick tap “ALERT A FRIEND”. You can use it to LOCATE the nearest HOSPITALS using your current GPS location and record “CREEP DATA” – details about a suspicious person before they are forgotten.

After coming up with a solution that would make husband Thaddeus comfortable and her feel safe, Michelle approached a programmer she knew and hired her to program the app. “I’m not an overly technical person and definitely not a programmer” says Michelle. “I developed REAL ALERT to satisfy my own safety needs and quickly realized that it is a perfect solution for anyone, regardless of age or profession, that wants to protect themselves from potentially dangerous situations. I’m confident that it will help save lives.”

REAL ALERT is currently available on iTunes at a price of $1.99. It is listed in the ‘Lifestyle’ category and is compatible with iPhone, iPod touch, and iPad. REAL ALERT is available for download at: http://itunes.apple.com/us/app/real-alert/id436455476?mt=8

Media Contact Michelle Jones – Developer, (512) 470-3173, realalertapp@gmail.com

Southwest California Realtor Report for April 2011

Here’s the monthly report for Temecula, Murrieta, Lake Elsinore, Wildomar, Menifee and Canyon Lake. The report contains information on Single Family unit sales and median price for the region as well as a recent article on legislative issues dealing with homeownership.

If you find the type is a bit small for your viewing pleasure, simply click on the title to go to a full size version on Slideshare.com.

 

Another Reason California’s in the Crapper: Tom Ammiano.

Every once in awhile a legislator comes along who is just so horrendously, laughably bad that even by California’s low bar, they are exemplary. If you’re involved at all, you start to recognize the same names popping up time and again over the years to the point where any bill that has their name attached you just automatically assume is going to be bad – and it usually is. Too bad because sometimes they do have a cogent thought but not often enough to disregard the voluminous reeking detritus that daily disgorges from their oral orifice.

The newest Drum Major for California’s ‘A**holes on Parade’ has to be Assemblymember Tom Ammiano. Let me just say three words about Tom – San Francisco & Democrat. Adding the term ‘liberal’ to that would merely be gilding the lily – an exercise of which Tom might approve.

Ammiano has risen through San Francisco politics from educator to Supervisor to Assemblymember having never actually held a private sector job. He’s been on the public dole his entire career. This is also the same district that gave us Nancy Pelosi, so we would not be remiss to flavor their political judgment with a grain or three of salt.

ammiano

(unretouched photo – can’t say the same for that face)

Ammiano’s main claim to fame in the assembly is his perennial bill to legalize marijuana in the state. If the general public outside San Francisco has heard of him at all, it’s probably for that. But that pales in comparison to some of the bills he routinely introduces. Just in this legislative session alone he has produced more than his share of clunker bills that should be relegated to the outhouse instead of the state house – for example:

  • Earlier this year landlords, apartment owners and Realtors united against a bill that would have extended a landlords  ‘pay or quit’ timeframe from 3 to 14 days. That means if you own a home or an apartment complex and somebody decides not to pay you, rather than tack a notice on their door telling them they have 3 days to pay up or leave, they would now have 2 weeks to live off you rent free – more if they contest the eviction. Why did he propose this? His ‘constituents’ are going through some hard times and just need some more time and a little understanding.

HELLO! We’re all going through some hard times. What about the hard times your landlord is going through? But it’s OK for him to carry your deadbeat constituents for 2 weeks, is that right? How about the small landlord who has a house rented and suddenly he’s in default because your constituent decided not to pay? That’s OK too? Well, as long as your constituents aren’t inconvenienced I guess. After some considerable pressure, he amended the bill to remove the most onerous language and it now simply says the eviction process can be halted at any time as long as they pay the rent owed and landlord attorney fees capped at $350. Property managers across the state are still against the measure.

  • Earlier this year Ammiano declared that ‘sports are a vital economic activity’ and proposed that the legislature create a ‘statewide sports authority’.
Yeah, we can’t get rid of the bloated, overpaid state committees and commissions and task forces currently driving our state into bankruptcy – we need a statewide sports authority. Dumb ass.
  • Ammiano has proposed a bill which would limit the number of charter schools in a given area to 10.

Let’s see – charter schools traditionally have a higher success rate, produce more college bound students, enjoy smaller class sizes and attract more motivated teachers. Yeah, let’s limit them and force those kids into Californian’s superbly under-performing and over-funded public school system where 60% to 70% of students in your constituency fail to graduate. That makes sense? Well, it makes sense I guess if your former colleagues in the teachers union helped get you elected, otherwise -ehhh, not so much.

  • Here’s a fun one. Ammiano has proposed a bill to let California counties ‘opt out’ of the federal Secure Communities Program. The SCP mandates that when people are booked into local jails their immigration status is checked to see if they are deportable. “We’ve got to improve the RIGHTS of the people who are the foundation of our society”, according to Ammiano.

That’s wrong on so many levels. Of course he has the backing of both Los Angeles and San Francisco counties, who prefer not to check anyway and would rather just let these people remain here to commit more crimes I guess. And of course our new Attorney General, also a strong supporter of illegal immigration, supports the bill. A spokeshole recently declared that some 25% of people brought to jail end up not being convicted of a crime but may end up being deported anyway because of their immigration status. Hmmm, perhaps nobody explained to the nimrod the definition of the term ‘illegal immigrant’. By definition they have broken the law and should be deported.

Just one of the many reasons California continues it’s downward trajectory – people unclear on the concept who are elected to positions of authority. Ammiano is one of those who has never held a private sector job, has never had the pressure of meeting a payroll or producing a product or service in a competitive marketplace. Among his notable accomplishments prior to getting elected to the Assembly was the expansion of diversity and sensitivity training to include gay and lesbian curriculum to the kindergarten level for San Francisco schools. Oh, and as a Supervisor one of his great contributions was permitting the Sisters of Perpetual Indulgence, a charity group of drag queens, to close Castro Street for their Easter Parade. Attaboy Tom, way to focus on the important stuff.

