North San Diego County REALTORS® May Advocacy Bulletin
North San Diego County REALTORS® Advocacy Bulletin is a monthly update that aims to help our members stay up to date on government and legislative issues that impact your bottom line. This month’s Advocacy Bulletin looks at local, state and federal issues that affect REALTORS®:
- San Diego housing referendum ruling
- New California guidance on open houses
- Federal eviction moratorium ruling
- NAR’s response to Biden’s tax proposals & new 1031 Like-Kind Exchange
Item 1: San Diego Housing Referendum Ruling
Oceanside development North River Farms received a landmark decision on May 7th in the San Diego County Superior Court. The judge ruled that the November 2020 referendum against the development was invalid, allowing the 500+ home project to move forward, citing that the referendum went against government code 66300. This code was enacted in 2019 to combat California’s housing crisis.
With housing affordability and supply at concerning levels, there is a critical need for more housing in San Diego and across California. With developments across the county falling victim to referendums, such as Newland Sierra in 2020, this ruling is a big step forward in creating more housing.
Item 2: New California Guidance on Open Houses
The California Department of Public Health (CDPH) recently updated its guidance on open houses, with further updates pending.
Per the Covid19.ca.gov website:
Shown properties, like open houses – effective immediately:
In-person showings of properties, like open houses, are permitted and must follow the indoor gatherings capacity limits in the CDPH gatherings guidance. Check the Attendance section of the gatherings guidance for the capacity limits for each tier. People who feel sick or have COVID-19 symptoms are not permitted to attend. Physical distancing between different households must be maintained, and hand sanitizer should be made available. Face coverings are required. See the CDPH guidance for the use of face coverings for complete details and exceptions. All other restrictions in the real estate guidance remain in place.
Please remember to adhere to local guidelines, which may be stricter in certain areas.
Item 3: Federal Eviction Moratorium Ruling
On May 5th, a Federal Court ruled to overturn the CDC’s Federal Eviction Moratorium. The court found that the agency overstepped its authority in enacting the moratorium. Almost immediately after the ruling, the Department of Justice filed an appeal. On Friday, May 14th the presiding judge agreed to put the ruling on hold while the case is reviewed by a higher court.
Currently, the Federal Eviction Moratorium is still in effect. Please note that state and local governments may have specific eviction moratoriums. These will not be affected by the court's rulings and are subject to the discretion of those specific governments.
For more information please see NAR’s Issue Brief on the CDC’s Eviction Moratorium Rulings
Item 4: NAR’s Response to Biden’s Tax Proposals & New 1031 Like-Kind Exchange
President Biden recently announced the second half of his infrastructure agenda, which focuses on social programs or “human infrastructure.” Tax increases that may pay for these programs could have significant impacts on the real estate industry. This may include limiting the deferral of gain from 1031 like-kind exchanges to $500,000, doubling the capital gains tax rate for households over $1 million, and taxing unrealized capital gains at death.
While NAR has concerns about the Biden Administration’s proposals, we are in the very early stages of this process. Below, you will find NAR’s letter to Treasury Secretary Janet Yellen outlining REALTORS® concerns. We have also attached a link to a REALTOR® Magazine article with NAR President Charlie Oppler’s response to the American Families Plan. Oppler expresses NAR's intention to continue working closely with the Administration so that they fully understand the impact these various proposals would have on real estate and the economy.