New Laws Affecting California Real Estate Starting in 2022

Naples Canal

Every year many new bills are signed into California law, and this year is no exception.  Not all have to do directly with real estate, but here are some of the ones that do:

AB 468 concerns emotional support animals (which are not the same as service animals).  While landlords must provide reasonable accommodation concerning emotional support animals per current federal or state law, there are now restrictions on how health providers may provide documentation, requiring specific language, in order to reduce emotional support animal fraud.  To read more about service animals vs. emotional support animals, go to Emotional Support Animal Fraud.

AB 491 Fair Housing Equal Access, a new law which states that in "mixed-income multifamily structures, all occupants must have equal access to common entrances, areas, and amenities as the occupants of market-rate housing units." (California Association of Realtors).  The purpose of this bill is to eliminate the "poor door" for certain occupants of designated affordable housing units who in some instances were not allowed to use certain entrances or common area features.

AB 938 Appraisal Discrimination: To combat this problem which has existed in some geographic areas (nationwide) , after July 1, 2022, Realtor contracts in California which also require the delivery of a Seller's Transfer Disclosure Statement (TDS), must contain specific language concerning unbiased valuation of properties which cannot be influenced by race, religion, marital status, pregnancy, and 13 other categories.

SB 392 Homeowner associations must "communicate with homeowners via email if that is the homeowner's preferred method of communication (for notices that are required to be delivered individually under the Davis-Sterling Act)." (California Association of Realtors). This is a time saver and a money saver for associations which may be spending hundreds of dollars annually on mailing costs for multi-page documents that are required by law to be sent to HOA members. The annual budget report, annual policy statements and notices regarding assessments or delinquencies, among others, are notices that must be delivered "individually," and thus, the homeowner may now require that they receive these notices via email.

SB 9 governing lot splits in otherwise single SFR zoned areas, is lengthy and should require in depth study by the interested party:

"This law requires a city or county to ministerially approve either or both of the following, (subject to exceptions and conditions):  a) A housing development of no more than two units in a single-family zone ("duplex").  b) The subdivision of a parcel zoned for residential use, into two approximately equal parcels ("lot split")." (California Association of Realtors).

Existing law governing zoning of units and/or Accessory Dwelling Units may help the end user achieve his/her housing dream, and in spite of media coverage on how SB9 will chop up neighborhoods, there are many requirements to be consulted with, so long term affect may ultimately be seen as one more tool for increasing housing, rather than a huge overwhelming impact on neighborhoods.

 Further laws concern redaction and disclosure (if known by the Realtor) of restrictive covenants AB 1466;  SB 60 governing short term rentals; Revocable transfer on death deeds (avoiding probate) SB 315;

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

Some California Real Estate Laws for 2022

Every year a plethora of new laws comes into effect, the following are some of them which should be of interest to the consumer and professional in the real estate industry:

Appraisals -      After July 1, 2022, every contract for sale of real property shall contain a notice that all appraisals shall be unbiased, objective, and not influenced by any illegal considerations, including "race, color, religion (including religious dress, grooming practices, or both), gender (including, but not limited to, pregnancy, childbirth, breastfeeding, and related conditions, and gender identity and gender expression), sexual orientation, marital status, medical condition, military or veteran status, national origin (including language use and possession of a driver’s license issued to persons unable to prove their presence in the United States is authorized under federal law), source of income, ancestry, disability (mental and physical, including, but not limited to, HIV/AIDS status, cancer diagnosis, and genetic characteristics), genetic information, or age."  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB948

 Restrictive Covenants - Per California Association of Realtors, this law requires real estate brokers or agents, who have actual knowledge of possible unlawfully restrictive covenants in a declaration, governing document or deed that is being directly delivered must notify the owner or buyer of such and the ability of the owner or buyer to have it removed through the Restrictive Covenant Modification process.  https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1466

Home Inspectors - A plumbing contractor may inspect a sewer lateral pipe connecting a residence or business to a sewer system and also offer to or perform repairs if the consumer is provided a specified disclosure before authorizing the home inspection. SB484

Duplexes and Lot Splits in Single Family Zoning - Many city and/or county rules affect this new law, but two units in a single family zone may be permitted, and subdivision into two parcels.   SB9

Emotional Support Animals - Per California Association of Realtors,  AB 468 requires a person that provides an emotional support dog to give notice to the recipient or buyer that the dog does not have the special training required to be a guide, signal or service dog; and requires a person that provides a certificate, tag, vest, leash or harness for an emotional support dog to give notice to the buyer that the material does not entitle an emotional support dog to the rights and privileges afforded to a guide, signal or service dog.  

