There are 2 propositions on the November ballot related to real estate which I’d liketo draw your attention: Propositions 5 and 10. Proposition 5 deals with property tax transfer and Proposition 10 addresses rules that govern rent control ordinances. It is not my desire to campaign for or against either ballot item. Rather, my intent is to give you information that will help you choose the vote that is best for you.
Proposition 5: The Property Tax Transfer Initiative.
If passed, this will allow homeowners aged 55 years or older who move to another place in the state to transfer their current property tax base to their next home. Currently,this is only possible in select counties who’ve chosen to participate and homeowners are limited to only 1 tax base transfer. Passage will expand this to all counties in California and there will be no limit on the number of transfers.
Passage will provide older homeowners more financial impetus to move out of homes they no longer need and offer younger homeowners access to those properties. The tax benefit to the homeowner results in lower tax revenue to the county, something opponents say some counties can ill afford to absorb.
Proposition 10: Affordable Housing Act
Passage will repeal the 1995 Costa Hawkins Rental Housing Act which placed restrictions on cities imposing rent control laws. By eliminating the restrictions cities will have more flexibility in how they construct rent control for their specific locality. Passage of this measure DOES NOT mean rent control will be imposed in all cities. It only means fewer restrictions on cities that choose to impose rent control.
Some people believe passage of this proposition will encourage more cities to choose to impose rent control. Those in favor say rent control can effectively address the local housing problems. Others believe rent control discourages investment in housing and actually leads to the reduction of available housing and makes the problems worse.
Sorting through all of it:
Like most ballot measures, what’s good for some might not be good for others. Because the arguments for and against these propositions are far more complicated than what I can get into here, I invite you to contact me if you want more information or would like to discuss these propositions in further detail. I always love a great conversation :)