Commercial Brokers Association

GAD REPORT for February 2016

 

Federal

 

It’s important to note that that over 50% of the Republican delegates will be allocated by March 16th, leaving very little time for Cruz or Rubio to change Trumps polls going tomorrow’s Super Tuesday. Ted Cruz in a press conference today stated, “The New York Times has a secret tape of Donald Trump saying that he does not truly believe what he is stating about illegal immigration.” Cruz’s attempt to create doubt on Trump’s ideology is to reinforce more conservative evangelicals to vote for a steadfast candidate such as himself. My estimates for tomorrow’s outcome show Trump adding an additional 208 to 258 delegates, closing Trump’s percentage needed to win the Republican Nomination to 24% to 27%.

 

 

Feb. 10, NAR 2016 Vice President Sherri Meadows testified before the House Veterans Affairs Subcommittee on Economic Opportunity at a hearing entitled, “A Review of VA’s Loan Guaranty and Specially Adaptive Housing Grant Programs (SAH).”  The testimony focused on long-term REALTOR® support for the VA home loan guaranty and the benefits it provides our nation’s veterans.  According to the 2015 NAR Homebuyer and Seller Survey, one in five buyers was a veteran or active duty service member.  NAR recommends all REALTORS® ask their clients if they have ever served, as this program provides zero-downpayment loans and favorable terms to eligible veterans.

 

In the testimony, Sherri asked for 3 enhancements to the program, to make it even more useful for veterans:  1) increase the loan limits for VA.  VA is not just another loan program – it’s an entitlement.  Veterans should not be prohibited from using their guaranty in high cost areas; 2) ease restrictions on what the veteran can pay in the mortgage transactions.  Veterans are often disadvantaged when bidding on a home, due to their inability to negotiate certain fees; and 3) incentivize lenders to offer an FHA 203k-type product for veterans. This type of loan includes the costs of rehabilitation and repairs, and could allow veterans better access to homes that need some work.

 

NAR also supported increasing efficiency in the specially-adapted housing (SAH) grant programs, and urged the Committee to make the VA loan as useful as possible for all our nation’s veterans, so it may be a real benefit to those who have so bravely served our country.
California State Pending Legislation

 

 

OPPOSED Commercial Specific Legislation:

 

SB 7 (Wolk D)   Housing: water meters: multiunit structures.
  Current Text: Amended: 9/4/2015   pdf   html
  Current Analysis:  09/04/2015 Assembly Floor Analysis  (text 9/4/2015)
  Introduced: 12/1/2014
  Last Amend: 9/4/2015
  Status: 1/1/2016-Set for Hearing.
  Location: 1/1/2016-A. UNFINISHED BUSINESS
  Calendar:  2/29/2016  #5  ASSEMBLY MOTION TO RECONSIDER

 

  Summary:  Existing law generally regulates the hiring of dwelling units and, among other things, imposes certain requirements on landlords and tenants. Among these requirements, existing law requires landlords to provide tenants with certain notices or disclosures pertaining to, among other things, pest control and gas meters. This bill would express the intent of the Legislature to encourage the conservation of water in multifamily residential rental buildings through means either within the landlord’s or the tenant’s control, and to ensure that the practices involving the submetering of dwelling units for water service are just and reasonable, and include appropriate safeguards for both tenants and landlords. This bill contains other related provisions and other existing laws.

 

SCA 5 (Hancock D)   Split Roll.
  Current Text: Amended: 7/16/2015   pdf   html
  Introduced: 3/26/2015
  Last Amend: 7/16/2015
  Status: 7/16/2015-From committee with author’s amendments. Read second time and amended. Re-referred to Com. on GOV. & F.
  Location: 7/16/2015-S. GOV. & F.

 

  Summary: The California Constitution provides that all property is taxable, unless exempted by the California Constitution or by federal law. The California Constitution authorizes the Legislature to classify personal property for differential taxation or for exemption by means of a statute approved by a 2/3 vote of the membership of each house. This measure would exempt from taxation for each taxpayer an amount up to $500,000 of tangible personal property used for business purposes. This measure would prohibit the Legislature from lowering this exemption amount or from changing its application, but would authorize it to be increased consistent with the authority described above. This measure would provide that this provision shall become operative on January 1, 2019. This bill contains other related provisions and other existing laws.

