AB 1289 (Arambula) and AB 2884 (Irwin), C.A.R.’s sponsored legislation to update the real estate law, are both pending in the Senate. In 2016, C.A.R. successfully sponsored AB 685 (Irwin), which made some necessary technical corrections to the Real Estate Law including changing outdated terminology. These measures make additional changes in the Real Estate Law to update the law and conform it to current practice and terminology.

AB 2458 (Weber), C.A.R.’s sponsored legislation regarding transparency on parcel tax exemption for senior and severely disabled homeowners, passed off the Assembly Floor on consent and is pending in the Senate. Existing law allows for the imposition of parcel taxes to fund, among other things, education. Under current law, school districts may exempt seniors and severely disabled individuals, who are typically on fixed incomes, from paying parcel taxes. Unfortunately, many senior and severely disabled homeowners are unable to find information on how to apply for an available parcel tax exemption. This bill will create a simple process for such homeowners to find information on how to apply for available parcel tax exemptions.

AB 3041 (Cunningham), C.A.R.’s sponsored legislation on banning private transfer fees, passed off the Assembly Floor on consent and is pending in the Senate. Private transfer fees (PTFs) are fees imposed by a seller requiring the buyer and any subsequent purchaser to pay a fee upon the transfer. For Fannie Mae and Freddie Mac backed mortgages, the Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) require that the funds generated by PTFs provide a “direct benefit” to the encumbered property. This bill seeks to prohibit private transfer fees that do not comply with these requirements. 

AB 2063 (Aguiar-Curry), a PACE transparency bill supported by C.A.R., passed out of the Assembly Appropriations Committee.  Beginning on January 1, 2019, a PACE program administrator must be licensed by the Commissioner of Business Oversight under the California Financing Law. AB 2063 makes various substantive and technical changes to the law. The changes include: updating the record-keeping requirement from 5 years to 3 years, clarifying that program administrator must clearly disclose to the property owner their financial obligations with the PACE loan and, assessing whether the loan is covered by the property owner’s insurance plan.

AB 2073 (Chiu), a lead-paint homeowner protection bill supported by C.A.R., passed off the Assembly Floor and is pending in the Senate. Ten California cities and counties filed a lawsuit against lead paint manufacturers to establish that the companies were knowingly aware of the harm lead paint can pose issues for a person’s health. In 2017, a state appellate court upheld the ruling in People v. ConAgra Grocery Products (2017), which found lead paint to be a public nuisance and ordered the defendant companies to pay for abatement for certain categories of properties. AB 2073 seeks to protect homeowners from potential lawsuits by the lead paint manufacturers if the homeowners participate in any abatement program created as a result of the court judgment.

AB 2219 (Ting), a third-party rent payment bill, has been amended to address C.A.R.’s concerns. AB 2219 would prohibit a landlord from refusing to accept payment from a “third party” for a tenant’s rent. C.A.R. has secured amendments to: 1) ensure that acceptance of rent from a “third party” (i.e., religious organizations and nonprofit charitable groups) will not establish a landlord-tenant relationship; and 2) make clear that landlords are not required to participate in voluntary governmental housing assistance programs (e.g., Section 8).

SB 1427 (Hill), a mandatory section 8 bill opposed by C.A.R., passed off the Senate Floor and is pending in the Assembly. Under current law, it is illegal to discriminate, for the purposes of renting housing, against anyone due to race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability or genetic information. Under existing law, participation by a rental property owner in federal housing assistance programs, also known as Section 8, is voluntary. This bill would add veteran or military status to the list of protected classes and make landlord participation in the federal Department of Housing and Urban Development-Veterans Affairs Supportive Housing voucher program mandatory. C.A.R. will oppose SB 1427 unless it is amended to remove the mandatory participation requirement for rental property owners.