North Bay Association Tackles Rent Control Ordinance in Santa Rosa, California

In the North Bay region of California, which counts Napa and Sonoma among its counties, agriculture and tourism are big—and so is the shortage of affordable and work force housing.

When Santa Rosa, the region's largest city, recently attempted to pass rent control and just cause eviction legislation, the 3,200-member North Bay Association of REALTORS® (NorBAR) joined forces with a strong coalition of business alliances to protect the rights of property owners—and to encourage government to meet the demand for affordable housing.

NorBAR does not deny that there is a shortage of affordable and workforce housing in the region; rents in Sonoma County have risen nearly 40% in the past four years. But denying apartment owners the ability to charge full market value for the use of their property, and limiting circumstances under which owner can evict a problem tenant, undermines basic private property rights, says Tracy Huotari, NorBAR's Chief Executive Officer. To solve the real problem, she notes, the city will have to allow development of more affordable housing.   

The issue had been brewing for several years, when in August 2016, the Santa Rosa City Council passed a permanent rent control and just cause eviction ordinance. The next day, NorBAR and a coalition it had formed with the California Apartment Association began collecting signatures to prevent it from being enforced. They were successful in halting the ordinance, only to have the Council place it on the ballot for voters to decide, in a special election in June 2017.

NorBAR turned to NAR’s Campaign Services Team for help; it had already contributed funds from its own Issues Mobilization fund, and secured a grant from the California Association of REALTORS®. In addition to a major grant, the REALTOR® Party’s Campaign Services Team provided focus groups and polling to determine the campaign's viability, identify voters and craft the campaign messaging.  The "No on C" campaign was both a get-out-the-vote effort and an educational force. "Our REALTORS® were deeply involved,” says Huotari, "they were out knocking on doors, registering voters, putting up lawn signs and making a big push on social media. Our coalition, 'Citizens for Fair and Equitable Housing,’ was amazing, uniting the chamber of commerce and groups from across many local industries. Its website, FairHousingForAll.com, remains a great resource." In addition to four targeted postcard mailings, door-to-door canvassers and TV, radio and online advertising, the 'No on C' campaign benefitted from the support of the influential local newspaper, The Press Democrat

On June 6, the ordinance was defeated by 52% of the vote.

The next step, says Huotari, will be sitting down with legislators and getting them to solve the real problems. "The bottom line is that we need to fix the supply shortage," she explains, noting that the REALTORS® will be working with local units of government to look at removing obstacles to affordable and workforce housing. "We've got a number of understanding legislators in office, and we'll continue to work hard and use our PAC funds in the local elections process to support even more."

Meanwhile, the success of the campaign is having an apparent impact beyond Santa Rosa.  For months, says Huotari, the rent control issue was being discussed in another nearby community, also within the North Bay Association's jurisdiction; it now seems to have "fallen off the agenda" in the weeks since the voters in Santa Rosa defeated the measure.

To learn more about how the North Bay Association of REALTORS® is protecting private property rights in the counties north of San Francisco, while keeping the focus on solutions to increase affordable and work force housing, contact Chief Executive Officer Tracy A. Huotari at 707-522-8169.

Beverly Hills/Greater Los Angeles Association REALTORS

When an extreme and aggressive anti-development measure landed on the ballot in Los Angeles early last year, the Beverly Hills/Greater Los Angeles Association of REALTORS® took action.  It requested a Land Use Initiative review through the REALTOR® Party.  The association also secured an Issues Mobilization Grant for a strong opposition campaign.  Then it joined forces with an unlikely ally: the LA Labor Federation.  Together, Labor and the REALTORS® led a coalition to defeat the measure—one which sought to hold development in one of the nation's largest cities to a standard established just after WWII. 

