Richard D'Ascoli

Richard D'Ascoli
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Why Proposition 33 and Rent Control Harm All Californians

Posted by Richard D'Ascoli on Aug 29, 2024 3:23:11 PM

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Understanding Rent Control and Proposition 33

Rent control policies, such as those proposed under Proposition 33, aim to limit the amount landlords can charge for rent. While these policies are often introduced to protect renters, they can lead to unintended and harmful consequences for renters, property owners, and the broader housing market. Proposition 33, in particular, seeks to expand rent control by eliminating the protections provided under the Costa-Hawkins Rental Housing Act, which currently exempts single-family homes and new construction from local rent control ordinances.

Distortion of Supply and Demand

Rent control disrupts the natural balance of housing supply and demand. By capping rents, developers and property owners lose the financial incentive to build or maintain rental properties, leading to a reduction in the overall supply of housing. As the supply decreases, demand continues to rise, particularly in high-demand areas, resulting in a housing shortage. This shortage makes it increasingly difficult for renters to find available units, driving up competition and ultimately exacerbating the very affordability issues rent control aims to address.

Impact on Single-Family Homes and Property Owners

Proposition 33 would remove the current protections for single-family homes under Costa-Hawkins, allowing local governments to impose rent control on these properties. This change would have far-reaching effects on homeowners, including retirees, service members, and others who might want to return to their homes after renting them out. These homeowners could be restricted from setting their own rental rates, limiting their ability to use or sell their properties as they see fit.

For property owners looking to sell their rental properties, Proposition 33 would further complicate matters. Under rent control, the value of these properties may decrease, limiting the pool of potential buyers. Instead of selling to first-time homebuyers or middle-class families, owners may be forced to sell to wealthy investors who can navigate the complexities of rent-controlled properties. This dynamic could further exacerbate housing inequality and reduce homeownership opportunities for many Californians.

Does Rent Control Truly Benefit the Poor?

While rent control is often marketed as a tool to help low-income renters, it does not require that applicants pass a means test to qualify for these benefits. As a result, rent-controlled units are sometimes occupied by higher-income tenants who do not need the financial assistance intended for the poor. This situation creates an unfair advantage for wealthier individuals who secure these below-market rents at the expense of property owners, who are forced to subsidize these tenants.

Moreover, wealthier individuals living in rent-controlled units are unlikely to leave, as they continue to benefit from artificially low rents. This reduces turnover and makes it more difficult for new residents, especially those from low-income backgrounds, to find affordable housing. In some cases, these individuals can even maintain their rent-controlled units while subletting them to others at higher rates, further distorting the market and benefiting those who do not need the help.

This inequity highlights a fundamental flaw in rent control policies: they do not necessarily target those most in need of housing assistance. Instead, they can provide significant benefits to those who are already financially secure, exacerbating the challenges faced by low-income renters who are unable to compete in a market with limited affordable housing options.

Landlords Targeting “Better” Tenants

Another unintended consequence of rent control is that it incentivizes landlords to be more selective about the tenants they accept. Knowing that they could be stuck with a tenant indefinitely, landlords may prioritize applicants with higher incomes, stable jobs, and strong credit histories, effectively shutting out lower-income renters. This selective process can deepen inequalities in the housing market, making it even harder for vulnerable populations to secure housing.

In some cases, landlords may even choose to convert rental units into condominiums or sell their properties to avoid the restrictions of rent control altogether. This further reduces the availability of rental housing and can contribute to gentrification, where lower-income residents are displaced from their neighborhoods.

Impact on Local Governments

The ripple effects of Proposition 33 extend to local governments as well. As property values decline due to the reduced profitability of rent-controlled properties, so too does the property tax revenue that local governments rely on to fund essential services like public safety, education, and infrastructure. In cities where rent control is widely implemented, these reductions in revenue can lead to budget shortfalls, forcing cuts to critical services that impact the entire community.

Additionally, as the rental housing market contracts, the housing shortage could worsen, leading to increased homelessness and placing further strain on government resources. Local governments may find themselves in the difficult position of having to address the unintended social consequences of rent control, from increased demand for social services to the need for more affordable housing construction, which itself may be hampered by the disincentives created by Proposition 33.

