Reposted directly from the California Association of Realtors. This content has not been moderated by Liz Kroft.
Prop 5 will allow seniors, the disabled and victims of natural disasters to move to a home better suited to their needs without facing drastically higher property taxes.
Prop 10, by allowing for the dramatic expansion in rent control, will actually decrease the availability of affordable housing because there will be no incentive for builders to create more housing.
Prop 5 is an initiative that will allow seniors, the disabled and victims of natural disasters to move to a home better suited to their needs without facing drastically higher property taxes.
Here’s how it will work:
Seniors often live in homes that no longer meet their needs because their homes may be too big or too far from family. If these homeowners want to downsize or move closer to their children, they could face a doubling or tripling of their property taxes, or what’s being called a moving penalty.
Proposition 5 provides appropriate relief by allowing those eligible the ability to transfer their current property tax base to the purchase of another home in any of California’s 58 counties. The new property tax for that individual would be based on their original home’s assessment, in addition to an adjustment consisting of the difference in value between the sale price of the original home and the sale price of the new home.
Proposition 5 would provide respect to seniors (many on fixed incomes), the disabled and disaster victims by allowing them the flexibility to move to a more suitable home. Right now, too many feel locked in place.
This will help boost the housing inventory in existing neighborhoods as older homeowners move from their single-family homes that no longer meet their needs and free up housing for the next generation.
Prop 10, the so-called “Affordable Housing Act,” would actually make the housing crisis worse by repealing the long-standing Costa-Hawkins Rental Housing Act, eventually allowing local governments to impose draconian rent control measures.
Here’s why Californians should vote NO on Prop 10:
Proposition 10 will reduce availability of affordable and middle-class housing. Academic experts from the University of Southern California, U.C. Berkeley and Stanford agree that it would drive up rents, while discouraging new construction and reduce the availability of affordable and middle-class housing. Even the state’s nonpartisan Legislative Analyst has found that passage of Proposition 10 would both discourage new construction and result in existing rental units being taken off the market, reducing availability of rental housing.
Proposition 10 will increase the cost of existing housing. Proposition 10 will cause homeowners to sell or convert rental properties into other more profitable uses, such as short-term vacation listing services like Airbnb. That would increase the cost of existing housing and make it even harder for renters to find affordable housing.
Proposition 10 will cost taxpayers hundreds of millions of dollars per year, reducing revenues available for education and public safety. The Legislative Analyst also said that Proposition 10 would likely reduce the value of rental properties and single-family homes, driving down local property tax revenues by up to hundreds of millions of dollars per year. Driving down home values will hurt middle-class families and will also reduce the funding available for vital services like schools, public safety, road repairs, education, and fire safety.
Proposition 10 will eliminate homeowner protections. Proposition 10 repeals protections homeowners have enjoyed for over 20 years, and lets the government dictate pricing for privately owned single-family homes, controlling how much homeowners can charge to rent out their home – or even just a room. Proposition 10 might even lead to bureaucrats imposing oppressive surcharges when an owner takes a home off the rental market and chooses to occupy it.