LOCAL GOVERNMENT Category
Why Is SoCal Wasting Our Water?
According to a recent AP article, the City of Orange in Southern California is pursuing legal action against a city resident for replacing his lawn with drought-tolerant plants. City code requires 40% of the yard be covered with live plants.
Quan Ha replaced his grass with wood chips in 2008. He and his wife contend they are saving hundreds of thousands of gallons of water by replacing their lawn. They also point out other city residents are being fined for over-watering their lawns. The Has have pleaded not guilty.
This should be a very interesting court case. Many Redding subdivisions have similar requirements but the city does not impose or enforce these rules. Developers, intent on controlling the curb appeal of their developments, place landscaping requirements in the C,C&R’s (Covenants, Conditions and Restrictions).
The West Redding sudivision where I live specifies every front yard must have a minimum of 1000 square feet of grass. Many of my neighbors have removed their lawns in favor of bark, shrubs and/or rocks. My home has never had a blade of grass planted since it was built 24 years ago. Imagine all the water, fertilizer, weed killer and air pollution from mowers and edgers not wasted maintaining a patch of green. Thankfully, nobody has forced the issue for my neighbors or myself to comply with the C,C&R’s.
California should consider sweeping legislation banning any mandates for lawn or plant cover installation for any homes. Replace these laws with requirements for drought tolerant xeric plants adapted to the local climate. This would go a long way toward reaching our goals of water conservation, reducing air and water pollution and freeing up finite water supplies to irrigate farmland in the Central Valley where half of this nation’s produce is grown.
In stark contrast to the City of Orange, Roseville started a cash for grass program a couple years back that paid homeowners $1 for every square foot of lawn replaced with drought tolerant plants. This is the direction the entire state should go unless those opposed to dam building or fish preservation want to abandon their agendas so Californians can continue to water their thirsty lawns.
Is it asking too much of our neighbors to the south to use water imported from the Northstate prudently? Does it make sense to deny farmers water so the LA basin can look green? I think not!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL REAL ESTATE EXPERIENCE
Housing Affordability Remains High For First-Time Buyers
INDUSTRY NEWS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS
Lower home prices combined with low interest rates bumped up the First-Time Buyer Housing Affordability Index (FTB-HAI) for California to 64%. During the bubble, this index bottomed out just over 20%. This number reflects the number of households that can afford an entry-level home assuming a 10% down payment and an adjustable interest rate of 4.5%.
I would prefer this index be calculated using a stable 30-year fixed rate loan. The high usage of adjustable rate loans caused many of the problems we are dealing with today. The California Association of Realtors (CAR) also tracks affordability for certain counties and regions within the state. The most affordable region is the High Desert at 84%. The area of San Luis Obispo won the least affordable honor at 48%.
Here’s how other regions ranked:
- United States-77%
- Northern California-65%
- Northern Wine Country-58%
- Southern California-63%
- San Diego-57%
By county:
- Sacramento County-79%
- Merced-84%
- Riverside-78%
- Marin County-40%
- San Fransisco-35%
The Redding area is lumped in with Northern California. Sacramento has higher affordability due to higher incomes. The index compares median incomes to median home prices to determine affordability. Despite a lower median price in Shasta County, lower incomes prevent our area from ranking higher by this index. Statewide the median price for the 4th quarter 2009 was $257,940. The minimum household income needed to purchase the median priced home is $44,100.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL LIVING REAL ESTATE PROFESSIONALS
CORNER OF COURT AND PLACER IN REDDING
MORE THAN 25 YEARS LOCAL SALES EXPERIENCE
Is Your Taxable Property Value Too High?
LOCAL GOVERNMENT, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS
Proposition 8 requires county assessors review property values used to calculate property tax bills when the current value drops below the base year valuation. Some California assessors have waited for property owners to request a new appraisal while others, including our elected assessor Leslie Morgan, have taken the initiative to examine thousands of properties purchased after 2002. Leslie Morgan and members of her staff updated Realtors on actions taken by their department to bring area property values in line with the current market at our weekly MLS meeting.