Measure S, explains James Litz, Government Affairs Director of the BHGLAAR, would have had a disastrous impact on the city, and set a dangerous precedent for years to come.  Proposed by a deep-pocketed organization seeking to protect its own view of an attractive landmark, the draconian measure would have stopped development completely for two years, and disallowed zone changes in perpetuity, effectively preserving an antiquated piecemeal code dating back to 1946. Beyond the obvious threat to the housing needs of contemporary Los Angeles, notes Litz, there were businesses to consider: "There's a good chance we'll be hosting the Olympics in 2024, and we've got to prepare.  Imagine restaurants being denied sidewalk seating by our paralyzed zoning code!"  

A counter-initiative called “Build a Better LA” was launched, and while not as restrictive as Measure S, it would have created further barriers to construction by raising labor costs on every development.  BHGLAAR submitted the text of both Measure S and Build a Better LA to the REALTOR® Party to review Land Use ordinances.  The report received back, says Litz, confirmed the REALTORS®' deepest concerns about the future of development in Los Angeles, and provided spot-on analysis in support of the opposition campaign that had already been mounted—by the Labor industry.

"Such an extreme proposition required an unconventional coalition," says Rusty Hicks, Executive Secretary Treasurer of the LA Labor Federation.  Acknowledging that Labor and Business historically don't see eye-to-eye, he adds, "In this case, the REALTORS®, having a foot in both camps, so to speak, served as an important bridge, and helped us to form an especially strong and effective coalition.  Their facilitation in bringing together other unlikely partners was key to our success."

The resources the REALTORS® brought to the effort were also invaluable, he says.  Beyond the legal analysis, they supported the campaign with major funding from the REALTOR® Party, and the active involvement of many BHGLAAR members.  "Our membership was clearly concerned about the high profile 'Yes on S' campaign, which had the benefit of a huge inventory of billboards across the city," reports Litz.  "If they were at all skeptical of teaming up with Labor, they still threw themselves into the coalition's campaign to defeat the measure.  They participated in phone banks, and put signs outside their homes and offices.  Above all, they engaged in an energetic grassroots social media campaign."  Television ads, an extensive door-knocking effort, and an educational website called GoesTooFar.com also boosted the opposition effort.

"We found that voter awareness was the key," says Litz.  "When we could reach people about the truth behind Measure S, their vote turned against it."  At the end of the day, the measure was defeated by 69% of the vote.

Says Hicks, "I've long argued that you don't ever know someone until you've fought with him.  As tried-and-true 'battle buddies,' Labor and the REALTORS® are now working together to establish policy that will create more housing and job opportunities in Los Angeles.  Who'd have thought?  In the end, it's a positive outcome from a dire threat to both our industries."

Litz adds, "Beyond eliminating the immediate threat, we've also been able to leverage our win, politically.  We've just bailed the City Council out of a serious situation, and now it's up to them to be responsive to the needs of the city.  They're on notice that they must establish a viable new Zoning Plan, and make progress on affordable housing and housing for the homeless.  It's still an uphill battle, but I think we're already seeing a glimmer of progress."

To learn more about how the REALTORS® of Beverly Hills and Greater Los Angeles are forging strong partnerships to protect and promote housing and business opportunities in their metropolis, contact Government Affairs Director James Litz at 310-704-2767.

 

Wyoming REALTORS® Derails Tax on Services Threat with Timely Advocacy

The Wyoming Association of REALTORS®  (WAR) is careful to use Calls For Action (CFA) sparingly, sending a few out each year to keep members in practice, but “never so many that they feel like we’re asking for help every time they turn around,” says Government Affairs Director Laurie Urbigkit. “Our members know that if they get a CFA from me,” she says, “it means the world is coming to an end!”  