Conclusion

Proposition 33 and the expansion of rent control might seem like a solution to California’s housing crisis, but they are more likely to exacerbate existing problems. Rent control distorts the housing market by reducing supply and increasing demand, often failing to benefit the low-income renters it is supposed to help, and encourages landlords to be more selective, shutting out those most in need of affordable housing. Additionally, the policy threatens to reduce property tax revenues, which could lead to cuts in essential public services and worsen the state’s housing shortage.

Furthermore, by allowing rent control on single-family homes, Proposition 33 risks harming retirees, service members, and other homeowners who may wish to return to or sell their properties. It also limits opportunities for first-time homebuyers, favoring wealthy investors who can navigate the complexities of rent-controlled properties. The opposition from leaders like Senator Toni Atkins and Mayor Todd Gloria underscores the potential damage this proposition could do to housing development and affordability.

Moreover, rent control does not require means testing, which can lead to situations where wealthier individuals benefit from below-market rents at the expense of property owners and those who truly need affordable housing. This lack of targeting makes rent control not only ineffective but also unfair, as it can allow wealthier tenants to remain in rent-controlled units indefinitely, further reducing opportunities for low-income renters.

For these reasons, it is crucial to oppose Proposition 33. Instead of expanding rent control, California needs policies that encourage the development of more housing, improve the quality of existing rental units, and truly address the needs of low-income renters. Only by addressing the root causes of the housing crisis can we create a more stable and equitable housing market for all Californians.

Topics: Government Affairs, Industry

PSAR Member's Mourn Loss of Member Ricky Toledo

Posted by Richard D'Ascoli on Mar 24, 2023 1:51:30 PM

Long-time PSAR member & REALTOR® Enrique Adriano Toledo, age 59, of Chula Vista, California, passed away on Monday, March 13, 2023. Enrique was born in Cavite, Central Luzon, Philippines.  Ricky was active at PSAR's Pitch Sessions.  Ricky worked at a number of South County Brokerages and most recently worked at Coldwell Banker West and then Better Homes and Gardens Real Estate Clarity.

REALTOR® Zenaida Sewell appreciates the mentorship Ricky provided her.  "He was very kind, always has a great smile, and was always willing to help. He loves what he does which was helping people."   

PSAR Board member Merrie Espina knew Ricky for over 20 years.  "He was a community volunteer and gave back to make a difference to several organizations."   

PSAR Member Robert Stanfill said "Ricky was a very close friend and colleague.  With his great sense of humor and creativity, it was always fun and interesting to spend time with him outside of work.  I could always depend on him if I needed help.  Working with him on transactions he was always one hundred percent vested in his clients.  They were like family to him and ended up clients and friends for the long term."

PSAR member and Ricky's long-time friend Jay Norris said "Ricky always maintained good spirits even though his body was breaking down for at least the last 20 years. He had a kidney transplant 17 years ago and constantly was striving to get his health back. Ricky was someone I could always talk to when I had something I needed to sort out in my life, career, or just about anything. He was a very good friend. He’ll be missed by many and I know I’ll miss him very much"

Join family, friends, and colleagues at two events at Glen Abbey Memorial Park and Mortuary, 3838 Bonita Road, Bonita, CA 91902. A visitation at the Magnolia  Room for Enrique will be held on the following dates.  Please let the family know that you will attend here. 

Wednesday, April 5, 2023, from 5:00 PM to 9:00 PM.

The following day, a funeral service at the Chapel of the Roses will occur
Thursday, April 6, 2023, from 4:00 PM to 5:00 PM.

Friend, Annabel Walden has set up a GoFundMe page to help the family with the financial burden of the funeral cost and memorial services here.

Please comment below with memories that you may have.

ricky toledo psar-1

(pictured Alfonso Delgadillo, Sergio Palomino and Ricky Toledo)

Think You Know the Rules? Take the CRMLS Compliance Quiz to Find Out!

