See all new real estate laws passed in the 2011-2012 state and federal legislative sessions.

Topics:

      1. Deduction requirements for energy efficient commercial buildings modified
      2. Equal access to HUD programs for lesbian, gay, bisexual and transgender (LGBT) individuals
      3. Commissioner authorized to obtain evidence by court order in response to complaint regarding licensee
      4. Commissioner no longer to provide notice of noncompliance with education requirements
      5. Violation of licensee duties will result in suspended or revoked license
      6. Commissioner may deny renewal of license in response to disciplinary action


Reported by Carrie B. Reyes

This notice modifies former guidelines for tax deductions on recently built energy-efficient commercial buildings.

Deduction requirements for energy efficient commercial buildings modified

Internal Revenue Code §179D

Amended by Notice 2012-22

Effective date: March 12, 2012 – December 31, 2013

Energy-efficient improvements placed in service on commercial buildings between February 24, 2012 and December 31, 2013 qualify for tax deductions if the improvements show a 50% total energy reduction compared to minimum set requirements.

If an energy-efficient building does not meet the 50% energy reduction standard, a partial deduction may be taken if energy savings total at least:

  • 25% for interior lighting systems;
  • 15% for heating, cooling, ventilation and hot water systems; and
  • 10% for the building envelope; OR
  • 20% for interior lighting systems;
  • 20% for heating, cooling, ventilation and hot water systems; and
  • 10% for the building envelope.

This partial deduction cannot exceed $0.60 x square footage for each energy efficient system. Further, the total partial deductions cannot exceed the difference between $1.80 x square footage of the building and the amount of energy efficiency deductions allowed for all prior taxable years.

Editor’s note – This change allows energy-efficient buildings to qualify more easily for partial deductions, as the new notice increases the minimum for interior lighting systems and decreases the minimum for HVAC and ventilation systems, which are more difficult to make energy-efficient than lighting systems.

 



Reported by Carrie B. Reyes

This rule clarifies the Department of Housing and Urban Development (HUD)’s programs are available to all eligible individuals regardless of their sexual orientation, gender identity or marital status.

Equal access to HUD programs for lesbian, gay, bisexual and transgender (LGBT) individuals

Amended by Office of the Secretary of the HUD

24 Code of Federal Regulations §§5, 200, 203, 236, 400, 570, 574, 882, 891, 982

Effective date: March 5, 2012

The following updated definitions apply to all Department of Housing and Urban Development (HUD) and Federal Housing Administration (FHA) programs and lenders, and to the regulations for Housing Opportunities for Persons with AIDS (HOPWA), Supportive Housing for the Elderly and Supportive Housing for Persons with Disabilities programs:

  • sexual orientation is defined as homosexuality, heterosexuality and bisexuality;
  • gender identity is defined as actual or perceived gender-related characteristics;and
  • family now includes households regardless of actual or perceived sexual orientation, gender identity or marital status.

Eligibility for HUD housing programs is determined without regard to actual or perceived sexual orientation, gender identity or marital status.

Inquiries regarding sexual orientation or gender identity to determine eligibility for HUD housing programs are prohibited, except when the information is needed to determine the minimum number of bedrooms HUD’s housing programs provide each household in temporary emergency shelters.

HUD plans to implement education and outreach on this rule to recipients of HUD funding.

For steps on how to pursue a discrimination claim under this rule, see HUD’s guidelines.

Editor’s note – first tuesday supports these changes as positive steps forward in providing fair housing for all. [For more information on first tuesday’s take on these new regulations, see the February 2012 first tuesday article, HUD acts to house lesbian, gay, bisexual and transgender (LGBT) people.]



Reported by Mary Balash

The Real Estate Commissioner may now obtain evidence through a court order in response to receiving a complaint regarding the actions of a real estate licensee.

Commissioner authorized to obtain evidence by court order in response to complaint regarding licensee

Business and Professions Code 10079
Amended by S.B. No. 53

Effective: January 1, 2012

In addition to investigating the actions of a real estate licensee for specific acts upon receiving a verified complaint in writing from any person, if a licensee refuses to obey a Department of Real Estate (DRE) subpoena, the Real Estate Commissioner (Commissioner) may apply to the superior court for an order requiring the licensee to appear before the Commissioner or a representative of the Commissioner to show documentary evidence or give testimony regarding the matter under investigation.

 



Reported by Mary Balash

This following amendment repeals existing law regarding the Real Estate Commissioner’s notice to real estate licensees that have not completed their continuing education requirements.

Commissioner no longer to provide notice of noncompliance with education requirements

Business and Professions Code 10156.2
Amended by S.B. No. 53

Effective: July 1, 2012

Existing law permits the Real Estate Commissioner (Commissioner) to advise real estate licensees who have not complied with continuing education requirements of their rights to operate before the expiration of their license.

The Commissioner may advise licensees of an extended period for compliance or advise the applicant that their right to operate under the prior license will expire either on the regular expiration date or five days from the date a notice that supplies this referenced advice is mailed, whichever is later. The commissioner must include their reasoning and the right of the applicant to request a hearing.

The amendment will render this law inoperative on July 1, 2012 and repeal this law as of January 1, 2013.

 



Reported by Mary Balash

This revision prevents any person with a real estate license from violating laws which govern the scope of that person’s duty as a licensee.

Violation of licensee duties will result in suspended or revoked license

Business and Professions Code 10176
Amended by S.B. No. 53

Effective: January 1, 2012

Any person acting in violation of their duties required by licensing laws may have their license temporarily suspended or permanently revoked by the Real Estate Commissioner (Commissioner) upon receipt of verified complaint in writing for any of the following crimes:

  • making a substantial misrepresentation;
  • making false promises of a character likely to influence another’s behavior;
  • making false promises or continued misrepresentations through real estate salespersons;
  • acting on behalf of more than one party in a transaction without consent of all parties;
  • commingling with his or her own money or property or any money or property held for others;
  • receiving compensation for the authorization of a licensee to perform any acts described in Section 10131 detailing the duties of a real estate broker where the agreement does not contain a definite date of termination;
  • accepting any undisclosed amount of compensation;
  • using provisions allowing the licensee an option to purchase in an agreement in which the licensee receives compensation;
  • committing any fraudulent conduct;
  • obtaining a signature of a prospective purchaser without first having written authorization that the prospective property is for sale, lease or rent;
  • failing to disburse funds to the lender or to any other authorized commitment during the mortgage loan transaction; or
  • intentionally delaying the closing of a mortgage to increase costs to the borrower.

Any of these actions are a violation of the person’s license if it occurs during the scope of the person’s duties as a licensee.

 



Reported by Mary Balash

This amendment allows the Real Estate Commissioner to delay or deny the renewal of a real estate license as a disciplinary action.

Commissioner may deny renewal of license in response to disciplinary action

Business and Professions Code 10177
Amended by S.B. No. 53

Effective: July 1, 2012

If the Real Estate Commissioner (Commissioner) denies or delays the renewal of a real estate license in response to any pending disciplinary actions against a licensee, the expiration of the real estate license is on hold until the pending action is final, or until the licensee voluntarily surrenders the license, whichever is earlier.