Perhaps it’s no surprise that Ammiano’s first exposure outside his limited constituency, came in 2009 when he yelled ‘you lie’ at then Governor Arnold Schwartzenegger at a public event. He followed this up saying Arnie could “kiss my gay ass”. Apparently Arnie wasn’t interested and promptly vetoed a bill of Ammiano’s that had passed both houses of the legislature unanimously. His note to Ammiano explaining the veto is attached for your edification. If you read down the left side of the page you find an acrostic message from the then Gov. Statisticians put the odds of a message like that appearing randomly at over 2 billion to 1.

arnie fu

We should be saying that to more of Ammiano’s bills.

Of course that’s just my opinion. I could be wrong.

The right of property is the guardian of every other right.

Briefing Report: The Value of Property Rights

“The Right of property is the guardian of every other Right, and to deprive the people of this, is to deprive them of their Liberty.” – Arthur Lee

The Bedrock of a Free & Prosperous Society

The institution of the right to private property is perhaps the single most important condition for a society in which freedom and prosperity is to flourish. This notion of private property can seem fairly straightforward, especially for people living in a free-market society such as the United States. As noted in the book Unleashing Capitalism:

One reason for its familiarity to us is that private property is a bedrock principle of market capitalism. Think of a growing economy as an award-winning Broadway show. Private property is like the stage crew, constantly working behind the scenes to make sure the show runs smoothly. Private property, while perhaps underappreciated, is vital to ensuring that the economy will grow and prosperity will rise over time.

Yet in our modern political age, the importance of private property rights has faded to the background and has at times been termed little more than a “philosophical exercise that has no practical implications.” Nothing could be further from the truth. Across the nation, and particularly in California, property rights are becoming ever more vulnerable to infringement by government control in several forms: excessive taxation, regulation, and the process of takings (i.e. eminent domain). This undermines property rights and thereby suffocates economic growth prolonging our economic woes.

The protection of private property is vital component necessary for the economic growth and prosperity that will play a key role in lifting California out of her perpetual economic malaise.

The Cornerstone of American Exceptionalism

“Property,” John Adams wrote, “is surely a right of mankind as real as liberty.”

America’s founding was shaped by the radical declaration that our right to private property was and is inherent and inalienable. This novel and revolutionary idea, embodied in our Founding documents, challenged the historical practice of man’s rights being determined, limited, and granted by the state. This reorientation of the grantor of rights – from our Creator rather than from those in authority – dramatically redefined who was sovereign while simultaneously placing chains on the powers of government. The state would now be the protector – rather than the arbiter – of man’s inherent and inalienable rights to life, liberty, and the fruits of his labors1.

The right to hold private property is a well-documented principle of the Founding Fathers. William Blackstone, whose Commentaries on the Laws of England shaped much of the Declaration of Independence and the Constitution, wrote that “the law of the land… postpone[s] even public necessity to the sacred and inviolable rights of private property.”

Thomas Jefferson stated: “all power is inherent in the people… they are entitled to freedom of person, freedom of religion, freedom of property, and freedom of press.” Thomas Paine, in Rights of Man, cites property, along with liberty, security, and resistance of oppression, as chief among inherent individual rights.

Such reasoning led to drafting the Fifth Amendment in the Bill of Rights, where it states, “No person shall be…deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.” The need to protect private property rights, once so obvious to Jefferson and Adams, is now becoming lost in a tangle of intrusive government takings.

Governmental forces (excessive taxation, regulation, and strong eminent domain powers) make property rights less secure, increasing owner uncertainty. Greater uncertainty decreases the willingness to undertake capital investment and accumulation thereby reducing the productivity of labor and depressing wages. Greater uncertainty also curtails transactions transferring property to new owners who discover more valuable uses. Ultimately, economic growth stagnates. When government undermines private property rights, the economy suffers and this thwarts prosperity for the future2.

The Millstone of Eminent Domain

The clearest example of government infringement on private property rights is the use of eminent domain. Eminent domain is the power governments have to confiscate private property as long as it is for a legitimate “public use”. Whereas eminent domain was initially intended to ensure that public services (ie roads and highways) were available to the public, local and state governments often use eminent domain for any project that is considered economically beneficial. Public use, as a practical matter, has morphed into a more ambiguous “public benefit.”

The most jarring example of this morphed “public benefit” was the city of New London’s abuse of eminent domain and the Supreme Court’s ruling upholding the action in Kelo v. City of New London (2005). In Kelo, the Supreme Court held that held that the Constitution allows governments to seize private property and transfer it from one private land owner to another in the name of economic development. In other words, after the Kelo decision, governments can use their eminent domain power to take homes for potentially more profitable, higher-tax uses, powerful evidence, as Justice Clarence Thomas suggests, that something is seriously awry with the Supreme Court’s vision of the Constitution.

Justice Sandra Day O’Connor framed the problem very simply in her blistering dissenting opinion: “Under the banner of economic development, all private property is now vulnerable to being taken and transferred to another private owner, so long as it might be upgraded i.e., given to an owner who will use it in a way that the legislature deems more beneficial to the public in the process.” This decision went well beyond what the founders intended when they wrote the just compensation for public use clause.

While some political observers note that the power of eminent domain is rarely used in the Golden State, the Institute for Justice – a leading legal advocate against eminent domain abuse – has documented nearly 200 projects across the state that have threatened or used eminent domain for private gain. Within each of those projects, dozens, hundreds, if not thousands of homes, businesses, churches and farms have been impacted.

National polling confirms that the public is overwhelmingly opposed to the use of eminent domain for economic redevelopment. Some 87 percent responded that government shouldn’t have such power. Some 88 percent responded that property rights are just as important as freedom of speech and religion.

