Click the Take Action button and call your Senator TODAY to ask them to Vote NO on SB 567!
SB 567 could be voted upon as early as Wednesday, May 24!

SB 567 could be taken up for a vote on the Senate Floor as early as Wednesday, May 24.

Call your Senator today and ask them to vote NO on SB 567 (Durazo) – because it will hurt small housing providers.

SB 567 violates the legislative agreement reached on AB 1482, the Tenant Protection Act of 2019 (the “rent cap” law), by dramatically expanding its provisions to impose even greater restrictions.

C.A.R OPPOSES SB 567 (Durazo), which expands AB 1482’s “just-cause” eviction provisions, making it even more difficult for housing providers to terminate tenancies when necessary. SB 567’s expansion of these “just-cause” eviction provisions will harm small housing providers by changing the rules on which they have come to rely and which were just enacted three years ago in AB 1482.

Background

AB 1482 subjected most rental properties in the state to statewide rent caps and “just-cause” eviction provisions for terminating tenancies. AB 1482 was the result of extended negotiations between the Governor, the Legislature, and stakeholders to come up with a statewide measure that would restrict tenant rent increases and restrict a housing provider’s ability to terminate a tenancy, but that would not drive housing providers out of the business. While most housing providers oppose these restrictions, they have learned how to work with them when planning for the operation of their businesses.

SB 567 undoes the legislative agreement reached on AB 1482 by, among other things, making it more difficult for small housing providers to move elderly relatives, or their adult children and grandchildren or other family members, into a unit on their property. Also, the bill makes it more difficult for small housing providers to exit the rental housing business, even if they are suffering financial hardship and need to get out.

C.A.R. is OPPOSING AB 567 because:

Current law is already among the strongest in the nation. Current state law already provides some of the most stringent renter protections in the nation. Specifically, AB 1482 already establishes a statewide rent cap and provides “just-cause” eviction protections for renters.

Small housing providers have come to rely on this balanced approach. SB 567 upends the agreement reached by the Legislature on AB 1482 and changes the rules applied to small housing providers just three years after they were enacted, thereby pulling the rug out from underneath small housing providers.

It disproportionately harms small housing providers and especially small housing providers of color. Costs associated with the care of elderly parents and family members disproportionately burden individuals and families of color and those without generational wealth. To alleviate some of these cost pressures, small housing providers who own a small property will move in an elderly parent or family member to provide both housing and care. SB 567 makes it more difficult for these housing providers to move in and care for an elderly family member.

It dramatically changes the rules midstream. In 2020, millions of small rental properties became subject to the rent cap and “just-case” eviction provisions established by AB 1482. Then the pandemic hit just three months after the bill took effect, forcing small housing providers to comply with a complicated new law while also navigating eviction moratoriums and trying to keep food on the table for their families. SB 567 will subject these properties to more radical restrictions – just as small housing providers were starting to recover and stay afloat financially.

Please call your Senator today and ask them to vote NO on SB 567 (Durazo) – a bill that violates the legislative agreement reached on AB 1482, the Tenant Protection Act of 2019 (the “rent cap” law), by dramatically expanding its provisions to impose even greater restrictions on small housing providers.

Gas Water Heater and Furnace Ban

On Wednesday, March 15, the Bay Area Air Quality Management District (BAAQMD) Board of Directors will vote to ban natural gas water heaters in each of the Bay Area’s nine counties by 2027 and natural gas furnaces by 2029. CONTACT your local representatives to the BAAQMD NOW to voice your opposition!

The Bay Area Counties impacted by this ban are:  Marin, Napa, Solano, Sonoma, San Francisco, San Mateo, Alameda, Contra Costa, and Santa Clara.

This ban will impact homeowners, housing providers, and even tenants.  Not only is it expensive to replace gas appliances with electric versions, but in most cases, homeowner will have to upgrade their electrical service, electrical panel, and interior wiring.

