Archive for the ‘Real Estate’ Category

Antioch Council adopts tenant anti-retaliation, harassment ordinance on split vote

Tuesday, July 25th, 2023

Including two amendments by Thorpe, one by Ogorchock but she vote no

By Allen D. Payton

During their meeting Tuesday, July 25, 2023, the Antioch City Council adopted an ordinance prohibiting retaliation and harassment against residential tenants on a 3-1 vote. District 2 Councilman Mike Barbanica who is a real estate broker and owns a property management company said, “upon advice of the city attorney I’m going to recuse myself from this item.” District 3 Councilwoman Lori Ogorchock was the lone vote against the ordinance.

The ordinance is in response to requests by multiple residents at previous council meetings beginning last year.

Mayor Lamar Thorpe temporarily handed the gavel to Mayor Pro Tem Tamisha Torres-Walker to run the meeting. While he limited public comments to 90 seconds on other items, he said he couldn’t do that for this item as it was a public hearing which allows for five minutes per public speaker.

According to the City staff report regarding the associated costs, “adoption of the ordinance will have direct and indirect fiscal impacts if the City engages in enforcement of the ordinance, either through the code enforcement process or through litigation. The proposed Ordinance may be enforced by an aggrieved tenant, an organization or other entity that represents the interests of aggrieved tenants, or the City.

At a minimum, an assistant city attorney or deputy city attorney position plus administrative support would be necessary for the City Attorney’s Office to provide support services to the public for this ordinance.”

According to an attorney who spoke as the proponent, the ordinance includes three things.

“It needs a reasonable standard for the violation. This ordinance includes things that are unique to Antioch including towing cars. Finally, it has a third element, remedies that can be used when the landlord violates the ordinance. They include attorney’s fees so tenants don’t have to pay out of pocket.”

“Here, there are aspects to the landlord. Any violation has to be done in bad faith,” he continued. “Bad faith conduct is the base line.”

“If it’s frivolous the landlord can collect attorney’s fees from the tenant,” the attorney added.

“You’re going to hear it’s unnecessary, it’s duplicative and doesn’t do anything,” he stated.

“There’s a talking point that tenants just need to be educated and I find that offensive,” the attorney continued. “The tenants know their rights. These tenants know the law and they know their living conditions. Thank you for putting on a great ordinance, tonight.”

The opponent was a representative of the California Apartment Association, that represents property owners in Antioch and Contra Costa County.

“It does fail to recognize some existing anti-harassment that are codified in state law,” she said. “We are redefining harassment and creating landmines.”

Speaking of one portion of the ordinance she stated, “there is a presumption of guilt. This provision blurs the burden of proof. It’s contradictory.”

One section she claimed was a backdoor to rent control as it allows for the claim any rent increase could be considered harassment.

“We ask you to reject this…and move forward with an inclusionary process,” she concluded.

Public Comments

During public comments several landlords spoke against the proposed ordinance in its current form and asked for changes before the council adopted it.

The first speaker was Joe Stokely, Sr., a rental property owner in Antioch. “I stand here before you confused and irritated. What is being proposed will produce a complete opposite affect than what the council is trying to accomplish. Why would anyone want to invest and want to continue owning rental property in the city facing a hostile environment.“You presume…all landlords are bad.”

“Please don’t make me have to go through the process at my age of selling my properties and invest elsewhere,” he concluded.

Another speaker, Ranae Callaway, branch manager of a mortgage company and representing the Delta Association of Realtors. She pointed out the “severe fines against landlords” included in the ordinance. “The ordinance does not provide a clear definition of bad faith or who will define it.”

Another speaker named James, said “My family has lived here for 100 years. For over 60 years we have provided below-market rate rentals in District 1. During those 60 years we’ve had four evictions.”

He asked for a progressive ordinance that respects both landlords and tenants. Let’s take the opportunity to collaborate…to develop an ordinance that works for everyone.”

Aeysha Corio, a Realtor, landlord and a City of Concord Planning Commissioner, spoke next saying, “I went over this ordinance. I do believe there needs to be protections for tenants. But it is incredibly unbalanced.”

