9 Oct 2018

Fiscal Impact Report on Measure M

The Santa Cruz City Council commissioned an independent and impartial analysis of the Santa Cruz Rent Control and Tenant Protection Act (The Act) or Measure M. This analysis is limited in scope and only focuses on the financial and administrative impact that the "Rent Board" will have on the City of Santa Cruz should Measure M pass.   If Measure M is voted into law, a City Rent Board comprised of City residents will be created.

3 Oct 2018

Ballot Measure M – The Santa Cruz Rent Control and Tenant Protection Act

The “Santa Cruz Rent Control and Tenant Protection Act”, or Measure M, which proposes to establish long-standing rent control and just cause for eviction regulations will be on the November ballot. You can find the full text of the measure here. If you own or plan to own a rental property in the City of Santa Cruz, please take time to read this ballot initiative carefully. If passed into law, this ordinance may have a significant

2 Oct 2018

Housing Related Ballot Measures – California November 2018 Elections

A shortage of affordable housing is not just a local issue here in Santa Cruz County; people around the state are under immense pressure to find affordable housing. As a result, Californians will be voting on more ballot propositions related to housing than ever before according to Ballotpedia’s catalog of housing-related ballot measures. There will be four housing related propositions on the statewide ballot alone.   Proposition 1   On a statewide level, Proposition 1 authorize $4

2 Oct 2018

Santa Cruz County’s Ballot Measure H (2018)

A new report was recently released by the California Housing Partnership, a private nonprofit organization, shedding light on Santa Cruz County’s housing shortage. According to the report summary, Santa Cruz County needs 12,000 additional units to meet present-day demand. If added to our housing supply, these units would ensure that the lowest-income households would not spend more than 30% of their annual income on housing -- a federally recognized definition for affordability.   In November,

6 Sep 2018

Trump Tariffs and New Home Prices

Trump’s tax tariffs on lumber, steel and aluminum may increase the cost of new housing.   In November of 2017, the US set final total tariffs for most Canadian softwood lumber producers at 20.8%. According to Aaron Terrazas, senior economist at Zillow, this caused the price of lumber to jump nearly 15% and added $6,000 to $10,000 to the cost of a newly built median-priced single family home. By contrast, the the National Association of

7 Aug 2018

Santa Cruz Rent Control and Just Cause For Eviction – The Counter Movement

Now that the Rent Control and Just Cause for Eviction measure is officially on the ballot, the counter movement has begun to gather steam.   Santa Cruz Together, a grass-roots movement to stop the measure from passing, has collected $60,000 from supporters and hopes to raise up to $200,000 to fund their campaign. The California Apartment Association, nation's largest statewide trade group, has also promised to fight the ballot measure and has raised $403,000 thus

30 Jul 2018

The Commercial Cannabis Business and Santa Cruz Real Estate

With the passage of Prop 64 and Senate Bill 94*, the Medicinal And Adult-use Cannabis Regulation And Safety Act (MAUCRSA) made the sale and taxation of commercial cannabis legal in the state of California. MAUCRSA also created the general framework for the regulation of both commercial medicinal and adult-use cannabis in California.   To legally cultivate, manufacture, and/or distribute cannabis, both a state and local license will be required. Additionally, both unincorporated and incorporated areas

13 Jun 2018

Prop 13 Extension on November Ballot

Before Prop 13, there were no limits on increases for the property-tax rate. Some properties were reassessed 50% to 100% in just one year and their owners’ property tax bills increased accordingly.   Under Proposition 13 tax reform, property tax value was rolled back and frozen at the 1976 assessed value level. Property tax increases on any given property were limited to no more than 2% per year as long as the property was not

15 May 2018

Repealing Costa Hawkins Act?

