Rent control, property taxes and taller apartment buildings: California considers major housing bills in 2018

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Rent control fight: Should California repeal a landmark 1995 law that keeps local rent control ordinances in check? The law, known as Costa Hawkins, blocks cities from applying rent-control policies to homes built after 1995 or to single-family homes. It is hugely popular among landlords, but some advocacy groups for renters are demanding that the state lift those restrictions, allowing cities to address runaway rents as they see fit. Bloom’s Assembly Bill 1506 has a hearing Thursday. But even if his proposal dies, a similar one might find its way onto the statewide ballot this fall. Supporters are gathering signatures for a repeal.

New tax breaks for homeowners? Republican Assemblyman Marc Steinorth argues that some longtime homeowners feel stuck in their single-family homes because moving could force them to pay much higher property taxes. Proposition 13, passed in 1978, keeps annual property tax increases to a minimum, even if a house quadruples in value, until a property changes hands. The California Association of Realtors is gathering signatures to qualify an initiative that would let those over 55 take their low property tax base with them anywhere in the state, as many times as they move.

More apartment buildings: Wiener, a former San Francisco supervisor who has seen his share of local development fights up close, last year pushed through legislation to streamline the approval of new housing near transit, taking away some local control from city councils and planning commissions — a law that took effect Jan. 1.
Now he is back with Senate Bill 827, which would require cities to allow denser housing developments to be built within a half mile of transit hubs such as BART, Caltrain and Muni stations and within a quarter mile of major bus lines. He introduced it Thursday. “The concept behind the bill,” Wiener said, “is actually quite simple: We want denser and taller housing near public transportation. We want housing to be focused near transit so that people will drive less.”

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Would the over-55 portable tax base thing increase housing supply in the bay, or would it result in them moving to a cheaper place and renting their current place (even with higher assessed value, they’d be at a profit?)

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It’s only fair if the over-55 sold their house. Otherwise they will have an infinite supply of houses with low tax basis.

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I would assume now-rental place would trigger an assessment of some sort at market value

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So I’d say this tax-portability rule will give us more inventory. But then I think we already have something like that? Isn’t it how @sheriff moved his tax basis to SoCal? A bit confused.

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I am guessing they could rent their current place, get home equity line, and buy another property and potentially pay for the mortgage with rents

Bay area is the real HODL!

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The ability to pass down prop 13 rights is insane. It should reset with ownership change. Granted, we’ve all seen data that says property tax revenue is still increasing at 5%+ a year. The real issue is spending. Maybe some day people in California will get it. Maybe you guys enjoy paying all those taxes.

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No need to sell, once rented out or bought another primary elsewhere, tax at market.
Should start stamp duty for rental so can monitor rentals + some $ in.
Start stamp duties for RE transactions too.

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Shouldn’t it be the other way, stay in low cap rate and buy rentals in high cap rate?
Rent collected from high cap rate would be higher than the low cap rate area for the same house price.

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Danger Ahead! Costa Hawkins Under Attack!!!

“Rent control fight: Should California repeal a landmark 1995 law that keeps local rent control ordinances in check? The law, known as Costa Hawkins, blocks cities from applying rent-control policies to homes built after 1995 or to single-family homes. It is hugely popular among landlords, but some advocacy groups for renters are demanding that the state lift those restrictions, allowing cities to address runaway rents as they see fit. Bloom’s Assembly Bill 1506 has a hearing Thursday. But even if his proposal dies, a similar one might find its way onto the statewide ballot this fall. Supporters are gathering signatures for a repeal.”

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People need to demand the government actually serve them instead of serving the government’s own interest. It’s long past time for a tax payer revolt. Instead of arguing over who should pay the bill. It’s time to realize the bill is way too high.

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I was able to do it because prop 60/90 gives homeowners a one time opportunity to move their tax base only if the county opts in to the program. You to be 55 or over to use it. Both the county where you own the home and the county where you buy the new one have to opt in. San Diego county and Santa Clara county have both opted in. Many counties have not. San Francisco has taken no action on it.

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Ok. So the new bill will make it statewide. Makes sense.

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They should remove the age restriction, let everyone carry their property tax basis within California.