 

 

 

CAR SPONSORED:

 

AB 2760 (Mathis R)   Landlord and tenant: support animals.
  Current Text: Introduced: 2/19/2016   pdf   html
  Introduced: 2/19/2016
  Status: 2/22/2016-Read first time.
  Location: 2/19/2016-A. PRINT
  Summary: Existing law regulates the relationship between landlord and tenant and the terms and conditions of tenancies. This bill would authorize a tenant to maintain a support animal, as defined, on the property if specified conditions are met. This bill would authorize a tenancy to be terminated or a tenant to be denied accommodations on the property for having a support animal if specified conditions apply. This bill would authorize the landlord to require tenants with support animals to adhere to all standards that are imposed uniformly on all tenants and to include the payment of an extra charge or security deposit for maintaining a support animal on the property. This bill would prohibit a tenant from maintaining any protected species, venomous reptiles, amphibians or insects, or any other illegal species as a support animal. This bill contains other related provisions and other existing laws.

 

–       CAR Comments, “Under federal law, housing providers must make a “reasonable accommodation” for a tenant’s disability. “Reasonableness” of an accommodation is determined on a case-by-case basis and requires evidence of the disability that will be alleviated by the presence of an animal in order to waive a “no pets policy.” Unlike service animals, support animals are not individually trained to perform any specific task. Support animals are not afforded the same protections under the ADA or California state law, causing confusion for housing providers. This C.A.R.-sponsored bill, among other things, would permit a landlord to allow a tenant to maintain a support animal on the property provided: 1) the tenant has obtained a prescription validating the need for the support animal from a California-licensed mental health care professional that may be verified by the landlord, and 2) the tenant complies with all federal, state and local requirements (e.g., vaccination/sterilization requirements). A landlord may deny a tenant’s “reasonable accommodation” request for a support animal provided: 1) the support animal was brought on the property without notice to the landlord; 2) the support animal is not house broken; 3) the support animal creates a financial hardship on the landlord; 4) the support animal jeopardizes the availability of property insurance; or 5) the support animal poses a threat to other tenants or the property. AB 2760 was introduced in the Legislature this week.”

 

 

AB 2668 (Mullin D)   Property taxation: base year value transfers.
  Current Text: Introduced: 2/19/2016   pdf   html
  Introduced: 2/19/2016
  Status: 2/22/2016-Read first time.
  Location: 2/19/2016-A. PRINT
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary:  The California Constitution authorizes the Legislature to provide that a person who is either severely disabled or over 55 years of age may transfer the base year value, as defined, of property that is eligible for the homeowners’ property tax exemption to a replacement dwelling that is of equal or lesser value located within the same county as the property from which the base year value is transferred, provided the replacement dwelling is purchased or newly constructed within 2 years of the sale of the original property, subject to certain conditions. This bill would provide, commencing with the 2017-18 fiscal year, that the base year value of an original property may be transferred to a replacement dwelling that is of greater value, and would require the base year value of the replacement dwelling to be calculated by adding the difference between the full cash value of the original property and the full cash value of the replacement property to the base year value of the original property. This bill contains other related provisions and other existing laws.

 

–       CAR Comments, “Current law allows persons over the age of 55 to transfer the property tax base year value of their principle residence to a replacement home of equal or lesser value within the same county (Prop. 60) or another county if that county has opted into the program (Prop. 90). In 2015, C.A.R. sponsored SB 378 (Beall), which would have provided: 1) the base year value of a principle residence may be transferred to a replacement home of greater value; and 2) the base year value of the replacement home to be calculated by adding the difference between the full cash value of the principle residence and the full cash value of the replacement home to the base year value of the principle residence. SB 378 was held in the Senate Appropriations Committee. This C.A.R.-sponsored bill is a reintroduction of SB 378. AB 2668 was introduced in the Legislature this week.”

