San Leandro Climate Action Plan and Point-of-Sale Requirements
The City of San Leandro recently released the first draft of a Climate Action Plan (CAP). This plan presents a comprehensive strategy for the City of San Leandro to address greenhouse gas emissions while also promoting economic prosperity. The Bay East Association of REALTORS® is supportive of policies that create and maintain a suitable living environment. However, portions of the plan will have a direct negative impact on real estate transactions.
One of the recommended actions is the adoption of a Residential Energy Conservation Ordinance (RECO). While the plan does not provide details about what that ordinance would require the City of Berkeley has already adopted a RECO. The Berkeley RECO applies to all homes, condominiums and multi-family properties and requires that prior to a home being sold it must have low-flush toilets, low-flow showerheads, faucets aerators; water heater blankets; hot and cold water piping; sealed furnace ducts and several other items related to energy efficiency.
The Bay East Association of REALTORS® does not have an issue with any of these energy-saving devices. However, the requirement that they be installed or verified prior to the sale of a property is problematic for two reasons:
- Point-of-sale requirements have not been an effective or efficient way to implement any type of policy regarding improving private properties. If an issue is so important, a city should consider other methods for implementation rather than one that only applies to properties being sold. An alternative would be a pro-active program that encourages all homeowners to install energy efficient devices.
- Point-of-sale requirements complicate real estate transactions. The current market for resale homes is very fragile because of challenges related to securing purchase financing; homes not appraising due to the Home Valuation Code of Conduct and difficulties closing transactions involving short sale and REO properties. Another layer of regulation is not what the real estate market needs now and will not "promote economic prosperity."
The City of San Leandro has not proposed a RECO. However, the Climate Action Plan which will be submitted to the City Council on December 21, 2009 suggests such an ordinance be adopted.
You may review the CAP by clicking on this link . Please refer to pages 60 and 61 for references to the Residential Energy Conservation Ordinance.
The Bay East Association of REALTORS® wants to hear from you about this proposal. Feel free to email comments or questions to David Stark, Public Affairs Director by clicking here.