More than 32,000 of Shasta County’s 95,000 properties were reviewed and approximately 16,400 saw a drop in their taxable value. In fact, Shasta County property owners collectively paid $12.5 million less in property taxes as a result of Leslie’s actions. This translates to billions of dollars of lost property values across the county. Sacramento feels the hurt because they keep the lion’s share of property tax dollars that are collected by the county and forwarded to the state’s general fund. Only 13 cents of each tax dollar is returned to the county.
The challenge for county appraisers is selecting from two distinct pools of sales data-arms length transactions involving owner occupied, well-maintained properties or distress sales which include neglected bank-owned properties and short sales. Referred to as two-tiered market comparables, the appraisers must decide which pool to draw sales data from when conducting a reappraisal.
The county also received more than 500 appeals from property owners contesting the value of their property as reflected on the tax roll. This usually happens when the tax bills are mailed out each fall. Less than half of these properties were adjusted downward according to Leslie. Appeals are accepted after the tax year begins July 1 but the appraisal must reflect the value as of January 1 of the current year.
Another challenge is the lack of closed sales to choose from. The slow real estate market means there are fewer properties in a given location to use for an appraisal. This is an even greater challenge in rural areas of Shasta County. In some cases, the appraisers are so buried with a backlog of properties to evaluate they encourage property owners to file a formal appeal to protect their rights to have their property reassessed. This way they can have the value adjusted at a later date and receive a refund if there was an overpayment of property taxes.
One positive note is the inflation rate was negative for 2009 so the county will not be adjusting property tax bills upward this tax year. Prop 13 allows up to 2%/year increase if the CPI has increased by at least that amount.
Legislators are discussing possible revisions to Prop 13 in light of the spending problem in Sacramento. There is a push to split the tax roll-assessing commercial properties differently than residential properties. If this happens, it would be one more reason for businesses to move out of California.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL SALES EXPERIENCE
Local Housing Agencies Launch Foreclosure Assistance Program
HOME LOANS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS
Shasta County, along with the cities of Redding, Anderson and Shasta Lake have landed a grant of $1 million to assist home buyers wishing to purchase a foreclosed home in designated neighborhoods. Most of Shasta Lake is eligible for the program as well as Anderson Heights and Ravenwood subdivisions in Anderson. The program has been dubbed C4-HAP. Interested home buyers should contact the Shasta County Department of Housing and Community Action at 1450 Court Street Suite 108 Monday through Friday from 8 a.m to 1 p.m. to add your name to the waiting list for loan applications.
Here are some important points:
- The program is only available until June 2010
- Purchase price is limited to $190,000 or less
- The assistance is a forgivable 0% interest silent second loan
- The loan is forgiven after 5 years
- Household income limits apply depending on household size
- Do not need to be a first-time home buyer, but you can’t presently own a home
- Property must be located in specific census tracts to qualify
- Buyer must occupy home as primary residence after purchase
- The average loan amount is expected to be $45,000
- Once the money is used up, there will be no additional funding
A single homebuyer can’t make more than $3,910/month. A family of 8 can make up to $7,370/month. The money allocated to this program will help roughly two dozen home buyers.
For more details, contact the following:
- Jodi White at City of Redding-225-4173
- Jessaca Lugo or Loree Byzick at City of Shasta Lake-275-7464 or 275-7463
- Torri Glasgow at City of Anderson-245-6431
The goal of the program is to help homebuyers purchase distressed properties which in turn helps prevent neighborhoods from blight caused by neglected vacant homes.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL REAL ESTATE SALES EXPERIENCE
Olney Creek Residents In New Floodplain Not Alone
INDUSTRY NEWS, LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR BUYERS, TIPS FOR SENIORS
A recent article in the LA TIMES reports tens of thousands of homeowners in Southern California are being required to purchase expensive flood insurance because FEMA has updated maps placing their homes in high-risk flood zones. Apparently, more than 150 cities and unincorporated areas in LA, Orange, Riverside, Ventura and San Bernadino counties have been notified of the new requirement.
Estimates peg the additional insurance premiums between $500-$1,700/year. Homeowners with a federally-backed mortgage (FHA, VA, Fannie Mae, Freddie Mac) will be required to purchase the costly flood insurance. More than half of all mortgages are federally insured or backed loans. Failure to purchase the insurance will result in lenders buying(forcing) the policy and billing the borrower for the policy which is usually at a higher cost than one purchased by the homeowner.