 

 

 

AB 2330 (Ridley-Thomas D)   Real estate licensees.
  Current Text: Introduced: 2/18/2016   pdf   html
  Introduced: 2/18/2016
  Status: 2/19/2016-From printer. May be heard in committee March 20.
  Location: 2/18/2016-A. PRINT
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary: The Real Estate Law provides for the licensure and regulation of real estate brokers and real estate salespersons by the Bureau of Real Estate headed by the Real Estate Commissioner. Existing law requires the commissioner to provide on the Internet specific information regarding the status of every license issued by the department. This bill would require that information to include whether a licensee is an associate licensee and, if the associate licensee is a broker, to identify each responsible broker with whom the licensee is contractually associated.

–       CAR Comments, “While the terms “Broker” and “Real Estate Salesperson” have been defined in statute, “Broker Associate” is a term of art used in practice but not currently defined in law. This C.A.R.-sponsored bill would statutorily define “Broker Associates,” and require “Broker Associates” to be searchable in the California Bureau of Real Estate’s database. AB 2330 was introduced in the Legislature this week.”

 

AB 2476 (Daly D)   Local governments: parcel taxes: notice.
  Current Text: Introduced: 2/19/2016   pdf   html
  Introduced: 2/19/2016
  Status: 2/22/2016-Read first time.
  Location: 2/19/2016-A. PRINT
   

Summary: Existing law authorizes cities, counties, and special districts to impose a parcel tax or property-related fee for specified purposes. This bill would require, before the adoption of any new parcel tax, the legislative body of a local agency, as defined, to provide notice of the vote to enact the proposed parcel tax to the owner of each parcel affected by the tax within one week of the local agency voting to place the proposed parcel tax on the ballot. This bill would require the notice to include specified information and to be provided to the property owner in a specified manner. This bill would provide that the local agency may recover the reasonable costs of the notice from the proceeds of the parcel tax. By imposing new duties upon local county officials, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws.

 

CAR Comments, “Under current law, resident property owners receive notice of proposed parcel taxes with receipt of their ballot pamphlet while non-resident property owners do not receive any notice whatsoever. In 2015, C.A.R. sponsored AB 237 (Daly), which would have required a city, county or special district (e.g., hospital districts) to provide notice to ALL property owners, including non-resident property owners, within seven days of the vote, by the district’s governing board, to place a proposed parcel tax on the ballot. AB 237 was held in the Assembly Appropriations Committee. This C.A.R.-sponsored bill expands upon AB 237 by providing a low-cost postcard option for notifying property owners. AB 2476 was introduced in the Legislature this week.

 

 

 

 

General Bills of Interest

 

 

 

AB 1556

(Mathis R)   Property taxation: exemptions: disabled veterans.
  Current Text: Amended: 2/25/2016   pdf   html
  Introduced: 1/4/2016
  Last Amend: 2/25/2016
  Status: 2/25/2016-From committee chair, with author’s amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.
  Location: 2/25/2016-A. REV. & TAX
  Calendar:  3/14/2016  3 p.m. – State Capitol, Room 126  ASSEMBLY REVENUE AND TAXATION, TING, Chair

 

  Summary: Existing property tax law provides, pursuant to the authorization of the California Constitution, a disabled veterans’ property tax exemption for the principal place of residence of a veteran or a veteran’s spouse, including an unmarried surviving spouse, if the veteran, because of injury incurred in military service, is blind in both eyes, has lost the use of 2 or more limbs, or is totally disabled, as those terms are defined, or if the veteran has, as a result of a service-connected injury or disease, died while on active duty in military service. Existing law exempts that part of the full value of the residence that does not exceed $100,000, or $150,000, if the veteran’s household income does not exceed $40,000, adjusted for inflation, as specified. This bill would instead exempt the full value of the principal place of residence of a veteran or veteran’s spouse. The bill would also define the term “blind in both eyes” to mean that the veteran is a blind person, as defined in a specific statute. The bill would also specify that a “totally disabled” veteran includes a veteran so severely disabled as to be unable to move without the aid of an assistive device. The bill would make other technical and conforming changes to the disabled veterans’ property tax exemption. This bill contains other related provisions and other existing laws.
   