“You got to find another way to deal with people who are violating people’s rights,” she continued and said, “I feel like this polarization of tenant vs. landlord needs to go. We should be working together.”

Antioch landlord and Realtor, Scott MacIntyre spoke next saying, “We already have laws in California. I myself am a very ethical housing provider. I follow the law and expect the city to follow the law, too. There are 14,000 homes in Antioch that are rentals. Don’t lump us in with a few very bad landlords.”

“It’s very ambiguous…very broad interpretation. I agree with it. Just want to see it tightened up,” he added.

Millie Phillips, a faith organizer that does tenants’ rights work in Contra Costa County, thanked the council “for an ordinance we can support.”

“They’re not saying every landlord is the same. They’ve talked about very specific landlords,” she stated. “All over the state there are laws that protect tenants that are working and are not affecting people who are not harassing. So, I don’t see the issue. Don’t do that kind of behavior and this ordinance will never apply to you. This is directed at the bad actors.”

Joe Stokley, Jr., of Stokley Properties with over 100 rentals in Antioch said if the council passes the ordinance, he would sell his properties and invest elsewhere.

Almost all of the remaining speakers were tenants in favor of the ordinance, including several members of Rising Juntos (formerly known as East County Regional Group) and Alliance of Californians for Community Empowerment (ACCE) Action.

“You should take this up with corporate landlords who are making you look bad,” said another speaker to the landlords in attendance.

Speakers also asked for the council to adopt a Just Cause Eviction ordinance in September.

Council Discussion and Decision

During council discussion of the item Ogorchock spoke first saying, “My heart goes out to some of you who have to live in these conditions. But with this ordinance I do have some questions.”

She spoke of the difference between corporate ownership of rental property versus single-family homes.

“Bad faith needs to be defined because it’s in here, a lot,” she stated.

Ogorchock also spoke of part of the ordinance applying to single family homes and people who rent out rooms.

“Under presumption of guilt there’s no due process,” she continued.

“I don’t see in here anything about senior home care facilities,” Ogorchock stated.

“There is a lot of good, in here. But these are some of the things I’m pointing out,” she said.

“I also wrote in here, Measure O. Did we list any of these people paying under Measure O, did we advise them of these meetings?” Ogorchock asked.

She said the burden of proof shouldn’t all be on the owners and the fines in the ordinance were excessive.

“The complaints are mainly about the corporate owners,” Ogorchock explained. “Maybe we should be looking at changing some of the language in here, so it applies to corporate owners.”

She asked “for an ordinance that we can all live with.”

Torres-Walker said, “this is a hard decision to deal with. We have been dealing with this for three years. Mayor Thorpe attempted to have a meeting with landlords, non-profits. For some reason we couldn’t come to agreement at that point.”

“Not all landlords are slumlords,” she continued. “I’m one mortgage payment away from losing my house.”

“I feel like landlords abandoning their business in Antioch over public policy is trying to censor renters,” Torres-Walker continued. “I would hope those that do would work with first-time homebuyers.”

She then made a motion to approve the ordinance waiving the second reading with District 4 Councilwoman Monica Wilson seconding the motion.

Before the vote Thorpe asked questions about the sections of the ordinance

“I’m going to rent my guest room to a friend for six months. Does this mean I have to rent the room to someone else?” he asked.

“It’s providing a right to a renter to sublet to another,” City Attorney Thomas L. Smith said.

“What this is saying if I rent my home to a family, they can go sublet, even if I say they can’t do that?” Thorpe asked.

“A right to one-to-one replacement of a tenant. If you are a renter in a place and you have a roommate in a place, you would have the right to replace that roommate…with another person,” Smith responded.

“My concern is if I’m renting my house and I’m renting it to a family, and I say I just want this family…they have that right to rent out a guest room without my permission?” the mayor asked.

“It’s not that simple. You have a contract,” Smith explained. “It’s your contract that governs. But I will say with this provision your concern is who has that right. It is a fair concern to have.”

