It’s no surprise that Merriam-Webster, the dictionary publisher, selected “pandemic” as its 2020 Word of the Year. The COVID-19 coronavirus pandemic changed life in ways that none of us could have imagined in 2019. It was on every TV channel, every news website and part of every conversation. Everyone was impacted, including homebuyers and sellers.

Indeed, the pandemic even changed homebuyers’ housing preferences, according to the California Association of REALTORS’® (C.A.R.) Annual Housing Market Survey, which reveals homebuyers’ behavior throughout the 2020 year.

The recently-released survey found that more than two in five California REALTORS® (43 percent) saw a pandemic-related change in their buyers’ preferences in the property type they wanted to purchase in 2020.

In response to pandemic-related, government-imposed prolonged lockdowns and quarantines that forced homebound distance learning for school and working remotely for the job, the most frequent homebuyer requests included a bigger home (39 percent), a home with more rooms (35 percent), a home in a suburb rather than in an urban area (37 percent) and a home in a rural area rather than a city or suburb (26 percent). Not surprisingly, the survey also found 37 percent of homebuyers in 2020 were less concerned about the commute time to work.

The survey also showed a variety of interesting aspects of homebuyers’ behavior statewide in 2020.
For example:

-- The top three reasons homebuyers purchased a home in 2020 included tired of renting (25 percent), desire for a larger home (20 percent) and desire for a better location (19 percent). For first-time homebuyers, tired of renting was the most popular reason at 54 percent. For repeat homebuyers, 25 percent said their primary reason for buying in 2020 was a desire for a larger home, an increase from 21 percent in 2019. Respondents agreed that low mortgage rates made buying a home makes more sense than renting for many first-timers.

-- The average number of multiple offers made on available homes for sale in 2020 reached its highest level since 2013. Nearly two-thirds (59.2 percent) of homes sold in 2020 received multiple offers at an average of 4.8 offers per home. In 2019, less than half (47.7 percent) of homes sold received multiple offers with an average of 3.9 offers on each home. Homes priced between $500,000 and $1 million received the most multiple offers in 2020 with 67.3 percent receiving an average of six offers.

-- The real estate housing market in 2020 was one of the most competitive markets in decades. A large share of properties sold above their asking price in 2020. Approximately 35 percent of homebuyers paid more than what home sellers asked for in 2020, compared to a quarter (26.7 percent) in 2019. The 2020 figure was the highest in seven years and is 16 percent higher than the long-run average. Homes in the $500,000-to-$1 million price range sold the fastest with an average of 10 days.

-- More people purchased vacation and second homes in 2020, the highest percentage since 2016. Vacation homes represented 6 percent share of total sales, compared to 4 percent in 2019. The flexibility to work from home, plus a desire to move away from metropolitan areas, resulted in higher housing demand in resort areas. Overall, home sales in California resort areas outperformed other housing sectors in the state in 2020. In addition, the share of investor buyers of rental properties was 8.1 percent, the lowest since 2001, due to uncertainty over eviction moratoriums.

-- Home sellers in 2020 pocketed a gain of roughly $210,000 from their home sale, which was about 63 percent higher than the price they paid for their home. Not surprisingly, the longer a homeowner lives in their home will increase the profit they can expect when they sell. Sellers who lived in their homes for less than five years earned a 16 percent profit from their sale in 2020, while those who lived in their home five or more years earned a 100 percent profit.

C.A.R. has conducted its Housing Market Survey annually since 1981.

Starting January 8th 2021 (ran out of funds mid January), you can apply on behalf of your clients for the California Association of REALTORS^® Housing Affordability Fund (HAF) Home Essentials Program.  

