Policy & Legislation
Unusual Alliances Defeat Realtors Three Times
SB 670 killed; AB 239 and AB 1574 advanceLast week, an alliance of for-profit builders and progressive housing, faith, and environmental organizations dealt three blows to the CA Association of Realtors (CAR). Observers wonder if CAR's strategic compass is off kilter - or if they have a stealth agenda.
First, the CAR-sponsored SB 670 (Correa) failed to even receive a motion in Senate Transportation and Housing Committee on May 8, 2007. Housing California, CA Building Industry Association, Sierra Club, and CA Association of Land Trusts strongly opposed this bill, which would have imposed severe and unwarranted restrictions on the use of private reconveyance fees. These fees are paid upon sale of a home and fund open-space preservation and affordable-home development.
The following day, the assembly housing committee passed two measures supported by HCA and opposed by CAR. AB 1574 (Houston) requires reconveyance fees to be disclosed to buyers and spent only for public purposes. HCA and environmental organizations support this measure's reasonable approach to regulating the fees.
AB 239 (DeSaulnier) allows Contra Costa County and San Mateo County supervisors to raise their real-estate document recording fee by $25 and deposit the money into their housing trust funds. The affected counties and PICO CA are the bill's lead proponents. HCA's Julie Snyder testified that the $25 fee pales in comparison to the standard realtor fee of $52,000 on a San Mateo County median-priced home.
AB 1574 and AB 239 will be taken up for a vote in the full assembly later in May or in early June. HCA will continue to lobby for their passage.
Contact: Julie Snyder, (916) 447-0503 x 102 or