ProtectPropertyRights

Charles McMillan
CIPS, GRI
President
Dale A. Stinton
CAE, CPA, CMA, RCE
EVP/CEO
GOVERNMENT AFFAIRS DIVISION
Jerry Giovaniello, Senior Vice President
Gary Weaver, Vice President
Joe Ventrone, Vice President

500 New Jersey Avenue, N.W.
Washington, DC 20001-2020
202.383.1194 Fax 202.383.7580
www.realtors.org/governmentaffairs

MYTHS AND FACTS: HOME ENERGY LABELING
On June 26, the House of Representative approved H.R. 2454, the American Clean Energy
and Security Act. Since then, there have been many reports about the bill and NAR’s
position that are based on incomplete information. Here are the facts:
Claim: “The bill mandates energy audits and labeling before any home in America is sold.”
Fact: The bill does not create a federal energy audit or labeling requirement. As
introduced, the original bill would have required energy audits and labeling at the time of
sale. However, Realtors succeeded in making many positive changes before the bill passed.
Many published reports are not based on the version of the bill that was considered by the
House. As approved, the bill:
• Does not create energy audit requirement for real property at time of sale.
• Exempts existing homes, multifamily and commercial buildings from any federal
energy labeling guidelines such as the existing federal Energy Star label program
(section 204(m)), and
• Leaves the decision entirely to state governments whether to pass a law to require
labels, but expressly prohibits labeling during a transaction (Section 204(h)).
Claim: “The bill federalizes building codes.”
Fact: The bill would create a national building code standard that improves upon building
energy efficiency. States would be given 1 year to bring their state codes into compliance
with the new national standards. If a state fails to do so, the federal government would set
and enforce the state’s energy codes.
Throughout the bill’s development, NAR has worked as part of a broad real estate coalition
to address concerns with the House bill’s building-code provisions. While we supported
committee amendments to limit these provisions, the amendment to strike the section was
unfortunately voted down along party lines.
NAR will redouble its efforts in the Senate where the energy committee has reported
bipartisan alternative to the House’s that sets more realistic energy reduction targets while
preserving state and local authority. If and when the Senate takes up its bill and it reaches
a House-Senate conference to resolve the bill differences, we will undertake the necessary
efforts and activities to ensure onerous provisions are not imposed on real estate markets.
Claim: “NAR supports a “Cap and Tax” bill” Fact: NAR supported moving legislation to the Senate that provides home owners with the resources and tools they need to improve property and save money on their energy bills. As passed, the bill:
• Does not create a federal energy audit requirement for real property;
• Exempts existing homes and buildings from any federal guidelines for new construction energy labeling.
• Leaves the decision to state government whether to pass a law and label, but specifically prohibits any labeling during a sales transaction.
• Prohibits the Environmental Protection Agency from regulating carbon emissions from residential and commercial buildings under the Clean Air Act;
• No longer includes provisions to bolster a private right of action under the Clean Air Act that would have allowed citizens to halt construction over minor risks – whether real or imagined;
• Offers property owners with matching grants and diagnostic tools to make property improvements that saves energy; and
• Provides green building financial incentives for HUD housing, including a loans, block grants and credit in underwriting for energy improvements.
At the direction of the NAR Board of Directors and Land Use, Property Rights and Environment Committee, NAR concentrated on the real estate provisions in the bill. While there were many NAR-supported changes to the House bill, NAR will continue working to address the remaining issues as the bill winds its way through the legislative process. Claim: “NAR should have read the bill.”
Fact: NAR reviewed the entire amendment and bill before taking a position. NAR was directly involved in the development of the 308-page amendment. The energy labeling exemption for existing real property was included on page 45. The House bill is available to the public at the Library of Congress’ website: http://thomas.loc.gov/ . The real estate provisions are in Title 2 beginning on page 320.

During the week of May 18, 2009, President Barack Obama signed into effect a law entitled the Helping Families Save Their Homes Act of 2009. While the Act contains a number of provisions relating to loans, one important provision relates to notices to tenants to vacate when a property is sold pursuant to a foreclosure sale.