To help new buyers, let them inherit the existing property tax.

We should stop discriminating and dividing people. Treat everyone exactly the same.

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PRESIDENT TRUMP ANNOUNCES SALE OF CALIFORNIA TO MEXICO
WASHINGTON (AP) – ​ 1/1/2018

President Trump disclosed that he has reached an agreement with Enrique Pena Nieto, President of Mexico, which provides for the sale of substantially all of the State of California to the country of Mexico.

President Trump noted that this deal, which he claims “is his largest real estate deal ever” is a win-win for everyone involved. One of the benefits he says he will highlight during a prime time address from the oval office later this evening, will include using the proceeds received by the US from Mexico to 1) pay for the Wall (fulfilling yet another campaign promise), a wall which will now include the length of the eastern border of California, 2) fund all the infrastructure spending in the remaining 49 states and 3) pay to relocate the 67 Republicans that currently reside in California.

He also noted that Federal money saved from the reduction of California citizens on US social programs will allow those social programs to be cash positive in less than 3 years.

Mexican President Nieto announced that he has already introduced a bill to the Mexican Congress asking to change his country’s name to MexiCal.

Other benefits President Trump intends to discuss during this evening’s prime time address include:
California will now be able to act as a sanctuary state within MexiCal noting that there is much more room for the refugees who will find the climate in the State of California more desirable than the climate in US cities such as NYC, Detroit or Chicago.
The elimination of the existing border between Mexico and California will allow drugs to flow more freely between Mexico and the users in Hollywood. Drug tunnel diggers at the Tijuana boarder will now be able to use their skills to dig tunnels under Los Angeles to help ease congestion in that city and allow rioters to move about the city’s universities more freely.

The U.S. taxpayer will no longer be on the hook for any future disaster relief required once the next megaquake hits California. The space in the Capitol and other DC buildings vacated by representatives of California will be fumigated and turned into “time-out rooms” for the press as well as Liberty Centers where US citizens can meet with their congressmen to discuss the pursuit of economic freedom.

Nancy Pelosi released a statement stating that she looks forward to making the Mexican President’s life miserable and prefers the year round weather in Mexico City to that of DC. Her office has already announced a schedule of fund raising activities for what is believed to be an upcoming campaign to run for President of MexiCal. Papers released along with Trump’s statement reveal that a newly incorporated real estate company, pmurT, Inc., which was intimately involved in the deal discussions, will receive a broker fee of $25 billion on the California sale. An anonymous pmurT, Inc. representative has revealed that the profits on the deal are HUGE and will be used to purchase, develop and convert all abandoned US Federal facilities in California into special high end retreats and resorts which will assist California residents with managing their euphoria and transition into the nanny state they have so long desired to be.The exact northern border of the new MexiCal is still under negotiation.

Apparently the White House is concerned that certain members of congress may be unwilling to give up California’s wine country and are suggesting that the northern border align with the north end of the Golden Gate Bridge.California residents will be issued special blue cards to cross the border into the US so that the total number of California liberals entering the US can be tracked and at any point in time not exceed predetermined levels. Residents that remain in California after the effective date of the sale will not be allowed to seek refugee status in the US in the future.

Mexican President Nieto stated he is thrilled with the deal and is looking forward to declaring Spanish the national language for his newly acquired territory and opening SSL (Spanish as a second language) schools throughout California. He also noted that funding for the transaction would come from the Mexican drug cartels, which have agreed to provide low interest loans to Mexico so long as they are allowed to move their cash out of Switzerland and the Cayman Islands back into Mexico tax free.

White House representatives refused to confirm rumors that a similar deal was in the works for the sale of Northeastern states from NY through Maine, to Canada.

President Trump wrapped up his statement stating, “this deal is HUGE and will help Make America, albeit a little smaller, Great Again"

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All this was fought by the Realtors association. I happened to have listening to KGO radio, though late, about this topic.

I am of the opinion that Prop 13 is unfair somehow. If you are the original owner of any property, keep your tax base forever. Once you die, sorry, whoever takes over needs to pay current tax rates.

I am also a believer that anything should be taxed immediately. Right now!