C. Transaction & Regulatory Committee – Greg Galli, Chair
D. Land Use & Environmental Committee – Shari Setser, Chair
E. Distressed Property Task Force – Sharon Bowler, Chair
III. Member Mobilization Report – DeAnn Kerr
IV. Private Transfer Fee Update – Darnella Barnes The Federal Housing Finance Agency (FHFA) released their long awaited final rule on private transfer fees (PTF). The final rule is not substantively different than the proposed rule; however, it does include minor changes advocated for by C.A.R. FHFA removed the 1,000 yard requirement under the direct benefits section of the rule and instead offers a two-tier test. First, fees can be a direct benefit if property is open to the general public and is directly adjacent to the burdened community. Second, transfer fees may apply to more distant properties if said properties are primarily for the benefit of the burdened community. The rule also grandfathers in PTF that were created prior to February 8, 2011.
C.A.R. opposes private transfer fees and has continuously advocated they be prohibited. In a series of letters to FHFA, C.A.R. argued that private transfer fees increase the cost of homeownership and do little more than generate revenue for developers, investors, and environmental groups and typically provide no benefit to homebuyers.
V. REO Initiative Update – Terry Wunderlich On February 27 the Federal Housing Finance Agency (FHFA) announced a pilot program to be operated by Fannie Mae to sell nearly 2500 foreclosed properties in six hard hit foreclosure states for the purpose of providing rental housing. This is the first pilot project to be offered in the Obama Administration’s plan to expedite the disposition of foreclosed properties held by Fannie Mae, Freddie Mac, and FHA.
Applications for pre-qualification for investors began on February 1. The latest announcement begins a further round of qualification with potential bidders required to demonstrate financial capacity, management capabilities and other qualifications. Only fully qualified bidders will be allowed to bid on pools ranging from 99 properties in Chicago to more than 600 in Riverside/San Bernardino/Los Angeles.
C.A.R. continues to express the opposition of members from around the state about whether this pilot should be conducted at all in areas with diminished REO inventories, making the point that owner occupants and small investors should have more assistance to take advantage of foreclosed properties. FHFA announcement and further details on the pilot