August 2003

SOQUEL CREEK WATER DISTRICT PROPOSED WATER DEMAND OFFSET PROGRAM:  

On Tuesday, August 5, 2003, the Board of Directors of the Soquel Creek Water District has scheduled a Public Hearing at 7 pm at the Capitola City Council Chambers located at 420 Capitola Avenue in order to present a new requirement for developers/builders of new construction.   For each new home, a builder would be required to retrofit existing homes and businesses in the Soquel Creek Water District service area in order to get a new water hookup!  How many homes/businesses?  Chris Regan, Soquel Creek Water District Communications and Conservation Director, has stated that a formula which produces the necessary water savings as calculated by the District could require an indeterminate number of homes to retrofit with low flow water saving devices.  The premise is to have the builder do enough retrofits to equalize the amount of water for each new residence built.  For example, some existing retrofits may use more water than others.  So a builder could choose to retrofit a restaurant or a school, which ordinarily uses more water than an existing residence.  Meanwhile, the number of retrofits could be as many as 8 (existing) home retrofits or less, depending on the calculated savings required for each new residential hookup.  In any case, an average cost of $300-500 per retrofit could run $2000 to $4000 and up.

According to information provided by the District, in order to determine the number of retrofits a developer has to complete, the District will use "water use factors", which reflect water use over the life of a project expressed as annual use in acre-feet.  The proposed guidelines state that applicants for water service would be required to purchase and install sufficient numbers of shower heads, kitchen and bathroom sink faucet aerators, and low-flow toilets to offset the expected water use of their respective developments by a 1.2 to 1 ratio.  The District will maintain a list of property owners desiring retrofits, which may be utilized by the builder to accomplish the requirement, or the builder may develop a separate list.  Therefore, homeowners who want to have their toilets retrofitted for free by a builder will put their properties on the list. Once retrofitted, District staff will verify that the retrofitted units have been properly installed and will calculate the (water) savings achieved.  Builders would be assessed a charge for District staff/representative to verify that all properties were properly retrofitted for the builder's project.  No "in lieu" fees would be allowed, in return for not doing the retrofits.  (In addition to the retrofit cost, a new hookup for domestic and fire is $6950.) In the Soquel Creek Water District, only 17 new hookups were added last year. 

At the present time, there are very few pending projects and the total number of new residential units in the "hopper" is probably less than 50.  There are many questions:  How much water will this new proposal save? Will such additional costs be prohibitive to housing affordability? Are there other solutions that are more viable?   What figures have been used to calculate home water use? How will this plan be managed?  And on and on.  "Watch" and attend the meeting next Tuesday evening, August 5, 2003. 

COUNTY OF SANTA CRUZ

Housing Element Public Hearings:  The Housing Advisory Committee's sole agenda item for August 6 and August 20 will be a Public Hearing about the County's Housing Element.  The meetings will be held from 6:00-8:00pm at Cabrillo College Room 435, 6500 Soquel Drive, Aptos, CA.  The draft Housing Element will outline the 2621 proposed units for the County until the year 2007.  At the present time, Watsonville is the only jurisdiction in Santa Cruz County that has received certification from State of California Housing and Community Development (HCD) for 2,283 units.  Capitola, Santa Cruz, Scotts Valley and the County are in various stages of the approval process for their respective Housing Elements.  "Watch"!

Agriculture Disclosure Chapter 16.50: 

County Board of Supervisors will hold a Public Hearing on August 12, 2003 to discuss amendments to the Agriculture Disclosure ordinance Chapter 16.50.  The proposed ordinance would require disclosure and notification, upon sale or transfer of ALL Santa Cruz County properties by means of a recorded document stating that Santa Cruz County is in an Agricultural area, with certain disclosure provisions.  At the current time, only those properties which are adjacent to property (located within 200 feet)  are required to make the disclosure and record a notice of adjacency regarding Agriculture.  Please contact your supervisor in writing to:  Board of Supervisors, 701 Ocean Street, Santa Cruz, CA 95060 with your opinion before August 12, or log on to www.co.santa-cruz.ca.us and email your Supervisor from there.  Attend the meeting on August 12!  "Watch"!   