“I don’t think that’s right and the first thing I’m going to say is this is going to be a friendly amendment to change that provision,” Thorpe stated.

“Some of the landlords are concerned about subletting would automatically find the landlord out of compliance,” he then said.

“The housing services part was a concern if the definition allowed for unlimited subletting. If your amendment goes through it would be a moot point,” the representative for the California Apartments Association responded.

“The issue that was trying to be prevented, here is the landlord rents out to four people and two move out and the landlord requires the remaining tenants to pay the entire rent,” said the other attorney. “Generally, it’s one lease per rental unit. In a house you’ll have several tenants on one lease. This is not making landlord rent their guest rooms. This means one leaving one coming in.”

“The one-to-one thing, I’m still going to stick with my amendment,” Thorpe said.

“Oh, refuse to accept or acknowledge tenant’s payment. There were some valid points made here, today. We’re not supposed to accept rent during the eviction process,” he stated.

“You could add some language clarifying when landlords are going through the eviction process,” Smith responded.

“That will be my second amendment,” the mayor shared.

Ogorchock then asked Thorpe to add senior home care into the exemptions, to which he agreed.

“They would qualify under…hospitals, skilled nursing facilities, so it would make sense,” he stated.

Torres-Walker asked, “why” and “they’re renters?”

“Yes,” Ogorchock responded and explained how homes have five or six tenants, plus caregivers and live-in nurses.

Smith suggested a substitute motion with the mayor’s amendments which Torres-Walker did, seconded by Wilson and it passed 3-1 with Ogorchock voting no.

Torres-Walker then thanked Barbanica for recusing himself from the process, “which was absolutely the right thing to do.”

The audience erupted in cheers as they left the Council Chambers.

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Wednesday, July 19th, 2023
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On split votes Antioch Council re-approves revised tobacco ordinance, rental registry with future tax on landlords

Wednesday, June 14th, 2023
The Antioch City Council meeting lasted until almost midnight Tuesday, June 13, 2023. Video screenshot.

By Allen D. Payton

During their Tuesday, June 13, 2023, meeting, the Antioch City Council re-approved the revised tobacco product sales ordinance on a 3-2 vote and a rental registry with a future tax on landlords to pay for it on a 4-1 vote. With 12 items on the agenda and 19 items on the Consent Calendar, the meeting lasted until almost midnight violating the direction the council majority said they wanted to go at last Tuesday’s special meeting during discussion of the agenda items.

Re-Approve Revised Tobacco Products Sales Ordinance

On an expected 3-2 vote, with Mayor Lamar Thorpe and District 4 Councilwoman Monica Wilson voting against, the council majority re-approved the revision to the tobacco products sales ordinance which contains the following:

1. The terminology and definitions of flavored tobacco were amended to better align with State terms and definitions.

2. The prohibition on package size and price was eliminated. The prior language restricted the sale of small cigars (cigarillos) to minimum packs of 20, large cigars to minimum packs of 10, and required a minimum sales price for cigarettes of $10.

During the second reading of the ordinance, Mayor Pro Tem Tamisha Torres-Walker and Thorpe were absent. Instead of postponing the item, the remaining three council members voted 2-1 with Wilson voting no, as she had done during the vote on the first reading, requiring the item be brought back for a first vote, again. Although it was approved, the item must be brought back for a vote on the second reading at the next council meeting.

Approves Rental Registry with Future Tax on Landlords

The council also approved on another split vote the creation of a Rental Registry with a future Rent Program fee, or tax on landlords to pay for it.

According to the city staff report, the Rent Stabilization Ordinance (RSO) currently requires the establishment of a registry of regulated units. This ordinance will have a marginal fiscal impact in expanding application of the registry program, which would be funded through a Rent Program fee if adopted at a future date.

Staff determined that it would be prudent to require registration of all residential rental units in the City rather than only apartment complexes. If the City Council adopts additional tenant protections, such as just cause eviction, those protections would likely apply to a wider scope of rental units. Registration of such additional units would aid in the administration of the additional protection policies. A Citywide program would also allow the registration component to be a requirement for a complete application rather than an opt-in system.