These upgrades could cost a homeowner tens of thousands of dollars to hundreds of thousands of dollars, depending upon the age of the home.

Some housing providers may not be able to afford this work and may have to sell their rental unit which harms tenants.  Furthermore, this proposed ban does not account for our seniors on a fixed income or those households who do not have the resources to pay for costly electrical upgrades.

All local Bay Area REALTOR® Associations understand how critical the environment is in our region’s quality of life.

There are better ways to protect the environment without putting homeowners and housing providers, and tenants at risk.  Financial incentives and grant programs for those homeowners wanting to convert to electric furnaces and water heaters is an alterative to an out-right ban on the sale and installation of these gas appliances.

Further information:

Regionally, two Potential Electrification Conversion Cost Studies have been conducted by the San Mateo County Association of REALTORS® and the Santa Clara County Association of REALTORS®. This will give you an idea of the costs that might be associated with conversion to all-electric. *Please note: electrical contractors interviewed for these studies cautioned that the costs they provided were those without a conversion mandate in place – anticipate significantly higher costs if a mandate is passed.

By Johnny Khamis

While we are still battling a housing crisis in the bay area one new tool can help free up family units onto the market soon. Prop 19 passed by the voters in November 2020 allows seniors, disaster victims and the severely disabled to transfer their property tax base statewide. Now that it has fully gone into effect, many questions have been brought up about how to utilize the benefits of this new law. In this article we will take a closer look at some of the positive effects of Prop 19 and how it can help solve our need for creating more housing inventory. 

You may recall that up until Prop 19 passed, Seniors (55 and older), only had the ability to preserve their tax basis on their home when moving to a home in a county accepting the transfer of basis and were required to buy a home of equal or lesser value. Under Prop 90 Seniors only had this opportunity if they were moving to Alameda, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Mateo, Santa Clara, Tuolumne, or Ventura County. This restriction had the effect of making Seniors feel trapped in homes that no longer meet their needs and created shortages for much-needed family housing. 

Now under Prop 19, older homeowners, those who are severely disabled, or victims of wildfires or natural disasters can move anywhere in the state without location restrictions. Qualified homeowners can transfer their existing property tax base to another property regardless of the cost of the replacement home (with an adjustment upward to their tax basis if the replacement property is of greater value).

For example, If my Aunt sold her 4 bedroom home in Morgan Hill for $1 million to move to a senior living condo in San Mateo, she is able to preserve her tax basis as long as the new condo is equal to or less than the value of the home she is selling.  

Now if Aunt Lily wants a high-rise condo in San Francisco and pays $1.2 million she would still be able to preserve most of her tax basis.

The State Board of Equalization has created several new forms to enable homeowners to claim the tax savings. They have made the forms available to all county assessors, but some offices are still working on implementing them. Learn more on the Assessor’s website. You can also use SCCAOR’s Prop 19 tax basis portability calculator. The Santa Clara County Assessor’s Office has created a Prop 19 inheritance tax calculator

Now that seniors have been given the freedom to move closer to their grown children or into housing designed to cater to their needs, we can expect the inventory of 3 and 4 bedroom housing to go up.  While this is one step in increasing family housing inventory, we must continue to build more housing if we are ever going to work our way out of our housing crisis.

CA COVID-19 Rent Relief

 

UPDATE: HOUSING PROVIDERS WILL NOW RECEIVE 100% OF THE BACK RENT OWED.

 

Santa Clara County tenants and landlords, please note the following updates to the rent relief program:

  • The Santa Clara County local rent relief program is live! The program is targeted towards  Extremely Low-Income tenant households (≤30% of AMI) and will also connect eligible tenants to other programs to keep them stably housed. Visit www.sccrenthelp.org for more information and to apply for rent relief.
  • Some Santa Clara County Extremely Low-Income tenant households (≤30% of AMI) who applied on the State’s website between March 15th and May 1st, may have received an email from the program that they were “rejected” and must apply through the local program.
  • Landlords should not wait to apply. The State has represented that they are committed to funding 100% of the rental arrears and are working on making sure landlords with previously submitted applications will receive 100% of the qualifying rent arrearage.