• Be a first-time homebuyer
• Homebuyers must use a California REALTOR^® in the transaction
• Purchase a primary single-family residence in California with the intent to occupy the property as a primary residence
• The conforming loan amount on the single-family residence must be at or below the FHA conforming loan limit
• The purchase of the single-family residence must use financing. All-cash purchases do not qualify

Starting December 30th, 2020, REALTORS^® can apply for California’s new relief grant program for small businesses affected by the COVID-19 pandemic. The program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses (including independent contractors and sole proprietors) impacted by COVID-19 and the related health and safety restrictions. The grant amount will be based on the business’s annual revenue as documented in its most recent tax return:

• For annual revenue of $1,000 to $100,000, the available grant amount is $5,000.
• For annual revenue of greater than $100,000 up to $1,000,000, the available grant amount is $15,000.
• For annual revenue of greater than $1,000,000 up to $2,500,000, the available grant amount is $25,000.

A small business must satisfy certain criteria to be eligible to receive a grant award — read the criteria in full here. Please keep in mind that even if you meet all eligibility requirements, it is not guaranteed you will receive a grant.

Applications for the program must be submitted through a Community Development Financial Institution (CDFI) that has partnered with the state of California to distribute the funds. The list of partners, organized by location and by language services, can be found here.

The first round for applications opens on December 30, 2020, at 8:00 a.m. and closes on January 8, 2021, at 11:59 p.m. Approval notifications will begin on January 13, 2021. There will be a second round for application submissions and reviews, although the dates for that round have not yet been announced.

See the grant California Small Business COVID-19 Relief Grant Program website for more information.

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.”

List of Candidates

PSAR has announced its November 3, 2020 General Election Voter Guide, featuring endorsements of San Diego County candidates and local initiatives.

The endorsed candidates have demonstrated their understanding of the real estate industry and have indicated their commitment to home ownership and housing. PSAR's Government Affairs Committee, following a review of ballot measures and propositions, are recommending votes based on potential industry impacts. Particularly important in the midst of the current housing crisis is for PSAR members to support leaders and policies that protect and promote home ownership.

A team of PSAR members researched candidates’ voting records, public comments relating to preserving and protecting property rights and support for public policies and initiatives promoting participation in the American dream of homeownership and property investment. The endorsements that resulted from this research were approved by members of the PSAR Government Affairs Committee and PSAR Board of Directors.

PSAR’s list of endorsed candidates covers a broad spectrum of positions, including an open and incumbent seat in Congress, two open seats for San Diego County Board of Supervisors, mayors in two San Diego County cities,11 other candidates for seats on local city councils in five other cities, city attorney, school district and special district seats.

Sara Jacobs, PSAR’s endorsed candidate for the 53rd Congressional District, is hoping to succeed Susan Davis, who retired after 20 years of service in the House. This is the second run for Congress by Jacobs, the granddaughter of Qualcomm co-founder Irwin Jacobs. She ran in the 49th District in 2018 but came in third in the primary.

No longer coastal, the 53rd stretches from Interstate 5 on the west, through Mission Valley to the East County and south to Chula Vista. PSAR also has endorsed the reelection of Rep. Juan Vargas, who has represented the 51st Congressional District since 2012. The 51st includes all of Imperial County, National City, Chula Vista, Imperial Beach and El Centro.

Two San Diego County Supervisor seats are open due to term limits for the incumbents. The endorsed supervisorial candidates include Joel Anderson, former State Assemblyman and State Senator for District 2, and Ben Hueso, former member of the San Diego City Council, State Assembly and State Senate, for the District 1 seat. 

Anderson, who lives in Alpine, is hoping to succeed Dianne Jacob, who has served for the past 28 years. Jacob, first elected as Supervisor in 1992, is termed out. Anderson, a Republican, previously served for 12 years on a statewide level in the California State Assembly (2006-2010) and the California State Senate (2010-2018).

The Second Supervisorial District, the largest of the county’s five districts, features more than 2,000 square miles and more than 50 communities and cities in the East County, including the unincorporated communities of Lakeside, Alpine, Ramona and Julian, the cities of El Cajon, La Mesa, Lemon Grove, Santee and Poway and the city of San Diego communities of Allied Gardens, College Area, Del Cerro, Grantville, Navajo, Rolando and San Carlos.

