C.A.R.’s Chief Economist Leslie Appleton-Young shares insights on national, state and local economic trends impacting the real estate market at the “MCAR Annual Membership Meeting” | June 28, 2011.

Leslie’s presentation is available for viewing below. Her materials can be accessed in either PDF or PPT format (click on the format preferred to download).

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Leslie Appleton-Young is Vice President and Chief Economist for the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), a statewide trade organization with almost 175,000 members dedicated to the advancement of professionalism in real estate.

Mrs. Appleton-Young directs the activities of the Association’s Member Information Group.  She oversees the analysis of housing market and brokerage industry trends, member communications, and membership development activities.  She is also closely involved in the Association’s strategic planning efforts and is a well-known speaker in California’s real estate community.

Before joining C.A.R. in 1984, Leslie Appleton-Young was a consultant with Telesis Inc. in Rhode Island.  She also spent several years working as a research associate at the Federal Reserve Bank of Philadelphia and as an instructor at the University of Pennsylvania.

Mrs. Appleton-Young earned a Bachelor of Arts degree in economics from the University of California, Berkeley, and her Masters from the University of Pennsylvania.

A new vacant property registration ordinance is in place in Pacific Grove. For those of you working directly with the banks on foreclosures, make sure you are aware of the new requirements that have just gone into effect. We have added the links to the mcarconnect website and encourage you to take a look at how this policy works to ensure compliance.

The new policy requires the bank (or owner of the note) to register the property within 10 days of Notice of Default IF the property is vacant. If the property is not vacant, a re-inspection by the responsible party is required every 30 days until the default is remedied or the property becomes vacant. Within 10 days of it becoming vacant, registration is required. The city’s annual vacant property registration fee is $116.

The vacant property registration form can be accessed here.

For more information on specifics of this new policy, click here.

Questions regarding this policy can be directed to the new Code Compliance Program Officer (information below).

Code Compliance Program
2nd Floor, City Hall
300 Forest Ave.
Pacific Grove, CA 93950

Tel :: 831.648.3116
Fax :: 831.648.3184

John Willett (Code Compliance Officer)

**UPDATE**

Per the Water Forum this last Friday (5-20-2011) Cal-Am General Manager Craig Anthony indicated that second bath additions (ordinance 98) could still move forward – though a change in that position could occur at any time per the State Water Resources Control Board.

On September 30, 2010 conforming loan limits for Monterey County were extended for the second consecutive year in an effort to stimulate the housing market.  Without legislative intervention, (another congressional extension) conforming loan limits currently in place for this area ($729,750) will expire come October 2011. The previously adjusted rate, approved back in 2008, will become effective resulting in an adjusted conforming loan limit of $483,000 – a difference of $246,750 – the single largest downward adjustment in the nation.

For those of you who remember, we fought adamantly back in 2008 to have the adjusted rate for Monterey County re-evaluated by HUD. We enlisted the help of Congressman Farr, Commissioner Davi and others in an effort to help HUD understand the very unique demographics of this area with our inland and peninsula communities. Fortunately, Congress extended the temporary limits for the past two years and the issue was sidelined somewhat – though efforts continued locally to have the methodology re-evaluated.

The formula used to derive the $483,000 rate is based on, in part, 115% of an area’s median home price. The “area” used in these calculations is the “Metropolitan Statistical Area” or MSA. Our MSA, is comprised of the entire county  - meaning the formula is deriving it’s rate from peninsula and Salinas Valley markets collectively – irrespective of vastly divergent home sales within these areas. Again, the result being the single largest downward adjustment in conforming loan limits in the entire nation.

We will once again begin our campaign to request an adjustment in the rate established for Monterey County. There is a chance a legislative extension of the current rate of $729,750 could occur, though there is no assurance of that. Stay tuned on this issue as member involvement will be essential moving forward.

The Monterey Peninsula Water Management District (MPWMD) will be “doubling their water retrofit inspection efforts” over the next couple of months.

The Water Management District believes that retrofit compliance over the past couple of years has been lax – resulting in a number of properties transferring ownership void of any actual retrofit being performed. The primary issue at this time appears to be shower-head retrofits, though there is also concern relating to the rain sensor requirement.

What this means to you and your clients:

If you are involved in a residential property changing ownership within the MPWMD territory (see map here) the “Owner Certification” option found on the certification form will most likely trigger an inspection by the Water Management District.  The first inspection is free – however, if the property is found to be in violation, a follow up inspection will be scheduled to verify the retrofit compliance at a cost of $105.00 to the property owner.

What the District is checking for:
Upon change of ownership or use of all structures: Regulation XIV requires the mandatory retrofit of plumbing fixtures with toilets that use a maximum of 1.6 gallons-per-flush and showerheads with maximum flow of 2.0 gallons-per-minute.

The District also requires properties that have a irrigation system to install a rain sensor (moisture monitor) on the irrigation controller. The District has been providing these sensors for free but due to funding limitations has ceased doing so. A rain sensor can be purchased at your local hardware / home supply store for less than $30.00.