Regulatory Takings

Today, government imposition of regulatory regimes that signifi­cantly diminish the value and enjoyment of private property may present an even more common threat than abuse of eminent domain. Property owners are increasingly subjected to regulatory “takings” – where the use of their land is drastically restricted and, consequently, the overall value of the land diminishes.

The problem begins, therefore, with the growth of government regulations at the federal, state, and local levels of governance that deny owners the legitimate use of their property. A prime example can be seen in the advancement of the environmentalist movement. Just as the inflation of the 1970s moved people into higher tax brackets, so the environmentalism of the 1990s has given government new rationales for controlling the use of property. While there is little doubt that cleaner air or less traffic congestion are a positive end goal, when they are accomplished through heavy handed regulations, we may be sure that our liberties are also being restricted. Production and prosperity also tend to decline, and in the case of those people who bought land anticipating that they would be able to develop it – but now find that they have paid a high price to keep it idle – there is also manifest injustice3.

Leonard Gilroy of the Reason Foundation describes the infringement of property rights through land use regulation as follows:

…contemporary land use regulation often uses public policy to mandate the private provision of amenities that benefit the community-at-large. As the regulatory scheme influencing local land use has grown more prescriptive and restrictive, there has been an increasing curtailment of private property rights. Landowners in many communities nationwide have been restricted in their ability to use their land in the ways that they had intended when they purchased their property, dramatically reducing their property’s value and imposing an economic hardship on them.

If investors don’t know what they own, or can’t be sure of defending their property rights, then they either won’t invest or alternatively they will demand higher rates of return when they do. This idea applies to both tangible and intellectual rights. The net impact tends to be dual — lower levels of investment and higher interest rates, neither of which is conducive to faster economic growth.

Stimulating the Economy

Well-defined and enforced private property rights are the cornerstone of a free-market economy. The positive economic effects of private property are widespread and well documented. Secure property rights promote specialization and exchange, provide incentives for conservation and preservation of resources, and promote technological innovation, entrepreneurship, capital accumulation, and investment. In essence, secure property rights underlie economic growth.

This relationship is confirmed in The Heritage Foundation’s Index of Economic Freedom. As demonstrated in the chart to the right, property rights and economic prosperity go hand in hand.

On average, GDP per capita is over 10 times higher in nations with the strongest property rights than in those with the weakest property rights.

One of the government’s primary roles is to ensure that people can own and make decisions regarding how they will use their property and ideas – which in turn spurs entrepreneurial growth. As such the same correlation between strong property rights and economic growth must pertain to state and local governments.

In a free market economy, one of the strongest incentives that drive entrepreneurs is the desire to please customers and thereby earn a profit. To flourish, entrepreneurs need an economic environment that encourages private property and free markets.

In a system where the government or some central planner owns the nation’s resources and decides how they are allocated, entrepreneurs do not profit from their successes; thus, there is a much smaller incentive for them to be creative. In a free market economy, entrepreneurs can use their property and ideas in ways they think are best, and they can benefit directly from their successes in the form of higher profits or salaries.

Simply put, private property is necessary for economic growth and prosperity.

Conclusion

Today Californians are besieged on all sides by government infringement on their right to own property and use it to its fullest extent. As government and bureaucracy continue to grow, federal state and local governments alike are wielding far-reaching environmentally based land use restrictions, “growth controls,” unreasonable zoning hurdles, facility permitting regimes, and, now, potentially, crippling carbon dioxide emission limits. Throw in the threat of eminent domain and tax policies which diminishe productivity and undermines the security of ownership, and it is easy to see why California’s economy continues to struggle.

One of the most important steps that lawmakers can take is to serve as strong advocates of property rights, and ensure that new laws do not further erode those rights.

By focusing on the importance of private property rights and providing greater protection of those rights, federal, state and municipal leaders will witness the economic growth they have long pursued through other means.

For more information on this report or other Local Government and Housing issues , contact Ryan Eisberg, Senate Republican Office of Policy at 916/651-1796.

Jesus Christ Superstar Starts Final Weekend Run

The Temecula Valley Players production of Jesus Christ Superstar enters the final weekend of it’s 3 week run this Thursday, April 21 at the Old Town Temecula Theater. Some of you old Hippies will not doubt remember the debut of this exciting piece of musical theater from your halcyon days. For the rest of you, JCS was first staged on Broadway in 1971 as the first rock opera. Staged by Andrew Lloyd Weber with lyrics by Tim Rice,  the piece roughly follows the last week of Jesus’ life – provided of course that Jesus had a good voice and was surrounded by lots of singing, dancing Apostles, priests and hookers.

jcs

The Temecula Valley Players version is true to the original production and brings together a diverse collection of some of our Valley’s most talented thespians. For Director Marc McCullough, staging this production has been a lifelong passion. Jason Call, who channels Ted Neely as Jesus, first played a minor part in the
production when he was 14. Now some 24 years later he has achieved his dream to bring the lead role to the stage. Several of the other players have also had an abiding fascination with this unique piece of theater and have eagerly endured months of rehearsals to fine tune the production.

The cast of nearly 50 people includes youngsters of 7 and 8 years old up to a couple ‘senior members’ of nearly 60. Many of the actors are what we refer to as
‘triple threats’, they are equally adept at singing, dancing and acting. I am actually the antithesis of a triple threat in that I can’t really sing or act and I certainly can’t dance, but I do have a certain presence. Thus the role of High Priest suits me fine as foil to the scheming Annas and the evil Caiaphas.

priests

If you haven’t had a chance to catch this local production, tickets for the final 5 performances are gong fast but a few seats remain available. For more information and showtimes visit: Jesus Christ Superstar.

$40 political survival proposal – updated.

Many of you have commented on my earlier blog regarding the proposed $40 dues increase to fund the Realtor Political Survival Campaign. As you recall, that will be voted on in May at our annual meeting in DC. Yesterday we had a 1 1/2 hour webinar with NAR leadership discussing why the additional funding was necessary. At that time the possibility of putting the Public Awareness campaign on haitus for a couple years and using those funds for political purposes was presented as a sort of plan B. According to NAR stats however, that public awareness campaign is a great success – although most of you would just as soon it went away.