The Proposed Ordinance would authorize a consolidated Citywide registration program to clarify and establish the authority of the Finance Department to administer the Rental Unit Registry and collect tenant program fees. It would also authorize the Rent Program and Finance Department to utilize an alternative means of registering rental units on properties containing five or more units.”

One of the speakers said she wants the system to also track evictions.

District 3 Councilwoman Lori Ogorchock moved approval and Torres-Walker seconded the motion.

Barbanica asked, “what information on this registry do you plan to include and

“The business license fee registers the owner at the property,” said Assistant City Attorney Rachel Hundley. “You get to know the units but you don’t get to know the details….more specific information such as the deeds…inspection violations.”

“So, you’re looking to really pry into those property owners’ personal business?” he asked.

“No,” she responded.

The motion then passed 4-1 with Barbanica, who is a real estate broker and property manager, voting against.

County Assessor Kramer working to increase property tax exemption from $7K to $100K

Thursday, April 21st, 2022

Working on proposition for November ballot; would save $1,000 per year on average

Contra Costa County Assessor Gus Kramer.

The only law protecting seniors and other property owner dollars against inflation and real estate is Proposition 13. The most your real estate taxes can be raised is 2% a year under Prop 13.

Presently Contra Costa County Assessor Gus Kramer and several other assessors throughout the California are working to increase the homeowner’s exemption from $7,000 a year to $100,000 a year minimum. This would give every homeowner almost a $1,000 a year reduction in their property taxes.

Prior to Prop 13 passing in 1978 the homeowner’s exemption was 25% of the assessed value. That also is an alternative to the $100,000 homeowner’s exemption being proposed. Please stay tuned for a proposition that addresses this on our upcoming November 2022 ballot.

“We’re working with the Jarvis Gann group,” Kramer said. “If there was ever a time to help homeowners this is the time with inflation, increased values, and increases in interest rates.”

“The state should have indexed the exemption in 1978 but they were greedy and did not,” he added.

As this proposition develops, he will keep the public informed, Kramer shared.

Allen D. Payton contributed to this report.

Contra Costa County Assessor’s Office issues important warning to taxpayers

Thursday, February 10th, 2022

Preserve equity, build for the future using a 1031 Tax Exchange

Sunday, March 14th, 2021

By Patrick McCarran, Real Estate Broker

Leaving California or is it time to reinvest in a different property or state? Due to the recent upswing in homes values we have realized a significant growth in equity.  Many owners think that they may be stuck in their current investment property. Whether you bought it as an investment, or it was an owner occupied that went past your three-year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state. Possibly you would like to combine many properties into few or few into many. The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a THIRD party for the exchange. This does NOT mean a title or escrow company. By definition you cannot have any direct control over the funds, which is not just in your pocket but anywhere within your reach.

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal.  Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So, land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set timeframe for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE  you close and ideally before you place the property for sale.

There Are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property.  An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by phone or text at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com. An independently owned and operated office.  In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

Preserve equity, build for the future using a 1031 Tax Exchange

Tuesday, March 9th, 2021

By Patrick McCarran, Real Estate Broker

Leaving California or is it time to reinvest in a different property or state? Due to the recent upswing in homes values we have realized a significant growth in equity.  Many owners think that they may be stuck in their current investment property. Whether you bought it as an investment, or it was an owner occupied that went past your three-year deferment period you have options. Maybe you would prefer an investment in a different city, region or even another state. Possibly you would like to combine many properties into few or few into many. The answer is a 1031 Tax Exchanges otherwise known as a Starker Exchange. This process allows real estate owners to defer taxes on capital gains resulting from the sale of investment real estate, often a sizable sum since combined Federal and State taxes can run as high as 38 percent.

In general terms to roll their profit into another property and defer the tax and preserve equity and cash flow.

