In Our Backyard: Local Realtors Look Out for Your Wallet

Realtors want limits placed on retrofit requirements
Proposed legislation would put brakes on programs state can impose on home buyers

Jeb Bing, Pleasanton Weekly Staff, February 24, 2012, link

In a continuing effort to reduce consumers’ costs associated with purchasing a home, the California Association of Realtors is sponsoring Assembly Bill 1711, which will clearly define what constitutes an energy efficiency retrofit that would “unreasonably or unnecessarily” affect a home purchase.

Recently enacted legislation requires the California Energy Commission (CEC) to pursue energy conservation in a way that does not “unreasonably or unnecessarily” affect the real estate sales process.

However, the NAR says, the lack of a clear definition of “unreasonably or unnecessarily” fails to provide sensible limits on the programs that can be imposed on home buyers by the CEC.

The CEC is currently evaluating implementation strategies focusing on programs requiring installation of energy saving improvements at the time a home is purchased. Such programs, for example, can require home purchasers to pay for improvements that will never pay for themselves over the lifetime of the improvement. Additionally, the CEC is considering requirements that could add thousands of dollars to the up-front cost of a home.

According to the CAR, Assembly Bill 1711 (Galgiani, D-Tracy) will prohibit the state from creating a program that requires home buyers to pay out of pocket for energy improvements at the time a home is purchased or that would prevent a home buyer from closing escrow on time. The measure also requires that the costs of mandated improvements be recoverable over the lifetime of the improvement.

Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

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