Voter alert! There are local and state issues on the November ballot that directly affect homeowners and homeownership. Your vote can make a difference to the ongoing Bay Area housing shortage, as well as to your own interests. Here’s a rundown:
Proposition 10 would allow cities to enact rent control on properties that were exempt before, such as single family homes, and prohibit raising rents to market value when a tenant moves out. This could discourage property owners from renting and take needed housing off the market, though supporters say it protects tenants.
Proposition 5 would expand Proposition 13 property tax benefits for homeowners over 55, allowing them to take their lower taxes with them wherever they move within California. The goal is to free up single family homes in today’s tight market, though critics fear it will diminish property tax revenue to cities and counties.
If Measure Y passes, it would be difficult to impossible for landlords living in one of the units of a duplex or triplex they own to evict tenants. Supporters say it protects tenants; opponents fear it might discourage first-time buyers who can only afford a home if they rent part of it out.
Measure W would impose a $3,000 annual parcel tax for every unit of a condo, duplex or townhome vacant for over 50 days, and a $6,000 annual parcel tax on residential, nonresidential and undeveloped properties. Revenue generated would fund homeless services, though critics say it burdens property owners.
If Measure X passes, people who sell an Oakland property for over $2 million would pay higher transfer taxes. The measure reduces the rate to 1% for properties selling for $300,000 or less and increases it to 1.75% for properties selling for more than $2 million and 2.5% for properties selling for more than $5 million.
Measure P raises the transfer tax on property sales and transfers over $1.5 million from 1.5 percent to 2.5%.Since the median price of a Berkeley home is around $1.4 million, this would raise costs for over half of buyers and sellers. The money would go to the general fund.
Measure V would establish El Cerrito as a charter city and establish an ongoing real estate property transfer tax of $12 per $1,000. There is currently no transfer tax in El Cerrito. With the median El Cerrito home price around $953,000, that’s a significant jump in costs for home buyers and sellers. Revenue would go to police services and open space.
Measure T would impose a $3,000 annual parcel tax for every unit of a condo, duplex or townhome vacant for over 50 days, $3,000 annually for vacant developed parcels and $6,000 for vacant undeveloped parcels.
As local Realtors we are in favor of affordability and accessibility in our communities. We feel many of these proposals will discourage homeowners from renting their homes if needed, and increase the costs of purchasing in an already high-priced market.
Feel free to reach out and talk to us about any thoughts or questions that you might have.
Mitch Lucio CalBRE#01216080 510.703.8909 www.discovereastbay.com