A: Proposition 10, a ballot measure to expand rent control in California, was rejected by voters on Tuesday. With Proposition 10’s failure, a statewide ban on most new forms of rent control will remain in effect. The campaign to expand rent control was brought about to voters as housing has become less affordable throughout the state. Had the initiative passed, local governments would have been free to add new restrictions on rents.
Opponents of the measure argued that expanding rent control would increase the state’s housing shortage, exacerbate overall affordability issues and hurt the investments of single family homeowners. Instead of rent control, some economists contend the primary solution is to build more homes and have the new supply force prices down. But that would be hard to achieve, and other researchers contend that rent control is the only way cities can keep costs down cheaply and immediately.
Either way, despite Proposition 10’s defeat, rent control is likely to remain in the spotlight.
Kathleen Daly, Coldwell Banker, 415-519-6074, firstname.lastname@example.org; Lisa Lange, Coldwell Banker, 415-847-7770, Lisalange@coldwellbanker.com.
A: The defeat of Proposition 10 by a large margin is a good thing. The long-term impact of lifting rent control on all properties would discourage development and reduce the value of both homes and investment properties. This scenario would lead to less available housing.
San Franciscans are owning up to taking responsibility for solving our housing shortage. A NIMBY approach to housing is no longer acceptable. Thanks to the efforts and a $7 million contribution from Salesforce’s Marc Benioff the voters passed Proposition C 60 percent to 40 percent.
Proposition C will charge corporations with revenues of more than $50 million approximately one-half percent in gross receipts tax, raising $250-$300 million for homeless services and housing. Yes, there will be legal challenges. Press on.
Passage of these measures to solve the homeless problem are positive, said Michael Gallin of Vanguard Properties, primarily because “Mayor London Breed vows to take a good look at the homeless programs to determine what is working and what is not. She aims to make sure that there are no give away programs that do not insure results.”
Vanguard C.E.O. James Nunemacher, who also donates big time to Home for Home and other projects addressing San Francisco’s housing needs, said, “I am pleased that the election is behind us. I look forward to robust winter and spring markets.”
Anne Lawrence, Vanguard Properties, 415-533-6980, email@example.com.
A: Tuesday’s elections brought many changes. Two proposals that would have had great impact on housing, Propositions 5 and 10 brought mixed results. Proposition 5 was defeated. This initiative would have allowed seniors, disabled and victims of natural disasters to sell their homes and be able to transfer their tax basis.
With the defeat of this, many homes that could be offered for sale now will be held as in many cases not only is there disincentive to sell, many owners can’t afford to sell and then purchase another home without incurring the current tax rates which prices out many on fixed incomes.
Proposition 10, an initiative that would have repealed the Costa-Hawkins Rental Housing Act, was defeated. Had this passed, protections homeowners have enjoyed for more than 20 years would be removed and the housing crisis would have been further fueled by making it more expensive and harder for renters to find affordable housing.
Mary Fenton, Level 5 Real Estate, 415-205-5218, firstname.lastname@example.org.