A few times each year, select Directors and REALTORS® from our association attend the California Association of REALTORS® Winter Business Meetings to represent our members at the state level. These dedicated professionals serve on various committees, participate in important decision-making discussions, and stay informed on the latest industry developments. Their insights help shape the future of real estate in California—and they bring back valuable information to share with you.
YPN FORUM – AUDREE GARAZA
As this is a forum, there were no action items.
First hour: breakout groups for ice breaking and networking
Second hour: panel of former YPN leaders
- Felicia Mares Villa (Founder of Arlowe Homes)
- Stephanie Zinn (Desert Lifestyle Properties Broker)
- Jenna Garza (Signature RE Group)
Panel discussed the influence and importance of YPN on their careers and growth as a person, leader, and REALTOR®.
Key Quote (regarding recruiting): “Don’t just invite them to the party; bring them on to the dance floor.”
LEGISLATIVE COMMITTEE – AUDREE GARAZA
There were nine action items:
Failed after discussion
Action Item 1: CAR oppose unless amended the Bay-Delta Plan to remove the unimpaired flow approach and instead facilitate voluntary agreements that support the Healthy Rivers and Landscape, Communities, and Farms program (HRL).
Passed without discussion
Action Item 2: CAR support AB303 (Addis) which would return local control of permitting for battery energy storage facilities, prohibiting these facilities from being sited in locations that include environmentally sensitive areas, housing, schools, and healthcare facilities.
Passed without discussion
Action Item 3: CAR oppose amending the Building Homes and Jobs Act to double the existing fee from $75 to $150 per document not connected to a real estate transfer
Passed without discussion
Action Item 4: CAR support AB306 (Schultz) to halt new construction and renovation building code updates until 2031
Passed without discussion
Action Item 5: CAR sponsor legislation to codify and expand Governor’s Executive Order N-7-25 prohibiting RE speculators from making undervalued offers to purchase properties in zip codes designated as catastrophic event areas.
Passed without discussion
Action Item 6: CAR support AB75 (Calderon) which requires notification to homeowners should an admitted insurance carrier plan to use unmanned aircraft to take images of real property
Passed without discussion
Action Item 7: CAR Support AB1 (Connolly) which requires Department of Insurance to review the Safer from Wildlife Regulations every 5 years and consider whether additional building hardening measures and community level wildfire mitigation programs should be included in the program
Passed without discussion
Action Item 8: CAR Support if Amended AB238 (Harabedian and Irwin) to require lenders, making more than 5 loans annually, to provide mortgage forbearance for up to 365 days on real properties damaged or destroyed that are located in zip codes affected by catastrophic events
Passed as amended
Action Item 9: CAR support legislation requiring real estate advertising to clearly state if photos use virtual staging or otherwise are not accurate representation of the property
Major Concerns:
Whether this is within purview of CAR considering there are (or should be) existing MLS rules covering this topic.
The level of “word smithing” involved in a Work in Progress proposal (no official proposal has been submitted)
Regarding “over broad” language
Sanjay stated that conversations would continue regardless of voting outcome as the language has not yet been drafted
HOME OWNERSHIP HOUSING COMMITTEE – WILL QUANSTROM
Indian Wells, CA
Wednesday, February 5
8:00 AM to 9:50 AM
MISSION STATEMENT
The Home Ownership Housing Committee is a policy committee. Its mission is to implement C.A.R. policy on home ownership issues in the legislative and regulatory arenas. It has original jurisdiction over the following issue areas: Common Interest Developments, Housing Policy, and Manufactured Housing.
III. DIRECTION REQUESTED ITEMS
A. Building Homes and Jobs Act: Doubling Per Document Recording Fee
Under current law (SB 2, Atkins, Statutes of 2017), County Recorders are required to collect a flat $75 per document recording fee on every real estate instrument not part of a sales transaction, which serves as a permanent source of funding for the state’s “affordable” or subsidized (deed restricted) rental housing programs. The fee is capped at $225 per transaction. C.A.R. was recently approached by Prosperity California with a request for feedback about its sponsored bill which seeks to double the existing per document recording fee from $75 to $150 for real estate instruments not part of a sales transaction. The group is also proposing to raise the maximum fee from $225 to $450 per transaction for real estate instruments not part of a sales transaction; to re-allocate the program funding dedicated to affordable owner-occupied workforce housing programs (20% of the total funds generated) to instead fund the California Housing Finance Agencies Dream for All Program; and to subject the Building Homes and Jobs Act to the state’s Administrative Procedures Act, which mandates public participation in the regulatory rulemaking process.
