There will be two initiatives on the statewide ballot this November that could dramaticallyaffect housing opportunities, private property rights and the availability of affordablehousing.
The first is Prop 5, C.A.R.’s own initiative to create new homeownership opportunities bygenerating more sales of single family homes in existing neighborhoods. This will benefityoung families at a time when California faces a severe shortage of houses for sale. Prop 5, theProperty Tax Fairness Initiative, qualified for the ballot earlier this year after the C.A.R. submitted nearly1 million voter signatures to the Secretary of State’s office—a strong indicator of voter support.
Here’s how it will work:
• Seniors often live in homes that no longer meet their needs because their homes may betoo big or too far from family. If these homeowners want to downsize or move closer totheir children, they could face a doubling or tripling of their property taxes, or what’s beingcalled a moving penalty.
• Proposition 5 provides appropriate relief by allowing those eligible the ability to transfertheir current property tax base to the purchase of another home in any of California’s 58counties. The new property tax for that individual would be based on their original home’sassessment, in addition to an adjustment consisting of the difference in value between thesale price of the original home and the sale price of the new home.
• Proposition 5 would provide respect to seniors (many on fixed incomes), the disabled anddisaster victims by allowing them the flexibility to move to a more suitable home. Right now,too many feel locked in place.
• This will help boost the housing inventory in existing neighborhoods as older homeownersmove from their single-family homes that no longer meet their needs and free up housingfor the next generation.
The other measure of concern on the November ballot is Prop 10, the so-called “AffordableHousing Act,” that would actually make the housing crisis worse by repealing the longstanding Costa-Hawkins Rental Housing Act, eventually allowing local governments to imposedraconian rent control measures.C.A.R. strongly opposes Prop 10.
Here’s why REALTORS® should vote NO:
• Proposition 10 will reduce availability of affordable and middle-class housing. Academicexperts from the University of Southern California, U.C. Berkeley and Stanford agree that it woulddrive up rents, while discouraging new construction and reduce the availability of affordable andmiddle-class housing. Even the state’s nonpartisan Legislative Analyst has found that passage ofProposition 10 would both discourage new construction and result in existing rental units beingtaken off the market, reducing availability of rental housing.
• Proposition 10 will increase the cost of existing housing. Proposition 10 will causehomeowners to sell or convert rental properties into other more profitable uses, such as short-termvacation listing services like Airbnb. That would increase the cost of existing housing and make iteven harder for renters to find affordable housing.
• Proposition 10 will cost taxpayers hundreds of millions of dollars per year, reducing revenues available foreducation and public safety. The Legislative Analyst also said that Proposition 10 would likely reduce thevalue of rental properties and single-family homes, driving down local property tax revenues by up tohundreds of millions of dollars per year. Driving down home values will hurt middle-class families and willalso reduce the funding available for vital services like schools, public safety, road repairs, education, andfire safety.
• Proposition 10 will eliminate homeowner protections. Proposition 10 repeals protections homeownershave enjoyed for over 20 years, and lets the government dictate pricing for privately owned single-familyhomes, controlling how much homeowners can charge to rent out their home – or even just a room.Proposition 10 might even lead to bureaucrats imposing oppressive surcharges when an owner takes ahome off the rental market and chooses to occupy it.
Your participation in efforts to PASS Prop 5 and DEFEAT Prop 10 are VITAL.