Check out this month's DRE Bulletin and gain awareness of the DRE's priorities this quarter.  Below are highlights. Download the PDF for the full update. Take a look at the California DRE Spring Bulletin here

• Update from Commissioner Douglas McCauley:  DRE prioritizes equity, fraud, and consumer communication campaign to assist first-time buyers. It also emphasizes how to select an agent and understand mortgages.  
• Download the 2023 DRE Real Estate Law Book.
• Living in a Common Interest Development.
• Helping your client understand an architect's role.
• Broker Supervision: What is the broker's role?  Broker's obligation to supervise, assign supervisory authority, broker supervision in advertising, and ensure license requirements are met.
• Updated Rules for Discrimination as a Basis for Discipline.
• A look inside DRE’s complaint process: Filing a complaint, Complaint review, Formal investigation, and Clear and Convincing Evidence. 
• PG&E warns of an emerging scam initiative
• The important role of Enforcement in regulating California’s Real Estate industry
• Los Angeles County launches Property Owner e-Notification Alert (San Diego Launched Owner Alert last year).

Douglas R. McCauley

Real Estate Commissioner
Department of Real Estate

What are live buyer tours?
If you use Cloud CMA, then you’re likely already familiar with buyer tours, the reports that build on MLS data to give your buyer clients a better sense of what they’re looking at. In fact, buyer tours have become one of the most popular types of reports in Cloud CMA overall! 

Live buyer tours build on the existing functionality to turn static reports into dynamic ones—with real-time data that you and your buyers can easily read on any device. So you get a new way to show off properties, and your clients get live access to the most relevant information about their favorite listings. 

What can your clients see with live buyer tours? 

Their list of showings, organized by time 
Details like drive time and directions 
Feedback fields that share directly with their agent 
And more! 
 

Why the change? 
Home shopping and touring habits aren’t what they used to be.  Now, people have pocket computers with them constantly, so they can browse listings, request showings, get directions, whatever they need to do—all from the palm of their hands. 

Paper tours are outdated.  With live buyer tours, your clients have the technology on hand to interact with you and tour property more seamlessly. It’s a subtle contributor to their overall experience; they’ll appreciate the convenience and thoroughness of the information you provide. 

 
Here is how it works.

Many owners who want to move within California can now transfer their lower property tax base from one property to another, anywhere in the state, The tax base transfer can save owners tens of thousands of dollars or more in taxes. 

Under Proposition 13, a home is normally appraised at its full market value at the time it is purchased. This program allows the taxable value on the original home to be transferred to the replacement home thereby preventing an increase in property tax.

The program befits owners who meet the qualifications listed here.

Homeowners Age 55+ If you're a senior, retiree, or older homeowner who feels trapped in a home that no longer fits your needs.

People With Severe Disabilities  If you live with a severe or permanent disability.

Victims of Wildfire & Natural Disasters
If you are one of the tens of thousands of Californians whose family home has been destroyed or substantially damaged by wildfire.

The new law called Proposition 19 makes it easier for you to move to another home without incurring a property tax hike.* 

Explainer Video Prepared by San Diego Chief Deputy Assessor, Jordan Marks,
and produced by the PSAR.

See the California Board of Equalization Prop 19 information page for additional details about filing checklists, guidelines, rulemaking, frequently asked questions, related legislation, deadlines, forms requirements, types of relief, intergenerational transfer exclusions, additional resources, and general property tax information.

Filing forms for Seniors and the Disabled may be found here. See the tabs "Forms"

* Always check with your tax professional to verify your particular situation prior to making financial decisions.

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PSAR's mission is to empower real estate professionals.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth & development of the Real Estate industry in San Diego County.

Members of the Pacific Southwest Association of REALTORS^® (PSAR) made a powerful statement for property rights on behalf of housing providers while attending a recent Chula Vista City Council meeting where the subject of a new rent control ordinance was on the docket.

The City Council was considering an aggressive and overreaching ordinance that imposes additional regulations on housing providers. The controversial proposal, if passed, would negatively impact new housing creation by tightening restrictions on remodeling, owner move-ins and rental unit withdrawals, as well as expanding noticing and relocation assistance requirements.