Anyway, for those of you opposed to an additional $40 hit on your dues, it appears your voices have been heard, Now you just need to make sure your local association and your NAR Directors are aware of your feelings.

From NAR President Ron Phipps:

To:        Local Board and State Association Presidents

This letter constitutes the official notice required by Article II, Section 10 of the Bylaws of the NATIONAL ASSOCIATION OF REALTORS® of a proposal to eliminate a previously approved membership assessment.

In May of 2010 the NAR Board of Directors approved an assessment of $35 per member for 2011-2013 to be used to continue the Public Awareness Campaign during those years.  The Finance Committee has now offered two alternative proposals regarding funding for the REALTOR® Party Political Survival Initiative.  One proposal eliminates the Public Awareness Campaign $35 Assessment for 2012 and 2013.  That proposal also increases NAR dues by $35 per year to fund the REALTOR® Party Political Survival Initiative.

The other proposal offered by the Finance Committee is being recommended by the NAR Executive Committee.  That proposal would increase NAR Dues by $40 per year to fund the REALTOR® Party Political Survival Initiative.  The Public Awareness Campaign $35 Assessment would remain in effect during 2012 and 2013.

Dues, membership assessments and amendments to membership assessments for the National Association are adopted by the Board of Directors of the National Association.  These issues will be coming before the Board of Directors at its meeting on May 14, 2011.

Sincerely,

Ron Phipps
2011 NAR President

Fannie & Freddie incentives for buyers & agents.

Fannie Offers Incentives for HomePath Properties
On April 11, 2011, Fannie Mae announced new buyer and selling agent incentives in connection with the sale of Fannie Mae-owned properties (HomePath properties).
A buyer of a HomePath property to be used as the buyer’s primary residence can receive up to 3.5% of the final sales price to be used toward closing costs.
A selling agent bonus is available in four states—California, Washington, Arizona, and Texas. In these four states, a bonus is being offered to selling agents who represent a buyer who will use the property as a primary residence. For properties in California and Washington, the selling agent bonus is $1,000. For properties in Arizona and Texas, the bonus is $500.
To qualify for either incentive, the buyer and, for properties in one of the four states, the selling agent must meet certain requirements, including the following. The buyer and selling agent incentive must be requested at the initial offer submission. The initial offer must be submitted on or after April 11, 2011, and the property sale must close on or before June 30, 2011. The buyer must use the property as a primary residence (auction, pool and investor sales are excluded). Check the HomePath website for more details. If you have questions, please CONTACT Jeff Lischer at 202-383-1117 or jlischer@realtors.org with any questions.

What a difference 5 years makes. Temecula/Murrieta Condo prices 2006 – 2011

Inspired by a post of Mirela Monte’s showing what a difference the past 5 years have made to ocean front condos in Myrtle Beach SC, I decided to see what had transpired locally. I mean, we were the foreclosure capitol of the country for awhile back in 2008 & 2009 and our prices dropped about 45% – 55% throughout the region for single family homes. They’re still down but have been stable to slightly higher the past two years and properties are selling well the past 3 years. But I hadn’t really taken a look specifically at condo’s for awhile. I probably won’t do it again for awhile either – weak stomach.

arboretum interiorcondo pond

So here is a comparison of condo prices in several of our better known communities:

Location            Size    Br/Ba            Q1 2006 (73 sold)        Q1 2011 (93 sold)    %

Arboretum          730    1/1                     $235,000                     $70,000        -70%

Madison              854    1/1                     $220,000                     $68,000        -69%

Bucaneer Bay       961    2/2                    $295,000                   $104,000        -65%

Anchor Bay       1,016    2/2.5                  $305,000                   $105,000        -65%

Madison            1,159    2/2                     $285,000                     $90,000        -68%

Arboretum        1,246    2/2                    $314,977                    $135,000        -57%

Pelican Bay        1,387    3/2.5                 $337,900                   $128,000        -62%

Socorro            1,508    3/2.5                  $345,000                   $133,600        -61%

Arboretum        1,745    3/2.5                  $365,000                   $175,000        -52%

All I can tell you for sure is that a lot of first-timers lost a lot of money during the past 5 years. BUT, if you’re in a position to buy into one right now, your timing couldn’t be better. There’s almost nowhere for these prices to go but up. The problem right now is that investors have been scooping these up as fast as they can so the ratio of owner occupied properties has dropped so far most first timers can no longer get FHA financing in these developments. But for an investor is there any question? You can generate a positive cash flow from day one, hold onto it for 3 – 5 years and turn a tidy little profit.

Cash-out now qualifies for Bail-Out. Sweet.

Too many people were being turned away because they had taken cash out of their equity. So now you can enjoy that nice vacation, drive a nice car and still get federal bail-out money. Sweet!

Mortgage aid offered to those who cashed out equity
The California Housing Finance Agency announced this week that people who cashed out equity on their home now are eligible for three of the four “Keep Your Home California” programs.

MAKING SENSE OF THE STORY

  • Keep Your Home California is a state-run program funded with $2 billion from the U.S. Treasury’s Hardest Hit Fund.  It is designed to help low- and moderate-income people who are unemployed or owe more than their home is worth pay their mortgage.
  • There are four individual programs that fall under Keep Your Home California.  Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined.
  • Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements.  Homeowners who cashed out equity will continue to be ineligible for the principal reduction program.
  • When the program first started, homeowners who had tapped the equity in their homes were ineligible for the programs.  CalHFA decided to include these homeowners due to the large number of homeowners who were being turned away for assistance.
  • Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs.  Originally, these borrowers were excluded because they also are excluded under the federal Home Affordable Modification Program, so CalHFA wanted to be consistent with HAMP.
  • To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, and cannot own a second home, among other criteria.  For additional requirements, visit www.keepyourhomecalifornia.org/eligibility.htm.