Additionally, AB468 prohibits a health care practitioner from providing documentation relating to an individual’s need for an emotional support dog unless the health care practitioner complies with specified requirements, including: 1. Holding a valid license; 2. Establishing a client-provider relationship with the individual for at least 30 days prior to providing the documentation, and, 3. Completing a clinical evaluation of the individual regarding the need for an emotional support dog.

Revocable Transfer on Death Deed - extended to 2032.  This deed may allow avoidance of probate, and allows a homeowner to transfer to a named beneficiary 1-4 residential unit property upon the owner's death without a probate proceeding. Two witnesses are now required to sign the deed. Stock cooperatives are excluded from the types of property that may be transferred via RTODD but agricultural land with up to four residential dwelling units are now included. The user is advised to seek legal advice before utilizing this deed.  SB315

These are just some of the real estate-related laws  coming into effect, more concern updates to Proposition 19 (exemptions on property tax reassessment), penalties on property tax ,  PACE liens and seniors, fire hazard zones and home hardening update, foreclosure sales and owner occupants, delivery of notices in homeowner associations, plus more.  For more complete information on these new laws, please contact me for a separate obtaining of informational printouts.

 

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996

What is SB 9, Signed into law by Gov. Gavin Newsom on Sept. 17, 2021

A while back California passed a law allowing accessory dwelling units (ADUs) throughout the state as part of the work to alleviate a housing shortage.  There is now Senate Bill 9, the California Housing Opportunity and More Efficiency (HOME) Act, a law that will allow--disregarding neighborhood zoning--owners of single family homes to split their lots and build a duplex, effective January, 2022.

"The HOME Act facilitates the process for homeowners to build a duplex or split their current residential lot, expanding housing options for people of all incomes that will create more opportunities for homeowners to add units on their existing properties. It includes provisions to prevent the displacement of existing renters and protect historic districts, fire-prone areas and environmental quality."

Many have been concerned about the forced change to single family zoning, and potential negative results to neighborhoods.  According to The Terner Center in their July report on SB 9, "This ability to create duplexes and/or split the lot and convey new units with a distinct title would allow property owners to  pursue a wider range of financing options than are available for ADU construction to build these new homes." ....  "While Senate Bill 9 does not apply to single-family parcels in historic districts, fire hazard zones, and rural areas, local market prices and development costs play a large role in determining where there is financial viability for the addition of new homes. Moreover, physical constraints, such as small lot sizes and other local regulations, can limit the number of new homes built as a result of this bill."  Parcels most likely to benefit from this new law are those that are already "financially feasible" under existing law, and that relatively few single family parcels are expected to be financially feasible for added units as a result of this bill.  Mortgage products may be accelerated somewhat for parcels that are newly subdivided, for households able to take advantage of new homes of newly divided parcels.

As reported by The Terner Center, restrictions, which may put feasible properties statewide to about 410,000, of which about 110,000 would become newly feasible, include: 

1 Cannot be in a historic district or a historically designated property.

2 Lot split cannot be smaller than 40 percent of the original parcel.

3 A locality cannot impose any standards that would preclude the construction of up to two units or physically precluding either of the two units from being at least 800 square feet in floor area.

4 Side and rear setbacks of up to 4 feet is allowed.

5 The lot split cannot require the demolition or alteration of a housing unit currently serving moderate-, low- or very-low income household(s) or a rent-controlled unit.

6 The lot split cannot result in the demolition or alteration of housing that has been occupied by a tenant in the last three years or where an owner has used the Ellis Act to remove a rental unit from the market within the last 15 years. 

7 A jurisdiction may impose an owner-occupancy restriction for lot splits, where the applicant must intend to occupy one of the housing units as their principal residence for a minimum of one year from the date of the approval of the urban lot split.

8 No lot splits on adjacent lots. 

9 Cannot be created from a previous lot split. 

In Long Beach, the impact may be lessened because lot sizes are relatively small, which would preclude much of this from happening.  Officials say in order to make financial sense, lot sizes would have to be about 8,000 square feet.  Of the 59,803 single family lots in Long Beach, 4,609 are over 8,000 square feet.

 

For the complete report from The Terner Center, see their July 2021 report here.   

State law:  https://www.gov.ca.gov/2021/09/16/governor-newsom-signs-historic-legislation-to-boost-californias-housing-supply-and-fight-the-housing-crisis/

Julia Huntsman, REALTOR, Broker | www.juliahuntsman.com | 562-896-2609 | California Lic. #01188996