Effective immediately, this law provides that an REO lender or other buyer who acquires title through a foreclosure sale must give at least 90 days notice to terminate a tenant. The 90-day notice applies to a month-to-month tenant, or if a new owner intends to occupy the property as their primary residence at the end of the 90 days. Otherwise, a tenant with a one-year or otherwise fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the lease term ends.

This new requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs, such as Section 8, or other state laws that provide additional protections. The law is scheduled to expire on December 31, 2012.

Shannon B. Jones, Partner,
SBJ@SBJ-LAW.COM

Help Stop New Point-of-Sale Mandate!
Stop SB 407 TODAY!

CCAR and C.A.R. oppose SB 407 (Padilla), a bill that requires ALL residential and commercial properties be retrofitted at point-of-sale with low-flow toilets, shower heads and faucets.
While C.A.R. appreciates the goal of conserving water, C.A.R.
opposes SB 407 because it will not achieve the objective of significantly reducing water consumption and because it will further destabilize the already weak housing market. Recent amendments to SB 407 also increase liability exposure for REALTORS(r). SB 407 will be voted on by the entire Senate within the next few days!

Action Item

Please call Senator Mark
DeSaulnier

at (916) 651-4007.

Urge him or her to oppose SB 407!

Issue Background

The state has directed water agencies to come up with a plan to dramatically reduce urban water consumption. In response, the Metropolitan Water District of Southern California (MWD) and the Association of California Water Agencies (ACWA) are sponsoring SB 407 to force REALTORS? to become their “water police”

Why C.A.R. Opposes SB 407:

Point-of-Sale (also known as ?time-of-sale?) takes too long.
About 70% of California?s existing housing stock was constructed prior to the implementation of water efficiency standards in 1992. Point-of-sale requirements have such poor market penetration that they will take forever to reach all properties.
In any given year, less than 2% of older residential and commercial properties change ownership. Point-of-sale requirements just aren’t practical and don’t work.

SB 407 will hurt the real estate market and further weaken California?s economy. Retrofitting residential and commercial properties will cost each seller hundreds, if not thousands of dollars. By forcing retrofits to be made before the close of escrow, SB 407 imposes extra closing costs and jeopardizes transactions.

SB 407 burdens state and local government owned properties, too.
SB 407 will impose new costs on the sale of publicly-owned properties as well ? at a time when governments are struggling for revenue. As California and local governments prepare to liquidate surplus properties, including state-owned housing, office space, hospital and school buildings, these will all be burdened with new costs before they can be sold. State and local governments (including school districts) cannot afford these new costs, and neither can private owners.

Transactions are time-sensitive. Point-of-sale mandates and retrofits hurt the escrow process. Sellers are forced to make changes which may include finding and bidding specialized contractors to implement the mandates or retrofits. Once the improvements have been completed, verification by the buyer and seller will take even more time to complete. Complicating matters further, some retrofits may even trigger the need for a permit and/or a final inspection upon completion. In a sales transaction, where lenders dictate the timing of qualified financing and TIME IS OF THE ESSENCE, these unreasonable and overly burdensome mandates threaten the transaction.

There is a better alternative. The key to improving water use efficiency in existing properties lies in a broad, statewide approach that reaches all California buildings. This can be achieved by state and local governments partnering with utilities to target all pre-1992 homes first. Once pre-1992 housing has been retrofitted, the rest of the housing stock could be updated; and agencies should use federal grants, ?public good? funds and/or grant programs available through the utilities or a utility surcharge, grant, or cost-avoidance financing repaid via a utility billing to help fund the retrofits. The law should not target properties because they sell. It should target the ones that most need repair whether or not they sell.

Beware Deceptive Petitions

On May 19, the Walnut Creek City Council approved the much-improved plans for Neiman Marcus at Broadway Plaza. The new building is significantly smaller and only two stories tall. For parking, Broadway Plaza will add 175 new free parking spaces – fully meeting city requirements. Read more about the project . . .

This project is endorsed by the Chamber of Commerce, the Walnut Creek Downtown Business Association, the Contra Costa Association of Realtors and over 1,000 members of the community.