What a Government Shutdown Means for REALTORS®

The current continuing resolution (CR) providing funding for government operations is set to expire on April 8, 2011. If legislation providing for funding is not signed into law to extend funding after April 8, the federal government could shut down. This means many, but not all, government programs, including some that impact federal housing and mortgage programs, could grind to a halt as early as April 9, 2011. While the true impact of a shutdown is unclear until it actually begins below is a synopsis of how federal housing programs will likely operate in the event of a shutdown. The Office of Management and Budget (OMB) requires each agency to have contingency plans in place and reportedly has instructed agencies to not provide specific information on impacted operations.

Federal Housing Administration

FHA cannot offer endorsements for any new loans in the Single Family Program and cannot make commitments in the Multi-family Program in the event of a shutdown. FHA will maintain operational activities including paying claims and collecting premiums. Management & Marketing (M&M) Contractors managing the REO portfolio can continue to operate.

VA Loan Guaranty Program

Lenders may continue to process and guaranty mortgages through the Loan Guaranty program in the event of a government shutdown.

Internal Revenue Service (IRS)

Should the federal government shut down, the IRS cannot process federal income tax returns or issue refunds (but it can deposit tax payments). Consumers who were expecting to use their tax returns as part of the down payment for a home purchase will temporarily not have access to these refunds.

Flood Insurance

The Federal Emergency Management Agency (FEMA) confirmed that the National Flood Insurance Program (NFIP) will not be impacted by a government shutdown.

Rural Housing Programs

For the US Department of Agriculture programs, essential personnel working during a shutdown do not include field office staff who typically issue conditional commitments, loan note guarantees, and modification approvals. Thus, lender will not receive approvals during the shutdown. If the lender has already received a conditional commitment from the Rural Development office, then the lender may proceed to close those loans during the shutdown. A conditional commitment, which is good for 90 days, is given to a lender once a USDA Underwriter approves the loan. If a commitment was already issued, the funds were already set aside and the lender may close the loan at its leisure. If Rural Development has not issued a conditional commitment, the lender must wait until funding legislation is enacted before closing a loan.

Government Sponsored Enterprises

Fannie Mae and Freddie Mac will continue operating normally, as will their regulator, the Federal Housing Finance Agency.

Treasury

No official word as of yet, but the Making Home Affordable program, including HAMP and HAFA, may not be affected as the program is funded through the Emergency Economic Stabilization Act which is mandatory spending not discretionary.

Background Information on Government Shutdown

HJ Res. 48 extends the Continuing Appropriations Act, 2011 (Public Law 112-6) to April 8, 2011. If another continuing resolution (CR) or budget is not signed into law, the federal government could shut down on April 9, 2011. This requires the furlough of non-emergency personnel and the curtailment of federal agency activities. Federal contractors cannot be paid. Programs funded by annual appropriations are directly impacted though programs funded by laws other than appropriations (such as Social Security) may also be impacted. The last government shutdown occurred during fiscal year (FY) 1996 and lasted 21 days, from December 16, 1995 through January 6, 1996.

The Anti-Deficiency Act is the primary law preventing government activity when no budget or CR is enacted. The act, found in 31 U.S.C., prohibits:

  • Making or authorizing an expenditure from, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law.
  • Involving the government in any obligation to pay money before funds have been appropriated, unless otherwise allowed by law.
  • Accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property.
  • Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations

Basically, the government may not make payments or commitments unless there is enough money in the bank. According to the US Office of Personnel Management, an agency must shut down activities not excepted by the US Office of Management and Budget (OMB) when it no longer has the funds to operate. OPM recommends that agencies:

  1. communicate with employees and representatives about a potential shutdown;
  2. prepare draft furlough notices;
  3. determine which positions are excepted from the furlough according to OMB guidance.

Federal agencies have been required to complete contingency plans since 1980. OMB has three different bulletins that agencies may reference in the development of their shutdown plans. Plans must include, among other things, estimated time to complete a shutdown and the number of employees to be excepted. The President, Members of Congress, presidential appointees, certain legislative branch employees, and federal excepted employees are not subject to the furlough.

Sources

House Resolution 3082, “An Act making appropriations for military construction, the Department of Veterans Affairs, and related agencies for the fiscal year ending September 30, 2010, and for other purposes.”
http://www.gpo.gov/fdsys/pkg/BILLS-111hr3082eas2/pdf/BILLS-111hr3082eas2.pdf

Antideficiency Act Background. US Government Accountability Office.
http://gao.gov/ada/antideficiency.htm

Guidance and Information on Furloughs. US Office of Personnel Management.
http://www.opm.gov/furlough/furlough.asp

Update on Keep Your Home California Program

Update on the ‘Keep Your Home California’ program.

This $2 Billion program, announced a few months ago to great fanfare but little result, has determined it’s time to expand the programs due to it’s thus far limited reach. The program is designed for low and moderate income borrowers who refinanced their home, took out a home equity line of credit (HELOC), or are underwater on their loans and now find themselves in trouble (duh). The program features four separate sections to help these borrowers including one to get caught up on their loan, another to reduce their principle, one to provide relocation and transition assistance and one to subsidize payments to unemployed homeowners.

Administered from a federal grant by the California Housing Finance Agency, the programs director says they started slow by design. Before jumping in with both feet they wanted to guage the response, see what kind of people were applying and why they were not qualifying. The director expects the program ultimately to help 100,000 Californians.

Of course as I noted in an earlier post when the program was announced, the program is voluntary for lenders. Yeah, you read that right. Lenders will voluntarily agree to accept partial back payments or reduced principle for borrowers who took cash out of their homes during the boom times. Low to moderate income buyers, who are in financial trouble. Yeah, the banks haven’t demonstrated much pro-activity in helping anybody at all, let alone low to moderate income folks. I’m sure this will all work out fine. Even the director admits that ‘only some lenders are participating’. Go figure.