 

As of March 15, 2021, the state has begun to accept applications to distribute the first $2.6 billion of direct rental assistance. This was allocated to California from the December 2020 federal stimulus package. Tenants and housing providers will be eligible for up to a year of unpaid back rent (April 2020 through March 2021) and allow up to three months of future rent payments (April 2021 through June 2021), depending on the availability of funds. Both tenants and housing providers are eligible to apply if certain criteria are met. 

    • The program is voluntary for housing providers to participate and apply
  • Tenants of housing providers who do not opt in to the program will be eligible to apply for a 25% payment of unpaid rent so they will be protected monthly from the eviction moratorium until it expires.

The bill prioritizes households with the highest need for rent relief, targeting households with less than 80% area median income (AMI) and utilizing rounds to prioritize those who need rent relief the most:

  • Round 1: Below 50% AMI or unemployed for 90 days.
  • Round 2: Income below 80% AMI and in a community disproportionately impacted by COVID-19.
  • Round 3: Everyone below 80% AMI not addressed in round 1 or 2 above.

The state has created a housing provider checklist and a tenant checklist for the requirements to complete a rental assistance application.

The portal that you can use to apply for state rental assistance is now live.

The City of San Jose and the County of Santa Clara will receive additional funds to implement local rental assistance programs. These local programs will give first priority to extremely low-income tenants making 30% or less of the Area Median Income (AMI). Local aid has been made available and applications are accepted at the same link as above.

The most recent federal stimulus package has been signed into law (American Rescue Plan) and will allocate additional funds to these rental assistance programs, as well as a homeowner assistance fund (mortgage assistance, unpaid utilities, and more).

In order to preserve their rights to seek damages and pursue unlawful detainer lawsuits against non-paying tenants after the expiration of the eviction moratorium on June 30, 2021, and their rights to apply for missed rent assistance, landlords must follow these procedures:

  • No later than February 28, 2021: Provide tenants who missed rent payments between April 1, 2020 through February 1, 2021 with an informational notice of the extension of the Act and the establishment of the rental assistance program. An example of this notice prepared by the California Department of Real Estate is available here. Landlords who do not timely provide this notice cannot serve tenants with a 15-Day Notice to Pay Rent or Quit (described below).
  • Each time a tenant fails to pay the rent due for a rental period (typically the first of the month), serve the tenant with:
  • (1) a “Notice from the State of California” – An example of this notice prepared by the California Department of Real Estate is available at this link.
  • (2) a blank “Declaration of COVID-19-Related Financial Distress” – An example of this notice prepared by the California Department of Real Estate is available at this link.
  • (3) a “15-Day Notice to Pay Rent or Quit” – An example of this notice prepared by the California Department of Real Estate is available at this link.
  • If the landlord has information on file that the tenant is a “high-income tenant” who makes over 130% of the median income in that county, they may request additional information proving the hardship. An example of this notice to be used in this circumstance prepared by the California Department of Real Estate is available at this link.

The California Association of REALTORS recently hosted a webinar on SB 91, which can be viewed here (required C.A.R. login).

Congressional leaders struck a deal Sunday on a nearly $900 billion coronavirus relief bill that will bring a new round of support to millions of Americans before year’s end. The bill passed both houses of Congress yesterday, and the President signed it into law earlier this week.

The agreement contains many priorities championed by NAR, including rental assistance, a fresh round of funding and simplified forgiveness for SBA loans, and more direct payments to Americans.

“Through this bill, our members will continue to have access to unemployment and small business assistance.  But perhaps one of the biggest wins is rental assistance, which we have fought hard for since the last major COVID-19 bill was passed in April. It will bring instant relief to both mom-and-pop property owners and American families in danger of going over a financial cliff at the end of the year,” says Shannon McGahn, chief advocacy officer for NAR.

