Dept of Real Estate issues fraud warning on Loan Mod’s

Dept of Real Estate issues fraud warning on Loan Mod's

July 2nd, 2009

The DRE recently issued a fraud warning alerting consumers about loan modification scams and informing consumers of what they can do to protect themselves. The alert is available in both English and Spanish. Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations. In addition, since last October, the DRE has filed more than 200 Desist and Refrain Orders. A list of the companies and persons the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp.

It is worth noting that not all firms who collect advance fees for loan modification services do so illegally, the DRE said. In general, only licensed real estate brokers and attorneys operating within the scope of their license may collect advance fees. Real estate brokers must have their advance fee agreement reviewed by the DRE prior to its use to ensure it is compliant with real estate law.

C.A.R. also has learned of what appears to be a loan modification assistance program and lead generator, from a company using the legislative bill number 3648, that looks as if it's a government entity, complete with a misleading seal closely resembling a governmental seal but that is not affiliated with the government. C.A.R. cautions all members to be on the alert for schemes seeking funds from REALTORS® or consumers with no value, or that may be misleading or unlawful. More info

California Department of Real Estate - Fraud Alert [DRE.Ca.Gov]

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Daly's Draconian Renters Relief Package Passes - Mayor veto coming

July 2nd, 2009

It's basically on Beven Dufty and Sophie Maxwell who does not have to vote for now...to make sure it does not end up in a veto-proof vote. I have no problem with certain aspects of rent control (although there's a decent argument that it hurts more than it helps) - but this measure weights all the burden, including the burden of proof on one end of the population so completely I cannot believe it's even legal. Sane people do not just think that a tenant who opts to work half time - or ends up with half their income coming from under the table is not going to apply for a reduction in rent and get it - with no recourse on the property owners part...uh, where's the sanity in that?

Oh yeah, it's a Daly proposal what was I thinking...calling for sanity.

Rent Plan Promises Relief - to Lawyers [SF Buisness Times]
Proposed Laws for SF Renters + Mayor Weighs In [SFHomeBlog]
Beware of Supervisors Bearing Gifts - Jeff Woo [SFGate]

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Board to Vote on Daly's Renter's Relief Tuesday June 23rd

July 2nd, 2009

Supervisors Will Vote on Renters Economic Relief Package June 23. Vote Delayed Pending FPPC Decision on Maxwell Conflict. The Government Audit & Oversight Committee approved the Renters Economic Relief Package forward at its hearing on May 28 and forwarded it to the Board for a full vote on June 23. The committee adopted some amendments to the package, most significantly limiting the rent increase suspension to periods when the unemployment rate dips below 5%. The full Board vote was delayed to June 23, so that the Fair Political Practices Commission can issue a written decision as to whether or not Sup. Sophie Maxwell-a landlord who usually votes pro-tenant-can vote. Maxwell sought to be recused but there is some dispute as to whther or not she has a conflict of interest under state laws. If the legislation is to survive a Newsom veto, then Maxwell must be able to vote (and then vote for it). Maxwell is typically the 7th vote and Sup. Bevan Dufty would also haveto support it to reach the 8 votes needed to override a Mayoral veto.

The package of amendments to the city's rent control law consists of three parts:

•Suspend any rent increases which will cause a tenant's rent to exceed 33% of their income. This provision expands the law's existing provision which enables the Rent Board to suspend rent increases based on "tenant hardship" by expanding when a tenant can apply for hardship and defining hardship as any rent increase which would cause a tenant's rent to exceed 33% of their gross income.

•Expand the rights of tenants to add roommates to help pay the rent. This provision will let tenants bring in roommates so that the rent will be more affordable. The number of roommates would be limited by San Francisco Housing Code provisions which establish occupancy limits based on the size and number of bedrooms in an apartment. Currently landlords are able to limit the number of tenants to levels below what the law allows.

•Limit the amount of "banked" rent increases which can be imposed in any one year. Current law allows landlords, to "bank" annual rent increases and impose them all at once at a later date, often resulting in rent increases of 20% or more. This provision will limit these banked rent increases to no more than 8% in any one year.

Supervisors will vote on Renters Economic Relief Package [SF Tenants Union]
Proposed Laws for SF Renters + Mayor Weighs In [SFHomeBlog]
Beware of Supervisors Bearing Gifts - Jeff Woo [SFGate]

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New Ban on Permanently Installed Wooden Utility Ladders

July 2nd, 2009

Wooden fixed utility ladders are now illegal in San Francisco. These ladders were commonly added to buildings constructed in the City during the 1930's and earlier. They were never part of a building's fire escape system; but they often were installed as a ‘convenience' to building owners who wanted roof access without bringing a portable ladder to the site.

These ladders are now prohibited on residential buildings and must be removed with a proper building permit (click here for ordinance text).

General Contractors Inspection Service [GCIS] Ordinance Amending the SF Housing Code [SFGov.org]

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2009/2010 Property Tax Appeals Close August 28th 2009

July 2nd, 2009

If you believe your home may be eligible for a reduction in property taxes based upon a decline in value, there are two ways to go about it. An informal review by the Assessor's office and/or a formal appeal with Assessment Appeals Board. The formal appeal, can be a complicated and time consuming but may be worth the effort for the savings in property taxes. Typically, the Assessor's "valuation date" is January 1, 2009 and any sales comparables submitted must have closed before March 31, 2009.

Very generally (it all depends on the neighborhood and other details), homes purchased 2006 through mid-2008 probably have the best case for property tax reduction. The less affluent areas of the city typically peaked in value around 2006 and the more affluent in 2007 - 2008. Declines from peak value generally run in the 10% to 30% range, with the less affluent southern neighborhoods being hit with the largest reductions.

If your appeal is successful, the reduction in assessed value only applies to the 7/1/09 - 6/30/10 tax year. A decline-in-market appeal is only good for 1 year, the year for which it is filed. You have to refile every subsequent year.

Informal Review
The Assessor's Office is now accepting, through 8/28/09, "Requests For Informal Review Of Assessed Value" for tax year 2009/2010. This applies only to single-family dwellings, residential condominiums, townhouses, live-work lofts and cooperative units. The SF Assessor's website offers information regarding Decline-in-Value Informal Reviews:
SF Assessor's Office Forms and FAQs

Formal Appeal
The next open formal appeal filing period for San Francisco will be July 2, 2009 to September 15, 2009 - to appeal the 2009/2010 assessed value of your property. A formal appeal can be made for multi-unit and commercial properties, as well as for houses, condos & cooperative units.These 2 websites offer details regarding the filing of a formal appeal - the instructional videos are highly recommended for those who wish to proceed:
SF Assessment Appeals Board
Informational Videos on Property Tax Appeals

Warning on Scams
There are a number of property-tax-appeal service companies, who have been sending out their solicitations on stationery that suggests a government agency affiliation. SF Assessor-Recorder Phil Ting has stated the following:"We've received reports from dozens of taxpayers who have received a letter from companies offering to facilitate the property tax reassessment for $179 [or more]. This is unnecessary and deceptive. Taxpayers can fill out a simple, one-page application for a review of their property in my office, free of charge, starting on April 15. There is no need to pay for this service." Many of the solicitations received by San Francisco homeowners may be illegal. More on this subject:
Home Reassessment Scams a

Apply for Informal Review of Assessed Value for 2009-2010 Tax Year [SFGov.org]
Peak Value vs Current SF Value Feb 2009 [SFHomeBlog]
Revised: Peak Values vs. Current SF Prices - Single Family Homes [SFHomeBlog]

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