Ballot Measures
Since our last update ballot initiatives have been assigned numbers. The following is a quick recap on C.A.R.’s positions on upcoming ballot initiatives:
Proposition 3 – Repeal of Proposition 8 (2008) – SUPPORT
Proposition 5- Lowers the vote threshold for local bond measures to fund housing projects and public infrastructure -NEUTRAL
Proposition 33 – Repeal of Costa-Hawkins – OPPOSE
Proposition 34 – Requires specified healthcare organizations to a higher percentage of their revenues on direct patient care – SUPPORT
Stay tuned for more info in future updates.
Rent Cap Plan is Harmful
A new White House plan unveiled Tuesday calls for capping rents at 5% per year on landlords who own more than 50 units. NAR opposes rent control measures and has joined a coalition of stakeholders in expressing opposition to the proposal. As an alternative, NAR and its partners are calling for policies that focus on increasing the rental housing supply.
The Appraisal Foundation Settles Fair Housing Act Case with HUD
The U.S. Department of Housing and Urban Development (HUD) has reached a groundbreaking settlement with The Appraisal Foundation (TAF) to address discriminatory barriers in the appraisal profession. This agreement has significant implications for the real estate industry.
The settlement aims to address the significant lack of diversity in the appraisal profession. According to 2023 Bureau of Labor Statistics data, the property appraisers and assessors’ occupation was 94.7% White and only 0.6% Black, making it the least racially diverse of 800 occupations surveyed.
Key Points of the Settlement:
1. Scholarship Fund: TAF will establish a $1.22 million scholarship fund to cover costs for aspiring appraisers to attend Practical Applications of Real Estate Appraisal (PAREA) programs.
2. Alternative Pathway: The PAREA program provides an alternative route to fulfill the experience requirement for becoming a state-licensed appraiser.
3. Diversity Initiatives: The agreement includes terms for marketing the PAREA program and scholarship fund to diverse communities.
4. Collaboration with Regulators: TAF will work with state and territory appraiser regulatory agencies to promote PAREA’s adoption.
The initiative aims to reduce patterns of mis-valuation in communities of color, which could lead to more equitable property assessments. Additionally, with new pathways into the profession, California may see an increase in the number of qualified appraisers, potentially reducing wait times for appraisals.
FHFA Introduces New Tenant Protections for Multifamily Properties
The Federal Housing Finance Agency (FHFA) has unveiled new tenant protections for renters in multifamily properties with Fannie Mae or Freddie Mac backed mortgages. Effective February 28, 2025, these protections mandate a 30-day notice for both rent increases and lease expirations, as well as a minimum 5-day grace period for late rent payments.
These measures are designed to provide renters with greater predictability and security, reflecting FHFA’s commitment to resident-centered practices. While California’s AB 1482 law requires a 30-day notice for rent hikes below 10% and 90-day notice for rent hikes above 10%, the new FHFA regulations extend protections by formalizing grace periods for late payments, which are not currently specified by California state law. The new rules are only applicable to multifamily properties (5 or more units) with loans backed by Fannie Mae or Freddie Mac.