Hueso, a San Diego native and resident of Logan Heights, is hoping to succeed Greg Cox, who is termed out after 25 years of representing District 1’s South Bay communities. Hueso, a Democrat, first held elected office in 2005, winning a special election for the San Diego City Council. He served on the council for five years, including one year as council president, before running for a seat in the State Assembly in 2010. His tenure in the Assembly was brief, as he won a seat in the State Senate during a special election in 2013.

District 1 includes the cities of Coronado, Imperial Beach, Chula Vista, National City, communities within Southeast San Diego, Point Loma, Sunset Cliffs and parts of downtown San Diego. The district also includes the unincorporated communities of Bonita, Sunnyside, Lincoln Acres and East Otay Mesa.

Other noteworthy PSAR endorsements for the November general election:

• Juan Vargas, congressman, 51st Congressional District
• John Minto, reelection as mayor, City of Santee
• Jerry Jones, mayor, City of Lemon Grove
• Joe Leventhal (District 5), Stephen Whitburn (District 3), Will Moore (District 1), San Diego City Council
• Mike Diaz (District 4), Steve Padilla (District 3), Chula Vista City Council
• Phil Ortiz (District 4), Humbert Cabrera (District 2), El Cajon City Council
• Kristine Alessio, Laura Lothian, Colin Parent, La Mesa City Council
• Ditas Yamane, National City City Council
• Mara Elliott, reelection as San Diego City Attorney
• Armando Farias, Laurie Humphrey, Chula Vista Elementary School District
• Adrian Arancibia, Sweetwater Union High School District
• Mitch Thompson, Mark Roback, Otay Water District
• David Johnston, Valle de Oro Planning Group

In addition to candidates, PSAR is recommending “No” votes on two California propositions: Proposition 15, a ballot measure calling for higher property taxes on commercial and industrial real estate, and Proposition 21, a rent control ballot measure.

PSAR has recommendations on two local measures, the City of San Diego’s Measure “E,” which addresses the city’s Midway-Pacific Highway Community Plan, and the City of Santee’s Measure “N,” called the General Plan Protection Initiative.

PSAR is recommending a “Yes” vote on Measure E. If approved, Measure E would exempt the Midway-Pacific Highway Community Plan from its current 30-foot coastal height limit. Measure E is the only local ballot measure to earn bipartisan endorsement from the Democratic and Republican parties of San Diego counties

PSAR is recommending a “No” vote on Measure N, which would limit new housing. Voters will decide whether to allow residents to determine the fate of high-density housing projects that don’t comply with the city’s General Plan-- its blueprint for growth. If approved, Measure N could imperil the recently approved 3,000-home Fanita Ranch development.

To review the PSAR November 2020 General Election Voter Guide, visit https://blog.psar.org/2020voterguide.

_______________________________

Our Mission is to empower Realtors to flourish while being accountable to each other
our clients and our community.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth & development of the Real Estate industry in San Diego County. This program is only open to REALTORS® and PSAR Affiliate Members. There is no cost for attending this program.

PSAR is encouraging all of our members, and all San Diego-area real estate industry professionals, to exercise their right to vote in the upcoming election. Your vote counts!

PSAR has an active and vital group of REALTOR® members who serve on the PSAR Government Affairs (GA) Committee. The GA Committee has three subcommittees that focus on specific geographical areas of the county.

GA Committee members offer political endorsements, and act as political advocates and review public policy and its impact on the PSAR membership in particular and the real estate industry as a whole. In addition, GA Committee members address a variety of complex and multi-dimensional issues impacting the protection of private property rights.

GA Committee members are acutely aware of the importance of voting, even more so in this upcoming general election. The stakes are high. If issues and candidates affecting your realtor business and the industry itself matter to you, then it matters that you vote on them.

With early voting underway, GA Committee members were recently asked about the importance of voting. Below are their comments (names appear in alphabetical order, some quotes were edited for clarity).

