Monday, April 27, 2020

President's Message - April 23, 2020

Good Morning WSGVR Family and Guest, 


My name is Mindy Yeh, your 2020 President. Hope you and your family are all doing well. Please don’t hesitate to reach out to us if we can be of assistance in this challenging time. Thank you for attending our virtual MLS Breakfast Meeting and for your continued support as a member of the West San Gabriel Valley REALTORS®. I would also like to thank our guest speaker today Jeffrey Prang, Los Angeles County Tax Assessor. 

WSGVR Candidate Packet has been emailed to our members last week. Nominations are now being accepted for Director positions. The Nominating Committee is seeking real estate professionals that are dedicated and willing to make a difference in their community and want to give back to the West San Gabriel Valley REALTORS®. There are up to six (6) Director positions available. please return your completed candidate form by emailing to angelica@wsgvar.com and albert@wsgvar.com, no later than Thursday, May 21, 2020 by 5PM. Due to COVID19, Election will be held on July 30, 2020 instead July 2, 2020. 

RED ALERT! was emailed out to all of you yesterday, April 22, 2020. I urge you to PLEASE take ACTION ASAP to oppose AB 828 – Urge Your State Senator to VOTE NO on Rent Reduction Bill! 

Following quotes were from C.A.R.: 

“C.A.R. Opposes AB 828 Because: It is unconstitutional. It is unnecessary. It does not require any real demonstration of hardship. It places undue financial hardship on property owners without providing any assistance. It discourages investment in the building of new housing. It creates additional costs for state and local governments when tax revenues will already be dramatically reduced. 

A bill that, among other things, effectively forces a 25 percent reduction in rents and provides no financial protection for mom-and-pop property owners who still must pay their mortgages and have a legal obligation to repair and maintain their properties. 

On top of these existing COVID-19 state and local tenant protections, AB 828 creates a court-ordered reduction of rent by 25% for 12 months for tenants who claim they cannot pay due to the COVID-19 crisis. There is no way for property owners to recoup this court-ordered lost rental amount, even though they are still legally obligated to continue paying their mortgage, taxes, and insurance and maintain and repair the property.

Background

In response to the COVID-19 crisis, the Judicial Council of California has halted all eviction lawsuits – otherwise known as “unlawful detainer” lawsuits – statewide. Additionally, Governor Newsom’s March 27th Executive Order, among other things, allows tenants to delay payment of rent due to the COVID-19 crisis. Lastly, many local governments have enacted ordinances that freeze rents and halt the issuance of eviction notices of any kind during the pandemic.

On top of these existing COVID-19 state and local tenant protections, AB 828 creates a court-ordered reduction of rent by 25% for 12 months for tenants who claim they cannot pay due to the COVID-19 crisis. There is no way for property owners to recoup this court-ordered lost rental amount, even though they are still legally obligated to continue paying their mortgage, taxes, and insurance and maintain and repair the property.

C.A.R. Opposes AB 828 Because:

It is unconstitutional. 
AB 828 FORCES courts to interfere with existing contracts in violation of both the California and U.S. Constitution. Not even a pandemic should undermine the California and U.S. Constitution.

It is unnecessary. The state and/or local governments have already acted to limit evictions and rent increases and impose temporary payment moratoria during this emergency, protecting tenants from uncertainty.

It does not require any real demonstration of hardship. AB 828 only calls for a tenant to show “increased costs for household necessities OR reduced household earnings” without establishing a reasonable threshold for the financial impact.  Furthermore, if the increased costs or reduced earnings happened during March 4, 2020 and March 4, 2021, the court must assume that was caused by the Covid-19 crisis; meaning, the tenant has no obligation to show the linkage in the change of circumstances to the Covid-19 crisis.

It places undue financial hardship on property owners without providing any assistance. Property owners are given no recourse to recoup this lost rental income, even though they are still legally obligated to continue paying their mortgage, taxes, and insurance and repair and maintain their properties. Legislators should keep in mind that many rental housing owners are retirees who count on rental income to cover the expenses associated with providing rental housing as well as their own personal income, which may already be limited due to existing emergency measures.

It discourages investment in the building of new housing. Adding more uncertainty to the rental housing market discourages builders from investing in the creation of desperately needed rental housing. That unmet need will NOT go away with this pandemic.

It creates additional costs for state and local governments when tax revenues will already be dramatically reduced. Courts, local housing authorities, and other agencies will either incur new costs or see reduced revenue if AB 828 is enacted."

Thank you for your attendance and please join us next Thursday, April 30, at 9am. Our guest speaker will be Congresswoman Judy Chu for COVID-19 Updates.

Mindy Yeh
2020 WSGVR President

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