Proposition 19: Property Tax Exemptions from Reassessment – Legal FAQ Available
New Rules on Tax Basis Portability
With the passage of Proposition 19, a homeowner who is over 55 years of age, severely disabled or whose home has been substantially damaged by wildfire or natural disaster may transfer the taxable value of their primary residence to:
- A replacement primary residence
- Anywhere in the state
- Regardless of the value of the replacement primary residence (with adjustments if “greater” in value)
- Within two years of the sale
- Up to three times (but without limitation for those whose houses were destroyed by fire)
Proposition 19 will supersede the old rules which limited this exemption to the sale and purchase of a principal residence within the same county (Proposition 60) or between certain counties (Proposition 90) — but only if the replacement property was of “equal or lesser value” and only one time.
New Rules on Intergenerational Family Transfers and Family Farms
Proposition 19 also changes the rules on exemptions from reassessment for intergenerational transfers by limiting the exemption to the transfer of a primary residence to a child (or grandchild) only when the property continues to be used as a family home by the child (or grandchild), and even then, if the divergence between the taxable value and the actual value is too great, a partial increase in the new taxable value will be imposed. Proposition 19 also includes provisions that would allow the transfer of a family farm to retain its taxable value. These new rules apply to any purchase or transfer beginning February 16, 2021.
For the full C.A.R. Legal FAQ, please visit: https://www.car.org/riskmanagement/qa/taxfolder/prop19
NAR Announces Agreement with DOJ
NAR reached an agreement with the U.S. Department of Justice (DOJ) to make certain changes to the REALTOR® Code of Ethics and MLS policies regarding providing information about commissions and MLS participation. NAR is making these changes to address questions raised by the DOJ even though NAR disagrees with the DOJ’s characterization of our rules and policies. By reaching this agreement, NAR will be able to remain focused on supporting our members as they preserve, protect, and advance the American dream of homeownership. Although the exact language is still being finalized, most of the changes seek to more explicitly state what is already the spirit and intent of NAR’s Code of Ethics and MLS policies regarding providing information about commissions and MLS participation.
Please see NAR President Charlie Oppler’s announcement and video posted on the HUB for more details. You can also click here for an article published in REALTOR® Magazine from NAR’s General Counsel Katie Johnson who provides an overview of the agreement.
NAR President Charlie Oppler Apologizes for Past Policies that Contributed to Racial Inequality
Newly-installed NAR President Charlie Oppler issued a formal apology for the association’s past policies that contributed to segregation and racial inequality in America. During a virtual fair housing summit hosted by The Hill and co-sponsored by NAR, Oppler offered an emotional apology on behalf of the industry for NAR’s actions during a large part of the 20th century. Discussions also focused on current and future efforts by NAR to lead the industry’s defense of fair housing. More coverage available below:
Video: NAR’s Role – Past, Present and Future – in Fair Housing with NAR President Charlie Oppler & Fair Housing Policy Director Bryan Greene
REALTOR® Magazine: An Apology From the National Association of REALTORS®
Bloomberg News: Realtors Apologize for Role in Housing Racial Discrimination
NAR Confronts Discrimination in New Simulation Training: “Fairhaven”
In the past year, NAR has taken bold steps to change the industry’s culture and hold agents accountable for discrimination. On Wednesday 11/18, NAR launched “Fairhaven” a new, immersive online simulation training that puts NAR members in the shoes of a client experiencing discrimination as they try to buy a home.
An overview of NAR’s ongoing efforts to help brokers fight discrimination is available here.
Hermosa Beach Expands Temporary Moratorium on Commercial Eviction
The Hermosa Beach City Council approved an urgency ordinance on November 24th to amend the Temporary Moratorium on commercial evictions to prevent premature evictions in advance or remodel/demolition during the COVID-19 pandemic.
View the November 24th Council Agenda here, Item XIV.c.
Down Payment Assistance, ADUs financing programs available
The Neighborhood Housing Services of LA County (NHS) recently received new funding to expand their offering of down payment and home rehab services including deferred financing for ADUs. NHS would also like to reach existing homeowners who may need mortgage assistance/foreclosure prevention and offer free HUD certified counseling services.
Visit www.nhslacounty.org to learn more.
Local Election Results
As of December 1, 2020
LA County Board of Supervisors, 2nd District: Holly Mitchell
Serving cities such as Carson, Compton, Culver City and Inglewood; all or part of L.A. neighborhoods including Crenshaw, Koreatown, La Brea, and Mar Vista; and other unincorporated areas of the county. Roughly two million residents call it home.
Measures K – PASS: Establishes a ¾-cent general transaction and use (sales) tax providing Carson approximately $12,000,000 annually until ended by voters; to maintain City services, such as public safety, natural disaster/public health emergency preparedness, etc.
Mayor: Lula Davis-Holmes is leading Jim Dear, Albert Robles (incumbent), and Falea’ana Arieta Meni by 394 votes. Race not yet called by City Clerk.
City Council, 1st District: Jawane Hilton (incumbent)
City Council, 3rd District: Cedric Hicks (incumbent)
Measure CC – PASS: Cannabis Business Tax Ordinance of 2020, imposes a 5% cannabis business tax on the gross receipts of cannabis businesses, until ended by voters (This tax will generate no revenues initially, but would generate revenue if, in the future, cannabis businesses are permitted or exist in the City).
Measure LL – PASS: Limits the number of future full consecutive four-year terms that may be served by an individual as Mayor of Hawthorne and as Member of the Hawthorne City Council to two terms in each office.
Mayor: Alex Vargas (incumbent)
City Council (vote for two): L. David Patterson, Angie Reyes-English
City Council, 3rd District: Eloy Morales Jr.
City Council, 4th District: Dionne Faulk
Mayor: Robert Pullen-Miles (incumbent)
City Council (vote for two): Rhonda Hoffman Gorman, Sirley Cuevas
Measure L – PASS: Establishes a ¾ cent local sales tax providing approximately $1,300,000 annually until ended by voters to protect Lomita’s long-term financial stability; maintain City services; improve local drinking water quality; repair streets/potholes; keep parks and public areas clean/safe; maintain emergency/public safety response; help retain local businesses; and provide other City services.
City Council (vote for two): Barry Waite, William Uphoff
City Council (vote for three): Steve Napolitano (incumbent), Richard Montgomery (incumbent), Joe Franklin
Full Election Results are at https://lavote.net/home/voting-elections/current-elections/election-results/live-results