The Costa Hawkins Act (Costa-Hawkins) allows cities to implement local rent control laws, but within specific parameters: housing constructed after 1995, single-family homes, condominiums, and townhouses are exempt from local rent control regulations. Additionally, Costa-Hawkins allows rental property owners to establish their own rates at the time of a change in tenancy.   A proposed ballot initiative entitled the “Affordable Housing Act for the California November 2018 Ballot” was submitted to the California Attorney General’s

15 May 2018

UPDATE: Enough Signature for the Ballot – Rent Control and Just Cause For Eviction Initiatives

If you’ve been reading our newsletter, you’ve undoubtedly heard about the  rent control and just cause for eviction ballot initiative (Renter Protection Ballot Initiative) which has been circulating through the city. The Movement for Housing Justice has submitted 10,791 signatures to the City of Santa Cruz, well above the required number of signatures needed qualify the initiative for the November polls. The group is now awaiting the results of a 30 day signature validation process.

23 Mar 2018

Sewer Lateral Ordinances in Santa Cruz County – Point of Sale Inspection Requirement

  The private sewer service lateral (also known as a private lateral) is a pipe that takes an individual building’s wastewater to the public sewer main in the street. These private laterals are owned by the building owner and are essential for directing wastewater away from nearby structures such as other homes.   Did you know that unincorporated-Santa Cruz County, Capitola City, and soon to be Santa Cruz City all have point-of-sale requirement under certain

27 Feb 2018

Tax Cuts and Jobs Act: Benefits for Real Estate Investors and Land Lords

A reduction in incentives for homeownership results in strong demand in the rental market. This fact, and a new deduction on taxable income of pass-through companies suggests that landlords and other real estate investors stand to benefit from the new law.

20 Feb 2018

Rent Freeze in Effect in Santa Cruz City, Rent Control On the Ballot

On Tuesday, February 13th, the Santa Cruz City Council passed temporary rent freeze and a just cause for eviction ordinances for certain rental properties within the city limits (see exceptions below). This sudden action was in response to community-member complaints that, given the impending threat of a rent-control moratorium (City of Santa Cruz Rent Control and Tenant Protection Act) on the November ballot, landlords have an incentive to raise rents and evict tenants to guard

13 Feb 2018

Rent Control In Santa Cruz – The Counterpoint

  Assemblyman Richard Bloom (D-Santa Monica) proposed legislation on January 11th to repeal Costa-Hawkins, which would have allowed local governments to implement new rent control policies. The bill failed.   But this is not the end of the rent-control battle. The California Local Rent Control Initiative, which would expand local government's authority to adopt rent control and repeal the Costa-Hawkin's Rental Housing Act may be on this year's November ballot. Locally, the Sentinel reports that

10 Feb 2018

New Proposed Ordinances are Bad for Business

The following was announced by the Santa Cruz County Association of Realtors: On February 13, 2018 the City Council of Santa Cruz will be holding two public hearings that you should be aware of. At 2 pm there is a public hearing discussing the potential passing of a relocation assistance ordinance. If passed, this ordnance would make landlords liable to tenants for relocation assistance upon eviction or rent increase. Landlords would also be subject to

24 Jan 2018

Changes to Look out For in the 2018 Real Estate Market

We recently wrote about predictions for the 2018 housing market. This article is an extension of our previous post, and covers two important legislative battles that are gaining momentum.   Rent Control: Rent control legislation proposals are popping up on a state and local level. According to this article, Assemblyman Richard Bloom (D-Santa Monica) will be proposing legislation on January 11th to repeal Costa-Hawkins, which would allow local governments to implement new rent control policies. Additionally,

19 Jan 2018

The Final Tax Cuts and Jobs Act and Real Estate

The Tax Cuts and Jobs Act has been signed into law. There were some big "wins" in the final bill from the perspective of homebuyers, owners, and real estate investors. However, the bill removes important incentives for homeownership and may have an adverse impact in some markets. According to the National Association of Realtors, home prices will grow at a slower pace of 1-3% nationally. Unfortunately, some local markets in high cost, higher tax areas