 
AB 1645 (Dababneh D)   Mortgage guaranty insurance.
  Current Text: Introduced: 1/12/2016   pdf   html
  Introduced: 1/12/2016
  Status: 2/4/2016-Referred to Com. on INS.
  Location: 2/4/2016-A. INS.
  Summary: Existing law, beginning January 1, 2018, requires, among other things, that a mortgage guaranty insurer limit its coverage to no more than a net of 30% at risk of the entire indebtedness to the insured for the class of insurance that insures against financial loss by reason of nonpayment of principal, interest, and other sums under any evidence of indebtedness secured by a mortgage, deed of trust, or other instrument constituting a first lien or charge on a residential building or a condominium unit or buildings designed for occupancy by not more than 4 families. Existing law, beginning January 1, 2018, also authorizes a mortgage guaranty insurer to extend its coverage for this class of insurance beyond the established limits if the excess is insured by a contract of reinsurance. This bill would delete the above provisions.
   
 
AB 1750 (Dodd D)   Real property transactions: definitions.
  Current Text: Introduced: 2/2/2016   pdf   html
  Introduced: 2/2/2016
  Status: 2/18/2016-Referred to Com. on JUD.
  Location: 2/18/2016-A. JUD.
  Calendar:  3/8/2016  9 a.m. – State Capitol, Room 4202  ASSEMBLY JUDICIARY, MARK STONE, Chair

 

  Summary:  Existing law defines various terms for the purposes of some, but not all, provisions relating to the duty owed to the prospective purchaser in transactions of commercial and residential real estate, including, but not limited to, the terms “agent,” “buyer,” “re al property,” “sell,” “sale,” “sold,” and “seller.” This bill would specify that those definitions also apply to the remaining provisions relating to the duty owed to the prospective purchaser.
   
 
AB 1804 (Melendez R)   Land use: development fees.
  Current Text: Introduced: 2/8/2016   pdf   html
  Introduced: 2/8/2016
  Status: 2/9/2016-From printer. May be heard in committee March 10.
  Location: 2/8/2016-A. PRINT
  Summary: The Mitigation Fee Act requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. This bill would make nonsubstantive changes to that provision.
   
 
AB 2031 (Bonta D)   Local government: affordable housing: financing.
  Current Text: Introduced: 2/16/2016   pdf   html
  Introduced: 2/16/2016
  Status: 2/17/2016-From printer. May be heard in committee March 18.
  Location: 2/16/2016-A. PRINT
  Summary: Existing law establishes various programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, veteran housing, home ownership for very low and low-income households, and down payments for first-time homebuyers. Additionally, the Housing Authorities Law establishes public corporations known as housing authorities within each city and county in this state, and authorizes these housing authorities to undertake various actions for the purpose of increasing the availability of housing. This bill would state the intent of the Legislature to enact legislation that would allow local governments to provide additional funding for affordable housing.
   
 
AB 2280 (Ridley-Thomas D)   California Housing Finance Agency: program eligibility requirements: changes.
  Current Text: Introduced: 2/18/2016   pdf   html
  Introduced: 2/18/2016
  Status: 2/19/2016-From printer. May be heard in committee March 20.
  Location: 2/18/2016-A. PRINT
  Summary:  Existing law creates the California Housing Finance Agency, which is administered by a board of directors and which is supervised on a day-to-day basis by an executive director. Existing law provides that the primary purpose of the agency is to meet the housing needs of persons and families of low to moderate income. Existing law authorizes the agency to make loans to housing sponsors for housing developments and to qualified mortgage lenders, among others. This bill would generally prohibit the agency from changing the eligibility requirements for a housing or lending program that the agency administrates without providing a lender or other party participating in the program notice of the change at least 5 business days prior to the change taking effect. The bill would require the notice to be provided by a program bulletin and that the program bulletin be posted on the agency’s Internet Web site. The bill would permit the agency to make a change in eligibility requirements without satisfying the notification requirements upon a specified finding of the agency’s executive director or a vote of the board of directors. The bill would require the agency to require a lender or other party participating in these programs to have protocols that provide timely notification to representatives of the participants of changes to program eligibility requirements.
   
