The Senate has just passed the Coronavirus aid, relief and economic security (CARES) Act, a stimulus package that will provide assistants to Realtors.   C.A.R. is closely monitoring the legislation.   Review CAR's update here.

C.A.R. has issued guidance on the Governor's stay at home order.  This is not guidance from PSAR or our Board of Directors.  CAR has a legal team that is qualified to interpret and opine on legal matters.  Please consult your own legal council for advice and consult.  PSAR, CAR and NAR leaders continue to communicate with officials to educate them about the real estate business in this time of crisis.  

For more information please follow this link: 

Service information can be found here.

DRE Closes Offices

All DRE offices are closed to the public until further notice in compliance with Governor Gavin Newsom’s Executive Order N-33-20, issued March 19, 2020, ordering all California residents to shelter in place to slow the spread of COVID-19. 

PSAR Changes Services 

PSAR Launches New Temporary Processes to comply with the Governor's order. 

PSAR will support sale of  lockboxes and retail merchandise via pre-payment over the phone and pickup by appointment only.  Boxes that need repairs, replacement, or new batteries will be exchanged  for refurbished boxes following a pre-scheduled troubleshooting session.

Offices are closed, but member support will be provided by phone, chat, email or video call.  The PSAR staff is ready to provide full support to our realty community while adhering to the mandated state guidelines. 

We, like you, are working through this challenge by adapting to a dynamic environment.  If you would like to express any concerns or comments, please email support@psar.org.

Please check PSAR's landing page for the latest updates regarding the CVOD-19 situation including cancellations and resources.  Updates will be posted here:

https://info.psar.org/covid19

The R.E.A.L. Awards program to honor PSAR’s top producing agents will be postponed.

Due to concern for public safety as a result of COVID-19, commonly referred to as coronavirus and in recognition of state health officials’ recommendations, PSAR will delay the inaugural Real Estate Achievement and Leadership (R.E.A.L.) awards event, originally scheduled for Friday, March 27, at Viejas Casino and Resort. The event will be rescheduled to a future date.

Earlier this week, Gov. Gavin Newsom joined state health officials from the California Department of Public Health in recommending the cancellation of gatherings of 250 or more people across the entire state, escalating efforts to slow the spread of the virus.

All who purchased tickets to the March 27 event will be given the option of attending the future event or receive a refund.

Of course, we’re disappointed about the delay of this exciting event. However, the health, safety, and well-being of the entire PSAR community is the top priority for the Association leadership. I can assure you that your Association will continue to closely monitor this public health crisis and stay in contact with local, state and federal health experts to ensure that best practices are being followed and if additional precautions are advised. Some other PSAR meetings may be cancelled while others will be held remotely.

Over the next two weeks we will take time to regroup, and when the storm passes, put on an amazing event. The R.E.A.L. awards will be a celebration, with over 400 real estate professionals, of the successes we have respectively had in our businesses. Nobody is more disappointed in the delay than each of our dedicated group of volunteers who worked diligently during the past two months to make this event a memorable experience.

The R.E.A.L. Awards Committee members include Yvonne Cromer, Reshia Guarnotta, Amber Tannahill, Lupe Soto, Laurie Mac Donald, Carey Guthrie and Tony Santiago.  

The R.E.A.L. awards programs will honor PSAR’s top producing agents and provide a platform on which to be recognized for their hard work and dedication by their associates, other professional peers and PSAR. Award recipients are agents and brokers who have achieved excellence through production and industry leadership. Awards are based on either sales volume dollars or units sold, including listings or sales units entered in the MLS, and closed in 2019.

For information about other PSAR rescheduled programs (click here).

The virus, which causes a respiratory disease known as COVID-19, first appeared in Wuhan, China, last year.. Cases have been recorded in more than 100 countries and on every continent except Antarctica. More than 4,717 people have died and more than 128,000 others have been infected, many of whom are in China. In the U.S., more than 1,700 people have been infected across at least 46 states with at least 41 deaths, and 31 of them were elderly people from the state of Washington.