-- “Our committee is made up of Republicans, Democrats, Independents, and others. We research, conduct interviews, review questionnaires, and our decisions are primarily based upon the notion of property rights, expanding homeownership, rights of tenants, and the rights of owners of commercial and rental properties. We will endorse candidates whom we feel best support these values over their opponents. It’s important to elect leaders who will work with REALTORS®. We all have our own choices of candidates, but we hope by supporting pro-real estate candidates and propositions, it might help influence voters who agree with us that property rights and the expansion of homeownership are essential to all Americans.” -- Mike Anderson

“Democracy is vital to real estate. If people don't vote, then it’s the corporations and banks that set policy that affects your ability to buy a home. When you vote, you make your voice heard. Be a voice for our communities where we can work towards a country where everyone has the opportunity to be a homeowner.” -- Deirdre Bramberg

--“ I sat with my family and we reviewed each proposition and discussed ones we were not clear on. Let’s use the voting season to engage and unite families.” -- Jeff Campbell

-- “Elected officials are political beings. They listen to the people in the communities who vote and they also listen to the people and organizations who contribute resources that allow them to reach out to those voters. Making sure your voice is heard as a voter is every bit as important as for whom you vote.  Communities and neighborhoods with high voting percentages attract more attention and resources.  Citizens who vote have a voice with politicians and those who do not vote have no voice." -- Richard D’Ascoli, Chief Executive Officer, PSAR

-- “It is a civic duty to vote and every single vote makes a difference. As a citizen of the country, the right to vote is one of the freedoms the county gives its people. It is a chance for our voice to be heard and an opportunity to select the leaders we believe have the ability to represent us in our government.” -- Merrie Espina.

-- “Each PSAR member should exercise their right and obligation to vote. In this election, as in most elections, your future earnings, your tax obligations, and the laws that enable or hobble our industry are all in play. PSAR, C.A.R. and NAR can all be influential as supporting organizations, focusing on critical policy issues. But, in the final analysis, it is your individual vote and the power of our collective votes that will select our elected officials and establish the policies that impact our lives and our business environment for years to come.” -- William Hall

-- “Our votes this election are more important than ever as our region, state and country stand at a pivotal time.  PSAR’s Governmental Affairs Committee, as well as C.A.R. and NAR, spend a lot of time each election interviewing and weighing which candidates and propositions uphold basic property rights. REALTOR® endorsements have been made available to all of our members and we hope that you will read and consider the recommendations when you cast your votes as you believe best represents your views.” Kay LeMenager

-- “In all areas of life having your opportunity to vote is of utmost importance. I feel it is our duty as Americans to make voting a serious commitment in support of the sacrifice of those before us to fight for our right to do so. My children were educated to study the propositions and follow the federal, state and local elections and vote from the age they became eligible. It starts with us as parents to lead by example.”  -- Colleen McDade

-- “It’s very important to get out there and vote. Many people complain about the results, but if you don't vote, don’t complain. Every vote counts, so do your part and get out there and vote.” -- Patricia McFadden

-- “Voting is how we convey our desires for change. Please exercise your right to vote with the goal of making a better today and tomorrow for us all.” -- Paul Moses

-- “Every vote really does matter. Just last cycle, San Diego District 8 primary was decided by 3 votes, my college board race was decided by 23 votes. Vote and get your friends and family to vote, too.” -- Rafael A. Perez

-- “I am involved in Government Affairs and I try to be as active as I can be in politics is because it does have an impact on our industry. One can be part of the problem or the solution. I can stand by and complain or I can do what I can do to act.  Rome was not built in a day, and as we all know California has its issues which have a direct impact on our business. Be impactful and relevant. Part of doing that is reading the voters guide and voting. It’s common sense, do nothing and one can only expect nothing. So, why not be relevant and do something.” -- Rebecca Pollack-Rude