 
AB 2281 (Calderon D)   Housing assistance.
  Current Text: Introduced: 2/18/2016   pdf   html
  Introduced: 2/18/2016
  Status: 2/19/2016-From printer. May be heard in committee March 20.
  Location: 2/18/2016-A. PRINT
  Summary:  Existing law requires the California Housing Finance Agency to administer the California Homebuyer’s Downpayment Assistance Program for the purpose of assisting first-time low- and moderate-income home buyers utilizing existing mortgage financing. This bill would state the intent of the Legislature to enact legislation that would provide sellers of homes incentives to sell to families who intend to use the homes as their residences, in order to help California families compete in the residential real estate market. The bill would also state the intent of the Legislature to enact legislation that would streamline the residential home buying purchases of people who are first-time home buyers and those who use conventional mortgages.
   
 
AB 2669 (Campos D)   Property taxation: welfare exemption.
  Current Text: Introduced: 2/19/2016   pdf   html
  Introduced: 2/19/2016
  Status: 2/22/2016-Read first time.
  Location: 2/19/2016-A. PRINT
  Summary: Existing property tax law, in accordance with the California Constitution, provides for a “welfare exemption” for property used exclusively for religious, hospital, scientific, or charitable purposes and that is owned or operated by certain types of nonprofit entities, if certain qualifying criteria are met. This bill would make nonsubstantive changes to this provision.
   
 
AB 2734 (Atkins D)   Local Control Affordable Housing Act.
  Current Text: Introduced: 2/19/2016   pdf   html
  Introduced: 2/19/2016
  Status: 2/22/2016-Read first time.
  Location: 2/19/2016-A. PRINT
  Summary: Existing law, effective February 1, 2012, dissolved all redevelopment agencies and community development agencies and provides for the designation of successor agencies, as specified. Existing law requires successor agencies to service the enforceable obligations of the dissolved agencies and otherwise wind down the affairs of the dissolved agencies. This bill would establish the Local Control Affordable Housing Act to require the Department of Finance, on or before ____ and on or before the same date each year thereafter, to determine the state General Fund savings for the fiscal year as a result of the dissolution of redevelopment agencies. The bill would provide that, upon appropriation, 50% of that amount be allocated to the Department of Housing and Community Development to provide funding to local agencies for housing purposes. The bill would require the Department of Housing and Community Development to create an equitable funding formula, which shall be geographically balanced and shall take into account factors of need including, but not limited to, poverty rates and lack of supply of affordable housing for persons of low and moderate incomes in local jurisdictions. The bill would also specify the housing purposes for which those funds may be used.
   
   
 
ABX1 5 (Hernández, Roger D)   Income taxes: credits: low-income housing: farmworker housing assistance.
  Current Text: Introduced: 7/16/2015   pdf   html
  Introduced: 7/16/2015
  Status: 7/17/2015-From printer.
  Location: 7/16/2015-A. PRINT
  Summary: Existing law establishes a low-income housing tax credit program pursuant to which the California Tax Credit Allocation Committee provides procedures and requirements for the allocation of state insurance, personal income, and corporation income tax credit amounts among low-income housing projects based on federal law. Existing law allows the credit for buildings located in designated difficult development areas or qualified census tracts that are restricted to having 50% of its occupants be special needs households, as defined, even if the taxpayer receives specified federal credits, if the credit allowed under this section does not exceed 30% of the eligible basis of that building. Existing law limits the total annual amount of the credit that the committee may allocate to $70 million per year and allows $500,000 per year of that amount to be allocated for projects to provide farmworker housing, as specified. Existing law defines farmworker housing to mean housing for agricultural workers that is available to, and occupied by, only farmworkers and their households. This bill, under the insurance taxation law, the Personal Income Tax Law, and the Corporation Tax Law, would modify the definition of applicable percentage relating to qualified low-income buildings that are farmworker housing projects, as provided. The bill would authorize the California Tax Credit Allocation Committee to allocate that credit even if the taxpayer receives specified federal and state credits or only state credits. The bill would increase the amount the committee may allocate to farmworker housing projects from $500,000 to $25,000,000 per year. The bill would also redefine farmworker housing to mean housing for agricultural workers that is available to, and occupied by, not less than 50% of farmworkers and their households. This bill contains other related provisions.
   
