A perspective from the California Association of Realtors (CAR)
Two initiatives on the statewide ballot this November could dramatically affect housing opportunities, private property rights, and the availability of affordable housing.
The first is Prop 5 is CAR’s own initiative to create new homeownership opportunities by generating more sales of single-family homes in existing neighborhoods through providing tax benefits for homeowners 55 and older as well as the severely disabled and natural disaster victim. Qualifying homeowners would no longer have to pay property taxes based on the purchase price of their new property; instead it would be a combination of their new and old home values. This measure is expected to increase inventory and benefit young families at a time when California faces a severe shortage of homes for sale.
The second measure of concern on the November ballot is Prop 10, which C.A.R. strongly opposes, is the so-called “Affordable Housing Act.” If passed, the longstanding Costa-Hawkins Rental Housing Act would be repealed and exacerbate the housing crisis, eventually allowing local governments to impose draconian rent control measures. Why? The majority economic studies say rent control is bad for the majority of renters because it decreases the amount of available housing. In addition, some landlords could circumvent rent control rules by tearing down old buildings to develop new homes or converting to condos.