The Other Real Estate Related 2020 California Propositions
Both of these Propositions were defeated. However, the voting numbers may show some indication of what we can expect in the future:
- Proposition 21: The intent of this Proposition was to expand rent control throughout the State. It was strongly supported by tenant’s groups. It was soundly defeated, with over 60% of the voters voting against it. The sense was that Californians do not favor rent control. We may see some modification of this in future elections, but it is obvious it’s going to be an uphill battle.
- Proposition 15: As you know, the “classic Prop. 13” limits property taxes to 1% of sales price(plus certain voter approved additional fees, such as Mello-Roos Bonds), and can only be adjusted at the time of sale. This applies to all real property in California. Proposition 15 attempted to change the law to allow reassessment of most commercial and industrial property annually. It would have increased operating costs for thousands of businesses in the State. Proposition 15 also failed, but only by a vote of 52% of the voters. We can probably expect to see this again in some form in a future election.
For the most part, the results of the voting on Propositions 15 and 21, and from last week’s Blog Post, Proposition 19, have favored homeowners.
Please let us know if you have any questions or comments on the above or any real estate matter. You can reach us at 949-500-6365, Frank@FrankDiLauro.com, or our website, www.FrankDiLauro.com