   
   
 
SB 580 (Liu D)   Surplus residential property: affordable housing: historic buildings.
  Current Text: Amended: 9/4/2015   pdf   html
  Current Analysis:  09/09/2015 Senate Floor Analyses  (text 9/4/2015)
  Introduced: 2/26/2015
  Last Amend: 9/4/2015
  Status: 1/28/2016-In Assembly. Held at Desk.
  Location: 1/28/2016-A. DESK
  Summary:  Existing law declares the intent of the Legislature to preserve, upgrade, and expand the supply of housing to persons and families of low or moderate income, through the sale of specified surplus residential property owned by public agencies. Existing law establishes priorities and procedures that any state agency disposing of that surplus residential property is required to follow. Under existing law, specified single-family residences must first be offered to their former owners or present occupants, as specified. If the property is not sold to a former owner or present occupant, existing law requires that the property be offered to a housing-related private or public entity at a reasonable price for either limited equity cooperative housing or low and moderate income rental or owner-occupied housing, as specified. This bill would authorize a local housing authority to purchase and rehabilitate surplus residential property within Pasadena, South Pasadena, Alhambra, La Cañada Flintridge, and the 90032 postal ZIP code. The local housing authority would be required to dedicate any profits realized from a subsequent sale to the construction of affordable housing. The bill would also require that, prior to offering the property to a housing-related private or public entity as specified above, that property that is a historic home, as defined, be first offered to a housing-related public entity or a nonprofit private entity dedicated to rehabilitating and maintaining the historic home for public and community access and use. This bill contains other related provisions and other existing laws.
   
 
SB 710 (Galgiani D)   Real estate licensees: fictitious business names: team names.
  Current Text: Amended: 2/9/2016   pdf   html
  Current Analysis:  06/30/2015 Assembly Local Government  (text 6/23/2015)
  Introduced: 2/27/2015
  Last Amend: 2/9/2016
  Status: 2/9/2016-From committee with author’s amendments. Read second time and amended. Re-referred to Com. on L. GOV.
  Location: 2/9/2016-A. L. GOV.
  Summary: The Real Estate Law provides for the licensure and regulation of real estate brokers and real estate salespersons by the Bureau of Real Estate headed by the Real Estate Commissioner. That law requires advertising and solicitation materials using a fictitious business name or that contain a team name to display the responsible broker’s identity, as provided. Existing law defines “responsible broker’s identity” to mean a name and the associated license identification number under which the responsible broker is currently licensed and conducts business in general or is a substantial division of the real estate firm, as specified. This bill would revise the definition of “responsible broker’s identity” to mean the name, the associated license identification number, or both the name and associated license identification number. This bill contains other related provisions.
   