To accomplish this, sellers need to engage a Qualified 1031 Intermediary to document the sale as an exchange and to receive the funds from the sale. I cannot stress the importance of a THIRD party for the exchange. This does NOT mean a title or escrow company. By definition you cannot have any direct control over the funds, which is not just in your pocket but anywhere within your reach.

Central to a 1031 Exchange is the interpretation of like-kind property. While the common assumption is that like-kind implies land for land or a condominium for a condominium swap, the definition of like kind has become far less literal.  Today it defines like kind as meaning that both the replacement and the original property must be used as an investment. So, land, condominiums, single-family homes and motels can all be exchanged for one another as long as they are used in the exchanger’s business or held as an investment.

1031 Exchanges do have specific IRS requirements and a set timeframe for performing. This is why it is very important that you contact an experience agent such as myself and engage the Intermediary BEFORE  you close and ideally before you place the property for sale.

There Are other options for example you can opt for a Reverse Exchange where you buy the replacement property first then sell the current property.  An Improvement Exchange, allows you to build investment properties from the ground up or improve existing properties.

If you want more information on 1031 Exchange or have any questions feel free to contact myself or a real estate professional you know. Make sure that he or she is familiar not only with the process but also with the specific documentation and time frame mandated by the IRS.

This article is intended to inform readers, but does not constitute any financial or legal advice.

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted by phone or text at (925) 899-5536, pmccarran@yahoo.com or www.CallPatrick.com. An independently owned and operated office.  In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.

Losing out on multiple offers? How about a new home?

Monday, November 16th, 2020

By Patrick McCarran, Real Estate Broker

Multiple offers and bidding wars getting you down?  Then you may want to consider a new construction home. Many builders have available models when you walk in and you can make an offer. You can get an answer quickly without multiple bidders and escalation offer prices. Did you know that you can be represented by your own agent when you purchase a new home?

You may not think it is necessary to involve a real estate professional in a transaction where the buyer can deal directly with the builder. Think again! The builder’s agent is representing the builder’s best interest. As your buyer’s agent a Realtor can guide you along the right path, smooth the rough places and help ensure you make a decision you can live with (and in) for many years.

As your agent, the Realtor is representing your best interests. Just as a real estate professional calls on experience and knowledge of an area to help buyers locate re-sale homes in a community, the same applies to guiding buyers interested in new construction developments and communities that match your wants and needs.

Your agent can suggest builders based on their reputation for delivering a high-quality product, responding quickly to issues, and being financially sound. Your agent may be familiar with how a builder prices his products and where there may be room to negotiate price, additional items the builder may be willing to sweeten the deal with and help with which upgrades to purchase for resale.

Your agent can assist you as you face hundreds of design choices and consider which upgrades provide the best value in terms of resale and whether to upgrade from an outside vendor. The upgrades or options available will vary from builder to builder and the choices you make will depend on largely personal decisions. Often a buyer can pay far less after the home is built by contracting with a third party, but price is not always the only consideration. You need to consider the convenience, cosmetic ramifications and if it is even feasible to perform after the home is built.

The lender approval process may go smoother if your agent schedules visits, accompanies you to lenders, and helps expedite required documents.

When relocating to a new area, your agent can be a particularly valuable resource. In addition to providing local area information regarding schools, day care, elder care services, medical offices and doctors, public transportation, proposed development, and so on. Once construction is under way, your agent can periodically stop by the work site, supply you with progress reports, and photograph various phases of the    construction.

REMEMBER the builder will require your agent to accompany you on your first visit to the site. So, let your Realtor shop with you. It is not an inconvenience for them, it is their job.

By now, you should be convinced of a real estate professional’s value as you search and purchase a new construction home. Still, here’s one more great reason to work with an agent – the builder pays the agent’s commission. You enjoy individual attention and support at NO cost to you. What a great way to start life in a new home!

Patrick McCarran is a local Realtor and Broker DRE# 01325072. He can be contacted at pmccarran@yahoo.com, by phone or text at (925) 899-5536 or at www.CallPatrick.com. An independently owned and operated office. In association with Realty One Group Elite DRE# 0193160. Equal Housing Opportunity.