Page 15 - AAGLA-APR 2022

Executive Director’s Message
EXECUTIVE DIRECTOR’S MESSAGE
Want to Have a T.O.P.A. Party?!
T.O.P.A., T.O.P.A...!!! By Daniel Yukelson
he state Legislature, County Supervisors, City Councils, Rent Stabilization Boards, and housing departments, committees and commissions seemingly work daily to slowly, but surely chip away at property ownership rights. Rather than create workable solutions that help our many affordability and
housing challenges, we rental property owner are seemingly forced into a corner and always paying higher taxes through “new and improved” (said with all sarcasm) parcel assessments, increased government mandated fees, and never-ending costly regulations. Our hard labor and price- controlled rents are being extracted to pay for housing, not our families, but the homeless who need abuse and mental health treatment before fulfilling their housing needs and I often feel like I am paying for someone else’s kids’ college education and not those of my own daughters. This, for California taxpayer and businesses, is a heavy burden to bear for a little sunshine, and lots of draught, crime, dirty streets and sidewalks, and inept leaders. What can I say?
And could there be anything worse? What is the next proverbial “shoe to drop?” Well, here it is...the T.O.P.A. law, or Tenant Opportunity to Purchase Act (Sometimes referred to as a “C.O.P.A.” or “Community Opportunity to Purchase Act”), that maybespreadinglikeOmicrontoacityorcountynearyou! I know, fooled you! You thought I had misspelled “Toga” as in “Toga Party,” the Greco-Roman-themed costume party where attendees wear a toga (normally made from a bed sheet) with sandals and made famous in the movie, “Animal House” starringJohnBelushi. Iwish,IonlywishT.O.P.A.lawcouldbe so much fun and humorous.
Potentially under consideration by the County of Los Angeles
and the City of Berkeley (now you know where in trouble), and a watered-down version passed in Oakland, one in Washington, D.C. and other jurisdictions, T.O.P.A. policies are putting small rental housing providers out of business paving the way for large, nonprofit housing conglomerates, government entities and land trusts to swoop-in and buy (steal) our properties which has the impact of suppressing property values under the guise of converting existing housing to deed-restricted, low-income housing and to prevent displacement of renters.
This T.O.P.A. concept is a potentially growing problem, and we need to be on guard and ready for a fight. Under a T.O.P.A., in general, rental property that is put up for sale must first be offered for purchase for 30-to-60 days (first right of refusal) by a designated government entity, government approved non-profit, or the poor, rent burdened renters at your property. Then, if there are “no takers” when first offered, a property owner can sell to a third party, but under a T.O.P.A., the designated government entity, government approved non- profit, or renters at your property are allowed to match the offer you received (matching right).
Imagine the impact any T.O.P.A. might have on the sale value of your property! What buyer wants to make a bid knowing another buyer has a right to match and steal the property from underneath them. You can throw out the door any idea of a “lease to purchase” agreement by the way, which goes out the door if a T.O.P.A. is imposed at your jurisdiction. And tough luck if you are trying to go for a tax-free, Section 1031 Exchange and must allow the T.O.P.A.’s first right of refusal and matching right eat into your 180 to complete your exchange. What if you are desperate for cash and need a quick sale to a cash buyer – a T.O.P.A. is your enemy.
Now, let’s go on offense, which as you may have read in one
APARTMENT AGE • APRIL 2022 15