Oh well, I guess if we can keep 100,000 low to moderate income people in their homes here while other demographic groups are ignored by HAMP and HAFA and other bail-outs, that’s a good thing, eh?

Why would the building industry support additional taxes on housing?

‘It has come to our attention that the California Building Industry Association (CBIA) has issued a Call to Action urging its members to tell the Federal Housing Finance Agency (FHFA) to reject a proposed rule that would prohibit private transfer fees.  The California Association of Realtors strongly supports the prohibition and urges you to ignore the Call to Action from the CBIA if you or any of your members receive it.  C.A.R. is currently drafting a letter outlining its position on the issue for the FHFA.’

You may recall a couple years back when CAR tried to get our legislature to pass a bill prohibiting private transfer fees. We were aligned against an odd coalition involving our some-time allies the Building Industry Association who were allied with a variety of environmental groups like the Sierra Club and others. Our bill was defeated but we did manage to get a corollary bill passed that at least required properties with private transfer taxes attached to them to at least disclose them to prospective buyers. Prior to that it was just one of those hidden items on page 57 of your title report that most people didn’t find out about until they went to sell their house.

SURPRISE!!! Here’s a bill for another $2,749 that you, Mr. Seller, or you, Mr. Buyer, or you Ms. Agent, get to pay..

Now you might be asking yourself – ‘Self, why would the building industry be in favor of an additional transfer tax on a home – especially a private transfer tax?’ Well according to the BIA, ‘private transfer taxes are used to finance a variety of environmental mitigation, community amenities and affordable housing requirements’. According to their website – if  the current FHFA proposal is enacted the following results may occur:

  • Property values could suffer (already have. Will suffer more in areas with additional taxes attached to the property)
  • Home sales transactions will become cumbersome (really? Having another tax on the property will make the transaction easier?)
  • Lending will be harder to obtain (and having another tax on the property will make it easier? Come on!)
  • Taxes and home owners association dues will increase (too late. You’ll just be one more tax)
  • Environmental conservation efforts will be stifled (no, environmental extremist agendas will be stifled)
  • The real estate market will suffer further (yep, another tax on housing will really help us climb out of this hole)
  • An individual’s ability to choose where they want to live will be inhibited (well yeah, they might choose not to live in an area with a transfer tax)
  • Community programming and quality of life will be compromised (yeah, a tax that has no direct benefit to the community will really compromise it)

Sounds pretty dire, doesn’t it? But don’t be fooled. There are areas of the country where private transfer taxes are needed and I’ve heard from fellow Realtors in some of those areas. But those areas are excluded from this legislation. Why? Because there’s a nexus between the funds being collected from the fees and where they are spent – which is right on the same project. For example, Condo developments that rely on these fees for maintenance and amenities upkeep are exempt as are a variety of other direct benefit uses.

But for California, and indeed much of the country, you need read no further than the first sentence in the BIA claim – ‘finance a variety of environmental mitigation.’ Translation ; it’s a way for developers to knuckle under to environmentalists demands without incurring any cost themselves by passing it along to future home purchasers.

Here’s the typical California scenario: A developer has an option on a tract of land where they would like to build new homes. An eco-mill (environmentalist group set up to find out about this kind of stuff, see – ambulance chasing lawyer) finds about about this developers plan and approaches the builder.

Eco-mill: “We don’t want anything built there because there are maybe endangered species or trees or we just want to preserve the wildlife there. If you move forward with your plans we will sue you from here to kingdom come and even though you might eventually prevail in court, you will spend a ton of money and ultimately it will drive your cost to build these homes up past the point where they are economically feasible.”

Developer: “Jeez, what can we do. There’s a need for houses in this area and we’ll be building a good affordable product that will be really good for young families?”

Eco-:mill “Well, maybe we can reach an accommodation – and it won’t cost you a dime.”

Developer: “That sounds delicious – what do we have to do?”

Eco-mill: “Just attach this private transfer tax to your homes. Every time that home gets resold for the next 30 or 50 years, that tax will be collected and we’ll rake in millions of dollars over the life of the property.”

Developer “And what will you do with the money?”

Eco-mill: “Oh don’t worry abut that.”

Developer: “But will you spend it in the area, maybe help build a new road or a park for the development, contribute to a school or help build a new fire station or something to benefit the residents who will be paying the tax?”

Eco-mill: “Are you friggin crazy? We are totally unregulated. We might spend part of it on new Prius’s for our members, and we might raise our own salaries and we’ll probably spend part of it to research other poor schmucks like you who are thinking about building somewhere else and we’ll no doubt spend part of it suing developers who don’t just fold up like a cheap card table when we threaten them.”

Developer: “Hmmm, well I don’t like that one bit but as long as you promise to leave us alone I guess we’ll just go along and get along.”

Eco-mill: “Thatta boy. Next.”

Think I’m making that up? That exact scenario plays out numerous times throughout our state – less now that developers are building fewer homes, but it was so prevalent during the boom days that whole eco-mills were set up around the product. There was even a Texas company on-line offering the opportunity to help you set up an individual private transfer tax on your own home so that after you sold it, any future sellers would have to send you a check.Yeah, really.

The scenario also happened right here in Temecula with a group that was threatening to stop a well known developer from building a big box store in South Temecula. In that case, because it was a  single store rather than a development with future resale, the settlement was for an upfront fee and the organization went away.

And that’s how it works.

So if you get an email from colleagues at the Building Industry asking to help defeat this FHFA proposal for a private transfer tax, pass on it. NAR has been fighting hard to get this provision included at a national level and at least 11 states have passed a similar measure prohibiting these private transfer taxes. States like California that have no political will (balls) to step up and take a stand against these eco-terrorists, will only benefit from the passage of this proposal.