Early in 2017, just such an extreme situation developed in the Wyoming statehouse, and when Urbigkit put out the call, the REALTORS® responded accordingly. The end of the world, in this case, was the threat of a tax on all services that had suddenly appeared on the agenda of the House Revenue Committee, without debate or public testimony. The bill bore the benign title, ‘HB 243 School Finance-Capital Construction Funding,’ but would have imposed a comprehensive sales tax on services provided by all professionals, from barbers to babysitters.  For the real estate industry, it would not only have added to an agent’s commission, but to the appraisal, title insurance, closing fee, loan fees, inspections, repairs, surveys and legal fees.  WAR was keenly aware that, in addition to burdening the operation of real estate brokerages as small businesses, these added costs would effectively block many first-time home buyers from the market.

The association had actually been keeping an eye out for such threats to the industry. In recent years, as Wyoming’s mineral-based economy has been driven down by low oil and gas prices, explains Urbigkit, the state’s general revenue has been substantially reduced, putting pressure on the Revenue Committee to find sources elsewhere. In fact, this bill had died in committee just last September for lack of a motion, “because no one would touch it,” she says. But the committee had experienced a turnover in seven-out-of-nine seats since November’s election, and the chairman decided to revisit the proposal.

Urbigkit leapt to action, alerting all WAR members who are constituents of Revenue Committee members that it was time to make their voices heard. “The REALTOR® Party Hub email communications system is great,” she says. “I can target our members by committee, or by district, and engage them very easily in our advocacy efforts.”  Just as Urbigkit is careful not to ‘cry wolf’ with too many Calls for Action to her members, she also guards the Wyoming legislators from undue bombardment. In order to protect the value of their messages, her members are only asked to contact representatives of their own districts. “Our legislators know that when the REALTORS® are concerned, they’re getting messages from their own constituents, and that carries much more weight than flooding their in-boxes indiscriminately.”       

In response to the urgent CFA regarding the tax on services, a concentrated blast of emails to the House Revenue Committee ensued, complementing WAR’s in-person lobbying efforts. The bill was defeated in a 0-9 vote. “We’re very fortunate to have tools like this at our disposal!” says Urbigkit, adding, “The technology is so precise and effective, and our members are right there with it.”

To learn more about how Wyoming REALTORS® are protecting the real estate industry and keeping homeownership accessible for first-time buyers, contact Laurie Urbigkit, Government Affairs Director of the Wyoming Association of REALTORS®, at 307-851-1191.

Oklahoma City REALTORS® Improve Public Schools & Prevent Urban Flight

Public schools in Oklahoma were struggling.  Nationally, the state ranked 49th in per capita spending for education, and in Oklahoma City, the public school district received a grade of “F” from the state.  As any Oklahoma City REALTOR® could tell you, the resulting flight from the public schools was already having a detrimental impact on local communities, and would eventually threaten the economic viability of the city itself.  But things are looking up:  in the November election, citizens voted in favor of a $180 million bond to pay for school building maintenance, technology, and transportation.  Aided by an Issues Mobilization Grant from the REALTOR® Party, the Oklahoma City Metropolitan Association of REALTORS® (OKCMAR) led the coalition that supported passage of the bond.

Gary Jones, OKCMAR’s Government Affairs Director, explains that cuts to the school budget were a result of Oklahoma's economic downturn caused by the decline in oil prices.  “Our school year begins August 1, and our schools were struggling without functioning air conditioning, let alone a dependable fleet of buses or any new technology in the classrooms,” he says.  “The need was huge, but so was the challenge of tacking a bond measure on to a presidential election ballot, when voters tend to dismiss such expenditures with a ‘no’ at the polls.”

Raising awareness among the voting public was going to be key.  Although the proposed school bond would not affect property taxes or millage, and initial polling was encouraging, the coalition formed by the Chamber of Commerce to improve the state of the school system didn’t have much time to get the word out.  Maintain OKC Schools, as the group is called, planned an energetic campaign to approve the bond, and OKCMAR took the lead by tapping in to the REALTOR® Party’s Issues Mobilization Grant program.