Following over five hours of public comments, including testimony from many PSAR members, the City Council tabled a vote on the proposed ordinance, titled the “Residential Landlord and Tenant Provisions.” The Council stated that more data on the topic and potential language revisions are needed.

The actions taken by PSAR members were considered invaluable in the successful effort to prevent the Council from implementing an ordinance that would exacerbate the housing crisis. A revised version of the ordinance is expected to be considered by the City Council at a July 12 session.

Among the PSAR members who spoke at the May 17 city council meeting: Pat Russiano, Mike Campbell, Mark Scott, Nikki Coppa, Rich D'Ascoli, Yvonne Cromer, Robert Cromer, Mitch Thompson, George Ching, Eric Sutton, Peter Carlseen, Sam Calvano, Lupe Soto, Earl Jentz, Myllissa McCann and Josh Morales.

Richard D’Ascoli, PSAR CEO, stated in his testimony, “Most housing providers and owners are good people and most renters are good people. This extreme ordinance will punish every homeowner who may want to rent out a home and every renter who can’t find a place to rent.”

D’Ascoli cited a city staff report that included information from the Legal Aid Society of San Diego. According to the data, “no-fault” eviction disputes involve fewer than .27 percent of the 33,000 rental homes in Chula Vista annually, pointing to a much smaller issue.

The number of evictions totaled 13 in March, three in February, and seven in January. “Shouldn’t we help those 13 households rather than impact 33,000 rental units?” D’Ascoli asked. “Most housing providers are good actors, it’s the few we need to address. Let’s focus on them and not punish the entire city.”

D’Ascoli identified the long-term ramifications of the proposed ordinance: “Rent control and similar market restrictions will discourage the creation, maintenance, and upgrade of rental housing stock. This ordinance will discourage additional rehab and negatively impact the low-income renters the provisions were intended to serve. This ordinance also will reduce the value of properties in Chula Vista, compared to similar properties in other cities. Prudent property owners will choose to buy or build in areas with less cost and regulatory risk.

“Chula Vista will stagnate as the incentive to replacing aging, smaller complexes with upgraded, more dense buildings will no longer exist. Owners of single-family rental homes will either sell to national real estate investment trusts or they will sell to new owner-occupants. Available rental stock will decrease. Prices for renters will increase because supply will continue to be highly restricted. Also worrisome is the provision that anyone who violates any part of this law could be charged with a crime and sent to jail for up to six months.”

Other speakers from PSAR made the following points:

-- Burdensome regulations will result in less available housing, not more. This ordinance adds to the regulatory burden.
-- Provisions in the ordinance meant to prevent harassment of tenants would deter property owners from dealing with nuisance tenants.
-- Added renovation regulations would deter owners from upgrading rental properties, thus hurting tenants and surrounding neighborhoods.
-- The ordinance would create new, vague “anti-harassment” rules regulating landlord-tenant interaction, expanded notification requirements of up to 365 days, and higher relocation payments.
-- Landlords would be required to offer evicted renters, even if those renters caused property damage, the first right of refusal to move back in after a renovation.
-- The state of California recently enacted protections for tenants with AB 1482. That law provides sufficient regulation of landlord-tenant relationships.

Coalition partners with PSAR on the proposed Chula Vista ordinance included the Southern California Rental Housing Association (SCRHA) and the San Diego Association of REALTORS® (SDAR).

More Articles and News Coverage

Renters, Landlords at Odds Over Proposed No-Fault Eviction Proposal - Mitch Thompson shows new appliances as part of remodeling efforts. KPBS-TV, 05/17/2022.

Chula Vista City Council Postpones Eviction Moratorium Protection Vote - No decision after more than five hours of public comments and postponement until July 12. KPBS-TV, 05/18/2022.

Chula Vista City Council Considers Controversial Tenant Protection Ordinance - PSAR board member Jason Lopez explains the proposal is a solution looking for a problem. KUSI-TV, 05/18/2022.