CITY OF WATSONVILLE

Farmworker First Time Home Buyer Grants

Watsonville's Farmworker First Time Home Buyer Grants were designed to help agricultural workers buy newly constructed homes. To be eligible for a Farmworker Grant, at least 25% of household income must come from agricultural employment.  The City of Watsonville defines agricultural employment as "any work that is performed in the fields to cultivate or harvest fruit, vegetables or flowers. Packing and processing agricultural products is only considered agricultural employment if the work occurs where the products are grown. For example, mushrooms and flowers are typically grown, picked, packaged and shipped from the same site. Work in the fishing, poultry, livestock and timber industries may also qualify as agricultural employment. Transporting agricultural products is generally not considered agricultural employment."

Applicants must not have owned a home in the last three years and must qualify under household income guidelines.  For example, a family of 4 persons may not exceed income of $60,550.   Priority is given to buyers who live or work within the City limits of Watsonville.  Eligible Homes must be in the City, brand new and never occupied.  The maximum grant is $30,000.  To be eligible for a Farmworker Grant, the home, condo, or townhome must be located in the City of Watsonville, must be newly constructed and never occupied.  Mobile homes are not available. 

There is no limit to the purchase price for a new home. Both market rate homes and the affordable homes produced under the City's Affordable Housing Ordinance are eligible for Farmworker Grants.  (It is important to note that the buyer must qualify with a lender for the entire financing package.) The maximum Farmworker Grant is currently $30,000, and can combine other assistance programs for purchase if needed.  Homebuyers must contribute at least 3% of the purchase price of the home--either toward closing costs or downpayment.  

These Farmworker Grants are considered secured grants because a lien is recorded against the property.  No payment or interest is charged if certain guidelines are followed.  Each year, about 10% of the grant is forgiven.  If a property owner owns and lives on the property for 20 years, the grant is forgiven.   Check out the City's website for this and other loan programs and to review Watsonville's new developments at http://www.ci.watsonville.ca.us or contact rhd@ci.watsonville.ca.us 831-728-6014.  "Watch" this one for your Farmworker clients! 

CITY OF SANTA CRUZ  

Amendments to the City's Unified Housing Rehab Guidelines   

 

The City’s Unified Housing Rehabilitation Program (UHRP) offers loans and grants to assist low-income households, landlords and nonprofit community and governmental organizations with the rehabilitation of owner-occupied and rental housing. Primary funding for the UHRP comes from federal Community Development Block Grant and Home Investment Partnerships Program entitlement grants.  The UHRP Administrative Guidelines formulate policies and procedures for the analysis and approval of loan/grant applications, disbursement of loan/grant funds and rehabilitation project management, and must be revised in order to accommodate changing federal funding regulations and administration of the funds.

 

The following include some of the clarifying changes to the program:

1) Allows funds to be used in the conversion of existing accessory structures to accessory dwelling units. 2) Establishes a common definition of “annual income” to be used in qualifying loan applicants for all types of funding sources available for use in the UHRP. 3) Restructures deferred loans to re-define payment schedules. and 4) Eliminates mobile home loans for individuals. These loans have proven to be problematic in the past (only 2 mobile home loans issued in the last 10 years) due to the fact that mobile homes are not real property and security of the loans has been an issue.   However, loans for repair and upgrade of infrastructure improvements in mobile home parks are still available.   Contact the City of Santa Cruz at or log on to www.ci.santa-cruz.ca.us for more information.  "Watch"

 

Bay Gharkey Street Alley Re-Named Via Riva Trigoso: On March 8, 2003, area residents dedicated the alley behind Lighthouse Avenue as Via Riva Trigoso.  The site was selected to honor the Santa Cruz-Italian fishing colony, La Barranca.  La Barranca was geographically located between Bay and Gharkey Streets, next to Lighthouse Avenue.  It is the first alley ever named after Riva Trigoso.  Today, there are over 10,000 California descendents from this small village in Italy.  The Santa Cruz Genovese Fishing Colony is part of the Pacific Coast chain of Italian communities originating from the Riva Trigoso coastal village of Sestri Levante, a Santa Cruz sister city east of Genova.

