Rent control for new construction projects? This could come up again and it is worth while investigating how to protect your investments.
Do you own a building that has a recorded subdivision map on it and are holding the building as rental property? If so, do you have a current final public report from the California Department of Real Estate for the property? If you don’t, you might want to get one.
An initiative is being circulated for signature that would repeal the Costa-Hawkins Rental Housing Act, the law that prevents a city or county from passing strict rent controls — such as imposing rent control on buildings constructed after February 1, 1995, or controlling rents on vacant units. At this time no one knows if the initiative will qualify for the ballot or pass, but if it does, a city or county would have the power to pass laws that would substantially affect the value of your building by making it very difficult or impossible to get possession of a unit to sell it.
Would these laws apply to your building even though you have recorded a subdivision map on the property? According to cases decided in the early 1980’s, the answer is yes, unless you have a current final public report from the California Department of Real Estate at the time the law is passed.
Having a current public report on your building is a way to have some insurance against changes in the law that could affect your ability to achieve the highest price by selling your investment as separate units. If you are thinking about getting and keeping a public report, keep in mind that timing is tricky since it takes from nine months to a year to get a public report and laws can be passed much more quickly than that.
If you would like information on how to get or renew a public report, please contact Barbara Herzig or Candice Macario Cameron at Herzig &Berlese.
Herzig & Berlese is law firm with many years of experience specializing in subdivision law. We assist developers and builders in obtaining subdivision maps, preparing condominium documents, and obtaining public reports. Barbara can be reached at email@example.com. Candice can be reached at firstname.lastname@example.org
Also, please keep in mind that Connie Buchanan is an excellent source for financing:
“When thinking of Real Estate financing, think of me as a team member with creativity!”
- Connie Buchanan
Having over 30 years of experience in lending
Construction ‘Ground Up/Rehab Loans
Commercial, SBA loans
Feel free to call and we can discuss your financial needs:
Connie Buchanan, NMLS #241170 & DRE #01200004
APMC dba California Real Estate Loans, Inc. 600 N San Mateo Dr, San Mateo, CA 94401
Cell: 415-999-2172 – www.CRELINC.com
And of course, our real estate sales team is here to assist in all your San Francisco sales and leasing needs.
Good luck out there! Wishing you immense success in 2018.