Well, that’s just my opinion. I could be wrong.

Gov says drought is over – rates rise in celebration.

Governor: Drought is over.

What a great headline on the front page of our daily newspaper today. Accompanied by a photo of two goofs standing out in the snow with some 15′ long stick suspended from a ski pole measuring how heavy snow is. I don’t know – I guess it was meant to convince us the Gov. knows scientific stuff.

But the message was clear, our state reservoirs have reached such high levels after two years of rainy winters and plenty of snow up high that the drought declared in 2008 no longer exists. WhooHoo! The biggest reservoir in the system, Oroville Dam, is at 104% of its historical average, Shasta is at 111% of historical, our current snowpack is at 165% of normal. Even the Colorado River basins, Lake Mead,  Diamond Valley and others are filling up fast.

But wait – they remind us that conservation remains necessary because of the precarious condition of the Sacramento River Delta. Even though they’ve got all that water, a lot of it up north, doesn’t mean they will be releasing any more for us down south because it would still kill the little Delta Smelt – that 3 inch long good-for-nothing fish that gets sucked into pumps because it’s too stupid to swim away. Yeah, we still got that.

But even Southern California reserves are up – plenty of water for now. That means the 50%+ increases in price they’ve jacked onto us the past two years will stabilize? Maybe even drop a little since water is now plentiful? After all, the increases were to encourage conservation during the tough times and reduce our dependence on imported water.

And we’ve done that right?

Usage in San Diego County is down 20%, other areas are averaging between 15% and 43% reductions over the past 2 years. I mean, they beat us over the head with this. Gotta conserve. Low flow toilets, desert landscape, 5 minute showers,  if it’s yellow it’s mellow, if it’s brown flush it down, you name it, we’ve done it.  Heck I’m even drinking my whiskey neat because I don’t want to waste the water for mix or for ice.

We get that: Conservation = good. No conservation = expensive.

So now we get a break, right?

Yeah, I got your break right here, Pal. This is the part where you just have to appreciate the humor of the situation or you’re likely to go on a rampage with multiple dangerous weapons and a bad attitude. According to one water department spokehole, “all that water is a blessing and a bane.” A what? A bane you ignorant savages! Because now they have all this water but guess what? They’re not selling enough to cover their asses – I mean expenses. Honest to Jesus H, we’ll now be paying higher water bills because we’re not using enough. I believe judicious use of the ‘F’ word might be appropriate here.

Sounds like the oil companies. “Hey, they’re using too much gas, lets jack up the price to get them to conserve. Hey they’re not driving enough, we need to jack up the price to boost our profit. Hey, there’s a crisis in Libya, let’s jack up our price because we can. Hey, we don’t even need a good reason anymore, lets just jack up our price because….. Jackholes!

So we’ve got water flowing out the kazoo but we’re still scheduled for another 12.5% in rate hikes by 2012. It would appear that we’re damned if we do and damned if we don’t. If anybody can suggest a scenario out of this wherein the consumer actually wins a little, please feel free to suggest it.

Aw what the hell. It’s just California. Grab a little medicinal weed, go to the beach and forget about it.


Realtors! Please answer your Call for Action.

Stay Active. Answer the CFA!, Posted by Vince

Posted: 30 Mar 2011 07:18 AM PDT

Doctors consistently tell us that we can keep ourselves healthy if we stay active. Without consistent exercise, our health deteriorates.

It’s the same in politics. If REALTORS® continue to stay active on Capitol Hill, we can help bring our industry back to health and maintain its health. If our participation slides, our businesses slide.

We sent out a Call for Action on Monday to all REALTORS® on the mortgage interest deduction. It tells Congress not to trim the MID one bit. It also asks members of the House of Representatives to back House Resolution 25 which supports the MID in its current form.

We’ve already seen a strong participation rate on this one. But when we say we need “everyone” on board answering the Call for Action, we mean it. This is a serious issue that will affect homeowners, consumers, and every single REALTOR® in America.

There’s no association for home owners out there. There’s only us. NAR represents the 75 million home owners.

So it’s crucial that REALTORS® remain active and answer the CFA today. Now is your moment to let your member of Congress know what’s important to you.

If you need more convincing, check out the letter-to-the-editor on the MID in the Chicago Tribune from NAR’s Chief Economist. Do you think it’s a good time to ask homeowners to cough up another $3,050? I don’t either.

Thank you for your participation! I promise you, it’s making a big difference. — Vince Malta, 2011 NAR Vice President and Liaison to Government Affairs

Redistricting & Open Primaries – it’s a whole new world.

Most of you are aware that we will be undergoing a massive redistricting effort  that will impact our County, our State and our Federal elective districts. Certainly in California we’ve all been aware that in the past decade the political boundaries 1) make no sense and 2) produce landslides for the incumbent party. There are definite Republican Districts and definite Democratic Districts and it’s pretty much a waste of time for the alternate party to even field a candidate in those races. One seat has changed parties during the past 10 years out of over 250 separate races. 1!.

But that’s all about to change. Californians voted last fall to form a commission to draw the new districts – unlike the last time they were drawn when we let the politicians draw their own. The Commissions report is due out by August and our area will be in for some changes because our region has grown faster than most regions of the state. Our County Supervisor boundaries will be redrawn to reflect the growth in Southwest County and, with the potential election of current Assemblyman Kevin Jeffries to a supervisorial seat, our region could see 2 Supervisors representing Southwest County for the first time EVER. That’s good.

At the state level we probably won’t see much change but the district  boundaries will definitely be redrawn to make some sense by keeping contiguous city interests in one sphere. Right now Jeffries has a district that runs in skinny strips hither and yon, crossing over Nestande’s district in places, running into San Diego County – makes no sense. Our Senatorial District may also see some shifts as Emmerson keeps a more contiguous area of Riverside County while Anderson gives up some of the northern portion of his San Diego District that starts in Chula Vista.

