Three things to keep an eye on in LA’s housing market this year

Rent control laws could expand to newer buildings

TRD LOS ANGELES /
Jan.January 03, 2018 02:58 PM
The L.A. Tenants’ Union staged a protest outside L.A.’s Housing Department in December 2016.

Affordable housing in California, specifically Los Angeles, will continue to be a major sticking point for legislators and residents in the coming months. With a housing crisis at hand and a package of housing bills recently signed into law, this year is sure to see a number of housing-related topics play out as voters decide the fate of much-debated bills, according to the Los Angeles Times. Here’s a list of the three major issues to keep tabs in 2018.

1. Rent control

Advocates for tenant rights filed a possible 2018 ballot initiative to repeal Costa-Hawkins, a 1995 state law that prohibits rent caps on single-family homes and apartments built after that year.  The hearing is scheduled to take place on Jan. 11 in the Assembly Housing and Community Development Committee. The laws barring rent control in Los Angeles are even stricter than in the rest of the state, as only buildings built before October 1978 in L.A. are allowed rent control.

2. Proposition 13

Proposition 13, a 1978 law allowing homeowners’ property tax bills to be based on purchase date rather than current market value, could see a flurry of changes in the new year. For starters, GOP legislators are hoping for a ballot measure that would force any tax increase to receive two-thirds voter approval to pass. (Prop 13 also dictates how governments can raise revenues.) Secondly, the California Assn. of Realtors is pushing an initiative that would allow residents over the age of 55 to use their Prop 13 tax break when purchasing a new home. Lastly, a potential “split roll” initiative could take shape, meaning commercial and industrial properties would pay higher property tax bills than homes. Democrats in the state Senate will also likely be searching for solutions to fight the newly adopted federal tax bill.

3. The future of 2017’s housing laws

Last year saw one of the greatest comprehensive packages of housing bills signed into law by Gov. Jerry Brown. This year, while unlikely to prove as pivotal, will see how the highly debated bills play out and whether or not more housing measures make it to Brown’s desk. San Francisco Assemblyman Phil Ting, chairman of the Assembly Committee on Budget, is searching for ways to incentivize local governments to increase housing construction. Democratic State Sen. Toni Atkins of San Diego, who authored last year’s real estate transfer tax legislation, might also become the Senate’s next president.  [LAT] — Natalie Hoberman


Related Articles

arrow_forward_ios
Michael Weinstein (Credit: Charley Gallay/Getty Images)

How 3 ballot measures in November could forever change California real estate

How 3 ballot measures in November could forever change California real estate
Gov. Newsom and Michael Weinstein (Credit: Justin Sullivan/Getty Images, Charley Gallay/Getty Images)

“We anticipate a tsunami of evictions”: Tenant advocates call on Newsom to tighten rent laws

“We anticipate a tsunami of evictions”: Tenant advocates call on Newsom to tighten rent laws
The coronavirus pandemic could worsen California’s affordable housing crisis

COVID-19 exposes the utter dysfunction plaguing affordable housing development in California

COVID-19 exposes the utter dysfunction plaguing affordable housing development in California
From left: Neil Shekhter and Governor Gavin Newsom (Credit: Kevin Scanlon, Justin Sullivan/Getty Images, and iStock)

Tenant group calls for CA rent strike

Tenant group calls for CA rent strike
Garcetti bans residential rent increases on rent-controlled units in LA
(Credit:iStockphoto)

Garcetti bans rent hikes for rent-stabilized units

Garcetti bans rent hikes for rent-stabilized units
Skid Row Housing Trust CEO Lee Raagas and a rendering of the project (Credit: Michael Maltzan Architecture via Urbanize)

Skid Row Housing Trust, Michael Maltzan Architecture plan mass-timber housing tower

Skid Row Housing Trust, Michael Maltzan Architecture plan mass-timber housing tower
Los Angeles City Attorney Mike Feuer (Credit: iStock)

City Attorney Mike Feuer will run for mayor. Here’s what it means for LA real estate

City Attorney Mike Feuer will run for mayor. Here’s what it means for LA real estate
Hobart Garden Apartments at 1344 N Hobart Boulevard (Credit: Google Maps)

Reiner Communities pays $48M for 142-unit East Hollywood complex

Reiner Communities pays $48M for 142-unit East Hollywood complex
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...