(Source: CAR) – In a continuing effort to reduce consumers’ costs associated with purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) 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 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.
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.
Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with more than 160,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.
Source: CAR