Chula Vista Considers Ordinance Strengthening Protections for Tenants - PSAR 2022 President Max Zaker and PSAR member Mitch Thompson tell NBC 7 how the proposal would actually hurt tenants. KNSD-TV NBC 7 San Diego, 05/16/2022.

Chula Vista Council Hears from Over 50 Speakers - The meeting lasted for hours as landlords say the proposed ordinance would force them to sell their properties. KGTV-TV 10News, 05/17/2022.

Decision Postponed on Controversial Renters' Protections - Quote from PSAR CEO Rich D'Ascoli: "...An ordinance that is overreaching..." KFMB-TV, CBS8, 05/18/2022.

There is a critical shortage of housing inventory. An excessive amount of red tape helped cause that shortage. Now, the City of Chula Vista is considering additional regulations on Housing Providers.

The proposed "Residential Landlord and Tenant Provisions" will impose the following:

• Regulations that make substantial remodels, owner move-ins, and withdrawal from the rental market more difficult by adding stricter noticing requirements and relocation assistance requirements.
• The creation of laws that allows for civil action and damages of $1,000-5,000 per violation per day.
• The criminalization of any violation of the ordinance and the creation of fines in the thousands of dollars.

Mayor Mary Salas requested the creation of this ordinance in response to calls from tenant and rent control advocates. Unfortunately, the unintended consequences of this ordinance would end up harming tenants as well.

The unintended consequences of this ordinance will include the following:

• The added difficulties of being a housing provider in Chula Vista will discourage the creation of much needed additional housing. This will hurt all of us, including those who would have a much harder time finding a place to rent. 
• The added difficulties of undertaking substantial renovations would deter owners from upgrading unsightly buildings. This hurts the tenants who would live there and the livability of the surrounding communities. 
• Provisions in the ordinance meant to prevent harassment of tenants would actually deter property owners from dealing with tenants who cause nuisances. This would hurt the tenants and all neighbors who live nearby and would have to deal with the nuisances.

It is well established that when you add regulation to something, you get less of it. We need more housing, not less. The State of California has recently enacted protections for tenants by enacting AB 1482. If there are problems for tenants, the City could focus on finding better ways to enforce existing laws, rather than adding more regulations that will negatively impact our already scarce housing supply.

Please send an eComment to the City stating your opposition to this misguided ordinance by clicking on the button below, and then clicking on the "Leave Comment" button:

_______________________________________________________________________________

Not sure which Councilmember represents your neighborhood?  See below.

Questions remain about the City of San Diego’s pending ‘No-Fault Eviction' Moratorium.

On April 4th, after almost six hours of public testimony which included comments from PSAR volunteers and members, the city council passed the ‘No-Fault Eviction' Moratorium ordinance. The ordinance must come back for a second reading a month after the first reading and will go into effect 30 days after final approval.

Thanks to the efforts of PSAR and our colleagues, the original ordinance was amended to include an end date or sunset on September 30, 2022 (or 60 days after the end of the local emergency) whichever is sooner.  Realtors are wondering about how this ordinance will impact property owners who want to sell.

• No termination of tenancy is allowed for a substantial remodel unless mandated by the government or court order.
• Owners who wish to move into their homes or move in family members will have to serve a 90-day notice to terminate the tenancy. An immediate family member is limited to a parent, child, grandparent, and grandchild.

Property owners who wish to terminate a tenancy in order to withdraw units from the rental market, this includes selling a home, must provide a 6-month notice.

The ordinance is likely to receive final approval next month and it will cause unintended consequences. Additionally, some of the language is vague and confusing. Once the ordinance is finalized, PSAR will schedule legal counsel to brief our members on its impact. PSAR will continue to review the ordinance and is prepared to challenge it again at the second reading.

Before working with a client to terminate a tenancy, it is important to speak with your broker and legal counsel. This ordinance will put many owners in difficult positions.

A copy of the proposed ordinance may be found here.

This web page item #200 has links to the PowerPoint and backup information for a deeper dive.

