Local Level – It’s all about building a healthy local economy – Invest in Nevada County
Prop 90 Brief for REALTORS®
July 28, 2017
By now, you’ve heard about Prop 90 – the extension of Prop 13 that allows seniors to downsize without taking a significant property tax hit. That’s important, because when seniors downsize, family-size homes become available for younger buyers who, in turn, free up housing for first-time buyers. It’s a critical cycle in the California housing market, especially today.
Following the financial crisis in 2008, new home construction all but stopped, leaving California short 1.5 million housing units, a number that grows by more than 180,000 a year. Then, the result is not enough homes, and the homes that remain aren’t affordable for half the population – who are forced into a permanent cycle of renting.
How do we fix the Housing Crisis of 2017? It’s simple. First, we need counties to adopt a Prop 90 ordinance that allows seniors to make that move. Second, we reduce the barriers to building new homes of all sizes – that means reducing local fees, streamlining California’s onerous CEQA process, and educating communities about the importance of creating new housing. Finally, we stress ‘shopping local’, which creates and sustains local jobs and generates the sales tax revenue for local services.
REALTORS® are the front line in the fight to protect the American Dream. Get involved today – join the coalition on InvestNevadaCounty.com, like the ‘Invest in Nevada County’ Facebook page, and share with us your stories of potential clients who bypassed Nevada County because we don’t allow the Prop 90 transfer.
Plus, mark your calendar for September 12, when we’ll present the issue to the Board of Supervisors, and ask them to take the first step in fixing this housing crisis – Prop. 90.
REALTORS and the community are addressing local adoption of the State approved Proposition 90
May 12, 2017
- 90 assists seniors with an opportunity to transfer their principle residence base property tax value to a replacement primary residence of equal or lesser value.
- We see and hear from homeowners in the San Francisco East Bay and all along the CA Coastal cities wanting to migrate out and open-up housing for those employed in the urban areas.
- 90’s local adoption can offer economic enrichment opportunities for our county in the following ways:
- Those seniors moving up will bring cash and an economic boost to our community
- They are a special niche who donate to hospitals, non-profits, schools and the arts
- Their move into the community will see an increase in spending and support our local community businesses – restaurants, local contractors, goods & services
- Typically $60,000 is spent in the first 6 mos. on home renovations.
- El Dorado County’s Economy has thrived due, in part, to Prop. 90
- 1/3 of El Dorado’s Prop. 90 buyers encouraged their children and families to move up thus filling desks in the schools.