THE MOST RECENT LAWS/ORDINANCES/CASES INVOLVING REAL ESTATE

1. SB 567 Passes – Bad News for Landlords!!

SB 567, which I reported on several months ago, has passed. It has been watered down a bit with help from the Realtor’s Association. Still a big win for renters at the expense of landlords.

SB 567 will cause every rental unit in the state to be under rent control, including single family homes. It will significantly reduce rental rate increases to either 5% or the change in CPI, whichever is less. Any violation of the law will be a first-time $17,200 fine, plus paying tenants’ attorney’s fees.

2. LA County Defense of Renters Facing Evictions

LA County has created a program that supplies $60 Million of taxpayer money to pay attorneys to defend renters facing evictions. Phase I applies to low income renters in unincorporated areas of the county. It will eventually expand to all cities of Los Angeles County.

Comment: It looks like the County and the City are in competition to see who can stick it to the landlords more.

3. No more grass lawns starting January 1, 2029

AB 1572, if passed, would ban grass lawns from all commercial, retail, industrial, and all governmental buildings and parcels. HOAs are also banned from having grass in common areas.

Comment:  This law is supposed to help with conserving water. Are trees going to be next?

4. LA City Council Votes 10-0 to Disburse Mansion Tax Revenue

Only 1/3^rd of the money will go to low income housing. 2/3^rd of this money goes to direct assistance to low income renters and seniors, eviction defense attorneys, community outreach educational programs regarding tenants’ rights and landlord harassment.

5. LA Mansion Tax

This has only brought in $65 Million in the first four months. The voters were promised $900 Million per year when they passed the law last year.

Comment: Total fraud, not only on voters but on owners of real estate valued at more than $5 Million. Has severely chilled sales of both residential and commercial real estate in LA City.

6. Property Transfer Tax

Property transfer tax has been increased by 450% in certain cities. The standard property transfer tax is $1.10 per $1,000 in most counties and cities. Now in LA it is $4.50 per $1,000; Culver City $4.50 per $1,000; Pomona $2.20 per $1,000; Santa Monica $3.00 per $1,000.

Comment: Another side door method to erode the tax increase protections provided by Prop 13.

7. Santa Monica Copies the City of LA re: Mansion Tax

Santa Monica imposes a 5.6% fee on all properties that sell for $8 Million or more. Another mansion tax that will stifle sales and listing of properties.

8. AB 852

If passed, will allow judges to consider the race of the defendant in sentencing criminals. They could receive lighter sentences for being a minority.

9. Santa Ana’s Rent Control

Santa Ana’s rent control and just cause eviction ordinance started September 1, 2023. For the next year, landlords cannot increase rents by more than 2.5%. The ordinance limits rent increases to 3% or 80% of inflation, whichever is less.