“While this bill hit more traditional political obstacles than the ones passed earlier this year, it was always a must-pass bill,” McGahn says.  “One in five of our members took out a PPP loan. We made sure that Congress knew these items were critical to America’s 1.4 million REALTORS® and the economy as a whole.”

Specifically, the agreement reportedly:

  • Provides a new round of direct stimulus payments of $600 to most Americans including dependents
  • Extends all unemployment assistance, including the Pandemic Unemployment Assistance (PUA), through April 19, 2021, with a $300 weekly boost in payments through  March 14.
    • Unemployment benefits are extended to the self-employed
  • Provides an additional $284 billion for Paycheck Protection Program (PPP) loans and $20 billion for Economic Injury Disaster Loans (EIDL) grants
    • Allows certain eligible businesses to receive a second PPP loan
    • Creates a simplified forgiveness process for most PPP borrowers
    • Allows for deductibility of business expenses paid for with PPP funds
  • Provides $25 billion to the states through Sept. 30, 2022, for rental assistance and allows landlords to apply for funds on behalf of tenants
    • Includes payments for rent in arrears as well as utilities and other expenses related to housing
    • Extends federal eviction ban through the end of January
  • Provides $7 billion to states for broadband expansion, including $300 million for rural broadband
  • Provides new money for schools and vaccine distribution

Read more on NAR’s website about how this will impact your real estate business.

SCCAOR Supports MEASURE S Santa Clara Valley Water District Parcel Tax 2/3 Vote

 Safe, Clean Water, and Natural Flood Protection Program. 

Measure Language: 

“Shall the measure to renew the Safe, Clean Water and Natural Flood Protection Program which ensures public health and safety by:

  • protecting the drinking water supply, dams from earthquakes and climate change; 
  • reducing pollution, toxins, and contaminants in waterways; and 
  • providing flood protection; 

by renewing Santa Clara Valley Water District’s existing parcel tax without increasing rates, averaging $.006 per square foot annually as described in Resolution 20-64 until ended by voters, raising approximately $45,500,000 annually, with qualifying senior exemption, annual audits, independent citizen oversight be adopted?”

 

While this is the only local ballot measure that SCCAOR has taken a position on, we encourage you to review the full list of local ballot measures.

The Santa Clara County Association of REALTORS® (SCCAOR) is proud to announce endorsements for the following candidates for the City of San Jose General Election.

  • Incumbent Dev Davis for City Council District 6
  • Incumbent Lan Diep for City Council District 4

The SCCAOR Board of Directors recognizes these candidates as aligning with our mission as a pro-housing and property rights association and are proud to offer them our endorsement. To get involved in either candidate’s race or if you are interested in any promotional material, such as lawn signs, please contact the candidate on their campaign websites listed below.


Councilmember Davis is a proud homeowner in District 6 and wants to continue to make San Jose a great place to raise her family. She has been a champion of REALTOR Party values consistently defending private property rights and homeownership while making the necessary decisions to increase affordable housing. In her first term she has successfully eliminated barriers to building ADUs, facilitated new development of affordable housing for those most vulnerable such as veterans and seniors, while protecting existing neighborhoods and homeownership opportunities. In her second term Councilmember Davis plans to continue to protect home ownership and create more affordable housing for the most vulnerable populations to address the housing and homelessness crisis in our region.

“I am proud to receive the endorsement of SCCAOR for my re-election campaign. It has been an honor to serve as San Jose’s District 6 Councilwoman for nearly four years. Over this time, I have worked hard to be collaborative and to do what is best for the residents of District 6 and our city. There is more for us to do together, which is why I hope you will support my re-election.”
-Dev Davis

Dev’s Website Contribute to Dev Dev on the Issues

 


Councilmember Diep has called San Jose home for over 20 years. He is a true voice of his community and is consistently working to gather as much input from the District 4 constituents as possible. The Councilmember has been a consistent advocate for REALTOR® Party values, with a focus on increasing the housing supply in the City of San Jose. He strives to make it easier to get shovels in the ground; streamline our permitting process, reduce fees, and cut red tape so we can begin to increase our housing supply and reduce costs for everyone. Councilmember Diep will continue to work to build more housing of all types and affordability to ensure the right home exists for every person in the community.

