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I think the idea of older people moving but maintaining their tax base was to encourage older people who didn’t want/need their big house anymore to move to a smaller house/condo and free up family sized houses.
This is something that already existed anywhere within and the county and to other counties with reciprocal agreements.
Whats different is you can up size to a more costly property and only pay the difference... but how many seniors up size to more costly property?
There are no reciprocal agreements. The ten or so counties that allow Prop 90 tax base transfers will take from all the counties. The difference now is that ALL counties have to take my transfer instead of just the ten.
Plenty of seniors transfer to larger places. If you search the tax records you will see plenty of tax base transfers from owners on the Peninsula that sold very expensive 1200-3000 sf homes and bought 5-6-7000 sf places in Ruby hills in Pleasanton. Mostly poor people suffered under the equal to or less requirement because they stayed in NBHD's that did not appreciate and would have to buy down considerably in a better NBHD. At least under the new laws they can move close to their children no matter where they are at in the state and can buy up as much as they can afford and still keep their tax bas on the amount they sell.
So it’s not about letting Granny downsize making larger family homes available to help address the housing crisis?
No wonder California Association of Realtors spent millions on this...
Laws are written for the rich but sold to the poor. If Prop 13 was to keep Grandma in her house then the homeowners exemption could have accomplished that instead of giving every rich landlord a subsidy. If Grandma wanted to downsize then why not have a sf requirement?
The new laws opens things up a bit but again you have to have some money to make them work. Eliminating the inherited bases is also a step in making the playing field a little more fair.
So it’s not about letting Granny downsize making larger family homes available to help address the housing crisis?
It's not a square footage issue. necessarily.
"Granny" doesn't need to downsize from her already tiny house, especially on the first move. Later, as seniors choose to buy into a continuing care community, whatever house they purchased in the interim, will become available.
It's about making houses near job locations available in high density areas like the SFBay Area and areas of SoCal available to those that need and want to buy them.
(Unfortunately, I had typed a very long, detailed response to your statement which went into more issues, but the Internet gobbled it up as I lost power and I'm not wiling to retype it all now )
It's about making houses near job locations available in high density areas like the SFBay Area and areas of SoCal available to those that need and want to buy them.
Downsize is exactly how Prop 60/90 was sold. I'm not sure why you think Granny is in a tiny house as most are in 3/1's or 3/2's that they raised 3 or 4 kids in. Shoot, I'm single for 40 years and my CA place in a 3/2. Now I can probably downsize to a 1/1 condo for close to the same price in SF. But if you look at the counties that you could move to under Prop 90 they are the locations with the jobs, Alameda LA, Monterey, San Mateo, Santa Clara, Orange, San Diego, Riverside. How did that make sense?
Now, Granny in all 58 counties can downsize within their own county. The problem was if the kids were in another county and the move was so they could help her or she could babysit for them. LOL. Now Granny can go wherever she can afford.
Last edited by GoldKona; 01-11-2021 at 10:31 PM..
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