Hundreds of homeowners in south Redding along Olney Creek, east of HWY 273 have been notified the levee built about 30 years ago does not meet the revised height requirements to withstand a 100-year flood event. Property owners may be required to purchase pricey flood insurance this year. Cost estimates are comparable to those quoted for SoCal. A levee along the Santa Clara River in Oxnard was decertified just like the one in Redding, adding 1800 homes to a flood zone.
Property owners that own their property free and clear of loans can assume the risk by electing not to buy flood insurance. Others may hire a surveyor to certify the elevation of their property or home is above the designated flood zone (elevation certificate) if they believe they reside on higher ground.
Modern technology has allowed engineers to more precisely define limits of flood zones. FEMA feels they are doing homeowners a service by notifying them of a potential risk before disaster strikes.
The problem stemmed from flood maps that in some cases were more than 40 years old. In other cases, railroad berms identified on maps as providing flood protection have been eliminated. Local government agencies, including Redding, have asked the federal government for grants to fund engineering studies in affected areas to check the accuracy of the new flood designations.
Renters and homeowners in areas rezoned may want to contact FEMA for information on its National Flood Insurance Program. More than 90 insurance companies work with FEMA to offer flood policies. When purchased prior to a flood map zone change taking effect, the cost is substantially less.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS REAL LIVING
CORNER OF COURT AND PLACER IN REDDING
MORE THAN A QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Shasta County Real Estate Fraud Cases Discussed
LOCAL GOVERNMENT, REAL ESTATE PRACTICE, SHASTA COUNTY, TIPS FOR SELLERS, TIPS FOR SENIORS
Robert Angulo is the investigator recently assigned by the DA’s office to handle real estate related crimes.
Robert spoke to a group at the Shasta Association of Realtors weekly meeting Wednesday. The real estate fraud unit has been up and running for just a few months and is already handling 31 cases. Here is a summary of cases being investigated or prosecuted:
- Property management company being operated by individual that does not have a real estate license or a trust account to handle tenant deposits and rent. This case goes to trial in November.
- Another property manager that committed grand theft, embezzlement and grand theft from an elderly person. Amount lost was reported at $40,000.
- Person creating false deeds. This person first created a deed to get the property out of his name and into the name of his girlfriend because he was incarcerated and didn’t want his neighbor, with whom he had disputes, to take his property. He later created another deed to put his name back on the property. He used false identification to get the documents notarized. This is a felony.
- Florida loan modification firm took $2,700 from a county property owner for loan modification services but did nothing. Robert found out the Florida Attorney General was already involved in prosecuting this firm so no action will be taken locally.
- Craigslist-Nigerian scam artists are using properties advertised for sale on Craigslist to create rental ads. Potential tenants are baited with really nice homes for cheap rent if they would just wire the funds to the scammer. Of course the home is not for rent and the money will be lost once sent. If it’s too good to be true, it’s probably a scam.
Robert also did a cross-check of all the property management companies in the phone book and found 8 that were being operated without a real estate licensee. In fact, most of the real estate fraud investigated thus far involved unlicensed individuals.
He also encouraged those in attendance to contact his office if anyone hears of someone being victimized by fraudsters or sees an ad for loan modification services that require an upfront fee or if our clients have strangers knocking on their door asking about the home for rent or asking them to leave because the bank has foreclosed. These are all scams that are happening here and elsewhere across the state and country.
Robert can be reached at 530-245-6350 or rangulo@co.shasta.ca.us.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Pension Forum Enlightening
LOCAL GOVERNMENT, SHASTA COUNTY
Redding City Hall
I was invited to listen to a distinguished panel examining many facets of public employee pension plans in California. The panel included representation from Shasta County, City of Redding, CalPers, labor negotiators and a taxpayer advocacy group. The panel was provided 10 questions in advance regarding pension issues and were all given an opportunity to respond. The discussion lasted nearly 2 hours.
