“If opportunity doesn’t knock, build a door, but only as long as it’s not visible from the street.” Milton Berle

In April, SB 9, which had allowed for lot split for any single family residence was ruled unconstitutional by Los Angeles Superior Court Judge Curtis Kin.

WHAT HAPPENED? The lawmakers behind SB 9, claimed that it would create low income housing. By low income housing we are talking about deed-restricted housing that would be below market rate. The idea was that this would promote an increase in low cost housing in all areas of California. The cities of Redondo Beach, Whittier, Carson, Torrance and Del Mar sued in 2022. The contention was that SB9 did not meet the standard to impose such a law on charter cities. Judge Kin agreed, noting that there is no requirement to build affordable housing in SB 9. He stated that there was no proof that this would increase the supply of affordable housing “especially in economically prosperous cities”.

THE OTHER SIDE. This issue may not be forgotten. State Senator Toni Atkins, from San Diego said the Judge’s ruling was “sadly misguided” and she planned to “remedy any loopholes” in order to create new housing. In other words, this may come back as another piece of legislation, or an amendment to the current one.

CHARTER CITIES. There are over 120 Charter Cities in California, including Los Angeles San Francisco and San Jose on the larger side. Many are smaller ones like the ones who served this lawsuit- Whittier, Redondo Beach Carson, De, Mar and Torrance. If similar legislation comes up, many cities may band together to oppose it.

NIMBY. Not in my back yard. This is the premise that is often used when considering legislation like SB9. “Affordable housing is fine- but not in my city.” This will undoubtedly play out in the courts and, with our need for new housing at such a high level, who knows what the eventual outcome will be?

“Do you know what my favorite part of the game is? The opportunity to play.” Mike Singletary

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.