What About That Energy Efficiency Requirement?

More news from the California Association of Realtors:

C.A.R. sponsors AB1711, energy retrofits bill

For release:
February 16, 2012

C.A.R. sponsors bill to ensure government-required energy improvements cover their costs

LOS ANGELES (Feb. 16) – In a continuing effort to reduce consumers’ costs associated with purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) is sponsoring Assembly Bill 1711, which will clearly define what constitutes an energy efficiency retrofit that would “unreasonably or unnecessarily” affect a home purchase.

Recently enacted legislation requires the California Energy Commission (CEC) to pursue energy conservation in a way that does not “unreasonably or unnecessarily” affect the real estate sales process. However, the lack of a clear definition of “unreasonably or unnecessarily” fails to provide sensible limits on the programs that can be imposed on home buyers by the CEC.

The CEC is currently evaluating implementation strategies focusing on programs requiring installation of energy saving improvements at the time a home is purchased. Such programs, for example, can require home purchasers to pay for improvements that will never pay for themselves over the lifetime of the improvement. Additionally, the CEC is considering requirements that could add thousands of dollars to the up-front cost of a home.

Assembly Bill 1711 (Galgiani, D-Tracy), will prohibit the state from creating a program that requires home buyers to pay out of pocket for energy improvements at the time a home is purchased or that would prevent a home buyer from closing escrow on time. The measure also requires that the costs of mandated improvements be recoverable over the lifetime of the improvement.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Some California Association of Realtors News

From Feb 2:

California REALTORS® applaud Obama’s proposal to help troubled homeowners

LOS ANGELES (Feb. 2) – The CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) applauds President Obama’s proposal to help millions of underwater homeowners who are current on their mortgage to refinance.

“We are pleased that President Obama understands that a recovery in the housing market is essential to a recovery in the nation’s economy,” said C.A.R. President LeFrancis Arnold. “Allowing homeowners whose homes are not backed by Fannie Mae and Freddie Mac to refinance could benefit additional homeowners who are struggling to keep up with their mortgage payments and help thousands of California families who are paying far above the current rate.”

President Obama’s proposal would help eligible, underwater homeowners who are current on their mortgage payments to refinance or modify their loan into safer, more affordable mortgages and take advantage of historically low interest rates. Under the plan, California households could save more than $3,000 a year, which could potentially have a positive impact on consumer spending.

The president’s plan also included a Federal Housing Finance Administration pilot program to transition Real Estate Owned (REO) properties into rental housing. While C.A.R. recognizes that this plan may be beneficial in markets where REO inventory is high, the Association opposes its implementation in California, given low inventory and high demand, even in the state’s hardest hit areas.

Leading the way...® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.