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Blog: Pros and cons of Proposition 10 and housing

“High-5!” and “Hang 10!” .....And VOTE!!

“High-5!” and “Hang 10!”

 

 Proposition 5 - the Property Tax Fairness Initiative and Proposition 10 - the Affordable Housing Act

Proposition 5, the Property Tax Fairness Initiative-  C.A.R., the California Association of Realtors, provided an indicator of strong voter support by submitting nearly 1 million voter signatures to the Secretary of State’s Office and so by qualifying the proposition for this year’s ballot. The initiative is being proposed with the intention of creating opportunities for homeownership. Millions of equity-rich Seniors often stagnate themselves in homes that are no longer ideal living situations to avoid what can be experienced as a moving penalty under today’s current legislation. Most Seniors whom are taxpayers on fixed incomes, cannot afford the raise in taxes that the purchase of a replacement property in today’s market values would impose, thereby constricting them into a property that is no longer serving their needs. Having become accustomed to a tax basis they have budgeted on for years, these homeowners are not moving and so depleting even further the supply of a market in dire need of inventory.  It is the intention of Proposition 5 to incentivize homeowners into transitional housing, circulating equity back in to the economy and restoring balance to the market.


Proposition 5 allows those eligible the ability to transfer their current property tax base to the purchase of a replacement home into any California county. Property tax would then be based on their original home’s assessment, in addition to an adjustment consisting of the difference in value between the sale price of the original home and the sale price of the new home.

A broad group of bipartisan feel Proposition 10 would actually make the housing crisis worse. Proposition 10, deceivingly named the “Affordable Housing Act,”  contains zero funding for affordable housing, fails to provide a plan to create more housing and fails to address homelessness, a rapidly increasing consequence of the housing shortage. A yes vote would repeal the long-standing Costa-Hawkins Rental Housing Act of 1995 allowing local governments to adopt rent control measures that might eliminate homeowner protections. Homeowners would be subject to regulations and price controls enacted by unelected boards. Even nonpartisan Legislative Analysts feel that Proposition 10 would discourage new construction and result in existing rental units being taken off the market, which would actually reduce rental housing availability. Homeowners dependent on rental income to supplement mortgage payments may be forced to sell or convert rental properties into other more profitable uses. Homeowners may find incentive to convert long term rentals into short-term vacation rentals. Fewer rentals on the market will actually increase the cost of existing housing and make it even harder for renters to find affordable housing.

Proposition 10 will reduce home values for middle-class families at a time when many homeowners are counting on the homes to help finance their retirement. It even contains a hidden loophole requiring taxpayers to pay the initiative supporters’ legal bills for participating in certain lawsuits, even if they lose and even if their position is frivolous. This blank check benefits lawyers and puts taxpayers on the hook for limitless legal bills. (noprop10.org/the-facts)

The California Association of Realtors encourages homeowners and tax payers to get out and vote!

Vote “Yes on Proposition 5” and Vote “No on Proposition 10”.

Proposition 10 vs Housing Shortage

On the November Ballot, is the Proposition for Local Rent Control Initiative - Prop 10.        

Opposition to Proposition 10: 

Should it pass, it would allow local governments to adopt rent control ordinances that would in essence repeal the Costa-Hawkins Rental Housing Act enacted in 1995; the law that currently restricts the scope of rent-control policies that city and local jurisdictions can impose. The Proposition would allow for policies that would limit rental rates owners could charge for tenancy and make the determination of what is a fair financial return for landlords.

Sponsors of Propositions 10 - argue that the measure addresses the housing shortage situation in California, while those in opposition feel it would make the state's housing crisis worse and discourage investments in real estate, further suppressing the housing supply and deepening the crisis.

Many feel the initiative is the wrong approach: 

Republican gubernatorial candidate John Cox states, "Building more housing will bring rents down. This measure treats the symptom, not the disease - it’s a bad deal for renters." In another statement Cox said development regulations need to be eliminated to incentivize construction and decrease costs. (http://ballotpedia.org)

Sacramento Mayor Darrell Steinberg was recorded as saying "The SEIU initiative, while well-intentioned, I think is overwritten and if it passes would harm our ability to build more affordable housing.”

Please do your research and vote your opinion on Prop 10. Feel free to comment on this blog, to let us know how you feel.

San Luis Obispo Realty is a full service real estate company and dedicated to assisting you in your search for real estate as a commercial investment, rental, or home for you and or your family. We are also happy to list your home as a possible business investment rental, in this thriving area that provides housing for many students, families, and businesses. 

and our Morro Bay Affiliate & second location

Morro Bay Real Estate Partner

San Luis Obispo Realty
805-544-9161
info@san-luis-obispo-realty.com
441 Marsh Street
San Luis Obispo, CA 93401

CA BRE# 00577121

 

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