Disclosure of BMP status required when homes sell in Lake Tahoe

In July of 2014, a packed house was at the Tahoe Regional Planning Agency Board Meeting (TRPA). The crowd, made up mostly of those in the Lake Tahoe real estate profession, were there to voice their concern about a proposal before the board to require completion of Best Management Practices (BMPs) by the time a home sold or the title would not be cleared until completed.

The real estate brokers and agents said they didn't find it appropriate that they should be the enforcing arm of TRPA.

"This would have a catastrophic impact on the real estate community in Lake Tahoe," local mortgage broker Ron Yokotake said at the time. "Putting a cloud on title with an incomplete loan package would devastate the Lake Tahoe community by severely impacting the ability to loan."

The board listened and formed a working group consisting of nine members: Two board members, one local government official from California, one local government official from Nevada, state representatives from each state, and someone from each the environmental, technology, and business communities. They met and came up with a plan to address the fact that only 39% of all home buyers turned in the required BMP paperwork when they purchased a home. This form is has been part of local real estate transaction packets since code was written 15 years ago. The code states: Owners of property for sale shall, prior to sale, disclose to a purchaser the property's BMP state on a TRPA approved form. The purchaser of the property shall provide the disclosure form to TRPA within 30 days of sale.

While the code hasn't changed, the way the status of a property's BMP completion (or non-completion) is handled at the time of a sale has.

The working group created a digital document that all parties are comfortable with. It can be submitted on line, by fax, email or mail.

"There was give and take," said Shay Navarro, Stormwater Program Manager at TRPA, during her meeting with members of the real estate community on Wednesday, May 6.

"The new process is much better because we felt requiring BMPs at Point of Sale was a risk," said Ellen Camacho, the incoming South Tahoe Association of Realtors President said. "Happy isn't the right word, but it's a good compromise."

Some realtors at the meeting said they were uncomfortable with the language on the required form: "Property owners out of compliance with BMP requirements may be subject to enforcement and fines (up to $5,000 a day) pursuant to the Bi-State Compact and Article 9 of TRPA's Rules of Procedure.

Navarro calmed their fears and said that this verbiage on the form is needed so homeowners understand the importance of installing BMPs on their homes. They acknowledge their understanding that BMPs are required. She said that TRPA would rather have money spent on BMPs than it being paid in fines. There is a long process before a homeowner or property owner would ever be fined, leaving time to get the BMPs installed, Navarro said.