Articles

Save Our Property Rights!

October 2019


The term “PC”, meaning Politically Correct, is no longer PC.  In California, it means Parent-Child dynamics versus Adult-Adult — the goal for grownups (Eric Berne, Psychologist).  We run on parental guilt and shame vs. adult choices.   (Recommended Reading: “For Your Own Good”, Alice Miller.)

Rather than educating and supporting people to make commonsense decisions using positive critical thinking, we endlessly treat them as children needing excessive protection.  Our politicians’ socialistic values enforce “sharing our toys” (i.e., our acquired investments and life savings with people we don’t even know while putting ourselves at risk for potentially large financial losses).  People love helping others, but not when forced through punitive fines and risks of loss and lawsuits.

Presently, public notice and meetings for input really mean: We know what’s best for you, and, no matter your input and stated needs, we will proceed with our hidden agenda regardless.  San Francisco’s long-time residents and businesses leave because the City they love no longer hears and provides for their needs.  Almost daily, more is removed from our world that we enjoy.  What’s missing is respect and equal rights for ALL residents, plus balanced political service.

The recent lawsuit and restraining order filed by Safe Embarcadero For All against the City regards halting construction of a temporary navigation center (homeless housing) at Bryant/Embarcadero.  10,000 residents (near that 200-bed facility for drug/alcohol users) want their safety made a priority.  Had Mayor Breed shown up at the initial public meeting willing to listen and negotiate, things might have gone better.  But she didn’t and that meeting erupted into screaming instead.  Unfortunately, this describes the typical political style our residents have been up against for years.  No listening.  Pre-determined outcomes.

Our politicians’ goals to increase housing and services for “future people”, “beginning 2025”, requires a crystal ball.  I’ve termed this “future speak”.  It’s the basis for these swiftly-approved, self-serving laws eroding property rights, with minimal notice or public input.  Many States are wooing tech-based business for tax revenues.  No one knows the outcome.

How can we keep our loyal “present-day” owner residents and small businesses here?  The ones who have paid extreme taxes (covering politicians’ excessive salaries), maintained properties, provided much-needed services and cared for tenants (oftentimes to their own detriment)?  And keep our long-time tenants, as well, without damaging landlords?  This would require politicians listening and then supporting our present-day needs and goals versus those who bankroll them.

Since our politicians’ marketing hype always ends with the word “crisis”, let’s address two theoretical crises: The housing shortage and affordability. Both need to be challenged, as they change, depending on an upmarket versus a downmarket.  For 3 years now, we’ve been bumping along the ceiling of an upmarket with numerous downwards adjustments.  This means that both so-called housing crises, if they even exist, could be nearing their end.

Regarding housing and affordability, this usually comes down to who you know.  So, put down your devices and physically talk to real humans.  Long-time agents and residents have the connections needed to access both affordable housing and off-line supplies.  What’s on the Internet is oftentimes flawed.  Association of Realtors’ Summer study found 20 of every 150 rental listings scams.

Instead of the endless “crisis” spin, consider this:

  1. From 2008-2011, overbuilding of condos left many high rises vacant and not completed for years after.  What’s going on today is overbuilding of condos on steroids.  Don’t ignore past history.
  2. Our market is slowing down, price reductions are up, including new/pending construction and rentals.
  3. California politicians pass anti-property laws, as fast-moving targets, without proper and direct notice to each owner, realistic timelines for response, or offering market-rate recompense for loss of value and damages.  This is called a “taking”.  Most owners aren’t even aware laws were passed!  Politicians actively ignore public input, predictably creating lengthy future lawsuits that waste extreme tax dollars and valuable time (just like our unvetted ballot measures).
  4. Rent control both helps and entraps tenants, and creates housing shortages.  Remove it and replace with human kindness.
  5. A majority of off-market, privately-held, potential rentals need upgrades that owners can’t afford, but the City could subsidize.
  6. There are lovely areas just outside our borders with nice housing, similar services, more space, lower density, abundant parking and lower costs, near public transportation taking you to highly paid San Francisco jobs.  Be both grateful and patient.  Prices lower seasonally. Maybe San Francisco living is your next year’s goal.

Recently-passed or upcoming:

  • The ambitious Central SoMa Plan took effect January 2019. Plenty of upzoning and fast-tracking permits, along with lawsuits going forward.  It is the largest rezoning of the commercial heart of the City since the Downtown Plan, adopted in the 1980’s.  It attempts to address possible lack of office space for tech companies, thus losing tax revenues.  But, does it address our City’s changing needs as markets recycle?
  • On 9/3/19, San Francisco’s Community Opportunity to Purchase Act (“COPA”) went into effect. Imposed on 3- or more unit buildings (existing, mixed-use or to be built), it gives a Right of First Offer and First Refusal to Qualified Nonprofits (“QNPs”).  They get first chance to buy your property before going on the open market, and can override an offer from a third party.  Sellers may reject or counter/reject any/all offers.  Mayor’s Office of Housing oversees this.  Owners selling property, especially with deadlines to perform, could be greatly affected.  If property is sold in violation of COPA, QNPs can bring legal action.  Note: Privacy issues may be in question here.
  • Governor Newsom to sign AB1482 shortly.  (Stoppable?)  It passed the Assembly 9/11/19.  He has up to 30 days to sign.  Introduced by Assembly Member Chiu, it places California under rent control.  (Oregon recently passed something similar; however, Arizona’s State law prevents this.)  Voters overwhelmingly opposed statewide rent control by defeating Prop 10 last Fall.  Passing AB1482 clearly says our politicians don’t listen and negatively impacts small property owners while discouraging further new construction.
  • Senator Scott Weiner and Governor Newsom have moved the (renamed) controversial SB50 to year 2020.  It rolls back permit requirements and fast-tracks higher density housing around transit hubs.  (Labelling something an emergency (“crisis”) creates fast-tracking, simplified permit approvals, and should be used for true emergencies, like fixing damaged roadways after the 1989 ‘quake.)  SB50, also, may try to upzone single-family homes statewide to 3+ units, devaluing properties.  This is partly why people leave California.  In an upmarket, upzoning is not as damaging as downturns where people can rapidly lose home equity (oftentimes their life’s savings).

Here’s an idea: Stop all the taking and provide something of high value.  Water!  Our abundant State funds could quickly build well-made water collection reservoirs statewide, lower water/sewer bills, solve our drought “crisis”, and no one dies.

Stay educated.  Help fight these “takings”!  Voting alone is not sufficient.  The outcomes are unpredictable, especially with the sway factor from media and technology, and our passed ballot measures habitually resurrecting themselves.  It’s time to say: “Enough!”.

Danita Kulp is a broker with Kulp & Company (DRE #00922181) who has been selling real estate since 1981 (www.successfulhomes.com).  She works with both Buyers and Sellers, both in and outside the City, and can be reached at (415) 637-5823 or kulpofca@aol.com.