THE QUESTION: Should C.A.R. adopt policy related to proposed legislation seeking to modify the Building Homes and Jobs Act?
After much discussion, the committee voted to OPPOSE this motion as it was moved forward. It applies to refinances, mechanics liens, trust transfer deeds and other items.
B. AB 306 (Shultz & Rivas) Building Code Update: Title 24
The California Building Standards Law requires state agencies through the Department of Housing and Community Development to propose building code updates to the Building Standards Commission (state commission). The state commission is required
to adopt a building standard update, also known as Title 24, every 18 months. Existing law also authorizes local governments to impose additional building standard requirements. However, local governments must make an express finding that those changes are reasonably necessary because of local climatic, geological, or topographical conditions when proposing stricter green building standards than prescribed by the state commission. AB 306 would prohibit the state commission from making additional modifications to the residential building code for new constructions and renovations (Title 24) from June 1, 2025, until June 1, 2031 unless the state commission deems the changes necessary to protect health and safety or the standard is related to home hardening requirements proposed by the Office of the State Fire Marshall. The bill also prohibits local governments from making additional changes to Title 24, unless: 1) the state commission deems the changes necessary to protect health and safety; 2) the code modifications are related to home hardening; 3) the code changes are proposed by the fire protection district. C.A.R. does not have policy related to the residential building code cycle; However, with California’s persistent housing supply shortage, the Title 24 code adoption cycle is identified as a significant cost challenge that limits residential housing development. The costliest Title 24 code updates are generally proposed by the California Energy Commission related to the states green building codes. Local electrification plans are also credited with significant cost increases to new residential home development that are impeding the development of new housing necessary to address the state’s lack of first-time and first-generation home purchase opportunities. C.A.R. does have policy to oppose energy audits and retrofits proposed at the time of sale and opposes the use of “societal benefits” to justify the costs associated with energy efficiency mandates.
THE QUESTION: Should C.A.R. support AB 306 if amended to exempt green building code updates proposed by the California State Energy Commission, or in a local electrification plan, from being considered necessary to protect health and safety?
After much discussion, the committee took a SUPPORT IF AMENDED position on this bill. The committee members asked for further clarification in the language in the bill before full support.
C. Motion from the floor from the Pasadena-Foothills AOR. Item was not on Agenda.
MOTION: That C.A.R. “SPONSOR” legislation to codify and expand the Governor’s Executive Order N-7-25: Real Estate Speculators to prohibit unsolicited, undervalued offers to purchase property in zip codes designated as catastrophic event areas for one year, instead of three months, and to ensure the owner-occupied parcels are redeveloped into units intended for market rate homeownership opportunities.
The Committee voted to SUPPORT this motion. A SUPPORT position allows C.A.R. to spend money to develop the legislation.
IV. UPDATES AND REPORTS
A. Homeowner Association (HOA) Management Accountability Working Group Given prior challenges presented to proposals seeking to mandate HOA websites, the Chair has recently appointed a Working Group to evaluate policies directed at holding homeowner associations or homeowner association managers accountable to the homeowners they serve. Specifically, the working group will evaluate legislation of others seeking to create more accountability within the HOA management space to ensure that there are other remedies beyond civil lawsuits to enforce the law. The Working Group will meet through 2025 to evaluate potential policy options and legislation of others, may propose additional policy options for consideration by the committee during the Spring 2025 meeting, and will deliver its final report to the committee in the Fall of 2025.
1. AB XX (Jackson) Real Estate License: HOA Managers
Under current law, neither a homeowner association (HOA) manager nor HOA management company is subject to licensing and oversight by any state agency. HOA management companies are only required to obtain a
business license if required by local ordinance and may hold a real estate license which is not subject to discipline or oversight by the Department of Real Estate (DRE) for practices related to HOA management as
prescribed by the Davis Sterling Act. The DRE does approve and oversee the continuing education course content used to obtain and renew real estate license in California. Assemblymember Jackson has indicated that he plans to introduce legislation to subject HOA managers and
management companies to the licensing and oversight of the DRE. 2. Balcony Inspections
Status: Introduced Committee Members
The Meeting was ended at 9:50 am. The additional items on the Agenda were read only.
We’re grateful for our Directors and REALTORS® who take the time to represent us and report back on the critical conversations happening statewide. Their updates ensure our members stay connected, informed, and prepared for what’s ahead in the industry. Be sure to check back often for the latest reports and updates from future C.A.R. meetings.