 
SB 736 (Vidak R)   Escrow agents.
  Current Text: Amended: 5/5/2015   pdf   html
  Current Analysis:  07/13/2015 Assembly Appropriations  (text 5/5/2015)
  Introduced: 2/27/2015
  Last Amend: 5/5/2015
  Status: 8/27/2015-August 27 hearing: Held in committee and under submission.
  Location: 8/27/2015-A. APPR.
  Summary: The Escrow Law requires the licensing of escrow agents by the Commissioner of Business Oversight, and further requires licensees to participate as members of the Escrow Agents’ Fidelity Corporation, a nonprofit corporation established to pay members for loss of trust fund obligations, as specified. The law requires a licensed escrow agent to maintain a bond based on the previous year’s average annual trust fund obligations, as specified. This bill would make findings and declarations regarding the role of Fidelity Corporation to support and enhance trust in licensed escrow agents, and specify that Fidelity Corporation is required to indemnify a member escrow agent against loss in accordance with the Escrow Law. The bill would state the intent of the Legislature for the commissioner to utilize the services of private 3rd parties, with prior escrow or escrow conservation, liquidation, or receivership experience, who are independent of the department to perform conservation, liquidation, and receiver functions, and would require the full amount of any penalty revenue, up to $125,000 at any one time, as specified, to be available for use by the commissioner to compensate an appointed conservator, liquidator, or receiver. The bill would also authorize the commissioner to utilize all or a portion of the bond or other required obligations, and all or a portion of a licensee’s assets remaining following conservation, liquidation, or receivership to compensate an appointed conservator, liquidator, or receiver. By making this penalty revenue and other revenue available to the commissioner in this regard, this bill would make an appropriation.
   
 
SB 873 (Beall D)   Income taxes: insurance taxes: credits: low-income housing: sale of credit.
  Current Text: Introduced: 1/14/2016   pdf   html
  Introduced: 1/14/2016
  Status: 2/24/2016-Set for hearing March 16.
  Location: 1/28/2016-S. GOV. & F.
  Calendar:  3/16/2016  9:30 a.m. – Room 112  SENATE GOVERNANCE AND FINANCE, HERTZBERG, Chair

 

  Summary: Existing law establishes a low-income housing tax credit program pursuant to which the California Tax Credit Allocation Committee provides procedures and requirements for the allocation of state insurance, income, and corporation tax credit amounts among low-income housing projects based on federal law. This bill, beginning on or after January 1, 2016, would allow a taxpayer that is allowed a low-income housing tax credit to elect to sell all or a portion of that credit to one or more unrelated parties, as described, for each taxable year in which the credit is allowed for not less than 80% of the amount of the credit to be sold, and would provide for the one-time resale of that credit, as provided. The bill would require the California Tax Credit Allocation Committee to enter into an agreement with the Franchise Tax Board to pay any costs incurred by the Franchise Tax Board in administering these provisions. This bill contains other related provisions and other existing laws.
   
 
SB 983 (Morrell R)   Mortgages and deeds of trust.
  Current Text: Introduced: 2/10/2016   pdf   html
  Introduced: 2/10/2016
  Status: 2/18/2016-Referred to Coms. on JUD. and RLS.
  Location: 2/18/2016-S. JUD.
  Summary: Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law, with respect to residential real property containing up to 4 dwelling units, requires a mortgagee, trustee, beneficiary, or authorized agent to provide to the mortgagor or trustor a copy of the recorded notice of default and a copy of the recorded notice of sale. This bill would instead require the mortgagee, trustee, beneficiary, or authorized agent to provide the mortgagor or trustor with a copy of the notice of default indicating the recording date and a copy of the notice of sale indicating the recording date. This bill contains other related provisions and other existing laws.
   
 
SB 996 (Hill D)   Property taxation: welfare exemption.
  Current Text: Introduced: 2/10/2016   pdf   html
  Introduced: 2/10/2016
  Status: 2/24/2016-Set for hearing March 16.
  Location: 2/18/2016-S. GOV. & F.
  Calendar:  3/16/2016  9:30 a.m. – Room 112  SENATE GOVERNANCE AND FINANCE, HERTZBERG, Chair

 

  Summary: The California Constitution authorizes the Legislature to exempt from taxation property that is used exclusively for religious, hospital, or charitable purposes, and is owned or held in trust by a nonprofit entity. Pursuant to this constitutional authority, existing law partially exempts from property taxation property used exclusively for rental housing and related facilities, if specified criteria are met, including, except in the case of a limited partnership in which the managing general partner is a nonprofit corporation eligible for the exemption, that 90% or more of the occupants of the property are lower income households whose rents do not exceed the rent limits prescribed by a specified law. Existing law limits the total exemption amount allowed to a taxpayer, with respect to a single property or multiple properties for any fiscal year on the sole basis of the application of this criterion, to $20,000 of tax. This bill would increase that total exemption amount allowed to $100,000 of tax, with respect to lien dates occurring on and after January 1, 2017. This bill contains other related provisions and other existing laws.
   