-- “I’ve been a member of the Government Affairs Committee for many years because I believe the grass roots portion of our local governments are truly the roots of our way of life as it pertains to the freedoms that are rightfully ours. Voting is the most important right and freedom that, as a U.S. citizen, we enjoy, or should enjoy. The committee is a way to hear from our peers, our local government officials and the candidates at various levels of government who have an impact at every level of our community life, and most especially as it pertains to housing and private property rights. In this unprecedented time of pandemic, the value of the roof over our head has never been more in the spotlight. Personally, I’ve grown to appreciate greatly our rights as individuals, as members of our local communities, our country and lately as a member of humankind. Register to vote, inform yourself. Make choices because you understand the issues and the candidates, not because someone else told you that it’s the best way or the only way or just because. Exercise your most valuable right. Vote and understand and appreciate that right.” -- Pat Russiano

-- “I have always felt that it is one’s responsibility to be knowledgeable regarding the election process, issues and then vote. I taught my children and now grandchildren that they have a responsibility as a citizen of the United States of America to vote.” -- Norma J. Scantlin

-- “Our GA Committee spends a lot of time vetting our recommendations with input from REALTORS® from various backgrounds and party affiliations. Please let your voice be heard and vote. If nothing else, vote NO on the real estate related propositions 15, 19 and 21.” -- Mark Scott

-- “I have never once missed the honor and the obligation to vote. It is the glue that binds us as Americans, giving us the confidence that we are a nation guided by the rule of law.  It is fundamental to the American success story and to our sense of pride in being an American.” -- Mitch Thompson

-- “As a REALTOR® Party member, 2021 PSAR President-Elect, and as an individual, I care deeply about the future of our country. I know first-hand that our vote is needed in this election more than ever before. Your GA committee and the PSAR Board of Directors have spent a great deal of time to vet all PSAR endorsed candidates. I hope that you would consider these candidates as you cast your vote. The future of our country is in our hands. Please vote.” -- Max Zaker

_______________________________

Our Mission is to empower Realtors to flourish while being accountable to each other
our clients and our community.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth & development of the Real Estate industry in San Diego County. This program is only open to REALTORS® and PSAR Affiliate Members. There is no cost for attending this program.

PSAR is recommending a “No” vote on California Proposition 21, a rent control ballot proposition known as the “Rental Affordability Act.” The Governor and Legislature have already passed rent control into law. This Proposition goes too far and has too many unintended negative consequences.

If approved, Prop. 21 would change state law to allow cities to apply new rent control ordinances and/or expand existing ones. New laws could be enacted affecting homes at least 15 years old. Prop. 21 exempts single-family homes owned by landlords with more than two properties.

Proponents claim cities should be allowed to approve additional limits on rent increases to protect California families who are one rent hike away from being driven out of their neighborhoods by landlords. They further claim this proposition will stop homelessness and gentrification.

The fact is that Prop. 21 would make it less desirable for builders to construct more housing, affordable or otherwise, at a time when California has a massive housing shortage. It would also decrease revenue for city and state governments, already cash-strapped by the fallout from the Covid pandemic. It would reduce the number of housing units in the state and allow bureaucrats to add fees on top of base rent, thereby increasing the cost of living at a time when Californians can least afford it. In fact, only two years ago, in 2018, Californians made their decision about rent control at the polls.

In 2018, voters in 56 of 58 California counties overwhelmingly rejected a statewide rent control measure by a 20-point margin. Why is this subject being revisited so soon? Los Angeles-based AIDS Healthcare Foundation and its President, Michael Weinstein, funded a signature collection drive that once again put the measure on the ballot. This appears to make this issue a special interest one.

Last year, state legislators passed a new law that set a 7 percent ceiling on yearly rent increases. CalMatters, a public interest journalism venture, concluded that the action by Sacramento lawmakers in 2019 was an effort to ward off another statewide rent control ballot measure by Weinstein and company that clearly was unsuccessful.

According to CalMatters, Prop. 21 opponents include Governor Gavin Newsom, California Apartment Association, California Seniors Advocate League, Essex Property Trust and Prometheus Real Estate Group. Prop. 21 supporters include the AIDS Healthcare Foundation, Eviction Defense Network and Vermont Sen. Bernie Sanders.

California Association of REALTORS® (C.A.R.), Apartment Association of Orange County and Californians to Protect Affordable Housing, a coalition of housing advocates, renters, businesses, taxpayers and veterans encourage a “NO” vote on Proposition 21.

