Advocacy at the South Bay Association of REALTORS®

GAD Newsletter: What’s on Your Ballot, Recently signed laws, & Mayor Panel

A Message from your GAD (Government Affairs Director)

I began my role as the Government Affairs Director South Bay Association of REALTORS® in January this year. Perhaps you have met me virtually or seen my face on a recent SBAOR Facebook video, though I do wish we would have had more opportunity this year to meet in person.

This year has taken all of us for a ride, though somehow also showing us that more was possible. In the wise words of State Senator Bradford (who I had the pleasure of meeting over Zoom this week), “I know folks have said let’s get back to normal; normal is what got us here. We’ve got to do better than normal.”

That is what I am committed to this and the many years following serving as your GAD – helping South Bay Realtors get better than normal. A lot is up in the air politically as we edge closer to election day, and I want you to know we are here for you! Start looking forward to these GAD Newsletters every other Thursday, and always reach out to me if you’d like more information on any topic, covered or not.

In this first edition, we will cover the big ones – what is on your November ballot (that relates to Real Estate), and new laws affecting our business that was just signed by Governor Newsom.

Looking forward to building and continuing a great working relationship with all of you!

Julie Tran

Government Affairs Director, SBAOR

julie@southbayaor.com

(714) 326-3457

 

 

 

What’s on your ballot?

Statewide Initiatives: Real Estate-Related

Proposition 19 – The Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act

Backed by the California Association of REALTORS®, Proposition 19 would limit property tax increases on primary residences for homeowners over 55 years old, people with severe disabilities, and victims of natural disasters or wildfires by removing current restrictions on location, price, and one-time limit to Prop 60 & 90 property tax transfers.

Prop 19 also limits property tax increases on family homes used as a primary residence by protecting the right of parents and grandparents to pass on their family home to their children and grandchildren for continued use as a primary residence. The transferred property taxes in this case would equal the current assessment on the inherited property, plus a maximum of $1M in increased property value. If the inherited home is worth more than $1M over the current assessment, that difference would be added to the assessment.

This measure would reform Prop 58 & 193 to reassess investment properties which are passed on to children/grandchildren who do not use them as a primary residence.

Generates new revenues for fire protection, local government, and school districts to help balance budgets and boost economic recovery with long-term revenue of over $1 billion annually.

This measure would promote fluidity in home sales, increasing real estate transactions in just the first year that it is enacted by over 70,000 – a number that is expected to climb in the years following.

Supporters:

  • Los Angeles County Business Federation (BizFed)
  • CalAsia Chamber of Commerce
  • California Black Chamber of Commerce
  • California Hispanic Chambers of Commerce
  • California Business Roundtable
  • Full list here

Opposition:

  • Howard Jarvis Taxpayers Association (claims the “price is too high to pay” for tax portability, referring to intergenerational transfer reform)
  • Newspaper editorial boards including the LA Times (on the other hand, this is because they see the measure as a handout for the wealthy)

HOW YOU CAN HELP

Subscribe to Yes on 19 Digital Channels

Share resources, posts, and media from the Prop 19 Member Toolkit.

Email Julie@southbayaor.com to join our group of Social Media Warriors for Prop 19!

 

Proposition 15 – Tax on Commercial and Industrial Properties for Education and Local Government Funding

Proposition 15 would require commercial and industrial properties, except those zoned as commercial agriculture, to be taxed based on their market value. In California, the proposal to assess taxes on commercial and industrial properties at market value, while continuing to assess taxes on residential properties based on the purchase price, is known as split roll. The change from the purchase price to market value would be phased-in beginning in fiscal year 2022-2023. Properties, such as retail centers, whose occupants are 50 percent or more small businesses would be taxed based on market value beginning in fiscal year 2025-2026 (or at a later date that the legislature decides on).

Opponents of Prop 15 have raised concerns over small businesses whose rental agreements, known as “triple net leases,” which would be obligated to pay a passthrough of all or some of the tax increase faced by their commercial landlords.

The California Association of REALTORS® has not taken an official position on this measure but does have standing policy to oppose “split roll” and its Board of Directors will vote on a position on Proposition 15 during their Business Meetings in October.