As the virus spreads, causing the shutdown of offices and schools across the U.S., many people are understandably on edge. However, the same preventative measures recommended to prevent the spread of influenza are also effective in reducing the risk of contracting or spreading coronavirus. Here are some recommended actions that will reduce the risk of contracting and spreading coronavirus:

• Stay home and do not travel if you have a fever, cough, shortness of breath or any other cold or flu-like symptom.
• Wash your hands frequently with soap and water for at least 20 seconds. If soap and water aren’t available, use    an alcohol-based hand sanitizer.
• Avoid touching your eyes, nose, and mouth with unwashed hands
• Avoid close contact with anyone who is sick
• Clean and disinfect frequently touched objects and surfaces
• Cover your mouth and nose with a tissue when you cough or sneeze, or cough or sneeze into your sleeve 
• Call ahead to your doctor before visiting

El Cajon Mayor Bill Wells, Councilmember Steve Goble and Councilmember Phil Oriz, thank you for listening to the concerns of PSAR and El Cajon residents.

Following testimony by PSAR members, the El Cajon City Council recently voted “no” on a proposal to add sewer charges to homeowners’ property tax bills.

PSAR testified that adding sewer charges to property taxes would have had a far-reaching negative impact for homebuyers and for the city of El Cajon. If approved, it would have meant that future homebuyers would need more money to qualify for a mortgage. It also would have resulted in a loss of buying power for homebuyers. Adding the charges would lower housing values and reduce equity, since a higher property tax bill will shrink a homebuyer’s available pot of money needed to purchase a home. 

Fortunately, three members of the El Cajon City Council, including Mayor Bill Wells and council members Steve Goble and Phil Ortiz, agreed with PSAR and voted to protect homeowner interests by not placing property sewer charges on the San Diego County property tax roll.

“Our members are gratified at the city council’s decision,” said Rich D’Ascoli, CEO, PSAR. “We look forward to sitting down, rolling-up our sleeves and helping El Cajon develop a mutual, long-term solution that will not adversely affect homebuyers and home sales. We’re ready to work with the city to find a better solution. Adding sewer charges to property taxes would have reduced the buying power of homebuyers. We have a number of better ideas that will not hurt homebuyers.”

This is not the first time the El Cajon City Council has attempted this. In July 2013, a proposal to add sewer charges to property tax bills was flushed down the proverbial toilet.  In El Cajon, the city maintains nearly 200 miles of underground pipeline, the majority of it construction before 1965. Many lines date back to the 1920s. 

PSAR Plans to protest proposal to hike property taxes with sewer bill.

The El Cajon City Council is attempting to add sewer charges to homeowners’ semi-annual property tax bills. The City Council is scheduled to discuss this proposal at their next meeting, located at 200 Civic Center Way, El Cajon, 92020, on Tuesday, March 10 at 3:00 pm.

PSAR encourages you to advise your El Cajon clients who own property (residential, commercial, industrial) to send a protest letter to the El Cajon City Clerk before 2:00 pm Tuesday, March 10, in protest of adding sewer charges to their property tax bills.

This may seem at first to be an innocent action by elected officials. However, in reality, adding sewer charges to property taxes would have a far-reaching impact to individual homebuyers and for the city of El Cajon overall.

If these additions are approved, future homebuyers would need more money to qualify for a mortgage. The reason is because higher property taxes always result in lower borrowing ability. Another negative effect would be lower housing values, including lost equity, because a higher property tax bill will shrink a homebuyer’s available pool of money available to purchase a home. 

The bottom line is that anytime a property tax bill increases,  the higher amount  adversely affects the local real estate industry. Adding sewer charges to property taxes will reduce the buying power of homebuyers. 

Here are some numbers to consider: 

For a typical $400,000 home, purchased with 20 percent down and an 80 percent, 30-year mortgage loan at 5.5 percent, the monthly mortgage payment is approximately $1,817, insurance is $67 (based on $800/year) and property taxes are $367 (based on 1.1 percent of assessed value) for a total monthly payment of $2,251. However, if a sewer charge of $45 (based on property taxes of $540/year) were to be added, the total monthly mortgage payment for the same home would increase from $2,251 to $2,296. Sewer charges are calculated based on water use at each property. 