Other organizations opposing Prop. 21 include the California Council for Affordable Housing, California Community Builders, the California State Conference of the NAACP, Si Se Puede, Congress of California Seniors, Howard Jarvis Taxpayers Association and the San Diego Building and Construction Trades Council.

A CalMatters headline stated “Proposition 21 rent control will discourage construction of affordable housing.” A CalMatters opinion writer asserted: We must protect small property owners who, in contrast to corporate landlords, often are natural affordable housing providers, operate on small margins, give applicants a chance if they don’t meet all of the rental qualifications, and help maintain the integrity of a community. The state of California is facing a new economic challenge, and families across our state are struggling. What we need most is new investment in our housing market, not an extreme measure like Proposition 21 that will further destabilize it.”

The San Diego Union-Tribune newspaper editorial board wrote: “Expanding rent control will make the California housing crisis worse. Rent control is the wrong way to help Californians struggling with housing. Lawmakers who are juggling a lot during this pandemic need to not lose sight of that. The long-term solution is listening to experts and building new houses.”

The San Francisco Chronicle newspaper editorial board described Prop. 21 as “a rent control retread unimproved by age.”

The Press Democrat newspaper in Santa Rosa, Calif. said Prop. 21 is a proposed “rent control law that won’t end the housing crisis.” Its editorial resource stated: “California voters soundly rejected rent control in the November 2018 election for a good reason: It won’t alleviate the state’s housing problems. In fact, economists almost universally agree that imposing rent control would be counterproductive. State lawmakers voted in 2019 to cap rent increases anyway, while requiring landlords to show `just cause’ for evictions. Yet, here we are again, barely a year later, asked to decide another rent control initiative. Voters should once again say no.”

The headline in the Orange County Register read, “Rent control is the horrible idea that won’t go away.” Its editorial stated: “California’s housing affordability isn’t that complicated. There is high demand and inadequate supply. If the goal is to expand the accessibility of housing, it is necessary to increase supply. Rent control is incredibly effective at backfiring on that front. Research has shown that San Francisco’s rent control policies resulted in many landlords removing housing units from the market. Renters in non-rent-controlled units, meanwhile, faced even higher rents than would otherwise be the case.”

For more information about the campaign against Prop 21, visit www.noonprop21.org.

_______________________________

Our Mission is to empower Realtors to flourish while being accountable to each other
our clients and our community.

Since 1928, the Pacific Southwest Association of REALTORS® has played a significant role in shaping the history, growth & development of the Real Estate industry in San Diego County. This program is only open to REALTORS® and PSAR Affiliate Members. There is no cost for attending this program.

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.”

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.

• 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

PSAR is recommending a “no” vote on California Proposition 15, a ballot measure that calls for higher property taxes on commercial and industrial real estate.

Prop. 15 is referred to as the “Split Roll Ballot Initiative, Schools and Communities First.” If approved, Prop. 15 would require calculating property taxes for commercial and industrial real estate based on current market value. It would raise property taxes on supermarkets, shopping malls, office buildings, factories, movie theaters, hotels, restaurants, sports stadiums, warehouses, self-storage facilities, major retailers and other businesses.

Proponents claim $6.5 billion to $11.5 billion generated from the increased property taxes would be allocated to schools (40 percent) and local government (60 percent).Opponents say Prop. 15 is a direct attack on Proposition 13, which limits annual increases in assessed property value to 2 percent. Prop. 13, passed by California voters in 1978, remains a godsend to fixed-income retirees and middle-income workers who would be incapable of paying the increased property tax assessments over the last 40 years as California home prices have quintupled. If enacted, this massive tax increase will prompt companies to flee California at a time when businesses are already struggling.