The first factoid that caught my attention was California is the only state that allows individual jurisdictions to negotiate retirement benefits for public employees. In all 49 other states public pensions rules are set by their legislatures. Over 2400 different entities from cities, counties, special districts, firefighters and police have negotiated individual pension packages for their public employees. This has created fierce competition among these entities that essentially bid up pension benefits to attract and retain qualified employees. CalPERS has devised many different pension plans to suit these various contracts negotiated between management and employees. Numerous different unions represent these various employee groups. That’s why police, firefighters and other public employees are well paid compared to their counterparts in other states.
Pension spiking was discussed and CalPERS typically audits an employees work history to make sure the final years pay was not spiked in order to maximize retirement benefits. Mike Warren’s pension was discussed and because the final year salary spike included a performance bonus, no violation of the law occurred. In the past, deferred vacation pay, sick pay, uniform allowances, educational funds, comp time and even marksmanship perks were added to final year salary so the employee could have their predetermined percentage of base pay spiked to increase their monthly pension benefit. These tricks are not available to rank and file employees but typically used by those in management positions.
The best solution to reign in retirement costs is delaying the age for retirement 5-7 years. As it stands, pension benefits encourage early retirement. This causes problems for actuaries that try to project future pension costs and also extends the time period health benefits must be paid by the employee or employer until the retiree qualifies for MediCare. Extending the retirement age would lower CalPers pension obligations by 50% according to the speaker representing California Foundation for Fiscal Responsibility.
Most agree a change in state law is needed so all pensions are changed at once eliminating the game of one-upmanship that got us to the current pension benefit levels. Changes would apply to new hires only. This will likely happen at the ballot box using the initiative process.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Study Concludes Walkability Adds Value To Homes
LOCAL GOVERNMENT, REDDING LIFESTYLES, SHASTA COUNTY
A recent report by Joe Cortright of Impresa, Inc concluded homes located in areas with above-average levels of walkability garner about $4,000-$34,000 more than houses with average levels of walkability. Walkablity is defined as those areas with a mix of common daily shopping and social destinations within a short distance.
Unfortunately, few, if any, Redding neighborhoods can claim above-average walkability. Retail/commercial areas were intentionally located away from residential housing due to planning decisions made decades ago. Thus, Redding has grown outward requiring more roads, infrastructure, fire stations and police officers to adequately serve our ever-expanding city limits . This growth pattern is known as urban sprawl.
Redding planners unquestionably laid out the city to be auto-centric. One must hop in the car to grocery shop, find a hardware store or visit a restaurant. Only in recent years has the planning department seen the value of allowing residential uses above commercial space. Past planning has resulted in the city core becoming a ghost town after business hours. Workers must leave downtown for one of many subdivisions that sprawl outward from the city’s core in all directions. Patronizing a business requires staying in town after work or making another vehicle trip back into town after going home. More recently, planners are open to mixing residential and commercial uses. Where feasible, living units can be added over street level commercial space. I heard, but have not confirmed, new buildings under construction downtown have residential units on the upper floor.
The study also found that a value premium for walkability was higher in areas with extensive transit systems. If you can live somewhere where having a car is optional, the walkability premium is higher. Even if you still have to use a car to get where you want to go, commute times are shorter if you live close to areas with mixed uses instead of homogeneous subdivisions with mazes of streets that discourage walking. I live in one of those neighborhoods and doubt I would visit the park I can see from my home if I had to walk the labyrinth of streets to get there. Fortunately, I have a gate in my back fence that opens across the street from the park.
The health benefits of walkingare not the main motivation of households that buy homes in areas with high walkability scores according to the study. City planners have given walking little respect when considering transportation methods. That certainly seems to be the case here in Redding. Change will be slow as long as gas prices are painless and public transportation is inconvenient. Connecting and expanding walking trails around Redding may encourage walkers and bicyclists to leave their cars in the garage. Summer and winter weather will likely be a deterrent for all but the most dedicated anti-auto crowd.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Mary Discusses Privatization, Public Pensions
LOCAL GOVERNMENT, SHASTA COUNTY
![Shasta_VOICES_Newsletter_July_2009[1]](http://movetoredding.com/files/2009/08/Shasta_VOICES_Newsletter_July_20091.jpg)
Local business groups funded a study of privatizationof public services in Shasta County. Mary Machado of Shasta Voices prepared the report which will be released Monday. Mary met with Realtors to highlight some of the findings contained in the report.