The grant process, says Jones, was not only user-friendly, but helpful:  “The level of detail required by the application caused the coalition to re-think its campaign strategy as it determined the best way forward,” he says.  NAR’s Campaign Services team provided valuable feedback on the proposal created by the local firm retained by OKCMAR to design the campaign.  “We were very grateful for the funding and for that expertise!” says Jones. 

The grant from the REALTOR® Party was used for a highly targeted direct mail program, focusing on voters who had supported school bonds in the past, and reminding them about the current measure on the ballot.  “We got lucky in that the measure was placed on a separate ballot, which happened to be printed on yellow paper,” notes Jones, explaining that the ‘YES the Yellow Ballot’ slogan with an image of a school bus made for powerful campaign branding.  OKCMAR engaged its members in a compelling get-out-the-vote campaign, and many brokers posted bright yellow signs outside their offices.

The bond measure was issued as three separate ballot initiatives: school building maintenance, technological enhancements and transportation equipment.  Although all three passed, the votes were close enough to show Maintain OKC Schools that its efforts were essential to the victory.  “We're now working to create change on the School Board,” says Jones.  “With the bond resolution in place, we’re optimistic that the right leadership can bring about the transformation we need for Oklahoma City’s schools.”

To learn more about how Oklahoma City REALTORS® are helping to improve their region’s school system with the help of the REALTOR® Party, contact Gary Jones, OKCMAR’s Government Affairs Director, at 405-641-1921.

Central Oregon Restores Balance to City Council with IE Program

The city of Bend, Central Oregon's principal metropolis, was already growing at a rapid rate when Men's Journal singled it out in 20

15 as one of the "Ten Best Places to Live Now." The latest projection is that Bend will gain approximately 30,000 residents in the next twenty years, a statistic supported by the current reality of about five people arriving to live in Bend every day.  Yet, responsible growth in Bend has been deterred by one of the more restrictive land use systems in the country, and by a City Council that was largely anti-growth and out of touch with issues affecting its citizens. The recent election presented an opportunity for much-needed change, and the Central Oregon Association of REALTORS® (COAR) threw all its weight behind a REALTOR® Champion who would bring balance and sound judgment to the governing body. 

Tyler Neese, COAR's Government Affairs Director, explains why the association backed candidate Justin Livingston with funds from its own PAC as well as a substantial Independent Expenditure grant from the REALTOR® Party. "With this type of growth taking place—and a further boom in population on the horizon—it’s critical for us to have leadership in the community that understands key issues like land use, transportation and affordable housing.  Justin is passionate about making Bend an affordable place to live and raise a family. He's had successful careers in real estate, manufacturing and construction. He has served on several municipal committees, focused on matters from street maintenance to affordable housing. His depth of understanding and his connection to the community are just what Bend needs."

Oregon is one of the few states that allows independent expenditure campaigns to be coordinated with the candidate, which, Neese points out, enabled COAR to make the most efficient use of the support it received from the REALTOR® Party. "We were able to provide resources and support where Justin's campaign needed it most," says Neese, listing radio ads, Facebook and pre-roll video as the big budget items funded by the grant. 

The National Association of REALTORS® identified target sites for the online advertising.  It also advised COAR on strategic timing for some of the campaign's communications, which Neese notes is especially important in a state like Oregon, where voting is all conducted by mail. "You want to get your message in front of your target universe at the critical moment, but about one-third of voters send in their ballots on the first day, another third sometime mid-cycle, and the last third drop them off at the last minute. NAR's strategists had the sophistication it takes to understand these complexities of voter behavior, and helped us plan accordingly."  

When the ballots were counted, Justin Livingston had handily won a four-year term on the Bend City Council, receiving 76% of the vote.  COAR had also backed another candidate for the City Council with funds from its RPAC and a more modest Independent Expenditure campaign, as well as RPAC support for the re-election of one incumbent. Both candidates also won their races.  "We're optimistic," says Neese. "It was critical to restore balance to City Council. We're proud to have helped that happen, with the support of the REALTOR® Party. We look forward to smart growth, fiscal responsibility, and sound solutions to the challenges our growing city faces.  It's a tall order, but the right people will be at the table to make it happen."