The San Diego County Office of Assessor-Recorder-County Clerk, which opposes Prop. 15, recently delivered a presentation to PSAR members. The presentation included the contention that supporters for Prop. 15 are laboring under five false premises:

1. Businesses don’t pay their fair share of property taxes (in fact, taxes paid by commercial property owners have increased 1,930 percent since 1978);
   
   
2. Prop. 15 won’t impact small businesses because properties worth less than $3 million are exempt (in fact, the average commercial or industrial parcel in San Diego County is valued at $3.1 million, which is above the exemption level);
   
   
3. Prop. 15 will impact only property owners, not tenants (in fact, if tenants are required to pay higher rents by property owners who need to recoup the property tax increase, then costs will impact tenants/customers);
   
   
4. Prop. 15 won’t impact residential housing (in fact, raw land zoned for residential and commercial-industrial uses will be reassessed and mixed-use properties with more than 25 percent commercial also will be reassessed);
   
   
5. Prop. 15 won’t impact female-, immigrant- and minority-owned businesses (in fact, the groups opposing Prop. 15 include social justice leaders, such as the NAACP, California Black Chamber of Commerce, California Hispanic Chamber of Commerce, CalAsian Chamber of Commerce and National Action Network).

A Berkeley Research Group study found increasing property taxes on small businesses will hurt female- and minority-owned businesses the most, and up to 120,000 private-sector jobs will be lost. Prop. 15 would incentivize local governments to approve business projects to replace existing housing in order to generate greater property tax revenue.

Ernie Dronenburg, Jr., San Diego County Assessor-recorder-County Clerk, said, “Proposition 15 won’t close the door on an imaginary corporate tax loophole, but it will close the doors of real San Diego small businesses. Prop. 15 is the wrong idea at the wrong time.”

The San Diego Union-Tribune editorial board wrote: “No on Proposition 15, vast tax hike during a deep recession is a crazy idea. Approving Proposition 15 is not about preserving essential government services, as advocates assert. It is about preserving generous government pensions that threaten to bankrupt government agencies across the state. Send a message that pension reform should precede a massive tax hike and vote no on Proposition 15.”

Dan Walters, columnist with CalMatters, a public interest journalism venture, wrote: “Both proponents and opponents know that Proposition 15 is a proxy battle over whether Proposition 13 is still an untouchable icon. The measure’s backers had no way of knowing that the COVID-19 pandemic and the severe recession it spawned would visit themselves on California, changing the tenor of their battle with business groups over the issue. While proponents argue that the new revenue is needed to keep vital public services, including schools, from being slashed, opponents argue that with businesses already suffering, this is the wrong time to saddle them with more taxes.”

Antonio Villaraigosa, former Mayor of Los Angeles and Speaker of the California State Assembly, wrote in a CalMatters column: “This poorly drafted tax measure will disproportionately hurt everyday Californians during the worst economic crisis since the 1930s. It will put significant pressure on jobs in general, but private sector union jobs in particular. Because Prop. 15 raises property taxes, those higher taxes will get passed on to small business tenants, who rent. These businesses, in turn, will pass higher costs on to consumers in the form of increased prices on everything we buy, groceries, fuel, utilities, clothing and health care. California’s cost of living is already among the nation’s highest. Prop. 15 will drive the cost of living even higher.”

For more information about voting “no” on Prop. 15, visit https://noonprop15.org. The following statement is on the website: “Amid an unprecedented economic crisis, special interests are pushing Prop 15 on the November 2020 statewide ballot that will destroy Prop 13’s property tax protections and will be the largest property tax increase in California history. If businesses lose their Prop 13 protections, homeowners will be next.

“Prop 15 will raise taxes on business property, leading to higher rents for small businesses. Ultimately, Prop 15 will make income inequality worse by driving up the cost of living for just about everything we need and use, like food, utilities, daycare and healthcare.

“We must reject Prop 15 and maintain Prop 13 protections that have kept property taxes affordable and provided every taxpayer who buys a home, farm or business property with certainty that they can afford their property tax bills in the future. Now is not the time to raise taxes and bring more uncertainty to businesses and all Californians.”

County Assessor Comments on Prop 15 - "Unfortunately, Prop 15 hides that it is the largest property tax increase in California history that will"... Read More

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