 

The alley was named to commemorate the birthplace of Mary Carniglia, the first woman to open a business on the Municipal Wharf.  Mrs. Carniglia moved to Santa Cruz in 1906 after the earthquake.  She was the first Italian woman in Santa Cruz with bilingual skills and an English education.  She worked as a bilingual translator aiding the Italian community with citizenship paperwork and many other interpretation needs.  Mrs. Carniglia aided fellow community members displaced during World War II.  She helped those without United States citizenship obtain proper documentation and lobbied the government on behalf of Italian fisherman that had fishing privileges revoked during the war.  It's fun to "Watch" the history and note a new street name based on an old tradition. 

 

NAR GAD MEETING  

The National Association of REALTORS® Government Affairs Directors (GAD) meeting was held July 23-27.  Federal legislation was updated and discussed.  As of July 2003, some of the pending bills included the following:  HR2622 "Fair and Accurate Credit Transactions Act of 2003” to amend the Fair Credit Reporting Act to prevent identity theft, improve resolution of consumer disputes, improve the accuracy of consumer records, make improvements in the use of, and consumer access to, credit information, and for other purposes; HR 1500 "Veteran's Appraiser Choice Act" Allows veterans to select the appraiser for housing loans for which they apply that are to be guaranteed by the Secretary of Veterans Affairs; S 576 "Business Property Economic Revitalization Act" and HR 1634 Leasehold Legislation: Reduces the recovery period for leasehold improvements from its current 39 year level to 10 years;  S875 "Community Development Homeownership Tax Credit Act"  Creates a tax credit available to developers and investors who build or rehabilitate affordable housing that individuals below the median income in an area could purchase; HR 666 Mortgage Cancellation Relief Act: amends the Internal Revenue Code of 1986 to exclude from gross income of individual taxpayers discharges of indebtedness attributable to certain forgiven residential mortgage obligations; and HR 8 Death Tax Repeal Permanency Act: Makes repeal of the estate tax permanent.  Also noted are the Jobs and Growth Tax Relief Act which contain several favorable provisions for real estate including a capital gains rate cut from 20% to 15%, a bonus depreciation provision that includes tenant leasehold and increase for small business expensing. 

 

The package includes a dividends rate cut that is not harmful to housing tax credit programs and cuts individual tax rates.  NAR continues to go head to head with the bankers by gathering more and more support for HR 111 Community Choice in Real Estate Act which prohibits financial holding companies and national banks from engaging directly or indirectly, in real estate brokerage or real estate management activities.  In addition, NAR is meeting with FCC on the National Do-Not-Call Registry and Unsolicited Facsimiles. 

 

On Tuesday, July 22, 2003, NAR staff met with FCC officials to discuss their recent amendments to their Telemarketing Rules. Of specific concern to NAR are 1) the decision by the FCC to extend compliance obligations for the National Do-Not-Call Registry to intrastate as well as interstate activity, and 2) the FCC's reversal of its longstanding interpretation of the prohibition on unsolicited facsimiles.  While maintaining that the FCC has the authority to preempt state law and that their new interpretation of the unsolicited fax issue was more closely aligned with Congressional intent, the FCC encouraged NAR to seek clarification or reconsideration on any of the provisions on which NAR believes 1) the FCC overstepped their authority and/or 2) NAR will require additional clarification. The approach for seeking reconsideration or clarification is through a Petition process.  For further information on the Do-Not-Call Registry, please log on to the NAR website at http://www.realtor.org.  Please feel free to call your federal legislators on any of the aforementioned bills.  "Watch"! 

 

Please Note: The Legislative Watch is prepared by Rose Marie McNair, Legislative Monitor, and is only a summary not intended to provide legal advice, and should always be verified for accuracy.