Last fall, the Taubman Group, a Michigan-based mall developer that owns Sunvalley Mall and the potential retail developer for San Ramon’s City Centre, spent nearly $100,000 on a petition to prevent Neiman Marcus from coming to Walnut Creek.

Why? Because Walnut Creek’s loss would be their gain.

And, Taubman has threatened to launch another signature-gathering effort to force the City – at a cost of over $300,000 — to place the project on the ballot.

Good Business – Protect Our Future

Neiman Marcus at Broadway Plaza will benefit our community by keeping our downtown vibrant and serving as an important sales tax base to fund police, road improvements, and our community services. Neiman Marcus means:
 More JOBS
 More PARKING and TRANSIT Improvements
 More revenue for POLICE, ROADS, PARKS, and the ARTS
 Higher PROPERTY VALUES
 A competitive DOWNTOWN
 A stronger LOCAL ECONOMY
Yes for Walnut Creek

Recognizing the threat to Walnut Creek of the big-money opposition, a group of residents and civic, business and non-profit leaders has formed “Yes for Walnut Creek.” This group is urging voters to know the facts before signing any petitions put forth by Taubman.

“The opposition is a bully,” said Brad Kofoed, chair of Yes for Walnut Creek. “Their only intent is to harm our downtown – to harm Broadway Plaza, to harm our local merchants, to take away local jobs, and damage our tax base, which pays for police, paves our roads, and supports the community services that are so important to Walnut Creek.”

For more about Yes for Walnut Creek, check the group’s website, www.YesForWalnutCreek.org.

CCAR members must RSVP for LEG day lunch by Tuesday, May 26th. To register call 925-295-9207. If you have questions please consider visiting the CAR website for LEG day here or call Bielle Moore, CCAR Government Affairs Director at 925-295-9232 or by email at ccarlegday@gmail.com

See our calendar entry with more details here: http://www.ccartoday.com/855

Clips from NAR Real Estate Summit (mid year 2009 meetings)

Lets assume for the moment that it really was housing that burst our collective economic bubble and contributed to the downward spiral towards recession. Certainly then housing becomes the ‘magic bullet’ that can send this recession packing. We had great news from NAR yesterday in the form of very promising pending sales data, as well as an unexpected uptick in housing starts and construction spending. And here is our very own president, Steve Reiser, to help put all of that in perspective for you: http://www.ktvu.com/video/19369684/index.html

Steve Reiser gets Real with pending sales update

Welcome to the CCAR Mortgage Protection Headquarters

The California Association of REALTORS^® Housing Affordability Fund (CARHAF) has released a program to help provide first time home buyers some peace of mind.

Click here to read the Mortgage Protection FAQ

Click here to access the application for the Mortgage Protection Plan.

Remember that to take advantage of the Mortgatge Protection Plan requires that you work with a REALTOR^®
to purchase your home. Find your REALTOR^® today!

CCAR has REALTOR^® members with expertise in the types of transactions you are pursuing. Just use our Find a REALTOR^® page - you can specify required designations, request foreign language proficiency, and contact the REALTOR^® conveniently once you have made a selection.