Posted by Richard D'Ascoli on Nov 1, 2022 3:38:57 PM

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IF YOU CAN'T AFFORD A $2,600 fine, PLEASE do help yourself and understand the MLS rules. PSAR doesn't have any power when it comes to CRMLS fines.  The rules are made by REALTORS who serve on the CRMLS Board of Directors.

Think you know the rules? Take this Compliance Quiz.

Take the Quiz!

If you get less than 100%, think about taking some training.

It is important that you understand top MLS violations and avoid costly fines. By taking this Top Violations Overview training, you will be educated on CRMLS Rules & Regulations and fines, the CRMLS Citation Policy, and a whole lot more.

Register for Training
Looking for other training material and videos?  Look here.
 
Also:

__________________________________________

PSAR's Mission is to empower Real Estate Professionals

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth, and development of the Real Estate industry in San Diego County.

Topics: Announcements, Industry

Why you may see 'SD' at the end of listing IDs

Posted by Richard D'Ascoli on Jan 21, 2022 1:20:06 PM

Why you may see 'SD' at the end of listing IDs and what you need to do 

Why you may see 'SD' at the end of listing IDs

Learn how to properly identify SDMLS listings below 

You may start noticing that certain listing IDs in your MLS have a new suffix: 'SD.' For example: 2200000582SD.

On 1/1/2022, San Diego MLS changed its listing ID conventions. This change meant that some new SDMLS listings now use duplicate IDs. The new listing ID numbers are the same as IDs of older listings from our data share partners. Using the same listing ID for multiple listings causes data collisions in the MLS and confusion for real estate professionals who want to find specific listings.

To avoid these issues, CRMLS updated IDs for the listings. These listings and all SDMLS listings will appear with the letters 'SD' at the end of their ID numbers.

This change will impact your MLS ID searches in all MLS platforms. See below:

If you are using Power Search…

CRMLS Paragon Listing IDs

Searching for a 2022 SDMLS listing ID without the 'SD' suffix in Power Search will return all listings that begin with that listing ID, including the SDMLS listing and an older listing ID from a data share partner. The listing ending in 'SD' is an SDMLS listing from 2022.

If you are using Quick Search…

      CRMLS Quick Search

If you don't include the 'SD' suffix in Quick Search, Paragon will only return the listing that exactly matches the number you enter. To ensure you find the right listing, make sure you include the 'SD' ending.

      CRMLS Paragon Quick Search       CRMLS Paragon Quick Search with SD
               Doesn't show the newer listing                             Now shows both but must add suffix 'sd'

On third-party sites…

Depending on the site, you and your clients may see either the listing ID ending in 'SD' or the listing ID without 'SD.' When you're unsure which ID the site will use, it's best to reference other details for the listing, as its Active date or address.

Topics: Education, Announcements, CRMLS

San Diego Agencies Received $653k to test for Fair Housing Violations.

Posted by Richard D'Ascoli on Oct 1, 2021 3:02:58 PM

The U.S. Department of Housing and Urban Development (HUD) awarded $47.4 million to fair housing non-profit organizations around the country.  At least two of the organizations are based in San Diego. In September these testing organizations received  $653,000 for the Private Enforcement Initiative (PEI).  According to HUD, these organizations will conduct intake and testing.  They will investigate and litigate fair housing complaints under the Fair Housing Act. According to the Department of Justice website:

Test for Fair Housing Violations."Testing refers to the use of individuals who – without any bona fide intent to rent or purchase housing, purchase a mortgage or vehicle loan, or patronize a place of public accommodation – pose as prospective renters, borrowers, or patrons for the purpose of gathering information. This information may indicate whether a provider is complying with federal civil rights laws. The primary focus of the Section's Fair Housing Testing Program has been to identify unlawful housing discrimination based on race, national origin, disability, or familial status in violation of the Fair Housing Act. The Section also has responsibilities to enforce Title II of the Civil Rights Act of 1964, the nation's public accommodations law; the Equal Credit Opportunity Act, which prohibits discrimination in credit; and the Servicemembers Civil Relief Act, which provides protections for military members as they enter active duty. The Fair Housing Testing Program also conducts testing under these statutes, as well as under the Americans with Disabilities Act, which is enforced by the Disability Rights Section of the Civil Rights Division."

