Home Sale Ordinance Brings Opposition
By Jean McLeod — Wednesday, November 4th, 2015
Realtor Cindy Diaz-Telly warned “If the seller refuses (the inspection) it can cause an escrow to fail...it brings up red flags to the lenders” regarding the new Home Sale Ordinance. An ordinance regarding home sale requirements has once again brought local realtors to the Fillmore City Council Meeting. They had shown up to the original scheduling of this item on October 27, 2015 but were not notified of the meeting's cancellation. The cancellation was a result of agenda not being made public in the legal timely manor. City Manager David Rowlands stated it was the responsibility of Patrick Maynard to post it, but there was some confusion on what the legal timely requirements were. The new ordinance, Humane Living Standards Residential Inspection Program, has local realtors in strong opposition. A card mailer was sent out last week along with robo calls asking for the publics’ input on the ordinance. The Council has changed the original ordinance draft and it now reflects that the housing inspection is voluntary. But realtor Cindy Diaz-Telly countered by saying the added red tape causes problems stating, "If the seller refuses (the inspection) it can cause an escrow to fail...it brings up red flags to the lenders." She continued stating she is already seeing pushback on sales and told the Council the realtors encouraged the council to work together with them, but that they did not reach out to the realtors before moving forward with the ordinance. She made the point that it was a code enforcement issue, not a real estate issue adding that real estate is the leading factor in economic recovery in Fillmore and this is harming that recovery. Realtor Dennis Goldstein spoke of the data that was sent to the Council which showed percentages of homes now built and the percentages 35 years in the future and questioned, "How effective is this ordinance going to be?" He ended with saying there are may things a city can do such as code enforcement. Real Estate Broker D.J. Ward VCCAR President told the Council, "We're encouraged to disclose" all issues related to the property and "the ordinance, although well intended, will create problems" financially with the sale. He explained that the buyers and sellers often negotiate the price when property needs improvements or changes, adding, "We feel it is a burdensome ordinance that is not in the best interest for a percentage of Fillmore." Attorney Neal P. Maguire with Ferguson, Case, Orr, Peterson L.L.P. spoke of the problems with a Point of Sale Program such as the ordinance, stating that it often comes with incomplete reports especially with older homes and the cities often shift the problem to the homeowner when the problem should stay with the cities regarding the property history. The ordinance states the City of Fillmore has 14 days to submit a report and Maguire felt that is too long, saying a two day period would be more appropriate and that there should be a penalty if the report is not given in a timely manor or the property sale should be allowed to move forward without it. Fillmore Real Estate Broker Evaristo H. Barajas, who formerly served as Mayor of Fillmore, addressed the Council stating the "human living conditions" are unacceptable. "Fillmore has half the mean income of Ventura County....when on the Council we worked on making it easier for the people of Fillmore....have you thought about the people living in those homes?" He continued by informing the Council the vacancy rate in Fillmore is zero and that the Council should be thinking of ways to provide housing. "This is survival for some people...you're approaching it the wrong way...it's human survival." City Manager Rowlands responded, "What's the right thing...what's the fair thing to do?" City Attorney Tiffany Israel was asked what experience her law firm has dealing with such ordinances and she responded the programs are a success. Councilwoman Carrie Broggie thanked the realtors for their coming forward to speak and said that she realized it might be an inconvenience to the buyer and seller, but "it is a violation of the law" and the Council "can't turn a blind eye when they know what is going on." Councilman Rick Neal stated he had heard from the public and they told him they were happy with the ordinance. He added that he agrees with having a shorter time to submit the reports to the seller, that it would be better than the 15 days the ordinance now requires, and that there should be some relief for the seller if it not done in a timely manor. Councilwoman Diane McCall said she also spoke with the public on the ordinance and that not one person was in support of it. "I'm not for it.....it infringes on ownership rights....this is voluntary, so we're not accomplishing what we're trying to do." She continued that the City needs to step up code enforcement and she understood that is was well intentioned. "At what point do we draw the line...we don't have enough housing for people to live." McCall ended with, "If this were to be brought to the public for a vote it would be voted down." Mayor Douglas Tucker stated that his interactions with the public regarding the ordinance was about half in favor and half opposed. Tucker then mentioned extreme conditions such as 20 people living in a one bedroom house and spoke of unethical realtors showing homes before the foreclosure process. He mentioned the Brown Act and its requirement for open public comments and that the discussions were helpful, "We've listened to the realtors, I think we've done a good job of listening....I think this ordinance does a good job." McCall then interjected, "We haven't really spent a great deal of time on this, with what--three meetings? I would like a subcommittee to research the impact on the real estate market." Neal responded he did not want a subcommittee, "I'm convinced how I feel about it...the robo calls and mailers were misleading." Broggie said she sees it as a tryout with it having a sunset clause in 18 months which Tucker agreed saying "....the 18 months give time to see how well it works." Neal asked to bring it to a vote, which ended with a 3-1 decision and McCall the only No vote (Council Member Manuel Minjares not in attendance). Another item on the agenda was the proposed light signal on Highway 126 and Mountain View. It seems that for every plan check submitted to Caltrans a new item is required by the State. The plans have been submitted three times. This last time two additional items have been added that were not part of the original plans. A 140' retaining wall 5' high on the northeast corner along Hwy 126 which needs surveying, designing and a geotechnical report and will take approximately 8 weeks, is now required. This means they will not break ground until 2016. Police Chief Dave Wareham announced a town hall meeting to coordinate with Santa Paula, Fillmore and Piru to discuss El Nino and the safety measure being prepared. The date is November 17, 2015 6p.m.-8p.m. at the Veterans Memorial Building, 511 Second Street, Fillmore. Wareham also commented of a tragic crime which happened on Monday, November 2, on the 900 block of 3rd Street. A man was fatally stabbed with a knife. 32 officers are investigating the crime and the Sheriffs Department has received a great deal of cooperation from the public. |