The Board of Supervisors will meet on Wednesday, February 9th at 9 am to discuss the implementation of a Vehicle Miles Traveled (VMT) Policy which could end hopes that San Diego will meet the housing needs of its residents.  

Please urge the Board of Supervisors to keep housing a top priority in San Diego County.  

You can submit written comments by clicking here: submit comments.

This proposal is item 7 on the Agenda, if you would be willing to testify on this, you can sign up here:  Sign up to speak

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Recently, PSAR sent a three-page letter to the San Diego County Board of Supervisors expressing our opposition to the Vehicle Miles Traveled (VMT) proposal.  See a copy of the letter by following this link.

VMT is a proposal that would slap new fees on housing development in car-centric communities. The fees would be calculated based on the additional “vehicle miles traveled.” Housing developments in rural or suburban areas would face fees that would disincentivize their construction.  Any homes that do get built would need to factor in those additional fees, pushing the dream of homeownership further beyond the reach of most aspiring buyers.  

Under the proposed VMT, to get approval for a project, a housing developer would have to show that their project would generate fewer vehicle miles traveled than the area’s average. 

PSAR’s letter to the Board of Supervisors states: “Homeownership is the bedrock of building strong communities and intergenerational wealth. REALTORS® know firsthand that buyers are moving to Riverside, Imperial Valley, and Mexico to own a property and build a future. They subsequently commute for hours on San Diego freeways, defeating the intent of the VMT policies.

“There are numerous economic and regulatory barriers that discourage developers from building both attached and detached “for-purchase” housing for all levels of income. If the County is forced to adopt a Vehicle Miles Traveled (VMT) planning tool that is being considered with a regional planning focus, the cost of new housing in the unincorporated portions of our region will be increased significantly, adding to the current housing shortfall.

“This policy will severely restrict future generations from realizing the dream of homeownership and a better quality of life for themselves and generations to come.”

The letter also states that PSAR is supporting six recommendations from the Building Industry Association (BIA) of San Diego County. BIA’s recommendations include an Infill Area Option, VMT Mitigation Program Options, and a programmatic Environmental Impact Report (EIR) to analyze VMT impacts.

PSAR is opposing VMT implementation because of the potential impacts on historically disadvantaged communities who would find it harder to realize the dream of homeownership.

PSAR’s letter states: “Homeownership is an essential steppingstone for families to build wealth. By adding requirements that will make homeownership opportunities more expensive for working families to purchase, we will be removing a crucial steppingstone for those who have not already had an opportunity to purchase a home. We would essentially be closing the door behind those who have already been fortunate enough to purchase a home.

“Society has been making a lot of strides towards providing historically disadvantaged communities with opportunities that had previously been denied to them. We should not be halting that progress by limiting access to homeownership opportunities. The book `The Color of Law’ by Richard Rothstein provides a very detailed analysis of how unequal access to homeownership due to government policies directly resulted in economic harm that continues to hold back communities of color to this day. Considering the fact that communities of color in San Diego are still suffering from the multigenerational impacts of redlining and segregation, we should not be implementing policies that cement these impacts by stopping the creation of new opportunities for homeownership or confining new housing opportunities for lower-income residents to certain areas.”

At their Jan. 26 meeting, the Board of Supervisors received a report from county planners that laid out ways to implement VMT. The board directed the planners to return on Feb. 9 with additional details on VMT options.

Please urge the Board of Supervisors to keep housing a top priority in San Diego County.  

You can submit written comments by clicking here: submit comments.

This proposal is item 7 on the Agenda, if you would be willing to testify on this, you can sign up here:  Sign up to speak

On January 27, the EastLake Educational Foundation (EEF) presented John Carroll with the Ostrem Award, which is named after the “Father of EastLake” Bill Ostrem, whose leadership and generosity left an indelible mark on the EastLake Community.

John's roots are in Chula Vista. He attended Hilltop High School in the ’80s. In fact, it was there that he met his future wife Susan. They moved to EastLake in 2002 where they raised their twins, JJ and Katie. Later they started Fidelity Title Company.  John and Susan will celebrate their 29th year of marriage this May. 