Frequently Asked Questions

What is the Mortgage Protection Program?
The Mortgage Protection Program provides a combination of involuntary unemployment,
accidental disability and accidental death protection for qualified first-time home buyers.
The program is being offered by the California Association of REALTORS® Housing
Affordability Fund (“CARHAF”), to help build confidence in the purchase of a home and
to reduce the fear of foreclosure in the event of a job loss or accidental death or
disability. CARHAF has committed $1 million to provide this program to qualified home
buyers.
What are the benefits?
Through the program, first-time home buyers who lose their jobs or become accidentally
disabled may be eligible to receive up to $1,500 per month for up to six months to help
make their mortgage payments. A qualified co-buyer can also participate in this program,
for a reduced monthly benefit of up to $750 per month for up to six months in the event
of a job loss or disability. In addition, the program offers a one-time $10,000 accidental
death benefit.
How much does it cost?
It costs the home buyer absolutely nothing! If the home buyer is granted an insurance
policy, the insurance premium is prepaid for one year by CARHAF.
Who qualifies for this program?
An applicant must:
• Be a first-time home buyer who hasn’t owned a home in the last three years;
• Open and close escrow between 4/2/2009 and 12/31/2009;
• Purchase a primary residence in California;
• Be represented by a California REALTOR®; and
• Be a W-2 employee (i.e. not self-employed) but can not be a sole proprietor,
partner or controlling stockholder in the business in which you are employed, or a
dependent of a sole proprietor, partner or a controlling stockholder in the
business in which you are employed.
There are no income or home price caps under this program.
Are there any exclusions under the policy?
Yes. You cannot be self-employed, an independent contractor, a business owner, a
temporary or seasonal worker, an educational employee on a scheduled break, or work
for your immediate family. There are other exclusions such as voluntarily choosing to
become unemployed, expiration of employment contracts, willful misconduct, criminal
misconduct, death, disability, family leave, childbirth, pregnancy and war. See the
insurance policy for specific definitions of these exclusions.
How do home buyers apply?
Home buyers must apply through a California REALTOR®. The REALTOR® will submit
the completed application to CARHAF on the home buyer’s behalf. The application can
be downloaded here.
When does the home buyer get the insurance contract?
An e-mail confirming coverage under the insurance policy will be sent to the insured and
a special web address and password will be included to use in order to access and
review the insurance policy within thirty (30) days after eligibility has been verified.
Must the monthly benefit amount be used to pay for the mortgage payment?
Yes. Under the CARHAF Mortgage Protection Program, a home buyer agrees to use the
insurance proceeds first to pay the mortgage, and the remainder however he/she sees
fit.
Are the benefit payments taxable?
It is possible that unemployment benefits may be taxable. Home buyers should consult
their tax advisor about any benefits received and determine what tax rules apply. The
plan pays regardless of any other coverage a home buyer may already have.
For general customer service questions, who do I contact?
Call Monica Rodriguez at (213) 739-8380, or email Ms. Rodriguez at monicar@car.org.
Be sure to mention that you are a CARHAF Mortgage Protection Program customer.
When can the home buyer receive program benefits?
The insurance policy requires a “vesting” period of six months before becoming eligible
to apply for benefits and a one month “elimination” period before payments begin. More
information about the policy can be found at www.carhaf.org or by calling Della Romero
at RealCare at 800-939-8088 or emailing her at dromano@realcare.biz.
How long will this program last?
Applications will be reviewed and insurance policies will be awarded on a first come, first
served basis until the program funds are depleted or until CARHAF discontinues the
program, whichever occurs first.
Questions about the Insurance Benefits
What is meant by Involuntary Unemployment?
Under this plan, Involuntary Unemployment is defined as totally and continuously losing
full-time employment as a result of:
(1) a permanent involuntary termination of employment; or
(2) an involuntary layoff or suspension of employment; or
(3) an authorized, unionized strike or labor dispute by a chartered or previously
organized trade or labor union; or
(4) a lockout, discharge of employees or temporary closing of business in response to
organized employee activity; or
(5) a state or federally declared disaster caused by a geological or weather-related
natural event.
Involuntary Unemployment does NOT include quitting, resigning, retiring, expiration of
an employment contract, being fired for cause, or being on leave due to accident,
sickness, disability, family obligations, childbirth, pregnancy, or due to scheduled
seasonal or temporary breaks.
What are the waiting periods?
Initial Vesting Period and Actively at Work Requirements. Before involuntary
unemployment insurance can be utilized, there is an initial Vesting Period of six (6)
months and a four (4) month "actively at work" requirement. These periods can run
concurrently, so you must be enrolled for at least six (6) months and also be working for
at least 4 consecutive months immediately prior to the date your involuntary
unemployment begins before you can have an unemployment event qualify for a claim.
If you become unemployed anytime before the initial vesting period is over, you will not
be eligible to file a claim, and you will have to return to work for at least 4 consecutive
months before eligibility begins. The unemployment claims procedure requires
documentation of registration with your state’s unemployment office which will verify the
date of your unemployment.
Elimination Period. Once the vesting period and "actively at work" requirement has
been met, there is also a 30-day "Elimination Period" before cash benefits are paid. The
first 30 days of involuntary unemployment are not covered.
How long do I get involuntary unemployment cash benefits?
There is a six (6) month "Maximum Benefit Period" per unemployment occurrence. You
will be paid 1/30th of the monthly benefit amount for every day you are unemployed
(beyond the vesting and elimination period) up to a maximum of 6 months. You will be
paid in arrears, not in advance.
If you go back to work after having a claim paid, you have to return to work for at least
four (4) months consecutively, to "requalify" for benefits. But this will only apply if you
renew the coverage beyond the first year.
How do I file an unemployment claim with the insurance company?
Contact 1-800-888-2738 for a claims package. Please mention that you are a CARHAF
Mortgage Protection Program customer when doing so to ensure that your call is
forwarded to the appropriate personnel. You will need to complete the claims package
and submit it according to its instructions. You must register with your state’s
unemployment division. The claims administrator will verify your coverage and start the
claims payment process. If the waiting periods are over and your claim is otherwise
valid, you will be paid a benefit equal to 1/30th of the monthly benefit amount for every
day beyond 30 days that you are out of work due to unemployment for up to six (6)
months. The insurance company does not pay claims benefits in advance.
If I get sick and am out of work do I qualify for Accidental Disability?
No, it only pays if you miss work due to an accident.
Is there a vesting period for the Accidental Disability?
There is no initial vesting period for this coverage but it does contain a 4 month "Actively
at Work" requirement among other conditions, exclusions and limitations.
Can I upgrade my benefits or renew the coverage at the end of the one year
program?
Prior to the end of the first year, you may be given the voluntary option to renew at a
"contributory" rate, which may include the same benefit package or an enhanced
package. Renewal of the product is subject to insurance company and/or CARHAF
Mortgage Protection Program availability. Methods for payment and other terms and
conditions will be provided along with the renewal offer.
The descriptions above are intended to serve as a summary and are not part of the
insurance contracts. You should consult your own insurance policy or certificate for the
specific terms which apply to you.