 
SB 1150 (Leno D)   Mortgages and deeds of trust: mortgage servicers and lenders: successors in interest.
  Current Text: Introduced: 2/18/2016   pdf   html
  Introduced: 2/18/2016
  Status: 2/19/2016-From printer. May be acted upon on or after March 20.
  Location: 2/18/2016-S. PRINT
  Summary: Existing law imposes various requirements to be satisfied prior to exercising a power of sale under a mortgage or deed of trust. Existing law defines a mortgage servicer as a person or entity who directly services a loan, or is responsible for interacting with the borrower, and managing the loan account on a daily basis, as specified. This bill would prohibit a mortgage servicer or lender, as defined, upon notification that a borrower has died, from recording a notice of default for at least 30 days after requesting reasonable documentation of the death of the borrower from the successor in interest, as defined. The bill would require the mortgage servicer or lender to, among other things, contact the successor in interest in person or by telephone in order to assess the successor’s financial situation and explore options for the successor to avoid foreclosure, provide the successor in interest with information about loan assumption options and foreclosure avoidance programs, and allow a successor in interest to simultaneously apply to assume the deceased borrower’s loan and to apply to receive a loan modification. The bill would authorize a successor in interest or the Attorney General to bring an action to enforce these provisions, as provided.
   
 
SB 1253 (Moorlach R)   Real estate brokers: limited liability companies.
  Current Text: Introduced: 2/18/2016   pdf   html
  Introduced: 2/18/2016
  Status: 2/19/2016-From printer. May be acted upon on or after March 20.
  Location: 2/18/2016-S. PRINT
  Summary: Existing law, the California Revised Uniform Limited Liability Company Act, authorizes a limited liability company to have any lawful purpose, except as specified. A limited liability company is an entity distinct from its members. Existing law authorizes a limited liability company to render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code, the Chiropractic Act, the Osteopathic Act, or the Yacht and Ship Brokers Act, if those provisions authorize a limited liability company to hold that license, certificate, or registration. Existing law prohibits the act from being construed to permit a limited liability company to render professional services, as defined. Under existing law, a limited liability company is a member-managed limited liability company unless the articles of organization. Under existing law, the operating agreement governs, among other things, relations among the members as members and between the members and the limited liability company and the activities of the limited liability company. Existing law authorizes a written operating agreement to provide for the appointment of officers. This bill would authorize a limited liability company to be licensed as a real estate broker. When a real estate license is issued to a limited liability company that desires any of its members, managers, or officers other than the designated member, manager, or officer to act under its license as a real estate broker, the bill would require the limited liability company to obtain an additional license to employ each additional member, manager, or officer. The bill would provide that each member, manager, or officer of a limited liability company through whom the company is licensed to act as a real estate broker is, while employed under license, a licensed real estate broker, but licensed only to act as such for and on behalf of the limited liability company as a member, manager, or officer. The bill would make various other conforming changes in this regard. This bill contains other related provisions and other existing laws.
   

 

Local

 

ABAG or the Association of Bay Area Governments, along with San Mateo County’s 21 Elements Nexus Study, is pushing forward convincing local city halls to pass commercial linkage fee’s. Cities included in the 21 Elements Nexus study include: Atherton, Belmont, Brisbane, Burlingame, Colma, Daly City, East Palo Alto, Forster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos San Mateo City, South San Francisco, and Woodside. Some Cities have already implemented stiff Commercial Linkage Fee’s (CLF) up to $25.00, other cities have chosen to not implement a CLF.

 

On February 23rd Mountain View City Council Members Implemented CLF’s up to $34.00 per sq. ft. Office/ R&D $34.00 per sq. ft. , Retail total $0.80 per sq. ft., and Hotels $4,636 per room.

 

You can read the 21 Elements Nexus Study Here.