Agents must also understand that California has additional protected classes including Ancestory, CREED, Gender Identity, Medical Condition, Source of Income/Occupation, and "Other Arbitrary Discrimination."  The definition of a "Protected Class" is all-inclusive in California.  Agents need to be aware of their unconscious biases and be careful to treat everyone equally.

In March of 2021 HUD Published the 2021 civil penalty amounts for fair housing violations. Civil penalties may reach a maximum of $54,157 and respondents who had violated the Act two or more times in the previous 7 years could be fined a maximum of $108,315.

PSAR, NAR, and C.A.R. have been diligent and have provided fair housing resources for Realtors for many years. During the past two years following the Newsday Investigation called "Long Island Divided" the Associations doubled down the efforts.  PSAR has hosted or promoted at least eight opportunities this year for agents to better understand fair housing.  NAR also prepared a "gamified" training to help agents understand the law.  The game is called Fairhaven.  More information may be found here.

Testers may be reaching anonymously to agents and property managers in the field.  The best practice is to understand and obey the law.  PSAR agents are the most professional in California and the Nation. PSAR's staff and volunteer leaders are available to help our members with resources and training. This law is important and there is no room for error.

Watch this video to see how real estate agents treated undercover clients on Long Island.

Topics: Announcements, Brokers/Managers, Industry

PSAR - Empowering REALTORS - Video

Posted by Richard D'Ascoli on Aug 3, 2021 10:44:21 AM

With direction from PSAR's 2021 President Ditas Yamane, this week PSAR released a short promotional video highlighting PSAR's Mission to Empower Realtors.   

Serving San Diego County, PSAR empowers Realtors with help from the largest MLS in the Country, CRMLS.   PSAR Advocates for Private Property Rights and Homeownership. The organization adheres to the highest levels of professionalism.

It is common knowledge that PSAR's Members Services Team takes pride in providing the highest level of service in the industry. Service is so important that our three service centers in Clairemont, Chula Vista, and El Cajon remained open throughout the pandemic while adhering to local, state, and national guidelines. 

Check it out!

 

Topics: Announcements, Leadership, CRMLS, PSAR Benefits

Renew Membership for a chance to Win an iPad Pro

Posted by Richard D'Ascoli on Dec 8, 2020 10:49:35 AM

Pay Dues and win an iPad Pro
Win an iPad Pro & avoid additional fees by simply paying 2021 REALTOR® dues on time by December 31st, 2020**.

  • All current active members on the PSAR monthly payment plan for 2021 qualify!
  • Those on autopay for annual dues will also be entered to win!

Watch the drawing on the Thursday, January 14th Rally and Ride Pitch Session at 9:00am. We will also be streaming on PSAR's Facebook Group!  Members do not need to be present to win.

To watch on Facebook, join the new NEW Private PSAR Facebook Group in advance.


Sponsored by:
Rancho Ted - Private Money Lending
*Note:
• REALTOR® Dues are not MLS fees
• MLS fees and key fees are billed separately and are not considered for this promotion


**Payments can be made on the PSAR Portal, or by calling one of our three offices - South: 619-421-7811, Central: 858-286-6080, East: 619-579-0333.
________________________________

PSAR members have access to the most data, most coverage and most tools in San Diego County.
Our annual fees are also the LOWEST.
We value our members and strive to show it every day.


Topics: Brokers/Managers, PSAR Benefits

zillow the brokerage?

Posted by Richard D'Ascoli on Nov 30, 2020 5:13:22 PM

Zillow appears to be in the process of becoming a REALTOR brokerage. The story has been evolving during 2020.  As Zillow transitions from being a listing distribution or advertising platform to a REALTOR (member of NAR, CAR and also some local local Associations,) they will receive the same rights and benefits as other brokerages.

Among these rights is the right to access IDX (Internet Data Exchange) feeds.  

Today, Zillow receives listing data from brokers instructing CRMLS to provide their listing information through a specifically tailored listing distribution feed called a syndication feed. Once Zillow becomes a brokerage in the CRMLS area, they will access listings through the same feeds that brokers receive on their web pages today.

What could this change mean for agents and brokers?

