(Editor’s Note: This is a revised copy of an article with the same title that appeared in last week’s issue of REALTOR® Advantage Online. The article that ran last week was the first draft and not the finalized version of the article. Hopefully, what appears below will present the subject matter more directly and succinctly.)

On May 7, 2010, the Governor signed SB 183, a bill that requires owners of all single-family homes that have fossil fuel burning appliances, fireplaces, or an attached garage to install carbon monoxide device(s) (“CO devices”) approved and listed by the State Fire Marshall on or before July 1, 2011.

For all other dwellings, owners will be required to install the CO devices on or before January 1, 2013.

The devices (1) must be designed to detect carbon monoxide and produce a distinct, audible alarm; (2) may be 1) battery powered; 2) a plug in device with a battery backup, or 3) a device installed as recommended by the National Fire Protection Association that is either wired into the alternating current power line of the dwelling unit with a secondary battery backup or connected to a system via a panel. They must be tested and certified pursuant to the American National Standards Institute (ANSI) and UL.

If the device is combined with a smoke detector, it must comply with the standards that apply to carbon monoxide alarms, the standards that apply to smoke detectors, and must emit an alarm or voice warning in a manner that clearly differentiates between a carbon monoxide alarm warning and a smoke detector warning. Single-family home owners will be given a 30-day notice to correct a violation of this new law prior to being assessed a fine.

Owners of rental units will be required to install CO devices. In addition:

Owners will be given a right to access a rental unit for the sole purpose of installing, repairing, testing, and maintaining CO devices upon the giving of a 24-hour notice similar to the one required for making necessary repairs in a rental unit.

Tenants will be required to notify the owner or manager if the tenant becomes aware of an inoperable or deficient CO device. This will shift the burden to the tenant if the tenant becomes aware that the device has become inoperable or if the tenant causes the device to become inoperable (i.e. if the tenant has unplugged the unit or removed the batteries).

Owners must ensure CO devices are operable at the time that the tenant takes possession. The owner will be required to correct deficiencies in the CO device thereafter following notice by the tenant and will not be found in violation of this new law unless such tenant has notified the owner or manager. This new law does not affect any rights parties may have under any other provision of law because of the presence or absence of a CO device.

The transfer disclosure statement (TDS) for residential property with one to four units will be amended to require the owner to disclose if the property has one or more CO devices.

The new law provides, “No transfer of title shall be invalidated on the basis of a failure to comply with this section, and the exclusive remedy for the failure to comply with this section is an award of actual damages not to exceed one hundred dollars ($100), exclusive of any court costs and attorney’s fees. This subdivision is not intended to affect any duties, rights, or remedies otherwise available at law.” It further allows for local ordinances that are consistent with its provisions.

Falling inventory levels and strong sales activity in December, 2009, helped to drive continued improvement in San Francisco’s housing market, according to the latest Market Focus report issued jointly by Rosen Consulting Group and the San Francisco Association of REALTORS®. The median single-family home sales price increased for a third consecutive month in December reaching $755,608. That represents a 7.9 percent increase from December, 2008. The report attributes the improved market conditions to a drop off in foreclosure sales and a growing proportion of sales in higher priced neighborhoods.

Median Condominium Sales Price Increases for First Time Since July 2008

The report observes that the condominium market also seems to have turned a corner, as the median sales price increased by 7.6 percent to $672,590 in December. It was the first year-over-year increase since July 2008.

According to John Lee, president of the San Francisco, “The reduction in asking prices, mortgage rates of less than or near 5 percent and federal tax incentives have increased housing affordability and attracted buyers to the condominium market.” But he notes that “sellers of higher-priced properties have benefitted less from incentives as sales are closed only after significant negotiations from original asking prices.”

Closed and Pending Sales Activity in December
Remained Relatively Strong

As expected, closed and pending sales activity dipped during December as a result of seasonal patterns. But despite the slowdown, closed and pending single-family sales activity that month outpaced similar activity in December of both 2008 and 2007.

According to the report, the single-family months of supply inventory fell to 3 months in December 2009 from 5.8 months in December 2008. The condominium months of supply inventory fared less well dropping to 4 months from 7.2 months during the same period. With inventory levels falling, Lee anticipates that the price increases seen in recent months will continue and possibly intensify.

The Rosen Consulting Group sounds a note of caution in its report by saying that a number of factors could delay the further strengthening of San Francisco’s housing market. Principal among these would be an increase in distressed properties that would add to the for sale inventory and put downward pressure on prices and the anticipated increase in mortgage rates that could rein in home buying activity. But the Group’s outlook is increasingly positive and it believes that if these eventualities would happen, “it would only be a bump in the road to long term growth in the San Francisco market.”