John was selected for the Ostrem Award because of his generosity and leadership in the community. He invested considerable time, talent, and treasure helping schools his kids attended, including Olympic View Elementary, EastLake Middle School, and EastLake High School. It is during these years that John expanded his commitment to helping all the area public schools by joining the leadership of the Eastlake Educational Foundation. His generous commitment is still felt today.

“John’s efforts have supported the dreams of countless children and have buoyed the ability of local public schools to educate kids for the 21st-century technology-driven world,” said Janet Francis, Executive Director at the EastLake Educational Foundation.

John thanked the EEF and stated he was grateful to receive the OSTREM AWARD. He reflected on a quote from his late friend Corky McMillian, “Treat people with respect, always do the right thing, and good things will follow.”

John’s long-standing commitment to the EEF Board ensured that events and activities were successful year-after-year—events like Taste of EastLake, the Stan Canaris Golf Tournament, and EastLake Cycle & Run. These events culminated in successful fundraising efforts that made it possible for EEF to provide substantial grants annually to EastLake’s public schools. These grants commonly totaled $120,000+ each year which allowed schools to fund technology, educational software, scholarships, and professional development.

Fellow board member Barbara Legg shared: “John’s can-do attitude and warm personality always made everyone feel they were fortunate to be involved in the mission, and his extensive list of contacts ensured that no matter what problem arose, he could get it fixed.”

Long-time friend Michael Minjares shared: “John has epitomized what the OSTREM AWARD means. He has modeled community leadership and generosity even during a difficult personal time in his life. He has inspired me with his courage and character.”

Others in attendance at the virtual award presentation shared their thoughts and reflections about John’s commitment to the community. Stan Canaris, Emeritus EEF Board Member, reflected on the bike shop in Bonita that John’s parents owned, and how the whole family worked together to make it a success. Canaris highlighted how John’s strong character is like his father. Stan went on to say: “John is a role model for his family, as well as his extended family—the EastLake Community.

Susan Mahler recalled how John simply shows up for people in need. She stated: “We are so fortunate that John Carroll is a member of our community. John is an extraordinary role model and his boundless love and care for others is a blessing to all he touches.”

The award was presented to John via Zoom. The presentation can be viewed at  https://vimeo.com/eefkids.

THE EASTLAKE EDUCATIONAL FOUNDATION's MISSION IS A FOUNDATION FOR PUBLIC SCHOOLS

In collaboration with the community, the EastLake Educational Foundation raises funds to provide educational resources for programs in EastLake public schools, ensuring students can succeed in a technology-driven world.  EEF granted permission to share this message. 

For More Information about the EEF

The Pacific Southwest Association of Realtors membership have elected a new slate who will join the 2021 leadership team.  The following leaders were elected as Officers and Directors to serve in 2021.

2021 Election Results
Max Zaker, President-Elect
Sam Calvano Secretary / Treasurer
Mike Anderson Director
Merrie Espina Director
Rafael Perez Director
Amy Ruiz Director
Amber Tannehill Director
Andrea Martino Affiliate Director

These elected leaders will join current board members to form the 2021 leadership team.

The 2021 Officers: 
Ditas Yamane  President
Max Zaker President-Elect
Robert Cromer Immediate Past President
Sam Calvano Treasurer

The 2021 Directors
Peter Mendiola 2020-2021
Jason Lopez 2020-2021
Yvonne Cromer 2020-2021
Mike White 2020-2021
Laurie MacDonald 2020-2021
Mike Anderson 2021-2022 
Merrie Espina 2021-2022 
Rafael Perez 2021-2022 
Amy Ruiz 2021-2022 
Amber Tannehill 2021-2022 
Andrea Martino 2021-2022 Affiliate Director

PSAR is a 501C6 Non-Profit founded in 1928. The organization is led by volunteers who establish the policies that govern our organization. Our mission is to empower REALTORS® to flourish while being accountable to each other, our clients, and our community. We are thankful to all who were nominated to lead PSAR and we are looking forward to great things from both the elected candidates and those who will continue to serve in our committee leadership.