To learn more about how REALTORS® in Central Oregon are strengthening the city of Bend and helping to achieve balance on its City Council, contact Tyler Neese, Government Affairs Director, at 541-382-6027.

South Padre Island REALTORS® Uses Land Use Initiative to Overturn Short-Term Rental Registration Ordinance

Located off the southernmost tip of Texas, South Padre Island is such a popular resort area that when a new Short-Term Rental Registration Ordinance was adopted by its City Council last year, it affected the vast majority of the island's residential properties. Thanks to the REALTOR® Party’s Land Use Initiative, the South Padre Island Board of REALTORS® (SPIBOR) was able to overturn several provisions of the ordinance it found overly restrictive. In doing so, not only did the 120-member board succeed in protecting the rights of property owners, but it gained new respect from the city, which now looks to the REALTORS® as the voice of real estate in the community.

Lindsey Martinez, SPIBOR's Association Executive, admits that as a relatively new board, she and her team were caught off-guard by the new ordinance; fortunately, their field rep from the Texas Association of REALTORS® (TAR) had their backs. “He was super-involved,” says Martinez, “and he clued us in to how detrimental these short-term rental ordinances could be.”  For her part, she quickly got up to speed by reading the standards established by the national and state associations, and with the guidance of the field rep and Government Affairs staff at TAR, applied to the REALTOR® Party for a Land Use Initiative review. 

SPIBOR submitted the approved ordinance to Robinson & Cole, the law firm retained by the National Association of REALTORS® to advise state and local associations on land use legislation.  Martinez was amazed by the speed and thoroughness of the response.  “We received the review back much sooner than expected, and it was perfectly clear and easy to follow,” she says. “Not only that, but they caught a number of issues that we hadn’t noticed.  For a small board like ours, with limited resources, the Land Use Initiative provided invaluable expertise."

Armed with the legal review, SPIBOR met informally with members of the City Council, who were also impressed by the value of the Robinson & Cole comments. The situation wasn’t adversarial at all, notes Martinez, but more about opening lines of communication. “While we would have preferred to have had the entire ordinance repealed,” she says, “it wasn’t feasible at that point, so we focused on issues of safety and fees. They were very receptive.” In fact, reviewing the objections together, she recalls, the Council Members said about one after another, ‘Hey that wasn’t our intent!’

All eight members of SPIBOR's board of directors joined Martinez at the City Council meeting on October 19, when the amendment proposing its requested changes to the ordinance was on the agenda.  Another REALTOR®, one of several who are property managers, spoke during the public comments. The amendment was easily approved, and the City Attorney commended the REALTORS® for their public-spirited assistance in what he called “clean-up and clarification” of the ordinance.

SPIBOR’s success in amending the Short-Term Rental Registration Ordinance benefits all the property owners of South Padre Island, including the many who live elsewhere and may not be paying attention to local politics and policies. The victory has also boosted the small association’s confidence in its own powers of political advocacy. In upholding NAR’s Core Standards, SPIBOR was already working hard to be the island’s voice for real estate by posting market statistics on social media and drafting articles for the local newspaper. But thanks to its involvement in revising the problematic ordinance, the city now regards the REALTORS® as valuable partners. “The day after the October City Council meeting, the City Manager, who is new in the position, invited us to meet with her; moving forward, she’ll be looking to us as a resource,” says Martinez, noting that Council Members also expressed the hope that SPIBOR would continue to be involved in city business.

“We have such great leaders at TAR, and we could not have done this without their hard work and guidance—or without the resources of the REALTOR® Party,” she says. 

To learn more about how the South Padre Island Board of REALTORS® used REALTOR® Party resources to protect the rights of rental property owners in its small resort community, contact Association Executive Lindsey Martinez at lindsey@spirealtors.com or 956-772-1940.