MPWMD Water Conservation and Permits Staff can be reached at: 831-658-5601

“Business as usual” is how the Monterey Peninsula Water Management District (MPWMD) will proceed post approval of the moratorium by the California Public Utilities Commission (CPUC). However, Cal-Am will NOT be operating under the same intention.

MPWMD will operate (at this time) as if nothing has changed – until such time their Board changes course…This will most likely occur after the required conference of MPWMD, the State Water Resources Control Board (SWRCB) and Cal-Am…this “conference” should take place in the next 60 days.

Prior to the above-mentioned conference taking place, MPWMD and Cal-Am will confer and establish a list of points to be clarified by the SWRCB. This “list” will contain items of serious interest to Cal-Am ratepayers in this area such as: The Second Bath Ordinance (policy granting addition of bathroom in 1 bath residences), utilization of banked water credits and water credits obtained through fixture retrofit – essentially, all conceivable impacts to our water credit system. The conference of MPWMD and Cal-Am will need to take place within the next 45 days.

As I mentioned before, Cal-Am will not be operating status-quo, pending clarification by the SWRCB on water credits. Clarification by the SWRCB should come within 60 days.

The following is a break down from Cal-Am on associated impacts of the newly approved moratorium. Properties that fall within Pebble Beach, Ralph Lane, Chuluar, Bishop, Ambler Park, Ryan Ranch, Hidden Hills and Toro subsystems are exempted from the moratorium provisions.

Cal-Am, as of last week, will no longer allow the use of “banked” credits on a property.

Cal-Am will not allow utilization of the “Second Bath Policy” in one bath properties until such time the SWRCB indicates otherwise. **UPDATE** Per the Water Forum this last Friday (5-20-2011) Cal-Am General Manager Craig Anthony indicated that second bath additions could still move forward – though a change in that position could occur per the SWRCB.

Cal-Am will most likely approve apartment to condo conversions with a meter split because of water savings achieved with this type of project.
Remodels will most likely move forward unobstructed as long as utilization of banked water credits does not occur.

Demolition projects (structure torn down, then re-built) will most likely not be impacted as long as the exact water units prior to demolition are used post construction…again, utilizing banked water credits will not be allowed.

New connections on previously unserviced property will not be allowed unless all appropriate permitting and approvals were in place prior to the Oct. 20, 2009 CDO implementation date.

A new meter at an existing service address will most likely be approved as long as there is no increase in water use and utilization of banked water credits does not occur.

Much will be happening on the water front over the next 60 days. The above-mentioned challenges may change course per the outcome of the conferences taking place over the next 2 months.

Stay tuned…
Kevin

WATER UPDATE
Moratorium Approved by CPUC

The California Public Utilities Commission (CPUC) voted 5-0 to approve a modified moratorium request before them today for consideration. While truly unfortunate (and in my opinion, unnecessary) today’s decision was somewhat expected.

I’ve included the main provisions of the moratorium below and will do my best to summarize the impacts and “next steps” outlined within the order.

The CPUC has directed Cal-Am to recognize Condition 2 of the State Water Resources Control Board (SWRCB) Cease and Desist Order (the moratorium portion) through modified tariffs.

Any new service connections that received appropriate approvals prior to the October 20, 2009 Cease and Desist Order (CDO) adoption date will be exempted from the moratorium.

Cal-Am should not deny the installation of additional meters at an existing service provided there is no increase in water use.

Pebble Beach, Ralph Lane, Chuluar, Bishop, Ambler Park, Ryan Ranch, Hidden Hills and Toro subsystems are exempted from the moratorium.

Cal-Am is being directed to meet with the SWRCB and the Monterey Peninsula Water Management District (MPWMD) to define what an “increase in water use” really means. In other words – how does this moratorium impact water credits? This “conference” is supposed to take place within 30 days.

This issue is far from over as the next phase of this challenge will focus on preserving our collective opinion that utilization of one’s water credit(s) does not translate into an increase in water use.

I will keep you posted as additional information becomes available. Make sure you’re incorporating the Supplemental Water Disclosure in your transactions.

Stay tuned…

Kevin

WATER UPDATE
Moratorium Decision on Hold…Again

The California Public Utilities Commission (CPUC) delayed once again it’s decision on a proposed water moratorium on new or expanded  connections within the Cal-Am service territory. The proposed action was taken off the March 10 agenda and will most likely appear again on the March 24 agenda.

We’ve heard there may be a revision to the prescribed Moratorium Order in process which is likely why the additional delay occurred. We’ve also learned that the CPUC continues to receive letters from rate payers, both residential (Thank you!) and commercial, requesting that the Commission deny the moratorium request.

Again, thank you for your letters to the Commission. As you can see, your input does count and it does indeed make a difference. For more information on this issue and how you might participate, click on the link below or feel free to contact me directly (my contact information is below).

http://www.mcarconnect.com/?p=2436

Stay tuned for additional updates as they become available.

Kevin