Listing distribution control changes: 
The CRMLS system currently permits brokers to control which listing distribution partners receive their listings, including Realtor.com, Homes.com, Apartments.com, and Zillow. Those options will soon change. As Zillow will be a participating brokerage instead of a listing distribution partner, brokers will not be able to specifically exclude Zillow from receiving their listings. 

Changes to how listings display on Zillow
Because of the switch to IDX feeds, listing data will display on Zillow differently than it does today. Full details are still forthcoming. CRMLS shared, however, that their IDX licensing agreement does not permit advertising in the way you may be used to on Zillow.  Zillow will update its current listing displays to comply with CRMLS IDX standards, the same as any brokerage that uses that same IDX listing data feed. IDX rules can be found in section 12.16 of the CRMLS Rules and Regulations.

Changes to rental listing search on Zillow
You may have heard rumors that Zillow plans to start charging fees for rental listings. (In fact, per Zillow, Zillow has charged fees for rental listings for “about a year,” except for MLS-sourced listings.) As outlined above, Zillow is also moving to IDX feeds. It’s reasonable to wonder how these two things can coexist.

CRMLS reached out to Zillow and confirmed that Zillow will no longer combine rental and for-sale properties in the same search. In other words, their IDX feed for MLS-sourced for sale listings will not comingle with their feeds for rental listings.

Per Zillow, “None of the fees… will be implemented until Jan 2021 and will not be on any listings under [Zillow’s] current syndication license.”

Zillow continued: “Under IDX, [Zillow] will not be pulling or displaying any [rental] listings under the IDX license. The rentals search will be a completely separate search experience on the site.”

CRMLS and Zillow

Topics: Brokers/Managers, CRMLS, Market Information, Technology, Industry

Revised Version of DRE Landlord/Tenant Guidebook Now Available

Posted by Richard D'Ascoli on Oct 9, 2020 11:40:43 AM

DRE ANNOUNCES PUBLICATION OF REVISED LANDLORD/TENANT GUIDEBOOK

SACRAMENTO – The California Department of Real Estate (DRE) announced today that it has completed a major revision to the widely used resource guidebook titled, California Tenants – A Guide To Residential Tenants' and landlords' Rights and Responsibilities.

The Department of Consumer Affairs last published the guidebook in 2012. Since then, the Legislature passed, and the Governor signed, many new laws addressing landlords and tenants. Recognizing the need to update this guidebook, DRE revised it to reflect the addition of new laws, including the Tenant Protection Act of 2019 (AB 1482) and the
Tenant, Homeowner and Small Landlord Relief and Stabilization Act (AB 3088), which includes the COVID-19 Tenant Relief Act of 2020. These updates are critically important to landlords and tenants, especially during this time of economic uncertainty.  “Equipping tenants and landlords with detailed and timely information to help them make
informed decisions was DRE’s main focus with this project,” Real Estate Commissioner Doug McCauley said. “Keeping Californians housed is crucial in the public health climate and this resource will provide much-needed clarity on key rental issues.”

housing is key graphic


Relevant and detailed revised chapters in the guidebook include but are not limited to: Before You Agree to Rent, Dealing with Problems, Terminations and Evictions, Tenant Protection Act of 2019, Resolving Problems, Getting Help from a Third Party, and a Glossary.

This guidebook and other useful information for landlords and tenants can be found at the DRE-created website HousingisKey.com. The online version of the guidebook can be easily translated into other languages using the google translate function on the website.

Printed copies will be available later this year.  Here is a link to the downloadable PDF version of the document.

Topics: Brokers/Managers, Industry

California DRE Fall 2020 Bulletin

Posted by Richard D'Ascoli on Oct 5, 2020 6:06:00 PM
The DRE released is fall bulletin.  In it see  articles including:

  • Commissioner’s Message
  • Licensing: Speed and Simplicity
  • Loan Modifications and Advance Fees
  • Lesser-Known Mortgage Loan Related Violations
  • Helpful or Illegal? When helping clients crosses the line
  • Compensating Balances and Other Considerations Received in Trust Accounts

DRE Fall News Bulletin

Topics: Brokers/Managers, Industry