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California’s housing supply continues to fall short with job and population growth. None deny the extreme relevance of proponents in congress to initiate conversation if not to create bills to initiate action.  Supporters stress the need for radical change in the current approach to the housing crisis.  Ambitious environmental goals exasperate review processes and local controls are strict on new developments making progress almost impossible in some areas. The traditionalist NIMBYs (Not In My Back Yard) contest the activism of the YIMBYs (Yes In My Back Yard) and the PHIMBYs (Public Housing in My Back Yard) who advocate for tenant’s rights, argue for more affordable housing calling for precedence on subsidization rather than on market-rate development which would neglect to improve the housing situation for low-income people. PHIMBY efforts are instead focused almost exclusively on the production of subsidized, below-market-rate units, and strengthening tenant protections and rent controls for existing residents. (Benjamin Schneider, CITY LAB)

Statistics have revealed that the median renter income has grown faster than the median rent for the last six consecutive years. However, there has also been an influx of high-income renters entering the market which may be a strong variable in the reportingA new study published looked at cost burdened rates across the U.S. Some key findings about our own county included:

The number of cost-burdened renter households in San Luis Obispo, as defined by spending more than 30% of their incomes on rent has decreased by 4,687 since 2007. However, the cost burden rate in San Luis Obispo increased from 47.6% in 2016 to 51.8% in 2017 and is greater than the national average of 49.5%.

If you are tired of renting, call your REALTOR today for Low Income Home Loan Options for 2019! 

“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. 

Homeowners get help with FIRES

Within the last 9 months, California has twice recorded its’ largest wildfire in the state’s history. In December of 2017, the Thomas fire rated the largest burn at 281,893 acres spanning Santa Barbara and Ventura counties only to be surpassed just 8 months later by the current largest circumference of 283,800 acres in Northern California in Mendocino County. This information reported days ago by Cal Fire Representative. 

In response to the devastation of the California wildfires, state agencies and Fannie Mae and Freddie Mac have issued several notices and alerts:

The Department of Insurance has made a declaration of emergency to expedite swift action in concern for those insured. A notice was also sent to insurers that all claims adjusters must be properly trained on the California Unfair Practices Act.

Attorney General Consumer Alerts remind us of the potential threat and also consequences regarding potential price gouging by opportunistic vendors and servicers. California law generally prohibits charging a price that exceeds the price of an item before a state or local declaration of emergency by more than 10%.

Department of Real Estate:
The Department of Real Estate is committed to investigating all complaints against real estate licensees who may be participating in rent gouging in connection with the wildfires.

Fannie Mae and Freddie Mac- Homeowners impacted by the fires are eligible to have mortgage payments deferred for up to 12 months or reduced. During this time, affected home owners will not incur late fees or be subject to delinquency reporting to the credit bureaus.
 

Great Schools in SLO for Home Buyers

BUYERS BARGAIN FOR BETTER SCHOOLS.

Items on the “must-have” list are being "bumped" by buyers for better schools when shopping for their dream home. 

Here are the Top 5 Factors home buyers are willing to sacrifice for higher education standard:

#1    Garages

#2    Large Backyards

#3    Updated Kitchens

#4  Number of Bedrooms

#5  Outdoor Living Area

84-86% of buyer searches, where buyer’s age range is 18-54, are now including school district boundaries in their search criteria.  Test scores, advanced academic programs and art and music programs, diversity, and before and after school care programs are qualifications of a desirable school district.

Follow this link for the California School Ratings for San Luis Obispo County Schools- http://school-ratings.com/counties/San_Luis_Obispo.html and before you start your search, meet with one of our local real estate agents who can help you find the perfect home with those items on your checklist!

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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