SFPUC gives users say on future of Hetch Hetchy- plus high costs appraisals

SFPUC Gives All Users Say on Future of Hetch Hetchy Reservoir

By a unanimous vote of 5-0, the San Francisco Public Utilities Commission last Tuesday voted to approve a proposal that would give 26 cities and water districts a say on the future of the Hetch Hetchy Reservoir.

The Hetch Hetchy Reservoir in Yosemite is the main water source for 2.5 million Bay Area residents. Although San Francisco owns and operates the system of pipes, dams and tunnels, only one-third of the water users live there. The other 1.7 million live on the Peninsula and in parts of Santa Clara and Alameda counties. The SFPUC says two-thirds of customers living outside San Francisco are paying the bills and it is only fair for them to have a say in the future of their water source.

Environmentalists have long wanted to drain and restore the reservoir to its original landscape, before Congress approved the construction of O'Shaughnessy Dam in 1913, submerging the valley under water. In November, Restore Hetch Hetchy placed Proposition F on the San Francisco ballot. The measure required the city to conduct an $8 million study of draining the reservoir and restoring Hetch Hetchy Valley. The measure failed by a landslide 73-23 percent, but environmentalists plan to bring back the measure as soon as next year for another vote.

The move by the SFPUC makes it more difficult for environmentalists to drain the reservoir simply by winning approval from the San Francisco voters. The SFPUC proposal says the 26 entities must give their approval in order for the reservoir to ever be drained. The amendment must now be voted on by the 26 boards representing the affected water agencies.
Environmental groups say they may sue to overturn the rule, arguing that San Francisco owns the reservoir so should be solely responsible for it.
 
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Agencies Issue Final Rule on Appraisals
of Higher-Priced Mortgage Loans

Six federal financial regulatory agencies have issued the final rule that establishes new appraisal requirements for "higher-priced mortgage loans." The rule implements amendments to the Truth in Lending Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). Under the Dodd-Frank Act, mortgage loans are higher-priced if they are secured by a consumer's home and have interest rates above certain thresholds.

For higher-priced mortgage loans, the rule requires creditors to use a licensed or certified appraiser who prepares a written appraisal report based on a physical visit of the interior of the property. The rule also requires creditors to disclose to applicants information about the purpose of the appraisal and provide consumers with a free copy of any appraisal report.
If the seller acquired the property for a lower price during the prior six months and the price difference exceeds certain thresholds, creditors will have to obtain a second appraisal at no cost to the consumer. This requirement for higher-priced home-purchase mortgage loans is intended to address fraudulent property flipping by seeking to ensure that the value of the property legitimately increased.

The rule exempts several types of loans, such as qualified mortgages, temporary bridge loans and construction loans, loans for new manufactured homes, and loans for mobile homes, trailers and boats that are dwellings. The rule also has exemptions from the second appraisal requirement to facilitate loans in rural areas and other transactions.

The rule is being issued by the Board of Governors of the Federal Reserve System, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. The rule will become effective on January 18, 2014.

In response to public comments, the agencies intend to publish a supplemental proposal to request additional comment on possible exemptions for "streamlined" refinance programs and small dollar loans, as well as to seek clarification on whether the rule should apply to loans secured by existing manufactured homes and certain other property types.