San Diego Voter: Housing Issues in Upcoming Election
San Diego Voter: Housing Issues in Upcoming ElectionOctober 29th, 2020
Prop 15 - Split Roll
PROP 15 INCREASES FUNDING SOURCES FOR PUBLIC SCHOOLS, COMMUNITY COLLEGES, AND LOCAL GOVERNMENT SERVICES BY CHANGING TAX ASSESSMENT OF COMMERCIAL AND INDUSTRIAL PROPERTY. INITIATIVE CONSTITUTIONAL AMENDMENT. Taxes such properties based on current market value, instead of purchase price. Fiscal Impact: Increased property taxes on commercial properties worth more than $3 million providing $6.5 billion to $11.5 billion in new funding to local governments and schools.
Currently, property tax assessed values are the same for both residential and commercial properties. In general, the values are limited to 2% increase per year and are reassessed at the time of sale.
If this is implemented, commercial properties ONLY would be reassessed more frequently. This would increase property taxes paid by commercial properties.
Key concerns about this are:
- Consumer prices would increase because the additional property tax costs would be passed down in the form of price increases.
- Residential properties would be at future risk.
Prop 19 - Tax Portability
PROP 19 CHANGES CERTAIN PROPERTY TAX RULES. LEGISLATIVE CONSTITUTIONAL AMENDMENT. Allows homeowners who are over 55, disabled, or wildfire/disaster victims to transfer primary residence’s tax base to replacement residence. Changes taxation of family-property transfers. Establishes fire protection services fund. Fiscal Impact: Local governments could gain tens of millions of dollars of property tax revenue per year, probably growing over time to a few hundred million dollars per year. Schools could receive similar property tax gains.
Currently, property tax values are limited to an increase of 2% per year and are reassessed at the time of sale. Many homeowners don't move because it would cause a jump in property taxes on the their new home. However, after the age of 55 or if you are disabled or a wildfire disaster victim, you can purchase a new home and port your property tax basis to your new home so you don't have a jump in property taxes. The new home must be of equal or lower value than your current home, you can only do it one (1) time in your lifetime and only 10 counties in California participate in the program.
If this bill were to pass, you would be able to port your property taxes multiple times. The home could be more expensive home and you would only pay an incremental difference in taxes. By allowing multiple moves and allowing the replacement home to be more expensive, it frees up the lower priced homes in a more affordable market.
Also, currently inherited homes keep their tax basis. If the home is passed down from one generation to the next, the taxes would theoretically stay low as long as it is in the family. It is unlikely the home would be sold which limits the housing inventory. This bill would change that so if the home is inherited, the new owner must live in the home to keep the property tax basis. If would not qualify as a rental or investment property.
Prop 21 - Rent Control
PROP 21 EXPANDS LOCAL GOVERNMENTS’ AUTHORITY TO ENACT RENT CONTROL ON RESIDENTIAL PROPERTY. INITIATIVE STATUTE. Allows local governments to establish rent control on residential properties over 15 years old. Local limits on rate increases may differ from statewide limit. Fiscal Impact: Overall, a potential reduction in state and local revenues in the high tens of millions of dollars per year over time. Depending on actions by local communities, revenue losses could be less or more.
Allows more rent control. There's rent control currently in place but this allows cities and counties to be more restrictive.
Measure A - Prop tax increase
MEASURE A GENERAL OBLIGATION BONDS FOR AFFORDABLE HOUSING. To provide permanent and supportive housing for extremely low- to low-income individuals and families, including supportive mental health and substance abuse services, for populations including veterans, seniors, the disabled, youth and the homeless, shall the City of San Diego issue up to $900 million in general obligation bonds financed by property tax assessments estimated between approximately $3 and $21 per each $100,000 of assessed valuation for fiscal years 2022 through 2068?
Increases property taxes by $3 and $21 per each $100,000 of assessed value. This is an increase in housing costs when costs are already high.
Measure N - City of Santee - Voter Approval for New Development
Shall an ordinance amending the Santee General Plan requiring voter approval for development actions that would increase residential density or intensify land use over that currently permitted by the General Plan be adopted?
If this passes, voter approval would be required for new development. This would delay the time it takes for new housing to be built and increase the costs of development which means the price for new homes would go up.
Multiple Buyer Needs