Local Changes

El Dorado County Measures

Prop 60

Prop. 60
, alongside 90 and 110, allows homeowners to transfer the year of their current property to any replacement residence. While there are a few caveats, this regulation is all about Tax Relief for Homeowners—contact me with any questions.

As your home is one of the biggest and most important investments you’ll make, it’s essential to be aware of local real estate trends and conditions. That’s where I can help you. As a licensed agent with RE/MAX Gold—Cameron Park, I’m both your neighbor and Realtor in this county.

Home values have been on the rise recently, as you’ll see below, but for most, it’s still a wide-open question as to the value of your home. There are many online sites you can use to find a base number, but these are never wholly accurate. With a personalized Custom Market Analysis, I can determine the best value to price your home.

Prop 90

Alongside Prop 110, this proposition was passed to protect retirees, veterans, and disabled persons from an increase in their tax base. El Dorado is one of only eight counties participating in this type of tax relief in CA; and it is also the only predominantly rural county to adopt these measures.

This means that while EDC is the ideal place for buyers looking to purchase a great home at a lower cost than in metropolitan areas, it is also perfect for sellers who want or need Tax Relief when selling and moving to a new home. Contact me with questions!

Measure G

Initiative to Retain El Dorado County’s Current Zoning and Rural Assets. Measure G was narrowly defeated in June. It's purpose was to reduce the amount of new development in the county and preserve rural and agricultural areas. Opponent argued that it would impede smart and responsible growth, hurting the economy and the job market in the county, and this point of view won out by less than a thousand votes.

Other Concerns

HERO Loans/PACE Liens

Recently, a class action lawsuit has been filed against Renovate America Inc. and the San Bernadino Associated Governments, for unfairness and abuse of energy improvement financing programs. Renovate America offered Home Energy Renovation Opportunity (HERO) loans for energy efficient improvements, and these loans are given priority status as a Property Assessed Clean Energy (PACE) lien, even over existing mortgage deeds.

This means a homeowner MUST pay off their HERO loan before refinancing or selling!

The recent lawsuit is specific to those homeowners who were changed over 5.7% in administrative fees on their HERO loan, and alleges:

•Secret double-counting of accrued interest, with an APR of 10.59%

•Secret double-counting of administration fees which ranged from 4.99% to 6.95%

•Failure to credit payments when made which thereby secretly increase the total amount of interest

•Overcharging of recording fees

•Understatement of estimated APR. When calculated properly, the APR for the plaintiff’s HERO loan was in excess of 12%.

•Violations of TILA’s High Cost Mortgage Rules

•Violations of TILA’s Ability to Repay Rules

•Violations of HOEPA
1) by failing to provide various consumer protection disclosures
2) by charging prepayment fees
3) by imposing excessive late fees and
4) by failing to receive a certification from a counselor approved by HUD that the consumer has received counseling about the advisability of a high-cost mortgage

•Conspiracy to violate TILA and HOEPA

•And as against Renovate America only, violations of the California’s Covered Loan Law and the Unfair Competition Law

The California Association of Realtors (CAR) had described HERO loans as “unfairly expensive” and “predatory,” and the loans are often sold by high pressure door-to-door sales people. In addition, these loans are NOT regulated, not overseen by any government entity. Only FHA loans are accepted for properties with HERO loans; no other loans, including VA and USDA. The disclosure document contains a variety of notices and warnings including a notice that the property owner may not be able to refinance or sell without paying off the PACE obligation. This is a HUGE problem for hopeful sellers and refinancers.

HERO loans stipulate:
  1. Major problems selling your home
  2. High Interest Rates
  3. High Fees
  4. Problems Refinancing
Be safe when purchasing a property with one of these liens, or when taking one out on your home!
For more information, be sure to watch Scott Cooper's informational video about PACE/HERO loans: https://www.youtube.com/watch?v=dRsO2JOMG-I&feature=youtu.be
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