 “I am honored to receive the endorsement of the Santa Clara County Association of REALTORS® as I continue to fight for a more accountable, transparent, and responsive San Jose. I’m proud of what I’ve accomplished, but I know there’s still so much more to do.”
-Lan Diep

Lan’s Website Donate to Lan Lan on the Issues

 

The Santa Clara County Association of REALTORS® (SCCAOR) is proud to announce endorsements of Alex Kennett for re-election to the Santa Clara Valley Open Space Authority as the District 1 Director. The SCCAOR Board of Directors recognizes Alex as aligning with our mission as a pro-housing and property rights association and are proud to offer him our endorsement.

“I am proud to receive the endorsement from SCCAOR and continue to represent the real estate industry as I serve on the Open Space Authority.”
-Alex Kennett

Alex is a member of SCCAOR and a past Chair of the Local Government Relations Committee. He has a strong understanding of REALTOR party values making him a great choice to continue to serve on the Open Space Authority. Alex is a long time resident of south county and knows the region very well. This gives him the expertise to understand the important balance between protecting our region’s valuable green space and facilitating new housing development in the right areas.

The Santa Clara County Association of REALTORS® (SCCAOR) is proud to announce endorsements for the following candidates for the City of Santa Clara General Election.

  • City of Santa Clara District 4 Incumbent Councilmember Teresa O’Neil
  • City of Santa Clara District 5 Council Candidate Bob O’Keefe
  • City of Santa Clara District 6 Council Candidate Anthony Becker

The SCCAOR Board of Directors recognizes these candidates as aligning with our mission as a pro-housing and property rights association and are proud to offer them our endorsement. To get involved in either candidate’s race or if you are interested in any promotional material, such as lawn signs, please contact the candidate on their campaign websites listed below.


Councilmember O’Neill is a longtime resident of Santa Clara and cares deeply about the community and the residents. She believes her primary duty is to represent the residents of Santa Clara. She believes that a solid economic foundation is critical to the ongoing success of Santa Clara. Her top priorities include focusing on the economic recovery and growth needed after the COVID-19 pandemic and increasing the availability and affordability of housing in the City of Santa Clara.

“I am very pleased to have the support of the Santa Clara County Association of REALTORS®. I hope we can work together to find better ways to make sure everyone in Santa Clara County has a home. This is such a difficult challenge and we need all hands on deck to find a solution.”
-Teresa O’Neill

Teresa’s Website Donate to Teresa Teresa on the Issues

 


Bob is a proud native of the City of Santa Clara and now is ready to serve the City he has called home and loved for many years. He has a passion for public service as a retired Lieutenant of the CA Highway Patrol, Board Member of the Old Quad Residents Association, and former member of the Neighborhood – University Subcommittee. Bob is committed to re-vitalizing the downtown core and building more affordable ownership housing opportunities in the City of Santa Clara.

 “I consider SCCAOR a vital community stakeholder and look forward to a long and engaging relationship.”
-Bob O’Keefe

Bob’s Website Contribute to Bob

 


Anthony is a lifelong Santa Claran and current member of the Planning Commission. He is ready to take his public service to the next level by representing District 6 as their Councilmember. His background on the Planning Commission gives him the expertise needed to continue to increase development opportunities in the City of Santa Clara. Anthony has seen the cost of living in the region skyrocket during his life and wants to make housing more affordable and available for all residents. He is supportive of facilitating more mixed use housing development by reducing barriers to construction such as a cumbersome planning process, complex fees, and unnecessary requirements such as parking minimums.

Anthony’s Website Donate to Anthony Anthony on the Issues