Local organizations OPPOSING:

  • Torrance Chamber
  • Redondo Chamber
  • Palos Verdes Peninsula Chamber
  • Manhattan Beach
  • El Segundo Chamber

Proposition 21 – Local Rent Control Initiative

Prop 21 would repeal portions of the state’s existing rental housing laws (Costa-Hawkins) and open the door for local governments to enact further-reaching rent control. Costa-Hawkins allows local governments to use rent control, except on (a) housing that was first occupied after February 1, 1995, and (b) housing units with distinct titles, such as condos, townhouses, and single-family homes.

The ballot measure would allow local governments to adopt rent control on housing units, except on (a) housing that was first occupied within the last 15 years and (b) units owned by natural persons who own no more than two housing units with separate titles, such as single-family homes, condos, and some duplexes, or subdivided interests, such as stock cooperatives and community apartment projects.

Perhaps most importantly in the context of Proposition 21, Costa-Hawkins allows landlords to increase rent prices to market rates when a tenant moves out (a policy known as vacancy decontrol). The ballot measure would require local governments that adopt rent control to allow landlords to increase rental rates by 15 percent during the first three years following a vacancy.

The California Association of REALTORS® is OPPOSING Prop 21, along with a broad coalition of veterans, housing advocates, labor, business, and many others.

Local organizations OPPOSING:

  • LA BizFed
  • Los Angeles Area Chamber of Commerce
  • El Segundo Chamber of Commerce
  • Redondo Beach Chamber of Commerce

 

Passed, and signed 2020 State Legislation

AB 3088 – The COVID-19 Tenant Relief Act

California Gov. Gavin Newsom has signed a five-month extension to measures aimed at preventing millions of tenants from evicted for missing rent due to hardships caused by the coronavirus pandemic.

Tenant, Landlord, and Homeowner guidelines and resources for AB 3088 can be found here: https://landlordtenant.dre.ca.gov/index.html

Be sure to watch CAR Legal Live Webinar for the complete download of the new law.

There’s a form for that

New CAR forms available now in your zipForms library include the NRTA – Notice to Tenant of COVID-19 Relief Act of 2020; and CDC-TD – Centers for Diseases Control, Tenant Declaration of COVID-19 hardship.

Revised forms available September 30, 2020 include:

  • 3-Day Notice to Pay Rent or Quit (PRQ) which includes advisory in title of proper forms to use if for non-payment of residential rents during covered periods
  • 3-Day Notice to Perform Covenant or Quit (PCQ) which includes advisory in title of proper forms to use if for non-payment of non-rent monetary obligation for residential tenancies during covered periods.

 

Other notable housing & business bills signed into law:

AB 1577 (Burke), a small business tax relief bill that conforms California state law to the federal Paycheck Protection Program’s loan forgiveness provisions to ensure that forgiveness of those loans are treated the same under state and federal law. This is important for our small businesses because protects them from potentially having to pay thousands of dollars in unexpected California state income tax.

AB 3373 (Burke), which improves the efficiency of the property tax assessment appeal process for both counties and taxpayers. This bill was in response to the surge of new appeals related to COVID-19’s impact on property values as it provides property taxpayers with better access to appeals boards and more timely resolution of property tax disputes as the need arises.

SB 1447 (Bradford), allows a tax credit against the personal income and corporate income taxes to qualified small business employers [who are experiencing at least 50% income loss] in the amount of $1,000 for all new hires and rehires, up to $100,000.

SB 1079 (Skinner) requires foreclosed homes to be sold individually at auction rather than bundled and sold to a single buyer. Following the Great Recession, corporations snatched up large numbers of homes in bundled foreclosure sales. Between 2006 and 2012, the number of owner-occupied single-family homes in California dropped by 320,000, while the number of renter-occupied single-family homes jumped by 720,000, according to the senator’s office.

Full end of session legislative update here.

 

ICYMI: Watch the recording of the SBAOR Community Committee’s Mayor Panel with our Carson, Torrance, and Lawndale mayors

https://us02web.zoom.us/rec/share/Lb9YjQ5qkaV3oRJPm7qr3IjC1NT_CMSFAXmMuU9ezogrU1ZF6OdQs5DC0U_fCrQ.ctf9PbVguOwEZGAK

Access Passcode: 9.3D&cWv