Ventura County Real Estate Journal

A Fee in Search of a Problem

The City of Ventura is currently in the final stages of drafting an ordinance that will require Ventura property owners to apply for an annual permit to legally rent out their Ventura properties. (Applies to condominium units, single family homes, second dwelling units as well as apartments)  Property owners will be required to pay for the permit which will include an exterior inspection of the property by a code enforcement official.  Upon inspecting the exterior, the City official may require an interior inspection for an additional fee.  Obviously, they will require property owners to fix any substandard conditions or non-permitted uses and be assessed for any violations.

The City of Ventura’s stated goal is to eliminate substandard living conditions and one key method is through a permit process. The permit fees are to be used to financially cover the costs of implementing the ordinance.

Questions to consider:

• Are all rental owners in the city being asked to subsidize other property owners who are not complying with regulations already in effect?  
• How much of the fees collected go toward the administration and collection of fees and issuing permits? Is it cost effective and does it resolve the problems?  
• Will this program really help crack down on garage conversions and boot-leg units since owners of these properties would be unlikely to register their units with the city?  
• Are inspections of brand-new construction, or units in condominium/townhouse communities, really necessary?  
• The city already has existing laws that allow staff to inspect units and require owners to bring them into compliance.  Does this improve/strengthen existing laws?  
• Will the city actually do the inspections?  The city already charges properties with 4 or more units for inspections but often allows the owner to do their own inspections and simply fill out a certification form. 
• What does including the Ventura Business License/Permit No. in an advertisement have to do with the proposed Rental Housing Preservation program? What does it accomplish?  

The final proposed ordinance and resolution will be on www.VCCAR.net once it has been posted by the city.  You can also find more information on the city’s website at www.cityofventura.net/fire/building_safety/safehousing

What you can do: 

Attend the Ventura City Council meeting on Monday, November 24th at 6:00 PM

Get the word out.  If you are unable to attend the council meeting, write or contact the city council members and make your concerns known.  You can find contact information for the Ventura City Council is on the City of Ventura website.

UPDATE: 11/18/2008
The Ventura City Council will NOT be discussing the Ventura City Rental Housing Preservation Ordinance on November 24th.  The date has been changed to December 8th at 6pm.  This new hearing will probably NOT have an ordinance to be voted on, only a staff report.  There will now be more public input before the city council votes on a specific ordinance.

UPDATE: 1/14/2009
Last night, the Ventura City Council abandoned the proposal to inspect all rental homes and duplexes and charge a fee.  The city will be shifting two city inspectors who examine new construction to code enforcement.  They are still considering requiring that rental owners register with the city and pay a small fee, but for now, mandatory inspections are out.

As a consequence, millions of U.S. citizens are under the impression that asbestos exposure is a concern of the past and are unaware aware that the remodeling of older homes has the potential to cause toxic exposure.  Homes built before 1980 could easily contain asbestos.  Nonregulated asbestos material can be legally performed by homeowners, regular contractors, or licensed asbestos abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated.
The health risks involved in handling non regulated asbestos materials is small but the removal should be done in a manner that will minimize the release of fibers due to breakage. It is recommended, because breakage in inevitable, that one wears asbestos related safety equipment including a disposable tyvek suit, gloves and must be medically able to wear a half mask respirator with High Efficiency Particulate Air (HEPA) filters, and adhere to the principles of wet removal and without visible emissions.

It’s worth taking the time to do research before tackling a big project whether you plan to do it yourself or hire a contractor.  For more in-depth information on health issues associated with asbestos, visit the Mesothelioma Cancer Center.  You should also visit the Ventura County Air Pollution Control District’s Website.

Proposition 8, passed in November 1978, amended Proposition 13 to reflect declines in property value.  Proposition 8 reductions are temporary reductions which recognize the fact that the current market value of a property has fallen below its current factored Proposition 13 base year value. 

Anyone who has purchased Ventura County real estate in the last few years may benefit if the current market value is less than the price you originally paid.  The Ventura County Tax Assessor, Dan Goodwin, is proactive about lowering assessed values and most folks will not have to do anything to take advantage of Prop 8.  His department will automatically review each year’s lien date value to determine whether it should be maintained, lowered, or increased.  Unless there is a change in ownership or new construction, your assessment can never increase above the factored Proposition 13 base year value.  If you feel the assessment is still higher than the market value for the lien date you may file an Application for Changed Assessment.  You may also want to download this Assessment Appeals Information Pamphlet. 