Our regions also stands to pick up an additional federal representative as more of the population has shifted inland from coastal areas. With out region currently split between Calvert, Bono-Mack and Issa, we’ll have to see what that means.

Further complicating the political landscape is the new open primary rule, again resulting from the last election. There will no longer be Republican and Democratic primaries, just one big free-fer-all. The top two candidates will run against each other in the fall. The theory is that this will draw more candidates from the middle of the road rather than the ideological edges of party politics. One thing it will do for sure is cost way more money. The rest we’ll just have to see about.

Nationally known prognosticator Charlie Cook has recently published his first blush on what that all means to us. His exhaustive report covers the entire country as well as every district within the state. I’ve included an excerpt here dealing only with our immediate area. Stay tuned. This is going to be an interesting season leading up to next years election.

The Charlie Cool Political Report

California
Redistricting Authority: Commission
Ideal New District Population: 702,905
Current Partisan Breakdown: 34 D, 19 R
2012 Cook Redistricting Forecast: 35 D, 18 R

San Bernardino and Riverside

San Bernardino County has almost enough people for three districts, and commissioners will almost certainly need to draw a Hispanic majority seat anchored by the cities of San Bernardino, Fontana, and Rialto. The question is whether commissioners will try to split Democratic Rep. Joe Baca’s current 43rd CD into two parts, paring his district down to his home base in those three cities, and putting Ontario in a separate Hispanic majority district. There will almost certainly need to be a Republican-leaning district anchored by the fast-growing Victor Valley area to the north, and the fate of Chino to the south is anyone’s guess.

Riverside County grew 42 percent in the last decade and surpassed San Bernardino, adding enough people for slightly over three whole districts. There is very big redistricting upside for Democrats here: Riverside gave President Obama a majority of its vote in 2008, yet all four of its districts are represented by Republicans. The most talked-about scenario calls for commissioners to create a new Hispanic majority district taking in Corona/Norco, Riverside and Moreno Valley. This seat would have a significant Democratic edge and could include the Corona home of GOP Rep. Ken Calvert, whose 44th CD is already 43 percent Hispanic.

In fact, surging Hispanic population and political participation in Riverside County explains why Calvert, who routinely had cruised to reelection since 1992, was nearly caught napping in 2008 when underfunded Democratic teachers’ union organizer Bill Hedrick took 49 percent of the vote. Calvert’s 44th CD needs to lose 141,851 residents, so it’s possible a new GOP-leaning district in southwestern Riverside County will complement a Hispanic majority district to the north. Calvert could run here, but he would almost certainly have to overcome primary competition in a vastly new district; Calvert took only 66 percent in his 2010 primary against a challenger who spent just $17,000.

The fastest growing district in the state was GOP Rep. Mary Bono Mack’s 45th CD based in explosive Palm Springs and Hemet in eastern Riverside County. The 45th needs to shed 211,304 residents. There are rumors Bono Mack may be considering an early exit from Congress to help her husband, Florida GOP Rep. Connie Mack IV, with his prospective Senate bid. If that happens, this district could be highly competitive. But Republicans would be somewhat relieved if the eastern reaches of the 45th CD, such as Moreno Valley, were lopped off into a new Hispanic majority seat, boosting the 45th CD’s GOP performance.

There’s virtually no way commissioners will draw new districts that endanger GOP Reps. Darrell Issa (CA-49) and Duncan Hunter (CA-52) in anything other than primaries, unless they draw much of the deeply conservative territory in northern San Diego County into districts with more urban areas, which would be a stretch. A continued 3-2 GOP edge in this southernmost region of the state still seems like the most likely outcome.

As if boundary fortune telling isn’t already hazardous enough, the state’s new “top two” ballot law has added a whole new layer of complication. In June 2010, voters passed Proposition 14, setting up jungle primaries for all federal and state elections in which the top two vote-getters, regardless of party, will advance to the November general election. Candidates aren’t even required to list their party on the ballot anymore. The first indication of the law’s impact could come in a July 12th special election to replace resigned Democrat Jane Harman in the Torrance-based 36th CD.

In the new “top two” era, two candidates from the same party can and will compete against each other on the general election ballot in some districts. This is highly unlikely to happen in swing seats, with the possible exception of unusual cases like open seat races where a plethora of candidates from each party would divide up the primary ballot. The more likely impact of this law will be to shut third party and independent candidates out of November elections.

Over the last few years, relatively unpopular incumbents have eked out November races with less than 50 percent of the vote thanks to minor candidates siphoning opposition votes. Unpopular incumbents won’t be able to depend on this crutch anymore.

California’s brave new world of districts and election laws could seriously endanger 15 or more incumbents. If the commission were to draw districts remotely resembling normal shapes, the incumbents at the most risk in primaries or generals would be those currently sitting in the most gerrymandered districts. Republicans with the most cause for concern are Reps. Dan Lungren (CA-03), Elton Gallegly (CA-24), David Dreier (CA-26), Gary Miller (CA-42), and Ken Calvert (CA-44). The Democrats: Reps. Jerry McNerney (CA-11), Sam Farr (CA-17), Dennis Cardoza (CA-18), Jim Costa (CA-20), Brad Sherman (CA-27), Howard Berman (CA-28), Laura Richardson (CA-37), Grace Napolitano (CA-38), Bob Filner (CA-51), and whoever wins the CA-36 special election in June.

Bottom line: Redistricting may endanger more Democrats in primaries and more Republicans in general elections. Overall, a true incumbent-blind redistricting plan may bequeath Democrats an additional seat or two, given that Republicans currently represent more marginal districts. Eight GOP members sit in districts that voted for President Obama in 2008, while no Democrats sit in districts that voted for GOP presidential nominee John McCain. And if commissioners or judges place an emphasis on maximizing Hispanic voting strength, Hispanic candidates could have new opportunities in as many as five additional districts.

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