7 Dec 2017

How the Proposed Tax Reform Can Affect Your Real Estate

  On Thursday, November 9th, Republicans in the Senate Finance Committee released an outline of their version of the "Tax Cuts and Jobs Act". Just one week earlier, the Republicans' congressional House Ways and Means Committee released the original version. Both pose a threat to homeownership as we know it today. Here is a short summary of how both may affect your real estate.   Mortgage Interest Deduction The house bill will keep the mortgage

30 Nov 2017

Cannabis Cultivation and Santa Cruz Real Estate

  CLICK HERE FOR AN UPDATED VERSION OF THIS ARTICLE The passage of Prop 64 allows for the sale and taxation of commercial cannabis in the state of California. This development may have both negative and positive consequences for local Real Estate Markets. Commercial real estate owners in areas where cannabis cultivation and the sale of marijuana are legal may see a significant increase in real estate values and lease-rates. For example, in Denver, cannabis

15 Nov 2017

How “Tax Cuts and Jobs Act” Will Affect Your Real Estate

  On Thursday, November 9th, Republicans in the Senate Finance Committee released an outline of their version of the “Tax Cuts and Jobs Act”. Just one week earlier, the Republicans’ congressional House Ways and Means Committee released the original version. Both pose a threat to homeownership as we know it today. Here is a short summary of how both may affect your real estate.   Mortgage Interest Deduction The house bill will keep the mortgage

27 Sep 2017

Santa Cruz City Eliminates Lot Size Requirements for Granny Units (in Pre-existing Sturctures)

Previously, you needed a 4,500 square foot lot, or larger, to build an Additional Dwelling Unit (ADU), also commonly known as a granny unit. Now, any legally built unit within the existing footprint of your home can be turned into an ADU under new state law. This applies to new projects and conversions, so long as the unit is within the pre-existing structure and is build legally (meaning it was permitted and build to code).

28 Jun 2017

Changing Vacation Rental Laws in Santa Cruz City

This just in: this Thursday, June 29th, at 7:00 p.m. the Santa Cruz City Planning Commission will consider new rules to govern short-term vacation rentals (included Airbnb and VRBO properties). The Planning Commission is taking a long, hard look at the affordable housing crisis in Santa Cruz City. Their decisions will have a direct impact on propertyowner’s ability to take part in the vacation rental program in the City.   The City Planning Commission elected

28 Feb 2017

Changing ADU Laws in Santa Cruz

In response to our state's housing shortage, Governor Brown has signed Senate Bill (SB) 1069, which will make it easier, and for some, less expensive to develop Additional Dwelling Unit's (ADU's). SB 1069 will require local governing bodies to loosen ADU regulation. Both Santa Cruz County and City have amended their ADU related ordinances. We report on major ordinance changes that the city has publicized. We also summarize County ordinance changes, which are still contingent on Coastal Commission

14 Dec 2016

2017 Santa Cruz Real Estate Market Predictions

It’s amazing that we are at the end of another year. Here at Schneider Estates we have much to be grateful for. Most of all, we are so grateful for you. You allow us to do what we love everyday. From helping younger couples find their first homes to ensuring seasoned investors find good deals and everything inbetween, we are honored to get to work with you and help you to make wise, informed real estate

3 Nov 2016

The Corridors – Santa Cruz Zoning Changes

  The City of Santa Cruz is in process of researching and asking for public feedback on the idea of changing the zoning code along four corridors within the city of Santa Cruz. As shown in the  map below, these corridors include Mission Street (Highway 1), Soquel Avenue, Water Street, and Ocean Street, each identified as a road that carries the heaviest cross-town traffic and provides access to a variety of amenities. Changes in the zoning

5 Jul 2016

BREXIT: Why Stay, Why Leave, and How does it impact the US Real Estate Market?

Arguments For and Against the BREXIT:   Reasons for leaving: The EU threatens Britain's Sovereignty – supports of this viewpoint reference the trend of an increase in EU authority over the past few decades. For example, in matters of competition policy, agriculture, and copyright and patent law, EU rules overrule national laws. The EU is able to impose regulations on its members, some of which BREXIT supporters claim are overly burdensome and cost the British