First, Mary met with administrators from City of Redding, County of Shasta and union representatives to hear their thoughts on privatization as a way to potentially save taxpayer dollars and bridge the ever-widening budget deficit. Perhaps in response to Mary’s efforts, Redding formed a committee composed of 5 citizens and all 5 city council members to explore privatization. Ironically, the city council will be the ones to review/approve their own recommendations. Very odd!
Mary cited Rancho Cordova, a new city east of Sacramento, as an example of a city that decided to privatize most city services except police protection. They are a model for the cost efficiencies of privatization according to Mary. They had a distinct advantage while forming their city in 2003 looking around at what works and doesn’t work with regard to structuring city government.
Mary demonstrated how a public employees salary cost pales in comparison to the total cost for that employee when health and retirement benefits, Workman’s Comp and other perks are added in. The total cost is nearly twice the annual salary. She used the Redding Convention Center staff salaries for this example. The city has had to kick in more than $1 million/year to keep the convention center in the black. She made the point that the center is only used 40% of the year and sits empty the rest of the time.
Pensions for police officers were enhanced to encourage early retirement because these officers were not as capable to carry out their duties as they neared their 50’s. The 3 at 50, or 3% of your salary for each year worked means a police officer can retire with nearly 90% of their highest salary after 30 years of service. One trick commonly played by those contemplating retirement is to convert sick time, deferred comp time and accrued vacation time just before retirement to inflate their lifetime pension. Pensions are based on the final year salary. This incentive has worked better than expected-many officers took early retirement and received generous payouts.
Mary also shared a list of local city and county employees that have pensions over $100,000. Some of the names were familiar like Mike Warren and Bob Blankenship. Others were not. Statewide, their are nearly 5000 public employees living comfortably on six figure pensions.
Mary has scheduled a lunch and learn seminar for September 24th where many speakers will discuss and answer questions regarding privatization.
Here is a link to the report:
http://shastavoices.com/Home_Page.html
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
CORNER OF COURT AND PLACER IN REDDING
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
Local Tax Assessor Panel Updates Realtors On Lowering Taxes
LOCAL GOVERNMENT, SHASTA COUNTY, TIPS FOR SELLERS
Leslie Morgan, Shasta County Tax Assessor, brought several members of her staff to discuss the impact the declining real estate market has had on property values. Appraisers have taken up the task of reviewing thousands of real estate transactions dating back to 2003 to determine if a lower assessment is in order. A lower assessment results in a lower tax bill. Homes, businesses, investment and commercial properties are all being reevaluated if they were purchased after 2002.
Proposition 8 (not the gay marriage initiative) requires county assessors review the assessments once a year to determine if the assessed value is reflective of current market value. The rules regulating how and when a reassessment is conducted are complex. Staff recommends property owners wait until July before requesting a review of their property value. Those properties determined to need a reassessment will be notified by mail. If your property has been overlooked, call the assessors office and make a formal request for assessment review.
One challenge discussed in conducting the appraisals is the lack of comparable sales data due to the slow real estate market. Leslie made it clear their is no easy way to adjust property values in mass due to the wide variety of properties we have in Shasta County. Even when prices were soaring upward, the rate of appreciation varied from one area to another within the county.
Last year the 15 staff appraisers reviewed roughly 5000 transactions and lowered values on about 10% of them. Staff expects to review 30,000 property transactions going back as far as 2003. Each appraisal cycle begins on the January 1 property tax lien date. The appraisers must complete their property reassessments by June 30th which marks the end of the county and state fiscal year. The appraisers determine the property value on the lien date, not the current date or the date the appraisal is requested.
Prop 13 fixes the base property value at the time of purchase which can only be adjusted upward by a maximum of 2%/year regardless of how much the value actually increases in a given year. Prop 8 requires the assessor review and lower the assessed value if property values decline below the current assessed value. They can then ignore the limits Prop 13 places on upward value reassessments when property prices escalate. Someone that is granted relief in the way of a lower assessed value and corresponding decrease in taxes can expect the assessor to raise the value when market prices recover.
Contact the assessors office with any questions at 225-3600.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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