Furthermore, with a 40 percent minimum qualifying income, the homebuyer would need an annual income of $68,880 instead of $67,530 without the sewer bill added to their property taxes. That translates to a 2 percent higher income needed to qualify for the same loan. A homebuyer’s purchasing power is reduced by $8,000 when  an increased average sewer charge is added to the property tax bill. 

There are many issues and questions with which residents should be concerned. Seniors and individuals on a fixed income will be hit by a large bill at the end of the year. What considerations have been made for these individuals? Who will ratepayers go to when there is an error on the sewer bill if those charges are added to the annual tax payment? Although billing through the tax roll may be slightly less expensive each month, an incorrect bill can be much more impactful. The city intends to defer income from sewer ratepayers until the end of the year. How is that money financed? Isn’t it better for the city to collect this money upfront rather than waiting until the end of the year to bill? How much will this cost taxpayers?

This is not the first time the El Cajon City Council has attempted this action. In July 2013, a proposal to add sewer charges to property tax bills was flushed down the proverbial toilet. Municipalities are attracted to pass-through wastewater sewer costs coupled with property taxes because it saves the city time and money in mailing and administrative processing costs. It also allows for an easier way for cities to earmark construction costs for necessary sewer line repairs. In El Cajon, the city maintains nearly 200 miles of underground pipeline, with the majority of piping constructed before 1965. Many lines date back to the 1920’s. 

Last year, El Cajon approved higher sewer rates over the next five years. A typical customer paying $48.31 each month for sewer services will see his or her bill increase to $55.09 in 2020, $61.22 in 2021, $69.70 in 2022, $77.35 in 2023 and $88.76 in 2024. The city’s 17,000 residential customers haven’t seen a rate increase since 2011. Before then, the last adjustment to sewer rates in El Cajon was in 1999. Wastewater in El Cajon is piped to San Diego’s Point Loma treatment plant where it is treated and then released into the ocean.

The El Cajon City Council meeting on Tuesday, March 10 will begin at 3:00 p.m. at El Cajon City Hall, 200 Civic Center Way, El Cajon. The city council meeting is open to the public. PSAR members are encouraged to attend. Oral objections and/or protests may be made at the public hearing.

You are also encouraged to send an e-mail to the City of El Cajon stating your opposition. In your e-mail, refer to the “Sewer Billing System Change to the Property Tax Roll.” Protest emails must be sent prior to 2:00 p.m. on March 10. Any written objection or protest must include your name, Assessor Parcel Number (APN), sewer service address and a statement indicating your opposition to the placement of the sewer charges on the property tax bill. Protest emails can be sent to the City Clerk Angela Cortez at cityclerk@cityofelcajon.us,  or the City Manager Graham Mitchell at gmitchell@cityofelcajon.us.

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After much debate in the industry, the National Association of REALTORS Board of Directors overwhelmingly supported this new policy that will govern what it means to be part of an MLS. 

From a very high level, this new policy creates rules that will require agents to cooperate and get their clients the very highest price in the market.  It will discourage "double-ending" transactions without market exposure. There were lots of reasons not to create this policy, but none of the individual issues made a strong enough argument in the eyes of the Realtors on the NAR Board of Directors to overcome the good that this policy will do for cooperation.  

NAR's mandatory policy reads like this: 

Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.

This policy has an implementation deadline of May 1st, 2020

CRMLS has been collecting input from members since November will finalize the rules for this policy by April 1, 2020.  PSAR has had representatives from CRMLS here three times to present and get feedback from our members and Brokers.  We are doing our best to roll this policy out in a way that will be least disruptive, but it will be incumbent on our members to adhere to these rules when they are rolled out.

Download this flyer to post and share in your office meetings:

Here is a brief video from CRMLS CEO Art Carter:

For deeper knowledge into the background and development of this policy, check the National Association of REALTORS page dedicated to this issue:  https://www.nar.realtor/about-nar/policies/mls-clear-cooperation-policy