Washington, DC – Today, Congresswoman Ellen Tauscher voted to approve H.R. 1106, Helping Families Save Their Homes Act, which could help hundreds of thousands of families stay in their homes.

Congresswoman Ellen Tauscher (Calif.) voted to approve legislation on Thursday to help families in danger of losing their homes.

A record 5.4 million homeowners were either behind on payments or in foreclosure at the end of last year and more than 8.3 million U.S. mortgage holders owed more on their loans in the fourth quarter than their property was worth, according to industry sources. California leads the nation in home foreclosures.

“I am pleased that the House approved the Helping Families Save Their Homes Act. This is one component of a very large effort to stabilize the housing market and limit the number of home foreclosures in California and across the country,” Rep. Ellen Tauscher said in a statement. “Accessible and sustainable loan modifications are essential to getting millions of families the tools they need to stay in their homes.”

Rep. Tauscher played a leading role in improving the bill, which is a key part of President Obama’s Making Home Affordable program, so that homeowners can first and foremost access a loan modification plan and, allowing homeowners in the most dire of circumstances, to seek relief through bankruptcy as a last resort.

In addition, Rep. Tauscher inserted language into the bill to prevent homeowners who can afford their loans from abusing the system by filing for bankruptcy just to capitalize on falling real estate prices.

The legislation passed with bipartisan support.

Support NAR’s Four-Point Housing Stimulus Plan

C.A.R. Urges You to Respond to NAR Call for Action!
Congress may soon consider a new economic stimulus bill. Housing has always lifted our economy out of past economic downturns so it is imperative that Congress focus on housing in the next stimulus package.

C.A.R. urges ALL members to support NAR’s efforts to have the NAR Four-Point Housing Stimulus Plan included in any future stimulus bill.

Contact Congress today and ask them to include NAR’s Four-Points in the next stimulus package.

You can directly access NAR’s Action Center and respond to the NAR Call-for-Action by clicking here. Details about NAR’s four point plan are included there as well.