Page 16 - AAGLA-JAN 2022

Executive Director’s Message
Continued from page 15
And then, there are “those” ballot initiative proposals. And we all thought Propositions 10 (2018) and 21 (2020) were bad! Well, hold onto your hat’s folks. First, we have what I like to call the “Weinstein Local Control Over Housing and Zoning” initiative, which if passed, would allow local jurisdictions to preempt state laws on housing and zoning issues – you can say goodbye to the Costa Hawkins Rental Housing Act, which allows for vacancy decontrol (a/k/a, you can charge whatever rent you want for new tenancies) and exempts newer construction and single-family homes from the jaws of rent control. If passed, for many local jurisdictions, we will also be saying goodbye to the Ellis Act (allows us to exit the rental housing business – condominium conversions, etc.) and the new laws passed to facilitate construction of accessory dwelling units (ADUs) and density.
Next up to bat, we may see another ballot initiative I like to refer to as the “New Split-Roll” initiative, which would add another 1% of assessed values to all properties over $4 million in assessed value and grants an option to increase to an additional 1.2%. This proposal could result in an approximately $20 billion to $24 billion increase in property taxes. This additional property tax money would be deployed in the state’s wealth transferring scheme and get paid out to owners of single-family homes who would see their homesteading exempting increase from $7,000 to $200,000 (a savings of about $1,900 in property taxes each year) and renters who would receive increased renters’ credit when filing their tax returns provided; however, they earn less than $200,000 for single filers and $400,000 for married filers. Wow! I thought the whole idea behind the renters’ credit was to help low-income tenants, and not to help someone making $200,000 per year (or married households making up to $400,000 per year!).
Then, there is a long, long list of local initiatives that we will see such as cities like Oxnard, Ventura, South Pasadena, San Fernando, Pasadena, Glendale, and others entertaining discussions on rent control, rental registries, and tenant protections because organized tenant groups are nagging for the keys to our hard-earned castles. Discussions and
studies will take place over crafting regulations to chip away at important property rights we hold with our ownership, such as the County of Los Angeles’ plans to evaluate a “Tenant Opportunity to Purchase Act” or “T.O.P.A” whereby we property owners would be forced to grant to our tenants or their proxy non-profit organization, a right of first refusal and matching right to purchase our properties should we decide to put them up for sale. So, if you want to complete a 1031 Exchange, the 30-to-60-day first right of refusal and the 30-to-60 day matching right the government wants to force you to grant to your rent burdened tenants so they can consider purchasing your property, you will likely be very challenged to meet your 45-day and 180-day requirements to complete the tax-free exchange transaction.
So, as we finally round the corner on the moratoriums, let’s all take a deep breath, grit our teeth, and continue to fight- on. What can I tell you! Let’s all get on the offensive and defense, defense, and defense. Seriously, now is not the time to complain about our dues and having to listen to a few minutes of sponsor messages during our webinars that are imperative to support our operations, the services we deliver to our members, and our many lawsuits and government advocacy efforts. Now is the time, more than ever before, to make a contribution to our Political Action Committee (www.AAGLA.org/candidatespac) that helps us to sway votes in our favor, or our Legal Fund (www.AAGLA.org/legalfund) that helps fund our five ongoing lawsuits that seek to protect your property rights. Be bold by contributing generously in order to start the New Year off right. If you help arm us with needed financial resources, we can and will win!
Let’s put on the best defense ever. As George Washington once said, “If we desire to avoid insult, we must be able to repel it; if we desire to secure peace, one of the most powerful instruments of our rising prosperity, it must be known, that we are at all times ready for War.” With that, have a very happy New Year...I think! And, how about 2023? I am sure that I can securely say, 2023 will be more of the same, so just wash, rinse, and repeat.
Sullivan-Dituri Realtors
Residential Income Commercial
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Joseph E. Fitzsimons William T. Dawson
310-453-3341
www.Sullivan-Dituri.com
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16 JANUARY 2022 • WWW.AAGLA.ORG