Below is a quote from the June 20th, 2008 news release from the County of Ventura notifying Ventura County Property about their right to challenge their assessments.

The Ventura County Assessment Appeal Boards announced today that taxpayers that wish to challenge the value placed on their property by the Assessor may file an application to reduce their assessment.  The time for filing applications during the regular equalization period commences on July 2, 2008, and ends on November 30, 2008.  November 30th falls on Sunday, therefore, Monday, December 1, 2008 is the final day to file an application.  An application received on or post marked by December 1, 2008, shall be deemed to have been filed within the specified time period.  Applications may be request in person, by mail, or by phone and may also be obtained online at: http://ceo.countyofventura.org/cob. All applications must be returned to the Clerk of the Board of Supervisors, Ventura County Government Center, Hall of Administration, 4th Floor, 800 South Victoria Avenue, L#1920, Ventura, California, 93009-1920.

If you wish to file an Application for Changed Assessment, you will also need information on closed comparable sales to support your request.  The best way to get that information is through your real estate agent who can search the MLS database.  If you don’t already have a favorite Realtor (or if I am already your favorite), call me and I’ll be happy to help you.

For more comprehensie information on Proposition 8, visit the Ventura County Tax Assessor’s website at: http://assessor.countyofventura.org/TaxSavings/Declineinvalue.html.

Heal the Bay, an environmental group, issued it’s “Beach Report Card” that assigns grades of A to F to 517 beaches on the California coast based on measured bacteria levels from April 2007 to March 2008. 55 of Ventura County’s 56 beaches rated an A during the spring and summer months. Rincon Beach received the lone B.  In the wet winter months, water quality is not as good due to run off from and test beaches measure much higher bacteria levels.

The Ventura County Star quotes Mike Grimmer, Heal the Bay’s Beach Report Card manager in today’s newpaper:

It’s amazing how good the water quality is there (in Ventura County),” said Mike Grimmer, Heal the Bay’s Beach Report Card manager.  “If you’re at an open-ocean beach and it’s dry weather, you have almost a 100 percent chance of swimming in clean water,” Grimmer said. “We’re making some strides on wet weather. Unless we live in a society where there’s no trash anywhere, a lower standard is always going to be expected during wet weather conditions.”

For more information on Ventura County “Beach Report Card”, visit:

Heal The Bay Ventura County Report Card Map  
Heal The Bay Ventura County Report Card Text
County of Ventura Water Quality Tests

As of June 1st, Fannie Mae is changing it controversial policy of requiring an additional 5% down payment for home in designated as being in a “declining market”.  Back in January, Fannie Mae changed its lending guidelines which had a major impact on Ventura County home sellers and buyers.  Ventura County was on Fannie Mae’s list of declining market areas.  Buyers qualifying for a loan program requiring a 5% down payment now had to come up with 10%.  If the loan required 10% down, an additional 5% was added bringing it to 15%.  Buyers and lenders switched en masse to FHA financing which allows up to 97% financing and does not require an increased down payment for homes in designated “declining market” areas.

What was particularly obnoxious about this policy was it did not take into account the extremely diverse nature of the cities making up Ventura County.  Even worse was the danger of the potentially self-fulfilling prophecy of having been declared a declining market. 

Effective June 1, 2008, any conventional conforming loans will require a 3% down payment if the Desktop Underwriter (Fannie Mae’s proprietary loan underwriting software) is used, and a 5% down payment if the loan is processed manually.  This will be uniform across the country. 

Will this have a significant effect on the Ventura County Real Estate market?  For the near term—probably not.  For loans of more that 80% of the purchase price private mortgage insurance will still be required and they have their own separate underwriting criteria.  Current FHA loan limits are $729,750, same as Fannie Mae’s conforming limits under the Stimulus Package until December 31st, 2008.  At the moment FHA is a more attractive option for many borrowers with less than 20% for a down payment.

You can read more by clicking here:  Fannie Mae’s Single National Down Payment Policy Press Release.